INTERNSHIP REPORT

ON
ASKARI BANK
6th Road, Satellite Town Rawalpindi.

Submitted By:

Ali

Supervised By:

Mr. Noman Shafi

Quaid-i-Azam University, Islamabad

 ACKNOWLEDGEMENTS

THE HOLY QURAN

“If oceans are contrived into ink to write qualities of my creator. Then the whole oceans would be

consumed in writing before his qualities, comes to an end”.

THE HOLY PROPHET (PBUH) Said:

“Shall I tell you a thing, by which you can attain good in this world and here after? Remember it is

the company of those, who remember and glorify ALLAH, day and night”.

I acknowledge director QASMS Mr. G.S.K.Niazi and my supervisor Mr. Nauman Shafi for being a

continuous source of my inspiration and motivation during this whole period. It is because of their

efforts that I am able to accomplish this task efficiently. I also want to acknowledge all my teachers

and peers.

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 CERTIFICATE

EXECUTIVE SUMMARY
III
Quaid-i-Azam school of management sciences offers masters degree in business administration.

They are giving very useful and best education and offering specialization in marketing

management, financial management and human resource management application to business. An

important program is six to eight weeks internship with any recognized institution to improve

practical skills as been studied.

I decided to take up Askari bank Limited for my internship because it is a competing bank nowadays

and gives a good training to the internees.

This report is about my internship that I have undergone at Askari bank Limited Rawalpindi Branch

dated 19 July to 29 August 2010. This course of internship proved fruitful in improving my skills

and experience practically.

On the very first day of my internship I reported to operation manager Mr Irfan Malik. He gave me

small introduction of the bank and introduced me to the staff of the bank. Every internee is rotated

among the bank’s department and so was I. This rotation is done in order to have general concept

regarding bank’s functions, operations and policies. The stay in department is usually a week in this

rotation. I have learned more about the basic banking, credits department and have given below the

captions of activities I was involved in during the period of six weeks.

Table of Contents
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ACKNOWLEDGEMENTS..................................................................................................................II

CERTIFICATE....................................................................................................................................III

EXECUTIVE SUMMARY.................................................................................................................IV

1 OVERVIEW OF THE ASKARI BANK.........................................................................................1

1.1.1 VISION STATEMENT....................................................................................................1

1.1.2 MISSION STATEMENT.................................................................................................1

1.2 PRODUCT LINE....................................................................................................................1

1.3 DEPARTMENTS AND THEIR WORKINGS........................................................................2

1.3.1 ACCOUNT OPENING DEPARTMENT........................................................................2

1.3.2 REMITTANCES DEPARTMENT..................................................................................2

1.3.3 CASH DEPARTMENT...................................................................................................3

1.3.4 FOREIGN TRADE DEPARTMENT..............................................................................3

1.3.5 ATM-CARDS DEPARTMENT.......................................................................................4

1.3.6 CREDIT DEPARTMENT................................................................................................4

1.3.7 ACCOUNTING DEPARTMENT....................................................................................4

1.3.8 CLEARING DEPARTMENT..........................................................................................4

2 Work description.............................................................................................................................5

2.1 Account opening.....................................................................................................................5

2.2 Remittances Department.........................................................................................................6

2.3 ACCOUNT SECTION............................................................................................................6

2.4 ATM SECTION......................................................................................................................7

2.5 Foreign Exchange Department................................................................................................7

3 SWOT Analysis...............................................................................................................................8

3.1 Strengths..................................................................................................................................8
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 3.1.1 ONLINE SYSTEM..........................................................................................................8

3.1.2 WELFARE OF ARMY OFFICERS................................................................................8

3.1.3 LARGEST PRODUCT RANGE.....................................................................................8

3.2 Weaknesses:............................................................................................................................8

3.2.1 LESS NUMBER OF BRANCHES.................................................................................8

3.2.2 MISS MANAGEMENT..................................................................................................9

3.2.3 YOUNG WORKFORCE.................................................................................................9

3.3 Opportunities...........................................................................................................................9

