Final Report Internship Khurram

Askari Bank Limited Multan.
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Internship Report
2009-2010
Master of Business Administration
Uzma Faiz
08-arid-1463
FINANCE
0333-5562733
blue2bracellet@yahoo.com
University Institute of Management Sciences

University of Arid Agriculture Rawalpindi
Askari Bank Ltd

Tel: 061-9201388
Fax: 061- 9201395
Abdali Road Branch (0013), Multan
Supervisor’s Name: Mr. Adnan

0321-6223522
Starting Date: 26-07-2009

Ending Date: 26-09-2009
Report Date
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16-Feb-2010
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Evaluation
Uzma Faiz
Askari Bank Ltd
Internship report submitted for the final Evaluation in Partial Fulfillment of
the requirements for the Degree of
Master in Business Administration
It is certified that, the Internship report and the work contained in it

conforms to all the standards set by the Institute for the evaluation of any
such work.
1. -------------------------------------------------
2. -------------------------------------------------
University Institute of Management Sciences

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University of Arid Agriculture, Rawalpindi
DEDICATION
TO MY
PARENTS, FAMILY,
TEACHERS
AND MY FRIENDS.
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The Holy Quran.
The Holy Prophet (PBUH) Said! 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.
[AL- KAIF]
The Holy Prophet (PBUH) Said:
“Shell 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 an night.”
[AL- SUNNAT]
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Preface
This report is an internship report on , “Askari

Bank, Abdali Road Multan.” It will provide you material and
information about the bank. Along with the general
information, in it, we will study about the special survey
about the different prospects of the bank.
In addition, I tried to collect the secondary data, from the

different “Departments of the bank, Research papers, Internet, and
from the Annual Reports of the bank”, & from any possible
source, which I could find.
Any how, I must thank to my teacher Mr. Raza Ali on

giving me the chance to report on “Askari Bank.” In
normal circumstances, I would never be able to attain such
valuable information about the respected bank.
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EXECUTIVE SUMMARY:
The Department of Administrative Sciences offers Masters degree in

Business Administration. They are giving the best education and are
offering for specialization, financial management, marketing
management, human resource management and computer
application to business. An important program is six to eight weeks
internship with any recognized institution.
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. So in order to learn more this was my choice.
This report is about my internship that I have undergone at Askari

Bank Limited Multan Branch from 2nd June 2008 to 18th July 08.
During my internship I am able to learn practical aspect of business,
and get good working experience.
On the very first day of my internship I reported to Operation

Manager Mr. Noor ul Islam. 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 departments and so was I. This rotation is
done in order to have general concept regarding Bank’s functions,
operations and policies. In this rotation the stay in department is
usually a week. I have learned more about the Basic Banking,
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Credits and Foreign Trade department and have given below the
caption of activities I was involved in during the period of six weeks.
During my internship I found that Askari Bank is a best Bank in

Multan because most of the Exports and Imports in Multan are done
through this Bank. Multan is one of the cotton growing cities of
Pakistan. Most of the businesses in Multan are directly or indirectly
linked to cotton that is also the case with Askari Bank’s clients.
Because Multan is an Agricultural City, and its major export is Cotton
and Mango. So its export is done on seasonal basis. In the season
of cotton and Mango export Askari Bank get its target easily but
difficult for it to get its target in the off season.
Low profit rates used to be one of the major reasons for not meeting
the deposit targets. The profit rates on Askari deposit schemes were
quite low when compared with other Banks especially with the
National Saving Centers, but now Askari Bank is giving a
comparatively high profit rates to its customers. In today’s every
customer is a rational customer, he knows the value of money and
wants a best return on his money.
________________________________________
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INTRODUCTION TO BANK:
Askari Bank Limited (AKBL) works as a Unit of Army Welfare Trust

was established for the Welfare of Army Officials. The office of Army
Welfare Trust is situated at AWT Plaza, Rawalpindi. AWT offers the
“AWT Saving Scheme” to the army officials only. AWT has its units
as under:
 Askari Associates.
 Askari Leasing.
 Askari General.
 Private Business.
 Textile Mills.
 Cement Industry.
 Askari Commercial Bank.
Askari Bank Limited was incorporated on October 9, 1991, as a

Public Limited Company, and is listed on Karachi, Lahore and
Islamabad Stock Exchanges. The Bank obtained business
commencement certificate on February 26, 1992 and started
operations form April 1, 1992. Askari Bank is scheduled Commercial
Bank and is principally engaged in the business of Banking as
defined in the Banking Companies Ordinance 1962.
Askari Bank Limited continues to scale new heights in all areas of its
operations. The safety and security of depositor’s funds, high
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productivity and optimum use of technology are the hallmarks of its

corporate strength.
In 1994, AKBL earned international recognition as Asia Money Award

and the title of “Best Commercial Bank of Pakistan” for the year
1994, while Euro money declared the Bank as best domestic Bank of
Pakistan for the year 1995.
ARMY WELFARE TRUST AWT
ASKARI ASKARI
ASKARI COMMERCIAL
ASSOCIATE GENERAL
INSURANCE BANK
(PVT) Ltd.
ASKARI BUSINESSES
LEASING
CEMENT
PETROLEUM TEXTILE
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BANK HIERARCHY
PRESIDENT
SENIOR EXECTIVE VICE PRESIDENT
EXCUTIVE VICE PRESIDENT
SENIOR VICE PRESIDENT

