Internship Report On Askari Bank

INTERNSHIP REPORT
Internship report on Askari Bank Ltd

(Islamic Banking Branch)
Submittd by:Ailiya Rizvi

BBA(Hons)
3219
Session: 2007-2011
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Lahore College For Women University
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Department Of Management Sciences

Lahore College for Women University Lahore
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Submittd by:Ailiya Rizvi

BBA-8
3219
Year of submission: 2011
Supervisor:Miss Tallat Shahid
Department Of Management Sciences

Lahore College for Women University Lahore
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Submitted by Supervisor Registrar
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Ailiya Rizvi Miss Tallat Shahid Shaista vine
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DECLARATION
An Internship report submitted to the department of Management

sciences, Lahore College for Women University, Lahore in partial
fulfillment of the requirement for the degree of BBA / MBA.
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Dedication
I dedicate my report to my parents who really help me in
the completion of such a lengthy and complicated project.
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Preface
The main purpose of the internship is to fulfill the academic requirements of

my study. It encourages learning with emphasis on assigned projects.
Besides this, the other purpose is to give a comprehensive review of ACBL.
The most important point in an Internship Program is that the student should
spend their time in a true manner and with the spirit to learn practical
orientation of theoretical study framework. This report is about my
internship that I have undergone at Askari Commercial Bank Limited DHA
Branch from 7h June 2010 to 21 July 2010 .During my internship I am able
to learn practical aspect of business, and get good working experience.
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Table of contents
Chapter Topic Pg no
1 INTRODUCTION
History & Background
Business Philosophy 11
Vision Statement/ Mission statement 14
Market Standing 17
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2 MANAGEMENT SYSTEM
Organizational Chart
Corporate Profile 21
Management Hierarchy 25
Policy Formation process
Managerial Policies 29
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3 MARKETING MIX
Product
Price
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Place 45
Promotion 56
Publicity 63
4 FIANANCIAL STATEMENT ANALYSIS
Trend/ horizontal analysis
Vertical Analysis 67
Financial Ratio Analysis 73
86
5 SWOT ANALYSIS
Strength
Weakness 97
Opportunity 101
Threat 102
103
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6 TRAINING PROGRAMME
Divisional or Departmental detail
Activities of intern
105
Projects assignments completed 156
157
7 PROBLEMS AND
RECOMMENDATIONS
CONCLUSION
159
List of annexure
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Executive summary
ACBL was incorporated in Pakistan on October 9, 1991. It started

its operations during April 1, 1992 and in the 15 years since; its
growth and success patterns have far outgrown industry standards.
It is offering one of the widest arrays of products to their customers
through their extensive branch network all over the country. Each
year ACBL recruits and hires a number of undergraduate and
graduate interns to work in various positions throughout the
organization. Internships have been a part and parcel of ACBL's
history, offering a streamlined and comprehensive Internship
Programs. In this report I have tried to mention all the aspects of
ACBL are banking operations.
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Chapter: 1
Introduction
 History & Background
 Business Philosophy
 Vision Statement/ Mission statement
 Market Standing
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Evolution of Banking:
“Bank is a pipeline through which currency moves into and out of circulation.”
Bank accepts deposits and repays cash to its customers on their demand. The Bank
borrows money at a lesser rate of interest and lends it to the borrowers at a higher rate. It
is thus a profit-lending concern. Word Bank is said to be derived from the words Bancus
or Banque that means a bench. Other authorities hold the opinion that the word Bank is
derived from the German word “Back” which means joint stock fund. Later on, when the
Germans occupied major part of Italy, the word “Back” was Italianized into “Bank”
(Aslam, 1999)
It is therefore, not possible to decide as to which of the opinions is correct, for no record
is available to ascertain the validity of any of the opinion”.
Early Growth:
The history of banking is traced to as early as 2000 BC. The priests in Greece used to
keep money and valuables of the people in temples. These priests thus acted as financial
agents. The origin of banking is also traced to early goldsmiths. They used to keep strong
safes for storing the money and valuables of the people. The persons who had surplus
money found it safe and convenient to deposit their valuables with them.
Banking in Pakistan:
At the time of partition total numbers of Banks were 38 only. Out of these Banks the
Pakistani Banks were only 2, Indian Banks 29 & Exchange Banks were 7. The total of
deposits of Pakistani Banks was Rs.880 Million. & advances were Rs: 198 Million.
Banking started in Pakistan after the bold and emergent decisions of formulation of SBP
on July 30, 1948. At the time of independence Bank services was badly affected. But
with the passage of time these are improving. The government of Pakistan nationalized
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all Banks in early 1974. Two Banks (Allied Bank Of Pakistan Limited & Muslim
Commercial Bank Of Pakistan Limited) have been denationalized. Since then Banks were
working well. Now slogan of the Banks is to serve their customers in the best possible
manner.
History and Background

