INTERNSHIP REPORT

ASKARI BANK LIMITED

SUBMITTED BY:

INSTITUTE OF
LAHORE
 ACKNOWLEDGEMENT

All thanks to Allah Almighty, the benevolent and compassionate, who blessed me
with the power & capabilities and remained contented on all intricacies found during the
successful completion of my task. I feel myself indebted and highly grateful to honorable
principle DR ZAFAR IQBAL for allowing me to avail such a precious opportunity of six
weeks Internship at ACBL, to enhance and polish my skills and knowledge under a
qualitative supervision and constant market touch.

I also extend my thanks to Manager operations (SULTAN BAJWA) ACBL, along

with all the Staff Branch for their encouraging response and guidance to make my
assignment as a real learning experience.
 PREFACE
The internship program is to face the challenges of the highly sophisticated
modern era. The essence of internship programme is to stuff the brain with all sorts of
facts and formulae.
During the six weeks long practical glimpse, the theories and ideas, which I
received from the books, have been woven in the texture of my actual life. Verily it has
helped me to personality grooming but also having a clear professional approach.
Certainly it will help me in my practical life.
This report is a little and comprehensive effort to give the reader a professional
insight about the training offered by the “INSTITUTE OF ADMINISTRATIVE
SCIENCES”UNIVERTY OF PUNJAB.
HISTORY OF
BANKING
 The word “bank” is said to have been derived from the words “banc us” or
“banque”. This history of banking is traced to as early as 2000 B.C. These priests thus
acted as agents. Commercial banking began in England with goldsmiths.

ACCORDING TO BANKING COMPANIES ORDINANCE

1962

“Banking means the accepting, for the purpose of lending, or investment, of

deposits of money from the public, repayable on demand or otherwise, and withdraw able
by cheque, draft, order or otherwise.”

“Banking companies mean companies which transact the business of banking in

Pakistan.”

COMMERCIAL BANK:

“The commercial bank receives surplus money from the public and lend to others
who needs funds. Bank collects cheque, bills of exchange etc from customers. It transfers
money from one place to another. It provides agency and general utility services. Purpose
of commercial bank is to earn profit.”
HISTORY OF ASKARI BANK LIMITED
 Askari Bank Limited Ltd was incorporated in Pakistan on October 09, 1991, as a
Public Limited Company. It commenced operations 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 the Karachi, Lahore & Islamabad Stock Exchanges and its
shares are currently the highest quoted from among the new private sector banks in
Pakistan.

Askari Bank has expanded into a nation wide presence of 98 Branches, and an
Offshore Banking Unit in Bahrain. A shared network of over 1,100 online ATMs
covering all major cities in Pakistan supports the delivery channels for customer service.
As on December 31, 2005, the Bank had equity of Rs. 8.6 billion and total assets of Rs.
145.1 billion, with over 600,000 banking customers, serviced by our 2,754 employees.

MOTIVATION OF ASKARI BANK LIMITED

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, Askari’s 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
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 bank’s 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
ATM’s facility and internet Banking, Askari Bank’s reach is ever increasing. In
recognition of this reach, they have set up a retail-banking group in July 2000, the mobile
ATM’s facility is first time started by Askari Bank Limited 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 Bank Limited 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 pervious 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
THE MISSION, VISION, OBJECTIVES
STRATEGIC PLANNING &CORE
VALUES
THE MISSION STATEMENT:
To be the leading private sector bank in Pakistan with an international presence,
delivering quality services through innovative technology an 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

VISSION:
The vision of ASKARI COMMERCAL BANK IS

“To be the bank of first choice in the region”

GOALS AND OBJECTIVES:

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:
• To achieve sustained growth and profitability in all areas of business.
• To build and sustained a highly performance culture, with a continuous
improvement focus.
• To develop a customer-service oriented culture with special emphasis on
customer care and convenience.
• To build an enabling environment, where employees are motivated to contribute
to their potential.
• To effectively manage and mitigate all kind of risks inherent in the banking
business.
• To maximize use of technology to ensure cost-effective operations, efficient
management information system, enhanced delivery capability and high service
standards.
 • To manage the bank’s portfolio of business to achieve strong and sustainable
Shareholder returns and to continuously build shareholder value.
• To deliver timely solutions that best meet the customers’ financial needs.
• To explore new avenues for growth and profitability

HOW CHALLENGE BE DELIVERED

These objectives and guiding mission will be achieved through
• Focused objective
• Winning as a team
• Excellence in delivery
• Relentless quality
• Upward rising sales

STRATEGIC PLANNING
• To comprehensively plan for the future to ensure sustained growth and
profitability.
• To facilitate alignment of the vision, mission, corporate objectives and corporate
philosophy, with the business goals and objectives.
• To provide strategic initiatives and solutions for projects, products, policies and
procedures.
• To provide strategic solutions to mitigate weak areas and to counter threats to
profits.
• To identify strategic initiatives and opportunities for profit.
• To create and leverage strategic assets and capabilities for competitive advantage.

CORE VALUES:
The intrinsic values, which are corner stones of Askari corporate behavior, are:
• COMMITMENT
• FAIRNESS
• TEAM WORK
• INTEGRITY
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 bank’s portfolio of businesses to achieve strong and
sustainable shareholder returns; and
• 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 Bank Limited 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.
PRODUCT &SERVICES:
The product & services of Askari Bank Limited 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

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

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 upto 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

Corporate and Investment Banking Division

The Corporate and Investment Banking Divisions (CBD & IBD) are strongly
positioned across priority markets with a distinct strategy for developing corporate
business. Our strategic framework generates sustainable returns based on strong market
presence and financial solutions ranging from debt and equity market transactions to
syndicate finance, and from transaction banking to corporate finance advisory
services. 2004 was challenging year due to historic lows in interest rates, particularly for
corporate business. The Corporate Banking Division (CBD) undertook a number of dept
re-pricing swap transactions, aimed at reducing the financial burden of its key client
portfolios and also managed advisory and loan arrangement activities. The major new
relationships cover telecommunications, oil and gas, and chemicals sectors. CBD has
dedicated marketing and support units functioning at Karachi and Lahore. In order to
enhance focus on relationship management, and service quality, more dedicated staff is
being assigned. The investment banking activity mainly covers, debt / capital markets,
advisory services and trading (both equities and derivatives). After the initial start-up
phase, the capital market desk, based at Karachi, increased the volume of capital
market related transactions.