3.3.1 IMPROVED TECHNOLOGY........................................................................................9

3.4 Threats.....................................................................................................................................9

3.4.1 COMPETITORS..............................................................................................................9

3.4.2 UNCERTAININTY OF ECONOMY..............................................................................9

3.4.3 PRIVITIZATION POLICY OF THE GOVERNMENT................................................10

4 SHORT FALLS/ WEAKNESSES OF ORGANIZATION:-.........................................................11

4.1 RECOMMENDATIONS:-....................................................................................................11

4.2 CONCLUSION:-..................................................................................................................12

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 CHAPTER # 1 INTRODUCTION OF THE ORGANIZATION

1 OVERVIEW OF THE ASKARI BANK

Askari Commercial Bank was listed as public limited on October 9, 1991. Registered under Banking

Companies Ordinance, 1962 Askari Bank is engaged in the business of banking. The Bank is listed

on the Karachi, Lahore and Islamabad Stock Exchanges.

Askari Bank has nation-wide existence of 226 branches and sub-branches. It has 4173 online ATM’s

covering all major cities in Pakistan. As on December 31, 2009, the bank had equity of PKR 14

billion and total assets of PKR 25 billion (Askari Bank, 2009).

1.1.1 VISION STATEMENT

“To be one of the leading business houses employing best business practices” (Askari Bank, 2009).

1.1.2 MISSION STATEMENT

“To be the leading private sector bank in Pakistan with an international presence, delivering quality

service through innovative technology and effective human resource management in a modern and

progressive organizational culture of meritocracy, maintaining high ethical and professional

standards, while providing enhanced value to all our stake-holders, and contributing to society”

(Askari Bank, 2009).

1.2 PRODUCT LINE

Askari bank serves in the following areas:

Corporate Banking

Investment Banking

Consumer Banking

Treasury & International Banking

Offshore Banking

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 Commercial Banking

Agriculture Banking

Islamic Banking (Askari Bank, 2011)

1.3 DEPARTMENTS AND THEIR WORKINGS

The bank has following departments:

1.3.1 ACCOUNT OPENING DEPARTMENT

All types of deposit accounts are opened in this department. It is main department of the bank

because this department acts as the front desk office of a bank. Askari bank offers following types of

accounts to the customers:

Current Account.

Saving Account.

Askari Special Deposit Account.

Askari Bachat Certificate.

Notice Deposit.

Term Deposit

In AKBL Rawalpindi Mr. Imraan Lateef is operating the account opening department along with

performing some auxiliary functions of Cheque book issuing(Miss Nabeela personal

communication, 15 July 2010).

1.3.2 REMITTANCES DEPARTMENT

The function of this department is to transfer money of the customers from one place to another with

safety. Following remittance instruments are offered by the Askari Bank:

Demand Draft (DD)

Pay Order (PO)

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 Pay Slip

Call Deposit Receipt (CDR)

Telegraph Transfer

Cancellation of PO, DD & CDR(Miss Nabeela personal communication, 15

July 2010).

1.3.3 CASH DEPARTMENT

All the physical cash transactions take place in this department therefore it is the most sensitive

department of the bank. This department involves in two activates:

Deposit cash in customer’s account

Make payments from customer’s account (Miss Nabeela personal communication, 15

July 2010).

1.3.4 FOREIGN TRADE DEPARTMENT

Foreign trade department deals in:

Foreign currency account

Exports

Imports(Miss Nabeela personal communication, 15 July 2010).

1.3.5 ATM-CARDS DEPARTMENT

This department deals in issuing the ATM-CARDS, term deposits and Askari bachat certificate.

