Dedication

This piece of work is dedicated to my beloved parent and teachers

who always helped me out in times of woe and distress

and taught me to follow the path of truth, justice, honesty

and to all those who love and care about me

 ACKNOWLEDGEMENT

A milestone of this nature could never have been possible to achiev

e without the support of a galaxy of some truly loving persons. The
events and the process leading to the accomplishment of my object
ive have given me a realization in depth of immense blessing of Alla
h.

Many people have contributed in the successful completion of this i

nternship report. My great appreciation goes to the whole team of A
skari Bank Ltd DHA II Lahore. They provided me with every kind of
help in the completion of this report. Let me also thank my teachers
of Comsats Institute of Information Technology (CIIT) for the kn
owledge they gave me and their guidance in every field. I would als
o like to thank Professor Samar Kamal Fazli for his guidance. Las
t but not the least I would like to thank my parents who provided me
love, support, patience & good knowledge.
 Executive Summary

This internship report consists of profile of the banking sector (indu

stry), its origin, the functioning, how the banks are classified on the
based on function, ownership etc and the trends being followed in t
he industry. Besides the above mentioned this report is focused on
Askari Bank and to be more precise it discusses the inner details of
the bank situated in Lahore DHA II Branch. Askari Bank origin and it
s setup in Pakistan are also discussed in the report.

Askari Bank came to Pakistan and gave banking sector a new horiz
on, today Askari Bank has set firm foot in the industry.

The report further guides through the department and working of th

e general banking. The activities taking place in the bank, the vario
us products of banking are discussed in the report. The report is a v
ery good description of what Askari Bank and its significance is.

Introduction

The name bank is derived from a Latin word bancho meaning desk/
bench, used during the renaissance by the Florentines bankers, wh
o used to make transactions above a desk covered with a green tab
le cloth.

The first modern bank was founded in Italy in Genoa in 1406; its na
me was Banco di San Giorgio (Bank of St. George).

The word bank can be traced down to the ancient Roman Empire,
when money lenders would set up their stalls in the middle of an en
closed courtyard called macella on a long beach called bancu

A banker or bank is a financial institution that acts as a payment ag

ent for customers, and borrows and lends money. Banks act as pay
ment agents by conducting checking or current accounts for custom
ers, paying cheques drawn by customers on the bank, and collectin
g cheques deposited to customers' current accounts.

Banks borrow money by accepting funds deposited on current acco

unt, accepting term deposits and by issuing debt securities such as
banknotes and bonds. Banks lend money by making advances to c
ustomers on current account, by making installment loans, and by i
nvesting in marketable debt securities and other forms of lending.

Banking Companies Ordinance of 1962 defines banking as “bankin

g means accepting, for the purpose of lending or investment, of dep
osits of money from public; repayable on demand or otherwise, and
withdraw able by cheques, drafts, to order or otherwise”.

Industrial profile

Banking is one of the most sensitive businesses all over the world a
nd play important role in the economy of a country and Pakistan is
no exemption and in a contemporary world of money and economy.
The banking system of any economy is an undeniable determinant
of its growth as it provides an efficient channel that routes funds fro
m surplus sectors in the economy towards deficit ones. Banks are
custodian to the assets of the general masses.

It influences and facilitates many different but integrated economic

activities like resources mobilization, poverty elimination, production
and distribution of public finance. It is purchase of car or building of
a home bank is always there to serve public better. Banks play posi
tive and vital role in the overall economic development of the countr
y.

Pakistan has a well-developed banking system, which consists of a

wide variety of institutions ranging from a central bank to commerci
al banks and to specialized agencies to cater for special requireme
nts of specific sectors. The country started without any worthwhile b
anking network in 1947 but witnessed phenomenal growth in the fir
st two decades.

A major achievement of the reforms process has been the transfor

mation of a primarily state owned and weak banking sector into a h
ealthier, market based system, owned by the private sector. This ha
s been facilitated by the restructuring of major banks, ongoing cons
olidation of the sector through mergers and acquisitions, strengthen
ing of the regulatory regime and improvements in transparency, cor
porate governance and credit culture.

Classification of Banks

The commercial banks are classified into various types on the basis
of their spheres of activities, ownership, domicile etc. The main type
s of banks are: -
 Classification on the basis of functions

 Classification on the basis of ownership

Classification on the basis of functions

 Central Bank

 Commercial Banks

 Exchange Banks

 Saving Banks

 Agricultural Banks

 Industrial Banks

Classification on the basis of ownership

 Public sector banks

 Private sector banks

 Cooperative banks

Classification on the basis of domicile

 Domestic Banks

 Foreign Banks
 Banks in Pakistan

Government Owned Banks:

 First Women Bank Limited

 Industrial Development Bank of Pakistan

 Khushhali Bank Limited

 National Bank of Pakistan

 SME Bank Limited

 The Bank of Khyber

 The Bank of Punjab

 The Punjab Provincial Co-operative Bank Limited

 Zarai Taraqiati Bank Limited

Privatized Banks:

 Allied Bank Limited

 Habib Bank Limited

 MCB Bank Limited

 United Bank Limited

Development Financial Institutions:

 House Building Finance Corporation

 National Investment Trust Limited

 Pak Kuwait Investment Company (Pvt.) Limited

 Pak Libya Holding Company (Pvt.) Limited

 Pak Oman Investment Company Limited

 Saudi Pak Industrial & Agricultural Investment Company (Pvt.) Limited

Small and Medium Enterprise (PBA subgroup under for

 mation):

 First Microfinance Bank Limited

 Pak Oman Microfinance Bank Limited

Private Banks:

 Royal bank of Scotland (RBS)

 Arif Habib Bank Limited

 Askari Bank Limited

 Atlas Bank Limited

 Bank Alfalah Limited

 Bank Al Habib Limited

 BankIslami Pakistan Limited

 Crescent Commercial Bank Limited

 Dawood Islamic Bank Limited

 Dubai Islamic Bank Pakistan Limited

 Emirates Global Islamic Bank Limited

 Faysal Bank Limited

 Habib Metropolitan Bank Limited (Merged with Habib Bank AG Zurich i

n October 2006)

 JS Bank Limited

 NIB Bank Limited

 Meezan Bank Limited

 Mybank Limited

 KASB Bank Limited

 SILK Bank

 Soneri Bank Limited

 Standard Chartered Bank (Pakistan) Limited (Re-constituted in Decem
ber 2006)

Foreign Banks:

 Citibank N.A., Pakistan

 Deutsche Bank AG, Pakistan

 Hong Kong & Shanghai Banking Corporation Limited, Pakistan

 Oman International Bank S.O.A.G., Pakistan

 Barclays

Non-Member Banks & Development Financial Institutions:

 Bank of Tokyo Mitsubishi UFJ Limited, Pakistan

 Network Micro Finance Bank Limited

 Pak Brunei investment Company Limited

 Pak Iran Joint Investment Company

 Rozgar Micro Finance Bank

 Tameer Micro Finance Bank Limited

Till the end of 1980s Pakistan banking sector was heavily regulated
in most of the areas of activities. The regulated and nationalized ba
nking system created an industry structure where competition was
unknown to management of the banks, Forced by the structural ref
orms agenda and the desire to strengthen its financial system. Paki
stan moved towards liberalization and financial sector deregulation i
n 1990. It started with the privatization of state owned commercial b
anks and induction of new ones from private sector established a m
arket base banking system. The government seems to be consciou
s about improving the efficiency of banking sector in Pakistan. Few
considerable efforts have been made in this regard which include e
nhanced capital adequacy, strengthening asset quality, improving m
anagement and increasing earnings. Furthermore interest rates der
egulation, abolition of credit controls and further developments in ca
pital market have also led towards a more competitive banking envi
ronment.

The deregulated and increasingly competitive environment poses a

challenge in terms of efficiency as the most efficient banks would su
rvive while the less efficient will be driven out of the market. This ph
enomenon of deregulation started from when banks privatized to in
crease efficiency and effectiveness. The government of Pakistan pe
rmitted small private sectors banks to operate, which indulged in do
ubtful policies to promote business. The public sector banking whic
h constituted the backbone, thus continued to suffer because of thei
r approach, size and carried over liabilities.

In the mean while western banks started entering into the business.
They with the support of ruling elite, concentrated on the big busine
ss, leaving the routine business to local banks. This reduced the pr
ofitability of the local banks. Banking industry has grown and still gr
owing as numbers of banks are increasing and other new entrants
are coming to Pakistan.

Pakistan Banks’ Association

Pakistan Banks’ Association (PBA) represents the Pakistan Bank

ing Industry. Established in 1953, its main objective is to coordinate
the efforts of the banking industry, and to share a common vision of
progress and development with its members.
PBA Membership is institutionalized and is available only to the Ban
ks operating in Pakistan. Currently there are 47 members, categoriz
ed into 6 groups (one of these groups is under formation). Its gover
ning body is an Executive Committee (EC) comprising of 14 memb
 ers, represented by the Chief Executives of the respective member
institutions. Over the years the role of PBA has broadened consider
ably. It is now referred to by the State Bank of Pakistan in formulatio
n of regulations for the banking industry, and has been entrusted wi
th the function of regulating and monitoring certain services provide
d to the banking industry by outside service providers. These servic
e providers include ‘Professional Value’s’, who are evaluators allow
ed to appraise the values of assets collateralized to banks, and Sec
urity Agencies offering security services to the Banking Industry.

Trends of the Banking Industry

Pakistani Banking Industry these days has indulged itself in the foll
owing activities to fulfill the needs of the society.

 Consumer Financing

1. House financing

2. Auto financing

 Micro credit financing

 Islamic Banking

Consumer financing:

Most of the commercial banks have ventured into consumer financi

ng. Consumer financing as the name indicates is simply financing f
or their consumers that may include financing for household produc
ts. Consumer financing also involves two major categories of produ
cts being financed today i.e. House financing & Auto financing.
 House financing is a part of consumer financing as it is also financing
of a product which is of a vital use to the consumers. It is basically pro
viding funds to the consumers especially for the purpose of buying or l
easing a house. In some banks it is also known as house loans.

 Auto financing is another important concept undertaken by banking th

ese days and is without a doubt, the most profitable department as well
for a bank these days. Auto financing is also as the name indicates fina
ncing for Automobiles
In the above mentioned trends there is a very visible benefit for the
customer that is easy purchasing of homes and automobiles. Banks
pay the amount required for the respective item of purchase and th
em the customer pays back the bank in installment or as per his/her
feasibility, the earning of the bank in this procedure is what it get in
return of doing the favor to the customers, the bank charges a certa
in amount of interest on the amount it gives to the customer for purc
hasing of the house or the car and that is where they make profits.