MASTER CARD
Askari MasterCard is global member of MasterCard International. We know our
customer requirements & provide them payment solutions & continue to bring new &
exciting ways to pay & support our valued customers, from utilizing modern technology
to making responsible social contributions; we are continuously & consistently striving to
address newer challenges with single motivation: "The Sensible Choice"

Sensible Installments Plans

Sensible Installments Plan allows you to convert your transactions that you make
on your Askari MasterCard, into monthly installments that are very instant, easy and
convenient.

Askari MasterCard Features

Askari MasterCard is a powerful financial tool, a major convenience to shoppers,
a source of comfort to travelers and a sense of security at time of MasterCard offers
emergencies.

Apply Online
If you are 18 years of age or older and have a valid NIC, then you can apply for
Askari MasterCard.

Public Service Message

• Zindagi Trust
• Pink Ribbon
• Earth Quake

News
Askari MasterCard announced the Grand draw winners of Askari MasterCard
promotion at Askari MasterCard, 4th Floor, AWT Plaza, and I. I. Chundrigar Road
Karachi.

Askari bank introduces Pakistan first mobile ATM (Automatic

teller machine)
 Over the years, Askari Bank has proven its strength as a leading banking sector
entity with ever-increasing commitment to its clients, through strategic investment in
electronic technology.

In an inaugural ceremony at a local hotel in Rawalpindi, Askari Bank introduced

Pakistan's first Mobile ATM, another pioneering initiative taken by the bank. Adjutant
General of Pakistan Army and Chairman, Askari Bank, Lt. Gen. Waseem Ahmed Ashraf,
HI (M) performed the inauguration. Also present at the ceremony were Lt. Gen. Masood
Parwaiz, Managing Director Army Welfare Trust, Mr. Kalim-ur-Rahman, former
President & Chief Executive Askari Bank along with general officers, other distinguished
guests, and senior officials of the bank.

Askari Bank's Mobile ATM literally brings the ATM to the customer's doorstep.
This is just another step towards maximizing the customer convenience through the value
added services and easy accessibility to the bank's products by leveraging on technology.

The fully networked Mobile ATMs will visit various areas in the major cities in
Pakistan, halting at regular and pre-determined stops for regular periods of time, before
running back to the base branches in the evening. Now the customers would have access
to services of Askari Bank at various places in the major cities of Rawalpindi/Islamabad,
Lahore & Karachi where the ATMs are being launched.

Askari Bank's Mobile ATM has the most advanced features, which provides its
high security, convinience, and mobility. The ATM is connected to the Bank using a
Siemens MC35i GPRS Modem. As part of the security features, the mobile ATM will
have Guards in addition to two security cameras installed in it. The mobile unit is
designed to work with multiple power sources making it possible to operate under
different conditions, both in Urban and Rural areas.

The ATM will provide the following services:

Cash Dispensing
 Cash and Cheque (Envelope) Depositing

Balance Enquiry

Funds Transfer

Bills Payment
Mini Statement
Askari Bank is fully committed to providing its customers the latest and the best
of e-banking services.

How to Use an ATM Machine?

If you don't know how to work a cash point machine (also known as an ATM,
which stand for Automatic Teller Machine or a 'hole in the wall'), don't worry. Play with
this fully interactive one by following the instructions above the ATM screen and you'll
be ready for the real thing in no time!

AGRICULTURE BANKING

The role of agriculture in Pakistan economy is of pivotal nature. Due to diverse

geographical and climatic conditions the country has tremendous potential for growth and
development in agriculture. However, adequate and timely financial assistance to the
farmers will improve production potential of agriculture sector in the country. The
modern concept of agricultural credit envisages establishment of an efficient institutional
credit system to serve as a package of credit, supplies and knowledge for the overall
strength of the farmers who at present suffer from low productivity and financial
insecurity. A successful credit evaluation system, therefore, should have the basic
ingredients to provide adequate amount at the right time and in the right form to help
farmers in making a productive use of loan funds.
ASKARI KISSAN AGRICULTURE FINANCE PROGRAM

The Askari Kissan Agri Finance Program (AKAFP) has been designed to meet
ON FARM / OFF FARM credit requirements of farmers on the most convenient, flexible,
easy terms and conditions. The program features:

A broad array of credit lines designed to meet farming requirements.

Repay and borrow at your convenience on revolving credit basis at lowest mark-up
rates renewal able after three years.
Convenient repayment terms based on cash flow abilities.
Availability of leased Tractors / Transport without Land / Collateral.
No Hidden Cost.
Availability of interest free package for inputs and tractors etc.
No Pre-adjustment penalties.
Earn prompt payment Bonuses and reduce financial costs.
Insurance cover of leased assets, animals, crops and life assurance of borrowers.

PRODUCTS

Askari Kissan Ever Green Finance

Askari Kissan Tractor Finance
Askari Kissan Aabpashi Finance
Askari Kissan Livestock Development
Finance

Askari Kissan Farm Mechanization

Finance

ACBL offers the following financial services to its customers.

• Deposits
• International banking services
• Agency services to customer

DEPOSITS
 One of the basic functions of commercial banking is to receive deposits. ACBL
accepts deposits in both local & foreign currency.
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 account 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. 100 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. 100 per transaction if the min balance is not
met. "Askari Cash Management Services" aimed at effectively managing the accounts
receivable portfolio of medium and large corporate entities. While this service will help
the corporate entities improve their liquidity, due to our well-diversified branch network.
The service primarily aims at providing clearing, collection and cash/transfer facility to
corporate, under one resource center, which handle the process through the branches and
provide adequate reporting to the corporate clients, on various aspects of their accounts
receivable portfolio, every month.
The product can be tailor made for National and Multinational companies. The
transaction process flows, operational methodologies and service pricing varies from
customer to customer, with marginal modifications, depending upon volumes and nature
of transactions involved.
 INSPIRING
RELATIONSHIP
CUSTOMER RELATIONSHIPS
"Before we discover, we must explore"

Inspiring 600,000 relationships:

Knowing the customers and their needs is the key to success of the bank.
The products and services of the bank are as diverse as his market segments.
The client relationship managers are well equipped and well trained to provide
the most efficient and personalized service to the customers. IT has structured
and syndicated financing arrangements, provided working capital and balancing-
modernization-replacement (BMR) facilities, financed international trade,
provided small business loans and cash management services, and developed
innovative investment and loans products for the individual savers and
households. Askari Bank is proud of its pioneering role in providing the most
modern and technologically advanced services to its 600,000 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 bank strongly believes that the interests of the Bank and the employees are
inseparable. At Askari they try to create a ' we ' culture where there is mutual trust and
respect for each other. They encourage ownership behavior so that everyone feels
responsible for the performance and reputation of the Bank. They are committed to
develop and enhance each employee's skills and capabilities through extensive in-house
and external training programs and job rotations. The strong employee bank relationship
is evidenced by the fact that Askari has a low employee turnover. Most of the top
management today, has reached their present positions by growing within 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
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 are
housing to enhance the Customer Relationship Management (CRM) program. Their
mobile ATMs are the first in Pakistan.

