Askari Report

Internship Report:
ASKARI Commercial Bank
Table of Contents
Executive Summary...........................................................................................................5
CHAPTER 1.......................................................................................................................6
Introduction........................................................................................................................6
Banking History..............................................................................................................6
History of Askari Bank........................................................................................................8
Motivation of Askari Bank...............................................................................................8
CHAPTER 2.....................................................................................................................11
Mission Statement...........................................................................................................11
Vision................................................................................................................................11
Core Values......................................................................................................................11
Objectives of Askari Bank................................................................................................11
How Challenge will be delivered..................................................................................12
CHAPTER 3.....................................................................................................................13
Organizations Organogram.............................................................................................13
Management Style...........................................................................................................14
Corporate Banking and Financial Institution Group.....................................................14
Corporate and Merchant Banking Division...............................................................14
International Division................................................................................................14
Treasury....................................................................................................................15
Retail Banking Group...................................................................................................15
Investment Products Units.......................................................................................15
Assets Products Units..............................................................................................16
Credit Cards Division................................................................................................16
Operations and Credit Group.......................................................................................16
Systems and Operations Division............................................................................17
Electronic Technology Division.................................................................................17
Credit Division..........................................................................................................17
HR (Human Resource) Division...............................................................................18
Finance Division.......................................................................................................18
Audit Division............................................................................................................19
Regional Areas................................................................................................................20
CHAPTER 4.....................................................................................................................21
Code of Business Principles............................................................................................21
Corporate Philosophy...................................................................................................21
Customer Relationships...............................................................................................22
Employee Relationships..............................................................................................22
Technological Innovation..............................................................................................23
Ethical Values...............................................................................................................23
Corporate Citizenship...................................................................................................24
Growth..........................................................................................................................24
Corporate Achievement...............................................................................................25
Managerial Policies..........................................................................................................26
Financial Policies.........................................................................................................26
Source of Funds.......................................................................................................26
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Use of Funds............................................................................................................26
Procurement Policies...................................................................................................27
Marketing Policies........................................................................................................27
Promotional Policies.....................................................................................................28
Lending Policies...........................................................................................................28
Personal Policies..........................................................................................................29
CHAPTER 5.....................................................................................................................30
Departments....................................................................................................................30
General Banking Departments.....................................................................................30
Account Opening Department..................................................................................30
Remittance Department...........................................................................................34
Cash Department.....................................................................................................35
Clearing Department................................................................................................36
Online Banking.........................................................................................................40
Lockers.....................................................................................................................41
Foreign Trade Department.......................................................................................41
Credit Department........................................................................................................48
The Nature of Department........................................................................................48
The Basis of Credit...................................................................................................48
Types of Credit.........................................................................................................49
Types of Credit Instruments.....................................................................................50
CHAPTER 6.....................................................................................................................52
Products and Services.....................................................................................................52
Deposits.......................................................................................................................52
Current Account........................................................................................................53
Saving Accounts.......................................................................................................53
Advances......................................................................................................................53
Funded facilities........................................................................................................53
Non- Funded facilities...............................................................................................53
Other Products.............................................................................................................54
Personal Finance......................................................................................................54
Mortgage Finance.....................................................................................................54
Business Finance.....................................................................................................54
ASKCar(Car Finance)..............................................................................................55
ASKCard...................................................................................................................55
Traveller Cheques....................................................................................................55
ASKPower................................................................................................................55
Value Plus.................................................................................................................56
Complimentary CIP and RAWAL Lounge Facilities.................................................56
Agriculture Finance...................................................................................................57
Kissan Farm Mechanization.....................................................................................58
Kissan Farm Transport finance................................................................................58
CHAPTER 7.....................................................................................................................59
SWOT Analysis................................................................................................................59
Strengths......................................................................................................................59
Leading Private Sector Bank....................................................................................59
Automatic Operations...............................................................................................59
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Full Day Banking......................................................................................................59

ATM Network............................................................................................................59
Customized Solutions...............................................................................................59
Customer Oriented Banking.....................................................................................60
Electronic Banking....................................................................................................60
Electronic Funds Transfer........................................................................................60
Phone Banking.........................................................................................................60
Ethical Concerns And Public Image.........................................................................60
Weaknesses.................................................................................................................60
Not Highly Automated...............................................................................................61
Manual Book-Keeping..............................................................................................61
Low Job Satisfaction.................................................................................................61
Lack of Specialization...............................................................................................61
Centralization............................................................................................................61
Lack Of Training Facilities........................................................................................61
Opportunities................................................................................................................62
Threats.........................................................................................................................62
High Employees Turnover........................................................................................62
High charges............................................................................................................62
Less attractive rate of return.....................................................................................62
Stiff Competition.......................................................................................................63
Less Experienced Staff.............................................................................................63
CHAPTER 8.....................................................................................................................64
Financial Analysis............................................................................................................64
Balance Sheet Horizontal Analysis..............................................................................65
Balance Sheet Vertical Analysis...................................................................................66
Profit & Loss Account Horizontal Analysis...................................................................67
Profit & Loss Account Vertical Analysis........................................................................68
Ratio Analysis...............................................................................................................69
Return on Assets......................................................................................................69
Advances to Deposits Ratio (CDR)..........................................................................70
Return on Equity (ROE)...........................................................................................71
Share Information.........................................................................................................72
Earnings per Share (EPS)........................................................................................72
Analysis....................................................................................................................72
CHAPTER 9.....................................................................................................................73
Internship Activities..........................................................................................................73
Branch Level Hierarchy................................................................................................73
Internship Experiences................................................................................................74
First Week.................................................................................................................74
Second Week...........................................................................................................76
Third Week...............................................................................................................78
Fourth Week.............................................................................................................80
Fifth Week.................................................................................................................83
Sixth Week................................................................................................................84
Difficulties Faced..........................................................................................................85
Conclusions and Recommendations...............................................................................86
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REFERENCE...................................................................................................................88
Published References..................................................................................................88
Online References.......................................................................................................88
Personnel References..................................................................................................88
Annexure..........................................................................................................................89
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Executive Summary
SBP has prescribed the Askari Bank Ltd. For me. I had completed my
internship in the Askari Bank abdali road. I worked at various department of
the bank. Such as In account opening department, accounts department,
cash
department
and
did
some
work
at
clearing
and
remittances
department. The working environment at Bank was very good. The staff was
very cooperative and friendly. I had learn a lot form the bank and observe
the marketing system of this bank i.e. how it works and to what extent it is
successful. I spent most of my time during internship in account opening
department, where I interact with people and know how to deal with
customer. And also about the working and procedure of the account opening.
I also stamped all the documents of account opening form; I dispatched the
account opening form in a file. Through this internship I learn about the
marketing system of this bank i.e. how it works and to what extent it is
successful. With this internship I enhance my intellectual skills. I deal with
customer and help those customers, who are confused, help them in such a
way by filling credit or debit slips. In cash department I sort out the cash
and count the cash. In accounts department I had filling different reports. I
also check the daily activity such as online, customer and GL. In clearing
department I clear the cheques, I stamped the cheques. Maintaining good
relationship with the customer has polished my interpersonal skills and
resolving customers Problems give them a feeling that the company
employees care for them. I used to maintain the record of each cheques
book and ATM issued both on the registered. I also used to place the
document on their proper file.
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CHAPTER 1
Introduction
Banking History
The word Bank is of a European origin and is derived from the Italian word BANCO,
which means a table or a counter. Bank is a financial institution licensed by a
government. Its primary activity is to lend money. Many other financial activities were
allowed over time. For example banks are important players in financial markets and
offer financial services such as investment fund The level of government regulation of
the banking industry varies widely, with counties such as Iceland, the United Kingdom
and the United States having relatively light regulation of the banking sector, and
countries such as China having relatively heavier regulation (including stricter
regulations regarding the level of reserves).
1947, banking in Pakistan was dominated by branches of British banks. The State Bank of
Pakistan, the central bank, was formed after partition in 1948. It assumed the supervisory and
monetary policy powers of the State Bank of India. In the period of 60s to 70s the emergence of
a number of specialized development finance institutions (DFIs) such as Industrial Development
Bank of Pakistan (IDBP) and the Agricultural Development Bank (ADB). These DFIs were
either controlled directly by the state or through the SBP, and were intended to concentrate on
specific priority sector lending. In 1974 all domestic commercial banks were nationalized by the
Government. The Pakistan Banking Council was established, which assumed the role of a
banking holding company but with limited supervisory powers. However, PBC was dissolved in
1997, leaving the SBP as the sole regulatory authority for banks and financial institutions in
Pakistan. Nationalization of the banking sector led to pet projects. The the branch network of
NCBs also proliferated in an effort to provide banking services to all regions/territories of the
country, often with disregard to the viability or feasibility of such expansion
The banking sector is categorize in different categorize central commercial industrial

and investment bank. Central bank is banker of all banks and regulates the monetary
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policy. Commercial Bank usually accepts deposits, makes business loans, and offers
related services. Agriculture banks provide the loan for agriculture.
BANK
Central bank
Commercial bank
Exchange bank
Industrial bank
Agriculture bank
Investment bank
History of Askari Bank

The banking sector has witnessed a dramatic change during the last ten years with the
development of Askari Bank, which is not only redefining priorities and focus of the
banks, but also threatening the domination of traditional players.
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The story begins with the incorporation of Askari Commercial Bank limited in Pakistan on
October 09, 1991, Askari Bank Commenced (begin) to operations in April 1992, as a public
limited company. The bank is listed on the Karachi, Lahore and Islamabad Stock Exchanges and
the initial public offering was oversubscribed by 16 times.
While capturing the target market share amongst the view banks, Askari has provided
good value to its shareholders. Its share price has remained approximately 12% higher
than the average share price of quoted banks during the last four years.
Askari Bank has expanded into a nationwide presence of 83 Branches, and an Offshore Banking
Unit in Bahrain. A shared network of over 800 online ATMs covering all major cities in Pakistan
supports the delivery channels for customer service. As on December 31, 2004, the Bank had
equity of Rs. 6.016 billion and total assets of Rs. 107.168 billion, with over 475,000 banking
customers, serviced by a total staff of 2,118.
Askari Bank is the only bank with its operational head office in the twin cities of RawalpindiIslamabad, which have relatively limited opportunities as compared to Karachi and Lahore. This
created its own challenges and opportunities, and forced as to evolve an outward-looking
strategy in terms of Askari market emphasis. As a result, Askari developed a geographically
diversified assets base instead of a concentration and heavy reliance on business in the major
commercial centers of Karachi and Lahore, where most other banks have their operational Head
offices.
Motivation of Askari Bank

While successfully penetrating the key domestic markets through strategic expansion and
business diversification they remain alive to the challenge emanating from the development in
the global financial markets; the opportunities and threats engendered by greater deregulation
and increased customer expectations. These provide them the impetus (moment) to make the best
use of available resources, including modern technologies, to meet the challenges ahead.
Historically, Askaris core marketing focus for its asset base has been the middle and
upper middle business houses (including wholesalers and manufacturers) operating in
the large urban centers of Pakistan, which are primarily oriented towards foreign trade.
This segment constitutes significant revenues to the bank. The liability side remains
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focused on the middle and upper middle class retired and serving government and
armed forces personal and mid-size business houses.
Their corporate banking division was established in April 1999 with the primary focus on
servicing large corporate and multi-national companies (MNCs). Benefiting from the
banks growing balance sheet size, this division B now gaining momentum and their
long-term aim D to develop it into an independent.
Strategic business unit (SBU) This would the bank to acquire, develop and
specialized abilities, and enhance their focus on serving the emerging needs of the
corporate clients.
With this branch network of 75 and further expected increase in future, the ATMs facility and
internet Banking, Askari Banks reach is ever increasing. In recognition of this reach, they have
set up a retail-banking group in July 2000, the mobile ATMs facility is first time started by
Askari commercial bank in 2005 dedicated to serving the urban consumer market; Askari is
committed to aggressively market this segment. The strategy is to provide their customers with a
basket of innovative products to meet their varying needs.
Askari Commercial Bank is the only Private Sector bank that has been approved by the
World Bank as a Participating Financial Institution for the US$ 200 million Line of Credit
sanctioned (authorized) to the Government of Pakistan for the Financial Sector
Deepening and Intermediation Project.
Askari's emphasis on further broadening its core foreign trade business translated into handling a
higher volume of Export and Import business of Rs. 36 billion registering a growth of 42% over
the previous year. This enhanced foreign trade business was secured due to excellent customer
services and efficient international settlement arrangements with our correspondent banks.
Askari Bank is operating throughout Pakistan. Most of the branches are connected
through our State of the Art, On-line Communications Network, which gives the bank a
competitive edge in providing instant services to its clientele. We also offer direct access
to the latest Foreign Exchange Rates through our Online Communications.
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CHAPTER 2
Mission Statement
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, maintain
High ethical and professional standards, with providing enhance value to all our
stakeholders, and contributing to society
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Vision
To be the leading bank in the region...
Core Values
The intrinsic values, which are corner stones of Askari corporate behavior, are:
Commitment
Integrity
Fairness
Team-work
Service
Objectives of Askari Bank

