Internship Report On Askari Bank

Internship Report
Askari Bank Limited
Submitted To:
Sir Raza Ali

Submitted By:
Hasnain Manzoor
Session 2008-12 Sumission Date: 23-09-2011
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Preface
Now a day the business environment keeps on changing everywhere. New dimensions of business are coming before us. These dramatic and dynamic changes in business world require the specialties about the all aspect of business of today. ecause of these requirements business knowledge became important and business education becomes the need of time. The person with latest knowledge can survive in this vast field. ut practical knowledge is also necessary along with the theoretical knowledge. This made the internship an integral part of .!om. One can see how the theories and knowledge are being practically implemented. " completed my internship in #skari ank $imited. This report carried the information about history% organi&ational structure% departments% strengths and weaknesses etc. #skari ank $imited. "n this report " tried my level best efforts to encompass and elaborate the necessary information about the #skari ank $imited. This internship report includes a complete introduction% performance and financial analysis of the statements of the #skari ank $imited.
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*E*)+AT)%N
To My Eminent To My Eminent
MAAN JEE MAAN JEE

Who Spent Each And Every Moment of er Life Who Spent Each And Every Moment of er Life Prayin! for me And for My S"ccess Prayin! for me And for My S"ccess
Prayin! for Me Prayin! for Me To My And for My S"ccess And for My S"ccess
ABB# JEE
Who S"pported Me thro"!h A$$ My Life
T% My &riends And 'espected Teachers Who A$(ays e$ped Me )n Spare %f Life University Of Sargodha
A+,N%WLE*-EMENT
)"n the name of #llah% the most *racious% the most merciful+ ,riting an internship report appeared to be a great e-perience to me. "t added a lot to my knowledge while " was working on this report. "f " say that this report is one of my memorable e-periences in student life% then it would not be wrong.
!ompletion of internship report is not an easy task. "t requires continuous hard work and &eal. !ompletion of this report would have not been possible with out the support of all staff members at the bank% my respected teachers% my friends and my well wishers. " would like to mention that .r. Shakeel #hmad Nadeem% who is presently serving the bank as .anager Operations% has been very kind and supportive through out my stay at the branch. .y gratitude will always remain due to the #"OU for e-panding my knowledge and e-perience. This prestigious institution will has a lasting impact on my life. May A$$ah Besto( is B$essin!s %n A$$ %f #s
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E.E+#T)/E S#MMA'0
The 0epartment of !ommerce was established in '112 and offers .!om 34ons5 in '116. They are giving the best education and are offering for speciali&ation% financial management and #ccounting. #n important programmed is si- to eight weeks internship with any recogni&ed institution. " decided to take up #skari !ommercial ank $imited for my internship because it+s competing bank nowadays and gives a good training to the internees. So in order to learn more this was my choice. This report is about my internship that " have undergone at #skari ank $imited 7hang ranch from '1st 7une '111 to 'nd #ugust '111.
0uring my internship " am able to learn practical aspect of business% and get good working e-perience. On the very first day of my internship " reported to 4uman 8esource .anager 9 Operation .anager Shakee$ Ahmad Nadeem. 4e gave me small introduction of the bank and introduced me to the staff of the bank. :very internee is rotated among the bank+s departments and so was ". This rotation is done in order to have general concept regarding bank+s functions% operations and policies. "n this rotation the
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stay in department is usually a week. " have learned more about the ills and <oreign Trade department and have given below the caption of activities " was involved in during the period of si- weeks.
0uring my internship " found that #skari ank is a best bank in 7hang because most of the :-ports and "mports in 7hang are done through this bank. $ow profit rates are one of the ma=or reasons for not meeting the deposit targets. The profit rates on #skari deposit schemes are quite low when compared with other banks especially with the National Saving !enters. "n today every customers is the rational customer he knows the value of money and wants a best return on his money.
:arlier #skari !ommercial were able to attract customer due to their ancillary services like #T. !ards% !redit !ards% Online anking etc. but now all the banks are offering these services through their own network or through third party contracting% so our plus points are no more our advantages. So the only things through which #! $ can increase their deposits are profit rates% because the customers only want ma-imum profit on their investment.
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BAN,)N- )N PA,)STAN
?akistan came into being on 1/th #ugust% 1@/2A sufficient banking services were available in the areas forming ?akistan. Out of the total branches of the nearly (%;11 in the undivided "ndia% as many as about 1%;11 branches were e-isting in these areas."t was agreed between the two countries that reserve bank of "ndia shall continue to function in the ?akistan territory until (1th September 1@/6 and that "ndian notes would continue to be legal tender at ?akistan until (1th September 1@/6. Unfortunately% relationship between the two countries became most strained immediately after independenceA banking was mostly in the lands of 4indus who immediately started transferring their offices and assets into "ndia. #s a result most of the banks in ?akistan were closed down and even those which were open were not doing any effective business. The number of banking office in ?akistan came down to about '11 on (1th 7une 1@/6. ranches of some :uropean banks were also functioning in a limited manner% financing in e-port of crops% and their number was limited to about '1. "t was only the 4abib bank% which transferred its office from ombay to Barachi #ustral #sia bank was another bank% which was in e-istence in the ?akistan territory at the time of independence. 0espite of best efforts on the part of government of ?akistan% no heady way could be made on this behalf and reserve bank of "ndia was in no mood to help the new country. "mperial bank of "ndia% agent of the reserve bank of "ndia also started closing down its branches in ?akistan. to advance 8eserve bank also refused money to ?akistan to make essential payments such as salaries etc% also ?akistan+s share of 8s.2; billion in cash balance was with held by bank% causing hardships to the newly born state. "n view of these hopeless 2 University Of Sargodha
state affairs it was agreed between the two countries that reserve bank would serve as monetary authority in ?akistan only up to (1th 7une 1@/6.
anking in fact is primitive as human society% forever since man came to reali&e the importance of money as a medium of e-change% the necessity of a controlling or regulating agency or institution was naturally felt. ?erhaps it was the abylonians who developed banking system as early as '111bc. "t is evident that the temples of the abylon were used as ) anks+ because of the prevalent respect and confidence at the clergy. #t the time of independence there were >(1 offices of the scheduled banks in ?akistan% of which /62 were located in ,est ?akistan alone. #s a new country with resources it was very difficult for ?akistan to run its own banking system immediately. Therefore the e-pert committee recommended that the 8eserve ank of "ndia should continue to function in ?akistan until (1% September 1@/6% so that problems of time and demand liability% coinage currencies% e-change etc% could be settled between "ndia and ?akistan. The non .uslims started transferring their funds and accounts to "ndia. y the end of 7une 1@/6% the number of officers of scheduled banks in ?akistan declined from >(1 to ';;. There were 1@ foreign banks with the status of small branch offices that were engaged solely in e-port crop from ?akistan% while there were only two ?akistani institutions% 4abib ank% and #ustralasia ank% the customers of the banks are not ank of "ndia satisfied with the uncertain condition of banking. Similarly the 8eserve
was not in the favor of *ovt. of ?akistan. The *ovt. of ?akistan decided to establish a fullCfledge central bank. The governor general of ?akistan% DuaidCeC#&am .uhammad #li 7innah% inaugurated the state bank of ?akistan on 7uly 1% 1@/6.The first ?akistani notes was issued in October 1@/6 in the state bank of ?akistan. #fter the establishment of state bank% banking e-pansion got momentum. .ore ?akistan schedule bank continues to
be the established. The network of banking braches now covers a very large segment of national economy.
.onetary policy and banking system play an important role in the development of all economic fields of the country because necessary finances for completion of economic plans are provided by them. Therefore an organi&ed banking system and the financial institutions play an active role in this matter. The stable an organi&e banking policy is much effective to improve the level of saving and consequently the level of investment. The monitory policy is adopted and controlled by the bank but its success depends upon the cooperation of commercial banks. #vailability of the credit is a big problem for $0!s. The shortage of supply of capital can be improved better and organi&ed banking system because the banks can increasing the saving through launching the various attractive schemes in various productive sectors banks also produce credit money and through this way resources are supplied to productive sectors of the country.
,)N*S %& BAN,SE

"n ?akistan following types of banks are operating in the business circle like economics.
+%MME'+)AL BAN,S1
These banks are set up on commercial basis. Therefore% their primary ob=ective is to earn profit and ma-imi&e it is far as possible. <or this they received cash deposits from the people in different accounts. They give loans to different business enterprises and thereby create credit money. The State ank of ?akistan is the central bank of ?akistan% !ommercial anks% financial institutions and cooperative banks are the other components of the banking system.
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A-')+#LT#'AL BAN,1
These banks are providing long term and short term credit facilities to landlords and tenant farmers.
)N*#ST')AL BAN,1
These banks are medium and long term loans to industrialists to set up new industries for the e-tension of industries already in operation.
M%'T-A-E BAN,S1
These banks provide the loans to the people against their moveable and immoveable property.
E.+ AN-E BAN,S1

These banks deal in foreign e-change. They provide credit to importers and e-porters by discounting foreign bills of e-change.
SA/)N- BAN,S1
These banks are set up to induce the people to accumulate their small saving in these banks.
+ENT'AL BAN,S1
:ach country in the world has its own central bank. This bank does not deal with public directly. This means that it neither receives cash deposits from the people nor it+s give them loans. Therefore it is not a profit making institution.
istory %f %r!ani2ation1
#skari ank 3formerly #skari !ommercial ank5 was incorporated in ?akistan on October @% 1@@1% as a ?ublic $imited !ompany. "t started its operations on #pril 1% 1@@'. The bank principally deals with banking% as defined in the anking !ompanies Ordinance% 1@>'. The ank is listed on the Barachi% $ahore F "slamabad Stock :-changes. #skari ank has e-panded into a network of ''> branches% including (1 dedicated "slamic banking branches% and a wholesale bank branch in ahrain. # shared network of /%12( online #T.s covering all ma=or cities in ?akistan supports the delivery channels for customer service. #skari ank achieved planned growth in business and operations during '11@. The total assets of the ank amounted to 8s.';/ billion as at 0ecember (1% '11@% registering an increase of '( percent over 0ecember (1% '116.!ustomer deposits reached 8s.'1> billion by 0ecember (1% '11@% an increase of '( percent over 0ecember (1% '116. ?rofit after ta-ation showed an increase of 162G at 8s.1.11 billion% when compared with last year+s 8s.(6> million. The banking spread registered slight improvement over last year% despite absorbing the adverse impact on net markCup income due to increased nonperforming advances. The ank+s N?$s stood at 8s.12.2( billion as of 0ecember (1% '11@ compared to 8s.11.>@ billion at the end of previous year% an increase of ;' percent.
Askari +ommercia$ Bank Limited 3A+BL4 works as a Unit of #rmy ,elfare Trust was established for the ,elfare of #rmy Officials. The office of #rmy ,elfare Trust is situated at #,T ?la&a%
8awalpindi. #,T offers the H#,T Saving SchemeI to the army officials only. #,T has its units as underE
1. #skari #ssociates.
'. #skari $easing. (. #skari *eneral. /. ?rivate usiness. ;. Te-tile .ills. >. !ement "ndustry. 2. #skari !ommercial ank. "ncorporated in ?akistan on October 1@% 1@@1. The bank obtained business commencement certificate on <ebruary '>% 1@@' and started operations form #pril 1% 1@@'% as public limited company% and has since e-panded into a nationCwide presence of ;1 branches% supported by a network of online #T.s. The ank is listed on the Barachi% $ahore and "slamabad Stock :-changes and the initial public offering was over subscribed by 1> times. #skari !ommercial ank is scheduled !ommercial ank and is principally engaged in the business of banking as defined in the anking !ompanies Ordinance 1@>'.
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Nature Of Organization
Vision Statement:-
To be the Bank of First Choice in the Region
Mission Statement: The mission statement of the bank is

To be the leading private sector bank in Pakistan with an international presence, delivering quality services through innovative technology and effective resource management in a modern and progressive organization culture of meritocracy, maintaining high
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ethical and professional standards, while providing enhanced value to all their stakeholders, and contributing to society
&eat"res
Prod"cts 5 services of A+BL
# product #! $ includes all those services which customer normally required for effectively managing his business. #! $ offers the following financial services to its customers.
Mahana Bachat Acco"nt 'oshan M"sta67i$ *eposit *eposit M"$tip$ier Acco"nt Persona$ &inance )s$amic 7ankin! services A!ric"$t"ra$ finance so$"tion
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+orporate 5 investment 7ankin! Mort!a!e &inance *e7it8/isa +ard )nternationa$ 7ankin! services
*EMAN* *EP%S)T
!urrent #ccount !all 0eposit 8eceipt
T)ME *EP%S)T
?$S saving 0eposit #skari special 0eposit account #skari <"S0# #ccount #skari <#"0# #ccount <inance Jalue ?lus Saving 0eposit Notice 0eposit #skari #dvantage
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Term 0eposit
L%+,E'S
Small Si&e $ockers .edium Si&e $ockers $arge si&e lockers
&"nd Based Loan

8unning <inance !ash <inance Term <inance Staff <inance #skari ?ersonal <inance Trade <inance
Non9&"nd Based Loan

$etter of !redit 3$!5 $etter of *uarantee 3$*5
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)mport 'e$ated &inance

?ayment #gainst document <inance #gainst imported .erchandise <inance against Trust receipt.
E:port 'e$ated &inance

Pre-shipment Finance Post shipment <inance #gainst ?acking !redit
&#N* BASE* L%AN1
"n this type of loan% funds are directly involved.
'#NN)N- &)NAN+E1 3'8&41