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.

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.
From a humble beginning with just 7 branches in 1992, today Askari enjoy a
network of 98 outlets in Pakistan, spread across the country. A network of self-service
ATMs supports these outlets.
Askari total assets now exceed Rs.145.1 billion and Askari have over 17 products and
services to match Askari customers' individual needs. As part of Askari growth
strategy Askari is now extending Askari banking services to the remote and rural
areas.
For ASKARI BANK LIMITED the challenge is to build a foundation of strong,
consistent financial performance and focus on growing their balance sheet and revenues
at low risk. During the year, they opened twenty-four new fully automated branches,
increasing the branch network to 99, including an Offshore Banking Unit at Bahrain.
Central to the growth strategy is a focus on specialization and transformation. They are
reshaping the portfolio of businesses
by investing in higher growth areas, extending and developing their core
competencies and moving out of weak and non-core segment.
Inspiring Shareholder Confidence:
They believe that the bottom line of any business is creating shareholder value.
To gain their trust and confidence, they believe in providing their shareholders timely,
regular and reliable information on activities, structure, financial situation
and performance. At the same time, they try to give them one of the best earnings
per share in the banking industry of the country.
CORPORATE CULTURE
Because the right may not always be obvious, we must be guided in our every
action by a set of well-defined values, governing our decisions. We understand that our
commitment to satisfy customers’ needs must be fulfilled within a professional and
ethical framework. We subscribe to a culture of high ethical standards, based upon
development of right attitudes.
An employee shall conform to and abide by these Rules and shall observe,
comply and obey all lawful orders and directions which may, from time to time, be given
by any person under whose jurisdiction, or control he may, for the time being, be placed.
The Bank recognizes a staff member’s personal behaviour and interaction with
others as a vital part of the duties of his / her position. In order to achieve the desired
level of performance and corporate objectives, preservation of congenial and professional
working environment is encouraged.
ACBL seeks to create an environment where all persons are treated equitably and
with respect, where person’s rights are respected and where efforts of staff are
encouraged and their achievements given due recognition.

Professionalism & Interoffice Mannerism:

Professionalism embraces the necessary skills, qualification and knowledge to
undertake tasks in a competent manner. The employees at the Bank are expected to carry
out their responsibilities in a professional manner at all times. They must conduct
financial or other affairs in a prudent manner and should avoid situations that could
reflect unfavorably on themselves, Bank or its customers. Circumstances should be
avoided in which personal interest conflicts, or may appear to conflict, with the interest of
the Bank or its customers.
Mannerism refers to interoffice communication methods. It is strongly advised
that the staff members should not speak loudly during office hours that may lead to
hindrance of important assignments, handled by others. Further that the communication
must be done via intercom. Listening to music is not allowed on computer
terminals/headphones during office hours.
Dress Code:
Attire should depict professional attitude and should be appropriate & desirable to
the designated position. All employees particularly those who have direct interaction with
the customers should be dressed in professional attire keeping in view the decorum. The
dress must be well maintained and must give a fresh look. Open toe shoes & without
socks shoes, Jeans, shorts, torn or ragged clothes, Khakis & any casual dressing is not
permissible.

The dress code for both male & female is as under:

Male:
Officers & Executives: Formal business suits with ties is mandatory for all
working days.
Clerical Staff: Preferably formal business suits as per above specifications. At
least formal shirt, trouser & tie are must.
Color Code: Shades of blue, black & gray only.

Female:
Females should be dressed up professionally, keeping in view our national culture and
Askari brand image.

Awards and achievement

Over the years, we have received several awards for the quality of our banking service to
individuals and corporate. These include:
Best Commercial Bank Consumer Choice award 2005
by The Consumers Association of Pakistan.
Best Retail Bank in Pakistan award 2004 & 2005
by The Asian Banker Best Corporate Report

1st prize awarded for 2000, 01, 03 & 04

by Institute of Chartered Accountants of Pakistan (ICAP) and institute of Cost &
Management of Accountants of Pakistan (ICMAP)

Corporate Excellence
awards for 2002 & 03 The Management Association of Pakistan (MAP) Best Corporate /
Institutional Internet Bank in Pakistan award for 2004 by Global Finance magazine

Best Consumer Internet Bank in Pakistan award for 2002, 03 & 04 by Global Finance
magazine

The Best Bank in Pakistan award for 2001 & 02 by Global Finance Magazine
Best Presented Accounts Ranking prizes awarded from 1997 to 2002 by South Asian
Federation of Accountants (SAFA) Commercial Bank of the Year award for 1994 & 96
by Asiamoney magazine Best Domestic Bank in Pakistan award for 1995 by Euromoney
Over the years, Askari Bank has proved its strength as a leading banking sector entity, by
achieving the following firsts in Pakistani Banking:

• First Bank to offer on-line real-time banking on a country-wide basis.

• First Bank with a nation-wide ATM network.
• First Bank to offer Internet Banking Services
• First Bank to offer e-commerce solutions
ENTITY RATINGS:
Askari bank has following entity ratings from Pakistan credit rating agency limited
(PACRA)
LONG TERM AA+
SHORT TERM A1+
 MANAGEMENT SYSTEM
CORPORATE INFORMATION
MANGERIAL POLICIES
CORPORATE
INFORMATION
BOARD OF DIRECTOR

Lt. Gen. Waseem Ahmed Ashraf Chairman

Lt. Gen. (R) Zarrar Azim Chairman Executive Committee
Mr. Shaharyar Ahmad President & Chief Executive
Brig (R) Muhammad Shiraz Baig Director
Brig (R) Asmat Ullah Khan Niazi Director
Brig (R) Muhammad Bashir Baz Director
Brig (R) Shaukat Mahmood Chaudhari Director
Mr. Zafar Alam Khan Sumbal Director
Mr. Kashif Mateen Ansari Director
Mr. Muhammad Najam Ali Director
Mr. Muhammad Afzal Munif Director
Mr. Tariq lqbal Khan Director (NIT Nominee)

