Final project

Group members:
Muhammad Ammar Khalid
Muhammad Aadil khan
Haseeb Sarwar Satti
Faizan Haider
Ismail
Tanveer Ahmed
Maryam
Fozia

Submitted to:
Madam Summaira Gulzar

Group no.:
4

Dated:
25/05/2012

Askari bank
limited

Contents

Introduction
Corporate achievement
BCG matrix
SWOT analysis
Industrial analysis
Corporate level strategy
Business level strategy
Conclusion

Askari Bank Ltd.

Introduction:
Askari Bank was incorporated in Pakistan on October 9, 1991, as a public limited
company. It commenced operation on April 1, 1992, and is principally engaged in
the business of banking, as defined in the Banking Companies Ordinance, 1962.
The Bank is listed on Karachi, Lahore and Islamabad Stock Exchanges.
Since inception, the bank has concentrated on growth through improving service
quality, investment in technology and people, utilizing its extensive branch
network which includes Islamic and Agricultural banking.
The banking sector has witnessed a dramatic change during the last 14 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.
Askari Bank has expanded into a nationwide presence of almost 250 Branches, and
an Offshore Banking Unit in Bahrain. A shared network of over 3000 online ATMs
covering all major cities in Pakistan supports the delivery channels for customer
service. As on December 31, 2011, the Bank had equity of Rs. 9 billion.
Askari Bank is the only bank with its operational head office in the twin cities of
Rawalpindi-Islamabad, 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
concentration and heavy reliance on business in the major commercial centers of
Karachi and Lahore, where most other banks have their operational Head offices.
Askari Bank is operating throughout Pakistan. Most of the branches are connected
through its State of the Art, On-line Communications Network, which gives the
bank a competitive edge in providing instant services to its clientele. The bank also
offers direct access to the latest Foreign Exchange Rates through its Online
Communications.

Corporate achievement:
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 ABL toper form 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 e-commerce solutions for merchants looking to purchase
on credit.

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

BCG Analysis Of Bank Products on Asset

side

Star (*):
Products of Askari bank having high market share and high growth rate are as
under
Running finance, mortgage finance, Car Ijarah, syndicated finance.

Question mark (?):

Products of Askari bank having high market growth rate and low market share is as
under
Personal finance .

Cash cow:
Products of Askari bank having low market growth rate and high market share is as
under:

Staff finances.

Dog:
Products of Askari bank having low market growth rate and low market share is as
under
Askari car in conventional banking .

SWOT Analysis of Askari bank Ltd.

STRENGTHS:
The strengths of the Askari bank are as under:

Holds a sound repute in the financial circle.

Quality human resource.
Greater service orientation.
Located in the commercial area, so that the customers face no problems in
reaching to the bank.
Maintaining the healthy correspondent relationships with foreign banks
Provide a record business in exports sector.
It has become a financial super store.
It has a reliable and easy to use internal computer system.
All the transactions and information regarded the customers deposits has
been computerized. Currently, FLEXCUBE System is being practiced for
this purpose.

Askari Bank Ltd. has launched its Mobile ATM Bus Service, which is
the Pakistans First Mobile ATM Bus Service. No other bank has taken
initiative of mobile ATM Bus yet.

WEAKNESSES:
The weaknesses of Askari bank are as under:
The size of the bank due to which it cannot tap all the areas of the market.
Since, Askari Bank Ltd. major competitors are Standard chartered and Bank
Alfalah has started large media campaign, so keeping in view these threats,
Askari Bank should emphasize more on its advertisement.
Promotions are given on the basis of favoritism and nepotism. Still have to
reach maturity.

OPPORTUNITIES:
The opportunities of Askari bank are as under:
Askari Banks growing business requires an extensive branch network.
There are great opportunities for ABL for the expansion of its business.
Competitors keep you on your toes all the time.
Employees can work prudently and efficiently to capture a greater market
share.

THREATS:
The threats that Askari bank are facing are as under:
Askari Bank is facing a strong competition by its major competitors.
Standard chartered and Bank Alfalah. Business of these banks is also
growing with very high pace. So in order to achieve the sustainable growth
in a market, ACBL has to remain vigilant about the ever changing
environment and the competitors.
All the competitors are using different means and methods to popularize
their product and services. So ABL should keep in mind that a customer
cannot come to the bank until he knows that his demands will be fulfilled
over there.
ABL should enhance its Branch Network, in order to capture the market of
different areas.

