Askari Bank Limited

Student ID: MBHF10E115

Name: Binish Kanwal (2010-2012)
Binishkanwal1@gmail.com
Date of final report
University of Sargodha

Internship letter

Preface

Dedication
I dedicate my report to my brother who really helped me in the completion of such a
lengthy and complicated project

ACKNOWLEDGEMENT
First of all I am thankful to Almighty Allah who gave me knowledge and power to
make me able to complete my internship successfully.
I am also thankful to Department of Business Administration University of Sargodha,
who provides me this opportunity to have an experience in a reputed organization and
groom myself for the future professional responsibilities.
I shall also like to wish to acknowledge and show my deep gratitude to our respective
teacher, Ms. Madiha for her consistence, advice and support given during the writing
up of this report.
To Mr. Bilal Nasir System Admin ABL Lalamusa branch, I owe more than what I can
mention.his inspiring guidance, remarkable suggestions, constant encouragement,
keen interest, constructive criticism, and friendly discussion enabled me to complete
this report efficiently. Without his support and proper guidance, it would be almost
impossible to accomplish this task successfully.

EXECUTIVE SUMMERY
The Department of Business Administration offers Masters Degree in Business
Administration.

They are giving the best education and are offering for

specialization, financial management, marketing management, and human resource

management. An important program is six to eight weeks internship with any
recognized institution.
I decided to take up Askari Bank Limited for my internship because it is a competing
Bank nowadays and gives a good training to the internees. So in order to learn more
this was my choice.
This report is about my internship that I have undergone at Askari Bank Limited
Lalamusa Branch from 19th March 2012 to 28th April 2012. During my internship I
was able to learn practical aspect of business, and get good working experience.
On the very first day of my internship I reported to Operation Manager Mr. Zeeshan
Adil. He gave me small introduction of the Bank and introduced me to the staff of the
Bank. Every internee is rotated among the Banks departments and so was I. This
rotation is done in order to have general concept regarding Banks functions,
operations and policies. In this rotation the stay in department is usually a week. I
have learned more about the Basic Banking, HRM and have given below the caption
of activities I was involved in during the period of six weeks.

TABLE OF CONTENTS
1. INTRODUCTION
1.1. Banking History

10

1.2. An overview of Organization

10

1.3. Nature of the Organization

11

1.3.1 Vision Statement

11

1.3.2 Mission Statement

11

1.4. Branch Network

11

1.5. Main Features

12

1.5.1 Products of Bank

12

1.6 Business Volume

14

1.7 Competitors of Askari Bank

15

2. ORGANIZATIONAL STRUCTURE AND HIERARCHY

2.1. Organizational Structure

17

2.2. 2.2 Hierarchy Of HR Department

18

3. HRM PRACTICES FOLLOWED IN BANK

3.1. Planning

20

3.2. Recruitment

22

3.3. Selection

23

3.4. Training And Development

24

3.5. Orientation

25

3.6. Confirmation

25

3.7. Employee Development

25

3.8. Compensation

25

3.9. Performance Management

25

4. TOPIC OF STUDY DURING INTERNSHIP

4.1. Training

28

4.1.1. Hierarchy Of Training

28

4.1.2. Areas Of Training

28

4.1.3.

29

Who Need Training

4.1.4. Training Need Assessment Process

30

4.1.5. Training Methods

31
7

4.1.6. Evaluation Of Training Program

32

4.2. Employee Development

33

4.2.1. On Job Degree And Certifications

33

4.2.2. Assessment Centers

34

4.2.3. Performance Appraisal

34

4.2.4. Employee Assistance Program

34

5. SWOTANALYSIS
5.1

Strengths

34

5.2

Weaknesses

36

5.3

Opportunities

37

5.4

Threats

38

CONCLUSION

39

RECOMMENDATIONS

40

BIBLIOGRAPHY

41

Chapter 1

INTRODUCTION

1.1. Introduction of Banking Industry

1.1.1.

Banking Introduction

By G.W. Gilbert,
"A banker is a dealer in capital or more properly a dealer in money. He is an
intermediate party between the borrower and the lender. He borrows from one party
and lends to another." Under Banking Companies Ordinance 1962, {S: 3(B)}
Banker means person transacting the business of accepting for the purpose of lending
or investment, of deposits of money from the public, repayable on demand or
otherwise and withdraw able by cheques, draft, order or otherwise and includes any
Post Office Savings Bank."Banking is one of the most sensitive businesses all over
the world. Banks play very important role in the economy of a country. Banks are
guardian to the assets of the general stacks. The banking sector plays a noteworthy
role in a modern world of money and economy.