Company Secretary
Mr. Saleem Anwar

Audit Committee
Brig (R) Asmat Ullah Khan Niazi Chairman
Brig (R) Muhammad Shiraz Baig Member
Mr. Kashif Mateen Ansari Member

Auditors
A.F.Ferguson & Co. Chartered Accountants

Legal Advisors
Rizvi, Isa, Afridi & Angell

Registrar & Share Transfer Office

M/s THK Associates (Private) Limited,
Ground Floor, Modern Motors House,
Beaumount Road, Karachi, 75530
Tel : (021) 5689021, 5686658, 5685681
Fax: (021) 5655595
E-Mail: askari@isb.compol.com

Registered Office /Head Office

AWT Plaza, The Mall,
P.O.Box 1084, Rawalpindi.
Tel : (051) 9063000 Fax: (051) 9272455
Website: www.askaribank.com.pk
MANGERIAL POLICIES
• Financial policies
• Procurement policies
• Marketing policies
• Promotional policies
• Lending policies
• 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 become necessary. The bank
seeks the best way for making investment to got more profit with the maximum security.
The bank has an investment portfolio in which it allocate 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:
A bank has to maintain a liquidity with central bank ,i.e. 25 %of its total
deposits.
 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 analyze and observe the borrower and conduct a
complete ratio analysis. Bank prepare 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 it’s
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:

• Creation of new product and services.

• The bank marketing must be consumer oriented.
Following are the marketing policies of the ACBL.
• 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.
• Development of products for the customers.
 • 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.
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:
• Direct contact with customers.
• Relation with business organizations.
• 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:

• The bank only invests in those sound and viable projects, which have good rate of
return.
• Bank prefers to advance loan to their account holders.
• Loan is given to reliable person only.
• No political loan is sanctioned by bank.
• Any account holder can apply for running finance or demand finance. The manger
apprises the past record of account holder and his credit worthiness. If he finds
any thing wrong he can refuse to sanction the amount.
• The bank while taking security prefers govt. Securities to shares.
• 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.
Following are the main personal policies of ACBL:
• Selection of employees on merit
• Selection of capable employees.
• Attractive salary package for motivation of employees.
• To train and develop the future management of the bank.
• Every employee must have certain set of clearly defined duties
• Effective communication at al levels of the organization.
GROUPS
&
DIVISION
FIELD OF ACTIVITIES
THE BANK BASICALLY WORKS UNDER THREE GROUPS NAMED AS
• Corporate banking and financial institutions group
• Retail banking group
• Operations and credit group.
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.

TREASURY
Responsible for managing Bank’s 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,
• And the credit cards division.

INVESTMENT PRODUCTS UNIT

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.

ASSET PRODUCTS UNIT

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 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 n
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

The Operations and Credit Group is responsible for all operations as well as credit
and risk management activities of the Bank. This includes development and
implementations of systems, operational policies and procedures, process re-engineering,
automation, branch expansion & acquisition of premises, regulatory reporting,
compliance management and legal affairs
The group is organized in three divisions,
• System and operations division
• Electronic technology divisions
 • And the credit division

SYSTEM AND OPERATIONS DIVISIONS

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 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 shot -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 more effective monitoring and controls. Further steps are being taken to streamline
credit appraisal procedures and training to credit officers at all levels.

HUMAN RESOURCE DIVISION

The Human Resource Division (HRD) is responsible for managing and
facilitating the most important strategic resource of any organization.
Its focus is on harnessing the potential and energy of a professional workforce to ensure
effective attainment of goals set by the Bank.
Recruiting the best, creating an environment that values merit across the entire
organization, improving human resource policies, enhancing monetary benefits,
organizing social events, providing training and development opportunities, and initiating
human resource planning, including carrier and succession planning, are the major
objectives of HRD
The enlargement in the network of the branches and aggressive expansion in the
credit cards and retail banking business necessitated new hiring. HRD continued its
support to these vital organs of the organization by the way of timely meeting their
manpower needs.
During the year, HRD implemented an extensive in-house training program to
further enhance its staff’s professional capabilities. A total of 1313 employees
participated in these courses.
 These training programmes ensured that the employees understand the policies
and procedures of the Bank and are able to meet the challenges of their job through
greater knowledge and skills.
In addition to in-house training, the Bank nominated 200 officers and executives
to training programmes offered by specialized training institutions.

FINANCE DIVISION
The Finance Division (FND) is the hub of all financial
information for maintaining statutory accounts and measuring
the performance of the Bank. While ensuring overall financial management, financial
control, financial reporting and accounting function, FND is responsible for maintaining
the account records and systems in accordance with internal policies, regulatory
requirements, corporate governance and international accounting standards. It also
establishes policies and procedures relating to finance function, monitors returns / spreads
and reports on various performance indicators including asset / liability mismatch.
FND watches for external factors and economic indicators to protect and enhance
stakeholder's value. The Division directs control of the budgeting process in accordance
with the annual plans, policies, management directives and strategy. It ensures that
quality budgets and forecasts are drawn up and consolidated for approval.
FND exercises budgetary control on all expense and income items, ensuring that
effective monitoring arrangements are in place. It continually reviews the accounting and
control systems, ensures that they are appropriate to the requirements of the business and
that they generate financial information necessary for effective decision making.
It monitors capital adequacy in accordance with regulatory directives. It liaises
with auditors, tax consultants and SBP inspectors, and facilitates their duties. The
Division maintains financial databank and carries out industry financial analysis vis-à-vis
Bank’s strength and opportunities.
The Division derives strength from its well-trained, experienced and qualified
human resource, automation of processes and effective communication with all operating
units.
In this age of information and technology, the premium on timely financial
information is enormous. FND, therefore, continues to focus on optimum automation of
financial information to enhance its quality and effectiveness.

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.
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:
• North region
• Comparison of Islamabad and Rawalpindi area and the north area.
• Central region
• Comprising of Lahore and East area.
• South region: and
• 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.

