IrfanInayat 2

Chapter I
1. What is Banking?
Banking, in its most primeval practice, can be traced back to 2000 BC in Babylonia; a more
evolved and relatively modern form of banking dates back to early 14th century in Italy.
The term bank is derived from the Italian word "banca". The Jews of Lombardy (a province
in Italy) used to transact money sitting on benches placed in market places. Those benches
were called 'banca meaning the money changers place. Banca later convened into the
word "bank". The first modern bank, Bank of St. George, was founded in Italy in 1406. In
the beginning banking operations were restricted to the giving and taking of money, whereas
today they are engaged in performing many other financial activities like management of
investment funds, credit operations and insurance activities.
A bank is defined as an institution which has been licensed by the Central Bank of its country to
accept deposits repayable on demand or otherwise, and withdrawal by cheques, draft, order or
otherwise. This definition also includes specialized banks such as agricultural banks, investment
banks, SME banks, microfinance banks and Post Office Saving Banks, etc. A bank can also be
defined as an institution whose primary activity is to act as a payment agent for customers to
borrow and lend".
According to the Banking Companies Ordinance 1962 Sub Section (c): "Banking Company
means any company that transacts the business of banking in Pakistan and includes their
branches and subsidiaries functioning outside Pakistan of banking companies incorporated in
Pakistan inserted by Finance Act 2007)". Section 13 of the Banking Companies Ordinance deals
with the minimum paid-up capital and reserve requirement for the commencement of banking
business in Pakistan. The authority to alter this requirement lies with the State Bank of Pakistan.
G.C UNIVERSITY Lahore
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1.1 Types of Banks

There are various types of banks. The necessity for the variety among these banks is because
each bank is specialized in its own field. Each bank has its own principles and policies. Different
rates of interests are also noted among these banks.
Following are the types of Banks nowadays:
1. Savings Banks
2. Commercial Banks
3. Industrial Development Bank
4. Land Developments Bank
5. Indigenous Banks
6. Mortgage Banks
7. Spare Bank
8. Federal or National Banks
9. Co-operative Banks
10. Exchange Banks
11.
Consumers Bank
12.
Community Development Banks
13.
Credit Unions
14.
Private Banks
15.
Offshore Banks
16.
Ethical Banks
17.
Investment Banks
18.
Merchant Banks
19.
Universal Banks
20. Islamic Banks
1.1.1 Savings Banks

A savings bank is a financial institution whose primary purpose is accepting savings deposits and
paying interest on those deposits. They originated in Europe during the 18th century with the aim
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of providing access to savings products to all levels in the population. Often associated with
social good these early banks were often designed to encourage low income people to save
money and have access to banking services. They were set up by governments or by or socially
committed groups or organisations such as with credit. The structure and legislation took many
different forms in different countries over the 20th century. The advent of internet banking at the
end of the 20th century saw a new phase in savings banks with the online savings bank that paid
higher levels of interest in return for clients only having access over the web
1.1.2 Commercial Banks

A commercial bank is a type of bank that provides services such as accepting deposits, making
business loans, and offering basic investment products. Commercial bank can also refer to a bank
or a division of a bank that mostly deals with deposits and loans from corporations or large
businesses, as opposed to individual members of the public (retail banking).In the United States
the term "commercial bank" was often used to distinguish it from an investment bank due to
differences in bank regulation. After the Great Depression, through the GlassSeagull Act, the
U.S. Congress required that commercial banks only engage in banking activities, whereas
investment banks were limited to capital market activities. This separation was mostly repealed
in 1999 by the GrammLeachBliley Act but was restored by the Volcker Rule, implemented in
January 2014 as part of the Dodd-Frank Act of 2010(2)
1.1.3 Industrial Development Bank

Industrial Development Bank of Pakistan (IDBP) is one of Pakistan's oldest development
financing institutions and was created with the primary objective of extending term finance for
investment in the manufacturing sector of the economy. Over the years, however, the Bank has
become an institution fostering the growth of Small and Medium Enterprises in the rural/less
developed regions of the country. Industrial Development Bank of Pakistan is wholly owned by
Pakistani government entities with 57% of its shares held by the Federal Government, 36% by
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the State Bank of Pakistan and 7% by provincial governments and other public sector
corporations. Its Board of Directors consists of representatives of the private sector appointed by
the Ministry of Finance. The IDBP has suffered from significant losses due to loan defaults. [1] By
the mid-2000s, the IDBP had accumulated a loss of about Rs27 billion and was insolvent. The
Pakistani government merged IBDP with the profitable Investment Corporation of Pakistan in
2006[2] in part to improve IBDP's financial performance. Industrial Development Bank of
Pakistan is located in Karachi, Sindh, Pakistan. It is among the oldest financing institutions in
Pakistan. The bank continued to struggle commercially and by end of 2009 the accumulated
deficit had risen to Rs28 billion. [3] The Pakistani government continues to explore ways to make
IDBP economically viable(3)
1.1.4
Land Developments Bank

A land development bank abbreviated LDB, is a special kind of bank in India, and is of quasicommercial type that provides services such as accepting deposits, making business loans, and
offering basic investment products. The main objective of the LDB is to promote the
development of land, agriculture and increase the agricultural production. The LDB provides
long-term finance to members directly through its branches
1.1.5 Indigenous Banks

Indigenous Banks means money lenders and shakers. They collect deposits from general public
and grant loans to the needy persons out of their own funds as well as from deposits. These
indigenous banks are popular in villages and small towns. They perform combined functions of
trading and banking activities. Certain well Known Indian communities like Marwaris and
Multan even today run specialized indigenous banks.
1.1.6 Mortgage Banks
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A mortgage bank is a bank that specializes in originating and/or servicing mortgage loans. In
the US a mortgage bank is a state-licensed banking entity that makes mortgage loans directly
to consumers. The difference between a mortgage banker and a mortgage broker is that the
mortgage banker funds loans with its own capital.
Generally, a mortgage bank originates a loan and places it on a pre-established warehouse line of
credit until the loan can be sold to an investor, such as Fannie Mae, or Freddie Mac The process
of selling a loan from the mortgage bank to another investor is referred to as selling the loan on
the secondary market.
Mortgage banks frequently use the secondary market to sell loans because the funds received pay
down their warehouse lines of credit which enables the mortgage bank to continue to lend. A
mortgage bank is not regulated as a federal or state bank and does not take deposits from
consumers or businesses. A mortgage bank raises some equity which it uses to guarantee the
warehouse line and the bulk of the funds are provided by the warehouse lender.
A mortgage bank can vary in size. Some mortgage banking companies are nationwide. Some
may originate a large loan volume, exceeding that of a nationwide commercial bank. Many
mortgage banks employ specialty servicers for tasks such as repurchase and fraud discovery
work
1.1.7 Spare Bank

These banks are present in Norway. They promote both savings and commercial facilities to the
both people and organizations in Norway
1.1.8 Federal or National Banks

The central bank of the United States and the most powerful financial institution in the world the
Federal Reserve Bank was founded by the U.S. Congress in 1913 to provide the nation with a
safe, flexible and stable monetary and financial system(8)
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1.1.9 Exchange Banks

These banks will be available in more than a single country. They provide services for the buying
and selling of gold and silver; transactions will be in foreign currencies(9)
1.1.10 Consumers Bank

These banks provide finance for purchasing consumer goods for the personal use of the
borrowers. For example Car Loans, Consumer durable goods like air conditioners, refrigerators,
furniture and House Loans for Residential purposes. Consumer Finance Companies, sales
finance companies and credit unions are some of the popular forms of consumer banks.
Consumer banks do not give loans for productive/business purposes
1.1.11 Community Development Banks

Community development banks (CDBs or CDFI Banks) are commercial banks that operate
with a mission to generate economic development in low- to moderate-income (LMI)
geographical areas and serve residents of these communities. In the United States, community
development banks are certified as such by the Community Development Financial Institutions
Fund, a department within the U.S. Department of the Treasury.
Organizers wishing to start a new CDB can seek a state or national bank charter. Federally
chartered CDBs are regulated primarily by the Office of the Comptroller of the Currency, like
any national bank. According to the OCC Charter Licensing Manual, CDBs are required "to
lend, invest, and provide services primarily to LMI individuals or communities in whom it is
chartered to conduct business." State-chartered community development banks are subject to
regulations, qualifications, and definitions that vary from state to state(10)
1.1.12 Credit Unions

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A credit union is a member-owned financial cooperative, democratically controlled by its

members, and operated for the purpose of promoting thrift, providing credit at competitive rates,
and providing other financial services to its members.[1][2][3] Many credit unions also provide
services
intended
to
support
community
development[4] or
sustainable international
development on a local level.[5]

Worldwide, credit union systems vary significantly in terms of total system assets and average
institution asset size,[6] ranging from volunteer operations with a handful of members to
institutions with assets worth several billion US dollars and hundreds of thousands of members.
[7]
Credit unions operate alongside other mutual and/or co-operative organizations engaging
in cooperative banking, such as building societies (11)
1.1.13 Private Banks