Askari Bank was incorporated on October 09, 1991 as a Public Limited Company and
is listed on the Karachi, Lahore and Islamabad Stock Exchange. It started its operations
from April 01, 1992. The bank was declared as “Best Bank in Pakistan” in 2001 in Global
Finance. The bank’s registered office/Head Office is situated in AWT Plaza, The Mall,
P.O.Box No. 1084, Rawalpindi, (Pakistan).
Askari Bank Limited has expanded into a nation wide presence of over a 100 branches,
comprising commercial and Islamic banking branches, connected online and supported
by a network of Automated Teller Machines (ATMs). It also enjoys an offshore banking
unit in Bahrain. Over the years, Askari Bank Limited has proven its strength as a leading
banking sector entity with ever increasing commitment to its clients, through a strategic
investment in electronic technology. It has A1+, the highest possible credit rating, for
short-term obligation, and AA+ for long-term rating. Beside day-by-day banking
solutions, Askari Bank Limited has a wide range of Corporate, Consumer, and Islamic
Banking products.
Askari Commercial Bank Limited was the first bank in Pakistan to offer Internet banking
Services and B2B e-commerce (Business to Business electronic Commerce) solutions for
merchants looking to purchase on credit. They believe that balanced growth is the key to
survive in the today’s global banking environment.
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Awards and Achievements:

Askari Bank continues its success in competition. They have received the Corporate
Excellence Award for the financial sector from the Management Association of Pakistan
(MAP) for the years 2002, 2003 and 2004. They have been given “The Best Bank in
Pakistan” award by Global Finance magazine twice i.e. for the years 2001 and 2002.
They have been given the “Best Consumer Internet Bank” award by Global Finance
magazine for the years 2002 and 2003. They won the Euro money and Asia money
awards as early as 1994, 1996 and 1997. They won the prestigious “Best Presented
Annual Accounts” award from the Institute of Chartered Accountants in Pakistan (ICAP),
for the Services Sector, for the years 2000, 2001and 2002. They have also received
ranking prizes during the last six years from the South Asian Federation of Accountants
(SAFA) for “The Best Presented Annual Accounts” for the financial sector, in the
SAARC region. In 2007 Askari bank won “The Best Consumer Banking Award 2006” for
the third consecutive year from the consumer Association of Pakistan. In 2008, Askari
Bank has been given “The Best Retail Banking Award 2008” by Pakistan Guarantee
Export Corporation Ltd.
Functions of ACBL:
ACBL is a commercial bank, which transacts the business of banking in accordance with
the provisions of BCO, 1962. Section 7 of the Act authorizes banks to engage in the
prescribed form of business. In the light of this section ACBL’s functions can be
categorized as under:
 Agency services.
 General utility services.
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 Underwriting of loans raised by the government
 Providing specialized services to customers
 Accepting deposits
Mission Statement: -
As it is said that an organization’s culture, products, services, employees, their
attitude, philosophy, self-concept, markets and environment throws light on the corporate
mission, so one of the business executives at the bank , based on his personal observation
and judgment, carved the following mission of The Askari Commercial Bank Limited as
The mission statement of the bank is:

“To be the leading private sector bank in Pakistan with an international
presence, delivering quality services through innovative technology and
effective resource management in a modern and progressive
organization culture of meritocracy, maintaining high ethical and
professional standards, while providing enhanced value to all their
stakeholders, and contributing to society”
Core Values:
We understand that our commitment to satisfy customers’ needs must be fulfilled within a
professional and ethical framework. We subscribe to a culture of high ethical standards,
based on the development of right attitudes. We believe in our 'core values' as the
essential and enduring tenets of our organization - the very small set of guiding principles
that have a profound impact on how everyone in the organization thinks and acts. They
have an intrinsic value for us and bear significant importance to all our employees. They
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are the few extremely powerful guiding principles; the soul of the organization - the
values that guide all our actions.
The intrinsic values, which are the corner stones of our corporate behavior, are:
 Commitment
 Integrity
 Fairness
 Team-work
 Service
Vision:
“To be the Bank of first choice”
CORPORATE PHILOSOPHY:
From knowing our customers requirements to understanding employee needs, from
utilizing modern technology to making responsible social contributions, from enhancing
stake-holders value to practising corporate ethics.... We are continuously and consistently
striving to address newer challenges with a single motivation: “the power to inspire
and be inspired”
OBJECTIVES:
 Deliver solutions that meet customer’ financial needs.
 Build and sustain a high performance culture.
 Build trusted relationships with all stakeholders.
 Build and manage the Banks’ portfolio of business to achieve strong and
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Sustainable shareholder return.
 Create and leverage strategic assets and capabilities for competitive advantage.
 To facilitate the bank with modern banking technique
 To accelerate commercial activities and capture large market share.
Code of Business Principles:

Our Code of Business Principles is to:
 Deliver solutions that meet customers’ financial needs
 Build and sustain a high performance culture
 Build trusted relationships with all stakeholders
 Build and manage the Bank’s portfolio of businesses to achieve strong and
sustainable shareholder returns
 Create and leverage strategic assets and capabilities for competitive advantage
Corporate Objectives:
 To achieve sustained growth and profitability in all areas of business.
 To build and sustain a high performance culture, with a continuous improvement
focus.
 To develop a customer–service oriented culture with special emphasis on
customer care and convenience.
 To build an enabling environment, where employees are motivated to contribute
to their full potential.
 To effectively manage and mitigate all kinds of risks inherent in the banking
business.
 To optimize use of technology to ensure cost–effective operations, strengthening
of controls, efficient management information system, enhanced delivery
capability, and high service standards.
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 To manage the Bank’s portfolio of businesses to achieve strong and sustainable
shareholder returns and to continuously build shareholder value.
 To deliver timely solutions that best meets the customers’ financial needs.
 To explore new avenues for growth and profitability.
Strategic Planning:
 To comprehensively plan for the future to ensure sustained growth and
profitability.
 To facilitate alignment of the Vision, Mission, Corporate Objectives with the
business.
 To provide strategic initiatives and solutions for projects, products, policies and
Procedures.
 To provide strategic solutions to strengthen weak areas and to counter threats to
profits.
 To identify strategic initiatives and opportunities for profit.
 To create and leverage strategic assets and capabilities for
competitive advantage.
Code of Ethics and Conduct:

Askari Bank seeks to maintain high standards of service and ethics enabling it to be
perceived as impartial, ethical and independent. In addition to the general guidelines, the
Following are the salient features of The Bank’s code of ethics and conduct.
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 Presence of a corporate culture that seeks to create an environment where all
employees are treated equitably and with respect.
 Employees must carry out their responsibilities in a professional manner at all
times. They must act in a prudent manner and must avoid situations that could
reflect unfavorably on themselves, the Bank or its customers
 Employees must commit to the continued development of the service culture in

which the Bank consistently seeks to exceed customers’ expectations. Fairness,
Truthfulness and Transparency govern our customer relationships in determining the

transactional terms, conditions, rights and obligations.
 Employees must safeguard confidential information which may come to their
possession during the discharge of their responsibilities. Respect for customers’
confidential matters, merits the same care as does the protection of the Bank’s
Own affairs or other interests.
 Employees must ensure that ‘know your customer’ principles are adhered to by
obtaining sufficient information about the customers to reasonably satisfy
ourselves as to their reputation, standing and the nature of their business
activities.
 Employees must avoid circumstances in which their personal interest conflicts, or

may appear to conflict, with the interest of the Bank or its customers. Employees
must never use their position in the Bank to obtain personal advantage or gain.
 Employees must not enter into an agreement, understanding or arrangement with
any competitor with respect to pricing of services, profit rates and / or marketing
policies, which may adversely affect the Bank’s business.
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 Employees must not accept gifts, business entertainment or other benefits from a
customer or a supplier / vendor, which appear or may appear to compromise
commercial or business relationship.
 Employees must remain alert and vigilant with respect to frauds, thefts or illegal
activities committed within the Bank premises.
Market standing of Askari bank:

ACBL have A1+, the highest possible credit rating, for short term obligations, and their
long term rating stands at AA+ by PACRA (Pakistan credit rating agency). The rating
specifies a very high credit quality and very strong capacity for timely payment of
financial commitments.
Definitions by Pakistan Credit Rating Agency Limited (PACRA):
AA
Very high credit quality. ‘AA’ ratings denote a very low expectation of credit risk. They
indicate very strong capacity for timely payment of financial commitments. This capacity
is not significantly vulnerable to foreseeable events.
Obligations supported by the highest capacity for timely repayment.
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Chapter: 2
MANAGEMENT SYSTEM
 Organizational Chart
 Corporate Profile
 Management Hierarchy
 Policy Formation process
 Managerial Policies
Organizational Chart
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Corporate Profile:
Board of directors
 Lt. Gen. Javed Zia Chairman
 Lt. Gen. (R) Imtiaz Hussain
 Maj. Gen. (R) Saeed Ahmed Khan
 Mr. Zafar Alam Khan Sumbal
 Mr. Muhammad Riyazul Haque
 Mr. Shahid Mahmud
 Mr. Ali Noormahomed Rattansey, FCA
 Dr. Bashir Ahmad Khan
 Mr. Tariq Iqbal Khan, FCA
 Mr. M. R. Mehkari
Audit Commit
 Dr. Bashir Ahmad Khan Chairman
 Mr. Ali Noormahomed Rattansey, FCA

 Mr. Tariq Iqbal Khan, FCA
Company secretary
 Mr. M. A. Ghazali Marghoob, FCA
Chief financial officer:

 Mr. Saleem Anwar, FCA.
Auditors:
 AF. Ferguson & Co Chartered Accountants
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Legal advisors:
 Rizvi, Isa, Afridi & Angell
Shariah advisors
Dr. Muhammad Tahir Mansoori Legal Advisors
Corporate Information
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Imtiaz Hussain
(HIM) Chairman
Chairman
Lt. Gen. (R) Zarrar Executive
Azim Committee
President
Mr. Shaharyar Ahmad & Chief

Executive
Brig (R) Muhammad

Director
Shiraz Baig
Brig (R) Asmat Ullah

Khan Niazi Director
Brig (R) Muhammad

Bashir Baz Director
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Mahmood Chaudhari Director
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Audit Committee
Brig (R) Asmat Ullah Khan Niazi Chairman