Planning & Corporate Affairs Division

The Planning & Corporate Affairs Division (PCD) is a relatively new division,
setup in September 2002. It has been established to provide strategic direction to the
Bank and developing a futuristic outlook. It plans to identify new opportunities for
growth and increased profitability, and to counter any emerging threats. For this purpose,
it remains in constant touch with the market and assimilates information, both formal and
informal. PCD plans to engage in extensive research to keep abreast of latest
developments in thinking, concepts, products and technologies.
During 2003, in line with its strategic plans, the Division devoted its full attention
to the possible acquisition of Allied Bank. It would, however, be premature to predict the
outcome since a bidding process is involved.
A number of other initiatives are also under construction of the PCD including
setting up of an Islamic Banking Unit.
The Division remains on the look out for new market opportunities, developing
new market opportunities, developing new products and services, and improving to
operational efficiencies. The aim remains to constantly move towards a learning
organization and a dynamic culture
DEPARTMENTS

Branch Banking

General Credits Foreign Trade

Banking

• Deposits • Credit Facilities • Imports

• Cash • Loans • Exports
• Account opening • Decumentation • Foreign
• Followup currency
• Etc • Etc

Remittances
• DD.TT.
• Online funds Transfer
• Travelers Cheques

Collection of Cheques
• Clearing
• Bills (OBC, IBC, LBC)

Accounts Department
• Daily Activities
• Record Keeping
GENERAL BANKING DEPARTMENT
• CREDIT DEPARTMENT
• FOREIGN EXCHANGE DEPARTMENT
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:

GENERAL BANKING DEPARTMENT

• Account opening department
• Remittances department
• Cash department
• Clearing department

PRIVILEGE BANKING DEPARTMENT

• Online banking
• Lockers

CREDIT DEPARTMENT
FOREX DEPARTMENT
• Import department
• Export department
• Foreign currency department

ACCOUNTS DEPARTMENT
IT- 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
• Verification of signature in case of cheque presented before releasing of account
opening from SS card is not yet scanned

IMPORTANCE OF INTRODUCTION
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 UNINTENTIONAL OVER DRAFT
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.
• INQURIES ABOUT CUSTOMERS
Have all necessary information with him regarding his Generally a banker is
asked by another banker to give his opinion about his customer’s financial position.
Therefore, it is beneficial for the both that the banker should customers.
• 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 &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, enter the business name, for
example “Jamil Traders”etc.also enter the customer’s 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. With in 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 a 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.
 • 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
1) ACCOUNTS OF GENERAL CUSTOMERS
• Minor account
• Illiterate person account
• Joint account
2) ACCOUNT OF SPECIAL PERSONS
• Proprietorship account
• Partnership account
• Limited company’s account
• Accounts of club societies and associations
• Agent’s accounts
• Trust account
• Liquidator’s account executer’s and administrator’s account
REMITTANCE DEPARTMENT
Functions of remittances department
The functions of remittance departments is to handle with the following instruments:
• Pay Order
• Demand Draft
• Pay slip
• 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:
 Instrument transfer
 Electronic transfer
 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) Charges (Rs)
Less then 100,000 50
Above 100,000 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.

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) Charges (Rs)
1 - 10,000 25
10,000 – 100,000 50 or .1%
100,000 - 1000,000 200 or .07%
Over 1000,00 1000 or .05%

PAY SLIP
The bank for settlement of it own payment issue 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 bon

CASH RECEIPT SECTION

In this section the cashier in following manner receives cash:
 Process of deposits

Fill- up deposit Deposited on

slip Receipt Customer

Cashier counts the amounts Cashier counts the

and fulfills other amount and fulfills
requirement other requirements

CASH PAYMENT SECTION

In this section honoring the cheque through following process makes payment.

Process of payment

Cheque is recorded
Cheque is presented & token # is allotted
at token counter

Cancellation officer
Cashier counts the amount cancels cheque
& 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”.

• Since clearing does not involve any cash etc. and all the transaction take place
through book entries , the number of transaction can be unlimited.
• No cash is needed as such the risk of robbery, embezzlements and pilferage are
totally eliminated.
• As major payments are made through clearing, the banks came manage cash
payments at the counters with a minimum amount of cash in vaults.
• A lot of time, cost and labor are saved.
• 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.

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 HAVE CLEARING HOUSE:

• Timing:(Monday through Saturday)
• 1st Clearing at 10:00 a.m.
 • 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 AT THE BRANCH:

The following points are to be taken into consideration while an instrument is accepted at
the counter to be presented in outward clearing:

• The name of the branch appears on its face where it is drawn o.

• It should be stale or post dated or without date.
• Amount in words and figures does not differ.
• 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 endorsee’s 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, paying-
in-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:

• The particulars of the instrument and the pay-in-slip or credit voucher are entered
in the outward clearing register.
• Serial no. Is given to each voucher.
• The register is balanced; the credit vouchers are balanced from the instruments
and are released to the respective departments against acknowledgement in the
register.
• The instruments are arranged bank wise.
• The schedules are prepared in triplicate, two copies which are attached with the
relevant instrument and the third is kept as office copy.
• The house page is prepared from schedules in triplicate.
• The schedules and house pages are signed by the house incharge with branch
stamp.
• The grand total of the house page is taken and agreed with that of the outward
clearing register.
• 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 OF THE BRANCH:
• 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 top 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 RETAINED 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
favour to balance the Cash-cum-day book we may debit suspense 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 50
25,000 - 200,000 100
200,001 - 500,000 250
500,001 - 2000,000 500
Above 2000,000 750

LOKERS
Askari bank offers facility of lockers to its customers.
There are three sizes of lockers available:

CHARGES

Size of lockers Rent of locker (Rs) p.a.

Large 2500
Medium 1500
Small 1000

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.
THE NATURE OF CREDIT
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 thinks 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 sating 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,
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 he selves 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 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.

LETTER OF CREDIT:
A letter of credit as name signifies does one person or bank to
another requesting the letter to pay any amount of money up to a certain limit to the
person write a letter named in the letter or in whose favor the letter is written. In this
letter generally a date is fixed upto only the addressee should make which advances. Thus
a letter of credit remains in force upto a certain date only. Generally banks grant this
letter of credit

FOREIGN EXCHANGE DEPARTMENT

The term "foreign exchange" is used to denote either a foreign currency or the rate
at which one currency is converted into another or the means & methods by which one
currency is exchanged for another.
Functions of Foreign Currency Account Department
Foreign exchange department performs following functions:
• Foreign Bills for collection (FBC)
• Foreign telegraphic transfer (FTT)

FOREIGN DEMAND DRAFT (FDD)

• TDR
• Issuance of Proceed realization certificate
• Inward remittances
 • Daily Reporting

REQUIREMENT OF FUNDS TRANSFER

For transfer of fund in foreign currency, a person must have his account in foreign
exchange in the bank.
Requirement of account opening is $500 or any other currency equivalent to $500.
FINANCIAL REVIEW
PROFIT
Askari Bank recorded 10% growth in operating profit over the previous year and
excluding one-off-exempt gains of Rs.512 million realized during 2004. growth was
31%. On comparable basis, pre-tax profit grew by 23% and after tax profits grew by
43%, over previous year. The effective tax rate reduced from 32% to 29% during the
year. The core-banking profits grew by 28%, and net mark up/interest income increased
by 34% during the year, mainly due to slight improvement in spread and substantial
increase in business volumes.