BRANCH HIERARCHY
VICE PRESIDENT
ASSISTANT VICE PRESIDENT
OFFICER GRADE I
OFFICER GRADE 2
OFFICER GRADE 3
JUNIOR OFFICER
PABX OPERATOR
DRIVER
PEON
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ASKARI BANK LIMITED MULTAN
Askari Bank Limited Multan was inaugurated on December 28,1994.

It is located on Abdali Road Opposite to PIA Office. The location is
connected to all the main trade centers in Multan. It is a prosperous
branch streaming towards great achievements.
At the time of its establishment the factored who were considered are
as follows
 Multan is zone covering a large population.

 Multan City is linked to many big cities.
 Agro based area constituting growers and gainers
 Army Offices & Fort Colony
 Educational Institution
DEPARTMENTS:
The bank has following department:

 Account Opening department
 ATM Department
 Credit Card Department
 Account Department
 Credit Department
 Remittance Department
 Foreign Trade Department
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 Cash Department
ACCOUNT OPENING DEPARTMENT
Borrowing funds from different sources has become an essential

feature of today's business enterprises. But in the case of a bank
borrowing funds from outside parties is al l the more vital because the
entire banking system is based on it. The borrowed capital of a bank
is much greater their own capital. Banks borrowing is mostly in the
form of deposits. These deposits are lent out to different parties.
Such deposit creation is done through opening an account in the
Bank.
In AKBL Multan Mr. Sheeraz Hassan is operating the account
opening department along with performing some auxiliary functions
of Check Book Issuing
TYPES OF ACCOUNTS
In AKBL, there are the following types of accounts:
 Current account.
 Saving Account.
 Askari Special Deposit Account.(ASDA)
 Basic Banking account
 Term Deposit.
CURRENT ACCOUNT
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In current account there is no interest on it. It is for only transaction

purposes. They are paid on demand. When a banker accepts a
demand deposit, he incurs the obligation of the paying all cheques
drawn against him to the extended of the balance in the account. As
there is no profit paid on this account it is also called chequing
account because cheques can be drawn on it. Current account is
mostly opened for business.
SAVING ACCOUNT
The purpose of this account is to induce the habit of saving
individuals in the neighborhood. The minimum deposit for opening
the account is Rs.1050/- (as obvious in the Annexure).
Though individuals open such accounts for saving purpose, persons
belonging to Armed forces and different military institutions are free
to use this account on current basis.
ASKARI SPECIAL DEPOSIT ACCOUNT

ASDA account is an interest bearing current account interest is paid.
The payment of return is monthly, where as the rate of return with
aspect to the amount of minimum deposit clear. It is also chequing
account because cheques can be drawn on it. It is necessary for this
account that the client must maintain a minimum balance of Rs.
50,000 at the end of the month. That’s why it is similar to current
account. It is mostly opened by Business but individuals too open this
account.
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Tax of 0.3% would be deducted on ASDA if withdrawals are more

than Rs.25,000.
TERM DEPOSITS
A term deposit is a deposit that is made for a certain periods of time

at the end of the specific period. the customer is allowed to with
draw the principle amount .
AKBLs Term deposits are of types clear in the deposit scheme. One
of them is "Askari" Advantage one month. The rate of return on this
account is set by head office. The term deposit account vary one
month to 1 year for all following accounts .
 The amount of profit is given to depositors in three ways:

 By cash
 By sending a bank Draft to depositors Home address or
Officers or whichever is specified as mailing Address.
 The amount is credited in any one of the checking Accounts of
the depositor.
ACCOUNT OPENING PROCEDURE

For the chequing accounts (C/A, ASDA, SAVING), there are different
types of account holders are required for all these types of account
holders. The operation /procedure requirement that is needed for "
Individual Account " differ greatly from " Joint account " proprietorship
"Partner ship “, "Limited Company"
and "Club society or Association " as explained below.
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INDIVIDUAL'S ACCOUNT
When a single man or women opens an account in his/her own name
and has the right to operate it is called individual Account.
DOCUMENTATION REQUIREMENT
For literate person copy of National Identity Card is required as a
primary requirement. For illiterate person and Veiled Women, along
with the copy of National Identity Card requirement he or she must
come in person for opening the account.
OPERATION
 The person place a "Check Mark " in the type of account and
type of operation required
 He/She fills in part-I of the form , a fix his /her either two or four
similar signature (or thumb expression in the signature space
and get it introduced and signed by a person who already has
an account with the bank and write his account no in the
specific rows in a specific space.
 The person fills in "next of Kin " position where he/she father,
mother, husband/wife or any other relative's name, his /her
address, phone no and affix his/her signature to certify this
requirement. This requirement is needed because in his/her
absence bank can have correspondence with the specific
person.
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 The person put her /his signature (" or thumb expression) on