Micro Credit financing:

Micro financing focuses on the people with personal commitment to

improve their lot, do honest labor and have a genuine need for smal
l loans.

Large loans imply few beneficiaries and similarly if big loans default
their losses can be equally hazardous. Converse is true for Micro C
redit Loans.

Due to the tough economic conditions and failure of giant industrial

enterprise all over the world, people have started shifting from big l
oans to small loans and similarly from Industrial financing to consu
mer financing.
Islamic Banking:

Islamic banking is a phenomenon which is continuously gaining pop

ularity in the country, a-lot of effort is being put in to make Islamic b
anking penetrate through the conventional banking. The SBP has in
itiated the process the process of converting conventional banks int
o Islamic banks while the government has initiated a parallel bankin
g strategy of promoting Islamic banking alongside the conventional
banking. Islamic banking is not much different from the conventiona
l banking in terms of the processes being carried out but it deals wit
h all in a more Islamic way for e.g. they don’t charge interest in Isla
mic banking, they only take profits which is in fixed amounts of mon
ey not interest rate over the loan disbursed.

Profile of the company (ACBL)

Askari Bank Limited (the Bank) was incorporated in Pakistan on Oc

tober 9, 1991 as a public limited company and is listed on the Karac
hi, Lahore and Islamabad Stock Exchanges. The registered office o
f the Bank is situated at AWT Plaza, the Mall Rawalpindi. The Bank
obtained its business commencement certificate on February 26, 1
992 and started operations from April 1, 1992. Army Welfare Trust d
irectly and indirectly holds a significant portion of the Bank's share c
apital at the period end. The Bank
has 227 branches (December 31, 2009: 226 branches); 226 in Paki
stan and Azad Jammu and Kashmir, including 31 Islamic banking br
anches, 22 sub-branches and a Wholesale Bank Branch in the King
dom of Bahrain. The Bank is a scheduled commercial bank and is p
rincipally engaged in the business of banking as defined in the Ban
king Companies Ordinance, 1962.

Mission

To be the leading private sector bank in Pakistan with an internation

al presence, delivering quality service through innovative technolog
y and effective human resource management in a modern and prog
ressive organizational culture of meritocracy, maintaining high ethic
al and professional standards, while providing enhanced value to all
our stake-holders, and contributing to society.

Branches
Board of directors
 Lt. Gen. Nadeem Taj Chairman

Lt. Gen (R) Imtiaz Hussain Chairman Executive Committee

Maj Gen (R) Saeed Ahmed Khan Director

Mr. Zafar Alam Khan Sumbal Director

Dr. Bashir Ahmad Khan Director

Mr. Shahid Mahmud Director

Mr. Muhammad Riyazul Haque Director

Mr. Ali Noormahomed Rattansey Director

Mr. Muhammad Rafiquddin Mehkari President& Chief Executiv

e

Mr. M. A. Ghazali Marghoob Company Secretary

Bank’s departmental functions

 Finance department

 Marketing department

 Customer services department

 IT department

 Operations department
 Finance Department

Finance is the major driving force behind an organization, whatever

the business is, it may miss out any other department which will ha
ve an effect but if it misses out finance the business can simply not
run. The basic thought before doing any business is to earn profits,
and it is not possible with the finance personal. If the firm doesn’t kn
ows it expenses it won’t know its surplus incomes as well. Good fin
ance is the key to a successful business.

The role of the support functions in the business management is as

of any front line business function as they primarily deal in managin
g the internal dynamics of the organization to assist in accomplishm
ent of business objective, implementation of strategies and to enfor
ce a sound control environment of harmonizing profitability with gov
ernance goals.

It is one of the support departments of all the division of the bank. T

his department is responsible for the following functions.

 Preparation of financial budget for the annual operation of the bank.

 Recording of transactions pertaining to the annually operations of the

bank.

 Calculating and comparing the variances in the actual results with the
budgeted amounts

 Reconciliation of various accounting records with the records for the e

xternal entities.
 Settlement of dues of the acquirer banks and other parties.

Scope of Activities of the department:

The finance department of the bank is responsible for the budgeting

accounting and reporting of all the operations of the bank.

Reporting line:

The finance department of the bank directly reports to the Group he

ad consumer finance and all the reports sent to the head office and
other authorities are under approval and authority of the group hea
d Consumer finance.

The finance department is of keen interest to the operations depart

ment. It further includes different departments, each having a very v
ital role to play.

 Payables

 Reconciliation

 IP (Item processing)

 Settlement

B.T.F

Balance transfer facility. Askari Bank offers a balance transfer facilit

y to all its members -an easy and convenient way to transfer and pa
y the existing balances of their accounts, issued by other banks in
 Pakistan, through their Banks account.

 Marketing Department

The marketing department handles the activities regarding the pro

motional activities that are held time to time and making agreement
s with different retailers for getting factory prices of their products in
order to make their products more attractive to the customers by cu
tting down prices on buying from their credit cards, like special disc
ount on purchase from credit card.

 Customer Services

Customer service is a very self explanatory term. Customer service

s involve services like; after sale service and satisfying customer ne
eds in case they are facing any problems in the service.

They also handle the applications declined by verification departme

nt, by reviewing them and sending letters to re apply for clients if th
ey are legible.

 Operations Department
Survival and success of any organization requires its operations to
be tightly monitored and performed well. Askari Bank believes in ha
ndling its operations in an efficient way. A department has been spe
cially designed to carry the operations held. The operations depart
ment has a hawk’s eye over all the departments working for the ban
k but certain departments are made a part of the operations depart
ment because of their well known importance. The departments un
 der the Operations department are;

 Embossing Department

 Mailing Department

 Recovery Department

 Collection Department

 Authorization

 Designing Department

 Human Resource & Greeting Department

 IT department.

 Embossing Department;
They receive data of clients; their work function is to print the accou
nt numbers, it is very easy to say but this department has its own si
gnificance.

 Mailing Department;
Mailing department has a very vital role in the structure their basic t
asks are listed below

 Receive Mails; mail receiving is one of the jobs of this department this
is pretty tedious task, receiving mails for the entire bank, the mail inclu
de; billing receipts, new applications, billing applications etc
 Bills Mailing; The payment of and for the bank also follow the path whi
ch pass the mailing department
Besides the above mentioned tasks though they are pretty tedious t
hem self, the mailing department is also responsible for the inventor
y caretaking for the bank.

 Collection Department;
These are the people who are always being “CURSED” by the cust
omers because to pay an amount from your very own pocket is not
an easy thing. Plastic money is just like honey when we use it. It giv
es us a yummy taste because we are not using our own money, but
when we receive our bills we feel like having chilly taste with lots of
black pepper of this yummy honey. So people in collection departm
ent try to give customers black pepper in a very pleasant way. They
make calls, calls & calls (bundle of calls) to late payment holders up
till 3 months of bill issuance. They make people afraid to collect due
payment.

 Authorization;
This department monitors all transactions being made on the accou
nts through the system. This department also looks for any fraudule
nt activities.

 HR & Greeting Department;

Human resource department has a check on the entire system and
make sure that the employees are performing their best. Some acti
vities performed by HR department are:

 Hiring new employees.

 Contract Renewals.

 Performance Appraisals
 Increment in salaries

 Bonuses Decisions

 Leaves
Greeting employees are there to greet walk in customers and guide
them.

 IT Department
IT is one of the most important sectors these days, no organization i
s complete without the aid from IT department similar is the case wi
th Askari Bank, IT department has the most important role that is joi
ning the departments with each other, every department is linked wi
th the other department by means of networking of Computer and a
n intercom with about 300 telephone set is laid in the center. The IT
department has a lot more to contribute in the center for instance e
verything nowadays is done on computers and there are different s
oftware’s for different business activities, the IT department keeps e
verything ready for every department. This department though does
not have a visible role but can without a doubt be referred to as the
back bone of the company.
 GENERAL BANKING

ACCOUNT OPENING PROCEDURE:

Opening of bank account is the primary step to a relationship betwe

en the bank and the customer. As the opening of a bank account by
a person makes him a customer of the bank, the account opening p
rocess must not be considered just a formality. Knowing the custom
er should be the objective of the banker and customer due diligenc
e must be done prior to establishment of the relationship. The basic
documents to be obtained at the time of opening of account are:

 Account opening form (Annexure ‘I’)

 National identity card or Passport

 Specimen signature card (Annexure ‘II’)

 Additional documents depending on the constitution of the account

Know your customer (KYC):

While opening accounts of customers, all reasonabl

e efforts must make to determine the true identity of the customer a
nd the sources & utilizations of funds. To have a uniform procedure
for customer due diligence, a Know Your Customer (KYC) Form (An
nexure ‘III’) has been introduced which is to be completed by the ac
count opening officer/ operations manager/ branch manager. Durin
g the course of meetings with the customer to complete the account
opening formalities, they should be asked about the type of the tran
sactions for which the bank account would be used and any inform
ation gathered must be recorded on the KYC Form. Any further info
rmation felt necessary and obtained during conversation with the cu
 stomer should be recorded on the KYC Form and placed on record.

Informal session with the customer:

An informal session with the customer should be arra

nged to assess and ascertain his/her credibility. While having a face
to face interactive session with the customer, following points must
be borne in mind, so that at the time of filling the KYC form, comme
nts column would contain all the required and necessary informatio
n.

For a salaried person:

 Name of employer

 Designation of the customer

 Approximate salary

 Area of residence

 Residence status whether owned, rented etc.

 Expected inflow/ transfer of funds in the account

 Overall background

 Source of funds

 Accounts with other banks

 Any other information

 For self-employed:

 Name of the concern

 Constitution of the concern

 Field of operation

 Nature of transactions

 Expected inflow/ transfer of funds in the account

 Source of funds

 Legitimacy of the business

 Accounts with details of facilities with other banks

 Area of residence

 Residence status whether owned, rented etc.

 Overall background

 Any other information

For an organization:

 Check all necessary documentation as mentioned in the manual has b

een obtained and all necessary formalities of account opening have be
en completed.

 Obtain brief profile of the partners, directors etc. to ascertain their credi
bility.
 Take adequate measures to obtain all relevant information i.e. indepen
dent verification of the partners, directors etc. and the organization.

 Obtain a report from the customer’s other/ previous bankers

 Clearly understand the pattern of transactions to be conducted by the o

rganization.