"t is popularly known as overdraft. "t is offered for working capital requirement of the customer. "t is created in current account ad=ustment from time to time finally on e-piry date. This facility is normally
issued against hypothecation of immovable property. "t is allowed to the borrower under a preC sanctioned limit. # current account is opened and the conduct of this account is kept under review for a period of three to si- months. The borrower can draw cheque on his account ma-imally up to the amount of limit sanctioned to him. The amount outstanding against the borrower is markCup will be changed on the basis of the amount outstanding. This facility is issued on revolving basis repayment should be completed by the maturity date. 8epayment in monthly installments is not required.
+AS
&)NAN+E1 3+8&41
"t is also offered for the working capital requirement of the customer. "t is the type of loan in which client is given cash in lump sum it is offered against the pledge of moveable property or stock of borrower. "n ma=ority of the cases this finance is allowed against pledge of stock. The amount of finance is credited to borrowers !0 account and he9she utili&es it for business purposes. 8epayment is not made by monthly installments. #d=ustments are linked with delivery of goods kept under bank+s pledge. *oods are pledge when the payment is done on delivery order of the bank. *oods released are equivalent in value to the repayment amount and remaining goods are stills kept in pledge with bank for further recovery. *oods are released on the 0elivery Order 30O5 by the bank to the *o down Officer.
TE'M &)NAN+E1 3T8&41
Term finance is offered to client for investment in any pro=ect or business. "t is issued for fi-ed time period. The amount of finance is credited to borrower+s personal account by debiting the Term <inance #ccount. The amount of finance is credited to borrower+s personal account by debiting the Term <inance #ccount. The amount of <inance is disbursed in lump sum. ?artial transactions are not allowed in the Term <inance account. The repayment of Term <inance is usually in installments and with other documents a letter of installments is taken from the borrower at the time of disbursement. y that letter% the borrower binds him to pay the installments at regular intervals. .onthly repayment amount is calculated by dividing the principal amount by time period plus markCup.
&)NAN+E A-A)NST )MP%'TE* ME'+ AN*)SE1

This type of finance is offered to the importer to finance their needs for meeting the cost including freight% insurance% and customs and e-cise duty payable on the imported merchandise. The lending bank mostly pledges the imported goods. The merchandise is released for the use of the importer 3borrower5 upon repayment of the bank+s finance and charges either fully or partially% on production of the 0elivery Order issued by the banker in favor of the borrower.
N%N9&#N* BASE* &A+)L)T)ES1

These are those types of facilities in which funds are not directly involved.
LETTE' %& +'E*)T1
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$etter of !redit issued by the bank can broadly be classified as underE C
Sight letter of credit.
Usance letter of credit.
The sights $9!s call for the draft to be drawn )at sight+. 0ocuments negotiated and received against sight are held as security till their retirement. 0rafts drawn under Usance are for a tenure specified in the $9! and are payable by the customer on due date. !redit line proposal must clearly state the type of letter of credit the branch is intended to issue.
LETTE' %& -#A'ANTEE1

*uarantees issued by the bank can be classified under two broad categories.
3;4 &)NAN+)AL -#A'ANTEE1

ank guarantees the fulfillment of a financial commitment on behalf of the customer. Under these guarantees% the bank is called upon to pay in the event of a breach of terms on the part of the customer.
3<4 PE'&%'MAN+E -#A'ANTEE1

The bank guarantees the due fulfillment of a contract or other work as specified in the guarantee% by the customer. The amount of guarantee is usually up to the e-tent of the value of the contract.
3=4 S )PP)N- -#A'ANTEE1
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ank issues guarantee in favor of the shipping company to enable the importer to obtain delivery of the goods without production of the ill of $ading.
+ore /a$"es1
,e understand that our commitment to satisfy customers+ needs must be fulfilled within a professional and ethical framework. ,e subscribe to a culture of high ethical standards% based on the development of right attitudes. ,e believe in our Kcore valuesK as the essential and enduring tenets of our organi&ation C the very small set of guiding principles that have a profound impact on how everyone in the organi&ation thinks and acts. They have an intrinsic value for us and bear significant importance to all our employees. They are the few e-tremely powerful guiding principlesA the soul of the organi&ation C the values that guide all our actions. The intrinsic values% which are the corner stones of our corporate behavior% areE

!ommitment "ntegrity <airness TeamCwork Service
+%'P%'ATE P )L%S%P 01
) n s p i r i n ! ' e $ a t i o n s h i p s
<rom knowing our customers requirements to understanding employee needs% from utili&ing modern technology to making responsible social contributions% from enhancing stakeCholders value to practising corporate ethics.... ,e are continuously and consistently
Striving to address newer challenges with a single motivationE the po(er to inspire and 7e inspired
OBJ !TIV S:
0eliver solutions that meet customer+ financial needs. uild and sustain a high performance culture. uild trusted relationships with all stakeholders. uild and manage the anks+ portfolio of business to achieve strong and
Sustainable shareholder return. !reate and leverage strategic assets and capabilities for competitive advantage. To facilitate the bank with modern banking technique. To accelerate commercial activities and capture large market share.
)nspirin! Techno$o!ica$ )nnovation

Technology has played a pivotal role in meeting customer e-pectations% particularly with respect to speed and quality of service. ,e have fully automated transactionCprocessing '' University Of Sargodha
systems for backCoffice support. Our branch network is connected online real time and our customers have access to off site as well as on site #T.s% all over ?akistan. Our ?hone anking Service and "nternet anking <acility allows customers to en=oy routine banking services from anywhere anytime in the world.
L)ST %& T E +%MPET)T%' BAN,S

&%'E)-N BAN,S
# N #mro ank $td. #merican :-press ank $td. ank of #merica
Standard !hartered ank !hase .anhattan Overseas !orp. 0eutsche ank #* !redit #gricole "ndosue& 4abib ank #* Lurich The <rench "nternational ank #lC araka "slamic "nvestment ank :mirates ank "nternational $td. .ashreq ank The ank of Tokyo .itsubishi $td. 4ong Bong and Shanghai ank '( University Of Sargodha
Oman "nternational ank S.#.O.*.
L%+AL BAN,S8*&)s8M%*A'ABAS
#llied ank of ?akistan $td. <irst ,omen ank $td. 4abib ank $imited .uslim !ommercial ank National ank of ?akistan #skari !ommercial ank $td. ?latinum !ommercial ank $td. United ank $imited <aysal ank $td. ?rime !ommercial ank $td. Union ank $td. ankers :quity $td. olan ank $td.
?rudential !ommercial ank $td. ank #lC<alah $td.
The ank of Bhyber *ulf !ommercial ank $imited ?akistan "ndustrial !redit F "nvestment !orporation $td. !itibank 4ousing <inance !o. $td. National 0evelopment <inance !orporation "nternational 4ousing <inance $td. <irst ?rofessional .odaraba '/ University Of Sargodha
"ndustrial 0evelopment ank of ?akistan 4ouse uilding <inance !orporation "nvestment !orporation of ?akistan
?resident and !hief :-ecutive ORGANIZATIONAL STRUCTURE %r!ani2ationa$

!orp. anking +hart F <in. "nst. *roup
B%A'* %& *)'E+T%'S
Operating and credit group
8egions
8etail anking *roup
!redit !ards
"nternational
!redit
:-ecutive !ommittee 8awalpin di9"slama bad North
"nternal #udit
#sset ?roducts
?lanning and !orporate affairs 4uman 8esource
Treasury
:lectronic Technology
"nvestment products
!orporate and .erchant anking
Systems and Operations

0ata 8eporting
$ahore
<inance
:ast
$egal #ffairs
South " '; University Of"" Sargodha South ,est
A Typical Branch Hierarchy *eneral .anager9 8egional .anager
"nternal #uditor
ranch .anager or !hief .anager
ranch !redit !ommittee
!ash90eposit 0epartment
#ccount opening 0epartment
.arketing 0epartment
#ccounts 0epartment
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<oreign :-change 0epartment
ills9 8emittance 0epartment
!redit 0epartment
!ustomers Services 0epartment
Emp$oyees in Branch1
Name
1. Mr>Sana#LLA -i$$ '. Mr> Shakee$ Ahmad Nadeem (. Miss Asia Batoo$ /. Mr> 'ao M"@ahid ;. Mr. M. Imran >. Miss -h"$am 'a7ia 2. Mr> aris ,h"rsheed
*esi!nation
Branch Mana!er Branch %perations Mana!er %>-? %> -?
O. G
%> -?? %> -?? %> -??? %> -??? %> -??? +ashier +ashier +ontract +ontract Peon Peon S(eeper
6. Mr> Aamar &ia2 @. Mr> Jahan2e7 A2aad 11. Mr> Shaf6at "ssain
11. Mr> Mohsin )67a$ 1'. Mr> Umer Farooq 1(. Mr> M"hammad Ta66i 1/. Mr> A2har "ssain
1;. Mr> Syed Naveed Shah 1>. Mr>M>Akram 12. Mr> )@a2 Hussain 16. Mr> -ha2anfar "ssain
*river Sec"rity -"ard -"ard UniversitySec"rity Of Sargodha Sec"rity -"ard Sec"rity -"ard '6
1@. Mr> -h"$am &areed '1. Mr> Rab Nawaz <;>M>Ashraf <<>A7d"$ 'ehman
Branches in Pakistan
'AWALP)N*)8)S* 'E-)%N
B$"e Area Branch '/C0% 8asheed ?la&a% 7innah #venue% lue #rea% ?.O. o- 1/@@% "slamabad. &9;B Branch lock ;C!% <C11 .arka&% "slamabad AWT P$a2a Branch #,T ?la&a% The .all% 8awalpindi. - A B'AN+ Near *4D *ate No. 2%
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8awalpindi.
Pesha(ar 'oad Branch Lahoor ?la&a% ?eshawar 8oad% 8awalpindi. 'a@a Ba2ar Branch "qbal 8oad% 8a=a a&ar% 8awalpindi +hak$a$a Scheme ))) Branch 16C!ommercial #rea% "mran Bhan #venue% !haklala Scheme """% 8awalpindi. yder 'oad 'a(a$pindi Branch 4yder 8oad Sadar 8awalpindi Sate$$ite To(n 'a(a$pindi (1(CT !ommercial .arket% ;th 8oad Satellite Town% 8awalpindi
N%'T
'E-)%N
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Pesha(ar +antt Branch
?la&a ranch% (C2% <akhrCeC#lam 8oad% ?eshawar !antt. +ho(k 0ad!ar Branch !howk Madgar% ?eshawar !ity. A77otta7ad Branch $ala 8ukh ?la&a% .ansehra 8oad% #bbottabad. Mardan Branch The .all% .ardan. Mirp"r Branch 4anfi uilding ranch%1'1 !91% Sector !C'% !howk Shaheedan% .irpur.
LA %'E 'E-)%N
Badami Ba!h Branch 1>;C % adami agh% $ahore T"fai$ 'oad Branch 1'CTufail 8oad% $ahore !antt. +irc"$ar 'oad Branch 22C!ircular 8oad% $ahore
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-"$7er! Branch 11C:911% .ain oulevard *ulbergC"""% $ahore. Lahore Main Branch ShahrahCeC#iwanCeCTi=arat% $ahore.
L++ S Branch $.!.!.4.S Society Office Sector M% !ommercial #rea% ?haseC"""% $ahore !antt. The Ma$$ Branch The .all% $ahore
EAST 'E-)%N
Baha(a$p"r Branch 1CNoor .ahal 8oad% ahawalpur. &aisa$a7ad Main Branch University 8oad% <aisalabad -"@ran(a$a Branch Trust ?la&a% *.T. 8oad% *u=ranwala.
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M"$tan Branch #bdali 8oad% .ultan. 'ahimyar ,han Branch #shraf !omple-% .odel Town% 8ahimyar Bhan. Phoo$na!ar Branch $ahoreC.ultan 8oad% 0istt. Basur% Sahi(a$ Branch /69 F 1% 4igh Street ranch% Sahiwal. Sar!odha Branch 61C!lub 8oad% Old !ivil $ines Sargodha. Jhan! Branch !hurch 8oad 7hang Sadar
Sia$kot Branch ?aris 8oad% Sialkot.
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-"@rat Branch 4assan ?la&a 3Opposite ?ak <an .osque5% *T 8oad% *u=rat. Peop$es +o$ony Branch ?eoples !olony% <aisalabad.
S%#T 'E-)%N9)
+$oth Market Branch $a-midas Street% Barachi
-"$istan9e9Ja"har Branch #sia ?acific Trade !entre% 8ashid .inhas 8oad% Barachi. Jodia Ba2ar Branch Da&i Usman 8oad% Near $al .as=id% ?.O o-E >6(1% Barachi. Saima Trade To(er Branch ".". !hundrigar 8oad% Barachi.
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-a(adar Branch #irport 8oad% ?ostal !ode @1'11% *awadar. ydri Branch ,arachi S< 1/916 #lburhan #rcade% lock : arkatCeC4ydri% North Na&imabad Barachi 2/211
S"kk"r Branch Sarafa a&ar% Sukkur

S%#T 'E-)%N9))
+$ifton Branch .arine Trade !entre% lockC@% Barachi. *efense Branch 7ami !ommercial Street No.11% Off BhayabanCeC"ttehad% ?haseCJ""% 0efence 4ousing #uthority% Barachi. Sharah9e9&aisa$ Branch 11C#% ?rogressive Square% lockC>% ?.:.!.4.S% ?.O. o-E 1'>@>% Barachi.
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Bahad"ra7ad Branch Leenat Terrace% '>;C lock (% ahaduryar 7ang Society% ahadurabad% Barachi. *ar9"$9Aman Branch 0arCulC#man% 4ousing Society% /2C#% lock No. 2F 6% ShahrahCeC<aisal% Barachi. ydera7ad Branch (('C(((% Saddar a&ar A"etta +antt Branch !hilton 8oad% olan !omple-% Duetta !antt. A"etta Main Branch ..# 7innah 8oad% Duetta. +haman Branch Trunk 8oad% Off .all 8oad% !haman.
+orporate )nformation
Lt> -en> )mtia2
"ssain 3 )M4
Lt> -en> 3'4 Carrar A2im

!hairman :-ecutive !ommittee
Mr> Shaharyar Ahmad

?resident F !hief :-ecutive
Bri! 3'4 M"hammad Shira2 Bai!