Private Banks are banks owned by either an individual or a general partner(s) with limited
partner(s). Private Banks are not incorporated. In any such case, the creditors can look to both
the "entirety of the bank's assets" as well as the entirety of the sole-proprietor's/general-partners'
assets.
These banks have a long tradition in Switzerland, dating back to at least the Revocation of the
Edict of Nantes (1685). Private Banks also have a long tradition in the UK where C. Hoare &
Co. has been in business since 1672(12)
1.1.14 Offshore Bank

An offshore bank is a bank located outside the country of residence of the depositor, typically in
a low-tax jurisdiction (or tax haven) that provides financial and legal advantages. These
advantages typically include:
greater privacy (see also bank secrecy, a principle born with the 1934 Swiss Banking Act)
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little or no taxation (i.e. tax havens)
easy access to deposits (at least in terms of regulation)
protection against local, political, or financial instability(13)
1.1.15 Ethical Banks

As the name implies ethical Banks promote candid transactions; between various customers of
the banks. Policies and rules are transparent in nature.
1.1.16 Investment Banks

An investment bank is a financial institution that assists individuals, corporations, and
governments in raising financial capital by underwriting or acting as the client's agent in the
issuance of securities (or both). An investment bank may also assist companies involved
in mergers and acquisitions (M&A) and provide ancillary services such as market making,
trading of derivatives and equity, and FICC services (fixed income instruments, currencies, and
commodities(15).
1.1.17 Merchant Banks

A merchant bank is a financial institution that provides capital to companies in the form
of share ownership instead of loans. A merchant bank also provides advisory on corporate
matters to the firms in which they invest. In the United Kingdom, the term "merchant bank"
refers to an investment bank.
Today, according to the U.S. Federal Deposit Insurance Corporation (acronym FDIC), "the term
merchant banking is generally understood to mean negotiated private equity investment by
financial institutions in the unregistered securities of either privately or publicly held
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companies."[1] Both commercial banks and investment banks may engage in merchant banking
activities. Historically, merchant banks' original purpose was to facilitate and/or finance
production and trade of commodities, hence the name "merchant". Few banks today restrict their
activities to such a narrow scope(16).
1.1.18 Universal Banks

These Banks have a wide spectrum of financial assistances to provide insurances to stocks; they
promote everything across all countries around the globe.
1.1.19 Islamic Banks

A Banking system that is based on the principles of Islamic laws and guided by Islamic
economics. Two basic principles behind Islamic banking are the sharing of profit and loss and,
significantly, the prohibition of the collection and payment of interest. Collecting interest is not
permitted under Islamic law(18)
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Chapter II
OVERVIEW OF ASKARI BANK
2.1 BRIEF HISTORY

Askari Bank Ltd was incorporated in Pakistan on October 09, 1991, as a Public Limited
Company. The initial public offering of PKR 120 million was oversubscribed 16 times. 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 since expanded into a network of 261 branches / sub branches, including 34
dedicated Islamic banking branches, and a wholesale bank branch in Bahrain. A shared network
of 5,903 online ATMs covering all major cities in Pakistan supports the delivery channels for
customer service. As at December 31, 2012, the Bank had equity of Rs. 19.7 billion and total
assets of Rs. 353 billion, with 907,984 banking customers, serviced by our 5,597 employees.
Askari Investment Management Limited and Askari Securities Limited are subsidiaries of Askari
Bank engaged in managing mutual funds and share brokerage, respectively.
AKBL is one of the financial ventures of the Army Welfare Trust (AWT) that is rated as the
top private bank in the country. The bank is ahead of all the private banks in the country.
The Askari Bank is one of the major resource pools for the AWT, which has 4.91 percent stakes
in the Bank. A Board of Directors, dominated by the AWT, however, controls the Bank. Another
39.67 percent shares are owned by its various directors, who are mostly retired military
personnel. These retired generals have personal financial stakes as well. In the early years, the
focus of the business was primarily on non-corporate sector of the retail market. However, with
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substantial growth in its deposit base, the bank has shifted its focus to wholesale trade,
manufacturing and project financing, while retaining its niche with the medium-sized customers,
who continue to provide the best return on the earning assets.
Askari Bank is the only bank with its head office in the twin cities of Rawalpindi-Islamabad,
which have relatively limited business opportunities as compared to Karachi and Lahore. This
created its own challenges and opportunities, and forced us to evolve an outward-looking
strategy in terms of our market emphasis. As a result, they developed a geographically
diversified assets base instead of a concentration and heavy reliance on business in the major
commercial centers of Karachi and Lahore, where most other banks have their head offices.
2.1.1 AWARDS AND ACHIEVEMENTS

Askari has an A 1 + rating for short-term obligations - the highest possible for the category,
while the long-term rating stands at AA.
Over the years Askari Bank received many awards.
The Best Annual Report Award for the year 2012-2nd Runner-up by
ICAP&ICMAP.
The Best Annual Report Award for the year 2011 by ICAP & ICMAP.
Best Presented Annual Report Award and SAARC Anniversary Awards for Corporate
Governance Disclosures 2011 by South Asian Federation of Accountants.
Best Retail Bank in Pakistan by the Asian Banker.
1st Consumer Choice Award by the Consumer Association of Pakistan 2004.
Corporate Excellence Award by the Management Association of Pakistan (MAP) 2002,

2003 & 2004.
The Best Bank in Pakistan by Global Finance magazine. 2001 and 2002.
Best Consumer Internet Bank by Global Finance magazine 2002 and 2003.
Euro money and Asia money Awards 1994, 1996 and 1997.
Best Presented Annual Accounts by (ICAP) and (ICAMP). 2000, 2001and 2002.
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The Best Presented Annual Accounts by South Asian Federation of Accountants

(SAFA), in the SAARC region.
The Best Consumer Banking Award 2006 by the Consumer Association of Pakistan 2007
The Best Retail Banking Award 2008 by Pakistan Guarantee Export Corporation
Ltd. 2008
Best Corporate Report Award for the year 2008 by ICAP & ICMAP 2008
The Best Annual Report Award for the year 2010 by ICAP & ICMAP.
The Best Presented Accounts Award 2010-2nd Runner Up-Joint by South Asia federation of
accountants.
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2.1.2 MISSION STATEMENT
As it is said that an organizations culture, products, services, employees, their

attitude, philosophy, self-concept, markets and environment throws light on the corporate
mission, so one of the business executives at the bank, based on his personal observation and
judgment, carved the following mission of The Askari Commercial Bank Limited as:
To be the leading 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
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2.1.3 VISION STATEMENT
To be the Bank of first choice in the region
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2.1.4 Organizational Structure of

Askari Bank
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Written Explanations with

Respect to their duties and
Functions
Page 16
Page 17
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Chapter III
3. Departments of Askari Bank SAT Branch
There are three main departments in ACBL SAT Branch
1. General Banking
i.
Account Opening
ii.
Bills and remmitances
iii.
Deposit Department
iv.
Cash Department
2. Credits and Advances Department
3. Foreign Exchange
3.1. Account Opening Department

Account opening is the first step in business of banking to create the relation of public with bank
as a customer. Now Customer becomes creditor of a bank. It is most important department of
Bank and bank officers must take special care before opening the account. The accounts offered
by the ACBL are of two types:
I.
Account of General Customers

Minor Account
Illiterate Person Account
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Joint Account
II.
Accounts of Special Customer

Proprietor ship Account
Partnership Accounts
Limited Companys Account
Agents Account
Joint Stock Companys Account
Agency Account
Clubs, Societies/Association Accounts Trusts Local Bodies etc
Executors and Administrators Account
Account Opening Procedure

The general procedure of account opening is same but the document required to open the account
is different according to type of account.
The branch manager is responsible to handle job of account opening, but in some cases it is
assigned to other responsible officers. Information at the time of opening of account, the bank
officer must assure that customer has the following characteristics:
The customer must have the age of majority, it means he must be the age of 18
law
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according to
The customer must be of sound mind
The customer must not be insolvent and Bankrupt
The customer must not be debarred under any law from entering into any contract
Also the Bank officer must take proper information from the customer about his means, line and
place of business
Account Opening Form

The Bank officer must assure that the customer fills each and every column of account opening
form correctly with all necessary details. The specific information about the business or
occupation of the customer is recorded in the form. It is preffered that the customer in the
presence of introducer fills account opening form
Introduction of Accounts
It is a most important column of account opening form. Without the proper introduction, the new
account cannot be opened. The Bank officer consider following precaution in this respect.
The introducer should come with the perspective customer to the Bank, so there will be no
doubt about the identity of the customer
If the introducer does not come the Bank officer must take extrenous care about his signature
verification
Introducer having doubtful dealing with the Bank should be discretely declined
Current account holder can be introducer of both type of Deposits but saving bank account
holder cannot be the introducer of current account holder. But in exceptional cases they can
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introduce when account holder maintain substantial balance and they are old and operative
accounts
The staff member can become introducer if they personally known to perspective customer
National Identity Card

The Bank officer should check that the number of National ID card is correctly recorded in the
AOF and a copy of National Identity Card is kept in record by the bank
Specimen Signature Card

The Bank officer takes signature of customer on AOF and specimen signature card. Latterly this
card is scanned in the computer and whenever customer any transaction in this account then this
signature is verified by it. Feed in UNI Bank system. ACBL is computerized Bank so after all the
formalities the accounts are opened in computer in UNI Bank System and AOF is pasted in AOF
register.
Letter of Thanks
A letter of thanks is sent to customer through mail to verify his address. And a letter
of thanks is send to introducer to verify him as introducer.
Individual Accounts
Individual accounts are classified as:
i.
ii.
iii.
Accounts of illiterate ladies and gentleman

Minor Accounts
Joint Accounts
Documents required to open individual account are:

i.
ii.