the signature Specimen Card (SS CARD) similar in the area on
the form. One the back of S.S card mailing address, telephone
no, Person to contact and introducer space is filled in. All these
requirement are necessary for future
 The person deposits the initial amount for opening account on
to the cash counter.
 The person put his signature on form -A (check book
requisition) on two places in "authorized signature" and fills in
the "Title of Account space by writing his name.
 If the person put his signature in Urdu or any language other
than English, he signed a "Vernacular form" where under take
that affixed signature are original and his own signature and
two postal size photos are needed.
 The next day is the opening of account.
JOINT ACCOUNT
When two or more persons, neither partners, nor trustees, open an in
their name is called joint Account. Husband and wife or two persons
of same sex can open joint account.
DOCUMENTATION
For joint account copy of National Identity Card of all the persons is
obtained other things remaining same as in individuals account.
OPERATION
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 The person checks the type of amount and type of operation

required in the respective box on the form.
 The persons fill in the Part-I and part-II in the form.
 Signatures of both persons are obtained on the form in the area
specified for signature and S.S. Card.
 In the title of account space names of all the persons are
mentioned.
 Accounts holder specified in the form that they will operate the
form singly or jointly.
PROPRIETORSHIP ACCOUNT
When an owner of a firm operating singly, opens an account in his
firm name, this account is called a proprietorship Account the proper
himself liable for all his acts.
DOCUMENTATION REQUIRED
For this kind of account, an application for opening the account on
the firm letter -pad (having the firm name) is required along with the
NIC Card of proprietor.
OPERATION
All operation remains the same except that the firm name is written in
the "Title of the Account” area and signature of the proprietor are
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affixed in the S.S. Card and the area specified for signatures on the
form.
PARTNER SHIP ACCOUNT

The account is opened in the firm name and all partner designate
one two persons to act on behalf of the partner ship firmer all acts on
behalf of firm. The partners in the partnership firm are liable for the
acts of the firm jointly and severely. Every partner has in a firm has
an implied authority bind his co. partners by drawing and enclosed
cheques.
DOCUMENTATIONS
 Copy of N.I.C card of all partners

 Application to open the account on the firm letter pad.
 Partner ship deed in case registered partnership firm.
 Letter showing the implied Authority of one or more partners to
act on behalf of the firm.
 In case of non -registered partnership firm, understanding on
behalf of the firm to remain liable for all acts of the firm.
 Name, address of all partners is written on the pad.
OPERATION
All other requirement remain same except that the form is dully
signed by all partners cards are signed by all those partners who will
act on behalf of the firm and along filling part-I , Part-Iv is also filled.
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LIMITED COMPANY ACCOUNT

This account is for limited companies. In order to facilitate their
transaction with outside parties, bank provides many facilities.
DOCUMENTATION REQUIRED
 Memorandum of Association.
 Articles of the Association
 Resolution of the Board of Director.
 Certificate of Incorporation.
 Certificate of commencement of business
 N-I-C
OPERATION
The persons authorized in the Resolution of the Board of Directors
put their signatures on S.S Cards. Next of kin "requirement "is not
need in case of a Limited Company. After completing each and every
formality, introducer signature is verified by S.S card and is stamped
"Verified" customer signatures are admitted by stamping “Admitting"
near signature and again signatures on S.S card are admitted in the
same way. The same process of verification and admission of the
signatures is repeated on Form-A and next of Kin area.
After completing each and every formality, Accountant is open in the
computer by writing name, address, A/C Number etc.
LETTER OF THE THANKS
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At the start of the letter 2nd day, AKBL issues letter of thanks to
"Account opener" and " Account Introducer " for the trust the have on
AKBL.
CHECK BOOK ISSUING

Check books are issued only for checking account such as current
Account, saving Account and ASDA Account. They are not issued for
other fixed and term deposits because of their Long term Accounts
“nature.”
ISSUING PROCEDURE
 Signatures on cheque – book requisition are verified by
matching with signatures on SS.
 Cheque – book leaves number, account number, account
holder’s name are mentioned in the cheque- book is made by
mentioning the and the total of sum of excise duty and
provincial tax.
 The name of A/c holder and date of cheque – book issuance is
written on cheque – book requisition the account-opening
officer puts his initials on requisition leave.
 A/c number is stamped over the leaves of cheque book and
finally authorized person affix his signature over the debit

voucher and he voucher is attached from the cheque book and
is handed over to the customer .
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RECEIVING INWARD CHEQUES
Another responsibility and function of account Opening Department is