As Askari Bank looks ahead to the future by moving through the decade of the 1990's its
efforts are guided by a broad framework of corporate objectives, which are as follows:
Askari is committed to its identity of security & trust and will endure to uphold
this image at all the times.
It will endure to provide its customers with as many creative financial services
and products, as is required. As today customer demands a package of services
suited to his particular business, Askari plans to develop different and new
products to cater to the customer's demand. Askari bank has the strength to be a
market leader.
Bank will keep standing and by and develop, its human capital base. It is
planning to provide all the required training to its staff towards achieving a higher
level of professionalism. Askari will continue striving to build a strong, motivated
and dedicated work force where total commitment will be towards customer's
satisfaction and wealthy growth of organization.
Askari bank will endure to provide a competitive return to its shareholders and
will strive to maximize its share value. The enhancement in its capital and returns
will be a continuous process. Askari bank is interested in being one of the most
financially viable institutions. So it lays great emphasis on gradual building up to
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a healthy deposit mix. In the years ahead, the bank will enhance its focus on
growth through operational efficiency, creating strategic alliances developing
well-structured networking system innovating new products, enhancing marketing
and sales efforts improving customer service, achieving greater employee
motivation and providing the best value to its stakeholders - will make it a leader
in the corporate world.
How Challenge will be delivered

BOARD OF DIRECTORS
These objectives and guiding mission will be achieved through
Focused objective
Winning as a team
Excellence in delivery
President and Chief
Executive
Relentless quality
Upward rising sales
Executive Committee
Corp. Banking &

Fin. Inst. Group
Operating and
credit group
International
Credit
Rawalpindi
/Islamabad
Treasury
Electronic
Technology
North
Corporate and
Merchant Banking
Systems and
Operations
Internal Audit
Regions
Retail Banking
Group
Asset
Products
Investment
products
CHAPTER
3
Lahore
Credit Cards
Planning and
Corporate affairs
Human
Resource
Finance
Organizations Organogram
Data Reporting
East
Legal Affairs
South I
South II
West
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Management Style
The bank basically works under three groups named as:
1. Corporate banking and financial institutions group
2. Retail banking group
3. Operations and credit group.
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Corporate Banking and Financial Institution Group

This Group is responsible for serving the needs of large corporate clients in public and
private sector, managing correspondent banking relationships and undertaking money
market transactions. The Group is organized in three divisions namely
Corporate and Merchant Banking Division,
International Division
And Treasury.
Corporate and Merchant Banking Division

This Division is engaged in provision of financing facilities to large corporate clients
including multinationals. Principal activities include syndicated loans, guarantees, and
working capital finance, underwriting and advisory services. The Division has played an
important role in providing development finance for the modernization and expansion of
the country's core industries. Credit risk is well diversified with exposures in sectors like
fuel & energy, chemicals, textiles and fertilizers. Three units have been set-up at
Karachi, Lahore and Rawalpindi for sales and operations, which are supported by
centralized marketing from the Head Office.
International Division
Mainly responsible for managing correspondent banking relationships and planning
overseas operations, the Division plays a vital role in extending foreign trade
transactions support to the branches. The Bank became a member of SWIFT in the
Year 2000 and is also a contributor to the equity of Pakistan Export Finance Guarantee
Agency Ltd With a network of 167 correspondents spread over 95 countries worldwide;
the Bank continued to reinforce its leadership position in trade finance, transacting
business of over Rs. 70 billion, during this year. Through the concerted efforts of this
Division, we are a participating Bank under the "Pakistan Trade Enhancement.
Facility" of the International Finance Corporation and our customers are entitled to avail
of the "Political Risk Guarantees Scheme" extended by the Asian Development Bank.
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Treasury
Responsible for managing Banks liquidity and foreign exchange transactions, our
Treasury in one of the most active in the market. Through reported transactions,
purchase of Government paper and foreign exchange trading, the Division adds
substantially to the Bank's sustained earnings.
Retail Banking Group

Retail banking group was formed in 2000, this group is responsible for serving the
needs of the retail market. Focusing on individual consumers and small and medium
size enterprises, for purpose of product differentiation, the group is managed in three
business arms.
Investments products unit,
Asset products unit,
The credit cards division.
Investment Products Units

Responsible for developing and managing brands which serve the investment needs of
the consumer market, this unit focuses on deposit mobilization, provision of value added
services based on modern technology and undertaking the centralized marketing and
advertising for the Bank. This unit is also actively involved in the acquisition business
and has signed-up over 300 merchants nation-wide which offers shopping discounts to
the Bank's Privilege Card members.
Askari Bank's Value Plus is a unique deposits account, which offers handsome monthly
profits, accidental insurance cover, partial liquidity on all time deposits and free Privilege
Card membership. The Unit is also administering the sales and distribution, including
arrangement for strategic partnership alliances for Askari- i-Net Banking, the first
internet banking in Pakistan, which allows routine banking transactions from any where
in the World, round the clock, over the internet.
Assets Products Units
This Unit is engaged in the development and management of retail credit schemes. The
consumer market in Pakistan has not only grows exponentially over the last decade or
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so, but the needs of this segment have become extremely diverse. In order to sustain
competition, it is but imperative to continue offering innovative consumer credit
schemes. With the launch of Askari Bank's Personal Finance an Askar (auto-loans), this
unit is emerging as a significant contributor to the Bank's loan growth. The unit also
administers the first e-commerce banking solution in Pakistan, under the brand name
ASK-IBL online. This is a b2b automated credit transaction module, offering
merchandise credit to retailers on goods purchased form one of the largest distributors
in the country. Strong collection and prudent risk management policies have restricted
delinquencies to very low levels.
Credit Cards Division
This Division manages Askari Master Card brand and is headquartered at Karachi. With
a new fully automated transaction processing system, the brand was re-launched in
2001, supported by an aggressive advertising campaign and strong sales team network.
The product now has portfolio of nearly 20,000 cards, in less than one year. The brand
is accepted worldwide and over 3,000 locations in Pakistan.
Operations and Credit Group

A support function group mainly responsible for development of systems and
procedures, process re-engineering, automation and credit management. The group is
organized in three divisions,
System and operations division
Electronic technology divisions
The credit division
Systems and Operations Division

This group has been instrumental in development of procedures and manuals for
various operating requirements of the bank. After careful mapping of the existing
process flows, the division recommends automation and re-engineering requirements.
To improve transaction efficiencies the division is active in providing equipment
procurement support and development of new branches. The protection of fixed assets
of the bank is also managed by the by this division, as directs function. During year
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2001, the division has proposed several cost cutting initiatives based upon improvement
of our existing procedures and documentation reduction. Seven new branches have
been opened during this year. The division successfully implements the model branch
concept during 2001, which has been proved to be a milestone towards improving our
customer service standards and achieving process uniformity with optimum resource
utilization.
Electronic Technology Division
This division operates as the backbone for all operational functions in the bank.
Responsible primarily for the development of banking software and provision of
computer hardware to all business units, the division also engaged in the development
of technology based value added customer service products. The division has helped
the bank in playing the pioneering role in offering Internet banking service e-commerce
solution and on-line banking. The division provides online real time branch connectivity
and has full-automated transaction processing support programmers in the place. The
division is focusing on use of data-warehousing technology to enhance the relationship
management program of the bank.
Credit Division
Providing extensive support to branches for credit administration, control and
monitoring, the division has played a pivotal role in helping the bank achieve a
remarkable loan growth of 31%, with well diversified risk exposures. Most of the loans
are of short-term trade financing on a secure and self-liquidating basis. The division has
a special assert management team, which is responsible for ensuring low ratio of bad
debts, effective monitoring of delinquent advances and close follow-up of recoveries.
Bank's head office credit committee, reviews the credit quality and pricing on regular
basis not only to ensure healthy credit growth but also the management of bank's risk
assets in almost prudent and profitable manner
Taking into account the expanding branch network and the increasing customer base,
credit administration was strengthened by decentralizing the delegation of lending
authorities at the regional and area management level.
The decentralization has benefited the bank and its customer tremendously as the new
arrangements now provide for faster credit delivery, focused credit development, and
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more effective monitoring and controls. Further steps are being taken to streamline
credit appraisal procedures and training to credit officers at all levels.
HR (Human Resource) Division
Strategically, perhaps the most important division at the head office is responsible for
human resource management, including recruitment staff training and evaluation. The
division also handles matters relating to administration. This division operates on future
oriented strategy focusing on employees personal and professional growth.
Staff development activities are geared to enhance their capabilities for applying the
knowledge and facts towards development of practical situations. Under our human
resource management policy, we develop and groom our management personal for
positions of greater responsibilities analytical, interpersonal, conceptualized and
specialized skills to enable them understand cause-and-effect relationships and to think
logically.
Staff is given on the-the -job as off-site training in diverse areas of banking and
management. Our hiring philosophy is based upon meritocracy and selecting the right
person for the right job. We lay greater emphasis on employees honesty and integrity
besides technical competence. Candidates are selected through well-defined and
systematic selection procedure.
Finance Division
Responsible for bookkeeping and accounts, this division at head office, prepare all
financial return and the MIS through its management-reporting wing. The division is
actively involved in preparing market comparative analysis, consolidation of bank's
budgets, its monitoring and constant review of various financial indicators.
Finance division works as the backbone for the bank's operations. The division, which
reports directly to the president and chief executive of the bank, has been instrumental
in preparation of banks business plans and future strategies. The budgetary
performance are constantly reviewed and through a sophisticated " monthly
performance report which is a computer based program, the division provides feed
back to the senior on strategic issue like reasons for budgetary variance and methods to
arrest negative performance factors.
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Preparing the bank's annual accounts and coordinating external audit is also a direct
function of the finance division. Through the dedicated efforts of staff at this division, the
bank has been winning various awards foe the best presentation of the annual accounts
and also the management has also been able to monitor and review the bank's
performance in proactive manner.
Audit Division
The audit division reports directly to the board through the executive committee, which
is also the audit committee. The audit division is completely independent of the
management and is responsible for checking and reporting on the management
compliance with the boards policies and directives, as also the prudential regulations
and other directives of the SBP. However their role is not intended to just that of fault
finding; but also guiding and assisting branches in improving their operations.
The division is responsible for evaluating every aspect of the bank's operations with the
goal of improving the effectiveness of risk management and internal control. There is
also a regional audit function attached to each area office; the nature of this business is
of more quality assurance rather than strictly audit. The regional audit report to the area
manager, and assist them in ensuring that there is proper compliance with all the
relative directives, and also that customer service standards are maintained and
improved, at the branches in the area.
Regional Areas
The system of regional and area offices has been introduced since 1999 for effective
supervision and control of branches. The scope of the system also spans the
development and management of bank's business and activities, on a regional basis.
The bank's branch network has been divided into 6 regions:
1) North region
2) Comparison of Islamabad and Rawalpindi area and the north area.
3) Central region
4) Comprising of Lahore and East area.
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5) South region: and

6) West region
A process of effective decentralization has been implemented, with delegation of
authority and greater responsibility and accountability. Under this system the regional
heads have the primary responsibility for business development, profitability
productivity, operational efficiency and credit quality.
The system helps the customers through quick decision-making and fast product
delivery. It has now enabled the bank to further expand and diversify its geographical
reach and business activities.
CHAPTER 4
Code of Business Principles
Askari code of business principles is to:
Deliver solutions that meet customers financial need;
Build and sustain a high performance culture;
Build trusted relationships with all shareholders;
Build and manage the banks portfolio of businesses to achieve strong and
sustainable shareholder returns; and
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Create and leverage strategic assets and capabilities for competitive advantage.
Corporate Philosophy
The Challenge... to bring a dream to life
From knowing Askari customers' requirements to understanding employee needs,
from utilizing modern technology to making responsible social contributions, from
enhancing stake-holders' value to practicing corporate ethics, Askari is continuously
and consistently striving to address newer challenges with a single motivation - the
power to inspire and be inspired. Organizational goal and strategy define the purpose
and competitive techniques that set it apart from others organizations. Goals are often
written down as an enduring statement of company intent.
A strategy is the plan of action that describes the resource allocation and activities for
dealing with the environment and for reaching the organizational goal. Goals and
strategies define the scope of operations and the relationship with employees, clients
and competitors.
With over 14 years of experience in trade finance and an extensive international branch
network, Askari Commercial Bank is committed to help the customer succeed in every
competitive environment. To keep pace with changing needs, ACBL constantly review
its comprehensive cash, trade and treasury products and services, ensuring that a full
range of flexible and innovative services is always available for the customer wherever
they trade.
Customer Relationships
"Before we discover, we must explore"
Knowing Askari customers and their needs is the key to Askari business success. Askari products
and services are structured to touch and improve the quality of lives of all segments of society.
Service quality standards are designed and monitored to ensure a consistent and convenient
customer experience. Askari client relationship managers are well equipped and well trained to
provide most efficient and personalized service to each and every customer. Askari products and
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services are as diverse as Askari market segments. Askari have structured and syndicated
financing arrangements, working capital finance, Balancing-Modernization Replacement (BMR)
facilities, financing of international trade, consumer credit, small business loans, credit cards and
unparalleled investment products for the individual saver. Askari Bank is proud of the pioneering
role in providing the most modern technological services to its customer base, which today
exceeds 150,000 relationships.
Employee Relationships
"Unusual effort on part of the employees who are apparently
ordinary workers is one of the key indications of a superior
enterprise"
Askari staff is Askari most valuable asset. The human resource philosophy at Askari
Bank focuses on multi-talent hiring, professional grooming, requisite training and
meritocracy based reward system. Askari lays great emphasis on the development
and nurturing of "Askari Culture", a cohesive teamwork, where each relies on the
strength of the other and together they achieve common objectives.
Staff welfare has always been a priority. New initiatives like hospitalization
plan, car buy-back facility and home loan insurance have added new dimensions to
the staff-care policy and motivated them to out-perform Askari competitors.
Employee productivity enhancement is organized through extensive in-house
and external training programs. Askari continue to offer opportunities for people to
develop their knowledge, skills and personalities, thus ensuring greater selffulfillment and progression in the organization.
Technological Innovation
"Modern science is not an option, it is an obligation
Technology is rapidly changing the way Askari think, act and does business. It has
played a pivotal role in enhancing customer expectations, particularly with respect to
speed and quality of service.
Askari enjoy a strategic competitive advantage over all domestic players by virtue of
Askari leadership in technological innovations. Askari have fully automated
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transaction-processing systems for back-office support. Askari branch network is