1.2 An Overview of organization:

Askari

Bank

Ltd (formerly Askari

Commercial

Bank)

was

incorporated

in Pakistan on October 9, 1991, as a private Company. It is the only bank in the world
run by an army; serving Adjutant General of Pakistan Army being head of the Board
of Governors. It started its operations on April 1, 1992. The bank principally deals
with banking, as defined in the Banking Companies Ordinance, 1962. The Bank is
listed on the Karachi, Lahore & Islamabad Stock Exchanges.
Askari Bank has expanded into a network of 212 branches. A shared network of 4,173
online ATMs covering all major cities in Pakistan supports the delivery channels for
customer service. Askari Bank achieved planned growth in business and operations
during 2009. The total assets of the Bank amounted to Rs.254 billion as at December
31, 2009, registering an increase of 23 percent over December 31, 2008.Customer
10

deposits reached Rs.206 billion by December 31, 2009, an increase of 23 percent over
December 31, 2008.
Profit after taxation showed an increase of 187% at Rs.1.11 billion, when compared
with last years Rs.386 million. The banking spread registered slight improvement
over last year, despite absorbing the adverse impact on net mark-up income due to
increased nonperforming advances. The Banks NPLs stood at Rs.17.73 billion as of
December 31, 2009 compared to Rs.11.69 billion at the end of previous year, an
increase of 52 percent.

1.3 NATURE OF ORGANIZATON:

1.3.1 VISION STATEMENT:
To be the of Bank first choice in the region

1.3.2 MISSION STATEMENT:

To be the leading private sector bank in Pakistan with an international presence,
delivering quality service through innovative technology and effective human
resource management in a modern and progressive organizational culture of
meritocracy, maintaining high ethical and professional standards, while providing
enhanced value to all our stakeholders, and contributing to society.

1.4 BRANCH NETWORK:

The system of Regional and Area offices has been introduced since 1999
for effective supervision and control of branches. The Bank's branch network has
been divided into 3 regions:
All branches

212

North Region

72

Central Regions

69

South Region

71

11

1.5 MAIN FEATURES

1.5.1 PORDUCTS OF ASKARI BANK LIMITED:
AGRICULTURE BANKING
KISSAN EVER GREEN FINANCE
Features

Details

Product Types

Profit Earning Account.

Benefits

A special cheque book is issued to the farmer.

Automatic renewal upon adjustment of entire Principal amount with markup once in a year.
The account is farmer friendly which benefits the farmers both ways. If the
account is in credit, it earns profit; otherwise it provides instant finance, to
the farmer for his agriculture needs.

KISSAN AABPASHI FINANCE

Features

Details

Product Types

To finance installation of Tube-Wells (electric, diesel and solar energy

units) water management equipments and water channel development etc.

Benefits

Help farmers to make optimum use of limited water resources.

To facilitate the farmer, to overcome the scarcity of water.
To develop mechanical water resources, sprinkler and drip system etc.

KISSAN LIVESTOCK DEVELOPMENT FINANCE

Features

Details

Product Types

To purchase Milch Animals, Goats, Sheep, Poultry and Fisheries without

incurring extra expenditure because of availability at his farm.

Benefits

The program will provide regular day to day income to the farmer to meet
his own consumption and surplus to be marketed.
This will revive / accelerate and supplement the income generating capacity.
12

It will enhance the repayment capacity of the farmer.

KISSAN FARM MECHANIZATION FINANCE

Features

Details

Product Types

Finance for farm equipment, trailer, thresher & drills etc.

Benefits

Under this program the farmer will get benefit of use of modern
agricultural tools, implements and equipments which are cost and time
effective.
Improves per acre yield of agri crops and quality of agriculture produce to
get good price in the market.
Helps to match / compete with international standards for exportable
agriculture produce.

BRANCH BANKING

Value plus deposit:

Askari Bank has introduced value plus deposit account, which gives assurance of
immense financial autonomy & protection. Now anybody can open value plus account
at Askari Bank its great way of normal checking account.
ASKARI PAISHGI MUNAFA TERM DEPOSIT
Features

Details

Product Types

Term Deposit.

Benefits

Financing Facility up to 80% of Principal amount.

Free Visa Debit Card issuance.
No Minimum Balance requirement in checking account.