 Make possible efforts to gather information relating to the customer’s s

ource of wealth to ensure that business is transacted only with custom
ers of repute involved in legitimate business activities.

 Account opening officer/ manager operations/ branch manager should

personally meet the key individuals of the organization and conduct the
ir due diligence.

Account Opening Form:

A senior officer should be designated by the branch manager t

o handle the account opening function. Prior to opening of the acco
unt, the account opening form and all the related documents must b
e scrutinized and approved by the branch manager personally. It m
ust be ensured that all columns of the account opening form are cor
rectly & properly filled and the customer has read & understood Rul
es & Regulations for conduct of accounts that are printed on the rev
erse of the account opening form. No column of the form should be
left blank and columns not applicable to a particular customer shoul
d be marked so to guard against unauthorized additions. Following
guidelines must be followed in this regard:

 Title of account must be in block letters and it should corroborate the n

ame on the National Identity Card/Passport.
 The type of account i.e. Current, PLS or Term must be clearly mentione
d.

 The status of the account holder i.e. Resident or Non-Resident must b

e specifically marked.

 The currency in which the account is to be opened must be specified.

 Full name of the customer along with the father’s/ husband’s name, NI
C number/ Passport number, place of birth, NTN, occupation & occupa
tional details including occupational address (the occupation must be cl
early and specifically defined, vague terms such as business, trading, s
ervice etc. are insufficient, the extract nature of the occupation or the pl
ace of employment must be ascertained and recorded) personal comm
unication details & details of Next of Kin, as applicable must be recorde
d.

 Instructions for deductions of Zakat must also be noted on the AOF.

 Any other instructions such as holding of mail etc. must also be mentio
ned on the AOF.

 Terms of operation of the account whether singly, jointly, by either or su

rvivor or jointly by any of the authorized signatories of the account mus
t also be noted.

Introduction of an account

To ascertain the credibility of the customer, the account must be in

troduced by another account holder.

Preference should be given to introduction by an existing account h

older of the branch. Emphasis is being made for introduction by an
existing account holder because the existing account holder’s integr
ity has already been assessed by the branch at the time of opening
of the account of the introducer. Such introduction must be accepte
d.

In case where an existing account holder of the bank is introducing

the account, the account opening form must be sent to the concern
ed branch where the introducer is maintaining his account for verific
ation of the introduction and the account of the customer should be
opened only upon receipt of the verified Account Opening Form. Alt
ernatively, the signatures of the introducer can also be verified thro
ugh On-line Banking System.

Where the introducer is not an account holder of our bank, the intro
duction should only be accepted and account opened after having t
he signature of the introducer verified from the bank where the acco
unt is being maintained. The signature of the verifying authority mu
st be authenticated from the Authorized Signatures Book of the ban
k.

Introduction from employees may also be accepted but should be di

scouraged. In cases where a staff member introduces the account,
it should only be accepted when the employee personally knows th
e customer’s background/ activities.

Where the customer is bringing in substantial deposits and a custo

mer maintaining a nominal balance introduces the account, discreet
market investigation must be done for such a customer.

Only verification of signatures of the introducer is not sufficient to es

tablish a new account relationship and the account must only be op
ened if the branch is satisfied with the antecedents of the customer.

Regulation:

State Bank of Pakistan Regulation M-1 of Prudential Regulations fo

 r Corporate/ Commercial Banking relates to Account Opening and t
hus it has been made an integral part of the this Manual as Annexur
e ‘IV’.

Status of customer

RESIDENT:

A resident would mean any person residing in Pakistan

and holding a Pakistani Nationality or an expatriate having a valid p
ermit for residing in Pakistan or an employee of a consulate of a Fo
reign Country or firms which are incorporated abroad but operate in
Pakistan or a Judicial Entity licensed to operate in Pakistan.

NON-RESIDENT:

Individual firms and companies resident in countries out

side Pakistan are designated as Non-Resident. All Pakistani Nation
als and persons domiciled in Pakistan except persons holding office
in the service of Pakistan who go out of Pakistan for any purpose vi
z., employment, study, business, pleasure etc. are treated as Non-
Resident for so long as they remain outside Pakistan and all such a
ccounts are regarded as accounts of countries in which the account
holder is residing. Non-Resident accounts can be categorized as fol
lows:

 Pakistani nationals permanently residing and domiciled abroad

 Pakistani nationals who are abroad for short visits

 Foreign nationals residing abroad

 Foreign nationals ordinarily residing in Pakistan but gone abroad for sh
ort visits.
Where an account of a resident is held jointly with a Non-Resident, i
t shall be treated as a Non-Resident Account.

TYPES OF ACCOUNTS

1) Current Account
It is an account in which profit is paid on the balances. A
ny individual, firm, charitable institution, corporation, association etc,
and residents as well as non-residents can open and operate a cur
rent account.

2) Profit and Loss Sharing Account

It is an account in which profit is paid on the balance
s. Depending on the nature of the account the profit is calculated an
d credited to the account monthly, quarterly or bi-annually. Tempora
ry Running Finance Facility is not extended to PLS Accounts.

 Profit Calculation and Payment

Depending on the nature of the a
ccount i.e. whether the profit is to be calculated on minimum monthl
y balance, average monthly balance or on daily product basis, the s
ame must be defined in the system. The indicative rates of profit ar
e to be fed into the system which would then automatically accrue t
he profit and credit the account on monthly, quarterly or half-yearly
basis as the case may be.
  Deduction of withholding tax on profit
The system automatically calcula
tes the amount to be deducted as withholding tax currently 10% for
residents and 30% for non-residents on profit paid and credits the r
espective tax payable head for onward payment to the tax authoriti
es. The withholding tax so deducted must be deposited in the Govt
treasury within seven days of deduction. Withholding tax on profit s
hall not be deducted if the customer submits a valid tax exemption
certificate issued by the Income tax Commissioner.

 Deduction of Zakat
Zakat would be deducted @ 2.5% on the credit
balance over and above the declared NISAB for the year. PLS acco
unt holders would be required to furnish a Zakat Exemption Certific
ate on the prescribed format to be exempted from this compulsory
deduction. The exemption certificate must be executed and submitt
ed to the branch, one month prior to the month of Ramadan. Signat
ures of the customers must be verified on the Zakat Exemption For
m. A check has to be applied in the system in case of Zakat Exempt
ion failing which the system would automatically debit the same fro

m the account on the 1st day of Ramadan each year. The NISAB a
nd procedure for deposit of Zakat is circulated each year before the

1st day of Ramadan by the systems and operations department, He

ad Office.

3) Profit and Loss Sharing Term Deposit Receipt

PLS TDR is a time deposit for a fixed tenure in the sh
ape of a deposit receipt payable on demand. The rate of return appl
icable on PLS TDR is based on the indicative rates of profit declare
d by the systems and operations department, Head Office. Full acc
ount opening formalities including KYC procedure should be followe
d for issuance of PLS TDR. The customer however should be enco
uraged to open an account. As the PLS TDR is in the shape of a de
posit receipt, no cheque book is issued. In case of deposit through
cash, voucher would be prepared by the concerned officer and han
ded over to the customer for deposit of cash with the teller.

 Silent features:

 It is not negotiable

 It is not transferable

 Rates applicable on the original Term Deposit would be a

pplied on the whole completed period in case of late enca
shment

 The encashment could be made either in cash over the c

ounter or credited to an account in case an account is mai
ntained with the branch issuing the PLS TDR

 Withholding tax at 10% for residents and 30% for non-resi

dents would be deducted from the profit amount

 In case where the instructions are for roll over on maturity,

same would be rolled over and converted into a new PLS
TDR

 Preparation of a PLS TDR:

Each branch is supplied with a stock of pre-numb
ered printed blocks of PLS TDR. The same being security stationer
y must be kept under lock and key in dual custody and the running
block, which is in use and in possession of the concerned officer, m
ust be kept in the safe at the end of the day. The PLS TDR is in two
 parts, the Counterfoil that is retained by the bank as a permanent re
cord and the Receipt, which is given to the customer.

While issuing the PLS TDR following is recorded:

 Amount of deposits in words and figures

 Tenure

 Name of depositor

 Maturity due

 The amount in figures is imprinted by a cheque writer

 Signed by two authorized signatories as per signing instructio

n
The PLS TDR is delivered to the depositor upon acknowledgement
which is his signature on the reverse of the counterfoil which would
be verified from the signature on the Account Opening Form.

 Due Date Diary:

A Due Date Diary shall be maintained for maturity of TDR’s.

FOREIGN CURRENCY ACCOUNTS

Foreign Currency Accounts can be opened in US Dollars, Pound st

erling, Japanese Yen and Euro for both resident and non-resident.
The account opening procedure would be discussed and the followi
ng types:

i. Current

ii. Saving
iii. Fixed Deposit
Additional requirements and exceptions are outlined hereunder:

 No Zakat is deducted

 Interest on Saving account and Fixed Deposit are circulated by the Inte
rnational Division

 Prior approval of International Division would be sought for deposits of

3 months and above

 Deposit in cash should be avoided if the retention period is less than 2

weeks

 All deposits and withdrawals in all types of foreign currency accounts al

ong with balances in each foreign currency are to be communicated to
the Treasury Division on a daily basis as per the cut off time.

 Deposits in cash would be subject to cash handling charges as per Sc

hedule of Charges in force.

Safe Custody & Deposit Facility

Safe Custody Facility

 Bankers accept valuables from customers as they have adequate secu

rity arrangements.

 Banker-Customer Relationship is based on the contract of bailment.

Banker Customer
Bailee Bailor
 Bailment:

It is the delivery of goods by one person for some purpose u

pon a contract that the goods shall when the purpose is accomplish
ed shall be returned or otherwise disposed of according to the direc
tions of the persons delivering them.