Specimen Signature Card
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iii.
Copy of NIC
Accounts of illiterate Ladies and Gentlemen

In case of illiterate ladies and gentleman, two photographs are required, one is pasted on account
opening form and other is pasted on specimen signature card. Instead of signature, left-hand
thumb impressions are obtained on specimen signature card from gents and right-hand thumb
from ladies.
At the encashment of cheques, these customers are advised to attend bank personally and put
their thumb impression on the cheques. If the cheque is presented through clearing, then it will
be also paid only to the customer
Minor Accounts
The minor can open only the saving account and only jointly with their guardian and guardian
will also sign the account opening form and Specimen Signature Card
Joint Accounts
The Bank will fulfill the stop payment instruction of any cheque lodged by any member of joint
account but removal of these instructions must be signed by all the member
If any member dies then there will be no transaction in the account. Balance in the account will
be paid according to instruction recorded at the time of account opening

The member of joint account can delegate authority to any third party to operate the
account. All the members Sign such mandate but it will be cancelled if any of the
member dies, insolvent or insane
Partnership Account
The documents required for these accounts are
Account opening form

SS card
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Copy of NIC of all partners

Copy of registration certificate
Copy of partnership deed
The partnership accounts are opened under the following conditions:
Partnership firms can open only current account due to business concern.
All partners must sign the account opening form.
The name of authorizes person to operate the account is mentioned in the
The title of account should show name of partners
The bank will fulfill the stop payment instruction of any cheque lodged by
partner of joint account but all the partners must sign removal of these instructions.
Cheques payable to the firm will not be credited to personal account of any partner.
When the changes are taking place in the firm structure or if the firm is
form.
any
declared as insolvent then transaction in the account will be stopped. In case of

insolvency, the personal accounts of partner will also become inoperative.
Joint Stock Company Account

Joint stock companies include:
Private Limited Companies

The
companies
whose
share
capital
is
not
offe red
to the
general
public
instead the offer is restricted to particular class of society or within the family members
called private limited. These companies are not listed in stock exchange and are not transferable
Public Limited Companies

Promoters and general public contribute the share capital of thesec o m p a n i e s .
These
c o m p a n i e s a r e l i s t e d i n s t o c k e x c h a n g e a n d t h e i r s h a r e s a r e transferable and
brought and soled freely in stock exchange. The document required for these accounts are:

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SS Card
Up to date Memorandum Article of Association
Certificate of incorporation.
Certificate to commence business.
Resolution of board passed under company seal to open account.
NIC
Passport of all the directors authorized signatures.
List of directors authorized signature. The specific conditions to open the account of Joint
Stock Company are
The specific conditions to open the account of Joint Stock Company are
Introduction is not required for these accounts because companies are legal entities
retirement or dismissal of any director does not affect operation on the
Death,
account.
However, death, retirement or dismissal of the directors authorized

t o operate upon the accounts temporarily put embargo on operations of the account. In
such cases, fresh resolution authorizing another person to operate upon the account is to
be called for from the company.
The cheques signed by the directors before their death retirement or dismissal will be
considered as valid instrument.
The operation on the account will be stopped when company terminates its career
Accounts of Clubs & Societies

These
are
non-trading/non-profit
organizations
and
are
formed
for
t h e promotion of culture, education, recreation activities and charitable purpose etc. Account
opening procedure is same as mentioned before
Title of the Account

Account must be opened in the name of the organization in the following manner:
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The document required for these accounts are:
Copy of Bye-laws/regulations
List of members of managing/Executive committee
Copy of certificate of registration (if registered)
Copies of NICs of the members of executive committee
List of names of officials authorized to sign on behalf of the organization
with the specimen signatures under the signature of the secretary of the
along
club/society.
Mode of Signature
Official capacity
Special Care
In Case of death or transfer of an office bearer authorized to operate the account, operations in
the account should be stopped until receipt of new resolution passed by the managing
committee/directors authorizing the new office bearers to operate the account and copy of the
resolution along with names and specimen signatures of new authorized officials are
received by the bank.
Issuance of Cheque Book

The customer fills the Form A for issuance of cheque books with the AOF. The requisition slip
is duly signed then bank officer enters cheque book series on it. The officer enters the issuance of
cheque book in register. To minimize the misappropriation bank stamps the account number on
each leaf of cheque book. Bank charges Rs. 7 per leaf. ACBL issues 10,25,50 and 100 leaves
cheque book.
If cheque book is lost then customer fill the From B for resonance of cheque book. Bank
Charge Rs.100 for resonance.
Inactive Account
If there is no transaction in any account within 6 months then account will become inactive. Now
the account will be active only by crediting some amount.
Closing of Account
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If the customer wants to close the account then he will submit under signed application along
with unused cheque book in the book. The bank will charge Rs 100 for closure and remaining
balance in the applicants account will be paid to account holder. If the conduct of customer is not
satisfactory the bank can close the account but bank will give prior notice to customers to make
proper arrangement of his funds.
3.2 Bills and Remittances Department

Remittance department plays an important role in transfer of funds from one place to another.
Askari commercial bank provides this service to their customer, as well as general clients.
Different instruments are used to remit the money. The instrument can be defined as It is in
writing containing an unconditional order signed by the maker to pay certain amount to or to the
order of a certain person for future determinable time.
The following different instruments are used to remit the funds in ACBL.
Demand Draft
Telegraph Transfer
Pay Order
Pay Slip
Travelers Cheques
Demand Draft
Demand draft is most frequently used instrument. It is defined as an unconditional instrument in
writing drawn by a bank in a favor of any person on a branch of its own bank or any other bank
to pay a certain sum of money to his order for value received. Virtually there is no stop payment
of a Bank Draft. It is issued or paid to all customer and clients.
Issuance Procedure of DD
The customer requests on the standard application form of DD by filing all the required
information like name, address where the DD is drawn, amount, mode of payment, and
signature. The bank officer checks the application for charging commission according to the
amount. The customer deposits the amount and commission.
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The issuance of DD is computerized in ACBL so all the entries are made in

the computer by bank officer. The computer assigns a number to the DD and
officer writes this numbers on application from.

The printed Draft along with counter foil of cash voucher will be given to the
customer. The Bank officer enters the DD in the DD issue register. The Bank
officer send inter branch credit advice to the other beneficiary branch
Commission on DD
Up to Rs 10000
Rs25
From 10000 to Rs 100000
Rs 50 or 0.10%
From 100000 to Rs 1000000
Rs 200 or 0.07%
Over Rs 1000000
Rs 1000 or 0.05%
Payment of DD
The customer comes to bank take payment then bank officer debit the DD payable account and
credit to customer account. If the customer has no account cash payment is made to the customer.
If beneficiary bank do not receive the IBCA and customer comes to take payment then bank
officer cannot stop payment. The bank officer debit the suspense account and credit to the
customer account. After receiving the IBCA the officer debit the DD payable account and credit
to customer payment. IF the demand draft is crossed then there is no cash payment to the
beneficiary but only credit to the beneficiarys account.
Cancellation of DD
If the customer wants to cancel the DD then following procedure is adapted. The customer gives
the written application for cancellation along with original demand draft. The bank charges the
cancellation charges of Rs 100. The bank officer verifies the signature of applicant. Cancellation
of DD is recorded in DD issue register. The bank first sends IBCA to the beneficiary bank and
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then cancellation application. The beneficiary bank first credits to customer account and then
debit it by credit it to head officer account and IBCA send to DD issuing ban. The bank credit to
customer account or payment to customer by credit to suspense account and after receiving
IBCA the suspense account will be adjusted.
Issuance of Duplicate DD
If the DD is lost or destroyed by mistake, then the bank issues its duplicate DD. The
customer gives application along with indemnity bond on stamp paper of Rs. 50.
This is done to cover the risk of double payment by mistake. The entries in the DD
issue register are inserted against the original draft in red ink. The duplicate DD has
the same controlling number. The bank officer informs the drawer branch of the loss
of DD that DD is lost and until duplicate is issued, payment will not be made even
original is received.
Telegraph Transfer
The transfer of funds by means of fax or telegram is called telegraph transfer. I t i s
fast way to transfer of funds from one branch to another of same bank.
T h e amount will credit to the beneficiary account within 24 hours. The customer
fills TT application form. The bank officer enters into TT issued register. T h e b a n k o f f i c e r
w r i t e s t h e m e s s a g e a n d a p p l y t e s t o n t h e T T m e s s a g e a n d g i v e appropriate
instruction such as advice and credit or advice & pay telegraph transfer receipt is issued to
make cash payment to the beneficiary. The commissions charges a r e s a m e f o r D D
a n d f a x c h a r g e s a r e R s . 4 0 . An d m e s s a g e i s f a x t o t h e b e n e f i c i a r y bank in
beneficiary account, but if the beneficiary has no account then payment will b e
made by TTR. It is quick mode but it is not used for business
p u r p o s e a n d preferably used for personal use.
Mail Transfer
Page 29
I f t h e f u n d s a r e t r a n s f e r r e d t h r o u g h m a i l t h e n i t i s c a l l e d m a i l t r a n s f e r.
T h e p r o c e d u r e o f m a i l t r a n s f e r i s s a m e a s i n t e l e g r a p h t r a n s f e r. T h e
commission and postage charges are taken. The postage charges are
R s . 1 5 / f l a t a n d c o m m i s s i o n i s same.
Pay Order
Pay order is issued for payment in the same city because it is issued form one branch can only be
payable form the same branch. All the procedure of pay order is
Same as in the DD. The only difference is that in pay order the distinction is not
specified, i.e. the issuing and paying end of pay order is same branch. It is generally
refereed as Bankers cheque.
Commission on Pay Order