ASKARI PAISHGI MUNAFA TERM DEPOSIT

Features

Details

Facility:

Investment Certificates.

Important

Free issuance and free encashment.

13

Features:

Account relationship with Askari Bank is not mandatory.

No penalty on pre-mature encashment.

Travelers Cheques
Askari Bank limited has always introduced remarkable products in banking sector, in
this way TC is also greater launched product of Askari Bank. Askari Bank provides
TC to its customers to use that at the every place of world on the place of money.
Unlike money, TC is much suitable to carry from one place to another.
Askari Mahana Bachat Account
Askari Bank provides deposit facility to its sole customers with the choice of 1 to 3
years period. It has been created keeping in view saving requirement of sole investors.
Sole investors dont wish to mold or block their funds for long period with a
competitive ratio of return payment on the 1st of every month. Askari Bank has up to
90% financial facility available for customers, if they need.
CONSUMER BANKING
ASKARI CARD
Askari Bank provides Askari debit card which help its customers at the every aspect
of life. Askari card is your shopping partner which upgrades quality of life by
permitting you to do shopping, fare at restaurant, transfer funds, withdraw & deposit
cash through ATM from any where, at any time.
Mortgage Finance
Askari in order to purchase or get construction of home, though this is the great
opportunity of Askari Bank to its customers. Bank provides mortgage facility to its
customers.
Personal Finance

14

Askari Bank provides personnel finance product which helps to its borrowers to come
up with all the inelastic demands. This can be pay back to bank on easy installments.
1.6 Business volume:

Asset over Rs 206 billion

Over 8 laces customers

1.7 Competitors of the Askari Bank:

National Bank of Pakistan

Meezan Bank Limited

Allied Bank Limited

MCB Bank Limited

United Bank Limited

Habib Bank Limited

15

Chapter 2

ORGANIZATIONAL
STRUCTURE

16

2.1 Organizational Structure:

President
Commercial
& Real
Banking
Chief

Operations
Group Chief

Regional
Business
Chief

Corporate Head North &

Corporate Head South

Regional
Operation
Chief

Brach
Manager

Risk
Management
Group Chief
Regional Risk
Management Chief

Credit Dept.
of Region

Audit
Inspection
Group Chief

Corporate Investment
Banking Group Chief

Regional
Compliance
Chief

Branch
Credit
Officer

Area
Audit
Chiefs

Regional
Marketing
Manager

Operations
dept if
Region

Special Asset
Management
Chief
HRM Group
Chief

Regional
G.M. HRM

17

Branch
Operation
Manager

2.2 Hierarchy Chart:

President

HR Head

Assistant Vice President-HR

Operating Grade 2

Operating Grade 2

Junior Officer

18

Operating Grade 3

Chapter 3

HRM PRACTICES

19

3.1 HRM Practices Followed In Askari Bank:

This section includes a summary of the HRM practices followed in Askari Bank and a
detailed study of Training and Development.
The most important Division at the Head Office is responsible for
h u m a n r e s o u r c e management, including:
Planning
Recruitment and Staffing
Training Development
Compensation
Performance management
E m p l o ye e r e l a t i o n a n d E v a l u a t i o n
The Division also handles matters relating to administration that proves an integrative
linkage between HRD and Administration. Different practices are briefly summarized
as follows:
3.1.2 Planning:
HR Department is responsible for an effective HR planning regarding
demand and supply of employees and forecasting for these practices.
3.1.3 Forecasting Employee Demand:
Employee demand at Askari Bank is derived from following factors;
Internal Growth:
Opening a new branch
Setting up New Technology.
Changes in Customer Demand.
New Services
3.1.4 Forecasting Employee Supply:
HRD at Askari Bank ensures the employee supply on following basis;

20

1. Transfers:
Askari Bank transfers its employees from one branch to other branch within the same
region, especially whenever a new branch is opened.
2. Internal Movements:
Internal movements, which include promotions and rightsizing, are a part of supply.
3. Rotations:
Job rotations are also done within the departments from time to time to decrease the
monotony and to make up interest in the job. It is most common for On Job Training
of MTOs.
4. Overtime:
To compensate the workload, most of the employees voluntarily work over-time at
their jobs. As the employees are not forced to work over-times they are not paid for
this overtime. Sometime the supervisors also ask their subordinates to work overtime. Apart from this, there are night shifts working in Electronic Technology
Department (ETD) at Askari Bank. It is done whenever there is a workload regarding
the making of ATM and Credit cards etc.
5. Temporary / Contractual:
Temporary and Contractual employees also work in Askari Bank normally intend
who work as Hardware Technicians and Software Engineers etc. The same are
sometimes contracted from different Software Houses. Other than this all the
employee at Askari Bank is not permanent, most of them are at contract (employment
at will)
6. Employee Shortage:
As Askari Bank has currently a growth strategy and for that ASKARI BANK is
opening five to six branches every year at national level. This makes an employee
shortage for Askari Bank, but Askari Bank covers it by hiring in following two
categories.