to receive Inward cheques for collection of other Banks as well as of
AKBL . Then these cheques are sent to clearing official who clears
these checks at SBP from other banks.
ACCOUNT CLOSING
Account is closed on the written request of the customer AKBL free
of cost. But to surrender the cheque book yet if some leaves are yet
to be write to the bank as a necessary requirements for closing the
account.
PROCEDURE
 The customer for individuals account write an application to the
manager of the bank an a simple paper about the closing of his
account with the bank (In case of proprietor ship partnership
and limited company account the application should be written
an firm or company letter –head)
 The individual or in case of other type- proprietor firm and
company surrender the cheque book to the bank.
 The cheque book is then torn from one side and is attached
with the application.
 In case of Ltd. Company account resolution of the board of
directors is also obtained to attach it with the application.
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 The account opening form of the account holder is taken from
the account-opening file, and the application, cheque book, and

resolution of board of directors in case of limited company
account are attached with the form.
 Lastly, it is written in “Red Ink on the form that account closed”
and “Date of account closing.”
EVERYDAY POSTING
Following transaction of cheque book is posted:-
Dr_____________ party A/c 50(for 10 leaves)

Rs 5/leave.
ATM- CARDS DEPARTMENT

This department deals in issuing ATM-Card, term deposits and
Askari Bachat Certificate. Mr. Sheeraz Hassan deals this department.
ATM CARD
ATM – Cards are only issue to Account Holder
ISSUING PROCEDURE
 The person, first open the account within the blank.
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 Then he fills the ATM application form in which name of

account holder, Fathers name account number and N.I.Card
number are mentioned.
 A copy of N.I. card is also attached with the application form.
 After completing this process, the application package is sent to
head office
 AKBL head office takes a period of 3-4 days for preparing and
processing of ATM – cards. First, list of card holder is issued

and then after 15 days cards are send to ACBL’s issuing
branch. The card and list are not sent simultaneously in order
to avoid any mishandling.
 ACBL takes Rs. 350/- for 1st time issuance as charges for a
$card
 Biannually takes Rs 75.
ACCOUNTING DEPARTMENT
Accounts department is a department which deals and checks all the
activity of all the department .It also deals in expression of finance of
the bank. Salary payment is also one function of the bank.
CHECKING BANK’S DAILY ACTIVITY

Accounts department deals and checks the entire working of the
Branch; all the vouchers that have been posted at the computer are
scrutinized in accounts department. The “End of Day” i.e. computer
print is also received from the computer. The next day the activity is
separated some statements from the “End of Day”. Then next day
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activity separated some statements from the “End of Day”. The

vouchers are sorted out head wise. The vouchers are matched with
the entries in the statements.
Any abnormality if occurs, is immediately dealt with. All the vouchers
and instruction are checked individually are checked individually
against the computer printouts. After checking they are signed by Mr.
.Naeem Shehzad and the internal auditor Mr. Shafiq.
OTHER ACTIVITIES
 Preparation of daily bank positions statement
 Payment of salaries
 Preparation of the statements
 Depreciation calculation
 Lockers Issuance
REMITTANCE DEPARTMENT:
The need of remittance is commonly felt is commercial life

particularly and in everyday life generally. The main function of the
remittance department is to transmit money from one place to
another. By providing this service to the customer, Bank earns a lot
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of income. Also customer is able to meet its day to day financial

requirements.
Demand Draft:
It is an instrument payable on demand for which value has been
received, issued by the branch of the Bank drawn i.e. payable at
some other place (branch) of the same Bank. If two Banks are
involved then the DD is sent to other Bank but in other case it is
handed over to the applicant.
Issuance Procedure:
 A demand draft application is given to the customer, he fills in

relevant information and signs it.
 The officer checks the information form.
 The Bank charges such as commission, excise duty is charged
as per effective schedule of charges. If he fills the tax
exemption form, tax is not charged.
 In case of cash deposit, the cashier counts the amount and
signs the DD application and enters it in the register.
 Then the officer of remittance department signs it and operation
manager counter signs it.
 The entry is made in the DD issuing register, DD is given to the
customer.
 Vouchers are prepared and posted.
 DD advises are printed and mailed to the respective branch.
Payment Procedure:
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 The Bank receives DD.

 The DD credit advice is received through mail. The numbers
are checked and signatures are verified.
 An entry is made on the DD payable register and the vouchers
are made.
 DD credit is attached with the vouchers and given for posting to
the computer.
 When DD is received the test numbers are checked and the

payment is made.
 Vouchers are given for posting and the entry that was made in
the register is closed i.e. DD payable is Nil.
Pay Order:
It is an instrument issued for payment in same city. Pay order issued
from one branch can only be payable from the same branch. It is
normally referred to as Banker’s cheque. It is also called confirmed
cheque, because Bank issues this on it own guarantee.
Issuance Procedure:
 The standard form is given to the customer. He fills in the
details and signs it.
 The concerned officer checks the form.
 Bank charges (or commission) as per the schedule of charges
and the withholding tax of 0.3% are applied.
 The cash amount of the pay order is received.
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 A cash memo is signed, stamped and handed over to the

applicant as a receipt.
 Then the pay order receipt is filled accordingly.
 Counter foil is also filled.
 An entry is made in the pay order issue register.
 Then the authorized officer signs it after checking the pay
order.
 The order is then handed over to the applicant after obtaining
his signature on the PO Form.
 A voucher is also made and posted at the computer.
Payment Procedure:
 On presentation of the pay order receipt, two authorized
officers of the branch sign the receipt.
 PO entry is made in the PO issue register.