Up to Rs 100000
RS 25
Greater than 100000
no charges
Pay Slip
It is used by the bank for the settlement of its own payment of expenses. The contractor in favor
of agencies makes call deposit receipts. After the approval of the bid, when the contractor
complete their work then release of security letter is issued by the agency. If the contractor has
no account then its cash payment is made by the pay slip. No excisable duty and commission is
charges on pay slip.
Travelers Cheques
Askari travelers cheques are a valuable financial service of ACBL. They are i s s u e d
to settle all your business transaction and customer can travel without
a n y pocket load. It is safest substitute for cash, easily refundable in case of theft
and loss. Askari bank issues the traveler cheques denomination of Rs. 10,000.Askari traveler
cheques are issued against cash cheque or debit to customer account. It is issued on
purchase agreement form and 3 copies are prepared. One is sent to head office, the
Page 30
second one for record of bank and third one for the custom. No service charges are taken
on it. Any branch of ACBL can make payment of Askari traveler cheque. It
can be drawn by another bank through collection. It can be encased form the
issuing branch but not on issuing date. If these cheques are enchased
within seven days then customer will receive 0.2% commission
3.3
Deposit Department
It is the most important department of the bank and working of banks initiate from
this department. There are two types of deposits:
Demand Deposit
Time Deposit
Demand Deposit
These deposits are payable by the bank on demand and no profit is given
o n these deposits. It includes:
Current Account
Call Deposit Receipt
Time Deposit
It includes:
PLS Saving Deposit

Askari Special Deposit Account.
Askari FISDA Account
Askari FAIDA Accounts
Value Plus Saving Deposit
Notice Deposit
Askari Advantage
Term Deposit
PLS Saving Deposit

As denoted by the name, these accounts are opened to mobilize the
savings among people and to participate in the economic development of
Page 31
c o u n t r y.
These
accounts
can
be
opened
with
Rs.2500
except
army
p e r s o n n e l a n d a l s o p r o v i d e t h e f a c i l i t y f o r d e p o s i t i n g s m a l l s u m o f m o n e y.
And if customer wants to withdraw a large sum of money then customer to
t h e b a n k g i v e s p r i o r n o t i c e , b e c a u s e b a n k s invest substantial percentage of such
deposit in their business.
Statements of saving accounts are provided to customer twice in year as on June 30
and December 31. Profit is paid at the end of June & December at a fixed rates a n d t h i s
profit is calculated at minimum month balance. This element of
p r o f i t encourages the habit of saving among the people. Zakat at the rate of 2.5% is
deducted from these accounts on 1st
Ramazan-ul-Mubarik. Balance below a certain limit, which is announced by the government
every y e a r i s e x e m p t e d f r o m Z a k a t . A w i t h h o l d i n g t a x a t t h e r a t e o f 1 0 % o n
p r o f i t i s a l s o recovered from the account holders irrespective of the amount of profit
Provisional Rates of Profit on Saving Accounts
Up to 9999
1.00%
10000 and above
2.00%
Askari Special Deposit Account

ASDA is a daily-based product, it means that profit is calculated on daily basis and paid on
monthly basis.
Rates of profit on ASDA:
50000 to 999999
1.50%
1000000 to 4999999
2.00%
5000000 to 19999999
2.50%
20000000 to 99999999
2.75%
100000000 and above
3.00%
Page 32
Askari FISDA Account

F I S D A s t a n d s f o r F i n a n c i a l I n s t i t u t i o n S p e c i a l D e p o s i t Ac c o u n t T h e s e
accounts are opened for financial institution. Profit on these accounts is calculated
on daily basis and paid at the month end.
50000 and above
0.25%
Askari FAIDA Account

ACBL introduced these accounts from July 01, 1998 to retain encashment proceeds
of foreign currency deposit. These accounts are not opened now. Profit is calculated
on daily product basis and paid on quarterly basis
Rates of Profit on FAIDA
50000 to 999999
1.50%
1000000 to 4999999
2.50%
5000000 and above
3.50%
Value Plus Saving Deposit

The minimum balance required to open this account is Rs. 10,000. Profit is
calculated on minimum monthly balance and paid at the month end. Provisional rates of profit on
value plus saving deposit are as
Rs.10, 000 2.00%
If in value plus, deposit of Rs.25, 000 is maintained then profit rates are.
For 3 Months 1.50%
For 6 Months 2.00%
For 1 Year 2.50%
Notice Deposit
T h e c u s t o m e r h a s t o d e p o s i t R s . 5 0 0 0 . A nd the customer gives notice
o f encashment to the bank for specified number of days before the actual
Page 33
encashment; Profit is calculated on daily basis and paid at maturity Provisional

rates of profit on notice deposit.
For 07 days 0.50%
For 30 days 1.00%p.a
Askari Advantage
Minimum balance required to open this account is Rs.1000, 000. Profit is
calculated on daily basis and paid at maturity. Provisional rates of profit on Askari Advantage are
Rs 100000
1.50%
Term Deposits
Fo r t h e s e a c c o u n t s , t h e r e q u i r e d m i n i m u m b a l a n c e i s R s . 5 0 0 0 b u t
r a t e o f profi t varies with time. Profi t is calculated on daily basis and paid
at maturity. But if these accounts are maintained for a Year then profit is paid
after every six month
Provisional rates of profit on term deposit are:
For 1 Month
1.00%
For 2 Month
1.25%
For 3 Months
1.50%
For 6 Months
2.00%
For 1 Year
2.50%
It includes:
Receiving cash from the customer.

Making payment to the customers against their cheques or
o t h e r payment instruments.
Handling cash withdrawal and deposit into the bank account with state bank of
Pakistan and with other branches of bank.

Ensuring proper storage safety and security of the cash in cash and in transit.
Page 34
Ensuring proper cash management and sorting out of issue able cash into the
denominations.
Maintaining daily cash position register.
Transfer of cheques from one account to another and shift the cheques of other
bank to clearing department.
3.4 Cash Department

Cash department has two counters
1. Cash Receipt Counter
2. Cash Payment Counter
3.4.1 Cash Receipt Counter

If the customer wants to deposit in his account then he fills the pay in slip. In pay in
slip, the customer writes his account title, account no, the amount in figures
&words, particulars mention the mode of deposit either cash or cheque and sign it.
The customer makes the payment to cashier along with the pay in slip. The cashier checks
the details of pay in slip and if the customer gives broken cash then its detail are
written by the cashier at the back of pay in slip. Then he enters it into cash receipt
book and transfers it to the officer. The officer credits the customer account with the same
amount. He posts the transfer stamp and sign on pay in slip. Finally, the cashier returns
the signed counter foil to the customer.
3.4.2 Cash Payment Counter

When the customer presents the cheque to withdraw the money the
c a s h i e r check its date, amount in figure, signature and either it is f ACBL BWP branch or any
other branch or it is of BWP branch of other bank. If it is of ACBL BWP branch
with right date then cashier enter into cash payment book and transfer to the officer.
The officer feed the account number to check that demanded amount is available in
his a c c o u n t . I f a m o u n t i s a v a i l a b l e t h e n h e v e r i f i e s h i s s i g n a t u r e f r o m S S
c a r d a l r e a d y feed in computer. The officer passes the cheque and debits the customer
Page 35
account with the same amount and posts the stamp of transfer on it. Then cashier
makes the payment to the customer and writes the detail of notes at the back of
cheque to maintain daily cash position. The cheque can be returned to the customer due to
following reason:
If the cheque is postdated; i.e. some future date is written on it.