Management Trainee Officers. (Recruited once in a year)

21

Junior Officers. (Recruited according to the need)

3.2 Recruitment:
Askari Bank recruits both fresh and experienced persons on regular basis to support
its growth strategy. A part from this, Askari Bank recruits in both categories (MTOs
& JO) as discussed above. For this Askari Bank uses following internal and external
recruitment sources;
1. Newspapers
Askari Bank advertises the vacancies in popular newspapers, which can either be in
English or Urdu papers according the job and situation.
2. Website
Askari Bank has its own website, where it advertises the vacancies. It also has
electronic data bank where the interested persons apply for the jobs.
3. Direct Applicants
Fresh graduates keep on submitting their CVs to the HR Department from time to
time. HRD selects the effective persons for interview and tests whenever a job is
vacant

22

3.3 SELECTION PROCESS:

After the recruitment the selection of most reliable and efficient persons is done at
Askari Bank under the supervision of HR personals.
The selection process at ASKARI BANK is sequenced as follows;

INPUT

HR Activities

Job Analysis

Orientation
Training
Development
Career Planning
Performance
Evaluation
Compensation
Assessment

Recruit

Selection

HR Planner

23

1. E n t r y L e v e l T e s t :
After recruitment all the candidates have to give an entry-level test. Test is comprised
of, General Knowledge, English, Math, Accounting and other subjects which might
vary according to the caliber of the job. Those who clear the test are proposed to
proceed further for the selection process and the remaining are short-listed.
2. F i r s t I n t e r v i e w :
The selected candidates have to take the 1st interview, which is conducted by a team
of Subject Matter Experts Including HR officials. The candidates area gain short
listed by the interviewers.
3. S e c o n d I n t e r v i e w :
Now the Vice President - Human Resource, again interviews the next selected lot.
4. T h i r d I n t e r v i e w :
Finally, Senior Vice President of HR interviews the successful candidates.
5. M e d i c a l T e s t :
The selected candidates submit their medical reports of the required medical tests. If a
candidate is medically unfit, he or she is given a recovery period of 3 4 months.
3.4 Training and Development:
Askari Bank also conducts the training of the selected candidates, which is conducted
by the Training Wing in alliance with HR and other related departments. The high
leverage training is done in two main areas;

Banking (General Banking, Credit Division, Foreign Trade):

Personality Development

As hiring is done in two categories (MTO and JO), so because of the difference in
ranking and working methodology, the training needs for both are varied. Among
various training methods, classroom and OJT are most commonly in practice in
Askari Bank. Other than the training of new hires, there are more than 50Refresher
Courses for the improvement and development of current employees.
24

3.5ORIENTATION
At Askari Bank the orientation period is two weeks. During this time the
employees are given information about the job, the people around them,
organizational accomplishments and the future prospects of the company.
3.6 CONFIRMATIONS:
All new hiring will remain on probation for six months. Confirmation as a
permanent employee will be based on the satisfactory replies from at least three
personal references including former employers as shown on the application form.
Usually the most valuable references are from previous employers. Where necessary
personal contact with previous employers should be established

3.7 Employee Development:

Regarding employee development, following approaches are followed by Askari
Bank:
On Job Degrees and Certifications
Sabbaticals for Training
Assessment Centers
Performance Appraisals
Employee Assistance Program
Interpersonal Relationship Development

3.8 Compensation: HRD of Askari Bank has kept its compensation and equity practice confidential.

3.9Performance Management: Askari Bank has an effective performance management system. HRD in alliance with
the different departments evaluates the performance of employees at annual basis.
For this, Annual Performance Report (APR) of each employee is made and 360
feedback is used as a tool for completion of APR...In APR employees are evaluated
on basis of following skills and are graded on scale of grades starting from A to E,
which have different percentages.
25

 Leadership Qualities
Marketing Skills
Productivity
Initiative
Communication Job Knowledge
Technical Knowledge. Etc.
This is the most important practice of HRD as, the promotions, increase in salary;
training needs of an employee etc. all are dependent on it.