NON MARK-UP / NON INTEREST INCOME

The total non mark-up / non interest income recorded a decrease of 5% over last
year. This was mainly due to the one-off gains realized upon sale of certain long-term
investments, included in last year’s figure. Excluding such gains, non-mark-up / non-
interest income showed a healthy increase of 38%. Fee, commission and brokerage
income increased by 18%, benefited by the substantial increase in foreign trade and
guarantees business, while income from dealing in foreign currencies increased by a
significant 97% over the previous year.

OPERATING EXPENSES
During 2005, Askari Bank’s operating expenses increased by 40%. The increase
was primarily attributable to the expansion plan actively pursued by the Bank. Also,
during 2005, the Bank contributed Rs.30 million for the rehabilitation of the victims of
October 8, 2005 earthquake.

NPLS AND PROVISIONS AGAINST NPLS

During 2005, NPLs increased from Rs.1,101 million last year to Rs.2,373 million
due to addition of certain large exposures. While these NPLs are being closely monitored
for revival / recovery, Askari Bank appropriated Rs.639 million as previsions against
non-performing advances, against previous year’s Rs277 million. Out of the total
provision against NPLs charged during the year, 73% was specific, while the rest 27%
was general, including 17% general provision under the SBP prudential regulations for
consumer finances.
CURRENT, SAVINGS AND OTHER DEPOSITS
Customer deposits increased to Rs.118.8 billion by end 2005, and increase of 43%
over last year. The main contributors to this growth were fixed deposits, which increased
by 186% followed by saving deposits accounts, which increased 16% over the previous
year. The current accounts increased by 9%.

EARNINGS PER SHARE

Earnings per share increased by 43.4% to Rs.13.42 as compared to last year’s
Rs.9.4 worked out by excluding 2004 non-recurring gains.

SHAREHOLDERS’ FUNDS
The aggregate shareholders’ funds increased to Rs.8,578 million by end, 2005
from Rs.6,016 million last year. The increase was contributed by the profits earned
during the year, and the unrealized surplus on revaluation of investments, mainly equity
portfolio, increased from Rs.443 million last year to Rs.1,218 million. The return on
average shareholders funds decreased to 27.7% from 34.80% last year, mainly due to
one-off gains of 2004 not available this year.

RETURN ON AVERAGE ASSETS

Return on average assets was 2% for 2004. including one-off gains, and 1.5%
excluding gains. It was 1.6% during 2005. The average assets increased by 31% during
2005.

CAPITAL ADEQUACY
The capital adequacy ratio improved to 11% by December 31, 2005 from 8.53%at
end 2004. This increase is mainly attributable to increase in Tier 11 capital on account of
unsecured sub-ordinated loan in the shape of Term Finance Certificates, substantial
increase in revaluation of equity investment portfolios, and retained earnings.
 Summarised Quarterly Results – 2004 & 2005

01 02 03 04 01 02 03 04
Profit & Loss – For the quarter
Total income 1,167 1.852 1,484 1.617 1.988 2,311 2,881 3,153
Mark-up / return / interest 949 1,045 1,178 1,316 1,596 1.953 2,447 2,755
earned
Mark-up / return / interest 215 251 309 342 615 858 1,256 1,550
expensed
Net mark-up/interest incom 734 794 869 974 981 1,096 1,220 1,205
Provisions against non- 58 58 81 119 146 248 29 179
performin assest
Non – mark-up / intersest 218 807 306 301 392 358 405 397
income
Operating expenses 387 433 533 492 534 587 689 783
Operating Profit 565 1,168 642 783 839 867 936 819
Profit before tax 507 1,110 561 664 692 619 907 641
Taxation 202 237 227 254 227 220 336 53
Profit after taxation 305 873 334 410 465 399 570 588

Balance sheet – at quarter end

Assets
Advances 48,25 55,52 59,835 69,938 71,905 76,388 78,693 85,977
3 3
Investments 21,06 20,31 18,584 17,239 15,927 21,990 23,769 25,78
0 3
Cash, short term funds 16,70 16,44 25,389 15,936 14,822 23,950 19,206 27,489
& statutory deposits
6 1
with SBP
Operating fixed Assets 1,935 2,117 2,112 2,595 2,743 2,985 2,875 3,193
Other assets 1,584 1,622 1,756 1,460 1,806 1,972 2,639 2,733
Total assets 89,53 96,01 107,67 107,16 107,20 127,28 127,18 145,100
8 6 6 8 3 5 2

Liabilities
Customer deposits 66367 73003 77889 83319 80848 10364 97629 118795
 6
Borrowing from financial 14717 14596 20509 13782 14202 10959 15069 10562
institution
Sub-ordinated loans - - - 1000 1500 1500 2625 3000
Other liabilities 2936 2809 3490 3051 4260 4467 4119 4156
Total liabilities 84020 90408 10188 101152 10081 12057 11944 136513
8 0 2 2

Shareholder’s funds
Share capital 1256 1256 1256 1256 1507 1507 1507 1507
Reserves and unapprpriated 2951 3824 4158 4317 4513 4930 5501 5862
profit
Surplus on revaluation of 1311 528 374 443 355 276 732 1218
assets
Total shares’ funds 5518 5608 5788 6016 6393 6713 7740 8587

Ratios
Return on average 23.1% 62.8% 23.5% 27.8% 30.0% 24.4% 31.6%2 28.8%
shareholders’ funds
(ROE)
Return on average 1.4% 3.8% 1.3% 1.5% 1.7% 1.4% 1.8% 1.7%
assets
SWOT ANALYSIS
 “An assessment of the organization’s internal resources and capabilities and external
environmental opportunities is known as SWOT analysis.”

“SWOT analysis in an analysis of the organization’s strengths,

weaknesses, opportunities and threats.”

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 Bank Limited, Town Ship, Lahore, I have
come across the following SWOT analysis of the bank

SWOT ANALYSIS OF ASKARI BANK

STRENGTHS

LEADING PRIVATE SECTOR BANK:

Askari Bank Limited 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.

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 specially for those who appreciate only
the finest things in life, Priority Banking offers the very highest levels of personalized
banking to match customer’s 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 don’t
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.

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 SPECIALISATION

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 centralisation in the bank. Almost all the decision-
making is in the hands of the upper management. But centralisation 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.