If the date is of 6 months back.
If the amount in figure and words is different.
If any cutting is made on the cheque.
If the cheque is of other branch of ACBL then it will send to
b i l l department. And if the cheque is of BWP branch of other bank then it
will send to clearing department.
Transfer of Cheques
If one account holder wants to transfer some amount from one account to
another, then he will give the cheque favoring the other account holder and also fill
the pay in slip. The cashier after checking the details and enter in the register
transfer t o t h e o f f i c e r . T h e o f f i c e r t r a n s f e r s t h e m e n t i o n e d a m o u n t
f r o m o n e a c c o u n t t o another.5050
Maintain the Cash Position

The cash department maintains daily cash position due to following two reasons:
All the banks are advised to maintain a liquidity limit according
t o SBP regulation all the funds of the bank are insured to a limit
.When the funds in the branch exceed from these two above mention limits
then branch officer report to head office of the bank. The head office takes
appropriate measure to maintain these limits
3.5 Credit and advances Departmentment

Page 36
Major source of bank income

Credit department is one of the most important departments of the bank.
Assets are resources of any organization and Advances are most valuable asset
of the bank. Credit department takes money from depositors at certain rates and
utilizes t h e s e f u n d s b y e x t e n d i n g l o a n s a t s p e c i f i e d r a t e t o t h e c r e d i t o r s .
T h e d i f f e r e n c e between these two rates is the profit of bank. So it is major source of profit.
The credit decisions are carefully analyzed because advances create risks for the bank
3.5.1 Functions of Credit Department

Credit department performs two basic functions
1. Credit Administration
2. Credit appraisal
Credit Administration
The credit department takes the decision about credit sanction after the risk analysis
and collects the extended loans at the maturity of loan.
Credit Appraisal
The credit department reviews their credit policies and all credit proposals. Also
credit officer report all the data of his activities to credit division Karachi. Credit division
reviews their policies after every six month in the light of this data and also sends
the data to State Bank of Pakistan (SBP) to review its policies.
Department of Foreign Exchange
Foreign exchange is one of the most important Departments of ACBL. This
department provides all kinds of foreign exchange business to boost the
international trade in the country, which is main objective of ACBL.
Page 37
Functions of Foreign Department

1. Foreign Currency Account
2. Foreign Remittance
3. Travel Related Services
Chapter IV
4. PRODUCT LINE
Askari commercial bank offer four main products: Consumer banking, Islamic banking,
Agriculture finance solution and corporate investment banking under these four product banks
offer a range of product line.
Page 38
Consumer banking product
1. Askari finance loan

Personal Finance
Mortgage Finance
Business Finance
Smart Cash
2. Investment product
Mahana Bachat Account
Roshan Mustaqbil Deposit
Deposit Multiplier Account
Page 39
Value Plus Deposits

Rupee Traveler Cheques
ASKCARD (Askari Debit Card)
Internet Banking Service
Electronic Bill Payment Services
Cash Management Services
Investment Certificates
Islamic banking services

Islamic Corporate Banking
Islamic Investment Banking
Islamic Trade Finance
Islamic General Banking
Islamic
Consumer
Page 40
Banking
Agriculture finance solution

Kissan Ever Green Finance
Kissan Tractor Finance
Kissan Aabpashi Finance
Kissan Livestock Development Finance
Kissan Farm Mechanization Finance
Kissan Transport Finance
Corporate & Investment Banking

Corporate Banking Division
Term Loans
Fund Transfers / Remittances
Page 41
Investment Banking Division

Project Finance
Islamic Finance
Askari Roshan Mustaqbil Deposit

Askari Bank has launched the Askari Roshan Mustaqbil
Deposit, a saving plan specially designed for individual
investors who wish to invest now for a regular return at a later
stage while keeping their principal amount intact. With Askari
Roshan Mustaqbil Deposit you can double your investment in a
time period of ten years. Invest now in the form of monthly
deposits for five years and get paid back the same amount for
the next five years while receiving your principal amount in full
at the end of the tenure.
Askari Deposit Multiplier Account

Value of initial investment of Rs. 100,000/- will increase to Rs. 265,000/- at maturity!
Page 42
Multiplier account. This account is for individual investors

whose purpose is long term savings with high returns. With a
tenure of 10 Years and a competitive rate of return on maturity
this account is ideal for investors who wish to start saving for
their future today.
Value of initial investment of Rs. 100,000/- will increase to
Rs. 265,000/- at maturity!
Value plus Deposits

Askari Bank leads the way, yet again with the introduction of
Askari Value Plus Rupee Deposit Accounts, which promise
greater financial freedom and security, in an un-matched way.
Now you can open a "Value Plus Account" while enjoying the
flexibility of a normal checking account.
ASKARI CARD
Page 43
Askari Debit Card means freedom, comfort, convenience and

security, so that you can have retail transactions with complete
peace of mind. Askari Debit Card is your new shopping
companion which enhances your quality of life by letting you
do shopping, dine at restaurants, pay your utility bills, transfer
funds, withdraw and deposit cash through ATM anywhere,
anytime.
Travelers Cheques
Askari Bank Limited has always remained at forefront in
introducing innovative and unique products in banking sector.
Our financial instruments provide greater financial freedom and
security in an unmatched way to our valued customers. Askari
Bank offers you its "Rupee Traveller Cheques" eliminating all
financial risks while traveling. So avoid risk of carrying cash
through Askari Bank's Rupee Traveler Cheques.
Smart Cash
This personal line of credit would be set up
With a specified credit limit up to Rs. 500,000/=
Page 44
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.
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.
Business Finance
Page 45
ACBL is providing loans to small and medium size business

enterprises under Askari Bank's Business Finance Scheme. The
goal of ACBL is to offer a loan, which enables business
community to receive the financing required by them based on
their cash flows.
Chapter V
5.1 Revenue, Deposits and Investments Reported

2010
92096
2011
10713
2012
11753
2013
335241
2014
13901
5
58485
24
58778
76
59546
027
163556
07
67984
Investment
3
33214
1
49381
7
56389
632
165863
5
69499
237
Deposits
Advances
5.2 Sources of Funds

Sources of Funds
2010
27,183,3
2011
317478
2012
326124
2013
2014
369576
Income From Banking Services
82
1800841
72
351784
97
385398
N/L
53
493473
Cost of Services
7
282300
9
287585
N/L
Value added by Banking Services
9174964
25
08
N/L
321978
317009
Non-Banking Services Income

Provision against non-performing
33066
38037
183084
43546
268786
N/L
56
assets
3064382
2
264372
0
261141
N/L
317354
402640
321035
Total Funds collected
6143648
20
94
30
96
5.3 Generation of Funds
Page 46
Sources of Funds
2010
27,183,3
2011
317478
2012
326124
2013
2014
369576
Income From Banking Services
82
1800841
72
351784
97
385398
N/L
53
493473
Cost of Services
7
282300
9
287585
N/L
Value added by Banking Services
9174964
25
08
N/L
321978
317009
Non-Banking Services Income

Provision against non-performing
33066
38037
183084
43546
268786
N/L
56
assets
3064382
2
264372
0
261141
N/L
317354
402640
321035
Total Funds collected
6143648
20
94
30
96
5.4 Allocation of Funds

Allocation of Funds
2010
to employees, salary , allowances,
2011
2012
2013
2014
other benefits
Cash Dividend
Bonus shares
Income Tax
4186316
0
642744
329959
4451077
0
1060528
785053
1881622
4414898
0
0
N/L
N/L
N/L
N/L
5453429
1260259
Financial Charges
Donations
Depreciation
Retained in Business
0
0
684196
300433
0
16000
741172
567170
2643722
19110271
0
859298
1255362
N/L
N/L
N/L
N/L
20149820
6140
712794
2754673
Total Funds Allocated
6143648
26114194
39999452 32103596
1766481
5.5 Mobilization of Funds

Allocation of Funds
2010
to employees, salary , allowances, other
2011
2012
2013
2014
benefits
Cash Dividend
Bonus shares
Income Tax
4451077
0
1060528
785053
4414898
0
0
N/L
N/L
N/L
N/L
5453429
1260259
4186316
0
642744
329959
Page 47
1766481
1881622
1911027
2014982
Financial Charges
Donations
Depreciation
Retained in Business
0
0
684196
300433
0
16000
741172
567170
2643722
1
0
859298
1255362
2611419
N/L
N/L
N/L
N/L
3999945
0
6140
712794
2754673
3210359
Total Funds Allocated
6143648
Chapter VI
6.1 Liquidity Ratios
Current Ratio: Current Assets/Current Liabilities
Particulars
Current ratio
2010
2011
2012
2013
2014
0.97
1.84
1.99
1.91
1.77
The Current Ratio is calculated by dividing Current Assets by Current Liabilities. Current
Assets are the assets that the firm expects to convert into cash in the coming year and Current
Liabilities represent the liabilities which have to be paid in cash in the coming year. The
appropriate value for this ratio depends on the characteristics of the firm's industry and the
composition of its Current Assets. However, at a minimum, the Current Ratio should be greater
than one. From the above calculation it shows that the current ratio of the bank is almost in the
last few years. Also the ratio is above 1 which means that bank can easily pay its short term
debts without any obligations.
Working Capital
Particulars
2010
213423786
Current assets
Current liabilities 196543279
Working capital
16880507
2011
2012
2013
2014
290431231
318385849
328724287
354169834
284552910
311530406
319006625
321087653
5878321
6855443
9717662
33082181
Page 48
ANALYSIS
From the above calculation it shows the net working capital of the company has increased over
the last few years. It shows that company has enough short term assets to cover their short term
debts. The ratio shows a positive sign as company does not have to worry for their debts because
they can easily settle their debts.
QUICK RATIO
Formula:
Quick ratio = (current assets advances) / current liabilities
Particulars
2010
2011
2012
2013
2014
Quick assets
109965428
137646977
1676673293
184996452
207699318
Current liabilities 251776541
284552910
311530406
319006625
460223682
0.483
0.538
0.584
0.451
Quick ratio
0.436
Ideally, quick ratio should be 1:1.