26

Chapter 4

STUDY DURING INTERNSHIP

27

TOPIC OF STUDY DURING INTERNSHIP

During my internship I studied the training and development process of Askari Bank
4.1 Training at ASKARI BANK:
As priory written in the scope of study that Askari Bank is managing its training
needs from a single Training Center, so it is feasible to elaborate some facts about the
Training Center before breaking the training methodology. The training center was
established in 1999, since then it is managing the training needs of Punjab, NWFP
and AJK region. It also handles the S indh and Baluchistan Region in
alliance with main branch of Karachi. For Sindh and Baluchistan, Training
camps work to fulfill the needs of the region, this is done 3 4 times in a year
4.1.1 HIRARCHY OF TRAINING CENTER:
President

HR Division

Training wing

Training wing

Mr. Shahaid
Iqbal(Grade 1 Officer )

Mr. Irfan (Grade 3

Officer)

4.1.2 Areas of Training

The training at Askari Bank is done at two broad areas, which are further
categorized, these are:

Banking

General Banking

Credit Division.

Foreign Trade.
28

Personality Development:

Management. (Leadership & Controlling etc)

Marketing and Selling.

Behavior Modeling. (Personality development)

Communication Skills. Etc.

Information Technology training is also given to the related employees in

collaboration with the Electronic Technology Department (ETD)
4.1.3 Who Need Training
The new hires always need training. There are two types of new hires;
1) Fresh Hires:
Fresh employees are those who have recently completed their studies and have nor
little

experience

of

banking.

Such

employees

need

to

attend

a formal training session to get aware of banking technicalities. These fresh selected
employees are c a t e g o r i z e d i n t w o s e p a r a t e p a r t s a c c o r d i n g t o t h e i r
p o s t s ; h e n c e t h e t r a i n i n g methodology of both differs with each other.
a) Management Trainee Officers (MTO)
MTOs are hired only once in a year, and they are selected for middle level executive
posts, so their training is quite complex as compared to JOs. After the selection, they
have a Theoretical Training Session of 2 3 months followed by On Job Training
(OJT)

(33)

for

further

years.

The

theoretical

training

session

is

conducted by the Training Center, where formal lectures and pres

e n t a t i o n techniques are adopted. Whereas , the OJT is conducted at the relevant
branch and department. MTOs get training in all the areas of banking, i.e. General
Banking, Credit, Foreign Trade and Personality Development.
b) Junior Officers (JO)
Junior Officers are hired according to the needs of different branches and
departments. There work is non-managerial and clerical in nature, so their training
needs are not as complex as of MTOs. After the selection, JO have

to

a t t e n d o n l y a 2 w e e k s Theoretical Training Session. T h e y g e t training

29

only in the General Banking and Personality Development and not in Credit and
Foreign Trade. No OJT is conducted for JOs.
2) Experienced Hires:
Experienced employees are those who have already worked in other banks at
executive posts. Such employees do not need any formal training session; they are
informally trained in their specific area.
3) Current Employees:
Askari Bank offers more than 50 Refresher Courses in different aspects of banking, so
that the training needs of current employees are fulfilled.
4.1.4 Training Need Assessment Process
The identification that either the training of current employees is necessary or not
depends on the results of Annual Performance Report (attached in annexure).In APR
the Training Pressure Points might be the following one;

Poor Performance of Employees

Lack of Skills in Employees

Employee Himself Asks For Training

His Boss Identifies Him For Training

Other than APR, following are also some of the valid reasons for conducting the
training program.

New Hires.

NewTechnology

Internal Growth. (New Branch)

New Services

1. Organizational Analysis:
The Head Office supports the training program by providing finance and
peer appreciation. An
Annual Budget is allotted to the Training Wing for conducting the training program.