 Then the amount is credited to the account of the customer or
pain in cash.
 PO is posted at the computer.
Outward Bills for Collection:
The bills, which are received by the Bank and sent to other cities
(branches) for the local clearing in that city, are called Outward Bills
for Collection.
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Procedure:
 The cheques that are of other cities are separated.

 They are entered in the OBC Register and OBC numbers are
given to them.
 The OBC forwarding schedules are prepared for different
branches.
 The respective cheques are attached with the schedule.
 The office copy is filled and original schedule is mailed.
 On clearing, the respective Banks send back the OBCs along
with the IBCA (Inter Branch Credit Advice).

 The OBC numbers are checked from the OBC register, after
that entries are made.
 Commission charges are deducted from the account.
Inward Bills for Collection:
The bills, which are received by the Bank from other branches out of
the city for local clearing are called Inward Bills for Collection.
Procedure:
 The OBC of other branches will be the IBC of this branch. So

an OBC forwarding schedule is received by mail.
 The cheques are entered in the IBC register. The IBC numbers
are allotted to them.
 The cheques are lodged for clearing.
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 After realization, an IBCA is prepared and mailed to the branch

from where the cheque was received.
 At the end of the day, two vouchers are prepared and posted.
FOREIGN TRADE DEPARTMENT

Foreign trade department deals in:
 Foreign currency account
 Exports
 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.
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 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/non-residents 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 ACBL
Branches or in other Bank.
 The account holder can transfer the funds freely, in any
currency to any part of the world.
 Foreign currency Accounts can be used for payment of
purchases at Duty Free shops.
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FACILITIES
This account provides following facilities:
 Traveling quota
 Out ward remittances
 In ward remittances receiving
 To make remittances procedure flexible
EXPORT
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
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 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 then ACBL
 Submission of monthly returns to SBP regarding the import on
form I
SWOT ANALYSIS
SWOT (Strength, Weaknesses, Opportunities & Threats) analysis of

AKBL is described below:
Strengths:
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 AKBL has got a well-developed on-line system in most of its
branches. Remittance Department is working very efficiently in

transferring the funds of people due to this system.
 The Bank has also started ATM facility in most of its branches.
24-hour Banking is new trend in Pakistan and AKBL has also
taken apart in this trend.
 One distinctive feature of the Bank is that it is the only Bank

working for the welfare of army officers, which was established
by Army Welfare Trust.
 The productivity of the Bank is very good. Bank is providing a
high quality service to its customers.
 AKBL have strength that most of the imports which are done in
Multan are handle by AKBL Multan.
Weaknesses:
 AKBL has lesser number of branches as compared to many

other branches. Due to this problem, army officers can not avail
the benefits of their own Bank.
 The human resource department is not performing the function
of selection and recruitment very effectively. Selection process
is not on merit due to which competent persons cannot be
selected.
 Bank should boost the product development and increase the
range of facilities offered for customers.
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 Bank is weak in its credit management. Bank should lend to

very sound parties and increase its payment rate.
Opportunities:
 Govt. is taking very bold steps to promote IT in Pakistan. AKBL

has an opportunity to improve in technology.
 AKBL is surrounded by many competitors. It has an opportunity
to do aggressive marketing to increase its business.
 AKBL may increase its branches in competitive areas
Threats:
 AKBL has many competitors, which are continuously increasing
its products and marketing aggressively. It may cause its
customers to shift to competitors.
 Some other Banks have competent taskforce, which is also a
threat for AKBL. Because human resource is the most valuable
resource.
 Due to the increased bad situation of Pakistan in which army is
considered to be involved increase the frequency of

withdrawals, which would decrease deposits.
Financial Analysis:
Financial Highlights
36
The current year’s profit (2007) after taxation of the bank stood at Rs.
2,681,012 as compared to Rs. 2,249,974 for last year. The deposits
decreased by 16.49% to Rs. 11,197,424 as against Rs. 13,044,593
as on 31 Dec 2006. The loans and advances figure stood at R.s
5,521,030 reflect on the improving market image of Askari Bank as a
formidable financial institution.
Ratio Analysis
The information contained in the four basic financial statements is of

major significance to various interested parties who regularly need to
have relative measures of the company’s operating efficiency.
Relative is the key word here, because the analysis of financial
statements is based on the use of ratios or relative values. Ratio
analysis involves methods of calculating and interpreting financial
ratios to analyze and monitor the firm’s performance. The basic
inputs to ratio analysis are the firm’s income statement and balance
sheet.
Ratios 2008 2009