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

Apart from the ones discussed in External Factors Evaluation Matrix, the bank is
facing the following threats and opportunities currently:

These are positive external environmental factors effecting the organization.

• 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 non-monetary 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
would be either the lost of market share or decrease in the charges resulting in lowering
the bank’s 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.
STRATEGIC MANAGEMENT
“The art and science of formulating, implementing and evaluating cross-functional
decisions that enable an organization to achieve its objectives.”

STRATEGIC MANAGEMENT PROCESS:

Perform
External
Audit

Genera Implement
Implemen
Establish t
Measure
Develo te strategies and
Long strategies
p Vision Evaluat Manageme evaluate
term Marketing
& e, and nt Issues performa
objective , Finance,
Mission select nce
s MIS
strategi Issues
Perform es
internal
audit

Stage1_________________Stage2___________________Stage3

The strategic management process consist of three stages

1. Strategy Formulation
2. Strategy Implementation
3. Strategy Evaluation

STARTEGY FORMULATION STAGE:

The strategy formulation stage includes the development of vision and mission,
identification of organization external opportunities, identification of the organizational
internal strengths and weaknesses, establishment of long term objectives, generation of
alternative strategies and selection of the pertinent strategies to pursue in the long run. On
the other hand, this stage also describes about the selection of business, allocation of
available resources, expansion of operations, entering into the new markets and the
conditions of mergers and joint ventures.

STARTEGY IMPLEMENTATION STAGE:

This stage requires a firm to establish annual objectives, devise policies, motivate
employees and allocate resources so that formulated strategies can be executed. As for
the purpose of achieving long term objectives the annual objectives are described and the
policies are established for them. By implementation of strategies, it is evident that
employees and the managers put the formulated strategies to action. That’s why this stage
is also called an action stage of strategic management.

STRATEGY EVALUATION STAGE:

It is the final stage in the strategic management process. The strategies, which are
implemented at the second stage, are now evaluated as hey are working in accordance
with the objectives or not. Besides it, all strategies are subject to future modification
because external and internal factors are constantly changing.

EXTERNAL AUDIT:
The purpose of an external audit is to develop a finite list of opportunities that
could benefit the organization and threats that should be avoided. There are lots of
factors, which are involved in determining the external environment, but certain key
variables are taken that offer actionable responses. The organization should have to
respond either offensively or defensively to the factors by formulating strategies that take
advantage of external opportunities or that minimize the impact of potential threats.

KEY EXTERNAL FACTORS:

External forces/ factors can be divided into five broad categories
1. Economic forces
 2. Social, Cultural, demographic and environmental forces
3. Political, Governmental and Legal forces
4. Technological forces
5. Competitive forces

OPPORTUNITIES FOR ASKARI BANK LIMITED

These are positive external environmental factors effecting the organization.

• 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 export

THREATS FOR ASKARI BANK LIMITED

• High Employees Turnover

• High charges
• Less attractive rate of return
• Stiff Competition
• Less Experienced Staff
EXTERNAL FACTOR EVALUATION MATRIX:

This Matrix summarizes and evaluates economic, social, culture, and

demographic, environmental, political, governmental, legal, technological and
competitive information. It shows the opportunities and threats that are faced by an
organization.

Weights:
0.0 = Not Important
1.0 = Very Important

Rating:
1 = The Response Is Poor
2 = The Response Is Average
3 = The Response Is Above Average
4 = The Response Is Superior
EXTERNAL FACTOR EVALUATION MATRIX

Key External Factors Weights Rating Weighted

Score
Opportunities
1 It deals in bulk business.
0.10 3 0.30
2. A large amount of foreign investment is
attracted 0.10 4 0.40
3. Strong potential for growth 0.05 2 0.10
4. Imports are increasing 0.05 4 0.20
5. Steady increase in Customer Deposits
0.15 3 0.45
6. Overseas Operations 0.03 3 0.09
7 Branches In Remote Areas 0.02 2 0.04

8 Islamic Banking 0.01 1 0.01

9. Sharp increase in imports and exports 0.04 3 0.12
Threats
1. High Employees Turnover 0.05 2 0.10
2. High charges 0.05 2 0.10
3. Less attractive rate of return
0.15 3 0.45
4. Stiff Competition 0.10 3 0.30
5. Less Experienced Staff 0.10 2 0.20
TOTAL 1.00 2.86

Explanation:

The above Matrix depicts the opportunities and threats that are faced by the bank.
The weighted score of EFE Matrix of the bank is 2.86 that is above average (2.5). So it
shows that the bank is responding to the existing opportunities and threats in banking
industry.
INTERNAL AUDIT:

All organizations have strengths and weaknesses in their functional areas of

business. For analyzing the internal situation of the organization with regard to its
management, marketing, finance, operations and research and development, internal audit
is performed. The internal audit is executed parallel to the external audit. This process
provides more opportunity for the participants and the managers to understand the key
areas within an organization.

KEY INTERNAL FORCES:

1. Marketing
2. Finance
3. Accounting
4. Management
5. Management Information System
6. Production/Operations

STRENGTHS OF ASKARI BANK LIMITED

LEADING PRIVATE SECTOR BANK:

• AUTOMATIC OPERATIONS:
• FULL DAY BANKING
• ATM NETWORK
• CUSTOMIZED SOLUTIONS
• CUSTOMER ORIENTED BANKING
• ELECTRONIC BANKING
• ELECTRONIC FUNDS TRANSFER
• PHONE BANKING
• ETHICAL CONCERNS AND PUBLIC IMAGE
WEAKNESSES OF ASKARI BANK LIMITED

• NOT HIGHLY AUTOMATED

• MANUAL BOOK-KEEPING
• LOW JOB SATISFACTION
• LACK OF SPECIALISATION
• CENTRALIZATION
• LACK OF TRAINING FACILITIES

INTERNAL FACTOR EVALUATION MATRIX:

This strategy-formulation tool summarizes and evaluates the major strengths and
weaknesses in the functional area of a business and it also provides a basis for identifying
and evaluating relationships among those areas. Intuitive judgments are required in
developing an IFE Matrix

Weights:
0.0 = Not Important
1.0 = All Important

RATING:
1 = Major Weakness
2 = Minor Weakness
3 = Minor Strength
4 = Major Strength
INTERNAL FACTOR EVALUATION MATRIX