Industrial analysis:

There are five things in the industrial analysis which are as under
1.
2.
3.
4.
5.

Threats of new entrants

Bargaining power of buyer
Threats of substitute
Bargaining power of supplier
Threats of substitutes

Threats of new entrants:

When some organizations have some threats to new comer or new
one. As there are a lot of competition in the market, so threats of new entreats are
high. Askari bank has also some threats to new comers like Citi bank etc.

Bargaining power of buyer:

It is when buyer bargain. In Askari bank there are no buyers which buy their
products.

Threats of substitute:
When the competition is high there are always threats of substitute. Askari bank
has also some threats to the substitute like ZTBL, Citi bank, Standard chartered
bank etc.

Bargaining power of supplier:

There is no supplier in the Askari bank so there is no bargaining power of supplier
in the Askari bank.

Competitor rivalry:
There are many competitors in the high growth market. The competitors of Askari
banks are HBL, ABL, and NBP etc. This race between banks leads to high level of
achievement.

Recommendations:
The global economic environment has changed, creating challenges and
opportunities for the worlds policy makers. Now there is a greater awareness that
Banks are playing very important role in the economic growth of any country.
A.B.L, no doubt a positive contributor in this respect but I think there are certain
points which bank needs to adopt in order to serve in a more effective and efficient
manner. These points are as under:
A.B.L should create business opportunities for themselves. Nowadays there is a
intense competition between the banks. All the banks are expanding with
aggressive approach. So Askari bank needs to open more branches to capture the
market.
Model Banks like Citibank, Al-Habib Bank, Standard Chartered Bank are using
media very effectively to increase the business of banks. So A.B.L should need to
use electronic media for its business developments.
The bank should finance its loans in those projects that are meeting the required
standard and should avoid the political pressure.
The bank should bring forward the new talent as fresh knowledge and education is
considered very important to increase the efficiency and production.
Keeping in view the hard work by the staff members at all levels of management,
staff should be given bonus and increment every year. Nepotism should be avoided
in this connection.

Most of the bank employees are sticking to one seat only, with the result that they
become master of one particular job and lose their grip on other banking operation.
In my opinion each employee should have regular job change.

Corporate level strategies:

The banking industry was in recession from the last three or four years and now
it is grooming again and the market is growing back again with maximum
opportunities so by working hard ABL can accumulate a greater market share.
The vision of Askari bank is to become the bank of first choice so all the policies
of Askari bank are aimed to become a leading bank in the market so for that ABLs
strategy is to become a financial super market and thats why ABL have changed
its banks name from Askari commercial to Askari bank limited thus increasing its
horizon. Now ABL indulges in investment banking leasing banking etc. ABL has
been trying to reach the market leaders by implementing new ideas and for the first
time in Pakistan, introduced mobile ATM machine and we are also the pioneer to
introduce internet banking which is open to all banking industry i.e. by sitting at
ones pc I can transfer my money to any account. Utility bills can also be paid and
ABL have a contract with Ufone by which one can pay ones utility bills through
mobiles. ABL is also indulging in branchless banking. All these initiatives are
taken to become a leading bank in the market. There is no other bank than Askari
to have multimillion software called flex cube for the protection of internet
banking. All other banks are using a software called Unibank but ABL have
purchase international software.

Business level strategies:

There are three types of business level strategies which are as follow:

Cost leadership:
Banking industry is facing a very stiff competition nowadays as there are number
of banks so to create profit by a large margin is not possible. So ABL is trying to
reduce its cost as much as possible as ABL have bought a new software so in the
long run if we do its cost analysis it will reduce the cost of bank to a larger extent.
Wireless communication also reduces the cost of paper, printer etc.

 Differentiation:
Askari bank has come up with an idea of internet banking, mobile ATM machine,
payment of utilities bill through mobiles, branchless banking and latest security
software.

Focus:
The main focus of Askari bank is mainly on the middle and lower-middle class.
The product that show that it works for middle and lower middle class are as under
Kissan evergreen finance
Kissan tractor finance
Mortgage fund

Conclusion:
So one can conclude that the since the commencement of Askari bank it has
increased its market share aggressively in the short span of 20 years. It can be
proved by the 9 billion paid up capital of Askari bank and total assets of approx.
220 billions. It has created a brand in the market. So in the net shell we can say
they after big fives it is one of the best banks in Pakistan.