30

2. Person Analysis:
The APR exactly identifies that who needs training, and is it really a training
problem. APR is evaluated by using the most effective tool, 360 Feedback a n d A P R
is

checked

by

the

reporting

officer

and

rechecked

by

s e n i o r reporting officer, so there is no doubt about the identification of

the training need of an employee
3. Task Analysis:
The task and duties that require training are also specified in the APR. In the APR the
Boss might recommend the areas of training, or the employee himself may identify
the tasks and duties for which he needs training.
4. Ensuring Employee Readiness
The relevant department of whose employee is requiring a training session
ensures the particular employee that h e c a n l e a r n t h e t a s k o r d u t y .
Further they also ensure the employee / trainee that it will be beneficial for him
and for the organization both
5. Creating a Learning Environment
In OJT, all the branches and departments of Askari Bank maintain a learning
environment to enhance the training by;
Job Rotation.
Valuing of Employees.
Appreciation Certificates. Etc.
6. Sharing / Transfer of Training
Informally in all jobs the trained and experienced employees share their knowledge
with the new hires and those employees who are suffering with their tasks. But in
Elec. Tech.Deptt. (ETD) it is done formally by the technicians
4.1.5 Training Methods
Among the various training methods, Askari Bank is using the following methods to
trains its employees.
31

1. Class Room Instructions

The Training Wing of ASKARI BANK commonly uses it. JOs have 2
weeks session of classroom training. MTOs have 3 months session of
classroom training, which covers all the three areas of banking. Followings are the
parts of classroom training session.
Business Games
Case Studies
Research Topics
Written and Oral Assignments
Role Plays
2. On Job Training (OJT)
It is the second most commonly used method of training in Askari Bank.
Only MTOs have an OJT session. Job Rotation is the main ingredient of OJT.
3. Degrees & Certifications
Other than full time degrees and certificates, Askari Bank has more than 50 Refresher
Courses for current employees to enhance their skills.
Team Learning.
Behavior Modeling.
* Audio Visual Aids and Multimedia are used in the training sessions. Furthermost of
the training sessions are conducted in 5 Star hotels.
4.1.6 Evaluation of Training Program
The Training Wing in alliance with HR evaluates its training program as follows;
The most important way to evaluate the training program is by
c h e c k i n g t h e linkage with the objective and goals of the bank / high leverage
training.
By measuring the effects on organization.
By Cost Benefit Analysis / Budgeting.
By checking the employee reaction.
32

1. Evaluation of Trainees
At the completion of training session, the
t r a i n i n g W i n g e v a l u a t e s e a c h t r a i n e e i n following ways;
By Pre-test Post-test.
By testing the employees during the session.
Askari Bank conducts quizzes and evaluates the written & oral assignments.
2. Cross Cultural Training
There is an informal cross-cultural training of employees in Askari Bank for
its branch in Bahrin.
3. Reward System
A s k a r i B a n k h a s a r e w a r d s ys t e m f o r t h e t r a i n e e s w h o p e r f o r m
b e t t e r d u r i n g t h e t r a i n i n g session, which are in shape of;

Appreciation Letters

Shields. Etc.

* Courses are normally conducted at Five Star Hotels, which are a

motivating factor for trainees.
4.2 Employee Development at Askari Bank: Development of employees in Askari Bank is done under following approaches;
4.2.1 On Job Degrees and Certifications:
At Askari Bank every employee is given an opportunity to do extra degrees and
certifications in his field or where he / she are lacking skills. E.g. MBA- Executive
and

others.

Refresher courses

Askari

Bank has also more than 50

in different area of banking and

management.

Employees are fully supported at Askari Bank to take these courses and degrees.

33

For refresher courses, which are usually not longer than 7 to 10 days,
sabbaticals are given to the employees. This motivates the employees to take these
courses whenever an opportunity is there
4.2.2 Assessment Centers:
Leaderless group discussions are occasionally held at all branches and
departments followed by conferences at meetings between employees and among
executives and board of directors on regular basis, for the whole day,
normally after the banking hours. During training sessions Role Plays are also
given to employees, which help them to develop themselves.
4.2.3 Performance Appraisals:
The most important source of employee development which results in
the promotions, rightsizing, increase in salary, perks and benefits is done
enable with the help of 360 feedbacks.
4.2.4 Employee Assistance Program:
All employees at Askari Bank are given the opportunity to get themselves
proper training in their desired areas, Employees do an informal counseling with
the i r s u p e r v i s o r s f o r i m p r o v e m e n t i n t h e i r w o r k a n d a l s o i n
c a r e e r development

7. SWOT ANALYSIS:
STRENGTHS:
1. Network :
Network is a major strength Askari Bank has. Askari Bank is a Pakistani
Bank with the most extensive and comprehensive global network that open up new
opportunities in near future. Their up graded technological infrastructure is also
important which provides uniform service system across the Banks network that will
allow much higher levels of efficiency and customer service.