If quick ratio is higher, company may keep too much cash on hand or have a problem collecting
its accounts receivable. Higher quick ratio is needed when the company has difficulty borrowing
on short -term notes. A quick ratio higher than 1:1 indicates that the business can meet its current
financial obligations with the available quick funds on hand.
Quick ratio lower than 1:1 may indicate that the company relies too much on inventory or other
assets to pay its short-term liabilities.
CASH RATIO
FORMULA:
Cash Ratio= Cash+Cash Eqivalents/Current Liabilities
Particulars
2010
2011
Page 49
2012
2013
2014
Cash+cash equivalence 19250672
26352728
3240322
33300725
8894523
Current liabilities
321583779
284552910
311530406
319006625
169677789
Cash ratio
0.059
0.093
0.104
0.104
0.052
ANALYSIS
Cash ratio measures the immediate amount of cash available to satisfy short-term liabilities.
A cash ratio of 0.5:1 or higher is preferred. Cash ratio is the most conservative look at a
company's liquidity since is taking in the consideration only the cash and cash equivalents.
Cash ratio is used by creditors when deciding how much credit, if any, they would be willing
to extend to the company.
6.2 DEBT MANAGEMENT RATIOS

DEBT RATIO
FORMULA:
debt ration= total debt/total asset

= total assets- total owners equity/total assets
Particulars
Total liabilities
Total assets
Debt ratio
2010
2011
2012
215890430
252398458
85.53%
298747904
314780129
94.9%
325983862
343865720
94.8%
2013
333383893
353055627
94.3%
2014
341865342
357789032
95.54%
ANALYSIS
This ratio shows that in 2013 the debt ratio was 94.3% which is lower than year 2012 & 2011.
This means that now company has lower debt on their assets compare to year 2012 & 2011. This
is a good sign for the company as now they have lower debts on their assets.
Page 50
TIME INTEREST EARNED RATIO

FORMULA: Time interest earned ratio= Earnings before interest and taxes/interest
Particulars
2010
2011
before 10227658
Earnings
interest & taxes
Interest
4278903
Time interest earned 2.39
2012
2013
2014
9128207
11138847
10857912
14289365
1273136
2412751
1729727
1528909
7.17
4.62
6.28
9.34
ratio
Analysis:
Time interest earned ratio sometimes called interest coverage ratio, measure the ability to make
contractual interest payments. The higher its value the better able the organization is to fulfill its
interest obligations.
DEBT TO EQUITY RATIO

Formula:
Debt to equity ratio = total liabilities/ stockholders equity
Particulars
Total liabilities
Shareholders
equity
Debt to
2010
2011
2012
2013
2014
21678898
298747904
325983862
333383893
354219877
7
14231789
equity 15.23
16032225
17881858
19827381
6
20064727
18.64
18.22
16.8
17.65
ratio
Page 51
6.3 PROFITABILITY RATIOS

GROSS PROFIT RATIO
FORMULA:
Gross profit margin = Sales-cost of goods sold/ sales
Particulars
Gross profit
2010
2011
2012
2013
2014
1543987
1273136
2412751
1729727
2114502
Sales
24518638
27952162
32766351
32402187
31799210
Gross profit margin
3.54%
4.56%
7.37%
5.34%
2.54%
ANALYSIS
The calculation of gross profit margin ratio shows that year 2013 the ratio has been lowered
to 5.34 compare to 7.37 in year 2012. This means the gross profit of the company has been
decreased and it might lower the net income as well. The reason for the decrease in the
increase in the expense as well as an increase in the cost of goods sold.
NET PROFIT MARGIN
FORMULA: Net profit margin= Earnings available for common stock holder/ sales
Particulars
2010
Earnings available for 875990
2011
2012
2013
2014
919461
1705207
1289145
5489876
common stock holders

Sales
Net profit margin
27331702
3.36%
32768950
5.20%
32404345
3.98%
378890365
1.44%
21889009
4.00%
Page 52
ANALYSIS
The profit margin ratio shows that in year 2013 the profit margin of the company has come to
3.98% which was 5.20% in year 2012. This shows that now company profit has decreased due
to unknown reasons and it might give trouble to investors who want to invest in the company.
FORMULA:
Particulars
PAI & T
Total assets
Return on assets
2010
2011
2012
2013
2014
943177
10781212
8.74%%
919461
314780129
0.29%
1705207
343865720
0.49%
1289145
353055627
0.36%
4093724
447082545
0.91%
ANALYSIS
The return on assets ratio shows us that in year 2013 the return on the assets of the company has
lowered to 0.36 %which was high in 2012 on 0.49%. This shows that the management of the
assets is not good in 2013 and it might have affected the ratio. The ratio might increase due to
increase in the number of assets of the company.
TOTAL ASSET TURNOVER
FORMULA:
Particulars
Sales
Total assets
Total
Total asset turnover = sales/ total assets

2010
21889009
10781212
asset 2.03 times
2011
2012
2013
2014
27331702
314780129
32768950
34386572
32404345
353055627
41287908
44708254
0.08 times
0
0.09 times
0.09 times
5
0.09 times
turnover
Page 53
ANALYSIS
The total assets turnover shows that company has a bit change in the total assets compare to the
last years. This shows that now company has made lower sales on their total assets compare to
the sales made in year last year
EARNING PER SHARE
Formula:
Particulars
PAI & T
Total no. of shares
EPS (Rs)
2010
2011
2012
2013
2014
943177
696917903
1.35
919461
642743940
1.48
1705207
707018334
2.41
1289145
813071084
1.58
4093724
910092451
4.49
ANALYSIS
Earnings per share (EPS) are the earnings returned on the each share. Higher EPS is good
but here EPS is increased which is good.
Chapter VII
7.1 Balance Sheet of Askari Bank Limited

Balance Sheet
Assets
Cash
and
balances
with
2010
2011
2012
2013
2014
19130
26105
24435
26168
22565
Page 54
treasury banks
Balances with other Banks
Lendings
to
Financial
7068
9058
8864
6235
3785
Institutions
3428
2503
6319
14537
1592
13375
9172
10226
Investments
217214
165863
8
14372
7
15071
0
15278
Advances
Operating Fixed Assets
Assets Held for sale
Deferred Tax Assets
Other Assets
170496
8299
54
875
20517
163557
8567
0
2977
16197
7
8841
0
0
15491
35305
1
9349
0
0
15945
34375
4
9988
0
0
14190
31474
447083
394827
6855
13742
5688
24546
3700
8373
30693
2756
17273
29150
3090
25555
25593
Deposits and other accounts

387587
Sub-ordinated loans
7993
Liabilities
against
assets
335241
3994
7
6987
3
6990
7
5993
subject to finance lease

Deferred Tax Liabilities
Other Liabilities
0
0
7199
0
0
6630
0
118
7252
33336
83
7374
32598
0
86
8081
29874
Net Assets
423375
23707
376099
18729
7
19688
0
17776
0
16004
12603
4824
1862
19289
12603
5613
1583
16633
8131
8542
1004
17677
7070
8136
1302
16509
6427
7691
702
14821
4418
23707
2096
18729
2011
19688
1267
17776
1184
16004
2013
537724
2012
12981
2011
17052
Liabilities
Bills Payable
Borrowings
Represented By
Share Capital
Reserves
Unappropriated loss/Profit
Surplus
on
revaluation
assets
of
7.2 Income Statement of Last 5 Years
Income Statement
Profit/Loss after Taxation
2014
409372
Page 55
2010
91946
4
-
45
07
100579
399314
-80641
529659
-86722
12024
60506
17657
56152
97561
5
285294
23
13
Net of Tax
1
684608
258920
503767
0
12024
0
17657
0
97561
Total Comprehensive Income
23
13
2011
2012
2013
2014
115.68
108.28
115.96
Other Comprehensive Income
7.3 Horizontal Analysis of Balance Sheet

Balance Sheet
Assets
Cash
and
balances
2010
with
treasury banks
84.77%
186.73
%
239.31
%
234.18
%
100%
164.72

Lendings
to
Financial
%
68.89
%
17.35
Institutions
37.37%
212.41
27.28%
263.07
%
142.16
%
100%
130.80
Investments
%
111.59
%
107.05
%
94.07
%
98.64
100%
Advances
%
88.51
%
93.60
100%

Deferred Tax Assets
83.08%
0
0
85.77%
0
0
114.14
%
0
0
109.16
%
100%
0
100%
0
100%
112.36
Other Assets
14.58%
142.04
%
125.44
%
112.17
%
100%
109.21
221.84
184.07
119.74
89.19
Bills Payable
%
32.76
%
67.59
Borrowings
53.77%
151.43
96.05%
130.98
%
119.92
%
100%
113.89 100%
100%
100%
Liabilities
Page 56
100%
Sub-ordinated loans
Liabilities
against
%
133.37
%
116.58
%
116.63
66.64%
0
137.20
96.51
100%
assets
subject to finance lease
100%
%
89.74
%
91.25
Other Liabilities
89.08%
141.72
82.04%
125.89
%
111.59
%
100%
109.11
%
148.13
%
117.02
%
123.01
%
100%
111.07
196.09
196.09
126.51
110.00
Share Capital
%
111.06
%
100%
105.78
Reserves
62.72%
265.24
72.98%
225.49
%
143.01
%
100%
185.47
Inappropriate loss/Profit
%
130.14
%
112.22
%
119.26
%
100%
111.38
%
373.14
%
177.02
%
169.84
%
100%
107.01
%
148.13
%
117.02
%
123.01
%
100%
111.07
Net Assets
100%
100%
Represented By
Surplus
on
revaluation
of
assets
100%
7.4 Horizontal Analysis of Income Statement
Income Statement
2014
445.23
2013
584.82
2012
141.1
2011
185.4
2010
%
179.11
%
143.61
8%
154.4
5%
107.7
100%
%
409.29
%
542.89
4%
123.2
5%
180.9
100%
100%
Page 57
Net of Tax
%
0
701.72
%
0
516.36
4%
0
123.2
8%
0
180.9
4%
8%
100%
7.5 Vertical Analysis of Balance Sheet