!ompany Secretary
Bri! 3'4 Asmat #$$ah ,han Nia2i

0irector
Bri! 3'4 M"hammad Bashir Ba2

0irector
Bri! 3'4 Sha"kat Mahmood +ha"dhari

0irector
Mr> Cafar A$am ,han S"m7

0irector
Mr> ,ashif Mateen Ansari

0irector
Mr> M"hammad Na@am A$i

0irector
Mr> M"hammad Af2a$ M"nif

0irector
Mr> Tari6 $67a$ ,han *irector

0irector
Mr> A>J>M"77ashar
0irector 3N"T Nominee5 0irector
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#udit +ommittee
*r> Cia"ddin Ahmad 8oad% Barachi rig 385 .uhammad Shira& aig .ember .r. Bashif .ateen #nsari .ember
A"ditors
A>&>&er!"son 5 +o> !hartered #ccountants

Le!a$ Advisors
'i2viD )saD Afridi 5 An!e$$

8egistrar F Share Transfer
.9s T4B #ssociates 3?rivate5 $imited% *round <loor% State $ife uilding N (% Bri! 3'4 Asmat #$$ah ,han Nia2i !hairman
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Introduction Of All Departments

*epartments %f Askari +ommerica$ Bank
#ccounts 0epartment !ash 0epartment !learing 0epartment !redit 0epartment
A++%#NT %PEN)N*E&)N)T)%N %& BAN,E'S1

#s defined in section (3b5 of negotiable instrument act 1661% )IbankersI means the person transacting the business of accepting for the purpose of lending on investment of deposits of money from the public% repayable on demand or otherwise% and withdraw able by cheque% draft% or otherwise% and include the post office savings the bank.
*E&)NAT)%N %& T E +#ST%ME'1

# customer is the person who maintains a regular bank accounts without taking in to consideration the duration and frequency of operation of his accounts it means that the person becomes a customer of the bank as soon as he open his accounts deposit money in the same and the bank accepts the said deposit.
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A#AL)&)+AT)%N %& +#ST%ME'1

4e should not be a minor because a minor is not competent to contrect.according to section 3(5 of the ma=ority act 162; a person is deemed to have attained the age of ma=ority when he has completed the age of 3165 years. 4e should be a person of sound mind Section 31'5 of the contract act says that Hthe person is said to be of sound mind for entering into contract if at the time when he makes it he is capable of understanding it and of forming a rational =udgment as to its effects upon his interest. 4e should have not been debarred from entering in to any contract under the law. There is an offer by the customer and acceptance by the banker. The customer offer the money to deposit and banker offers to accept it.
')- TS %& A +#ST%ME'1

# customer has the following universally accepted rights. To draw cheques against his credit balance in the account. To receive pass book or statement of his account. To sue the bank for the cost% loss and damages% when his cheque is wrongfully dishonored by the banker. To sue when the banker has not maintained the secrecy of his account% e-cept when it is done under compulsion of law in the interest of the bank or as the duty to public.
*#T)ES %& T E +#ST%ME'1

Section 32'5 of negotiable instrument act 1661 lies down that the customer must present the cheques for payment and collection with in the business hours of the bank. /' University Of Sargodha
To keep his cheque book under lock and key To draw the cheques very carefully so that there is no room for any fraudulent additions or alterations. To see that the cheque issued by him presented to the bank for payment with in a reasonable time.
%PEN)N- %& A++%#NT

The banking history is replete with various instances of fraud largely due to incorrect opening of accounts. These fraud could have been avoided in if the branch managers and other designated officers had taken due care and e-ercised required precautions at the time of opening of accounts. #t the time of opening of accounts% officers should tactfully obtain as much information as possible about the integrate and character of the person% his correct name% address and occupation. This infect will be the only opportunity when they will be able to talk to the prospective customers in a friendly and frank atmosphere. This is the time when they have a slight edge over the customer. 4e or she at this point of time is willing to divulge as much information about his personal status and business etc to the bank manager. "t is therefore necessary that due care and proper procedure be followed for opening different types of accounts for various types of customers. #skari commercial bank limited has the following classifications of accounts% "N0"J"0U#$S #!!OUNTS ?#8TN:8S4"? <"8. #!!OUNTS 7O"NT STO!B !O.?#NM #!!OUNTS #*:N!M #!!OUNTS /( University Of Sargodha
!$U S% SO!":T":S F #SSO!"#T"ONS #!!OUNTS :O:!UTO8S #N0 #0."N"ST8#TO8S #!!OUNTS T8USTS $O!#$ O0":S :T!. ?8O?:8"TO8S4"? 7O"NT #!!OUNTS OT4:8 ."S! #!!OUNTS
,hen a customer opens an account under the law he enters into a contractual relationship with the bank. #t the time of opening the account% intended customer must have the following characteristicsE # 4e must have reached the age of ma=ority "n term of section ( of the "ndian ma=ority act 162; 3as adopted in ?akistan5 a person is a ma=or if he attain the age of 16 years. 4owever% the age of ma=ority shall be '1 years in case of :uropean nationals and also where guardian is appointed under the guardians and wards act. # person who is under the age specified herein above is considered a minor. "n term of section 11 of the contract act% a minor is declared incompetent to enter into a contract. #s such% any contract with a minor is a void. 4owever% the banks generally allow the minor to open accounts with a view to inculcate in them the habits of saving. Such account is opened =ointly with their guardian and is allowed to be operated by the guardian. The guardian for the purpose will sign the account opening from and the specimen signature card. # person is said to be of sane or sound mind it he understands the terms and the // University Of Sargodha
conditions of the contract and is capable enough to form rational =udgment as the
effects of the contract upon his interest. 4e must not be insolvent and bankrupt. #t the time of opening the account% he should not be ad=udicated as insolvent. *enerally a person is considered as insolvent if his liabilities e-ceed the assets he is possessing. 4e must not be debarred under any law from entering into any contract. "t is the duty of the banker to make sure that all above criteria is satisfied before he allows the opening of the account. <or general guidance of the officers% given below are the essential points that must not escape their attention while opening the accounts.
W % *EAL W)T
%PEN)N- %& A++%#NT1
#s for as possible the account opening =ob should be handled by the branch manager himself. Only in e-ceptional cases in main branches% the =ob may be assigned to other officers.
)N&%'MAT)%N1
#s much relevant information as possible must be elicited from the prospective customer relating to his means% line and place of business etc.
&%'MS T% BE &)LLE* )N +A'E&#LL01

:ach and every column of the account opening form should be neatly and correctly filled in with necessary details.
)NT'%*#+T)%N %& A++%#NT1

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#ccount must be properly introduced. "n this concern% the following precautions are to be observed. " #s for as possible% the person introducing the account should attend
the personally with the prospective customer. This would serve the dual purpose. # branch manager shall have the opportunity of eliciting vital information The identity of the customer must be properly established beyond any doubt. "ntroducing from person having doubtful dealing with the bank should be discretely declined. The staff member generally should not introduce the account. They will introduce accounts only for those persons who are personally known to them and whose credentials are absolutely clean. #s for possible% the account opening form should be completed by the prospective customer in presence of the introducer who is then aware of the particulars furnished and can corroborate the same. Specific information concerning the profession should be recorded in the account opening form. The description private Service+ or ) usinessman+ is insufficient. Signature on the account opening form must be put by the customer will attest them properly in presence of introducer. No cheque book should be issued to the new accounts are properly introduced. #ccount may be opened with cash or cheque. "nitial deposits% it is incumbent upothe
as to the standing% respectability and the means of the person he is introducing.
ranch .anager to satisfy themselves additionally that title of account holder is genuine for the cheque deposited. ?rudent bankers avoid opening new accounts with /> University Of Sargodha
!heque. $etter of thanks should be sent to the introducer the day the account is opened. This precaution would accomplish the purpose of intimating the introducer that the account has been opened on strength of his introduction thereby inviting disclaimer if untrue. # letter of thanks should be sent to the new account holder% preferably through registered mail% to verify his address. "n the evening% the officer of the branch should visit the customer+s area to establish that the address given by the customer is correct and the commands respect and honor in the neighborhoods9vicinity he is living. Number of the customer+s national identity card should be correctly recorded in the account opening form and copy of it should be kept on record. No account should be opened in the name of an undercharged insolvent.
T0PES %& A++%#NTS

$et us now turn to procedure to be followed in case of each type of accounts.
)N*)/)*#AL A++%#NTS1
Such account may be classified as followsE #ccounts of literate ladies and gentlemen. #ccounts of parade observing ladies. 7oints accounts. .inor accounts. ;> "n order to open the account for literate people an account opening form% signature card% form H#I% and an "0 copy are required with 8s. ';11 for opening account and he must fulfil all customer characteristics.
<> "n case of illiterate ladies and gents% the following precautions are observed in addition to those provided in the above guideline. /2 University Of Sargodha
a4 Two photographs are to be obtained one to be pasted on account opening form and the other specimen signature card. 74 "nstead of signature left hand thumbs impression to be obtained on the specimen signature card from gents and right hand thumb impression from the ladies. c4 :ach time such customers should attend the bank personally and will put their thumb impressions on the cheque before the passing officer. d4 Such customers should be advised not to issue cheque payable to third parties. e4 !heque should be marked payment in person to ensure even if the cheque is presented through clearing that particular cheque can only be paid in person => ,hen account is opened by more than one person but the relationship between them is neither of trustees nor partners it would be termed as =oint account. ,henever such accounts are openCend% definite instruction regarding operations on the account and payments of balance in cased of death of any one of them should be obtained. E> # person who is under the age as specified above is considered as minor% a minor is declared incompetent to enter into a contract. 4owever% the banks generally allow the minor to open accounts with a view to the condition of saving habits. Such account is opened =ointly with their guardian and is allowed to operate by the guardian>
A++%#NTS %& PA'TNE'S )P &)'MS1

,hile opening accounts of the partnership firms% the partnership deed from registered firms is required obtained in the addition to account opening form and specimen signature card. The partnership letter is attached with the #ccounts opening form% which must also be signed by all the partners of the firms whether registered or unregistered. /6 University Of Sargodha
"n these accounts% the following points should be remembered. ;> #ll the partners must sign the account opening form. <> The names of persons authorised to operate the account must be neatly and correctly given in the account opening form. => <or partnership concerns carrying on the business under impersonal name it is generally described that the title of accounts should show name of the partners or managing partner. E> # cheque payable to the firm should not be accepted for credit to personal accounts of the partners without the written authority of all the partners. F> The ma-imum numbers of partners in general business '1 and the minimum is ' for the banking firms the ma-imum numbers of the partners is 11 in ?akistan however bank can not be opened by the partnership concern. G> Since these are the business concern they will be allowed to open current accounts. No saving s bank accounts be opened in partnership name. ?artnership account opening required following documentsE ;4 #ccount opening form 3#.O.?5 <4 #.O.? should be duly introduced =4 !opy of N.".! Of all partners E4 8egistration certificate 3optional5 F4 ?artnership deed G4 8ubberCstamp on letterhead of the firm H4 $etter 4ead I4 Official capacity 3"t means that all the partners will sign and choose the singe for operation of account with the bank. #nd in account opening form the name of the Official capacity is written in special instruction and recommended by all the partners5.
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A++%#NTS J%)NT ST%+, +%MPAN)ES1

7oint stock companies include ?rivate limited companies and ?ublic limited companies
"RIV#T
$IMIT % !OM"#&I S:
?rivate limited companies are those where the share capital is not
offered to the general public instead the offer is restricted to particular class of society or with in the family members. *enerally their share is not transferable. The minimum number of Shareholder is ' and ma-imum% is ;1 private limited company are not listed on stock e-changes and therefore their shares are not publicly quoted.
P#BL)+ L)M)TE* +%MPAN)ES1

"n this case% the promoters and general public contribute share capital. #ny ?akistani who is authorised to enter into contract can purchase share. Shares of these companies are transferable and brought and sold freely in stock e-changes. The minimum number of shareholder is 11 whereas there is no upper limit. The following documents are required for =oint stock company+s account opening. a4 !opy of resolution ,hile opening the company+s account% the manager must ensure that board of directors of the company is properly constituted and request for opening the account comes through resolution of the board of directors. The resolution for account opening should bear company seal and signed by the chairman of the meeting where Such resolution is passed and counterCsigned by the company+s secretary or authorised director must be submitted to the bank before an account can be opened. 74 #.O.<. duly signed. ;1 University Of Sargodha
c4 .emorandum of #ssociation F #rticles of #ssociation. d4 !ertificate of "ncorporation. e4 !ertificate of !ommencement of companies. f4 National identity cards of directors. !4 $ist of director with their shareholding. h4 Specimen signature card duly signed usiness 3only required for public limited
A+%#NT %& P'%P')ET%'1

;> #.O.< should be duly introduced <> !opy of N.".! of proprietor => Specimen signature card duly signed E> ?roprietorship declaration concerns on firm+s letterhead+s
A++%#NTS %& +L#BSD S%+)ET)ES AN* ASS%+)AT)%N1