34

2. Customer Relationship:
The Bank has a distinctive client focus with a view of attaining greater
customer satisfaction. Continual efforts are made by the Bank to revisit customer
needs and for improving customer services. Management continues to
further rationalize Banks network with a view of improving efficiency.
The

trust

associated

with

Askari

strength to stand out. The bank

Bank

continues

is

also its

to re-engineer

p r o c e s s e s a n d centralize functions to make Askari Bank services more cost

efficient to improve customer r e s p o n s e .
Bank commitment to provide customers with banking facilities of
a n international standard and its policies towards modernization helps
them gain more strength. The survival of a service organization like Askari Bank is
dependent on superior customer s e r v i c e a n d r e l e v a n t p r o d u c t s .
Askari

Bank strong culture of customer service and

satisfaction reflects Askari

B a n k d i s t i n c t i v e c o m p e t e n c e . T h e y v a l u e t h e i r c u s t o m e r business
and want to seek satisfaction. Thats why a very strong population of
1.5million users supports them

3. International Operations:
The international

operations of

ASKARI

BANK

a l l o w i t t o g e t b e n e f i t f r o m s yn e r g i e s
o f countries within specific geographical
areas. International operations are segmented
into regional businesses by formation of six major regiona
l c e n t e r s v i z U K , continental Europe, Africa, Middle East, Asia Pacific and
USA.

35

WEAKNESES:
1. Promotion:
ASKARI BANK is not promoting its ATM services which are a major
weakness. They can change their target market or at new target markets
through promotion for example they can promote the uses of ATM such as its use
at vacations.
2. Cash Withdrawal Limit:
One

of the

weaknesses of

ASKARI

BANK

ATM

is that

they

have prescribed cash withdrawal limit for all kinds of customers where as
ASKARI BANK ATM offers no cash withdrawal limit. They have cyclic withdrawal
limit which allows each customer to have his own cash withdrawal limit
3. Payment Of Utility Bills:
There is no facility offered by ASKARI BANK for payment of utility bills but it is
possible on NBPATM.
4. Transfer Of Funds:
No facility on behalf of ASKARI BANK ATM is offered regarding
transfer of funds betweenPLS savings account and current account of same
customer through same ATM card.
5. Shortage Of ATMs:
ATMs, despite of ASKARI BANKs extensive and comprehensive network is still
unavailable in many of its branches. Similarly there are some profitable
geographical locations where there are prospects of increased profitability
for example an ATM at Murreemeans new segment for ASKARI BANK.
6. ATMsworking:
ASKARI BANK ATMs are usually out of work without any
n o t i f i c a t i o n t o c u s t o m e r s a s compared to MCB, which advertises in
newspapers that a certain machine is out of order . Moreover one of their

36

customers also mentioned in a survey that the machines out of order mostly at
weekends.
OPPORTUNITIES:
1. Use Of ATM as a Credit Card:
It can be an opportunity for ASKARI BANK to introduce ATM also as a credit card
which will invite a different segment and which will improve profitability.
They can also cut costs in this way.
2. Technological Improvements:
Various technological improvements may lead to success for ASKARI BANK If
ASKARI BANK opens up its deposit box facility for customers it can
heavily increase its profitability. If implemented this opportunity can be a
competitive advantage as well.
Askari Bank can also implement the conversion facility for example if the
ATM receives the request for payment of amount in dollars then it should pay the
customer in Dollars. They can make ATM more attractive and enjoyable
place to come rather than a bossy bore environment. To provide customers with
an enjoyable event whenever they visit the A T M t h e y c a n c h a n g e t h e i r
m a c h i n e s t yl e s , h a v e v a r i a t i o n s i n c o l o r s a n d a d d a u d i o instructions
following the transactions. As Internet and World Wide Web usage continues to
increase ASKARI BANK should extend its exploitation of this market by
acquiring

and

merging

with

companies

with

specialized

technological expertise. Although this expansion is costly they sh

o u l d e x p l o i t t h i s strategic niche and take advantage of this opportunity in
external environment. I n o r d e r t o i n c r e a s e t h e i r m a r k e t s h a r e A S K A R I
B A N K s h o u l d e x p a n d i t s A T M n e t w o r k . B y opening ATM sites where it
can target new markets is essentially good for competition as well it is profitable.
They can look out for any sick units that are not as profitable as the ones intended to
be opened.