Brig (R) Muhammad Shiraz Baig Member
Mr. Kashif Mateen Ansari Member
Auditors
Chartered
A.F.Ferguson & Co.
Accountants
Legal Advisors
Rizvi, Isa, Afridi & Angell
Executive Profiles
Mr. Agha Ali Imam:
Senior Executive Vice President
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Mr Imam is Group Head Of Consumer Banking Group. He oversees all aspects of the
Bank's Consumer Business including industry leading sales production team and over Rs
12,000,000,000 consumer servicing portfolio.
Mr Imam joined Consumer Banking in 2002 where he led the organic growth of the
Division and the successful integration of Retail Banking. He also engineered numerous
successful growth and operational efficiency initiatives that resulted in notable
Improvement in loan processing time, deeper mortgage product penetration among Retail
Bank and commercial customers and a significant increase in market share.
M.R Mehkari:
Suhail Ahmad Rizvi:
Executive Vice President
Mr. Rizvi is a graduate of F. C. College, Lahore and did his masters in Business
Administration (MBA) from University of Sterling Scotland, U.K. He has attended a
Number of courses in Credits, Foreign Trade and Correspondent Banking locally and
abroad
Mr. Nazimuddin A. Chaturbhai:

Mr. Nazim started his career almost 40 years back with UBL Karachi, relocating to UBL
Abu Dhabi in 1972. Prior to joining Askari Bank, he was associated with United Arab
Bank, Abu Dhabi & Dubai (affiliated with Societe Generale France). He worked with
First International Investment Bank (managed by Amercian Express Bank). He
performed at senior positions and was responsible for Funds Mobilization, Business
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Development, Liquidity Management and Credit OperationAcademically he is Masters in
Business Administration from CUC, USA and qualified DAIBP and IBL-I, UK. His
schooling was nursed from Saint Patricks High SchooHe had attended number of local
and foreign, Seminars, Sessions, and Courses on Bank Operations, Economics,
Leadership and Change Management..
Malik Asad Ali:

Noon, Executive Vice President
Mr. Asad Ali Noon joined Askari Bank in July 2006 as Executive Vice President /
Regional General Manager for Rawalpindi/Islamabad. Presently he is working as
Regional General Manager for North Region.
Mr. Noon started his professional career in 1979 with BCCI as Manager Operations in an
Offshore Banking Branch after attending extensive Training at their Head Office at
London City. Later on, his services were utilized at various International Positions by
BCCI. In 1992, he joined Prime Commercial Bank Limited and served as Incharge /
Group Vice President. Prior to joining Askari Bank, he has also served American Express
Bank & Union Bank at senior level positions.
Mr. Tahir Aziz:

Executive Vice President
Mr. Tahir Aziz joined Askari Bank in 2005 and is currently holds overall responsibility
for the Bank's Corporate & Investment Banking Group - that provides all requisite
products and services to the Bank's corporate & institutional clients.
Prior to joining Askari Bank, Mr. Aziz was working at Union Bank, as Head of
Investment Banking, where he was responsible for successfully setting up investment
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banking as a new business for the bank. Prior to that Mr. Aziz was wit ANZ Banking
Group, where he worked on a number of large ticket-transactions spanning the power,
telecom, infrastructure, textiles, refining sector etc. Mr. Aziz was also a member of the
Risk Integration team that consisted of 5-memebrs selected from the ANZ Banking
Group worldwide, to develop proprietary risk models to be used in the bank globally for
its Project Finance and other large-ticket corporate loans.
Mr. Aziz holds an MBA from the Lahore University of Management Sciences and a
Bachelors' in Computer Science and Physics from Grinnell College, USA.
Organizational Hierarchy
President
(CEO)
Senior Executive Vice

President
Executive Vice
President
Senior Vice
President
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Vice President
Assistant Vice
President
Branch Manager
Assistant Manager
Operations Manager
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Officers Grade I,
II, III
Clerical Staf Non-Clerical Staf