Obligations of the banker:

 Banker should take proper care

 Bailee has to return the goods subject to the demand from the bailor

 Banker should not use the articles

 Banker has to deliver the goods to the customer according to his instru
ctions

Receipt of securities:

Sealed Boxes:

 Bank accept sealed boxes of convenient sizes

 While accepting a box banker should see that the box is seal wit
h the customer’s seal

 Words “CONTENTS UNKNOWN” should be prominently written

on such boxes
Sealed packets containing wills:

 Banker also accepts from customers for safe custody wills or se

aled packets said to contain a will

 With the instructions to deliver the packet after his death to a na

med person
  Before delivering the packet banker should satisfy himself that t
he person is named as an executor in the will

Safe Custody Receipt:

In case of shares, securities or articles

 Name & address of customer

 Mode of operation

 Full particulars of shares/securities

Delivery of securities

 Full Delivery: Customer has to surrender receipt duly discharged/sig

ned by him

 Part Delivery: Customer has to submit a delivery order along with re

ceipt

 The bank will strike out the delivered articles from the receipt

Safe Custody Facility

 Banker Customer Relationship

Banker Lesso Customer Le

r ssee
 Lo ckers cabinets are instal
led in separate rooms

 Each locker has only one key to be used by the customer

 The number of the key and the locker to which it relates are not the sa
 me

 2nd key is known as master key it is applied by the banker while openi
ng the locker along with the key of the customer

Operations of locker

 Locker operations are controlled by contract, which contains the rules

and conditions which govern the vault operations

 So contract is the basic document that set out the relationship between
banker and a customer

Guidelines to minimize improper access

 In case of joint locker, never deviate from its terms

 Never allow access even to an authorized agent on notice of death, me

ntal incapacity or in solvency of the licensee or one of the several joint l
icensees until legal requirements have been properly fulfilled

 Never allow excess if served with an attachment order or other restrain

ing orders without first consulting the legal department

 Customer’s keys should never be in the possession of the custodian of

the vault

Licensing of lockers

 Lockers can only be rented out to the legally capable persons

 Can be allotted singly or jointly

 Filling up and signing of application form and SS card

 Admission of signatures

 Pasting of application forms

 Allot locker from the “locker chart” and mark locker number so allotted i
n pencil on the chart

 Demonstrate operation of the locker to the licensee

 Keys of the un-rented lockers and those surrendered by the licensees

must be kept in the safe under dual control of the officers

Rent Key Deposits

 Initial recovery of rent & key deposit must be recorded on application fo

rm

 Recovery of charges are to be balanced on monthly basis and record o

f each licensee of lockers is to be maintained in locker issue register

 Record of key deposits and their subsequent refunds is to be made in t

he locker issue register

 As rent of locker is received in advance the custodian of locker must ch

eck the record and diaries them for necessary compliance

 In case rent is not deposited within 7 days from the date it becomes du
e the licensee be requested to deposit the rent, subsequent reminders
be sent on monthly basis and if after 4 reminders the rent is not receive
d a notice be sent through Registered A/D giving therein 30 days to de
posit the rent and in case of failure the locker will be broken open

VOUCHERS
 Dr: Cash / Party’s Account

Cr: Income Account Rent-Locker

Cr: Sundry Deposits-Key Deposits

Forced Opening of Locker

 In the extreme event of forced opening due to termination of lease agre

ement for non payment of rent locker may be opened subject to:

 Prior approval of Head Office

 In the presence of

i. Notary Public

ii. Custodian of Locker

iii. Branch Manager

iv. Resident Authority

 After the force opening of locker:

 Remove contents

 Prepare inventory of the removed articles in quadruplicate

i. Original copy of Notary Public

ii. Duplicate is to be sent to the licensee through registered A/D po

st

iii. 3rd copy is to be kept along with the articles of the locker in the
packet
 iv. 4th copy is retained as office copy by the custodian of the locker
s

 The packet containing the removed articles and inventory is sealed in t

he presence of all the persons, mentioned earlier.

 The packet is retained under lien against unpaid rent of the locker and
other expenses incurred on the forced opening.

 If the contents remained unclaimed for 6 months, rent and other dues h
ave also not been paid, then the licensee be given a 30 days notice, aft
er Head Office approval, stating that articles in whole or part will be sol
d to appropriate the proceeds towards the recovery of dues

 Surplus amount, if any, shall be remitted to the ex-licensee

Breaking open lockers

 In case the locker is required to be broken open by the licensee due to

loss of key following steps to be taken:

1) Letter of request from the licensee on the prescribed format

2) Verification of signatures

3) Approval of manager

4) Arrangements for breaking open and replacement of lock to be

made

5) Licensee is asked to remain present in the bank at that time

6) Locker should be broken open in presence of

 Licensee
  Custodian of locker vault

 Manager operations

7) After breaking open the licensee should remove his articles fro
m the locker

8) A certificate as per specimen is obtained from the licensee, whi

ch contains that:

 Locker was broken open on his request

 In his presence

 He has received the contents

 He has checked the contents and found in order

REMITTANCES
“Transfer of funds from one place to another”.

Products:

 Demand draft (intercity)

 Mail transfer (inter/intra city)

 Telegraphic transfer (intercity)

 Pay order (intercity)

 Rupee traveller’s cheques (inter/intra city)

 Online transfer of funds (inter/intra city)

 Know Your Customer

 The officer in charge of remittances department should check the follo

wing registers on daily basis

 Inward Remittances Register

 Outward Remittances Register

 Travellers Cheques Register

 Clear & complete particulars of the beneficiary of outward remittances

should be obtained & recorded in the Remittances Application Form

 Genuineness of funds being remitted should be investigated keeping in

mind following factors:

 Debit in the account is not an aggregate of smaller credits

 Deposit of cash in account immediately prior/along with request of r

emittances

 Several accounts are not being debited to build up the aggregate amou
nt of remittances where nature of business does not justify

 The account is not being used only for the purpose of effecting/receivin
g remittances/transfer of funds to other accounts without any business
personal banking related transactions

 While handling remittances it should be ensured that the amount is in li

ne with the business size/profession of beneficiary

 All electronic/telegraphic transfers should bear the name/address of re

 mitter

 Branches should ensure purpose & genuineness of large purchase of

multiple monitory instruments of significant amount by the customer

 Due notice must be taken of unusual instructions such that remitted fun
ds are expected back through some different source/country

 Large remittances to/from countries generally associated with the prod

uction/distribution & making of narcotics, illegal weapons & other unlaw
ful trades should be monitored

 Genuineness of funds being remitted should be investigated keeping in

mind following factors:

 Debit in the account is not an aggregate of smaller credits

 Deposit of cash in account immediately prior/along with request of r

emittances

DEMAND DRAFT

 Written Order

 To pay Money

 Drawn by one office of a bank upon another office of same bank

Uses:

One of the most reliable modes of transfer of funds

Used for intercity remittances of funds

 Eligibility Criteria:

Should not be a:

 Minor

 Illiterate Persons

 Insane Persons
Can be issued to:

 Individuals

 Joint Names

 Business Concerns
Can be issued against:

 To the debit of customer’s account

 Against cheque

 Debit authority

Issuance of DD

 Filling up of application form

 Recovery of charges

 Deposit of cash/cheque

 Entry in system for preparation of DD, IBCA, printing of DD issue regist

er

 Delivery of DD
 Payment of DD

 On receipt of IBCA

 Scrutiny of IBCA

 Verification of signatures of officers of issuing branch

 Entry in the system

 Vouchering

 Payment through suspense account

 Special care must be exercised

 Entry in system

 Intimation to drawee branch

 Payment through suspense account should be authorized by the Mana

ger Operations

 Cancellation of DD by authorized officers

Issuance of Duplicate DD

 Written Request

 Verification of Signature
 Marking in the System

 Intimation to Drawee Branch

 On receipt of reply from Drawee branch

 Intimation to purchaser

 Letter of indemnity

 Duplicate DD, which must contain on its face following wording:

“Duplicate DD issued in lieu of original No-……….. Dated ……
…. Reported lost”

 Noting in DD system

 Intimation to drawee branch

Cancellation of DD for refund

 Written request by purchaser

 Verification of signature

 Genuineness of DD is established

 Scrutiny of DD specially on the grounds that it has not been negotiated

or duplicate of the same has been issued

 DD is cancelled by tearing the signed portion of DD and marking the sa

me as “Cancelled”

 Mark cancellation of DD and date of cancellation

 On original application form

  DD system

 Refund of Amount
If purchaser is not account holder than the amount of D
D is credited in his account otherwise refund is made through Pay
Slip.

 The original DD is defaced & stapled with the Debit Voucher of Suspen
se account

 On receipt of IBCA from the drawee branch entry of suspense account

is reversed

Issuing Branch Drawee Br

anch

 Receipt of application o Scrutiny of

 Cancellation of DD Intimation
Dr: suspense a/c DD cancelled System

Cr: party’s a/c. cash o Vouchering

Dr: Bills paya

ble a/c DD payable

 Intimation to drawee branch Cr: Mo a/c of Issuing Bra

nch

 On receipt of IBCA
Dr: MO a/c of drawee branch

Cr: suspense a/c DD cancelled

 Crossing

Section 123 of N.I.Act 1881:

Where a cheque bears across its face an addition of the words and
company or any other abbreviation between two parallel transverse
lines simply, either with or without words not negotiable the addition
shall be deemed to be a crossing and cheque shall be deemed to b
e crossed generally.

Cheque Crossed Account Payee

Sec 123 A:

Where a cheque crossed generally bears across it’s an addition of t

he words “account payee” between two parallel transverse lines co
nstituting the general crossing, the cheque besides being crossed g
enerally is said to be crossed.

Special crossing

Sec 124:

Where a cheque bears across its face an addition of the name of th

e banker either with or without words not negotiable that addition sh
all be deemed a special crossing and the cheque shall be deemed t
o be crossed specially and be crossed to the banker.

Development of crossing

A bank clearing clerk named Irvin originated the idea which finally le
d to the establishment of the London Clearing House at Lombard St
reet in 1775.

Protection available to the Collection Banker

Sec 131 of N.I.Act 1881:

 Condition essential for obtaining protection:

 Cheque must be crossed

 Payment must be received by the banker on behalf of the customer

 Collecting banker must act in good faith

Role of SBP

 Being central bank, SBP is responsible for smooth operation of clearin

g system. SBP acts as bankers’ bank.

 NBP performs this function on behalf of SBP where office of SBP does
not exist.

Clearing Membership

 All scheduled banks are full fledged members of clearing house.

 Non-scheduled banks can be sub members through a scheduled bank.

 Application in writing with a nominal fee is needed for membership.

 The membership ceases when a bank ceases to be a scheduled bank.

Outward clearing at branches

 Receipts of Instrument

 Instrument must be accepted on the Bank’s pay-in-slip

 Deposit slip should contain

  Instrument number

 Name of drawee bank and branch

 Signature of depositor

 Immediately on receipt on instrument

 Affix bank crossing & clearing stamp on the face of the instrume
nt

 Proper discharge on the reverse of instrument

 Depositor account number on the reverse for ease of any subse

quent reference

 Computerized bank wise schedule is prepared in duplicate one copy of

which is retained in the branch while other copy is sent to the main bra
nch along with instruments

 Consolidation bank wise summary is also prepared in duplicate one co

py of this is sent to the main branch along with outward clearing

Guidelines for giving discharge on instrument

 If instrument is Bearer/open, draw in favour of a limited company

 If instrument is bearer but crossed “Account Payee Only”

 If instrument is bearer but crossed generally (& Co/Not negotiable) dra

wn in favour of a limited company.