Current ratio 1.03 1.04
Total asst turnover 0.11 0.09
Debt ratio 0.93 0.93
Gross Profit margin 0.11 0.22
Operating profit margin 0.21 0.12
Net profit margin 0.22 0.26
ROA 0.02 0.02
37
Earning asset to total assets
Earning assets are the assets which are very important for any
company for the bank earning assets are the assets on which bank
can earn its profit which may includes loans, advances, operating
fixed assets and other assets on the loans and advances bank can
make profit by giving or investing in some where so Askari Bank has
increased it’s earning assets in the year 2008 as compared to the
previous year that show the good trend in the profitability of the
Askari bank and the customer believe on the Bank.
Ratio tells that on what percentage earning assets contribute the total
assets. Well bank also has increased it’s earning assets ratio shows
the more profitability of the bank as it can be shown by the profit and
loss account of the 2008 that shows the net mark up income more for
the year as compared to the previous year so bank is going gradually
to the more profitability by giving more advances and loans.
Earning assets
ASSETS 2008
Cash 13356055
Balances with other banks 3497054
Lending 14444143
38
Investments 39431005
Advances 100780162
Operating fixed assets 5128428
Total earning Assets 176636847
Other assets 5535038
TOTAL 182171885
Total Earning Assets: Rs. 176636847

Formula:
Earning Assets / Total Assets
= 176636847 / 182171885
= 0.969616
Return on earning asset
This ratio indicates the how much of earning assets take part in
making of the profit before taxation. This ratio is decreased during the
year. Why is it so it has different reasons these are as follows
Profit before taxation was more in the previous year as compared to

the year 2008 because bank has low expenses and less provision for
the bad debts and also bank has small investments and limited loans
and advances but in 2008 situation has changed and bank increased
its loans and advances.
Earning assets were also low in the previous year as compared to
the 2008 so overall ratio has been decreased but shows the good
trend for the making of long term planning
39
Formula:
Profit after tax / earning assets
= 2,681,012 / 176636847
= .015
Loan loss coverage ratio
This important figure is a reserve account to cover unexpected

defaults on loans by borrowers. These are generally referred to as no
performing loans. The higher the no performing loan and charge-off
percentages, the higher the provision for loan losses should probably
be. Consequently, this would reduce net income and earnings per
share.
Well in the year 2008 bank’s this ratio has been increased to a great
extent due to different reasons theses are as follows.
Profit before taxation is low for the 2008 due to more expenses
because bank is in expanding mode that’s why its expenses are
increasing day by day.
Provisions and bad debts also increased in the year 2008 because
bank also has invested more in this year and ad more also granted
more loans.
Formula:
Provision against non-performing loan and advances / profit
(loss) before tax
40
= 3,920,240 / 2,299,785
= 1.70
Loan to deposit
Well there is a concept that bank’s loans are its assets while its
deposits are liabilities. But if a bank has low deposits then obviously it
will give low loans because bank gives it’s loans by the deposits and
earn on the loans then pay mark up on the deposits to the customers.
Well bank has increased its loans to deposits ratio in the year 2008
showing its more deposits as well more loans and that is good for the
bank to remain in the market and to penetrate in the market.
But profit has not increased with the same ratio because
Bank has low mark up rates

Bank has more capacity for provisions
Formula:
Loans / deposit
= 14444143 / 11,197,424
= 1.289
Current ratio
41
This ratio indicates the liquidity of the bank. Well this ratio has been
decreased but nt much decreased during the year to a small extent
due to
Bank has increased its deposits so liabilities have been increased.

Bank has increased its assets as well to overcome the liabilities.
So overall we can say bank is the liquid enough to pay its liabilities
Formula :
Current assets / current liabilities
= 171508419 / 166214583
= 1.03
Debt Ratio:
Debt ratio remained the same in previous year it was .93 and
in 2008 its again 0.93. Bank has not decreased its debt ratio in 2008.
Operating Profit Margin:

Net profit margin of a bank has been increased from 0.12 to
0.21.
Gross profit margin
42
The company’s gross profit margin was 0.22 in 2007 but

decreased to 0.11 in 2008. It tells us that the company incurred more
expenses in 2008 then in 2007 so its gross profit margin went down
also.
Horizontal and vertical analysis
Comparing analytical data for a current period with similar

computations for prior years affords some basis for judging whether
the condition of the business is improving or worsening. This
comparison of data over time is called as horizontal or trend
analysis, to express the idea of reviewing data for a number of
consecutive periods. It is distinguished from vertical analysis or
static analysis which refers to the review of the financial information
of only one accounting period.
HORIZONTAL ANALYSIS
Balance sheet accounts
2008 2007 %age