connected on-line real-time and Askari customers have access to off-site as well as
on-site ATMs, all over Pakistan.
Askari Phone Banking service and Internet Banking facility allows customers to enjoy
routine banking services from anywhere in the world, 365 days a year, 24 hours a
day. Askari have also pioneered commerce venture in Pakistan through a major retail
distributor.
Askari qualified and experienced technology team is now focusing on data
warehousing to enhance the Customer Relationship Management (CRM) program
Ethical Values
"Professionalism without integrity is like a book without pages"
Because the right may not always be obvious, Askari must be guided in every action
by a set of well-defined values, governing Askari decisions. Askari understand that
its commitment to satisfy customers needs must be fulfilled within a professional and
ethical framework. Askari subscribe to a culture of high ethical standards, based
upon development of right attitudes.
The following primary core values provide the guiding principles for Askari corporate
behavior:
Commitment
Integrity
Fairness
Team-work
Service
As part of Askari internal communications program, these core values are inculcated
in Askari employees through internal memos, posters and most importantly leading by
example.
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Corporate Citizenship
"The greatest of life's pleasures are shared"
Askari role as a responsible corporate citizen is as important to ACBL as the

products and services they offer.
Askari have made useful contributions in the areas of sports, culture, poverty
alleviation, health & medical sciences, education and scientific research.
Askari was one of the co-sponsors of the 9th South Asian Federation Games,
held at Islamabad in the Year 2003. Askari have also sponsored various sports
tournaments at both amateur and professional level.
Askari contributions to the NGOs dedicated to the treatment and welfare of the
blind is a ray of hope in the darkness. Askari have made donations to the
drug-addiction control programs and Askari efforts to help support Aids
Awareness programs and contributions to the mental and social welfare of
women and children have won much acclaim.
Askari participated in IUCN Water conservation initiative and have helped in

creating better understanding about the country on the international platform
by cosponsoring the first interactive encyclopedia on Pakistan.
Growth
"There is no sin punished more implacably by nature than the sin of
resistance to change"
Askari live in a moment of history where everything is changing so fast that Askari begin to
see the present only when it is already disappearing
Askari customer needs are changing and their expectations are growing. Technology is fast
proliferating the distribution channels and now banking services can be accessed from
multiple contact points. Askari believe that balanced growth is the key to survival in today's
global banking environment.
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From a humble beginning with just 7 branches in 1992, today Askari enjoy a network
of 73 outlets in Pakistan, spread across the country. A network of self-service ATMs
supports these outlets.
Askari total assets now exceed Rs.50.9 billion and Askari have over 17 products and
services to match Askari customers' individual needs. Bank's equity base stands at
Rs. 2.58 billion with 20% growth over the last 5 years. The human resource capital
of the bank today exceeds 1,200 employees. As part of Askari growth strategy Askari
is now extending Askari banking services to the remote and rural areas.
Corporate Achievement
"Winning isn't everything, it's the only thing.
Amidst tough competition, Askari efforts to go an extra mile in providing superior
services to Askari customers have been acknowledged at the national as well as
international levels. These acknowledgements serve as a great source of
encouragement and appreciation at one hand and inspire ACBL to perform even
better, on the other.
The Global Finance Magazine has honored Askari with the The Best Bank in
Pakistan award. Askari won the Euro money and Asia money awards as early as
1994, 1995 and 1996. Askari have Al+, the highest possible credit rating, for the
short-term obligations, and Askari long-term rating stands at AA. Askari won the
prestigious "Best Presented Annual Accounts" award from the Institute of Chartered
Accountants in Pakistan, and The Institute of Cost and Management Accountants,
Pakistan, for the services sector, for 2000. Askari have also received prizes during
the last four years from the South Asian Federation of Accountants (SAFA) for the
"Best Presented Annual Accounts" for the financial sector, in the SAARC region.
Askari was the first bank in Pakistan to offer Internet Banking services and b2b ecommerce solutions for merchants looking to purchase on credit.
Managerial Policies
1. Financial policies
2. Procurement policies
3. Marketing policies
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4. Promotional policies
5. Lending policies
6. Personal policies
Financial Policies
The financial policies of any bank are the most important policies through which the
whole banking activity is conducted. These policies are primarily conducted on:
Source of funds
Use of funds
Source of Funds
The bank finance policy is acquiring funds from the following sources:
Deposits of account holders.
Interest on advances and loans granted to the borrowers.
Income and commission from the services provided by the bank.
Bank open various types of accounts for its customers Services are provided for
earning.
Interest income and commission bank providing the services to its customer.
Use of Funds
After the acquisition of the funds their acquisition becomes necessary. The bank seeks the best
way for making investment to get more profit with the maximum security. The bank has an
investment portfolio in which it allocates its funds for crediting to borrowers, investment in the
stock market, investment in the real estate property etc. for allocation of funds a bank has to
follow some banking policies and the prudential regulations of SBP these are:
1. A bank has to maintain liquidity with central bank, i.e. 25 %of its total deposits.
2. A bank cannot invest all of its funds otherwise it will be difficult to meet urgent
needs.
A substantial part of funds is received from interest on loans and advances. Before
granting a loan the bank analyzes and observes the borrower and conduct a complete
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ratio analysis. Bank prepares credit line for this purpose the major thing is granting an
advance is the security offered by the borrower and its actual market value.
Procurement Policies
Procurement policies are more concerned with manufacturing organizations. In bank
industry that is service industry procurement means the procurement of funds from
various sources such as deposits. It involves attracting and holding the funds of the
depositors. After the acquisition of funds, the bank invest the acquire funds. One
alternative is to lend its money and earned interest markup or invest in govt. securities
etc. as already mentioned in the above paragraph the major sources of funds for a bank
are the deposit of the general and the other sources of income includes interest or
markup charges received for various services offered by the bank to its clients.
A bank tries to attract maximum no. Of accounts so that it can increase its deposits and
these lending ability. In order to get maximum no. of accounts the staff of the bank must
be efficient as compared to the other banks and the manager of the branch must take
personal interest in attracting deposits. Good quality of the service is the key to
success.
Marketing Policies
Marketing policies are also one of the most important policies because they are related to the
growth of the organization. Marketing for a bank would mean:
1. Creation of new product and services.
2. The bank marketing must be consumer oriented.
Following are the marketing policies of the ACBL.
a. Keeping the track of latest development in the world and incorporating the
latest and most modern equipment to make the banking procedures
simple and easy for the customers.
b. Development of products for the customers.
c. Giving good services and maintaining good relations with the customers.
These policies can be implemented by providing the right product and service to the
customer at the right place, at the right time, at the right price.
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It is necessary for the managers to keep in touch with consumers, observe their needs
and develop products, which meet their needs.
Promotional Policies
Public relation and advertising has assumed a great importance in the modern banking
business. As for as promotional activities are concerned, the main objective of the bank
is to inform the existing clients and other people about its new products or change in the
existing services. ACBL establishes its purpose through:
1. Direct contact with customers.
2. Relation with business organizations.
3. Community relations.
Lending Policies
Every bank has its own lending policies except for those, which are common for all the
banks, i.e. the policies, which are imposed on all the commercial banks by the SBP, are
known as prudential regulations. The lending policies of ACBL are as follows:
1. The bank only invests in those sound and viable projects, which have good rate
of return.
2. Bank prefers to advance loan to their account holders.
3. Loan is given to reliable person only.
4. No political loan is sanctioned by bank.
5. Any account holder can apply for running finance or demand finance. The
manger appraises the past record of account holder and his credit worthiness. If
he finds anything wrong he can refuse to sanction the amount.
6. The bank while taking security prefers govt. Securities to shares.
7. It also advances working capital loans.
Personal Policies
Personal policies have an important role in the success of an any organization. ACBL
have its proper personal policies. Good personal policies motivate the employees
towards hardworking.
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Following are the main personal policies of ACBL:

1. Selection of employees on merit
2. Selection of capable employees.
3. Attractive salary package for motivation of employees.
4. To train and develop the future management of the bank.
5. Every employee must have certain set of clearly defined duties
6. Effective communication at all levels of the organization.
CHAPTER 5
Departments
General Banking Department
Credit Department
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General Banking Departments

Banking procedures are divided between various departments. Different departments
do their jobs in occurrence with the bank policies. In ACBL each branch is divided into
various departments. Head of department manages each department & officials of the
branch follow procedures.
The departments working within a branch are as:
1. Account opening department
2. Remittances department
3. Cash department
4. Clearing department
Account Opening Department
Account Opening In-charge
Officer
Officer
Functions of Account Opening Department
Providing account opening form according to the customer's requirements,
Guide the customer about the requirements of the account opening and form
filling,
Check the forms whether they are correctly completed or not,
Preparing checklist,
Stamping on the form,
Maintaining account opening register,
Pasting of forms in register after release from general banking in charge,
Issuance of cheque books,
Issuance of accounts maintenance certificate,
Closure of account
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Verification of signature in case of cheque presented before releasing of account

opening from SS card is not yet scanned
Introductory References for A/C Opening

Introductory references As soon as a person opens an account with the bank, the banker customer
relationship is established. In such situation this is advisable the banker should not open new
accounts of unknown persons unless references regarding the integrity and responsibility of the
purposed persons are obtained from respectable parties.
Failure to exercise this care may result in serious consequences not only for the banker
concerned but also for the other bankers and general public. It is not sufficient to obtain the
reference but its genuineness must also be verified. Omission of this may have serious
consequences.
In practice we see that there is tough competition among bankers for procurement of deposits, so
to press a prospective new customer to find the desired reference may offend him, yet he is to be
welcomed by the banker as a source of fresh deposits. But these practical difficulties have to be
handled tactfully because the risk involved to carry out this requirement partially or wholly may
lead to undesirable results.
Precautions to Avoid Fraud
If preliminary necessary inquiries mentioned above are not made and account is
opened, it is possible that an undesirable person is provided with a chequebook to
defraud innocent people or the person being an undercharged bankrupt may put the
banker in difficult situation.
Safeguard against un-intentional Overdraft
Sometimes due to misreading of the balance an account may be inadvertently
overdrawn or the credit entry of customer is placed into the account of another person
by mistake who happens to have withdrawn that amount. in all such cases the amount
can only be realized if the person is man of integrity.
Inquires about customers
Have all necessary information with him regarding his Generally a banker is asked by another
banker to give his opinion about his customers financial position. Therefore, it is beneficial for
the both that the banker should customers.
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Proofs for Reasonable Care and Inquiry

Under section 131 of negotiable instrument act, 1881 a collecting banker is protected provided
he collects the cheques of his customers in good faith and without negligence. But if the banker
fails to make preliminary inquiries he may be deprived of statutory protection, being guilty of
negligence.
Account Opening Procedure and Precautions
Know Your Customers
The objective of knowing a customer is to have a fair idea about the identity, financial
resources, and general information about the customer at the time when the relationship
is established. A banker must have following information about the customer:
Customer name
Enter complete name as mentioned in original ID card /other business documents.
Nature of business /profession: if customer is of salaried class enter his employer name.
If the customer is a businessman, trader, sole proprietor, enters the business name, for
example Jamil Tradersetc.also enter the customers title/position and address of the
business/employer. Address with P.O.BOX is not acceptable. Similarly remarks like
Private Service, business are not acceptable, rather specify what type of
company/business the customer is associated with for example Manager Philips
Electrical Company.
Address
Enter the complete business/residential address. Within the brackets you may also
provide prominent address identification marks for ease of physically locating the
address.
Contact Numbers
Enter home, official, mobile, fax number and e-mail address (if available). Banker can
verify the number by giving the customer a courtesy call or by sending him an e-mail.
Other/ secondary/ mailing address
Some customer may volunteer their parents or siblings addressor second home
address or a mailing address other than a permanent address.
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Special instructions
Clear-cut special instructions must be obtained from customers. If the customer has not given
any special instruction specified column must be cancelled by drawing a line, as this column
must not be left blank in any circumstance.
Existing/other bankers
Almost most all the bankers usually have a banking relationship with another bank. In
case of customer who does not have an existing banking relationship, or does not want
to disclose the existing relationship, then it is strongly recommended that at least for
some time this particular account must be kept under observation.
Types of Accounts
Accounts for General Customers
Minor account
Illiterate person account
Joint account
Account for Special Persons
Proprietorship account
Partnership account
Limited companys account
Accounts of club societies and associations
Agents accounts
Trust account
Liquidators account executers and administrators account
Remittance Department
Functions of remittances department
The functions of remittance departments are to handle with the following instruments:
Pay Order
Demand Draft
Pay slip
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Telegraphic Transfer
Payment of Remittances
Cancellation of pay order & demand draft
The remittance department deals with the transfer of money from one place to another.
This department deals with the local currency transfer only. ACBL provides these
services to both customers & non-customers
Remittance can be made through:
1)
Instrument transfer
2) Electronic transfer
3) Mail transfer
Instruments of the Remittances Departments
Pay Order
Pay order issued from one branch only be payable from the same branch. It is normally
issued for payment in the same city. It is normally referred as banker's cheque
Get the application form.
Issue pay order after recovering cheques.
Do necessary vouchering.
Make entry in PO issue register.
All pay order shall be crossed" payees account only".
Charges on issue of Pay Order