37

3. Improving customer focus:

ASKARI
BANKs commitment to making substantial investment in t
echnology (planned

expenditure of USD 20-25 million over

n e x t t h r e e ye a r s ) t o p r o v i d e c u s t o m e r s w i t h banking facilities of an
international standard is an opportunity for making technological improvements in
this business.
4. Illiterate People:
Illiterate people are also an opportunity for ASKARI BANK in regarding
this service. ASKARI BANK cons e r v e s

these

people

by

giving

instructions in Audio and in Urdu. They can also have

Instructions written in Urdu on card or even they can have a display in
Urdu. They can increase their target market, market share and profitability.
THREATS:
1. Economic Environment:
Economic environment is a major threat to ATMs success .For example in
2000when the government embarked on an economic revival plan with a complete
task of resource mobilization, GDP growth and poverty alleviation in a
different

economic

environment with continued international sanctions. During the y

e a r d o m e s t i c demand though improving still remained weak and fiscal constraints
did not allow the government to increase development expenditure and boost
demand.;
2. Political/Legal environment:
Law and order situation has a direct impact on how frequently or how
many people use ATM. Also legal obligations also hinder/pose threat to
ATM availability. For example there is a rule that he two ATMs should be
at

least

kms

away

from

each

other. If there are strict regulations on this policy then it

38

i s a t h r e a t t o A T availability for example there is an ATM in

M e l o d y a n d a l s o a t A a b p a r a s o i t i s important that legal environment is
positive and firm enough to pose threat to Banks activities.
3. Expense Base:
The expense base will be a major threat to the ATM because it will impact the need to
spend in order to modernize ASKARI BANKs customer interface. Expenditure has
to be incurred on Branch rationalization and computerization. This expenditure is
essential, given poor infra structure at Branch level resulting from years of
underinvestment. Because 90million is sufficient money to invest to open an ATM
there should be a strong expense base to support the expansion of ATM
8. CONCLUSION:
Organizations exist when two or more people work towards achieving
common goals. An organization can never be better than the people it hires. Hence we
have to get the best to be the best because the performance of the employees reflects
the companys image and standing in the market. Out of the three Ms i.e. Man,
Money & Machine, probably the human dimension is of the utmost
importance. Hiring employees is not the sole objective rather the primary goals to
devise a tool that can help the organization attract, maintain, retain and
motivate them enough to give their best to the organization.
Training and development is therefore the first step towards success. Better the
quality of the employees better the performance of the company. An organizations
ability to meet the training and development challenges provides an
opportunity to make significant contribution to the company. With better quality
people
e x e c u t i n g t h e c o m p a n y s o p e r a t i o n s t h e H R d e p a r t m e n t c a n c r e a t e
a c o m p e t i t i v e advantage for the company.

39

9. Recommendations:
After analyzing the Training and Development practice following recommendations is
made:
To fulfill the Training Needs of the more than 50 branches of
Askari Bank, it needs to d e c e n t r a l i z e i t s T r a i n i n g C e n t e r s
a n d s h o u l d o p e n a n e w T r a i n i n g C e n t e r f o r Karachi Region.
For time being to share the burden of Training, more instructors should be
hired for the Training Wing.
Like Bank Alfalah, wherever the Training Department is
u n a b l e t o p r o v i d e focused training for certain groups of staff,
reputable external trainers are invited to fill the gap, Askari Bank should
also outsource trainers in such cases.
New performance measurement approaches like, Manage
ment by Objectives

(MBO) and Productivity Measurement &

Evaluation System (ProMES) should be adopted to make the results more

accurate as the bank is in growth stage.
In 360 Feedback methods, there are chances of errors due biasness and
halo-factor. To avoid this error, Rater Error Training and Rater
Accuracy Training should be given to the employees.
Regarding Development,

MyersBriggs

Types

should be applied to enhance the employee development process.

If possible, bank should arrange externships for so
m e e m p l o y e e s i n o t h e r reputable banks, to bring up new ideas
and more accuracy in Askari Bank.
Mentoring program should be started to excel in the training of employees
Distance Learning is also required to adopt, until a new training center is
opened, especially for the branch in Bahrin.
HRM Information System (HRIS) should be implemented in the
Head Office, which should be further connected with all branches for
more efficient working of HRD, especially with the Bahrin Branch of
ASKARI BANK

40

BIBLIOGRAPHY:

References:

2. Websites

www.askaribank.com
http://www.bankalfalah.com/careers/Manage_careers.asp
www.sbp.org.pk

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