!lubs% societies and associations are nonCprofit and nonCtrading in nature. They have their own rules and regulations and committees mention their affairs% which is called *overning odies. 0ocuments that are required areE i4 ii4 iii4 iv4 v4 #ccount opening form Specimen signature card 8esolution to be passed by their governing bodies !ertified copy of rules and regulations or yeClaw $etter of registration
$etter of undertaking to the effect that as and when change take place they will inform the bank of such changes.
*EP%S)TS1
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0eposit is the lifeblood of a commercial bank. .ain function of a commercial bank is to enhance the savings from the savers to the ultimate user of funds. The process of collecting savings is called 0eposit .obili&ation.
&%'MS %& *EP%S)TS1

Two broad forms of deposits with reference to time period areE
A4 *emand deposit1
on demand deposits.
These are payable on demand. They include current
account% sundry deposit 3e.g. margin account5 and deposit receipt. No profit is given
i4 ii5
+#''ENT A++%#NT1
This type of account is usually opened for businessman or such persons who needs deposits and withdrawals facility without any restriction. "ntroduction is necessary when opening a current account% the procedure has already been e-plained else were in this book and account number is allotted and for withdrawals cheque book is issued and a statement of account is provided so that customer can reconcile his account with his own record. No interest return is paid on such account is ?akistanA This account can be
opened with 8s. ;11. anks usually recover service9incidental charges on current account if the required minimum balance is not maintained. Or when the maintenance of the account becomes e-penses e.g. <or e-ample too many transactions take place on summing a large number of chequebooks and other stationary not consistent with the average balance.
ii4 +ALL *EP%S)T 'E+E)PT1

"t is a contract for a specific deposit transaction and is used as a security for bidding etc. "t is nonCtransferable and is payable only to beneficiary or purchaser.
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iii4 S#N*'0 *EP%S)T 9MA'-)N A++%#NTD

#t the time of issuance of $* 9 $! or acceptance the party is supposed to deposit is kept in an account called sundry deposit. .argin account Similarly% at the time of allotment of locker the locker holder is supposed to deposit a certain sum as security% which is kept in sundry deposit account.
#ccount codes are as followsE +"rrent A8c Savin! A8c BBA A8c AS*A /a$"e P$"s &+0 B;B;B B;;BB B;B<; B;;GF B;B=< B<;=
E:amp$e A++%#NT NU. :8E 116@C11C1>;C1111C( 116@ 11 1>; P P P ranch !ode !urrency !ode #sda #ccount
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1111
#ccount Number of the #sda #ccount 4older
There are three modes of posting in ledger balance
M%*ES %& P%ST)N Cash Clearing Transfer
!he'ue Book Issuan(e

!heque book is issued for only% current account ?$S account and #S0#% <"S0# and <#"0# accounts. "t is not issued for ?$S Term 0eposit and value plus Saving #ccounts% because in these accounts% amount cannot be withdrawn within a fi-ed time period.
Proced"re or +he6"e Book )ss"e1 1. Signatures on cheque book requisition are verified by matching with the Signatures on the SS card scanned into the computer. '. The title of account and date of chequebook issuance is mentioned on the chequebook requisition and the account opening officer signs the requisition ;/ University Of Sargodha
leaf. (. The ne-t chequebook number that was previously entered in the register is allotted to the account holder. /. The title of the account is entered in the chequebook issuance register. ;. The chequebook of that number is taken out and filled in with the title of account% account number% etc and signed by the officer. >. :ach leaf of chequebook is stamped with account number stamp. 2. !heque book charges are deducted from the account according to the leaves of the cheque books 38s.>9C for each leaf.5 6. To deduct the chequebook charges% the debit voucher should be filled with that amount and should be handed over to the account holder.
+ate!ories of +he6"e Books

;> Ten Leaves1 "t is used for value ?lus% ?$S account and <#0"# account. <> T(enty9five Leaves1 "t can also be used for current deposit% value plus% ?$S and <#0"# accounts.
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=> &ifty Leaves1 "t is used for current deposit and #S0# account. E> "ndred Leaves1
"t can also be used for current deposit% value plus% ?$S and <#0"# accounts.
R MITT#&!
% "#RTM &T
The need of remittance is commonly felt is commercial life particularly and in everyday life generally. The main function of the remittance department is to transmit money from one place to another. y providing this service to the customer% bank earns a lot of income. #lso customer is able to meet its day to day financial requirements.
*emand *raft
"t is an instrument payable on demand for which value has been received% issued by the branch of the bank drawn i.e. payable at some other place 3branch5 of the same ;> University Of Sargodha
bank. "f two banks are involved then the 00 is sent to other bank but in other case it is handed over to the applicant. Issuance Procedure:
# demand draft application is given to the customerA he fills in relevant information and signs it. The officer checks the information form. The bank charges such as commission% e-cise duty is charged as per effective schedule of charges. "f he fills the ta- e-emption form% ta- is not charged. "n case of cash deposit% the cashier counts the amount and signs the 00 application and enters it in the register.
Then the officer of remittance department signs it and operation manager counter signs it. The entry is made in the 00 issuing register% 00 is given to the customer. Jouchers are prepared and posted. 00 advises are printed and mailed to the respective branch. Payment Procedure: ;2 University Of Sargodha
00 is received by the bank. The 00 credit advice is received through mail. The numbers are checked and signatures are verified. #n entry is made on the 00 payable register and the vouchers are made. 00 credit is attached with the vouchers and given for posting to the computer.
,hen 00 is received the test numbers are checked and the payment is made. Jouchers are given for posting and the entry that was made in the register is closed i.e. 00 payable is Nil.
Te$e!raphic Transfer 3TT4

"t is the quickest way of transfer of funds from one place 3 ranch5 to other place 3 ranch5 of the same bank. *enerally% a mail transfer advice reaches the drawer branch the ne-t day through courier services. ut sometimes% a customer demands that his funds should be transferred through the quickest means. "n such cases% transfer of funds message is passed through telephone or telegram. This mode of transfer was used before online. Online system is very effective for this purpose nowCaCdays. "n #skari !ommercial ank online system is used.
;6 University Of Sargodha
Issuance Procedure: The request of issuing TT is taken on the standard printed form. The customer fills the form properly and signs it. The 4ead of 8emittance 0epartment checks it% the charges such as commission% ta- and tele- as per effective schedule and signs it. "f he fills the ta- e-emption form then no ta- is deducted. Then a TT is made on white slip. There are ( copies% the original one is fa-ed to the ranch% one to the 4ead Office and one is kept for record. The entry is made in the TT issuing register. ,hen commission bill is received% it is attached to the TT office copy in the file.
Payment Procedure: ,hen a TT arrives% the test numbers are checked and the signatures are verified. The entry is made in the TT payable register. "f there is no account then the TT received needs revenue stamp and then payment is made. TT receipt is strictly nonCnegotiable.
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Pay %rder
"t is an instrument issued for payment in same city. ?ay order issued from on e branch can only be payable from the same branch. "t is normally referred to as banker+s cheque. "t is also called confirmed cheque% because bank issues this on it own guarantee. Issuance Procedure: The standard form is given to the customer. 4e fills in the details and signs it. The concerned officer checks the form. ank charges 3or commission5 as per the schedule of charges and the withholding ta- of 1.(G are applied. The cash amount of the pay order is received. # cash memo is signed% stamped and handed over to the applicant as a receipt. Then the pay order receipt is filled accordingly. !ounter foil is also filled. #n entry is made in the pay order issue register. Then the authori&ed officer signs it after checking the pay order.
The order is then handed over to the applicant after obtaining his signature on the ?O <orm.
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# voucher is also made and posted at the computer. Payment Procedure: On presentation of the pay order receipt% two authori&ed officers of the branch sign the receipt. ?O entry is made in the ?O issue register. Then the amount is credited to the account of the customer or pain in cash. ?O is posted at the computer.
Pay S$ip
"t is an instrument issued by the bank for the settlement of its own payment. "t is used for payment by the bank to anyone 3may be employees5 in this case only one bank is involved. 4e is the issuer as well as the payer. No Excise Duty No Commission
Issuance: # credit voucher is sent from the account department to the remittance department. ?ay Slip book is taken out and filled according to the credit voucher. "t is entered in the pay slip register. "t is signed by authori&ed Officer. # voucher is prepared and posted. ?ay Slip is then handed over to the customer. >1 University Of Sargodha
Payment Procedure: ?ay Slip is =ust like a cheque and bank is liable to pay against pay slip. #fter that when the pay slip is received by the bank for payment% it is again transferred in the register. Then payment is made and it is posted in the computer.
%"t(ard Bi$$s for +o$$ection

The bills% which are received by the bank and sent to other cities 3branches5 for the local clearing in that city% are called Outward Bills for Collection. Proced"re1 The cheques that are of other cities are separated. They are entered in the O ! 8egister and O ! numbers are given to them. The O ! forwarding schedules are prepared for different branches. The respective cheques are attached with the schedule. The office copy is filled and original schedule is mailed. On clearing% the respective banks send back the O !s along with the " !# 3"nter ranch !redit #dvice5.
The O ! numbers are checked from the O ! register% after that entries are made. !ommission charges are deducted from the account.
)n(ard Bi$$s for +o$$ection
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The bills% which are received by the bank from other branches out of the city for local clearing% are called "nward ills for !ollection. Procedure: The O ! of other branches will be the " ! of this branch. So an O ! forwarding schedule is received by mail. The cheques are entered in the " ! register. The " ! numbers are allotted to them. The cheques are lodged for clearing. #fter reali&ation% an " !# is prepared and mailed to the branch from where the cheque was received. #t the end of the day% two vouchers are prepared and posted.
!$ #RI&)
Meanin of clearin : The word clearing has been derived from the word H!learI and is defined as Ha system by which banks e-change cheques and other negotiable instruments draw on each >( University Of Sargodha
other within a specified area and thereby secure payment for their client through the clearing house at specified timeI in an efficient way. Ad!anta es of Clearin : 1. Since clearing does not involve any cash etc and all the transaction take place through book entries% the number of transactions can be unlimited. '. No cash is needed as such the risks of robbery% embe&&lements and pilferage are totally eliminated. (. #s ma=or payments are made through clearing% the banks can manage cash payment at the counters with a minimum amount of cash in vaults. /. # lot of time% cost and labour are saved. ;. Since it provides an e-tra service to the customers of banks without any service charger or costs% more and more people are inclined and attracted towards banking.
Clearin House: "t is a place where representatives of all scheduled banks sit together and interchange their claims against each other with the help of controlling staff of State ank of ?akistan and where there is no branch of State ank of ?akistan the designated branch of National ?akistan. >/ University Of Sargodha ank of ?akistan acts as controlling member instead of State ank of
"or#in of clearin house: #ll the bank which are the member of clearing house maintain accounts with State ank of ?akistan by debit and credit to which the clearing settlements are made. "f on a particular day% a bank delivers cheques and other negotiable instruments worth more than the total amount of !heque received by it that banks accounts with State ank of ?akistan will be credited with the differential amount. "f on the other hand the total amount of cheques and other negotiable instruments draw on a certain bank by other bank is more than the total amount receivable by it from other banks% then this bank+s account will be debited on that day. The cheque delivered to the representatives of other banks for clearing are called outward clearing% whereas cheques received from the representatives of other banks for payment are called inward clearing. Procedure of $ettlement: ?resume that #! $ got the cheques which are drawn on 4 $% N ? and .! for amounts 8s. ;1%1119C% 8s. 1;%1119C respectively% its total being amounts 8s.@;%1119C% it means that this amount is to be credited to #! $ #9! with S. .?. on the other hand the cheques drawn on #! $ are from 4 $% N ? and .! of 8s.1;%1119C% 8s.2;%1119C and 8s.(1%1119C respectively% its total being 8s.1%'1%1119C% it means that this amount is to be debited from #! $ account. The difference between 8s.@;%1119C credit and debit
8s.1%'1%1119C debit is 8s.';%1119C debit which means the house is against #! $ for 8s.';%1119C. "f we separately show it them. 1. #! $ has t receive 8s.;1% 1119C from 4 $ and to pay 8s.1;% 1119C to 4 $ so difference is 8s.(;% 1119C credit. >; University Of Sargodha
'. #! $ has to receive 8s.(1% 1119C from N ? and to pay 8s.2;% 1119C to N ? so difference is 8s./;% 1119C debit. (. #! $ has to receive from .! 8s.1;% 1119C and to pay 8s.(1% 1119C to .! so difference is 8s.1;% 1119C debit.
-'AN* T%TAL1 (;111C/;111C1;111 P C';111 i.e. 8s.';111 debit. 4ence #! $ #9! with State ank of ?akistan will be debited with 8s.';% 1119C and the contra will be other banks accounts respectively. This called as H0ebit and !redit 8uleI.
%"t(ard +$earin! At The Branch

The following points are to be taken into consideration while an instrument is accepted at the counter to be presented in outward clearingE 1. The name of the branch appears on its face where it is drawn on
"t should not be stale or post dated or without date '. #mount in words and figures does not differ (. Signature of the drawer appears on the face of instrument /. "nstruments is not mutilated ;. There should be no material alteration if so% it should be properly authenticated >. "f order instrument% suitably endorsed and last endorsee+s account being credited >> University Of Sargodha
2. :ndorsement is in accordance with the crossings if any 6. The amount of the instrument is same as mentioned on the payingCinCslip and counterfoil @. The title of account on the payingCinCslip is that of payee or endorsee 3with the e-ception of bearer cheque5. "f an instrument is in order then out bank+s special crossing stamp is affi-ed across the face of the instrument. !learing stamps is affi-ed on the face of the instruments% payingCinCslip and counterfoil 3The stamp is affi-ed in such a manner that half appears on payingCinCslip and half on counterfoil5. The instrument is suitably discharged% where a bearer cheque does not required any discharge and also an instrument in favour of a bank need not be discharged. The instrument along with payingCinCslip is retained while the counterfoil is given to the customer duly signed. Then the following steps are to be takenEC 1. The particulars of the instruments and the and the payCinCslip or credit vouchers are entered in the Outward !learing 8egister. '. Serial number is given to each voucher (. The register is balanced% the credit voucher are separated form the instrument and are released to respective departments against instrument and are released to respective departments against acknowledgement in the register /. The schedules are arranged bankCwise
;. The schedules are prepared in triplicate% two copies of which are attached with the relevant instrument and the third is kept as office copy >. The house page is prepared from schedules in triplicate 2. The schedules and house pages are signed by the officer incharge with branch stamp
>2 University Of Sargodha
6. The grand total of the house page is taken and agreed with that of the outward clearing register @. The instruments along with duplicate and house page are sent to the .ain Office
)n(ard +$earin! %f The Branch