 If instrument is order (whether crossed or not deposited in payee’s acc

ount)
 If instrument is order & crossed generally & being deposited in endorse
e’s account

 If instrument is bearer & crossed either generally or crossed not negoti

able, drawn in favour of a limited company

 If instrument is mutilated but being credited to a well known customers

account as payee

 If instrument is collected as agent for another bank

 In case DD being deposited in a well known customer’s Account as pa

yee

 In case of cheque being collected in special clearing for payee

Collection
Article 2 of URC 522

 For the purpose of these Articles

 “Collection” means the handling by banks of documents as defin

ed in sub Article 2(b), in accordance with instruments received, i
n order to

i. Obtain payment or acceptance OR

ii. Deliver documents against payment &/or against acceptance

iii. Deliver documents on other terms & conditions

 Documents means financial documents and/or means commerci

al documents

i. Financial document means bill of exchange, promissory notes, che

ques or other similar instruments used for obtaining the payment of
money

ii. Commercial documents means invoices, transport documents, doc

uments of title or other similar documents or any other document w
hat so ever, not being financial document

 Clean collection means collection of financial documents not acc

ompanied by commercial documents

 Documentary collection means collection of:

i. Financial documents accompanied by commercial documents

ii. Commercial documents not accompanied by financial documents

BUSINESS OPERATIONS
Organizational chart

Marketing strategy
Most companies use the term marketing mix to describe the combin
ation of elements that they use to achieve goals for selling and pro
moting their products and services. When the company decides whi
 ch elements it will use, it calls that particular marketing mix its mark
eting strategy.

The major marketing management decisions can be classified in on

e of the following four categories:

 Product => physical item/service provided by bank

 Price => commission received

 Place (distribution)=> placement of product/service

 Promotion => means of spreading the words about the product

/service

These variables are known as the marketing mix or the 4 P's of m

arketing. They are the variables that marketing managers can cont
rol in order to best satisfy customers in the target market.

1) Product
“The end result of the manufacturing process, to be offered to
the marketplace to satisfy a need or want.”

 Askari Mahana Bachat Account (1 + 3 Years Term)

“Earn Rs. 925/- per month on investment of every Rs. 100,000/- for one y
ear!"

“Earn Rs. 1,000/- per month on investment of every Rs. 100,000/- for thre
e years!”

Askari Mahana Bachat Account is a Term Deposit facility available t

o individual customer with the option of 1 and 3 Years tenure. It has
been designed keeping in view savings needs of individual investor
s who don’t want to block their funds for longer terms, with a compe
titive rate of return paid monthly on the 1st of every month. A financi
ng facility up to 90% will be available for customers if required.

Features:
 Product type Term deposit

Eligibility Individual only

Balance requirement Mini Rs.50, 000/- max Rs.10, 000,000

In multiples of Rs.25, 000/-

Tenure 1+3 years

Profit payment Monthly - 1st of every month

Profit rates Competitive

Servicing Available at all Askari bank branches

Financing limits Upto 90% of the principal amount

 Askari Roshan Mustaqbil Deposit

Askari Bank has launched the Askari Roshan Mustaqbil Deposit, a

saving plan specially designed for individual investors who wish to i
nvest for a regular return at a later stage while keeping their princip
al amount intact. With Askari Roshan Mustaqbil Deposit you can do
uble your investment in a time period of ten years. Invest in the for
m of monthly deposits for five years and get paid back the same am
ount for the next five years while receiving principal amount in full at
the end of the tenure.

Features:

P Term Deposit
r
o
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u
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t
T
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e
:

E
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P Monthly – on co
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:

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 r
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L
i
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i
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:

 Askari Deposit Multiplier Account

“Value of initial investment of Rs. 100,000/- will increase to Rs.

265,000/- at maturity!”

Aim higher with your investments with Askari Deposit Multiplier acc
ount. This account is for individual investors whose purpose is long
term savings with high returns. With a tenure of 10 Years and a co
mpetitive rate of return on maturity this account is ideal for investors
who wish to start saving for their future today.

Features:

P
r
o
d
u
c
t
Term Deposit

T
y
p
e
:

E Individuals Onl
l y
i
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i
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:
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u
Rs. 10,000,000
i
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e
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e
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s
:

T 10 Years
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e
:

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a
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:

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:
 Askari value plus deposits
“The Best You Deserve”

Askari Bank leads the way, yet again with the introduction of Askari
Value plus Rupee Deposit Accounts, which promise greater financia
l freedom and security, in an un-matched way.

Types of Value plus Account

1. Value Plus Current Account

2. Value Plus Saving Account

3. Value Plus Time Deposits

Why Askari Value Plus Account?

1. Free issuance of Debit Card

2. Free global accidental insurance coverage against debit card irrespecti

ve of balance in the account or age of the cardholder

3. Free ATM Cash Withdrawal insurance

4. Free online funds transfer facility

5. Free internet banking services

6. Free of cost 24 hours global accidental insurance coverage up to Rs. 2

million

7. Facility of Supplementary Debit Cards

8. Monthly returns on saving deposits

9. Partial encashment facility for time deposits

10. Automatic roll over facility for time deposits

11. Our un-matched service quality

 ASKCARD

Askari Bank is committed to provide innovative and competitive sol

utions to banking needs in a more efficient and personalized manne
 r. Bank enjoys a strategic competitive advantage over all domestic
players by virtue of its leadership, large network and technological
advancement. In line with tradition of innovation, Askari Bank takes
pride in announcing launch of Askari Bank's Debit Card.

Askari Debit Card means freedom, comfort, convenience and secur

ity, so that one can have retail transactions with complete peace of
mind. Askari Debit Card is new shopping companion which enhanc
es quality of life by letting you do shopping, dine at restaurants, pay
utility bills, transfer funds, withdraw and deposit cash through ATM
anywhere, anytime.

"Convenience at its best"

Why ASKCARD?

 Free of Cost (24) hours Global Accidental Life Insurance upto Rs. 500,
000/- for every cardholder irrespective of balance in the account

 Free ATM Cash Withdrawal Insurance upto daily cash withdrawal limit
of the cardholder against snatching, armed hold-up or forced deprivatio
n of money

 Free issuance of Debit Card for new Value Plus Accountholders

 Umrah Tickets for 2 lucky cardholders (Each year)

 Home insurance of 10 lucky cardholders (Each year)

 No hidden charges

 Free from carrying cash or cheque books

 Free Funds Transfer Facility

 Free Utility Bills Payments through ATM’s

 Shopping Facility at POS terminals

 Maximum daily cash withdrawal limit

 Balance Inquiry, Mini Statement

 Supplementary Cards

 Un-matched Online Real-time Services

 Askari rupee traveller cheques

Askari Bank Limited has always remained at forefront in introducing

innovative and unique products in banking sector. Financial instrum
ents provide greater financial freedom and security in an unmatche
d way to our valued customers.

Askari Bank offers you its "Rupee Traveler Cheques" eliminating all
financial risks while traveling. So avoid risk of carrying cash through
Askari Bank's Rupee Traveler Cheques.

"You’re Best Travelling Companion"

Why Askari Bank's Rupee Traveler Cheques?

1. Free issuance

2. Free encashment

3. Profit will be offered at the time of encashment*

4. Nationwide acceptability

5. Facility of encashment in cash to the purchaser

6. Facility of encashment through clearing

7. No purchasing limit

8. Valid until encashed

9. Easily transferable

10. Account relationship not mandatory

11. Fastest refund procedure in case of loss / theft

12. Safe & secure mode of funds transfer

13. Available in Rs. 10,000 Denomination at all branches of Askari Bank

14. Perfect substitute of your cash

 Smart Cash

Product Featuring:

Resid
ent Pa
Borro
kistani
wer:
Nation
als
Perso

Facilit nal Lin

y: e of C
redit.
Maxim
um up
to Rs.
500,0
00/-(C
Finan lean)
cing L Maxim
imits: um up
to Rs.
1 Milli
on (Se
cured)

Tenor: One y
ear (re
newab
 le).
Month
ly debt
servici
Repa
ng on
yment:
the ou
tstandi
ng bal
ance.
Marku
Comp
p Rat
etitive.
es:
Availa
ble at
Servic all Ask
ing: ari Ba
nk Bra
nches
Balan
ce Tra
Av
nsfer
ailable.
Facilit
y:
Eligibility to Apply:

Age: Bet
wee
n 21
to 6
5 Ye
ars.
Income: Mini
 mu
m gr
oss
mon
thly i
nco
me
Rs.
25,0
00/-
only.
Employ a) S
ment: alari
ed:
Mini
mu
m le
ngth
of c
onfir
med
servi
ce w
ith p
rese
nt e
mpl
oyer
is si
xm
onth
 s wit
hat
otal l
engt
h of
one
year
servi
ce.
b) S
elf E
mpl
oye
d: M
inim
um
1 ye
ar in
busi
ness.
(Ag
ainst
secu
rity).
Charge As p
s/Fees: er c
urre
nt sc
hed
ule
of c
 harg
es.

 Personal Finance

“One of the quickest approval processes around”

One can avail unlimited opportunities through Askari Bank’s Person
al Finance. With unmatched financing features in terms of loan amo
unt, payback period and most affordable monthly installments, Aska
ri Bank’s Personal Finance makes sure that you get the most out of
your loan. No matter what your need is, Askari Bank has more way
s to serve you than ever before.

Product Featuring:

Resid
ent P
Borro akista
wer: ni Nat
ionals.