Amount (Rs)
Less than 100,000
Above
100,000
Charges (Rs)
50
Nil
Duplicate Pay Order:
Check the record to insure that payment has not been effected.
Get application for issuing of duplicate PO.
Recover charges.
Issue duplicate pay order.
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Demand Draft
It is an instrument on demand for which value has been received, issued by the branch
of the bank drawn i.e. payable at some other place (branch) of the same bank. In case
of agency arrangement- demand draft can also be issued by one branch of the bank
payable to other branch of the other bank
E.g. DD issued by ACBL payable by MCB.
Charges on issue of Demand Draft
Amount (Rs)
1 - 10,000
10,000 100,000
100,000 - 1000,000
Over 1000,00
Charges (Rs)
25
50 or .1%
200 or .07%
1000 or .05%
PAY SLIP
The bank for settlement of its own payment issues pay slip.
No excise duty
No commission
Cash Department
All physical movement of cash in the bank is made through the cash department.
Normally cash department performs following functions
Receipt
Payments
Act according to any standing instructions
Transfer of funds from one account to another
Handling of ATM
Verification of signatures
Posting
Handling of prize bond
Cash receipt section

In this section the cashier in following manner receives cash:
Process of deposits
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Fill- up
deposit slip
Deposited on
Receipt
Customer
Cashier counts the

amount and fulfills
other requirements
Cash payment section

In this section honoring the cheque through following process makes
payment.
Process of payment
Cheque is
presented at token
counter
Cheque is recorded
& token # is allotted
Cancellation officer
cancels cheque
Cashier counts
the amount &
payment is
made
Two signatures on
back of the cheque
by customer
Posting is made
Clearing Department
Meaning of Clearing
The word clearing has been derived from the word Clear and is defined as a system by which
banks exchange cheques and other negotiable instruments drawn on each other within a specific
area and thereby secure payment for their clients through the Clearing House At specified time
in an efficient way.
1. Since clearing does not involve any cash etc. and all the transaction take place
through book entries, the number of transaction can be unlimited.
2. No cash is needed as such the risk of robbery, embezzlements and pilferage is
totally eliminated.
3. As major payments are made through clearing, the banks came manage cash
payments at the counters with a minimum amount of cash in vaults.
4. A lot of time, cost and labor are saved.
5. Since it provides an extra service to the customer of banks without any service
charges or costs, more and more people are inclined and attracted towards
banking.
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Clearing House
It is a place where representatives of all banks sit together and interchange their claims
against each other with the help of controlling staff of State Bank of Pakistan And where
there is no branch of State Bank of Pakistan the designated branch of National Bank of
Pakistan act as controlling member instead of State Bank of Pakistan
Membership Ceases
It ceases to be a scheduled Bank.

It is not able to meet its liabilities.
State Bank of Pakistan or Central Govt. prohibits it to receive fresh deposits.
Rules and Regulations of Clearing House
Timing:(Monday through Friday)

o 1st Clearing at 10:00 a.m.
o 2nd Clearing at 2.30 p.m.
Each bank will send competent representative to exchange the cheques.
Each bank is required to insure that all cheques and other negotiable instruments
are properly stamped and suitably discharged
An objection memo must accompany each and every cheque when return unpaid
duly initialed.
Each bank is required to maintain sufficient funds in the principal account with
SBP to meet the payment obligations.
The State Bank of Pakistan debit the account of each member of the
clearinghouse with the proportionate working expenses incurred on the operation
of clearing house. These expenses are very nominal.
Outward Clearing
The following points are to be taken into consideration while an instrument is accepted
at the counter to be presented in outward clearing:
The name of the branch appears on its face where it is drawn.
It should be stale or postdated or without date.
Amount in words and figures does not differ.
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Signature of the drawer appears on the face of the instrument.
Instrument is not mutilated.
There should be no material alteration, if so, it should be properly

authenticated.
If order instrument suitably indorsed and the last endorsees account

being credited.
Endorsement is in accordance with the crossing if any.
The amount of the instrument is same as mentioned on the paying-in-slip

and counterfoil.
The title of the account on the paying-in-slip is that of payee or endorsee

(with the exception of bearer cheque).
If an instrument is in order than our bank special crossing stamp is affixed across the
face of the instrument. Clearing stamp is affixed on the face of the instruments, payingin-slip and counterfoil (The stamp is affixed in such a manner that half appears on
counterfoil and paying-in-slip). The instrument is suitably discharged, where a bearer
cheque does not require any discharge and also an instrument in favor a bank not need
be discharged.
The instrument along with pay-in-slip is retained while the counterfoil is given to the
customer duly signed. Then the following steps are to be taken:
1. The particulars of the instrument and the pay-in-slip or credit voucher are entered
in the outward clearing register.
2. Serial no. is given to each voucher.
3. The register is balanced; the credit vouchers are balanced from the instruments
and are released to the respective departments against acknowledgement in the
register.
4. The instruments are arranged bank wise.
5. The schedules are prepared in triplicate, two copies which are attached with the
relevant instrument and the third is kept as office copy.
6. The house page is prepared from schedules in triplicate.
7. The schedules and house pages are signed by the house incharge with branch
stamp.
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8. The grand total of the house page is taken and agreed with that of the outward
clearing register.
9. The instrument along with duplicate schedule and house page are sent to the
main office.
However the amount is kept in float till final status of various instruments is known from
respective paying banks in second dealing.
The entry of the instrument returned unpaid is made in Cheques returned Register. If
the instrument is not to be presented again in clearing then a covering memo is
prepared. The covering memo along with returned instrument and objection memo is
sent to the customer who sent the same to his account.
Inward Clearing
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 inward clearing register (serial no. Instrument no. Account
no. Is written).
The instruments are sent to the respective departments
The instruments are scrutinized in each respect before honoring the same.
Outward Cheques Returned Unpaid:

These are the cheque returned unpaid by us in inward clearing due to some objections.
Inward Cheques Returned Unpaid:
These are the cheques retained unpaid to us which were lodged by us in Outward
Clearing.
Return of Cheques after Clearing House:
Suppose all cheques received in the inward clearing are passed and later on it is found
that a cheque should have been returned, in such cases, we contact the collecting
branch and request them not to make payment against the proceeds of the cheque
which was not returned unpaid by us in due time. the cheque with objection memo
along with a covering letter is sent to the collecting branch, making request to issue a
payment order in favor to balance the Cash-cum-day book we may debit suspense
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account sundry debtors with the approval of the manager. When the payment order is
received, it is lodged in clearing and suspense account, sundry debtors is adjusted
accordingly.
Special Clearing:
In addition to the normal clearing function at Clearing house it is mutually agreed to hold
an extra clearing at the clearing house on the particular day and time which is known as
special clearing it is arranged due to the rush of work arising out of say, more Holidays
declared by the Central Govt. at a time, but normally special clearing is he4ld on last
working day of our half yearly and yearly closing i.e. 30th June and 31st Dec. every
year.
Online Banking
Online banking means that the customer of ACBL can deposit / withdraw funds in / from
other branches of ACBL. Askari bank provides online facility to all its branches.
Online Charges
Amount of Deposits
Charges ( Rs)
25,000 or below
25,000 - 200,000
200,001 - 500,000
500,001 - 2000,000
Above 2000,000
50
100
250
500
750
Lockers
Askari bank offers facility of lockers to its customers. There are three sizes of
lockers available:
Charges
Size of lockers
Large
Medium
Small
Rent of locker (Rs) p.a.

2500
1500
1000
Foreign Trade Department

Foreign trade department deals in:
Foreign currency account
Exports
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Imports
Foreign Currency Account

Mainly this account deals in individual, personal and companies account
Criteria for Opening Foreign Currency Account
There are not hard and fast rules for becoming the Foreign Currency Account holder.
Bank wants only introduction of the Client and very little about the background. I.D card
is also not necessary, if someone has; well and good, otherwise no restriction will be
there for him.
Features of Foreign Currency Accounts
There will be legal protection for the account holders.
According to foreign exchange rules and regulation every citizen of Pakistan,

either within the Pakistan or outside the Pakistan, can open the foreign currency
account.
Resident firms and Resident Companies including investment Banks can open
Foreign Currency Accounts.
All foreign nationals and foreign Companies in Pakistan or abroad can open
Foreign Currency Accounts.
Opening of Foreign Currency Accounts in the joint names of residents/nonresidents is permissible. Foreign Currency can be deposited by:
Remittance received from abroad
Foreign Currency Notes
There will be no restriction and questioning to him about the currency, which he
wants to deposit that from where he got that money.
No Zakat will be deducted on these accounts; no Income Tax deduction, no

Wealth Tax deduction will be there.
These incentives reinforce and motivated the people to invest in foreign currency
accounts rather to keep the foreign currency idle.
Foreign currency accounts can easily be transferred from one person to another,
one place to another, with in the AKBL Branches or in other Bank.
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The account holder can transfer the funds freely, in any currency to any part of
the world.
Facilities
This account provides following facilities:
Traveling quota
Out ward remittances
In ward remittances receiving
To make remittances procedure flexible
Export
Usually the exporter does not rely on the credit of a banker in the country of importer,
and insist on a confirmation from a banker carrying on business in his own country.
Thus this department of a bank helps the exporters to settle down their financial affairs.
For exporting it is necessary for exporter to get export license from the chief controller of
import and export after registration.
Documents are required for the registration such as N. I. C. Card, income tax certificate,
bank certificate which shows that the exporter is his account holder and have a good
dealing with them. In response to the letter of credit exporter submit the following
documents to the negotiating bank.
Bill of exchange
Invoice
Bill of lading or Airway bill/railway receipt/truck receipt
Insurance documents
Packing list
Any other documents, if so required.
The negotiating bank will send the same documents to the issuing bank. In accordance
with the terms and condition laid down in letter of credit.
Foreign Bill Purchased (FBP)
Following requirements must be fulfilled before the purchase of Foreign Export Bills. Exporter
should be account holder of the bank. Bank issues the Form-E. Form-E should be filled correctly
and then bank authenticates the E-Form. Exporter goes to the custom authorities for custom
clearance. Shipping Company issues Bill of Lading or Airway Bill. Exporter should bring other
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documents like certificates of Origin, commercial invoice, packing list etc. Bank scrutinizes the
documents.
After fulfilling these requirements, bank purchases the export bill and makes payment for the
value of goods in Pak Rupee to the Exporter.
Lodgment
Lodgment means making the payment to exporter by bank against the purchase of bill. Before
the lodgment, bank records the export bill in the FBP register where name of exporter, importer,
the name of bank which open the LC, Tenor of bills maturity. Two types of rates are used in
evaluating the amount:
OD Buying rate/at sight rate
It is the rate of export bill, payment of which is to be received within 12 days from the date of
lodgment.
Usance rate
It is the rate payment of which is to be made at a future date, normally within 30, 60, 90, 120,
150, or 180 days.
Realization
Realization means receiving the payment from the foreign bank for the export of goods. AKBL
receive the credit advice from the treasury office situated in Karachi that the payment of the FBP
Number this receive. If the payment FBP is less than the amount it was lodged than remaining
amount will receive from the exporter.
Foreign Documents Bill for Collection (FDBC)
In FBP bank purchases the export bills from the exporter and makes payment to the exporter
before the maturity of that bill, while in FDBC banks collect the export bill on the behalf of
exporter on the date of maturity. In FDBC bank acts as a intermediary party. Bank gets little
amount of commission for the collection of FDBC. Like FBP exporter deposit all the important
documents of export bill to the bank, bank lodged this FDBC, it means bank record this export
bill in the FDBC register where name of exporter, name of importer, bank which open the LC,
Tenor, maturity date is written.
Advance Payment of Bills
This is another function which the export department of AKBL Multan branch performs. In
advance payment bank pay the amount of export bill to the exporter before the shipment of
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goods. For this purchase of bill bank gets more charges as compare to FBP. Mainly export deals
in:
Negotiation of documents
Sending the documents for collection
Pre-shipment financing
Post-shipment financing
Remittance against agent commission
Forward covered booking
Handling the documents for negotiation according to the UCP 500 (uniform
custom and practices)
Handling the documents for collection according to URR (uniform rules for
collection)
Submission of monthly returns to SBP regarding the export on form A-2/O-2
Import
Opening the letter of credit
Scrutinize the documents receive from flowing bank under letter of credit.
Account to UCP 500 and extending the credit facility to the importer informs FIM
(finance against imported merchandise) FATR (finance against trust receipt).
Arrange forward cover booking regarding import payments
Also arrange forward cover booking for letter of credit open other than ACBL
Submission of monthly returns to SBP regarding the import on form I
The international trade transaction, in which one country buys goods from other country, is
called import. Import and Export Act of 1950 governs the import trade in Pakistan. Previously,
the regulating body of imports was controller of Import and Export. But this function has been
shifted to Trade Development Authority. Foreign Exchange Departments of all banks are
restricted to work under the rules and regulations of government.
Import License and Registration
The individuals and firms who are interested to import goods from the foreign countries are
required to obtain import license. Import 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
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licensing authority. The importers can only get their merchandize cleared from the custom
authorities if they have the import license duly issued in their names. The import licenses issued
by the Import Trade Controller are required to be registered with the State Bank of Pakistan.
Contract of sale
After getting the license, the importer then negotiates with the exporter. When 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 credit
Foreign trade payment problems are mainly solved by a letter of credit. A letter of credit is issued
by the importers bank. If the guarantees payment to the exporter up to specified amount of
money provided the terms and conditions laid down the L/C are fulfilled. A letter of credit is a
commitment on the part of buyers bank to pay or accept draft drawn upon it, provided drafts do
not exceed a specified amount.
A letter of credit thus is a (I) written undertaking by an importers bank to exporters bank. (II)
That it will pay or accept draft drawn upon it up to a stated amount with a specified time. (III)
The payment will only be made to the exporter if he compliers with the terms of credit.
Parties to a letter of credit
There are four parties involved in letter of credit.
Account party: The buyer or the importer on whose account and request the letter of
credit is opened is known as account party or opener.
Issuing bank: The bank which issues or opens a letter of credit at the request of
importer is called issuing bank.
Exporter or seller: The seller or the party in whose favor L/C is drawn is the exporter.
He is also called beneficiary.
Negotiating bank: The paying bank in the exporters country, on which the draft is
drawn, is called negotiating bank or paying bank.
Opening of letter of credit