1. The particulars of the instruments are compared with the list '. The instruments are detached and sort out department wise (. The entry is made in the "nward !learing 8egister 3serial number% instrument number% account number% amount of the instrument is written5. /. The instruments are sent to the respective departments against acknowledgement in the "nward !learing 8egister. ;. The instruments are scrutini&ed in each respect before honoring the same.
&%'E)-N E.+ AN-E *EPA'TMENT

<oreign :-change 0epartment works like the general bank departments with the difference that it deals in foreign currency. This department deals with the followingEC "mport >6 University Of Sargodha
:-port <oreign !urrency #ccounts <oreign 8emittance Submission of .onthly 8eports to S ?
)MP%'T
The international trade transaction% in which one country buys goods from other country% is called import. The import trade in ?akistan is governed by import and e-port #ct of 1@;1. ?reviously% the regulating body of imports was controller of "mport and :-port. ut this function has been shifted to :-port ?romotion ureau. <oreign :-change 0epartments of all banks are restricted to word under the rules and regulations of government. )mport License and 'e!istration1 The individuals and firms who desire to import goods from the foreign countries are required to obtain import license. "mport licenses are a type of artificial restraint on the import trade of a country. To acquire import license% the importer has to submit applications to the licensing authority. The importers can only get their merchandi&e cleared from the custom authorities if they have the import license duly issued in their
names. The import licenses issued by the "mport Trade !ontroller are required to be registered with the State ank of ?akistan. +ontract of sa$e1
>@ University Of Sargodha
#fter getting the license% the importer then negotiates with the e-porter. ,hen they reach to an agreement on all terms of sale% they sign a contract. Thus contract includes all information of terms and condition of sale. Letter of credit1 <oreign trade payment problems are mainly solved by a letter of credit. # letter of credit is issued by the importer+s bank. "f guarantees payment to the e-porter up to specified amount of money provided the terms and conditions laid down the $9! are fulfilled. # letter of credit is a commitment on the part of buyer+s bank to pay or accept draft drawn upon it% provided drafts do not e-ceed a specified amount. # letter of credit thus is a 3"5 written undertaking by an importer+s bank to e-porter+s bank. 3""5 That it will pay or accept draft drawn upon it up to a stated amount with a specified time. 3"""5 The payment will only be made to the e-porter if he compliers with the terms of credit. Parties to a $etter of credit1 There are four parties involved in letter of credit. 1. Acco"nt party1 The buyer or the importer on whose account and request the letter of credit is opened is known as account party or opener. '. )ss"in! 7ank1 The bank which issues or opens a letter of credit at the request of importer is called issuing bank. (. E:porter or se$$erE The seller or the party in whose favor $9! is drawn is the e-porter. 4e is also called beneficiary. /. Ne!otiatin! 7ank1 The paying bank in the e-porter+s country% on which the draft is drawn% is called negotiating bank or paying bank. %penin! of $etter of credit1 The main steps involved in the opening of the letter of creditor as followsE
App$ication for $etter of credit1 The importer will request his own bank or any other bank% which deals in foreign trade transactions to issue a letter of credit in favor of the e-porter. 4e will prepare an application on the prescribed form available from the bank. The information% which are supplied in the application are based on the contract of sale and include only the important feature of contract% such as value of merchandise% port of shipment% documents to be presented% port of unloading% brief description of goods% import license etc. Scr"tiny of app$ication1 efore issuing a letter of credit% the bank will scrutini&e whether the importer is of good financial standing% possesses the import license issued by import control. #uthorities% the amount available covers the letter of credit applied for% market demand of goods% collateral offered to cover the credit etc. +ash mar!in1 The bank asks the importer to deposit cash or securities with the bank. The proper margin of cash or securities to be deposited is decided by the bank depending upon the credit worthiness of the importer. )ss"e of the $etter of credit1 The importer bank after being fully satisfied will issue a letter of credit in favor of the e-porter. The $9! may be sent directly to the e-porter or the advising bank in the e-porter+s county. "n such a case% the advising bank will inform the e-porter about opening a letter of credit.
Shipment of !oods1
,hen the e-porter receives $9!% he e-amines it to ensure that it conforms to the terms of contract of sales. 4e then shifts the goods and presents all required documents along with the bill to negotiating bank. 'o$e of ne!otiatin! 7ank1 The negotiating bank after receiving all the documents and the bill from the e-porter will scrutini&e them whether these conform with the terms of letter of credit. "f the documents of title accompanying the bill are in order% these will be sent to the importers bank for payment. Lia7i$ity of the iss"in! 7ank1 On receipt of documents and the bill% the issuing bank will e-amine them. "f the documents on the face appear to be in order% the payment would be released by the bank. "n case any defect is found in the documents and the draft is honored by the issuing bank the importer can claim damages on the issuing bank. The issuing bank is only accountable for the completeness of documents% not to see whether goods conform to the contract of sale. Payment 7y importer to the 7ank1 <irst the importer pays all his obligations the bank then bank releases the documents. "n case of sight draft% the importer+s bank pays the amount on the same day charging the importing customer+s account. "n case of a time draft% the importer discharges his obligations to the accepting bank on or before the maturity date of acceptance. The accepting bank will then release all the shipping documents to the importer.
Payment to the e:porter1 2' University Of Sargodha
The e-porter can obtain payment from the negotiating bank by discounting the draft 3$9!5 immediately after shipping the goods and obtaining shipping documents.
E.P%'T
The international trade transaction in which one country sells its goods to other country is called :-port. The controlling body of e-port in ?akistan is :-port ?romotion ureau% it gives different incentives to the businessmen for enhancing the e-ports and reducing the alance of payment deficit. "t restricts the e-port of some goods and reinforces e-port of other. The steps involved in import are described earlier from the importer+s point of view. The procedure of e-port is same% as it can be described from e-porters point of view. The activities% which are different% described here. &orei!n 7i$$ p"rchased 3&BP41 <ollowing requirements must be fulfilled before the purchase of <oreign :-port ills. :-porter should be account holder of the bank. ank issues the <ormC:. <ormC: should be filled correctly and then bank authenticates the :C<orm. :-porter goes to the custom authorities for custom clearance. Shipping !ompany issues #irway commercial invoice% packing list etc. ank scrutini&es the documents. #fter fulfilling these requirements% bank purchases the e-port bill and makes payment for the value of goods in ?ak 8upee to the :-porter. Lod!ment1 ill of $ading or ill. :-porter should bring other documents like certificates of Origin%
$odgment means making the payment to e-porter by bank against the purchase of bill. Two types of rates are used in evaluating the amountE ;> %* B"yin! rate8At si!ht rate1 "t is the rate of e-port bill% payment of which is to be received within 1' days from the date of lodgment. <> #sance rate1 "t is the rate payment of which is to be made at a future date% normally within (1% >1% @1% 1'1% 1;1% or 161 days. 'ea$i2ation1 8eali&ation means receiving the payment from the foreign bank for the e-port of goods.
*eposits *epartment
0eposit is the functional unit of a !ommercial ank. No bank can run its
operations without deposits. .ain function of a commercial bank is to channeli&e saving from the savers to the ultimate users of funds. The process of collecting saving is called 0eposit .obili&ation. Two board categories of deposits with reference to time period areE *emand *eposit1 These are payable on demand. They include current account% sundry deposit 3e.g. margin account5 and call deposit receipt. No profit is given on demand deposits. Time *eposit1 ?ayable on demand with certain maturity. #ttracts profit with respect to time.
'emittance *epartment
8emittance department plays an important an important role in transfer of fundsA it includes 00% TT% .T% T! and pay order. "t is an instrument payable on demand for which value has been received issued by the branch of the bank drawn i.e. the payable at some other place 3 ranch5 of the same bank.
Trave$$ers +he6"es 3T+41

T! 3traveler+s cheques5 is for all branches with no charges. ,e give the money in cash9cheque9direct debit instructions to the banker and he gives in return the slips of 8s.11%111% 8s. ';%111% 8s.;1%111% 8s.111%111% 8s.;11%111 which is required. Now government has made some restriction against T! because people have stared it to use in place of money. There are no charges of any type such as postage% ta-es% and commission charges.
Te*e+raphi(,Mai* Transfer -TT,MT.:

This is an instrument that is use to transfer the money from one branch to other branch of same bank through bank. The person known as payee% for whom TT is made% TT is only paid to him after seeing his "0 card. TT has been made on following modes of payments. ;> On cash. ;> On cheques. <> Through debiting account no. #fter issuing TT it is get registered in issuing register. ,hich required TT9.T no. payee name and address% amount% account no.3if through account payment has been made5% cheque no.. #long TT9.T an advice also be send to other branch from where money will
be drawn% that advice is called tele- message. On the basis of which the other branch will pay the money after tallying serial no. and test no. of TT. TT is made if the client has account in the bank if he has no account then he has to fill the TT8 3telegraphic transfer receipt5 which is a voucher for the official record in bank. "ts form is of blue colour. "n 00 the person has to take care of 00 which is issued to him.
*emand *raft 3**41

The demand draft 3005 is issued to the person who wants to draw money from another branch in any other city% and then by showing that draft he can easily draw money if he has account there. 0emand 0raft is issued by one branch of bank payable to other branch of the other bank e.g. 00 is issued by #! $ payable by .! . The person who pays the value and on whose behalf draft is issued is called purchaser. The The ranch9Office which issues a draft on another branch or office is called the ranch 9Office on which draft is drawn are called the drawee branch. The person drawing9issuing branch. entitled to receive the payment is called the payee. 00 also has been made on three modes of payments. 1. On cash. '. On cheques. (. Through debiting account no. )ss"ance of **1 8equest shall be on the standard 00 application form. <ill in all information such as name of beneficiary place where the 00 is drawn% amount% mode of payment cash9cheque 9debit authority signature with name and addresses. !heck the application form.
!harge commission as per schedule of charges. *et voucher from cash department. #fter the customer has made payment by cash 9cheque. ?repare the demand draft 3Security Stationery5 The issuance of 00 is computeri&ed and the amount is automatically protected graphed during printing for avoidance of forgery. :ntry is then made in 00 issued register% in the 00 issued register separate folio is allotted for each draw branch and a serial control number is applied. #fter issuance of 00% an advice is send to the branch from where client wants the money to be drawn% which confirms the 00. "n this aspect cantra is another concept% which is followed in the branch where money is transferred. ?ayment of 00 takes place in two waysE ;> "f advice reaches the other branch before the draft then that branch debits the 4.O of bank and credit client. <> "f draft reach first then bank open the temporary account called suspense account or red account through which amount is debited for the satisfaction of client and credited the 4.O of bank when that branch receives the advice than it debit the 4.O of bank and credited the suspense account. There are postage and commission charges.
+ance$$ation %f **1
Obtain application in writing along with original 00. Jerify the signature of applicant. This signature should tally with signature on 00 application form. .ark cancellation in 00 issued register. ?ayment from suspense account 00 cancelled after recovery of cancellation cheques as per current schedule of charges. "nform the drawee branch regarding cancellation and ask for " !#. On receipt of " !# ad=ust amount paid out of suspense account.
Lost8Stop Payment8)ss"ance %f *"p$icate **>

*et application from purchaser and verify the signatures. "nform the drawee branch of the loss of 00 and advise them to mark caution against payment if presented. #fter necessary checking% the drawee branch will inform us about the status of 00C whether it has been paid or is still outstanding. ,rite on the face of duplicate 00 in red ink H0uplicate in lieu of original 00. no.QQQQ dated QQQQ reported lostI. The duplicate 00 will have the same control number.
The printed number and serial control number of 00 issued shall be mentioned on the application form. Signatures of two attorney holders with their attorney number should obtained on the 00. The 'nd signing officer must check all the particulars before signing. The postage rate is fi-ed 8s.';and commission rates are as followingE
"ay Order:
?ay order is also called Hbanker+s chequeI drawn upon the issuing branch9Office itself. "t required account no. and other information about client which mean cross payment is its restriction. *et the application form. "ssues pay order after recovering charges. 0o necessary vouchering. .ake entry in ?O issue register. #ll pay orders shall be crossed Hpayee+s account onlyI. "t may be noted that " !# is not involved because ?O are payable in same branch.
!an(e**ation Of "O:
#pplication for cancellation. Surrender of original pay order. 8ecover cancellation charges.
Lost And *"p$icate Pay %rder>

!heck the record to ensure that payment has not been effected. *et application for issuing of duplicate ?O. 8ecover charges. "ssue duplicate pay order.
Pay s$ip1
The banks for settlement of its own payment issue pay slips. There is no e-cise duty and no commission.
AS,A') +A'*
#SB!#80 means freedom% comfort% convenience and security% so that you can have retail transactions with complete peace of mind. #SB!#80 is your new shopping companion which enhances your quality of life by letting you do shopping% dine at restaurants% pay your utility bills% transfer funds% withdraw and deposit cash through #T. anywhere% anytime.
T0PE %& +'E*)T +A'*>