Cashier Typist & Clerks Guards &
Assistant
Managerial Policies:
A. Financial policies
B. Procurement policies
C. Marketing policies
D. Promotional policies
E. Lending policies
F. Personal policies
FINANCIAL POLICIES
The financial policies of any bank are the most important policies through which the
whole banking activity is conducted. These policies are primarily conducted on:
 Source of funds
 Use of funds
SOURCE OF FUNDS:
The bank finance policy is acquiring funds from the following sources:
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 Deposits of account holders.
 Interest on advances and loans granted to the borrowers.
 Income and commission from the services provided by the bank.
 Bank opens various types of accounts for its customers Services are
provided for earning.
 Interest income and commission bank providing the services to its
customer.
USE OF FUNDS:
After the acquisition of the funds their acquisition becomes necessary. The bank seeks the
best way for making investment to get more profit with the maximum security. The bank
has an investment portfolio in which it allocate its funds for crediting to borrowers,
investment in the stock market, investment in the real estate property etc. for the
allocation of funds a bank has to follow some banking policies and the prudential
regulations of SBP these are:
A bank has to maintain liquidity with state bank of Pakistan, i.e. 25 %of its total deposits.
A bank cannot invest all of its funds otherwise it will be difficult to meet urgent needs.
A substantial part of funds is received from interest on loans and advances. Before
granting a loan the bank analyzes and observes the borrower and conduct a complete ratio
analysis. Bank prepares credit line for this purpose the major thing is granting an advance
is the security offered by the borrower and its actual market value.
PROCUREMENT POLICIES
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Procurement policies are more concerned with manufacturing organizations. In bank
industry that is service industry procurement means the procurement of funds from various
sources such as deposits. It involves attracting and holding the funds of the depositors.
After the acquisition of funds, the bank invest the acquire funds. One alternative is to lend
its money and earned interest markup or invest in govt. securities etc. as already mentioned
in the above paragraph the major sources of funds for a bank are the deposit of the general
and the other sources of income includes interest or markup charges received for various
services offered by the bank to its clients.
A bank tries to attract maximum no. Of accounts so that it can increase it’s deposits and
these lending ability. In order to get maximum no. of accounts the staff of the bank must
be efficient as compared to the other banks and the manager of the branch must take
personal interest in attracting deposits. Good quality of the service is the key to success.
MARKETING POLICIES
Marketing policies are also one of the most important policies because they are related to
the growth of the organization. Marketing for a bank would mean:
1. Creation of new product and services.

2. The bank marketing must be consumer oriented.
Following are the marketing policies of the ACBL.
a. Keeping the track of latest development in the world and incorporating the
latest and most modern equipment to make the banking procedures simple
and easy for the customers.
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b. Development of products for the customers.
c. Giving good services and maintaining good relations with the customers.
These policies can be implemented by providing the right product and service to the
customer at the right place, at the right time, at the right price.
It is necessary for the managers to keep in touch with consumers, observe their needs and
develop products, which meet their needs.
PROMOTIONAL POLICIES
Public relation and advertising has assumed a great importance in the modern banking
business. As for as promotional activities are concerned, the main objective of the bank is
to inform the existing clients and other people about its new products or change in the
existing services. ACBL establishes its purpose through:
1. Direct contact with customers.