Term
Facilit
Finan
y:
ce
Maxi
mum
Finan upto
cing L Rs. 5
imits: 00,00
0/. (Cl
ean)
Maxi
mum
upto
 Rs. 1
Millio
n. (Se
cure
d)
Maxi
mum
Tenor: upto
5 Yea
rs
Mont
Repay hly In
ment: stallm
ents
Marku
Comp
p Rat
etitive
es:
Availa
ble at
all As
Servic
kari B
ing:
ank b
ranch
es
Balan
ce Tra
Availa
nsfer
ble
Facilit
y:

Eligibility to Apply:

A Between 21 t
g o 65 years.
e
:

I Minimum gro
n ss monthly in
c come of Rs. 1
o 0,000/- only.
m
e
:
F Maximum upt
i o Rs. 500,000
n /. (Clean)
a
n
c
i
n
g

L
i
m
i
t
s
:
 ASKARI MORTGAGE FINANCE

Product specification:

Ever since the inception of life, shelter has been rated among t
he primary needs of mankind, owning a home for oneself still r
emains an exclusive dream for many. Askari Bank has made th
e realization of your dream to have a house of your very own p
ossible. Whether you plan to build a house, tailor made to your
requirements or buy a constructed house, Askari mortgage fin
ance enables you to pursue your goal without any problems. M
ortgage is a premium home financing product for customers a
ged between 23 – 65 years belonging to the upper, upper middl
e and middle income groups, residing in the urban areas of Pa
kistan.

 Business Finance

You always wanted to put in that extra money into your business, w
hich makes it grow... and grow. Now you can stop worrying about y
our daily cash requirements, and start enjoying our unique Askari B
usiness Finance facility.

Product Featuring:

B Resident
or Pakistani
ro Nationals.
w
er:
Fa Running F
cil inance/Ter
ity: m Finance.

Fi Maximum
na upto Rs.1.
nc 0 Million
in Maximum
g upto Rs.5
Li 0.0 Million
mi
ts:
Pr Residentia
im l & Comm
ar ercial / Bui
y lt up Prop
Se erly & Lan
cu d.
rit
y:
M Running F
od inance: O
e ne year lin
of e of credit
Fi (renewabl
na e).
nc
in
g:
R Running F
 ep inance: M
ay onthly deb
m t servicing
en on the out
t: standing b
alance.
M Competitiv
ar e.
ku
p
R
at
es:
Se Available
rvi at all Aska
ci ri Bank Br
ng: anches.
B Available
al
an
ce
Tr
an
sf
er
Fa
cil
ity:

Eligibility to Apply:

Age: 21 to
65 Y
 ears.
Borrow Resi
ers: dent
Paki
stani
Nati
onal
s.
Busine Maxi
ss Req mum
uireme upto
nts: Rs.
500,
000/.
(Cle
an)
Emplo Mini
yment: mum
one
yea
r's b
usin
ess
or pr
ofes
sion
al ex
perie
nce i
n the
pres
ent b
 usin
ess
Charge As p
/Fees: er cu
rrent
Sche
dule
of ch
arge
s

2) Price

“Market value, or agreed exchange value, that will purchase a defini

te quantity, weight, or other measure of a good or service.”

Products prices of ACBL are determined by:

1) SBP

2) Head Office, Rawalpindi

The markup or price paid for services mainly includes:

 Long term loans

 Short term loans

 Letter of credit

 Guarantees

 Bill discounting

 Remittances
  Lockers

 Bank drafts

 Appraisal fee

 Bank commission

3) Promotion

Promotion is one of the four elements of marketing mix (product, pri

ce, promotion, distribution). “It is the communication link between s
ellers and buyers for the purpose of influencing, informing, or persu

ading a potential buyer's purchasing decision. ”

The following are two types of Promotion:

 Above the line promotion: Promotion in the media (e.g. TV, radio, ne
wspapers, Internet, Mobile Phones, and, historically, illustrated songs) i
n which the advertiser pays an advertising agency to place the ad

 Below the line promotion: All other promotion. Much of this is intende
d to be subtle enough for the consumer to be unaware that promotion i
s taking place. E.g. sponsorship, product placement, endorsements, sa
les promotion, merchandising, direct mail, personal selling, public relati
ons, trade shows

Askari bank does its promotion through following ways:

 Brochures

 Banners

 Billboards
  Ad in the newspaper

 Direct marketing

 Public relations

4) Place
Last marketing tool is placement, which includes the various activiti
es a bank undertakes to make product and services easily accessib
le or available to customers. ACBL has opened almost all its branch
es at Commercial areas or near to commercial areas so that the cu
stomers or clients face no problem in reaching to the bank.

Competitive strategy
As Askari more on to device a strategic plan for coming years for As
kari bank, it need to constantly remind itself that the margins are sh
rinking. The number of financial players in the market has gone up
several times since the early 90’s. Not only the number of players h
as increased many folds but they are also much better equipped wit
h much stronger capital bases, reach and competent managements.

Analysis

I m conducting the competitive analysis between ACBL and Bank Al

falah with respect to the working of their HR department, Before co
nducting an analysis it is feasible to briefly overview the competitor’
s findings.

Introduction: (Askari Bank Ltd)

 Askari Bank Limited (the Bank) was incorporated
in Pakistan on October 9, 1991 as a public limited company and is li
sted on the Karachi, Lahore and Islamabad Stock Exchanges.

Human Resource department:

ACBL is an organization that provides opportunities for its staff to h

ave a challenging and rewarding long-term career. To this end the
Human Resource Group (HRG) encourages and motivates its empl
oyees to excel in the responsibility that they have in the organizatio
n .It believes that creativity and innovation comes from talent, knowl
edge and experience and it is ACBL’s endeavor to provide and mai
ntain an environment which not only nourishes these strengths but
also provides opportunities for the staff to have a career which has
multidimensional growth opportunities.

In doing so, HRG has been restructuring and redesigning the overal
l structure of the organization, which includes rationalization, cutting
down the decision layers, improvement in staff training and hiring pr
ofessionals and MBAs at entry-level management.

The overall direction of HRG has been towards nurturing the streng
ths of the human capital to its maximum with a defining principal to
help create a progressive environment and sustain a thorough com
mitment of our staff towards focused customer service.

Recruitment & Selection

In ACBL recruitment is done by following three ways:

 Internal job announcement

 Hiring through talent pool

 Job advertisement

1: Internal Job Announcement:

Internal job announcement i

s divided into four sections. The whole procedure of recruitment pa
ssed through these sections, from announcement to recruitment. T
hese sections are:

 Segment

 HRD (human resource division)

 Staff

 Candidate’s Supervisor

Steps of recruitment process:

Following are the steps of whole recr

uitment process through announcement:

Step 1:

Request is raised by the segment on a “Requisition Form”

with complete information.

Step2:

Budgetary and position related requirements are checked

by HRD, recruitment and an internal job announcement is broadcas
ted through e-mail.
Step3:

Staff reads the internal job announcement, fills in applicatio

n and submits it to HR before the mentioned cut-off date.

Step4:

Recruitment reviews and shortlist the applications, the entri

es are forwarded to the segment for selection by HRD.

Step5:

HR conducted initial interviews of interested employees, fill

ed IAF and sent it to the relevant segment.

Step6:

Segment receives the application from recruitment and call

s the candidates for interview.

Step7:

“Interview assessment form”/ Comments of segment are fill

ed for the candidate with details if he/she is selected or rejected.

IF SELECTED:

If candidate is selected then:

Step8:

Recruitment sends an e-mail request containing relevant inf

ormation to HR Operations for the issuance of internal transfer lette
r to the candidate. In reply to the e-mail HR Operations issues a tra
nsfer order to the candidate.
Step9:

HR files interview Assessment form into the employee’s pers

onal file. Master Database is updated.

Step10:

Candidate’s Supervisor receives the mail from HR with app

ropriate release date for the candidate.

IF REJECTED:

After step 7 if candidate is rejected then:

Step8:

Staff and his Supervisor are informed.

2: Hiring through talent pool:

Hiring through talent pool is divi

ded into two sections. The whole procedure of recruitment passed t
hrough these sections. These sections are:

 Segment

 HRD (human resource division)

Steps of recruitment process:

Following are the steps of whole recr

uitment process through talent pool:
Step1:

If an appropriate resource is not selected from within the b

ank, HR revisits the ERF (Employee’s Requisition Form) and searc
hes for resumes and searches for resumes from the HR Talent Pool
(On-Line)

Step2:

Resumes are selected / screened by HR recruitment as per

the given criteria. These are scrutinized, short listed and forwarded
to the segment.

Step3:

Segment receives the short listed resumes and contacts th

e candidate for interview.

Step4:

The Segment completes the IAF with detailed comments (R

ecommended package, positive traits etc).

Clearly indicating if the candidate is RECOMMENDED or DECLINE

D sent to HR with all delegated approvals.

Step5:

Interview Assessment Form is received by HR.

 IF DECLINED:

If resume is rejected then:

Step6:

Process is closed.

IF RECOMMENDED:

If resume is recommended then:

Step6:

Candidate is called for a final interview. HR completes the I

AF and discusses the salary package with the candidate.

Step7:

HR prepares the letter of Appointment and calls candidates

for collection.

Note:

 Upcountry / remote areas: Telephonic interviews will be conducted by

manager / Assistant manager recruitment.

 CV’S are uploaded into website (www.askaribank.com or HR online) b

 y segments or interested candidates.

 CV’S received through walk-in, post & or e-mail will also be uploaded o
n the Talent Pool after through screening by HR.

 HR will utilize the database to get resource information as and when re

quired.

3: Job advertisement:

Hiring through job advertisement is divid

ed into two sections. The whole procedure of recruitment passed th
rough these sections. These sections are:

 HRD (human resource division)

 Marketing

Steps of recruitment process:

Following are the steps of whole recr

uitment process through job advertisement:

Step 1:

If an appropriate resource is not selected from within the b

ank Internal Broadcast & HR Talent Pool, HR will then proceed with
the advertisement channel.
Step 2:

Recruitment will draft a write up for the vacant position and

send it to Marketing along with a target date for publishing.

Step 3:

Marketing will coordinate with the agency and develop a s

ample proof of the desired advertisement.

Step 4:

Marketing will receive the sample proof of the advertiseme

nt from the agency, proof read it and will forward it to HR for approv
al.

Step 5:

HR receives the sample proof from Marketing, coordinates

with the segment. If OK HR gets final approved sample proof to Ma
rketing.

Step 6:

Marketing receives the approved sample proof from HR an

d coordinate with the agency to place the advertisement in the local
newspaper.
 Introduction: (Bank Alfalah)

Bank Alfalah was established in July 1997. Its H.O i

s in Karachi and bank has 49 branches allover Pakistan.

Services:

Bank is offering different types of services for all its valu

ed customers. These services are: ATM, online banking, home loan,
car financing etc.

Human Resource department:

Bank has a HR dept who perf

orm different sort of functions. The dept advertises in newspaper for
the jobs then recruitment and selection process occurs. Training an
d development is major task of HR dept.