There are three types of credit cards issued.
i> ii> iii>
Si$ver card -o$d card Loca$ card
R Silver card has limit R *old card has limit R $ocal card has limit
upto ' lac. upto ;Clac. upto ' lac.
Silver and *old card can be used internationally for shopping and also can be used for internet shopping. R $ocal card can be used in ?akistan.
Trave$ers +he6"es
The range of our products and value added services enhances with introduction of 8upee Travelers !heques 38T!s5 launched in .arch '11'. "n spite of our
constraint on issuing higher denomination of 8T!s against restrictions imposed by the !entral portfolio. ank of ?akistan we have been striving to attain our shares with si&eable
/a$"e P$"s *eposits

The first liability product launched by this unit is showing a remarkable acceptability in the market. The growth of this product is witnessed by its share% which has presently reached at 8s. 1%12@ .illion even after lowering down the profit rates due to sufficient liquidity in the market.
TAS, *%NE
There are following learning points for me in the bank.
&irst (eek 5 Second Week

"n my first two weeks in #! $% " work in #ccount Opening 0epartment. " learned more in this department. 4ow to open the accountS New computeri&ed !N"! is must for opening of new account. <or current account ;%111 and for five thousand. ,hat is the source of income of the customer 4ow to fill the deposit Slip if anyone wants to transfer cash or deposit cash 4ow to fill the different accounts <orm 4ow to issue the !heque ook 4ow to enter it in the register " m fully trained in this =ob how to open the different accounts% how to issue the !heque book and enter it in the register and how to issue a 0ebit !ard. # account 1%11 and for saving more than
Third Week 5 &o"rth Week

"n these weeks " work in !learing 0epartment. " learned much in this department. There are two types of clearing "nward clearing Outward clearing "n these weeks " entered the cheques lodged for inward clearing in clearing register as their cheque number account holder name% cheque amount and bank name amount to be
paid. Secondly in these weeks " prepared 3O9,5 clearing for ne-t day. Same as entered cheque number account holder name amount and ank name. "n these weeks " also entered cheque return in cheque return register and put cheque return slip on cheque. " am full trained now in this particular =ob. 4ow to fill cheque return slipS 4ow to enter in me 9,% O9, clearing register.
&ifth Week
"n <ifth week " work for 8emittances 0epartment. 0emand draft and ?ay order preparation. 0emand draft is for payment outside of city and pay order for local payment. "t is a secure source of payment. There are no charges for ?ay order while other banks charge for this service so it is an advantage going to #! $ bank to attract customers. "n this week " repeatedly perform the =obs and " am fully trained in such type of operations to make the 00% ?ay order.
Si:th Week
"n Si-th ,eek " worked in 48 department. "n the branch the 48 !oordinator is responsible for keeping the record of the employees% presence record and their performances. This department keeps record of leave application of the employees. "f application of any employee is missing then it asks him9her for the application. "t also keeps the record of the progress of employees and prepares the report. Ski$$s #sed " used courtesy% clarity% comprehension and cohesiveness that " studied in business communication.
Observing the whole organi&ation critically and found the organi&ations strengths and weaknesses. <ind the urgent solution of the problem " also learned the skills% which are not possible to learn from books. " learned how to create relationship with others. :-planation of the required documents to open the new account or renew the account is included in my internship description in this department. "n this department " learned how to do transfer of funds from one branch to another with in the country through following banking instruments i.e. 0emand 0raft% Telegraph transfer% .ail transfer and ?ay Order. Sending letter of thanks to new account holders to verify their addresses
+ha$$en!es &ace1 +"stomer Satisfaction1 "n #! $ customer dealing is will% but during rush hour the customer has to wait for a long time for their turn. "t+s quite hard for a new customer or potential customer to get the required information. Poor record mana!ement and fi$in! system1 0uring my internship " observed that filing system of branch is not good. ,hen certain record is needed the staff has to struggle #ne6"a$ distri7"tion of (ork1 ,ork is not equally distributed. On one hand some employee have to work all day without rela-ing while some others have nothing to do at all. This not only creates 6; University Of Sargodha
confusion among employees but also hurting and disturbing for overall setup of the bank. #nd above all it results in dissatisfaction among customers as well.
Bank d"ty to maintain secrecy1

They don+t care about maintaining secrecy% especially during the rush hours. They speak loudly about the account position and while getting clearance of cheque the person can easily get the whole information from the ledge. The deposit clerk must be careful while passing any cheque. "n this regard another shortfall is in giving the information about the balance on telephone. E:cessive paper (ork1 "t is notified that due to the lengthy procedure of paper work the bank employee are over burdened. They are unable to give proper attention to the clients and face difficulties in getting their =ob done. One reason for lengthy procedure and e-cessive paper work in the bank is the lack of computeri&ed technology More acco"nts fe(er deposits1 :fficient banking is one which does not emphasi&e on number of accounts but on greater amount of deposits.#! $ is more interested in increasing its number of account irrespective to its deposit. The main reason behind it is that bank does not provide personali&e service to all the account holders and does not improve its quality and services. *e$e!ation of a"thority1
.anager has very limited authorityA he has to take the approval from his management authority iCe. "n case of advance he has to take the approval of general and regional manager. The other problem is created% when the manager is not present in his office% the customer have to wait for hours. This discourages both customer and officers because they have to suffer a lot.
+are$essness in openin! of acco"nt1 ,hen customer comes to open an account% the staff does not bother to check his9her place phone number and permanent address. "t is important because in case of overdraft by mistake or anything which places his account in debit it will be difficult to trace him. On the other hand he may be involved in any fraudulent activities against the bank. "n this case the bank will be in awkward position Lack of specia$i2ed trainin!1 N ? does not provide adequate facility of speciali&ed training to their staff. Training is generali&ed rather than speciali&ed. #s the worker finishes his training% he is inducted into a specific field without having great deal of knowledge about the field *e$ays in Loan Advancement1 "t has been observed that there are delays in sanctioning of cases form the head office% which results in customer dissatisfaction.
&inancia$ Ana$ysis
Ba$ance sheet
'111 '11@ '116 '112 '11>
Assets !ash and balances with treasury banks alances with other banks $endings to financial institutions "nvestments #dvances Operating fi-ed assets 0eferred ta- assets Other assets Tota$ asset Lia7i$ities ills payable
''%;>;%166
1@%(6;%6/( 1>%1'@%>(; (%@;/%61/ /%/2@%2;/ (;%>22%2;;

1'6%616%'/'
1(%(;>%1;; (%/@2%1;/ 1/%///%1/( (@%/(1%11;

111%261%1>'
(%26/%6>' 6%(>/%'>1 @%12'%16> /%>1/%1;@
1/%62@%'( 1 2%(((%11' 6%(@'%@;1

'6%>';%@1; @@%12@%(2'
11'%';@%2;2 >2%1/>%1(( 1;'%26/%1(2 1(;%1(/%/@@ @%@62%@>( @%'>1%>1@ C 1/%1@1%/;@ (1/%2//%;;' (%16@%@6/
6%'>>%/;6
;%1'6%/'6 C ;%;(;%1(6
16'%121%66;
(%611%((1 C (%61'%266
1>>%1((%;66
C C 11%>'1%1/' 6%@>/%/61 ';/%('2%//> '%@/;%>/1

'1>%1@1%1(6
'%;6/%6'6
'%>'2%1;1
1%6(@%122
orrowings 0eposits and other accounts SubCordinated loans $iabilities against assets sub=ect to finance lease 0eferred ta- liabilities Other liabilities Total liabilities Net assets 8epresented y Share capital 8eserves Unappropriated profit Surplus on revaluation of assetsC net of ta-
';%;;/%222 ';;%@(>%;1( ;%@@'%;11 Q 6;%;12 6%161%1(@ '@6%2/1%/11 1>%11/%1/' >%/'2%//1 2%>@1%(1@ 211%61@ 1/%6'1%;26 1%16(%;>/ 1>%11/%1/'
1@%(11%1>( '1;%@21%''2 ;%@@/%@11 Q (((%@'; /%6((%/6@

'(@%(26%(2/
1;%1@1%1/6 1>2%>2>%;2'
12%;;(%;';
1/(%1(>%212
1/%@>/%16/
1(1%6(@%'6(
'%@@>%111 Q 1'%@62 /%2;@%1/1

1@(%'1@%22;
'%@@2%(11 Q /21%;1@ (%'1@%2@>

1>@%@1;%6@6
'%@@6%;11 QQ 2(>%'@6 '%>1(%11(

1;/%@61%(;6
1/%@/@%12' ;%12(%/>2 2%16'%@62 66>%'(/ 1(%1/'%>66 1%61>%(6/ 1/%@/@%12'
1'%@21%(>( /%1;6%22/ 2%>>2%1/1 (16%@61 1'%1(/%6@; @(>%/>6 1'%@21%(>(
1'%'>;%@62 (%11>%/@@ >%@/6%((> '%1//%611 1'%1@@%>/; 1>>%(/' 1'%'>;%@62
11%1;(%'(1
'%11/%((( ;%61/%2;/ 1%2@@%@2@ @%>1@%1>> 1%/(/%1>/ 11%1;(%'( 1
ori2onta$ ana$ysis
/001 Vs Vs /006 /002 Vs /001 /003 Vs /002 /004 /003 /050 Vs /004
Assets !ash and balances with treasury banks alance with other banks $ending to other financial institutions investments advances Operating fi- assets 0eferred ta- assets Other assets Total assets Lia7i$ities ills payable orrowings 0eposits and other accounts Subordinate loans $iabilities against assets sub=ects to finance lease 0eferred ta- liabilities Other liabilities Total liabilities Net assets Share capital 8eserves inappropriate profit Tota$ Surplus on revaluation of assets net of taTotal capital Total liabilities and capital
'>G ('G C12G 11G 1;G 1@G /1G 1/G /1G /' 11G C C (1G '2G 1/G ';G ((G (1G 11G '2G 16G ';G 6G
C11G C;'G 2'G (6G 'G (;G /;G 11G /(G 12G 6G C C C(>G '/G 11G 11G ;1G 1@G 1@G '>G C66G 11G 11G
'1G 1(G C>@G C11G '6G >1G >'G 1(G C'G C1(G 12G C C C@2G /6G 1/G >G C((G C1>G C1>G C'1G 2>'G C11G 1(G
'1G 111G (G 66G ;G 1'G 16G '(G 1/G '2G '(G 111G C
1>G C;;G @@G ;(G 1(G 6G (/G '/G ;G ('G '/G C C
'/21G C2/G 'G >2G '/G ';G 1;G 2G 1;(G '2G '/G >G C;/G C1>G (2G 1(G '>G C(/G (;G 2G '(G '/G
)nterpretation1
<rom the analysis above we have seen that total assets of #SB#8" bank has been increased from '11>C'111. The main reason for this increase is that bank investment
@1 University Of Sargodha
increase in '11@ with a large amount iCe 66G. #nother reason for increase in assets of bank is the large amount of balances of other banks. ,hen we make a look on liabilities section of bank we have analy&ed that the banks liabilities have been increased in '111 as compared to '112 and '116.which means that a large amount of debts have been taken by a bank in this year. Now move to equity section from the analysis of bank+s capital we came to know that the total capital of bank has been increased in '111 than in previous years which is a favorable point for bank.
4ence the overall trend of the bank+s financial position that we have analy&ed from hori&ontal analysis is that. ank+s total assets have been increased with a minimum amount from '11>C'111 ank+s investment shows a large amount of increase the main reason for this change is its less lending to financial institutions and large amount of balances of other banks The total liabilities of bank also decreased which is not a favorable point but it may be due to change in governmental policies or government regulations% country+s economic position and many other factors. The capital of bank also shows a good point of bank+s financial position.
)ncome statement
<B;B <BBJ <BBI <BBH <BBG
@' University Of Sargodha
ad debts written off QQ ''%;6>%2( '/2%(11 .arkTup 9 return 9 interest QQ '2%@;'%1> 16%(@(%(1 QQ 1;%1/(%'/ directly earned ' > ( 1 .arkTup 9 return 9 interest 12%@(>%>1 1(%;;/%12 11%>;1%21 6%>6;%>'/ (%1>/%(6' '%@1/%6@( /%12'%;@2 (%@'1%2/1 e-pensed > 6 @ Net markTup 9 interest 11%11;%;/ @%1('%>;6 2%2/'%;@/ >%/;2%>12 Net markCup 9 interest income > income after provisions >%112%2>; (%>>@%@@2 ?rovision against nonT>%@;1%1>/ '%(1@%'61 '%('/%(22 (%6'/%226 '%;(;%62> (%@'1%'/1 performing loans and 8advances Non mark9"p "mpairment loss on #<S (6'%2>/ /(1%1;6 QQ QQ interest income investment ?rovision for impairment in '@>%;(1 2>%26/ 1%';2%;6/ ;16 1%;11 <ee% commission and 1%'21%/>2 1%(12%>@@ 1%12'%6>6 the brokerage income value of investments 0ividend income '1@%@'' 1>'%;(2 12(%>'1 1(2%12@ "ncome from dealing in foreign currencies *ain on sale of securities C net Unreali&ed loss on revaluation of investments classified as held for trading C net Other income Total nonCmarkup 9 interest income 3(;/5 /21%/21 '%122%1/( @%1'6%'12 Non mark9"p 8 interest e:penses #dministrative e-penses 2%61'%>16 >%@@;%6;2 ;%@1/%1>@ /%26@%;(> 31%@165 /1/%''1 '%;//%/1; 6%>>'%161 ''%(6/ (/(%1;> '%212%111 >%(2>%@@2 1%2'6 ((>%61@ /%;>;%/@> 2%111%(2' 1(%111 '1'%;'2 ;'6%1;@ 1/(%212 62(%;1' (>%2/( >;;%2>1 '%(>1%';1
QQ 1'%;@>%@' 1 >%@22%(1( 1%1'6%;1( ;%>1@%>16 /%/@1%1@; 1%1'6%1(2 QQ (2> 1%11(%>>1 11@%('> ;6/%(// 11'%/2/
3'%(165 ('1%2;6 '%1(@%';/ >%>(1%(/@
(%'22%(;;
@( University Of Sargodha
Other provisions 9 write offs Other charges
QQ /'%/;(
QQ (/%(>6
/;@ 11%@62
QQ 1'%;11
QQ >%1/1
Total nonCmarkup 9 interest e-penses :-tra ordinary 9 unusual items
2%6;;%121
2%1(1%'';
;%@1;%>1;
/%611%;62
(%'6(%/@/
1%'2(%1(> QQ 1%'2(%1(> ('@%>12 QQ (/' ('@%@;@
1%>(1%@;; QQ 1%>(1%@;; ;>'%1@@ 11@%6'2 31/2%/265 ;(/%//6 @/(%122 6((%;11 1%22>%>66 1./6
/>1%(6' QQ />1%(6' 12%(>( 3;1%1115 112%2@/ 2;%1;2
'%'@@%26; QQ '%'@@%26; @6%;(; 3'((%@;15 3'/;%61'5 3(61%''25 '%>61%11 ' 1%2@@%@2 @ /%/61%@@ 1 6.@'
(%(/>%6;; QQ (%(/>%6;; @6(%62; QQ 11(%11>