The main steps involved in the opening of the letter of creditor as follows:
Application for letter of credit
The importer will request with own bank or any other bank, which deals in foreign trade
transactions to issue a letter of credit in favor of the exporter. He will prepare an application on
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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.
Scrutiny of application
Before issuing a letter of credit, the bank will scrutinize whether the importer is of good financial
standing, possesses the import license issued by import control. Authorities, the amount available
covers the letter of credit applied for, market demand of goods, collateral offered to cover the
credit etc.
Cash margin
The bank asks the importer to deposit cash or securities with the bank. The bank depending upon
the credit worthiness of the importer decides the proper margin of cash or securities to be
deposited.
Issue of the letter of credit
The importer bank after being fully satisfied will issue a letter of credit in favor of the exporter.
The L/C may be sent directly to the exporter or the advising bank in the exporters county. In
such a case, the advising bank will inform the exporter about opening a letter of credit.
Shipment of goods
When the exporter receives L/C, he examines it to ensure that it conforms to the terms of
contract of sales. He then shifts the goods and presents all required documents along with the bill
to negotiating bank.
Role of negotiating bank
The negotiating bank after receiving all the documents and the bill from the exporter will
scrutinize them whether these conform with the terms of letter of credit. If the documents of title
accompanying the bill are in order, these will be sent to the importers bank for payment.
Liability of the issuing bank
On receipt of documents and the bill, the issuing bank will examine them. If the documents on
the face appear to be in order, the payment would be released by the bank. In 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 by importer to the bank
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First the importer pays all his obligations to the bank then the bank releases the documents. In
case of sight draft, the importers bank pays the amount on the same day charging the importing
customers account. In 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 exporter
The exporter can obtain payment from the negotiating bank by discounting the draft (L/C)
immediately after shipping the goods and obtaining shipping documents.
Submission of Monthly Returns
It includes reporting of Form-M and Form-E to SBP.
Reporting of Form-E
Every Exporter is required to submit a declaration to custom authorities for goods exported. This
declaration is submitted on prescribed Form-E in quadruplicate, which is certified by authorized
dealer. Four copies of Form-E are maintained. Form-E is reported to SBP at the end of the
month, in which the amount is realized. There is a prescribed Performa used for the reporting of
Form-E. It includes the reporting period, currency, Serial No. of Form-E, amount, Code No. of
country and commodity.
Reporting of Form-M
Every foreign bank deducts some charges from the value of goods. It is for miscellaneous
purposes like foreign bank charges or foreign agent commission. Form-M is used to declare this
outflow of foreign currency. At the end of the month of realization of the amount, Form-M is
reported. It includes the list of Serial No, amount and purposes of every Form-M.
Credit Department
Although the study of money is important for the understanding of the way in which our
economic system operates, we must recall this point that most exchange transactions in this
system are carried on today without the use of actual money, i.e. Those are carried on by means
of credit and credit instruments rather than money. While money still forms the basis of credit
and deferred payments, it is necessary to examine the nature of credit operations, and the
instruments and institutions trough, which these operations are carried on, in considerable detail.
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The Nature of Department

On the surface, credit operation appears to be of many kinds, but they all have a
fundamental similarity. In credit transactions, one party to the transaction, the creditor,
turns over to the debtor a certain amount of money, commodities or services at the
present time and relies on the debtor to repay an equivalent amount, usually the money
in the future plus interest at some future time.
The Basis of Credit
There has been much discussion, concerning the essential basis of credit or borrowing
operation. Some writers on the subject have stoutly insisted that confidence is the basis
of all grants of credit that if one did not have confidence that the borrower would repay a
loan one would never think of making the loan, save on grounds of friendship of
philanthropy. Others have held property, rather than confidence is the basis of all
genuine credit transactions. Some insist that character is the essential factor, while still
other writers have indulged in a propensity of alliteration by stating that the bases of
credit are character, capital and capacity; or the man and the means; or reliability and
resources.
Types of Credit
The verities of credit may be classified in numerous ways- according to the status of eh
debtor, according to the status of the creditor, according to the time for which the credit
is granted, and so on; but the most fruitful classification usually indicates the use to
which the credit is put.
Public and Private Credit:
In the first place, a distinction is usually made between public and private credit. Public
credit comprises the promises to pay off governmental bodies, that is, their acquisition
of goods in the present in return for promises to pay in future; and private credit refers to
the promises to pay all non-government debtors. Among the sub-classes of private
credit, the most significant are band credit, commercial credit and consumption credit.
Band Credit:
In Comprehends all kinds of promises to pay off banking institutions, including demand
deposits, time deposits, notes, bankers, acceptances, cash, letters of credit,
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debentures, and bonded obligations. Frequently, the term bank credit is restricted in use
to refer only to the demand deposit liabilities of the commercial banks, and one must
constantly be on guard to recognize the employment of the term in this restricted sense.
As a sub-class of bank credit, central bank credit is of outstanding importance in
modern monetary system it includes the central bank's circulating notes and its deposit
liabilities, the better consisting chiefly of the reserve balances of the commercial banks.
Investment Credit
The credit structure, business if found upon examination to consist very largely of two
forms of credit. Investment credit is extended through loans, the proceeds of which are
put into the fixed assets of a business enterprise. If the owners of business cannot
themselves furnish all of the capital necessary for investments in land, buildings and
equipment. Obviously what they need is loans of capital running over a considerable
period of years.
Commercial Credit
In addition to seeking credit in long term investment in fixed assets, most business
periodically ask for credit in the form of short term loans. Commercial credit is business
supplier for current business operations, such as manufacturing and marketing of
goods. It often take more business capital than business can themselves supply to pay
for raw materials, to make the outlays for wages and to carry inventories of finished
goods until they can be converted into cash. To help finance such operations short-term
loans usually running from thirty days to six months are negotiated. Commercial loans
like investment loan must ultimately be paid out of accumulated earnings of a business.
But if the business earnings are of immediate future, such loans can be safely made
and promptly paid. Commercial loans are base done quick assets, such as raw material
and finished goods, which are in constant process of liquidation and thereby provide the
cash with to extinguish loans.
Consumers credit and producers credit
Consumers credit involves advance of purchasing power for economic goods to
consumers for consumption purposes. Its distinguish characteristic lies in the factor that
the things acquired by the debtors as result of the loans are not supposed to furnish
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them with the means of repaying the loans the loan must be repaid out of the income of
the borrowers.
Types of Credit Instruments
There are various types of credit instruments. The more important credit instruments are
as follows:
Bills of exchange:
A bill of exchange is define by negotiable instruments act as "an instrument in writing,
containing an unconditional order, signed by the maker, directing a certain person, to
pay certain sum of money, only to or to the order of a certain person, or to the bearer
the instrument".
Cheque:
A Cheque is defined a bill of exchange drawn on specific banker and not expresses to
be payable otherwise than on demand."
Cheques may be of various types, which are as follows:
Bearer cheque
Order cheque
Open cheque
Crossed cheque
Marked cheque
Drafts:
These are bills of exchange issued by a banker on his branch office. Banks draft like
bills of exchange, are of great importance in the financing of trade, especially foreign
trade
Promissory note:
It is an instrument in writing containing an unconditional undertaking, signed by the
maker, to pay the certain sum of money only to or to the order of a certain person to the
bearer of the instrument. a promissory note in order to be the so, must fulfill all
conditions.
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CHAPTER 6
Products and Services
The product & services of Askari commercial bank limited are developed keeping in
view the customers needs & wants, & the expectation that the customer attaches with
its financial institutions.
A product ACBL includes all those services which customer normally required for
effectively managing his business.
ACBL offers the following financial services to its customers.
Deposits
Advances
Products
International banking services
Agency services to customers
Deposits
One of the basic functions of commercial banking is to receive deposits. ACBL accepts
deposits in both local & foreign currency.
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Local currency deposits
Current Account
PLS Saving Account
Term Deposit
Notice Deposit
Askari Faida Account
Askari Special Deposit Account
Value Plus Saving Account
Askari Advantage
Current Account
A current account is a running & active account, which may be operated upon any number of
transactions during a working day. The banker undertakes to repay these on demand & therefore
theses accounts are called demand deposits.
Transaction fee
The bank charges no transaction fees if the minimum balance requirement is met. However, if
the average balance falls below the min. balance then the fees is charged at the rate of Rs. 10 per
transaction.
Saving Accounts
The saving account is usually opened by lower or middle class people so that they can meet their
future contingencies, as the objective of such account is to promoting the habit of thrift among
people, the bank impose certain restrictions on withdrawals from the saving accounts.
Transaction fees
Transaction fees are charged of Rs. 20 per transaction if the min balance is not met.
Advances
Advances are major sources of earning of income for commercial banks. Banks attracts surplus
balances from the customers at low interest rates & makes advances at higher interest rates to the
individuals or business firms.
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ACBL offer these facilities in two forms:
Funded facilities
Non- Funded facilities
Funded facilities
In funded facilities the bank actually advances money against further repayment. These
facilities are known as cash credits.
Non- Funded facilities
Non- Funded facilities are those in which bank substitutes its own credit for its
customers.
ACBL offers to its customers are large number of non-funded facilities.
These facilities include:
1. Guarantee
2. Latter of credit
Irrevocable letter of credit
Revocable letter of credit
Sight letter of credit
Usance letter of credit
Other Products
Personal Finance
Personal Finance is a parameter driven product for catering to the needs of the general
public belonging to different segments. One can avail unlimited opportunities through
Askari Bank's Personal Finance. With unmatched finance features in terms of loan
amount, payback period and most affordable monthly installments, Askari Bank's
Personal Finance makes sure that one gets the most out of his/her loan. Once a good
credit history is established, the door to opportunity opens much wider.
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Mortgage Finance
Askari "Mortgage Finance" offers the convenience of owning a house of choice, while living in
it at its rental value. The installment plan has carefully designed to suit both the budget &
accommodation requirements. It has been designed for enhancing financing facility initially for
employees of corporate companies for purchase/ construction/ renovation of house. The
maximum financing amount is Rs. 10 million with a repayment tenure up to 20 years.
Business Finance
In pursuance of the National objectives to review the economy of the country, ACBL is
providing loans to small and medium size business enterprises under Askari Bank's
Business Finance Scheme. Our goal is to offer a loan, which enables business
community to receive the financing required by them based on their cash flows. Ore
valued customers can enjoy the convenience of getting financing on attractive terms
with the minimum processing turnaround time.
ASKCar(Car Finance)
Yet another of our products, Askar offers the most convenient and affordable vehicle- financing
scheme, which provides our valuable customers an opportunity to own a brand new vehicle of
their choice. With minimum down payment, lowest insurance rates and widest range of available
car makes and models, Askcar offers the best value to our esteemed customers.
ASKCard
ASKCARD means freedom, comfort, convenience and security, so that you can have
retail transactions with complete peace of mind. ASKCARD 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 ATM
anywhere, anytime.
Traveller Cheques
The range of our products and value added services enhances with introduction of Rupee
Travellers Cheques (RTCs) launched in March 2002. In spite of our constraint on issuing higher
denomination of RTCs against restrictions imposed by the Central Bank of Pakistan we have
been striving to attain our shares with sizeable portfolio. Total volume handled by the department
during the year 2004 is Rs. 798 Million.
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ASKPower
Ask power represents a useful tool with which to make secure payments without the need to have
any account, a debit or credit card. This card comes with a number of unique features and
diversified usage capabilities like cash withdrawal from ATMs, payment of utility bills through
ATMs and internet Banking, transfer of balance to another card and refill option. The prepaid
card is enjoying a great success all over the country.
Value Plus
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 Rs. 1,079 Million even after lowering down the profit rates due to sufficient
liquidity in the market.
Complimentary CIP and RAWAL Lounge Facilities
The next time you travel internationally, be a privileged guest at the CIP lounge of
Quaid-e-Azam International Airport, Karachi and RAWAL Lounge of Islamabad
International Airport. Your Askari MasterCard entitles you to a host of Complimentary
services like;
Snacks and Beverages
Free Internet, phone and fax facilities
Newspapers and magazines
Flight details information
Cellular phone charger connections
So, no matter where you are going, you are always assured of a
red carpet
welcome.
Discount at AVARI Hotels
Your Askari MasterCard entitles you to the following exciting discounts* at Avari Hotel in
Karachi, Lahore and Dubai:
60% on Room Rack Rates
10% on Restaurants
15% on Hall Rentals
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15% on Family Health Club membership only
15% at the Business Center
10% on Conferences / Meetings Package Rate (cannot be used in conjunction