Balance Sheet
Assets
2010
2011
2012
2013
2014
100%
100%
34.69
100%
36.27
100%
23.82
100%
16.77

36.94% %
Lendings
to
Financial
%
25.86
%
40.64
Institutions
17.91%
1135.4
9.58%
635.36
%
594.95
6.08%
511.14
%
453.17
Investments
6%
891.24
%
626.53
%
588.20
%
575.93
%
677.08
Advances
%
32.81
%
36.81
%
35.72
%
44.26

43.38%
0.28%
%
0
11.40
%
0
%
0
%
0
Deferred Tax Assets
4.57%
107.25
%
62.04
0
63.39
0
60.93
0
62.88
Other Assets
%
2337.0
%
1512.4
%
1444.8
%
1313.6
%
1394.8
7%
5%
7%
5%
3%
21.78
15.14
10.53
13.69
Cash and balances with treasury

banks
Liabilities
Bills Payable
35.83%
%
94.02
%
34.26
%
66.00
%
113.25
Borrowings
71.83%
2026.0
%
1284.2
%
1256.1
%
1113.9
%
1134.2
6%
0%
15.29
3%
28.59
6%
26.71
2%
26.55
%
0
%
0
Sub-ordinated loans
41.78% %
0
Liabilities against assets subject 0
Page 58
to finance lease
Other Liabilities
Net Assets
0
25.39
0.48%
29.67
0
0.31%
28.17
0.38%
35.81
37.63%
2213.1
%
1440.7
%
1364.3
%
1245.7
%
1323.9
4%
123.92
1%
71.74
0%
80.57
1%
67.93
0%
70.9
2%
48.27
33.27
27.01
28.48
%
21.50
%
34.95
%
31.09
%
34.08
Represented By
Share Capital
65.88%
Reserves
25.21% %
9.73
Inappropriate loss/Profit
%
100.83
6.06%
63.71
4.10%
72.34
4.97%
63.08
1%
65.68
%
23.09%
123.92
%
8.02%
71.74
%
8.22%
80.57
%
4.84%
67.93
%
5.24%
70.92
Surplus on revaluation of assets
3.1
7.6 Vertical Analysis of Income Statement
Income Statement
2014
100%
2.45%
2013
100%
1.49%
2012
100%
6.68%
92.62
2011
100%
3.54%
103.54
2010
100%
6.10%
106.10
Net of Tax
97.54%
69.69%
167.24
98.50%
4.81%
%
0
92.62
%
0
103.54
%
0
106.10
93.68%
Page 59
Chapter VIII
8.1 SWOT ANALYSIS
An analysis indicating towards the organizations strengths, weaknesses, opportunities and threat
is termed as SWOT Analysis. 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 Asker Commercial Bank, I have come across the following
SWOT analysis of the bank.
8.1.1 STRENGTHS
Leading private sector bank
Asker commercial bank 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
Page 60
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 offices in the morning...
ATM network
The bank has the largest ATM Network across 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 centers 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 especially for those who appreciate only the finest things in life,
Priority Banking offers the very highest levels of personalized banking to match customers
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
Page 61
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 dont 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.
8.1.2 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
Page 62
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 specialization
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 centralization in the bank. Almost all the decision-making is in the
hands of the upper management. But centralization 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.
8.1.3OPPORTUNITIES
Apart from the ones discussed in External Factors Evaluation Matrix, the bank is facing the
following threats and opportunities currently:
Promote Islamic Banking
Page 63
Askari commercial Bank promotes Islamic banking in all the branches and in only a few
branches this service is available, these are positive external environmental factors effecting the
organization.
Large amount of foreign investment is attracted
A large amount of foreign investment is attracted to expand their business worldwide it is
external opportunity for Askari commercial bank to avail it and take a competitive edge and
create a strong identity world wide
Steady increase in Customer Deposits
It is opportunity for Asker commercial bank to steady increase customer deposit by adopting new
marketing and promotion scheme and lunch new scheme for their customer
Open branches in rural Areas
It is opportunity for Askari commercial bank to expand their business in rural areas and met
unmet segment in geographical areas and promote their business.
Technological improvements
It is the opportunity for askari bank limited to make technical improvement in their operation and
adopt new technologies of business and make their whole operation automatic it is convince for
both customer and organization to save their time.
Use of ATM as a Credit Card
It can be an opportunity for ACBL 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.
8.1.4 THREATS
High Employees Turnover
Page 64
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 existing customers.
Furthermore, 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 loss of market share
or decrease in the charges resulting in lowering the banks 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.
Legal regulation
Page 65
Legal regulation is serious threat for organization because government changes their policies and
put different kind of taxes and regulation on the organization top management always keeps the
eye on moving trend of government.
High rate of inflation
Higher rate of inflation is a threat for Askari commercial bank the prices of the product and
services up and up and unemployment is increasing very rapidly bank should adopt flexible
policies to give relief their customers.
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 existing customers.
Furthermore, 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 loss of market share
or decrease in the charges resulting in lowering the banks income.
Page 66
Weekly Reports
First week
Duties
In my first week in Askari Bank Limited, they assigned me work in Account
Opening Department. Miss Saima trained me very nicely and I learned a lot
of things in this department.
First of all, they give me a brief summary about bank and its overall
operations. Then they told me about different types of accounts & what are
their main requirements and How to open the account in a bank for the first
time, as well as they also tell me what sort of stamping is required on AOF.
Asin Account opening is a very responsible work because if we open any
account of wrong person, bank may face many problems therefore it is very
important that first possible information about the person is obtained, thus
for that KYC form is filled. The objective of knowing a customer is to
have a fair idea about the identity, financial resources, and general
Page 67
information about the customer at the time when the relationship is

established. A banker must have following information about the customer
e.g. customer name, his contact number, address etc
Hence in General banking, I had learnt about the process of Account Opening
and did the keen study of the Account opening foam and the documents
required for the A/c opening process.
Other activities are
How to fill the deposit Slip if anyone wants to transfer cash in the account or
online
transfer
How to fill the different accounts Form

How to fill the voucher for issuing of the Cheque Book for the first time
How to fill the requisition slip for the second time issuance
How to issue the Cheque Book
How to enter it in the register
Accomplishments:
Thus, after having knowledge about Account opening Department, I was fully
trained in this job i.e. how different types of accounts are opened, how to
issue the cheque book and enter it in the register and how to transfer the
amount through cash or cheque to an account.
Second Week
In my second week they assign me work for Remittances & Online
department, where Miss Farha and Muhammad Usman Khan guides
me and I came to know Demand draft and Pay order preparation. And also
Page 68
about how funds are transferred online from one branch to another of the
same bank.
Duties
As Demand draft is used for out of city payment, pay order is used for local
payment. So we can say that it is a secure source of payment. However in
this week I fill out online inter-branch transaction slips repeatedly. It is such
a slip used for transferring funds online. i.e. for fund transfer & cash
deposit/cheque encashment. Here in this department, I also view forms used
for payment through DD, PO, TT, CDR etc.
Accomplishments
In this week I perform the jobs given by Sir Faheem, and now I am fully
trained in such type of operations i.e. to make the DD, Pay order etc. and
how payment is made using instruments of remittance as well as how
system works for Online transactions. Hence in Remittance department, I
have learnt about procedure of making pay orders & demand draft after
having complete knowledge on them. And also see how slips are filled for DD
& PO services of the bank.
Third Week
In the third Week I have learnt just theoretically about Clearing Department
where Sir Imran guided me very nicely, and I learned lot of things in this
department.
There are two types of clearing.
1. I/W (Inward clearing)
2. O/W (Outward clearing)
When the account holder of this particular branch handovers his cheques to
any third party for payment of his owing (liabilities); and the that third party
Page 69
deposits these cheques and other instruments for collection, then the
clearing of these cheques or other instruments is inward clearing. Similarly
when the customer is an account holder of any other branch or bank and he
deposits cheques and other instruments of other banks for collection, then
the clearing of those cheques or other instruments is outward clearing.
Outward clearing of 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 on.
It should not 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.
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 bank not need be discharged. The instrument
along with pay-in-slip is retained while the counterfoil is given to the
customer duly signed.
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).
Page 70
The instruments are sent to the respective departments