1%1@>%661
?rofit before ta-ation Ta-ation T current T prior years+ Tdeferred
?rofit after ta-ation Unappropriated profit brought forward ?rofit available for appropriation asic 9 diluted earnings per share C 8upees
1%1@2%;12 (6>%''; (16%@61 '%1//%61 1
'%'/@%@2/ 1%>12%;@2 (%6>2%;21 2./6
1%/1>%/62 '%;(1%1( ; 1.2@ .2>
Horizonta* #na*ysis:
/001 /003 Vs /004 Vs /050 Vs Vs @/ University Of Sargodha Vs /002
/006 /002 /003 /004
/001
@; University Of Sargodha
Mark up ! return ! interest earned Mark up ! return ! interest e(pensed +et mark up ! interest income Provision against non performing loans and advances 0mpairment loss on 123 investment Provision for impairment in the value of investments 4ad debts written off directly +et mark up !interest income after provisions &on mark7up,interest in(ome: 2ee, commission and brokerage income 5ividend income 0ncome from dealing in foreign currencies 6ain on sale of investments net 7nrealized gain on revaluation of investments classified as held for trading net 8ther income Total non markup ! interest income &on mark7up,interest e8penses 1dministrative e(penses 8ther charges Total non markup ! interest e(penses Profit before ta(ation Ta(ation current o prior years9
"#$ )#$ '&& $ **$ . . '&# $ . --$ ',$
%&$ %"$ ',$ %"$ . . . %"* $ .""$
%'$ %#$ %&$ .%$ .
%#$ %*$ '*$ .#/$ .
%"$ #%$ ''$ . . %-) $ '&& $ ,$ '"$
.))$ ',&', $ . "$ ",$ . .%-$ )*$
%'$ ''" $ )"$ '%$ . '&& $ ,)$ #-$ %%$ %)$ %&& $ %*$ '*$
)$ %)$ '%$ %&&$ %&& $ ,$ ''# $ *$ ")$ '&& $ ")$ .#'$
'*$ %*$ ##$ ./-$ ''/, $ %$ ."'$ .'&$
"$ .)$ ."&$ %/'$ '&/$ '-$ .)$ #)$
.#$ %/$ ./-$ "-$ .-%$ ')$ .'"$ ,$
%#$ ./$ %#$ .-&$
'-$ %'#$ '/$ %,"$
'%$ %"$ '%$ .%%$ ."'$ '&& $ '&& @> $ #-$
'/$ ./&$ '&& . $ '&& o deferred ."#$ $ #'$ . University Of Sargodha #'$ . '#,
.-%$ #'#.*/$ $ .'""$ .'&&$ .'%&$ .%#*$ )''$
)nterpretation1
Net income of #SB#8" bank has been increased with a large amount in '111 as compared to '11>% '112% '116 and '11@.The main reason for this increase isE Net mark up interest income is increased in '111 because of loans and advances taken by a bank in '111 decreases with large amount.
#nother reason for this increase is increases in net mark up interest earned by a bank. Total non mark up interest income has been decreases in '111."t were a large amount in '11>C'11@ which was not a favorable point. 4ence the hori&ontal analysis of askari bank shows that company+s financial position was much better in '111 as compared to previous years.
Verti(a* ana*ysis:
Technique for identifying relationship between items in the same financial statement by e-pressing all amounts as the percentage of the total amount taken as 111. "n a balance sheet% for e-ample% cash and other assets are shown as a percentage of the total assets and% in an income statement% each e-pense is shown as a percentage of the sales revenue. <inancial statements using this technique are
called common si&e financial statements dividing each e-pense item in the income statement of a given year by net sales to identify e-pense items that rise more quickly or more slowly than a change in sales. <or e-ample% an analyst may study a firm+s balance sheet to compare the level of current assets with the level of current liabilities in order to measure liquidity. #nalyst often studies a firm+s income statement to compare net income with total sales.
E:amp$e1
"n balance sheet all accounts of assets section will be divided by total assets while in liabilities and owner+s equity sectional accounts will be divided by total $iabilities and equity. "n income statement the hori&ontal analysis will be done by dividing all accounts by mark up interest9return earned.
Verti(a* ana*ysis:
Ba$ance sheet1
/003 Vs /003 /004 Vs /006 /004 /001 /002 /001 /050 Vs /002 Vs Vs
Assets
!ash and balances with treasury banks
/$ ,$ %$ ,$ '*$ /#$ )&$ %$ *$ %$ '$ '&&$ "= '$ '$ /$ )$ */$ %$ '$ . *$
*$ %$ %$ -$ %%$ '&& ,,$ $ #$ *$ #$ %,$ '&&$ ,*$ %$ '*$ '&$
-$ %$
-$ #$
*$ '$
alance with other banks 8ther liabilities $ending to other financial institutions investments Total liabilities advances Operating fi- assets +et assets 0eferred ta- assets Other assets 3hare capital Total assets <eserves $iabi*ities ills payable inappropriate profit 4orrowings Tota* 5eposits and other accounts 3ubordinate loans 3urplus on revaluation of :iabilities against assets net of assets ta( sub;ects to finance lease Total capital 5eferred ta( liabilities
%$ %$ %$ #$ #$ %$ '*$ %)$ #%$ '&& '&& '&& )#$ ,#$ "/$ $ $ $ "$ "$ #$ )$ )$ ,$ "$ "$ ,$ '-$ #"$ "&$ '&& '&& '&& $ $ $ ,#$ "-$ "-$ '$ ')$ -$ '$ )$ -$ '$ ,$ -$
//$ -*$ -*$ -)$ --$ -)$ /#$ -"$ %$ '$ . '&& $ %$ '#$ . '&& $ #$ '%$ . '&& $ %$ *$ . '&& $
@@ University Of Sargodha
)nterpretation1
<rom the analysis of balance sheet% we have concluded that the total assets grew by '/.1G contributed by /'G increase in cash balances% ;'.;G increase in investments and 1/.1G in advances. The investments in Kheld for tradingK rose by >6.>G which was added to the investments growth while nominal increases were observed in investments in Kheld to maturityK and Kavailable for saleK.
/ertica$ Ana$ysis1
)ncome statement
/001 /003 Vs Vs /006 /001 /004 /002 /003 /004 /050 Vs Vs /002 Vs
Mark up ! return ! interest earned Mark up ! return ! interest e(pensed +et mark up ! interest income Provision against non performing loans and advances 0mpairment loss on 123 investment Provision for impairment in the value of investments 4ad debts written off directly +et mark up !interest income after provisions &on mark7up,interest in(ome 2ee, commission and brokerage income 5ividend income 0ncome from dealing in foreign currencies 6ain on sale of investments net 7nrealized gain on revaluation of investments classified as held for trading net 8ther income Total non markup ! interest income &on mark7up,interest e8penses: 1dministrative e(penses 8ther charges Total non markup ! interest e(penses "rofit before ta8ation
'&&$ ,,$ ",$ /$ . . . /$ #)$
'&& $ ,*$ "#$ %)$ . . . %)$ '*$
'&&$ '&&$ ,-$ "%$ %'$ . . '$ %%$ %&$ )&$ "&$ '&$ . . . '#$ %*$
'&&$ )"$ #)$ -$ . . . ''$ %,$
->&$ &>/$ ">)$ &>/$ . %>)$ '*$ ,#$
*>'$ &>/$ ">#$ ',>) $ . %>%$ #&$ "*$
*$ '$ ,$ . . %$ ',$ #,$
)$ '$ %$ '$ . %$ ''$ #-$
,$ '$ . '$ . %? -$ ##$
%)$ . %)$ %*$
#%$ &>'$ #%$ ',$
#%$ . #%$ #$ . . '$ &$ %$
#'$ . #'$ *$ %$ '$ .'$ %$ ,$
%-$ . %-$ ,$ '$ 111 . . '$ #$
Ta(ation current -$ '$ o prior years9 . .%$ University Of Sargodha '$ .%$ o deferred /$ .#$ "rofit after ta8ation '-$ '-$
)nterpretation1
On the total mark up interest earned% the lager part is contributed by mark up interest e-pense in '111 i.e. >/G ?rofit after ta-ation is lower in '111 as compared to previous years% because of more e-penses and payment of ta-es by a bank in this year.
&)NAN+)AL 'AT)%S
;> 'et"rn on Avera!e Assets
U Net operating "ncome #verage Total #ssets V 111
<BBG ;>EBK
<BBH ;>FBK
<BBI <>B;K
<BBJ E>IK
<B;B =>=K
Return On #9era+ e #ssets

) , " # % ' & %&&) %&&* %&&%&&/ %&'& <eturn 8n 1verage 1ssets
)nterpretation1
This ratio is also known as firm+s return on investment. "t measures firm+s profit with its available assets. "n the year '11> the #skari ank is generating profit through its available assets is 1./1G% while in last year '111 it was (.(G as shown in the graph. This shows that ank is generating more9high profit ank. The decline regarding with its available assets% and its good for the increase in total assets.
previous year is due to 1/G decrease in profit for the year against '/G
<> Earnin! per share

U Net "ncome No. of shares outstanding V 111
%&&' (.,)-
%&&( ).*%-
%&&) &.*.-
%&&* %.+)-
%&+& +.,)-
"S
'& ) " % & %&&) %&&* %&&%&&/ %&'& @P3
)nterpretation1
This ratio represents the number of rupee earned on behalf of each outstanding share of common stock. The graph shows that there is too much decrease in earning per share in '111 i.e. 1./6G as compared to year '11> i.e. 2./6G. The decrease is mainly due to less then e-pected increase in net interest income% drop of 1/G in nonCmarkupCincome and 1'G increase in operating e-penses. #lso% the increase in number of shares has resulted in :?S to show a declining trend.
=> Net Profit Mar!in

A +et Profit B '&& Total 0ncome
2006 31.42%
2007 19.57%
2008 29.41%
2009 42.53%
2010 31.29%
&et "rofit Mar+ in

)&>&&$ ,&>&&$ "&>&&$ #&>&&$ %&>&&$ '&>&&$ &>&&$ %&&, %&&) %&&* %&&%&&/ +et Profit Margin
)nterpretation1 This ratio measures the percentage of each sales dollar remaining after all cost and e-penses% including interest and ta-% have been deducted. The higher this ratio the better is company. The graph shows that the Net ?rofit .argin of #B $ increases from '1.@/G in '11; to ;1.//G in '11@.
E> +"rrent 'atio

L !urrent #ssets 9 !urrent $iabilities
2006 1.07%
2007 1.06%
2008 1.04%
2009 0.46%
2010 1.03%
!urrent Ratio
'>%&$ '>&&$ &>-&$ &>)&$ &>"&$ &>%&$ &>&&$ %&&) %&&* %&&%&&/ %&'& Current <atio
Ana$ysisE !urrent ratio should not be less than '. This indicates that the current assets are twice than current liabilities. !are should be taken that current assets are not unduly inflated by over valuation 4ere in this case the current ratio of #skari bank is constantly decreasing from '11> to '11@ which is not a good sign and shows poor liquidity position of the bank but in '111 it slightly increase which is a good indication.
F> Times )nterest Earned

D @arning 4efore Ta( ! 0nterest @(p 11> University Of Sargodha
2006 1.019%
2007 0.478%
2008 0.077%
2009 0.233%
2010 0.162%
Tim esInterest arned

'>%&$ '>&&$ &>-&$ &>)&$ &>"&$ &>%&$ &>&&$ %&&) %&&* %&&%&&/ %&'& Tim es 0nterest @arned
Ana$ysis1 This ratio indicates the payment of interest by the bank. <rom the above analysis this ratio has been decreasing from '11>C'111. "n '112 company is paying its interest payments on time but in the ne-t three years this ratio starts falling.
G> *e7t 'atio

P Total 0ebt 9 Total #sset
2006 1.019%
2007 0.112%
2008
2009
2010 0.162% 112
0.085% 0.084% University Of Sargodha
/00 tota* #sset 0:0 3; %ebt Tota* 4 , %'))#!%,"#% *
/00 3 '-,'-)!%&),' /' 0:0 36
/00 2 %&,,,&!'-%,' *% 0:5 5/
Ana$ysis1
0ebt ratio means how much debt company has been taken from its total assets. The ratio has been decreased from '112C'11@ which means bank total debt has been decreased due to which the amount of ratio has been decreases which is favorable for bank.
H> 'et"rn on Assets