with Hall Rentals
10% at Beauty Saloon
10% on Rent a Car
Agriculture Finance
Askari Banks Agriculture Credit Schemes ware launched in 2004 under the umbrella of
Agriculture Credit Division continue to be an attractive Product for meeting ON Farm
and OFF Farm financial requirements of the farmers.
Kissan Ever Green Finance
Askari Bank has launched this program with the sole motive to provide dignity,
prosperity and freedom to the tiller of the land. The program is designed to help small,
medium and large farmers in meeting their short-term input requirements against one
time sanction and automatically renewable up to 3 years subject to its stipulated
utilization/periodical adjustment. The credit line is sanctioned in the light of available
cash flows and input requirements i.e. Seeds, Fertilizer & Pesticides etc.
Kissan Farm Mechanization Finance
Askari Bank has launched an Askari Kissan Farm Mechanization Finance for the
assistance of the small farmers and provides finance for farm equipment, trailer,
thresher, drills & rotavators etc.
Kissan Aabpashi Finance
Agriculture farming is impossible without adequate water. Askari Bank has started a
program for farmers, to finance installation of Tube-Wells (electric, diesel and solar
energy units) water management equipments and water channel development etc.
which will help farmers to make optimum use of limited water resources.
Kissan Livestock Development Finance
Askari Bank has launched a program enabling the farmer to purchase Milk Animals,
Goats, Sheep, Poultry and Fisheries without incurring extra expenditure because of
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availability at his farm.. This program has the added advantage that besides fulfilling his
own familys consumption needs he will be able to market the surplus and earn
additional income. This will further improve their cash flows to repay their other Loans /
Revolving Credit on due date.
Kissan Farm Mechanization
Askari Bank has launched an Askari Kissan Farm Mechanization Finance for the
assistance of the small farmers and provides finance for farm equipment, trailer,
thresher, drills & rotavators etc.
Kissan Farm Transport finance
Askari Bank has launched an Askari Kissan Farm Transport Finance. A grave handicap
that afflicts the farmers is their inability, due to lack of proper facilities, to take their
produce to the market through efficient means of transportation. One can safely
conclude that if provided with appropriate and speedy transport, the farmer can benefit
by enhancing his selling ability and thus increase his income / cash flow. it is pertinent to
mention that a number of Banks, Leasing Companies and Private Agencies have
geared their marketing efforts to concentrate on and have mainly captured the urban
markets.
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CHAPTER 7
SWOT Analysis
An analysis indicating towards the organizations strengths, weaknesses, opportunities
and threat is termed as SWOT Analysis. Such an analysis is very important for the
management in retaining the strength, overcoming the weaknesses, capitalizing over
the emerging market opportunities, and carving ways to successfully tackle with the
threats and ultimately converting them in the strengths for the organization.
During six weeks of my stay at Askari Commercial Bank, Abdali Road Branch, Multan. I
have come across the following SWOT analysis of the bank.
Strengths
Leading Private Sector Bank
Askari commercial bank is the leading private sector bank in the banking network in
Pakistan with many of them online branches in major cities of the country
Automatic Operations
The operations performed by the bank are highly automated that result in assurance for
the customers that their transactions are completed reliably, efficiently and securely.
Full Day Banking
One can avail the benefit of the services provided at the bank till 5:00 P.m. which is
highly useful for those customers who find it difficult to leave their officers in the
morning..
ATM Network
The bank has the largest ATM Network cross the country. The customers of ACBL
withdraw access their funds any time at all the ATM Sites with ASKCASH Logo.
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Customized Solutions
The management of the bank believes in customer focused banking rather than the
product oriented banking. The products and services designed by the bank are
specifically tailored to the individual needs of its customers.
Customer Oriented Banking
The priority banking centres of the bank offer an unmatched where the customer
receives highly privileged services in a highly elegant environment. It gives the chance
of experiencing new standards in banking. Designed especially for those who
appreciate only the finest things in life, Priority Banking offers the very highest levels of
personalized banking to match customers unique status.
Electronic Banking
The revolution in the banking in the form of electronic banking operations have opened
avenues of excellent, efficient and quick services saving the time and costs of the
customers and fortunately ACBL is among those few banks who are already reaping the
benefits of electronic transactions.
Electronic Funds Transfer
ACBL management is quite prepared to adopt the latest advancements in technology
resulting in revolution in the banking operations such as check clearing process,
computer based teller equipment, automatic teller machines, and electronic funds
transfers among the others.
Phone Banking
Phone banking service is very attractive for those classes of customers who dont have
time to personally come to the bank i.e. banking on the phone line thus saving the
precious time of the customers.
Ethical Concerns And Public Image
The organizations showing concern for the people, ethics, and environment enjoy good
public reputation and are able to reap the benefits in the long run. ACBL management is
quite sensitive to this issue.
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Weaknesses
In my opinions these are the points that might be detrimental to the efficiency and
profitability of the bank.
Not Highly Automated
The bank has still some of the traditional ways of operations in this advanced
technological environment.
Manual Book-Keeping
Although the bank has computerized accounting system but, still the bankers use to
make their entries in the accounting register.
Low Job Satisfaction
Understanding and the effective management of the human resources is the most
difficult challenge faced not only by the bank but by all the organizations. Even though
the people have been sacrificed in the new organizational developments, it is becoming
clear that the true lasting competitive advantage comes through human resources and
how they are managed. ACBL seems to not focusing on this highly critical issue as the
job satisfaction level of the employees working at ACBL, was quite low.
Lack of Specialization
This famous and useful concept given by Adam Smith in 1776 seems to be missing in
the bank. The employees are constantly rotated from one job to another job of totally
different characteristic in the view of giving them the know-how of the working in all the
departments. But I think this is not a very good tactics used by the management.
Otherwise the situation might be like this Jack of all and master of none.
Centralization
There is a high degree of centralization in the bank. Almost all the decision-making is in
the hands of the upper management. But centralization is effective up to a certain level
otherwise it becomes inefficient and at times costly too. I personally observed that delay
occurred in the operations of the employees only due to the fact that they had not got
any instructions from the head office.
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Lack Of Training Facilities

Presently there is no specific training program arranged for the new recruiters. They
have to learn based on their observations and also their mistakes. It takes a bit time for
the fresh one to learn the banking the result is huge amount of blunders, mistakes etc.
resulting in monetary and non-monetary losses for the bank. There is pressure not only
on the new learner but also on the person placed upon with this responsibility.
Opportunities
It deals in bulk business.
A large amount of foreign investment is attracted.
Strong potential for growth
Steady increase in Customer Deposits
Overseas Operations
Branches In Remote Areas
Islamic Banking
Sharp increase in imports and exports
Threats
High Employees Turnover
As discussed above, the job satisfaction level of the employee is very low resulting in
high turnover, which is bad for any organization as there are huge monetary and nonmonetary costs involved in the fresh recruitments.
High charges
The schedules of charges indicate that the fees charged by the bank on the various
services it provides are extremely high. It may result in decrease in the number of its
exiting customers. Further more, this could be very alarming situation for the bank in
case some of the competitors grasped the opportunity and lowered its rates. The result
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would be either the lost of market share or decrease in the charges resulting in lowering
the banks income.
Less attractive rate of return
Commercial banks face considerable competition in attracting deposits from individuals
or small investors. In contrast, the Govt. of Pakistan national saving scheme offers
attractive rates of return (approx. 16 to 18 percent annually) on 10-15 year fixed
accounts, which banks find difficult to match.
Stiff Competition
SCB is currently facing strict competition from the foreign banks especially the American
who banks enjoy a good market position. Collectively U.S. banks hold approximately 9
percent of all commercial banks' assets.
At present, three American banks are
operating in Pakistan: American Express Bank; Bank of America and Citibank.

Less Experienced Staff
Owing to huge turnover of the employees, the no. of experienced and well trained staff
is very low. Majority of the staff working in the bank branches is quite young and
inexperienced. If the bank failed to bring down its high employees turnover, then it
would be lacking the most important resources of any organization i.e. the experienced
staff.
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CHAPTER 8
Financial Analysis
Financial statements are like a firm perfume to be sniffed but not too
swallowed.
Abraham Brillof
The firm itself and outside providers of capital creditors, and investors all take benefit from
the firms financial statements. The type of analysis varies according to the specific interest of
the party involved. Similarly objectives of the financial statements analysis vary from person to
person. Trade creditors are primarily interested in the liquidity of the firm. Their claims are short
terms, and the ability of the firm to pay their claims quickly is best judged by an analysis of the
firms liquidity. Bondholders are more interested in the cash flow ability of the firm to service a
debt over a long period of time. They may evaluate their ability by analyzing the capital
statement of the firm. Investors usually focus on the profitability of the firm. They would be
concerned with the financial conditions insofar as its affects the ability of the firm to pay
dividends and avoid bankruptcy. Management employees financial analysis for the purpose of
internal control and to better provide what capital suppliers seek in financial conditions and
performance from the firm Management needs to undertake the financial analysis in order to plan
and control effectively. Financial ratios are the tools, which are used to analyze the financial
conditions and performances.
Finally, financial statement analysis deals with the outcomes of the past decisions and
leads to the future planning.
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Balance Sheet Horizontal Analysis
Assets
Cash and balances with treasury banks
Balances with other banks
Lendings to financial institutions
Investments
Advances
Operating fixed assets
Other assets
Total Assets
Liabilities
Bills payable
Borrowings
Deposits and other accounts
Subordinated loans
Deferred tax liabilities
Other liabilities
Net assets
Represented by
Share capital
2009
2008
Millio
ns
2007
2009
Vs
2008
2008
Vs
2007
Varian
ce
2007
Vs
2006
19,38
6
8,364
4,614
67,04
6
135,0
34
9,846
10,03
6
254,3
27
16,03
0
3,955
4,480
35,67
8
128,8
18
8,266
8,964
13,356
21%
20%
-10%
3,497
14,444
39,431
111%
3%
88%
13%
-69%
-10%
-52%
72%
38%
100,78
0
5,128
5,535
5%
28%
2%
19%
12%
61%
62%
35%
45%
206,1
91
182,1
72
23%
13%
10%
2,946
19,30
0
205,9
70
5,995
334
4,833
239,3
78
14,94
9
2,585
15,19
0
167,6
77
2,996
13
4,759
193,2
20
12,97
1
2,627
17,554
14%
27%
-2%
-13%
43%
17%
143,03
7
2,997
472
3,220
169,90
6
12,266
23%
17%
8%
100%
2469%
2%
24%
-97%
48%
14%
-36%
24%
10%
15%
6%
11%
5,073
4,059
3,006
25%
35%
50%
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Reserves
Unappropriated profit
Surplus on revaluation of assets net of tax
7,183
886
13,14
3
1,806
14,94
9
7,667
309
12,03
5
936
12,97
1
6,948
2,145
12,100
-6%
187%
9%
10%
-86%
-1%
19%
19%
26%
166
12,266
93%
15%
463%
6%
-88%
11%
Balance Sheet Vertical Analysis

2009
2008
2007
200
9
Rupees in
millions
Assets
Cash and balances with treasury banks
Balances with other banks
Lendings to financial institutions
Investments
Advances
Operating fixed assets
Other assets
Total Assets
Liabilities
Bills payable
Borrowings
Deposits and other accounts
Subordinated loans
Deferred tax liabilities
Other liabilities
19,38
6
8,364
4,614
67,04
6
135,0
34
9,846
10,03
6
254,3
27
2,946
19,30
0
205,9
70
5,995
334
4,833
2008
2007
Composi
tion
16,030
13,356
8%
8%
7%
3,955
4,480
35,678
3,497
14,444
39,431
3%
2%
26%
2%
2%
17%
2%
8%
22%
128,818
100,780
53%
63%
55%
8,266
8,964
5,128
5,535
4%
4%
4%
4%
3%
3%
206,191
182,17
2
100
%
100%
100%
2,585
15,190
2,627
17,554
1%
8%
1%
8%
2%
10%
167,677
143,037
86%
87%
84%
2,996
13
4,759
2,997
472
3,220
3%
2%
2%
2%
2%
2%
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Net assets
Represented by
Share capital
Reserves
Unappropriated profit
Surplus on revaluation of assets net of tax
239,3
78
14,94
9
193,220
169,906
100%
100%
12,266
100
%
6%
12,971
7%
7%
5,073
7,183
886
13,14
3
1,806
14,94
9
4,059
7,667
309
12,035
3,006
6,948
2,145
12,100
34%
48%
6%
88%
32%
59%
2%
93%
25%
57%
17%
99%
936
12,971
166
12,266
12%
100
%
7%
100%
1%
100%
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2009
2008
2007
Profit & Loss Account Horizontal Analysis
2009
Vs
2008
Rupees in
millions
Markup/return/interest earned
22,662
18,393
Markup / return / interest expensed

Net markup / interest income
Provision against nonperforming loans and advances
Impairment loss on AFS investments
Provision for impairment in the value of investments /
Rev repo
Bad debts written off directly
13,629
9,033
2,324
431
77
10,651
7,743
3,825
15,14
3
8,686
6,458
3,920
2,915
6,118
247
4,073
3,670
1,308
163
538
144
-2
404
2,555
8,672
Net markup / interest income after provisions