In HR dept there is one Executive incharge, one assistant executive

incharge and personal managers.

Selection & recruitment:

 Bank advertises in newspaper & can
didates apply for the jobs, after test, interview and other formalities t
he selected candidates are given 6 months training. Every year the
bank offers 30 vacancies for the post of MTO’S.

The MTO program is a highly competitive & sought after induction s

cheme, in which short-listed applicants appear in a written test follo
wed by a panel interview. Successful candidates then receive comp
rehensive training in essential areas of branch banking at the bank’
s state of the art training facility at Karachi. They are subsequently
posted at the banks prior to their posting at various branch location
s in Pakistan. Preferred educational background for entry into the M
TO scheme includes an MBA degree, MA economics or M.com fro
m reputable Pakistani or foreign institution with GPA of 3 plus or eq
uivalent. Strong personal character, as well as communication and i
nterpersonal skills are essential pre requisites to succeed as MTO.

Training & development:

Its management believes in developi

ng the potential of the bank’s employees to the fullest extent. T&D c
enter of the bank is housed in custom built, state of the art facility o

n the 4th floor of the H.O building at Karachi. The center is responsi
ble for providing multi-level high quality training programs to all staff
members in the following areas:

 Consumer banking operation

 Credit marketing & credit proposal

 Credit administration/documentation
 Trade finance operation

 Marketing & selling skills

 Customer service skills

 Performance appraisal skills

 Time management

 Personal effectiveness
It is obligatory for each staff member of the bank to attend at least o
ne training program. Wherever the training department is unable to
provide focused training for certain groups of staff, reputable extern
al training providers are invited to fill the gap.

The candidates are given 6 month training in which theoretical lectu

res are given along with different case studies, situations & present
ations techniques. Groups are made to enhance coordination and t
eam building candidates with different skills and abilities are apprec
iated for their creativity. During the job formal & informal meetings a
re conducted where all employees are free to speak and they can g
ive different ideas and plans. Employees are encouraged for contin
uous learning and bank even send its employees for special trainin
g courses to abroad.

Main training pressure paid of Bank Alfalah is also same to that of A

CBL, i.e.

 Identification that either the training of current employees is necessary

or not, depends on the result of Annual Performance Report.

Reward system:
 Each manager submit the report of his subordin
ates to his boss in which they evaluate his employees from different
dimensions and if audit report of any branch show negative impact t
han all types of increments are stopped of all employees of that bra
nch.

Analysis
Analyzing the training and development practice of ACBL and comp
aring it with T & D of Bank Alfalah it is concluded that currently ACB
L is effectively meeting its targets, but to encounter with future dem
ands, ACBL needs to overcome some short comings in order to mai
ntain and gain competitive edge.

Business process analysis

In FY09, for the first nine months banks were reluctant to lend to corporat
e and individuals owing to skyrocketing bad loans amid lack of demand fr
om industries who were avoiding high financial charges. But, with some si
gn of economic recovery, lately, with inflation tapering off amid marginal
growth in large-scale manufacturing sector, the demand for corporate cre
dit gradually rose. However, attractive rates offered by government bonds
still remain lucrative enough - wooing banks to put depositor’s money in l
ow risk papers instead of meeting the demand of private sector (Industry
review, Business Recorder, 2010).
Financial performance:

Askari Bank was able to post an after-tax net income of Rs 1.18bn in FY09,
which is 187% increase from the previous year of FY08. The bank has bee
n able to accomplish this through various ways. Its year-on-year mark-up i
nterest income increased by 23%, mounting to Rs 22bn in FY09. Following
this, we observed that there was a huge increase in particulars of provisio
n for impairment in value of investments by 1500%, as the amounted aug
mented to Rs 76,784 million in FY09 compared to Rs 5 million in FY08. Thi
s was due to the charges for the year that were charged on the investmen
ts made by the bank. Second was the increase in the gain on sale of invest
ments, which increased by 291% amounting to Rs 143 million in which tw
o main particulars have to be pointed out.

GAIN ON SALE OF INVESTMENTS - NET (000s) 2009 2008

Market Treasury Bills 62,177 266

Shares - Listed 47,015 6,6

82

Such high increase in sale of investments, have yielded in high profits for t
he bank for FY09.

The scenario of the NPLs does not seem very favorable for the bank. The
NPLs have consistently seen an increase, indicating that the bank is either
not very efficient at collecting the outstanding loans or has a very liberal l
oan distribution policy. Their pace of growth has outdone the rate of incre
ase in advances. The bank may face considerable credit risk from its loan
defaulters. In FY06, bank s advances witnessed marginal increases in cons
umer finances, especially Ijara financing, corporate financing while they o
bserved a slight decline in the shares of SME and agriculture.
The assets of the bank witnessed some shift in their composition away fro
m loans towards investments. This has also been the trend industry wide
to meet the MCR requirements as directed by the State Bank of Pakistan.
Though these investments offer lower returns than the loans, they are mo
re preferable in this situation for the bank as it is struggling to get its loan..

In FY09, the bank maintained its marginal increase of lending to financial i

nstitutions as it only increased by 3%, similarly the advances too are seen
as controlled lending as these also increased by a mere 5%. The reasons t
end to be the same as it were in the previous year. Low advances because
of high NPLs raising from consumer banking and also from certain sectors
of the economy especially the textile sector. However, on the flip side, we
see a dramatic increase of 88% of investments, which amounted to Rs 13
5bn. The investments category is further broken down to see where inves
tments are done.

The liquidity of the bank has maintained a consistent upward trend, with i
ts yield on earning assets always above the cost of funding them. It s impe
rative to note that cost and yield on funding earning assets run parallel w
hich means that banks are not compromising on their spreads in the years
of performance regardless of dynamic economic conditions. This liquidity
consistency in the years until FY06 may be attributed to the excess liquidit
y that prevailed in the industry due to high reserve growth of the banking
sector.

The State Bank of Pakistan intervened in this situation by contracting the

monetary policy. Also, post-emergency declaration when the rupee fell, th
e SBP intervened twice to ease the liquidity conditions in the market. The
SBP has prudently managed the liquidity while the bank also has certain a
rrangements to maintain its liquidity. It has most of its investments in trea
sury bills. The liquidity position may be predicted to remain similar to the
above in the coming years. However, at the same time Askari needs to saf
eguard its liquidity against the increasing NPLs.

Askari Bank was able to maintain its liquidity condition with keeping its ra
tios in line with previous year of FY08. The earning assets to assets remai
ned at 81% as much of the percentage was due to the fact of a high increa
se of investments in the government securities. Subsequently, advances t
o deposits remain constant at 71%, as the bank did not increase its advan
ces to consumers due to high NPLs to advances in the previous year.

The bank s spread was sustained at 4% as it only decreased marginally by

1%. This was because the industry average remains to be at 5-6% for FY09.
This again helps us to understand the positivity of the bank in such recess
ionary condition that they are not compromising on their spread and mai
ntaining at 4%.

The solvency of the company has been successfully maintained over the y
ears. As evident, the share of equity is increasing. This may be regarded a
s a move against the rise in deposit rates and a decrease in the banking sp
read of the banking sector. This healthy trend in solvency may be predicte
d to continue in the future. The greater than earning assets deposits are t
he result of excess reserve money growth while the increase in the non-p
erforming advances has undermined the advances performance. With the
gradual shift to investments, we may expect the adverse impact of the NP
Ls to reduce, but this may take a long time.

The trend of maintaining healthy solvency was carried out even in FY09, a
s the equity to assets was maintained at 6.1%, along with this the earning
assets to deposits remained 100%. This shows the asset based is well utili
zed by the bank and with the new trend to shift towards low risk investme
nt of government securities. As observed more of the deposits are concer
ned with long-term deposits.

Asset quality has been improving since 2008. We saw a decrease in provis
ioning to NPLs in FY09, as it decreased by 7% from FY08. With the new re
gulation by the SBP of keeping Forced Sale Value to 40%, the upcoming pr
ovisioning would be lower than the previous ones. The asset quality was a
lso maintained as low advances were given to consumer as well as other c
orporate sectors; therefore the NPLs to advances also stood still at 9% in F
Y09, whereas the NPLs were still the same for the period but not increasin
g as can be seen through previous years.

The market value of the bank has shown an upward trend throughout. Th
e bank has been a consistent distributor of the dividends. The increased p
rofitability of the banking sector (an increase of around 100%) has made t
his sector one of the most lucrative ones to invest. This increasing market
ability profile is reflective of Askari s high yields on earning assets and fav
orable liquidity and solvency positions. We may expect such trend to con
tinue in the future. In FY06, the high share-price of the bank is accountabl
e for this trend. Market value to book vale are not reliable measures of pe
rformance anymore as the market prices of shares are distorted therefore
it does not depict a true picture.

In FY09, the market value rose after the nine months ending showing a lat
e year push towards the recovery of the economy. As the investors gained
confidence in the company, the results were shown as the EPS surged fro
m Rs 0.95 to Rs 2.18 in FY09. However the dividend payout remains very l
ow, as low as 0.07%.

The bank has maintained its reputation as one of the consistent payers of
dividends. This year the bank did not give any cash dividends rather it gav
e stock dividend, this would help bank in two ways, first, by maintaining li
quidity and second by making up for the MCR requirements.

The bank was able to maintain a healthy 11.5% contrast to mini

mum requirement of 10%.

The required minimum capital requirement can be achieved by the bank,

either by fresh capital injection or retention of profits. The stock dividend
declared will be counted towards the required paid up capital of the bank
pending completion of the formalities for issuance of bonus shares. The b
ank intends to meet this requirement by way of bonus issue subsequent t
o balance sheet date, in this year.

Future outlook

The banking industry can be seen positively as some private credit i

ncrease is observed in the year-end of 2009 and started picking up.
With key policy rate at 12.5% the SBP maintains to keep a balance
and wants to increase the circulation of the money in the economy
and not keeping it tied up.

On the other hand, much of the investments still lie on the governm
ent securities as the government borrowing.
 With uncertainty still hovering in the economy and the inflation till F
eb 2010 still remains high at 13.8%, the key policy rate is designed
neither to be tight nor to be sluggish. Therefore much can be expec
ted in the upcoming year, as the pace for economy recovery along
with increase private credit can uplift the economic cycle.

Concerns of SLR and CRR are not in consideration for most banks
as healthy safety is kept to ensure no bankruptcy is involved.

The only matter of concern would remain the outcome of the new m
onetary policy which is said to be designed in a way to boost the ec
onomy.