ASSETS
Cash 13356055 14879230 -1523175 -10.2369

balances wid other
banks 3497054 7333002 -3835948 -52.3107
Lendings 14444143 8392950 6051193 72.09852
43
Investments 39431005 28625915 10805090 37.74583

Advances 100780162 99179372 1600790 1.614035
o.fixd assets 5128428 3810331 1318097 34.59272
defferd tax assets
other assets 5535038 3812788 1722250 45.17036
TOTAL 182171885 166033588 16138297 9.719899
LIABILITIES
bills payable 2627051 1839077 787974 42.84617

Borrowings 17553525 14964087 2589438 17.30435
deposits&other acc 143036707 131839283 11197424 8.493238
sub-ord loans 2997300 2998500 -1200 -0.04002
liabl against assets
deferred tax liab 471519 736298 -264779 -35.9608
other liab 3219796 2603113 616683 23.69021
TOTAL 169905898 154980358 14925540 9.630601
Net assets 12265987 11053230 1212757 10.97197
PROFIT AND LOSS ACCOUNTS

2008 2007 %age
interest earned 15143241 12596921 2546320 20.21383

interest expensed 8685624 6977313 1708311 24.48379
net mark up/interest income 6457617 5619608 838009 14.91223
loans & advances 3920240 1128137 2792103 247.4968

value of investment 1501 376 1125 299.2021
bad debts written off
3921741 1128513 2793228 247.514
44
-
interest income after provision 2535876 4491095 1955219 -43.5355
Non markup/interest income
fee,comm,brockerage income 1072868 1013660 59208 5.841012

dividends income 137079 109326 27753 25.38554
income from dealing in for curr 655761 584344 71417 12.22174
gain on sale of inv 2361251 112474 2248777 1999.375
unleasing gain 1728 -2308 4036 -174.87
other income 336809 321758 15051 4.677739
total non markup/interest income 4565496 2139254 2426242 113.4153
7101372 6630349 471023 7.104045

Non markup/interest expense
admin exp 4789536 3277353 1512183 46.14038
other pro/write offs
other charges 12051 6141 5910 96.2384
total non markup/interest expense 4801587 3283494 1518093 46.23407
-
2299785 3346855 1047070 -31.2852
Profit before taxation
current yrs 98535 983875 -885340 -89.985

prior yrs -233950
Deferred -245812 113006 -358818 -317.521
-
-381227 1096881 1478108 -134.756
Profit after taxation 2681012 2249974 431038 19.15747
profit brought forward 1799979 1617597 182382 11.27487
profit available for appr. 4480991 3867571 613420 15.8606
VERTICAL ANALYSIS
BALANCE SHEET ACCOUNTS
2008 2007
ASSETS
cash 13356055 7.331567657 14879230 8.961578

balances wid other
banks 3497054 63.18030698 7333002 4.416577
lendings 14444143 7.928854115 8392950 5.054971
Investments 39431005 21.64494538 28625915 17.24104
45
advances 100780162 55.32146851 99179372 59.73452

o.fixd assets 5128428 2.815158881 3810331 2.294916
defferd tax assets
other assets 5535038 3.038360173 3812788 2.296396
TOTAL 182171885 166033588
LIABILITIES
Bills payable 2627051 1.442072689 1839077 1.107654

Borrowings 17553525 9.635693784 14964087 9.012687
deposits&other acc 143036707 78.51744357 131839283 79.40519
Sub-ord loans 2997300 1.645314259 2998500 1.80596
liabl against assets
deferred tax liab 471519 0.258831927 736298 0.443463
other liab 3219796 1.767449461 2603113 1.567823
TOTAL 169905898 154980358
Net assets 12265987 11053230
Findings on the basis of analysis
By the horizontal or comparative analysis in which base year is taken

as 2006 certain changes are measured in the Bank’s performance.
Cash with other banks and balances with other banks gradually
increased in the time line showing the bank’s good performance and
this indicate that bank can earn more by making balances with the
other banks. Lending to financial institutions not done in the last year
46
due to more investments done by the bank and by giving more and
more advances to the customers but this also has increased the bad
debts and provisions of the bank as compared to the previous years.
Operating assets has been decreased so that is in favor of the bank.

On the liabilities side bank also has increased it’s bills payable that
shows that bank has certain increased in the liabilities as well bank’s
deposits also increased showing the great penetration in the market
place as well customer’s believe on the bank to make deposits that’s
why bank’s mark up expense has been increased. Equity also
increased in the previous year but bank’s profit has been decreased
because bank has invested so much and in the development process
so increased in the expenses. Overall bank’s financial position in the
marketplace has been increased in terms of deposits and advances.
All these reasons are favorable to the bank in year 2006 because at
one side bank’s assets have been increased in the form of advances
and at other side markup income increased due to deposits because
bank can more invest it
Balance Sheet’s one portion that is Assets shows certain changes

during the year. e.g
Cash & balances with treasury banks have been increased that
shows the bank has fulfilled and improved SBP requirements
because of maintenance of foreign currency as well as Pakistani
currency with other banks due to this balances with the other banks
whether outside the Pakistan or inside the Pakistan have been
increased.
47
While investment have been decreased due to making balances with