2. Relation with business organizations.
3. Community relations.
LENDING POLICIES
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Every bank has its own lending policies except for those, which are common for all the
banks, i.e. the policies, which are imposed on all the commercial banks by the SBP, are
known as prudential regulations. The lending policies of ACBL are as follows:
1. The bank only invests in those sound and viable projects, which have good rate of
return.
2. Bank prefers to advance loan to their account holders.
3. Loan is given to reliable person only.
4. No political loan is sanctioned by bank.
5. Any account holder can apply for running finance or demand finance. The manger
appraises the past record of account holder and his credit worthiness. If he finds
any thing wrong he can refuse to sanction the amount.
6. The bank while taking security prefers govt. Securities to shares.
7. It also advances working capital loans.
PERSONAL POLICIES
Personal policies have an important role in the success of an any organization. ACBL
have its proper personal policies. Good personal policies motivate the employees towards
hardworking.
Following are the main personal policies of ACBL:
1. Selection of employees on merit
2. Selection of capable employees.
3. Attractive salary package for motivation of employees.
4. To train and develop the future management of the bank.
5. Every employee must have certain set of clearly defined duties
6. Effective communication at al levels of the organization.
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Chapter: 3
MARKETING MIX
 Product
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 Price
 Place
 Promotion
 Publicity
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COMPANY MARKETING MIX
The concept of marketing mix is very important in the business literature. Marketing mix
is a combination of a number of marketing elements according to a market situation.
If a business enterprise rationally blends the elements of marketing into a program of
mix, then it competes, stays and earns profit in the market. In case, the integration of
the various elements of marketing is defective, the firm cannot fight out its rivals in
the market and ultimately suffers losses.
Marketing mix is defined as:

“The set of controllable tactical marketing tools that the firm
blends to produce in response to wants in the target market.”‘
The various elements of marketing mix are as follows;

 Products
 Price
 Place
 Promotion
Marketers use numerous tools to elicit desired responses from their target market. These
tools constitute a market mix.
Four P’s Four C’s

Product Customer needs and wants
Price Cost to the customers
Place Convenience
Promotion Communication
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Now let us discuss the marketing mix of ASKARI COMMERCIAL BANK
LIMITED.
While successfully penetrating the key domestic markets through strategic expansion and
business diversification, we remain alive to the challenges emanating from the
developments in the global financial markets; the opportunities and threats engendered by
greater deregulation, and increased customer expectations. These provide us the impetus
to make the best use of available resources, including modern technology, to meet the
challenges ahead.
Historically, Askari’s core marketing focus for its asset base has been the middle and
upper middle business houses (including wholesales and manufacturers) operating in the
large urban centers of Pakistan, which are primarily oriented towards foreign trade. This
segment contributes significant revenues to the Bank. The liability side remains focused
on the middle and upper middle class, retired and serving government and armed forces
personnel, and mid size business houses.
Benefiting from the bank’s growing balance sheet size, this division is now gaining
momentum and our long term aim is to develop it into an independent strategic business
unit (SBU). This would enable the bank to acquire, develop and retain specialized
abilities, and enhance our focus on serving the emerging needs of the corporate clients.
With the branch network of 46 and further expected increase of 18 during 2003, the
ATM’s facility and Internet Banking. Askari bank’s reach is ever increasing. In
recognition of this reach, we set up Retail Banking Group in July 2000, dedicated to
serving the urban consumer market. Askari is committed to aggressively market this
segment. The strategy is to provide our customers with a banker of innovative products to
meet their varying needs.
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In view of the fast changing market conditions and the narrowing of traditional lucrative
margins on loans, Askari bank now commits itself to seek out new opportunities and
make its existing operations more efficient. This is evident from revamping of the
Treasury that is being geared to provide innovative products and efficient services to our
clients. In the process, we hope to improve overall margins on the surplus liquidity
available with the Treasury.
Despite the falling interest rates, which compelled people to divert their investments to
the share market and property, our deposits increased from PKR 41 billion in 2001? Our
operating Profit (before provisions) for the year, stood at PKR 1,595 million as at
December 31, 2002, while the figure for last year was PKR 1,291 million. Although the
interest margins were greatly squeezed during the year 2002, especially in the second
half, we succeeded in compensating for the reduced margins by a substantial increase in
volumes.
The Board and Management are steering towards contemporary management design. This
is evident from the conception of the new division for “Planning and Corporate Affairs”.
The division was set up to play a proactive role in pursuing corporate and organizational
development, giving strategic direction to the bank and looking out for new growth
avenues. Askari is one of the first Pakistani banks to develop such a dedicated function
with a high focus on the future.
During the first quarter of 2003, the bank plans to operationally an Offshore Banking
Unit (OBU) in Bahrain.
In the near future, Askari bank also plans to launch some new consumer products,
developed and designed by its Retail Banking Group. This will include debit cards,
prepaid cards and electronic billing systems. The bank plans to enhance its ATMs and
Internet banking services with new features like inter branch funds transfer, and the
payment of utility bills.
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We plan to setup a Call Center and Date Warehouse to enhance the timeliness and quality
of our services. Enhancements are also planned for the banking software so that funtions
like Trade Finance, SWIFT messages, and credit approvals can be integrated into the core
banking system. The bank is also in the process of obtaining a new IT system for its
Treasury.
Realizing that “Assets make things possible, people make things happen”. Askari plans to
reemphasize its focus on its human resource. The bank will try to build the organization
from within, giving special emphasis on the quality of its human resource.
Our emphasis on technology is evident from the products that we are developing.
We understand and are committed to enhancing our technology not just to keep abreast
with the modern developments but also to retain our position as leaders in this field
Our motivation is driven by one single factor “Providing customer satisfaction”
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PRODUCTS
Askari Bank presents you an entire range of products... whether you are looking for high
returns on your deposits, lockers for your valuables, liquidity for your business needs,
loans to meet an emergency cash need, or financing for the purchase of an automobile,
we have the solutions to your questions.
Policies Regarding Product
 Intangibility, inseparability and high perish ability are a significant product