Askari Bank in particular remains strong in terms of their balance sh

eet as their asset base is strong and their liabilities are more of long
term. Along with this the current year performance is considered ext
raordinary. Therefore positive expectation can be anticipated for the
bank.

S.W.O.T. Analysis
SWOT analysis gives a very good analysis of what the firm is, what
it wants and what can it do to get better than it is at the same time i
ndicating the factors that could lead to a havoc.

SWOT is an abbreviation for;

 Strength
 Weaknesses

 Opportunities

 Threats

Strengths

Askari Bank has set its firm foot in Pakistan and has gained its stre
ngths over the period of time an effort of enlisting its strengths can
be done as follow;

 The past decade has been the biggest strength because that was the ti
me when there was not much of the competition and it gave time for th
e company to adjust and now it has grown better than the rest

 It has a good reward policy of giving bonuses and incentives for its cus
tomers.

 Askari Bank has a flawless Customer services

 The MIS they use in the company is always updated well ahead of time
giving the bank an upper edge

 Honesty, Equality and fairness prevail throughout the organization and

that is the utmost requirement.

 The card division has strong network facilities nationwide

 ACBL has got a well-developed on-line system in most of its branches.

Remittance Department is working very efficiently in transferring the fu
nds of people due to this system.

 The bank has also started ATM facility in most of its branches. 24-ho
 ur banking is new trend in Pakistan and ACBL has also taken apart in t
his trend.

 One distinctive feature of the bank is that it is the only bank working for
the welfare of army officers, which was established by Army Welfare Tr
ust.

 The productivity of the bank is very good. Bank is providing a high qu

ality service to its customers.

 ACBL have strength that most of the imports & exports which are don
e are handled by ACBL.

Weaknesses

 A certain education level should be set for a particular task, it adds up t

o the hard-work, the company has some undergraduates as well which
can effect the company

 Its good to have a friendly working environment but there should be a

code of conduct.

 Because of the increasing workload the employees a being over burde

ned

 The inventory management is not up to the mark

 Promotions and transfer from departments is a political issue.

 Bank is not introducing new products and new saying schemes. Bank
should boost the product development and increase the range of facilit

ies offered for customers..

 Opportunities

 Better and convenient services to employees and business class.

 Expansion of their branch network can be very helpful.
 Engage qualified professionals for providing specialized banking produ
cts and services to their customers, reorganization of existing systems
as well as Infrastructure with de-centralized work processes. The hum
an resource factor plays a critical role maintaining the efficiency and pr
ofitability level of the bank in future.
 Institutionalization of HRM (best person should be posted for best assi
gnment), depoliticizing the atmosphere.
 Bank can extend its network in other countries.
 It can enhance its profitability by making use of new technology.
 The plastic money business still has a lot of potential to grow so it give
s the company an opportunity to introduce new products and services.
 They should keep on looking for opportunities in the market because it’
s a first come first served situation.

Threats

 Very uncertain economic conditions.

 Actions taken by competitors.
 Political instability.
 Employees turnover rate is too high
 Politics involved in a working atmosphere has never done well for the
 company it has always gone the other way round.

 ACBL has many competitors, which are continuously increasing its pr

oducts and marketing aggressively. It may cause its customers to shif
t to competitors.

 Some other banks have competent taskforce, which is also a threat

for ACBL, because human resource is the most valuable resource.

 Pakistan India relations often create a war danger. This chance of wa

r may cause army officer and their families to increase the frequency
of withdrawals, which would decrease deposits.

LEARNING
One of the most important aims of student’s life is to express
himself correctly and adequately, with this belief in mind, I decided t
o go to Askari bank to complete my internship program.

Determined, confident and persistent in the pursuit of knowle

dge and learning, I was on my to Askari bank DHA II branch in the

morning of 21st June 2010.

 Duties
I performed different duties that were assigned to me through
out the internship. Duties that I performed during my 6 weeks of int
ernship are related to different departments. I performed my duties i
n departments like:

 Accounts department
 Account opening

 Credits

 Remittances

 Foreign & international trade

I also perform my duty of operating photocopy machine and fax ma
chine.

 Accomplishments
I worked in different departments, but the knowledge I gaine
d from accounts department is very valuable. I really liked working i
n that department. Working in this department was quiet tough as c
ompared to other departments but the knowledge I gained from that
department was very helpful to me.

The internship program is very beneficial. It provides me good oppo

rtunity to learn new things. Moreover it teaches me to know that wor
ld of study and world of work are completely different. Unlike studyi
ng, working life is not smooth. Often, I faced many problems during
working. I found that there are two valued things that help me to sol
ve problems are “braveness and patience”. Brave to face and be pa
tient to solve them.

 New Knowledge Acquired

All the knowledge I acquired from my internship is new to m
e, because I had never done internship before. Directly communicat
ing with customers and fulfilling their basic requirements was totally
a new experience for me. I learned how to communicate effectively
and efficiently with customers. Internship also improves my commu
nication skills with different persons in well manner.

During working at Askari, I had a chance to use every of English ski

ll.

First is writing. I was assigned to write many kinds of letter such a

s official letter of invitation, letter of sympathy and letter of informing.
This not only made me improve my writing skill, but I also learned h
ow to write proposals in the real situation.

Second is reading. All the documents are in English so it is necess

ary that reading and understanding skills should be good.
Reading English documents everyday helped me have a better rea
ding skill. I can read faster and can find out main point easier.

Third is listening and speaking. Since I worked with foreign exch

ange & international trade manager for 1 week, she speaks with me
in English most of the times. Throughout the week in foreign excha
nge & international trade department, I had to communicate with su
pervisor and colleagues in English. Of course, my listening skill is i
mproved and had more confidence in speaking English.

 Problems Encountered
Internship was a good experience for me, but there are s
ome problems which I faced in the begging of my internship.

During the internship program, I faced some problems in my work.

The first problem is writing official letters. I had to write many kinds
of official letter or proposals in English which I have never written b
efore; for example, the official letter of invitation, the official letter of
informing and the official letter of sympathy. These letters had been
sent to different companies for their credit requirements, therefore, i
t needed exquisiteness. I tried my best to cope with this problem by
trying to study the previous letter and consulted with my mentor, Mr.
Bilal Zahid and Mr. Osman Yusuf, Credit manager. However, this ki
nd of problem taught me to learn new vocabularies and idioms use
d in business world. For me it is very beneficial.

Besides writing official letter, I had some difficulties in translating do

cuments. I was assigned to translate the documents both from Engl
ish into Urdu and Urdu into English. This was my first time to transla
te official documents. For translating English into Urdu, my heavy-h
earted thing was that there are several technical terms that I have n
ever seen before. Moreover any dictionaries couldn’t help me. The
best way to solve this problem was “don’t hold on form” but had to i
nterpret and translate them from the context. For translating Urdu in
to English, I was assigned from Credit officer to translate advertise
ment and credit manuals. I haven’t been accustomed to using credit
language, so it was quite difficult for me. I coped with this by learnin
g advertising language and idiom used in Internet, magazine and n
ewspaper in order to be guideline in using credit language appropri
ately and accurately.

 How Experience Impacts your Career

Upon the start of my internship at Askari bank I did n
ot have a lot of experience in public relations. In some capacity I kn
ew that I would be working towards improving the image of custom
ers and my supervisors, which in this office ranges from high tech st
 artups, to publicly traded companies, to profit and non-profit organiz
ations. However, I was unsure of what exactly an intern in the servi
ces industry would be responsible for on a daily basis.

After six weeks of my internship i can honestly say that I have learn
ed a great deal about the industry itself and I now have a more con
crete understanding of what the job description is for one who work
s in public relations.

Among the many things that I have learned almost in the last two m
onths, the most important for me are the general knowledge that I n
ow have about the field, as well as the tools that I have gained that
will enable me to perform better when working in the industry.

The internship program at Askari bank has provided me with a stron

g foundation for what might likely be the start of a career in public r
elations. I now have confidence in myself that I can work successful
ly in a services firm and be a strong asset to a hardworking team. H
owever, just as a house is not complete after the foundation is laid,
there is still much more for me to learn and experience.

I look forward to continuing this path of learning and exploration an

d will not forget what I learned during my six weeks of internship.

Identification of plausible problem(s)

There are problems being faced here at Askari Bank some of which
can easily be highlighted;

 Bank is facing a high tax rate, which affects its profitability and attractiv
eness for new entrants.
 Middle class and low income group have limited access to bank credit.
 Weak internal controls, non-merit based recruitments
 High administrative costs affect the performance of bank.
 Continuous maintenance is compulsory
 Favoritisms while promoting employees.
 Education level of the employees

Recommendations

Besides taking care of the above mentioned problems there are so

me recommendations which can be advised to the bank, which can
be helpful for the Bank:

1. Employees should be given a course of training from time to tim

e or they can also use the on the Job training method. Training
can be done in the following areas
 Better training of employees in the communication skills area
 Undergrads have to be trained accordingly
 Continuous training about the latest updates
2. New advertising campaigns should be launched especially in th
e electronic advertisement areas
3. There is a need for expansion of the working area especially in t
he finance department as the work load is increasing and new r
ecruitments are compulsory
4. Politics should be discouraged in such an environment
 5. The employees should be given more incentives and rewards fo
r their good performances
6. There should always be innovation in any business to flourish a
nd there is a lot more to explore in the banking sector and its al
ways first come first served.

Conclusion

 Banking is one of the most sensitive businesses all over the world as b
anks play very vital role in the economy of a country and Pakistan is no
exemption.

 Askari Bank has been growing both in size and profits for past few year
s and is one of the most reputed groups. It has gained a good repute in
the banking sector of Pakistan.

 Employees are the most important assets for any organization as the s
uccess of any organization lye in their hands, therefore there is a need
the group to focus on the needs of their employees. The bank has to o
vercome its weaknesses and should avail the opportunities available in
the industry, because competition is very intense particularly in the ban
king sector these days the organization which offers far better services
to its customers than its rivals will succeed ultimately.
 I have made an honest attempt to generate an original piece of writing
that could serve as a vivid proof of the fact that students at Comsats In
stitute of Information Technology (CIIT) are certainly no mugs at what t
hey do. I truly hope that this report also certifies the fact that all of my
worthy teachers performed their duties of academic guidance and mor
al mentoring with utmost efficiency and effectiveness.

Bibliography

 www.askaribank.com.pk

 www.wikipedia.com

 www.google.com

 www.answers.com

 www.sbp.org.pk

 Askari bank general banking mannual