P Operating "ncome 9 #verage Total #ssets /00 4 8perating 0ncome ! 1verage Total 1ssets *)-/"#% %,"#%* 0:0 </ /00 /00 2 -,#*&,#-%! '-%,'*% 0:0 5/ 0:0 ;6 116 University Of Sargodha 3 ! %,,#',&#,! %&),'/'
Ana$ysis1
This ratio shows that the return is lesser in '116 as compared to return on assets in the year '112 3gradual increase5. #lthough interest and discount on loans which is the ma=or source of revenue for bank% but cost on deposits and borrowings which is the ma=or e-penditure of bank has increased more in '112 than in '116. #nother reason of decrease in return is the decrease in lending rate and increase in financial cost. ut again we have seen a small increase in this ration in '11@.
I> Net Profit Mar!inE

P 3?rofit #fter Ta- 9 .ark Up interest e-pense5 O 111
2006 0.322%
2007 0.415%
2008 0.036%
2009 0.081%
2010 0.052%
&et "rofit Mar+ in

&>",$ &>"&$ &>#,$ &>#&$ &>%,$ &>%&$ &>',$ &>'&$ &>&,$ &>&&$ %&&) %&&* %&&%&&/ %&'&
+et Profit Margin
Ana$ysis1 !alculation made on the base of data available shows that profit earning after ta-es in '112 is greater than '116% '11@ and '111 years. 4ere in this ratio we see that the ratio has decreased not only by the single factor but also due to increase in interest. So% both these factors has resulted a decrease of the return. ut overall profitability of bank is decreasing that is not a good performance point.
J> Earnin! Per Share1

P 3?rofit #fter Ta- 9 Total No. Of :quity Share5
2006 0.322%
2007 6.61%
2008 0.76%
2009 2.18%
2010 0.052%
111
University Of Sargodha
/004
/003
/002
Profit 1fter Ta(
''&-
#-)
%)-'
Total
+o>
8f
,&-
,&*
"&,
8utstanding @quity 3hares Ratios Ana$ysis1 This ratio is also decreasing from '112 to '11@. "t is not good from shar /:53 0:21 1:15
;B> +ash to *eposits 'atioE

P 3!ash 9 0eposits5 O 111
2006 0.112%
2007 0.093%
2008 0.095%
2009 0.094%
2010 0.088%
!ash to % epositsRatio
&>'%$ &>'&$ &>&-$ &>&)$ &>&"$ &>&%$ &>&&$ %&&) %&&* %&&%&&/ %&'& Cash to 5eposits <atio
Ana$ysis1 This ratio shows that how much cash is available to meet the demand liabilities of the depositors. The bank should have reasonable cash balance to meet the customer requirements against their deposits in the bank. "n this case bank ratio shows a decreasing trend since '11>C'111 which is not a good sign from the bank point of view.
SW%T ANAL0S)S
ST'EN-T S
"n the bank service quality standards are designed and monitored to ensure a consistent and convenient customer e-perience. ?roducts and services are as diverse as market segments. ank has structured and syndicated financing arrangements% working capital finance% financing of international trade% consumer credit% small business loans% credit cards and #T. cards. The human resource philosophy at #skari ank focuses on multiCtalent hiring%
professional grooming% requisite training and merit based reward system.
Staff welfare has always been a priority. New initiatives like hospitali&ation plan% home loan insurance have added new dimensions to the staffCcare policy and motivated them to outCperform competitors. ank en=oys a strategic competitive advantage over all domestic players by virtue of its leadership in technological innovations. 0ifferent cameras are located at different locations to monitor the working of staff members and outside customers by branch manager. ank has fully automated transactionCprocessing systems for backCoffice support. ankKs branch network is connected onCline realCtime and customers have access to offCsite as well as onCsite #T.s% all over ?akistan. ank also is pioneer in eCcommerce venture in ?akistan through a ma=or retail distributor. #T. card is available with the withdrawal amount about 8s. 111111 a day. 11( University Of Sargodha
ankKs total assets now e-ceed 8s.21.@ billion and bank has over 12 products and services to match the individual needs of the customers.
ank has been honoured with the WThe *lobal <inance .aga&ine.
est
ank in ?akistanW award by the anking services% b'b eC
ank was the first bank in ?akistan to offer "nternet payment system.
commerce solutions for merchants looking to purchase on credit and :Cbill ,ith a network of 162 correspondents spread over @; countries worldCwide% the bank continued to reinforce its leadership position in trade finance% transacting business of over 8s.21 billion% during this year.
ank is now actively involved in the acquisition of business and signed up over (11 merchant+s national wide which offerCshopping discount to the ?rivilege !ard members. ankKs
#skari .aster !ard is accepted worldwide and at over (111 locations in ?akistan.
WEA,NESSES
ank is providing credit facilities only to the urban areas not too much attention is paid to the rural areas. #s ?akistan is agriculture country but no special schemes for the agriC loans. ank is not giving emphasis on the smallCscale businesses. ,hich are large in number in ?akistan. There is enormous difference between the bankClending rate and return on deposits.. The procedure and documentation while sanction loan is thorny. This is a barrier for advances.
ank gives targets to employees for deposits due to this reason they pay more attention to fulfil these targets to save their =obs. This distracts their attention from their duties. 8easonable care is not taken while opening new accounts one of the reason is because employees want to introduce more and more depositors. No =ob security is there for the employees% and no union e-its to secure them. The online credit card facility was not secured that is why recently bank has closed its online credit card shopping scheme. ank has not adequate number of branches as compared to its competitors like .! % U $% # $% N ? etc. 0ue to small number of branches at greater distance potential customers may go to other more feasible options. # good number of facilities are only for the army persons% not for the general public. #s every person in the bank has his9her own computer in the branch but they are not well equipped with the knowledge of using the computer efficiently. The return on deposits is very low. #! $ has only agency arrangements with the foreign banks% no branch e-ists outside the ?akistan. ,hile their main competitors have their own branch network outside the ?akistan. ank has no grievanceChandling department for the internal problems of the employees. 0ue to lack of computer specialist at branch level it has to take assistance from the head office. To improve the services and to remove the problems of customer the bank has no customer complaint department.
$imited locker facility is there% which do not fulfil the requirements of customer and charges of lockers are also very high.
%PP%'T#N)T)ES
ank has a small branch network so it has got the opportunities to increase the number of its branches. ank has no foreign branches so it should open its branches outside the country especially in U.B% U.S.# and in U.#.:. <acilities like financing of housing should also be offered to general public especially in the urban areas% not only army officers. "n agrarians cities like 8ahim Mar Bhan there is a potential for giving credit facilities to farmers. #t least on software and hardware technician should be appointed at each branch. ank is not yet performing utility services for the utility companies like ,#?0# it can increase its operations also in this direction and so a new source of earning. To increase its advances bank should focus small scale industries and choose one among them and then a special scheme of lending should be introduced for that particular small scale industry.
'EATS
$aw and order situation in ?akistan is faulty that is why people are not confident to invest anywhere. 11> University Of Sargodha
The markets rates are now at e-tremely low levels% with very little chance of their going up during the rest of the year. The low interest rate means low profits for the banks.
Saving rate in ?akistan is very low i.e.1;G as compared to (1G in !hina and /1G in .alaysia. This is a problem in ?akistan. #s the banking procedures are complicated that is why general public takes interest into other options of investments like in shares of companies and in Term <inance !ertificates. 8esponding to the S ?Ks prudential regulations management takes too much care while granting loans. Now other banks are also imitating the modern banking concept of #! $ and have started online facility and also have computeri&ed their operations. So there remain less competitive advantage areas for the bank. Now the world is a global village so competitors may rise from anywhere in the world at anytime. To survive in the industry and to earn profits bank should not rely on its present sources and facilities instead of this it should establish new ways of acquiring% managing and sharing market information. "n near future the world is going to be free trade &one so the concept of Wsurvival of the fittestW will be in action. #fter the 11 September incident and due to terrorist activities in ?akistan the economy is moving very slow. "t means less investment and as a result low loan demands. 4igh rate of ta-es on banking companies. S ? have a heavy penalties on banks for violating the ?rudential 8egulation. So it requires greater care while advancing. "ncreasing #T. trend among the banks also requires attention of the management to this side.
+%N+L#S)%N
Overall analysis of the bank leads to the conclusion that bank is performing at satisfactory level. The bank is no doubt the best .odern ank in ?akistan. #nd to keep competitive advantage over its e-isting and potential competitors bank is trying to introduce latest techniques on regular basis. The customers of the bank are increasing every year and that is why not only the deposits of the bank are increasing but also advances by the bank shows a steady growth during the last ; years. #s a result of increasing advances and investment in higher yielding Treasury ills. :quity base of the bank is also increasing and in year '111 it showed a positive growth of '1G over the period of last ; years. Total assets of the bank are also increasing continuously. Similarly the earning per share is also increasing. 0uring last year this ratio was highest in last ; years. 0uring its short life of operation bank has achieved many awards not only with in ?akistan but also from outside the ?akistan. So we easily without any qualm can conclude thatA /Ban# is oin e0actly on the way of de!elopment and pro ression/
'ecommendations
To survive in the industry and to earn profits bank should not rely on its present sources and facilities but also it should establish new ways of acquiring% managing and sharing market information. To increase the computer specialist at branch level. To improve the services and to remove the problems of customer by making a spread customer complaint department. To increase locker facility and decrease the charges of lockers. $aw and order situation in ?akistan is faulty that is why people are not confident to invest anywhere so we must control it. 7ob description must be clear so that it can define the =ob related duties and responsibilities. To increase the number of branches. ank should not give targets to employees for deposits because it distracts their attention from their duties. Beep the up to date information on their web sites. ank should try to separate the working area and customers visit area. "nstead of preferring the old employees of the other banks management should hire new and wellCeducated talent. This will contribute to the longCterm benefits of the bank. !redit policy should cover both the rural and as well as urban areas. !redit facilities should be enhanced to smallCscale businesses. The facilities currently availing by the army persons only% can be e-tended to general public e.g. house building finance. :mployees who perform e-traordinary and achieve more than their targets should be given bonuses.
1'1 University Of Sargodha
Limitations
1'1 University Of Sargodha
Bi7$io! -raphy1
'eferences1 9 We7 Sites1 9

www.askaribank.com www.sbp.org.net.pk www.pkeconomist.com www.google.com
Books19
&inancia$ Statement Ana$ysis 3 +har$es > -i7son4 ' 5 Personne$ Mana!ement 3 Werther 4
1'' University Of Sargodha
Anne:es
1'( University Of Sargodha
-$ossary
1'/ University Of Sargodha

Internship Report On Askari Bank

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Internship Report On Askari Bank

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Internship Report

Askari Bank Limited

Sir Raza Ali

' University Of Sargodha

MAAN JEE MAAN JEE

Who S"pported Me thro"!h A$$ My Life

> University Of Sargodha

,)N*S %& BAN,SE

E.+ AN-E BAN,S1

1' University Of Sargodha

To be the Bank of First Choice in the Region

Mission Statement: The mission statement of the bank is

&"nd Based Loan

Non9&"nd Based Loan

)mport 'e$ated &inance

E:port 'e$ated &inance

'#NN)N- &)NAN+E1 3'8&41

TE'M &)NAN+E1 3T8&41

&)NAN+E A-A)NST )MP%'TE* ME'+ AN*)SE1

N%N9&#N* BASE* &A+)L)T)ES1

LETTE' %& +'E*)T1

$etter of !redit issued by the bank can broadly be classified as underE C

Sight letter of credit.

Usance letter of credit.

LETTE' %& -#A'ANTEE1

3;4 &)NAN+)AL -#A'ANTEE1

3<4 PE'&%'MAN+E -#A'ANTEE1

3=4 S )PP)N- -#A'ANTEE1

'1 University Of Sargodha

!ommitment "ntegrity <airness TeamCwork Service

'1 University Of Sargodha

)nspirin! Techno$o!ica$ )nnovation

L)ST %& T E +%MPET)T%' BAN,S

Oman "nternational ank S.#.O.*.

?rudential !ommercial ank $td. ank #lC<alah $td.

?resident and !hief :-ecutive ORGANIZATIONAL STRUCTURE %r!ani2ationa$

Operating and credit group

8etail anking *roup

:-ecutive !ommittee 8awalpin di9"slama bad North

?lanning and !orporate affairs 4uman 8esource

!orporate and .erchant anking

Systems and Operations

South " '; University Of"" Sargodha South ,est

A Typical Branch Hierarchy *eneral .anager9 8egional .anager

ranch .anager or !hief .anager

ranch !redit !ommittee

#ccount opening 0epartment

'> University Of Sargodha

<oreign :-change 0epartment

ills9 8emittance 0epartment

!ustomers Services 0epartment

'2 University Of Sargodha

Pesha(ar +antt Branch

(' University Of Sargodha

Sia$kot Branch ?aris 8oad% Sialkot.

+$oth Market Branch $a-midas Street% Barachi

S"kk"r Branch Sarafa a&ar% Sukkur

(> University Of Sargodha

Lt> -en> )mtia2

Lt> -en> 3'4 Carrar A2im

Mr> Shaharyar Ahmad

Bri! 3'4 M"hammad Shira2 Bai!

iii4 S#N'0 EP%S)T 9MA'-)N A++%#NTD

Tee+raphi(,Mai Transfer -TT,MT.:

emand raft 3**41

T0PE %& +'E)T +A'>