Key Internal Factors Weights Rating Weighted

Score
Internal Strength
1. LEADING PRIVATE SECTOR BANK 0.10 3 0.30
2. AUTOMATIC OPERATIONS 0.05 4 0.20
3 FULL DAY BANKING 0.06 4 0.24
4 ATM NETWORK 0.04 3 0.12
5. CUSTOMIZED SOLUTIONS 0.05 4 0.20
6.CUSTOMER ORIENTED BANKING 0.07 4 0.28
7. ELECTRONIC BANKING 0.04 3 0.12
8 ELECTRONIC FUNDS TRANSFER 0.05 4 0.20
9 PHONE BANKING 0.03 4 0.12
10 ETHICAL CONCERNS AND PUBLIC 0.05 4 0.20
IMAGE
Internal Weaknesses

1 NOT HIGHLY AUTOMATED 0.05 2 0.10

2 MANUAL BOOK-KEEPING 0.10 1 0.10
3 LOW JOB SATISFACTION 0.05 2 0.10

4. LACK OF SPECIALISATION 0.05 2 0.10

5. CENTRALIZATION 0.06 2 0.12
6. LACK OF TRAINING FACILITIES 0.15 2 0.30
Total 1.00 2.80

Explanation:

The above Matrix comprises the strengths and weaknesses of Bank Askari Bank
Limited and the weighted score of the bank is 2.80 that is above average (2.5) so it
depicts that the bank has strong internal position
THE COMPETITIVE PROFILE MATRIX:

The Competitive Profile Matrix (CPM) identifies a firm’s major competitors and
its particular strengths and weaknesses in relation to a sample firm’s strategic position. In
CPM critical success factors are taken that include both internal and external issues. In a
CPM, the rating and total weighted score for rival firms can be compared with the sample
firm.

Weights:

0.0 = Not Important

1.0 = Very Important

Rating:

1 = Major Weakness
2 = Minor Weakness
3 = Minor Strength
4 = Major Strength
 COMPETITIVE PROFILE MATRIX

Askari Bank Bank Alfalah

Critical Success Weight Rating Score Rating Score

Factors

Customer 0.16 3 0.48 2 0.32

satisfaction
Branch network 0.12 2 0.24 3 0.36
Market share 0.09 4 0.36 4 0.36
Service quality 0.10 4 0.40 3 0.30
Advertising 0.05 2 0.10 3 0.15
Online facility 0.09 3 0.27 3 0.27
Full day banking 0.12 3 0.36 2 0.24
Employee 0.15 3 0.45 3 0.45
satisfaction

Financial position 0.12 4 0.48 3 0.36

TOTAL 3.14 2.81

EXPLANATION:

In the above Matrix, the position of Askari bank is stronger as compared to its
rival Bank Alfalah. 3.14 is the total of average weighted score that reveal the relative
strength of the firm against its competitor. The total weighted score of Bank Alfalah is
2.81 that show better position. But as compared to Askari Bank it is slightly less.

STRATEGY-FORMULATION FRAMEWORK:
Strategy-Formulation Framework can be integrated into three-stage decision
making framework
THE INPUT STAGE:

• External Factor Evaluation (EFE) Matrix

• Competitive Profile Matrix (CPM)
• Internal Factor Evaluation (IFE) Matrix

THE BOSTON CONSULTING GROUP

(BCG) MATRIX:

The BCG Matrix graphically portrays differences among divisions in terms of

relative market share position and industry growth rare.
Relative market share position is defined, as the ratio of a division’s own market
share in a particular industry to the market share held by the largest rival firm in that
industry.

QUESTION MARKS:

Division in Quadrant I have a low relative market share position, yet they
compete in a high-growth industry. Generally these firms’ cash needs are high and their
cash generation is low. These businesses are called Question Marks because the
organization must decide whether to strengthen them by pursuing an intensive strategy
(market penetration, market development, or product development) or to sell them.

STARS:
Firm that lies in this Quadrant (often called Stars) represent the organization’s
best long-run opportunities for growth and profitability. Divisions with a high relative
market share and a high industry growth rate should receive substantial investment or
maintain or strengthen their dominant positions.
 Forward, backward, and horizontal integration; market penetration; market
development; product development; and joint ventures are appropriate strategies for these
divisions to consider.

CASH COWS:

The organization that lies in this Quadrant has a high relative market share
position but compete in a low- growth industry. Called Cash because they generate cash
in excess of their needs, they are often milked.
Product development or concentric diversification may be attractive strategies for strong
Cash Cows. However, as a Cash Cow division becomes weak, retrenchment or
divestiture can become appropriate.

DOGS:

The organization that lies in this Quadrant has a low relative market share
position and competes in a slow- or no- market-growth industry; they are Dogs in the
firm’s portfolio. Because of their weak internal and external position, these businesses are
often liquidated, divested, or trimmed down through retrenchment. When a division first
becomes a Dog, retrenchment can be the best strategy to pursue because many Dogs have
bounced back, after strenuous asset and cost reduction, to become viable, profitable
divisions.
TRAINING PROGRAMME

INTERNSHIP EXPERIENCES

DIFFICULTIES FACED…
 One of the most important aims of the student life is to express herself correctly
and adequately. This was the believe in my mind when I first decided to go to Askari
Bank Limited to complete my internship program.

Determined, Confident and Persistent in the pursuit of knowledge and learning, I

was on my way to Askari Bank Limited, Town ship Branch in the early morning of July
1, 2005. Just a day before, I had taken my class of 3rd semester. Normally I wanted rest
and recreation after the tiring class in June but this time I was anxiously waiting for the
start of my internship.

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. every one 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 signature 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).

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 cheque books to the customer so
that they could withdraw their money whenever they like. The producer of issuance of
the cheque book is as follows:

For the customer who already has an account with the bank, the lastly consumed
cheque book requisition slip with the help of which a new cheque book is issued. And the
person who is going to open a new account for the first time gets the cheque book 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 cheque books 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.
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 cheque book 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 some one 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 a type 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 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).
 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.

CLEARING
This is a "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.

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, circular road, defence, Gulberg 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.

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 o fraud. The person
deposit cash and get demand draft. It is used for outstation payment.

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 protect 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.
• 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
DD’s are of the following types:

• Crossed DD: In the case of crossed DD the amount is deposited to the A/c
of the benificiary.
• Open DD: Incase of open DD the amount is handed over to the
benificiary at the cash counter.

TELEGARPH TRANSFTER

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 Applicant’s 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/-

If the account of benificiary 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 in formation 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 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 carrying the brand name "ASKCASH".
 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. 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 held 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.S

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.

THE PROBLEMS I 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. 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.
 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 adopt flexible policies, specially 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

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.