ATM-CARDS are only issued to account holder. (Miss Nabeela personal communication, 15 July

2010).
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1.3.6 CREDIT DEPARTMENT

The main business of any bank is to provide loans to the customers and then earn interest. This

department deals with this function of the bank. (Miss Nabeela personal communication, 15 July

2010).

1.3.7 ACCOUNTING DEPARTMENT

Accounts department of the Askari bank not only serve as an accountant but also as an auditor of the

bank. It deals and checks the accounts of the bank. (Miss Nabeela personal communication, 15 July

2010).

1.3.8 CLEARING DEPARTMENT

The main function of this department is to accept transfer delivery and clearing cheque from the

customers of the branch and arrange their collections hence this department works closely with

NIFT. (Miss Nabeela personal communication, 15 July 2010).

CHAPTER # 2 LEARNING AND PERSONAL EXPERIENCE

2 Work description

As per the chance given to gain hand on experience and practical exposure, a 6 weeks internship was

done in Askari Bank Ltd, 6th road Branch, Rawalpindi. In these six weeks, it was the prime priority

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to gain as much knowledge as possible about the working of the bank. I started my internship from

"General Banking" in the first week at the Bank. 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

2.1 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.

Term Deposits Receipts

Then I was shifted to the TDR (Term Deposits 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

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deposit is payable on demand so no interest or benefit is given on such 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.

2.2 Remittances Department

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.

2.3 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 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. On the following day I repeated the same job and did

nothing else.

2.4 ATM SECTION

I worked two days in ATM department. The branch network is corrected on-line real time and its

customers have access to off-sites as well as on-site ATMs all over Pakistan. For ATM cards first the

customer open account in the bank after that he/ she fills the application form for the ATM. the Head

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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. The branch has no authority to held the machine, if it is not working;

the Head office knows the reason for it.

2.5 Foreign Exchange Department

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.

The term "foreign exchange" is used to denote either a foreign currency or the rate at which one

currency is converted into another.

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 CHAPTER # 3 ANALYSIS OF THE ORGANIZATION

3 SWOT Analysis

SWOT analysis is a process to identify where we are strong and where we are weak, where we

should defend and where we should attack.

SWOT (Strengths, Weaknesses, Opportunities & Threats) analysis of AKBL are described below:

3.1 Strengths
3.1.1 ONLINE SYSTEM
AKBL has got a well-developed online system in most of its branches. Remittance department is

working very efficiently in transferring the funds of people due to this system.

3.1.2 WELFARE OF ARMY OFFICERS

One distinctive feature of bank is that it is the only bank working for the welfare of army officers,

which was established by Army Welfare Trust (AWT).

3.1.3 LARGEST PRODUCT RANGE

AKBL has the largest product range in banking sector.

Retail Banking

Corporate & Investment

Askari Master Card

Agriculture Banking

3.2 Weaknesses:
3.2.1 LESS NUMBER OF BRANCHES
AKBL has lesser number of branches as compared to other banks. Due to this problem, army officers

cannot avail the benefits of their own bank.

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3.2.2 MISS MANAGEMENT

Miss management in time and working capacity is an obvious weakness of the branch. Due to

overloaded work, there are no deadlines to complete a task and employees generally have to face late

hours sitting. This late hour’s sittings make them annoyed and decrease their working efficiency.

3.2.3 YOUNG WORKFORCE

As the majority of the workforce consists of young professional, they lack in their experience. And

sometimes lack of experience becomes a hurdle while serving to the customers. It is the point where

they feel difficulty while competing the other bank, which have a very experienced workforce.

3.3 Opportunities
3.3.1 IMPROVED TECHNOLOGY
Govt. is taking very bold steps to promote IT in Pakistan. AKBL has an opportunity to improve its

technology.

The increase in per capita income and overall economy has resulted into a great demand for the

consumer financing especially for home finance and car financing and it is said that this trend will

increase more in future. The bank can earn a lot by focusing on its consumer financing sections.