The instruments are scrutinized in each respect before honoring the same.
Fourth Week
Duties
In this week I worked in Accounts and know just theoretically about
Cash Department.
Although they do not assign me work in cash department. But they tell me
about Receipts and Payments and about how to receipt cash and how to
enter it in computer. And in Accounts Department Sir Umer, Khan Zaman
Khan and Sir Shakeel guided me very nicely about all debit and credit
entries of the bank. In this department, I came to know about how the
vouchers of all departments are jotted, sorted and arranged in ascending
order, Sir Farooq also guide me about various types of account and their
account types, daily position for the months, daily activity of the bank, GL
heads and their a/c types, MO transactions etc. here I also come to know that
a cheque no. is composed of
Branch code-Currency code-Transfer type-A/C no-Check digit
e.g. 004501110068873
Main Accounts & their account types are as follow:
01010
CD
01015500---0101700
CURRENT COLLECTION
01021
BBA
01032
VALUE PLUS CURRENT
01030
CDR
01100--01109
PLS
01165
ASDA
01168
FISDA
Some GL heads and their accounts types are as follow and it helps
me in sorting the vouchers:
G1900
ELECTRICITY-GAS/WATER
G5610
MO A/C HEAD
Page 71
G6010
G6025
G7600
G3212
G3220
FORREIGN CURRENCY ON HAND

CASH IN ATM
SUSPENSE A/C
UNIQUE DEPOSIT A/C (BBA)
CALL DEPOSITS
Accomplishments
Since The Account department is very responsible department for any
organization as it has to maintain all accounts of the bank with very keen
observations. So here I have spent a long time almost 2 weeks. Sorting was
one of the very basic tasks that I have done almost on daily basis, and on the
basis of sorting I had also check the activities. And in this way I was fully
trained in this job i.e. to check that all the vouchers are scrutinized and
matched with the activity
Fifth Week
Duties
In fifth Week I worked in Credit Department. In this department ,under the
guidance of Sir Mehboob , I have learnt about the different schemes of
lending, which types of financing is done, which types of securities are
mostly required for financing like running finance, cash finance, funded ,non
funded financing etc. In this department, I also helped my Sir in data entry
work.
Accomplishments:
In this department, I had learnt how the bank advances loans to their
customers like commercial loans etc and what are the main documents
required for loan disbursement. Here in this department I also review various
customers maintained credit file.
Page 72
Sixth week:
Duties:
At last, in my last week I was shifted to the foreign trade department.
Where Miss Amina guide me about how bank helps in import and export
businesses and what are the main documents required for opening Clashed
also helps me in my understanding of FCY accounts and so on. In that
department I also review different firms credit approval report. That helps me
a lot in my understanding of things.
Accomplishments:
Here I had learnt about the procedures that are helpful for the customers to
do trade with foreign countries. Similarly I also did study & review various
customers file for trade documentation.
So in my last week after having a very great time with my colleagues and all
the staff members of the branch, I was well trained in General Banking
Operations.
Chapter IX
Page 73
9.1 CONCLUSION
I observed the Askari Commercial bank a financially sound bank. Its profits are increasingly
year-by-year. Its staff is very good and sincere with the bank. A Sheikh has made significant
progress in building and strengthening both the corporate and retail banking sectors in Pakistan.
Askari Commercial Bank views specialization and service excellence as the cornerstone of its
strategy. The people at bank realize that innovation; creativity, reliability, customized, services
and their execution are they key ingredients for their future growth.
Revenues from these activities have started yielding dividends and they expect significant
growth. They are aware that they have stepped into the 21 st century and they must meet its
challenges by acquiring the highest level of the technology. They will thus be accelerating their
technological advance to enable them to distribute their products and services through most
efficient and high tech means. They say that they will continue to invest in the modern tools and
substantial allocation to resources will be made to achieve this objective during the current year.
Online banking has been started and the introduction of ATM at strategic locations has been
firmed up.
9.2 RECOMMENDATIONS
Page 74
This is the fact that in this universe nothing is perfect. In every field of life there are some pluses
and minuses. But the best institutions are those, which learn from the changing environment and
competition. So it is necessary for them to keep them update with the changing environment.
Although ACBL Lahore Branch is one of the good branches in Lahore but there are few points
that should be improved for more perfection.
Marketing department is very active but the feedback or the follow up of the customers
should be improved.
As everything is computerized in ACBL Lahore, the persons should be properly
trained
in the computer systems.
As we have discussed that this is one of the busy branches in Lahore market, its building is
as per the requirements of the branch. So the building should be further expanded and
not
there
should be more space for the sitting arrangements of the customers.

The ATM service should be provided 24 hours. Because customers feel upset when most of the
times the machine is out of order.
The staff should be decreased in Foreign exchange Dept.., Credit dept. because the
building under operation is in adequate for such a large staff.
Under no circumstances cheque book should be given to the customer if the account
formalities are incomplete
Cheques, which are drawn on Askari Commercial Bank Branch and returned unpaid in
clearing, are not reflected in the statement of account of the customers. This cheque
must
be reflected in the accounts so that credibility of the customers may be assessed.
9.3 Annexure
9.3.1 Organizational Chart of Askari Bank
Page 75
The organizational hierarchy represents the different positions and designations in Askari bank.
However, this is not the reporting hierarchy but merely represents the positions and grades on the
basis of seniority and grades.
BOARD OF
DIRECTORS
Executive
Committee
Internal
Audit
President and
Chief Executive
Corp.
Banking &
Fin. Inst.
Group
Internation
al
Treasury
Corporate
and
Merchant
Banking
Operating
and credit
Regions
Electronic
Rawalpindi/
Islamabad
North
Technolog
Systems
and
Operations
Lahore
Data
East
Asset
Products
Planning and
Corporate
affairs
Investment
products
Human
Reporti
Legal
Affairs
South I
South II
West
9.3.2 SAT BRANCH HIERARCHY
Credit
Cards
Group
group
Credit
Retail
Banking
General Manager/
Page
76
Regional
Manager
esource
Finance
Branch
Manager or
Chief
Manager
Internal
Auditor
Cash/Deposit
Department
Account opening
Department
Foreign
Exchange
Department
Branch
Credit
Committee
Marketing
Department
Bills/
Remittance
Department
Customers Services
Department
9.4 References
1. https://en.wikipedia.org/wiki/Savings_bank
Page 77
Accounts
Department
Credit
Departmen
t
2. https://en.wikipedia.org/wiki/Commercial_bank
3. https://en.wikipedia.org/wiki/Industrial_Development_Bank
4. https://en.wikipedia.org/wiki/Land_development_bank
5. http://primonawal.blogspot.com/2012/05/type-5-indigenous-banks.html
6. https://en.wikipedia.org/wiki/Mortgage_bank
7. http://typeslist.com/different-types-of-banks
8. www.investopedia.com/terms/f/federalreservebank.asp
10. https://en.wikipedia.org/wiki/Community_development_bank
11. https://en.wikipedia.org/wiki/Credit_union
12. https://en.wikipedia.org/wiki/Private_bank
13. https://en.wikipedia.org/wiki/Offshore_bank
15. https://en.wikipedia.org/wiki/Investment_banking
16. https://en.wikipedia.org/wiki/Merchant_bank
18. http://www.investopedia.com/terms/i/islamicbanking.asp
Page 78

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Chapter I

G.C UNIVERSITY Lahore

1.1 Types of Banks

1.1.1 Savings Banks

1.1.2 Commercial Banks

1.1.3 Industrial Development Bank

G.C UNIVERSITY Lahore

Land Developments Bank

1.1.5 Indigenous Banks

1.1.6 Mortgage Banks

G.C UNIVERSITY Lahore

1.1.7 Spare Bank

1.1.8 Federal or National Banks

G.C UNIVERSITY Lahore

1.1.9 Exchange Banks

1.1.10 Consumers Bank

1.1.11 Community Development Banks

1.1.12 Credit Unions

A credit union is a member-owned financial cooperative, democratically controlled by its

development on a local level.[5]

in cooperative banking, such as building societies (11)

1.1.13 Private Banks

1.1.14 Offshore Bank

G.C UNIVERSITY Lahore

little or no taxation (i.e. tax havens)

easy access to deposits (at least in terms of regulation)

protection against local, political, or financial instability(13)

1.1.15 Ethical Banks

1.1.16 Investment Banks

1.1.17 Merchant Banks

G.C UNIVERSITY Lahore

1.1.18 Universal Banks

1.1.19 Islamic Banks

G.C UNIVERSITY Lahore

2.1 BRIEF HISTORY

2.1.1 AWARDS AND ACHIEVEMENTS

Best Retail Bank in Pakistan by the Asian Banker.

1st Consumer Choice Award by the Consumer Association of Pakistan 2004.

Corporate Excellence Award by the Management Association of Pakistan (MAP) 2002,

G.C UNIVERSITY Lahore

The Best Presented Annual Accounts by South Asian Federation of Accountants

G.C UNIVERSITY Lahore

2.1.2 MISSION STATEMENT

As it is said that an organizations culture, products, services, employees, their

To be the leading bank in Pakistan with an international

technology and effective human resource management in a

providing enhanced value to all our stakeholders, and contributing

G.C UNIVERSITY Lahore

2.1.3 VISION STATEMENT

To be the Bank of first choice in the region

G.C UNIVERSITY Lahore

2.1.4 Organizational Structure of

G.C UNIVERSITY Lahore

Written Explanations with

G.C UNIVERSITY Lahore

G.C UNIVERSITY Lahore

G.C UNIVERSITY Lahore

Bills and remmitances

2. Credits and Advances Department

3.1. Account Opening Department

Account of General Customers

Accounts of Special Customer

Account Opening Procedure