the other banks and so advances increased by giving more to the
customers so earning power also increased. In 2007 bank not lend
money to the financial institutions. Bank’s operating fixed assets have
been decreased to a small extent due to this profit also is increased
because bank is the service organization and for service
organizations no need of more operating fixed assets. Bank’s
deposits and other accounts have not been increased to the same
extent as bank is giving advances. Well that shows a positive trend
because bank expenses would be automatically decreased that are
due to cash management.
Bank’s net assets have been decreased because of less operating

fixed assets and also due to increase in liabilities. Balance Sheet
shows the assets are more contributed by the Advances and
liabilities are more contributed y the Deposits that are favorable for
the Bank. Overall result is less profit for 2008 as compared to 2007.
But this has certain different reasons these are as follows Increase
cash and balances with the other banks
More advances
Increase in deposits
All these reasons are favorable to the bank in year 2007 because at
one side bank’s assets have been increased in the form of advances
and at other side markup income increased due to deposits because
bank can more invest it.
48
Applications of Class Room Concept:
 In Accounts department there was an implementation of

Financial Accounting in making balance sheets, income
statements, calculation of depreciation etc
 In credits department there was an implementation of different
categories of loans like personal loans, corporate loans etc

which was studied in Financial Management.
Recommendations:
Already the bank is having a good infrastructure not much
recommendations are needed as a manager but few can work :-
49
 Customers should be given some sort of facilities which can

convince people for investment and go for Askari bank for
Exports n Imports.
 Fist floor of bank is much congested, there is needed to work
on that.
 There is not a proper environment of customer dealing on that
floor that’s why customer feels difficulty in that.
 Accounts department was much congested, so area of that
department should be extended.
 After annuall closing of bank there should be a get together of
all the employees of bank which can give them a healthy

atmosphere to work.
 Few of the employees used to interfere in others work so they
should be strictly advised to perform their own duty well.
______________________________________
50

Final Report Internship Khurram

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Final Report Internship Khurram

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Askari Bank Limited Multan.

Master of Business Administration

University Institute of Management Sciences

Askari Bank Ltd

Supervisor’s Name: Mr. Adnan

Starting Date: 26-07-2009

Master in Business Administration

It is certified that, the Internship report and the work contained in it

University Institute of Management Sciences

University of Arid Agriculture, Rawalpindi

The Holy Quran.

The Holy Prophet (PBUH) Said:

This report is an internship report on , “Askari

In addition, I tried to collect the secondary data, from the

Any how, I must thank to my teacher Mr. Raza Ali on

The Department of Administrative Sciences offers Masters degree in

I decided to take up Askari Bank Limited for my internship because it

This report is about my internship that I have undergone at Askari

On the very first day of my internship I reported to Operation

During my internship I found that Askari Bank is a best Bank in

Askari Bank Limited (AKBL) works as a Unit of Army Welfare Trust

Askari Bank Limited was incorporated on October 9, 1991, as a

productivity and optimum use of technology are the hallmarks of its

In 1994, AKBL earned international recognition as Asia Money Award

ARMY WELFARE TRUST AWT

SENIOR EXECTIVE VICE PRESIDENT

EXCUTIVE VICE PRESIDENT

SENIOR VICE PRESIDENT

ASSISTANT VICE PRESIDENT

ASKARI BANK LIMITED MULTAN

Askari Bank Limited Multan was inaugurated on December 28,1994.

 Multan is zone covering a large population.

The bank has following department:

ACCOUNT OPENING DEPARTMENT

Borrowing funds from different sources has become an essential

In current account there is no interest on it. It is for only transaction

ASKARI SPECIAL DEPOSIT ACCOUNT

Tax of 0.3% would be deducted on ASDA if withdrawals are more

A term deposit is a deposit that is made for a certain periods of time

 The amount of profit is given to depositors in three ways:

ACCOUNT OPENING PROCEDURE

 The person put her /his signature (" or thumb expression) on

 The person checks the type of amount and type of operation

PARTNER SHIP ACCOUNT

 Copy of N.I.C card of all partners

LIMITED COMPANY ACCOUNT

LETTER OF THE THANKS

CHECK BOOK ISSUING

finally authorized person affix his signature over the debit

RECEIVING INWARD CHEQUES

Another responsibility and function of account Opening Department is

 The account opening form of the account holder is taken from

the account-opening file, and the application, cheque book, and

Dr_____________ party A/c 50(for 10 leaves)

ATM- CARDS DEPARTMENT

 Then he fills the ATM application form in which name of

processing of ATM – cards. First, list of card holder is issued

CHECKING BANK’S DAILY ACTIVITY

activity separated some statements from the “End of Day”. The

The need of remittance is commonly felt is commercial life

of income. Also customer is able to meet its day to day financial

 A demand draft application is given to the customer, he fills in