Non markup/interest income
Fee, commission and brokerage income
Dividend income
Income from dealing in foreign currencies
Gain on sale of investments net
Unrealized gain on revaluation of
Other income
Total nonmarkup / interest income
Non markup/interest expenses
Administrative expenses
Other charges
Total nonmarkup / interest expenses
Profit before taxation
Taxation current
prior years
deferred
2008 Vs
2007
2007 Vs
2006
Variance
23%
21%
20%
23%
20%
-2%
-50%
24%
15%
248%
3,922
2,536
28%
17%
-39%
100%
7600
%
-100%
-28%
67%
100%
4%
45%
247%
-44%
1,258
174
874
37
22
343
2,707
6,377
1,073
137
656
2,361
2
337
4,565
7,101
4%
-6%
-38%
289%
-109%
18%
-6%
36%
17%
27%
33%
-98%
1000%
2%
-41%
-10%
6%
26%
12%
2008%
200%
5%
113%
7%
6,996
34
7,030
1,642
562
5,904
11
5,916
461
17
4,790
12
4,802
2,300
99
23%
-9%
23%
-80%
-82%
46%
100%
46%
-31%
-90%
120
-147
-50
108
-234
-246
18%
209%
19%
256%
3206
%
-340%
-237%
-79%
-144%
-100%
-318%
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Profit after taxation
Profit & Loss Account Vertical Analysis
534
1,108
75
386
-381
2,681
612%
187%
2009
2008
2007
2009
Rupees
in
Million
s
Markup / return / interest earned
Markup / return / interest expensed
Net markup / interest income
Provision against nonperforming loans and
advances
Impairment loss on AFS investments
Provision for impairment in the value of
investments / Rev repo
Bad debts written off directly
Net markup / interest income after provisions
Non markup/interest income
Fee, commission and brokerage income
Dividend income
Income from dealing in foreign currencies
Gain on sale of investments net
Unrealised gain on revaluation of investments
Other income
Total nonmarkup / interest income
Non markup/interest expenses
Administrative expenses
Other charges
Total nonmarkup / interest expenses
-120%
-86%
2008
-135%
19%
2007
Distribu
tion
22,662
18,393
13,629
9,033
10,651
7,743
15,14
3
8,686
6,458
2,324
3,825
431
100%
100%
100%
60%
40%
58%
42%
57%
43%
3,920
10%
21%
26%
2%
77
2,915
6,118
247
4,073
3,670
3,922
2,536
13%
27%
1%
22%
20%
26%
17%
1,308
163
538
1,258
174
874
1,073
137
656
5.80%
0.70%
2.40%
6.80%
0.90%
4.70%
144
37
2,361
0.60%
-2
404
2,555
8,672
22
343
2,707
6,377
2
337
4,565
7,101
1.80%
11%
38%
0.10%
1.90%
15%
35%
7.10%
0.90%
4.30%
15.60
%
2.20%
30%
47%
6,996
34
7,030
5,904
11
5,916
4,790
12
4,802
31%
0.20%
31%
32%
0.10%
32%
32%
0.10%
32%
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Profit before taxation

Taxation current
prior years
deferred
Profit after taxation
1,642
562
120
461
17
-50
2,300
99
-234
-147
108
-246
534
75
-381
1,108
386
2,681
7%
2.50%
0.50%
0.70%
2.00
%
4.90%
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3%
15%
1%
-2%
1%
-2%
0%
-3%
2%
18%
Internship Report:
Ratio Analysis
Return on Assets
This ratio is an indicator of how a company is profitable relative to its assets. ROA gives
an idea that how efficiently the management is using its assets to generate its
earnings. Calculated by dividing a company's annual earnings by its total assets, ROA is
displayed as a percentage. This ratio is also referred as Return on Investment.
The formula for return on assets is: ROA = (Net Income / Total Assets)x100
Rs. in Millions
Net Income
Total Assets
ROA
2007
2,681
182,172
1.47%
2008
386
206,191
0.18%
2009
1,108
254,327
0.43%
Graphical Representation
Analysis
This ratio shows how much return the bank earned for each rupee invested. There is a
huge decrease in this years ratio but the difference in 2008 and 2009 is minimal. The
bank is required to increase its performance as the standard rate of return is 3 % or more.
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Advances to Deposits Ratio (CDR)

This ratio shows a relationship b/w deposits and advances and reveals how efficiently the
bank is using its deposits.
It is calculated as:
CDR = (Total Advances / Total Deposits)x100
Rs. In Millions
Total Advances
Total Deposits
CDR
2007
100,780
143,037
70.45%
2008
128,818
167,677
76.8%
2009
135,034
205,970
65.56%
Analysis
Analysis shows an increase in loan to Deposit ratio, during the period 2007-2008,
because advances are also increasing sharply with the increase of deposits. But during
the period 2008-2009 deposits increased by 23%, whereas advances only increased by
5%, which caused the CDR to fall from 76.80% to 65.56%.
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Return on Equity (ROE)

Return on equity reveals how much profit a company earned in comparison to the total
amount of shareholder equity found on the balance sheet. Shareholder equity is equal to
total assets minus total liabilities. It's what the shareholders "own".
Calculated as:
ROE = (Net Income/Shareholders Equity)x100
Rs. In Millions
Net Income
Owners Equity
ROE
2007
2,681
12,266
21.85%
2008
386
12,971
3.0%
2009
1,108
14,949
7.4%
Analysis
It is a tradition that stock holders have expected to earn in average annual return of
12%or more from equity investment in large companies. In this case we can see that the
banks return on equity was up to the standard of the return on equity for the year 2007,
but decreased in the year 2008 because the N.I decreased 86% as compared to the
previous year. But the year 2009 reported a small increase in ROE because of 187%
increase in N.I.
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Share Information
Earnings per Share (EPS)
The portion of a company's profit allocated to each outstanding share of common stock.
EPS serves as an indicator of a company's profitability.
Formula:
EPS = (Net Income or Profit after Taxation) / Common Shares Outstanding
Rs. In Millions
Profit After Taxation

No. of Shares
EPS
2009
1,108
507,346,700
2.18
2008
386
405,877,308
0.95
2007
2681
300,649,859
8.91
Analysis
EPS doesn't really tell a whole lot. But if it is compared to the EPS from a previous
quarter or year it indicates the rate of growth, a companys earnings are growing (on a per
share basis). The above chart shows that the Banks earnings against per share have
increase to almost 130% as compared to the previous year (2009).
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CHAPTER 9
Internship Activities
Branch Level Hierarchy
VP/Branch Manager
Zubair Ahmed Sheikh
AVP/Operation
Manager
Mr. Noor Ul Islam
OPERATION
DEPARTMENT
Mr. Asif Masood
General Banking
Manager
Mr. Rahmat Ali
Cash Department
Sir Shazad Naeem
Remittance Deptt.
Mr. Ali Raza
Accounts Dept.
Mr. M.Shahzad
FOREIGN EXCHANGE
DEPARTMENT
Mr. Zahid Ahmad
Incharge
Rahat Hussnain
Khan Langa
Imports
Mr. Naveed
Exports
Miss. Nadia
CREDIT
DEPARTMENT
Mr. Taimor
Incharge
Mr.Sohail
Agriculture deptt.
Mr. Naveed
Personal Finance
Mr. Shafique
Credit Card
Miss. Kiran
A/C Opening
Mr. Khurram
Clearing
Mr. Abdul Qaum
Online Banking
Mr. Adnan Aslam
Shiekh
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Internship Report:
Internship Experiences
One of the most important aims of the student life is to express him / her correctly and
adequately. This was believed in my mind when I first decided to go to Askari commercial
Bank to complete my internship program.
Determined, Confident and Persistent in the pursuit of knowledge and learning, I was on
my way to Askari Commercial Bank, Abdali Road Branch Multan in the early morning.
First Week
I started my internship from "General Banking" in the first week. The General banking is
basically divided into the following sub departments, which are as follows:
Account opening
Bills and remittances
Clearing
Term deposit
Cash department
The first day of exposure to the practical field was at the (sub department) Account
opening.
The relationship of customer starts with this department. Everyone is not allowed to come
and open an account in the bank, for this purpose there should be an introducer who
himself is the account holder in the same branch. He has to introduce the new client by
signing the opening account form and then his signatures are verified.
Applicant's fills the account opening form and provides it to the bank with photocopy of
I.D. card and signatures card.
Then the banker inquires the about the option of opening a joint account or individual. If
the customer wants to open joint account then either it is "either or survivor" (i.e. only one
persons signature is sufficient) or jointly (i.e. both should sign the cheque).
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Account opening:
Although the procedure of opening an account in a bank is a quite complicated job but I
am going to tell you only the basic necessities for opening the account, which are as
follows:
Introduction
National I.D. card
Personal data
Details of dealing with other banks.
These are some of the basic requirements for opening the account:
Issuance of chequebook
Once the account is opened, ACBL issues the chequebooks to the customer so that they
could withdraw their money whenever they like. The producer of issuance of the
chequebook is as follows:
For the customer who already has an account with the bank, the lastly consumed
chequebook requisition slip with the help of which a new chequebook is issued. And the
person who is going to open a new account for the first time gets the chequebook free
without any requisition slip.
For the new depositors the cheque book is not issued at the time of opening of account,
rather it is issued after three days but, as the most of the customers are from the armed
forces so the usually get the cheque earlier. ACBL issues the chequebooks for both the
local and foreign currency accounts.
I remained there in the account-opening department for one week and daily I learnt a new
thing I come to know about the details of the account opened by the banks, which I have
explained in previous portion of "Departments".
In the start I have stated the account opening procedure and issuance of cheque book in
a very comprehensive way, now let me tell u the further related detail of account opening
First of all a customer come and gets the information regarding the opening of
account. After getting the proper information he gets an introducer and goes for
opening an account of any kind whatever he wants
He fills the from regarding the opening of account which is in fact a request.
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S.S card is filled which contains the signature that will be used in future in order to
identify that you are the same particular person who perfectly eligible for receiving
the benefits.
The S.S card and the application form is verified and the verification stamp is
imposed on it.
After verification the application forms are pasted in the file with the serial, no
which is actually the account no. Allocated to the respective customers.
The chequebook is issued to the customer after three days.
A letter of thanks is posted to the customer as well as the introducer. The

introducer is thanked for the two perspectives. First he should be thanked that
because of him the bank get another customer and the second reason behind
sending the letter to him is that if the customer had fraudulently get the signature of
that person as an introducer then he should come to know that someone has used
his name as well as signature for his personal benefit and without the consent of
him (introducer).
The procedure for opening the account comes to an end after sending the letter of
thanks.
Active and inactive Account

The account becomes Inactive if there is no debit transaction. Account becomes active if
there is credit transaction.
Second Week
In the second week I was shifted to the TDR (Term Depots Receipts) department. It was
again a good experience to work with the officer here. First of all he told me about the
basics of the TDR.
Deposit is lifeblood of a commercial bank. The main function of a commercial bank is to
channelize the saving from the savers to the ultimate users of the funds. This process of
collecting saving is called "deposit mobilization".
Deposits are of two types one is the demand deposit and the other one is time deposit
(these have been explained in detail in the "department" portion). As the name signifies
the demand deposit is payable on demand so no interest or benefit is given on such
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deposits but the time deposit is a kind of deposit, which gives you a benefit in terms of
cash. Most of the people who have surplus money with them especially the landlords
deposit their money in such accounts.
Term deposits are payable on demand with certain maturity. Different percentages of
profit are given in the time deposit (the detail is given in the Marketing Mix)
These are called fixed deposit because they are fixed and no transaction is allowed till
maturity. In fix deposit you can open an A/c of the same title only than A/c number will be
changed. While in other accounts the A/c can't be opened under the same title even in
other branch of the same Bank.
Profit calculation
The Head office determines the provisional rates of the Profit. Every bank has its own
interest rate; usually established banks have low interest rates then the non-established
banks as the have to attract the Customers.
There are different types of accounts, which are shown in provisional rates of profit on
PLS deposit and rate of return minimum balance, and maturity is also shown in it. After
every six months the rates are revised on PLS deposit
On fixed deposit the interest is given on the Principle amount only while on other profit
and loss deposits the interest is given on profit an principle amount (provided that the
interest has not been received in the given time). On fixed deposits the month is started
from the day from which you deposit the amount.
As the interest rates vary frequently you will calculate the interest on the rate which is
applicable during that particular duration. It happens that sometimes the interest rate
remains the same. But during the year 2004 the interest rates were changed two times
within six months. First of all the interest rates were changed at the start of the year and
then these rates were changed again in the month of the February i.e. these were
changed twice in the six months. The changing in the interest rate depends upon the will
of the Head office, which has the power to change them at any time.
Zakat is deducted on the first of Ramdan. However, the Bank can't deduct the Zakat if you
have given Affidavit (declaration regarding not to deduct Zakat on Stamp paper).
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Tax is deducted which is known as withholding tax only at the time of deposit e.g. When
you will deposit Rs.100,000 you will have to give additional money of Rs. 300/- as the
withholding tax. (The rate of withholding tax is 0.3%). If you have National Tax Number
NTN then 0.3% withholding tax is exempt.
The rate of withholding tax on profit is 10% i.e. if you are going to get a benefit of Rs.
10,000 then you will receive the cash of Rs. 9,000 as the remaining amount will be
deducted as the tax.
For non-residents the tax and Zakat is exempt (visa is required as the proof that the
particular person is really a non-resident).similarly Christians has not to pay the tax, they
have to pay the tax only.
Askari Bachat Certificates are tax-free.
The calculation of interest is done manually on the card and then you feed (debit) it in the
bank's account (Profit Saving Account) and will be credited in the customer's account. A
computerized voucher is prepared which will be used as the record.
If there is any mistake in the Debit Credit that will be checked out through Daily Balance
Sheet of the Particular department.
For easy operations Customer prefer to give instruction that their interest should be
credited to their A/c otherwise a manual voucher will be made that will be cashed on cash
counter every time when you come to take the interest.
Record keeping
The record of the TDR is although feed in the computer but there is also a hard copy of
the record. The verified TDR forms are pasted with serial number of receipt given to the
customer (the receipt of the form regarding the deposit of the amount).
Askari Bachat Certificates are attached or pasted in the file according to the date. The
date may be of any month and any year i.e if there is a card of the 8th then on this card
you will find the only 8th date of any month and any year in which the card was issued.
Third Week
In the third week of my internship I was shifted to the Clearing section and Bills for
collection section as well. Three days I worked with the "Clearing" and then with the "Bills
for collection" section.
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Clearing
This is an "Inter-city clearing" i.e the cheques of Lahore city from different banks like
National Bank of Pakistan, Standard Chartered Bank, Muslim Commercial Bank are
deposited here. The deposited cheque is received carefully by checking the title of
cheque, date, amount, and signature on the cheque. All the cheques go to the State Bank
of Pakistan. Everyday NIFT receives all cheques and arranges them. By establishment of
NIFT a lot of time, cost and labor is saved. The cheques are stamped carefully. Two
stamps are required on the cheques
Clearing stamp
Payee's account will be credited
If any stamp is missed or unclear, SBP returned one the cheque with reason.
When the cheques are deposited they enter all the cheques on the computer with
account number and these figures go to SBP.
There are four types of Balances in the computer
Available balance
Float amount
Block amount
Ledger balance
NIFT collects all the cheques at 2:00 pm. After that the computer department give
clearing sheet that is checked in clearing.
Same day clearing
All the cheques are cleared in coming day. But same day cheques are cleared other
same day when it is deposited. The same day cheque amount is 50,000 below this
amount the cheque, can't be cleared in the same day.
Clearing house
It is a place where representatives of all scheduled banks sit together and interchange
their claim against cash other with the help of controlling staff of "state Bank of Pakistan"
where there is no branch of State Bank of Pakistan, the designated branch of State of
Pakistan.
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So, system by which banks exchange cheques and other negotiable instruments drawn
on each other within specific area and there by secure payment for their clients through
the clearing house at specific time In an efficient way.
Bills for Collection
Two types of cheques are deposited here
Outstation cheques
Askari other branch cheques (local)
Outstation cheques mean different cities cheques are deposited and local means Askari's
other Branches like cantt, defence etc. are deposited. All cheques account numbers on
the computer and these figures go to SBP.
The cheques are cleared in 5-6 days. Because "NIFT" receives and delivered to SBP
where these cheques are cleared in 3 days and deliver to the banks, which mention on
the cheques.
The cheques require three stamps
Askari crossing stamp
OBC number
Payee's account will be credited.
If the cheques are returned due to some reasons, a returned memo is attached with this
having the reason of return.
Random is filled and entries are recorded on the register.
Fourth Week
In the fourth week of internship I was transferred to the "Remittances department". I met
there with a quite sophisticated personality, she tells me about the issuance, procedure
and the entries of the demand drafts and pay orders.
Demand Draft
It is an instrument payable on demand for which value has been received, issued by the
branch of the bank drawn. Demand draft is payable at some other branches of the same
bank. But Askari Bank contract with MCB so ACBL's demand draft is payable at MCB
also. Demand draft is very useful because there is no chance of fraud. The person
deposit cash and get demand draft. It is used for outstation payment.
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Issuance of demand draft