3.4 Threats
3.4.1 COMPETITORS
AKBL has many competitors, which are continuously increasing its products and marketing

aggressively. It may cause its customers to shift to competitors.

3.4.2 UNCERTAININTY OF ECONOMY

Although the economy is growing at a good pace, but there are many factors which results in the

uncertain position of the economy. Such as political uncertainty, WTO, increase in poverty etc. etc.

As a result there are permanent threats of future risks and losses for the bank.

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3.4.3 PRIVITIZATION POLICY OF THE GOVERNMENT
Due to its privatization policy, the govt. is privatizing the state owned banks. The change in

management may result in the increase in the efficiency and productivity of the banks. Thus it can

become a threat for the bank.

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 CHAPTER # 4 CONCLUSION AND RECOMMENDATONS

4 SHORT FALLS/ WEAKNESSES OF ORGANIZATION:-

I tried to analyze and observe as much as possible with the help of Annual Reports, and personally

by consulting all the senior officers about the financial operations of ACBL and in my point of view

everything was fine but what I observe was less number of employees, where there should be 2 or 3

employees there is only one so all the financial operations are carried out with haste and some what

tiredness so I suggest to increase number of employees to carryout financial operations smoothly.

Branch has insufficient staff.

No brake for lunch and prayers.

The branch has not been authorized to make IBTS Reversal entries.

4.1 RECOMMENDATIONS:-

Sufficient staff should be provided.

Approval for brake should be given to staff for lunch & prayers.

Need of job rotation on periodic basis.

Professional training courses for staff to enhance professional deft acumen.

Need of automation in financial reporting.

Need of paper working for “Islamic banking”, an emerging trend in other banks.

Personnel number should increase in proportion to branch expansion

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4.2 CONCLUSION:-

In view of the above discussions the bank’s overall performance is quite good and it is working quite

effectively and efficiently. If I have to express my experience of internship in Askari bank, 6th road

Branch, I would briefly say:

Askari bank is a good Organization in the way that anybody can join it for his/ her long-term career.

Overall working environment is comfortable. Management of branch cares a lot about its employees

and considers them as the Asset of the bank. Behavior of senior executives of bank is very polite and

they are caring about the individual’s career and their growth.

However management is very demanding about the targets but good rewards are given to the

employees at the achievement of assigned targets.

Employees at Askari Bank are quite efficient. As 6th road Branch is an old one, its employees have

to bring their bank among the list of best banks. Therefore, they work more than their working hours

and it is all according to their will. It also shows their loyalty, commitment to organization.

Employees are given the benefits like bonus, gratuity funds, loans, increments, and medical.

All the customers are entertained individually. Same kind of behavior and attention is given to all the

customers. Getting ideas for improvement from customer side is a new idea and that is working very

well in Askari Bank. All the customers are asked to fill a suggestion form and the standards of the

bank are improved through them.

In bank, all the work is done on computers. All the entries are made in computer. Balance is fed into

the computer. This increases efficiency of the bank.

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I found my internship training at Askari Bank 6th road Branch to be a very rewarding experience.

The training was beneficial because it helped me to become aware of a real life working

environment.

As far as my learning is concerned; all the employees at branch were quite cooperative. They helped

me to understand the activities of a bank to the possible extent. Their encouraging attitude gave me

more confidence to learn more and to ask if I have any query in my mind. Besides their ever going

activities they never get irritated by my questioning. I have made an honest effort to present the

working & operating of Askari Bank 6th road Branch in simplest way.

I feel pleasure that I have really gained a lot during 6 weeks & enjoyed working with experienced

cooperative & intelligent staff.

REFERENCES:-

Annual Report, 2009 of Askari Commercial Bank Ltd

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Askari Bank (2010), Retrieved August 18, 2010, from

http://www.askaribank.com.pk/all_products.php

Askari Bank (2010), Retrieved August 18, 2010, from

http://www.askaribank.com.pk/mission.php

Annexure: 1

Organizational Structure

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