On the application form following particulars are given:
Name of beneficiary
Amount
Mode of payment
The place where DD is drawn
Signature
Name and address of the beneficiary
Request shall be made on standard application form. The customer writes his name,
address, I.D number, and phone number on the backside of the application form.
Commission is charged as per schedule of charges. The issuance of DD is computerized
and the amount is automatically protecting graphed drawing printing for the avoidance of
forgery.
The withholding tax and excise duty is deducted as per schedule. When the customer
depots cash in the cash department, he got voucher from the cash department and gave
it to the person who makes the DD.
Payment of DD
When a person brings DD (which have been drawn on you), you will check it from your
DD payable record and ask the customer to sign twice at the back of the DD so that it
could be confirmed that he is the eligible person for receiving the benefit, along with this
you obtain the ID of that person verify it and then make the payment. After making the
payment entry is made in the register that this DD has been paid.
DD payable register
Every day you receive an IBCA from different banks and it contains a list of DDs, which
have been drawn on you. Banker records it in DD payable register. These DD are those,
which other branches have drawn on your bank.
Payment of DD from Suspense A/c
The payment of DD is made from the suspence account in the following cases:
The amount of DD is paid from suspence a/c if advice is not received yet.
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If a DD is to be cancelled on the wish of the customer, in such a case the payment

will be made from suspence A/c.
Cancellation of DD
Following procedure is followed for the cancellation of the DD.
Obtain the application in writing for the cancellation of DD along with the original
DD.
Verify the signature of the applicant, which should tally, with the signature on the
application form (for opening the DD).
Mark caution on DD issued register or on computerized entry.
Make the payment from suspence account.
Inform the Drawee bank regarding the cancellation and ask for IBCA. Inter Branch
Credit Advice is the advice regarding the payment (refund) of the amount which
Drawer bank have sent to them (which was deposited by the customer against the
demand draft).
When a demand draft is made, an IBCA is sent to the Drawee bank regarding the
payment.
Types of DD
DDs are of the following types:
Crossed DD: In the case of crossed DD the amount is deposited to the A/c of the
beneficiary.
Open DD: In case of open DD the amount is handed over to the beneficiary at the
cash counter.
Telegraph Transfer
The transfer of funds from one branch to another branch of the same bank is called
telegraphic transfer. The bank apply test on telegraphic transfer. The applicant receives
Commission and charges, if the Applicants account is in ACBL, he pays no charge above
Rs. 100,000/If he has no account in the ACBL then he has to pay charges according to the amount
e.g. for Rs. 100,000/- the charges are Rs. 250/-
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If the account of beneficiary is in another bank, his bank will present The TT to ACBL
through for payment.
Pay Order
Pay order issued from one branch can only be payable from the same branch. Pay order
is used for same city payment. E.g. If ACBL (Main Branch) issued pay order it is only
payable for Main Branch of ACBL.
Procedure
Applicant fill the application
After paying charges he gets voucher and pay order is issued
All pay orders shall be crossed "payee's A/c only".
Cancellation
The applicant give application for cancellation
Charges are recovered from the applicant.
Fifth Week
In the second last week of my internship I worked for two days in the "ATM section" and
then in the "Accounts section".
Account Section
I worked three days in accounts department but as it is a confidential department so they
did not give me enough information regarding their working. First day I sorted out the
cheques of ACBL
with the help of the serial number and the nature of the account and
arrange them in sequence. After that i checked the activity which contains the title of the
cheque, amount, date etc. Accounts department maintains the record of expenses of all
the departments, it also maintain the record of all the employees regarding their basic
salary, increment, benefits etc. It is the backbone of ACBL.
On the next day Is worked in the mail dispatch section, the person appointed here asked
me to arrange the letters and to write the mailing address on the envelopes and then to
put the letters into the envelops. It was an interesting job but, the single thing which I
learned from here was that, I learnt by heart the addresses of many branches of the
ACBL, which helped me to complete the Marketing Mix portion of the same report where I
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Internship Report:
have given the detail of the Place of the ACBL. On the following day I repeated the same
job and did nothing else.
ATM Section
I worked two days in ATM department. The countrywide network of automated teller
machine carries the brand name "ASKCASH".
The branch network is corrected on-line real time and its customers have access to offsites as well as on-site atms all over Pakistan. Being a part of the first inter-bank ATM
switch in Pakistan with ABN AMRO and Habib bank, the customer now here have access
to about 90 ATMs through the country.
For ATM cards first the customer open account in the bank after that he/ she fills the
application form for the ATM. the Head office send a ATM cards in a ATM department but
pin codes are sent in other department. So in this way the customer gates his/ her ATM
cards.
ATM means "24 hours services" the customers get money at any time at any place but
during my period the function of ATM were held by the Head office for three days. The
branch has no authority to hold the machine, if it is not working; the Head office knows
the reason for it.
On the whole, it is an excellent strategy of ACBL and to sign a strategic partnership with
ABN-AMRO for ATM sharing arrangement is first time in Pakistan.
Sixth Week
In the last week I was shifted to the "foreign exchange" department. For the first three
days I worked there but in the last three days I was shifted again to the account-opening
department due to the absence of one of the Account opening officer. Therefore I was
sent back to the account-opening department.
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Internship Report:
Difficulties Faced
Doing the internship was a wonderful experience for me but as far as preparation of the
report is concerned it was the most difficult part of the project. Preparing for report
become most difficulty and tedious as most of the information was not available not only
on net but also from the bank also. I was unable to get the following material.
History of the bank
Career ladder
Job description
I was fortunate to have a wonderful Annual report of the bank. Especially it was rested
according to the circular of the State Bank of Pakistan, therefore, it was quite easy for me
to analyse the income statements of the bank. There are some other necessary
requirements for doing the financial analysis of the income statements i.e.,
Information about the trends prevailing in the market,
And information regarding the positions of the competitors of the bank that is the
reason that I was unable to depict the true picture of the financial position of the
bank.
We are also unaware about the off balance sheet finance of the bank so, can say
nothing regarding the true liabilities of the bank
Anyhow, it was a very learning experience for me that I will never in my entire life.
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Internship Report:
Conclusions and Recommendations

After spending six weeks at different departments of the bank, interacting with the
employees, getting their views, observing the organizational structure and design, I have
come up with the following suggestions that in my view, will definitely improve a few
weaknesses observed in the bank by me.
Flexible Policies
The bank should be adopting flexible policies, especially in the areas of the recruitment,
promotions, evaluation of the employees otherwise the high turnover observed in the
bank will continue to create problems for the bank now and in the future.
Job security
The employees in the organization should be insured job security so that there is no
pressure on the employees while performing their tasks.
Permanent Hiring
The fresh hiring should be made permanent so that they are secured of their future.
Further the allowances and perquisites attached with the permanent jobs will also
increase the motivation level of the employees.
Job Training Programs
The bank should place emphasis on the organization of effective training and
development programs for its new as well as existing employees so that these are
gradually updated regarding the recent developments in the field of banking.
Perquisites and Allowances
The number of allowances and perquisites for the employees should be increased to
ensure that they put their body and soul in the jobs assigned to them.
Revival of the Charges
The rates for the various charges provided by the bank should be brought down a bit, as
it would result in increase in the number of customers of the bank.
Adoption of Effective technology
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Internship Report:
The current unibank system used by the bank is very slow in processing so my view is
that the bank should try to adopt some other but more effective form of technology in
order to provide comfort to the customers as well as the staff.
Decentralization
The higher authorities should form team-based management rather than centralized
management. It would result in improvement in uplifting the morale of the employees.
They will be more motivated and involved in all their operations resulting in overall
effectiveness of the organization.
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Internship Report:
REFERENCE
Published References
1. Brigham, Houston. Fundamentals of Finical Management 10th Edition
Online References
1. www.askaribank.com.pk/
2. http://www.askaribank.com.pk/Reports/AskariFinancials2009.pdf
3. http://google.com.pk
4. http://nift.com.pk
Personnel References
1. Rahmat Ali, General Banking Manager, Abdali Road Branch Multan.
2. Shazad Naeem, Cash Department, Abdali Road Branch, Multan
3. Asif Mehmood, CSM (Customer Services Manager), Abdali Road Branch, Multan
4. Ali Raza, Remittance Department, Abdali Road Branch Multan
5. Abdual Qayyum, Clearing Department, Abdali Road Branch Multan
6. Mr. Khurram, Account Opening Department, Abdali Road Branch Multan
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Internship Report:
Annexure
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Internship Report:

ASKARI Commercial Bank

ASKARI Commercial Bank

ASKARI Commercial Bank

Full Day Banking......................................................................................................59

ASKARI Commercial Bank

ASKARI Commercial Bank

ASKARI Commercial Bank

The banking sector is categorize in different categorize central commercial industrial

ASKARI Commercial Bank

History of Askari Bank

ASKARI Commercial Bank

Motivation of Askari Bank

ASKARI Commercial Bank

ASKARI Commercial Bank

ASKARI Commercial Bank

Objectives of Askari Bank

ASKARI Commercial Bank

How Challenge will be delivered

Upward rising sales

Corp. Banking &

ASKARI Commercial Bank

ASKARI Commercial Bank

Corporate Banking and Financial Institution Group

Corporate and Merchant Banking Division,

Corporate and Merchant Banking Division

ASKARI Commercial Bank

Retail Banking Group

Investments products unit,

Asset products unit,

The credit cards division.

Investment Products Units

ASKARI Commercial Bank

Operations and Credit Group

System and operations division

Electronic technology divisions

The credit division

Systems and Operations Division

ASKARI Commercial Bank

ASKARI Commercial Bank

ASKARI Commercial Bank

ASKARI Commercial Bank

5) South region: and

Deliver solutions that meet customers financial need;

Build and sustain a high performance culture;

Build trusted relationships with all shareholders;

ASKARI Commercial Bank

ASKARI Commercial Bank

ASKARI Commercial Bank

transaction-processing systems for back-office support. Askari branch network is

ASKARI Commercial Bank

Askari role as a responsible corporate citizen is as important to ACBL as the

Askari participated in IUCN Water conservation initiative and have helped in

ASKARI Commercial Bank

ASKARI Commercial Bank

Deposits of account holders.

Interest on advances and loans granted to the borrowers.

Income and commission from the services provided by the bank.

ASKARI Commercial Bank

ASKARI Commercial Bank

ASKARI Commercial Bank

Following are the main personal policies of ACBL:

General Banking Department

ASKARI Commercial Bank