planning challenge in service marketing. So to overcome these challenges the
service industry has to adopt various strategies. We would discuss these
strategies in context of ACBL.
 ACBL emphasis is on the benefit the service offers rather than on the service
itself. For example the “e-statement” service emphasis is on the
customer’s convenience, easiness and advantage than on the
service itself.
 For product promotion the use of visualization technique,
association, physical presentation and documentation are
used. On every brochure of ACBL product one sees an image.
For example the “High Yield” saving account brochure shows
an image of wheat plant. What does it reflects or
communicates with the customer? It instantly gives the idea
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That something very rewarding, giving higher returns, a worthy investment etc. so
the customer mind instantly visualizes, associates the service with something
physical.
 In relation to product feature the bank’s emphasis is on building up an
effective brand image. In includes the whole theme more than just the brand
name. Uses of distinctive color schemes, tangible objects, slogans etc are
being used.
 Due to intangibility of products and in the absence of physical features the

bank has to emphasize on differentiation of their offering.
Consumer banking service:
1. Askari Bank’s Personal Finance

One can avail unlimited opportunities through Askari Bank’s
Personal Finance. With unmatched financing features in terms
of loan amount, payback period and most affordable monthly
installments, Askari 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 ways to serve you then ever before.
Features:
 Loan amount from Rs.50,000 to 500,000

 Repayment period from 1 to 5 years
 Fixed monthly repayment
 Low rates that never change
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 No pre-payment penalties
 Shortest processing time
 Funds may be obtained at any ACBL branch
 And certainly unmatched service quality
When you are working towards your financial goals, how you borrow can be just as
important as how you invest. The right borrowing options can improve your savings,
your cash flow and your ability to take advantage of personal or business opportunities.
Eligibility to Apply:
Your age is between 21 and 57*
You have a verifiable minimum gross monthly income of Rs. 15,000.
Salaried:
Minimum length of confirmed service with present employer is at least six months with a
total length of at least one year service.
2. Askari Car Financing

Askari Commercial Bank Limited offers the most convenient and affordable vehicle-
financing scheme, which provides our valuable customers an opportunity to own a brand
new vehicle of their choice. Askaris "No eligibility" clause automatically qualifies a
person to own a latest car of their choice. With minimum down payment, lowest
insurance rates and widest range of available car makes and models, Askari offers the
best value to you.
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ASKARI BANK'S Cash Management Services

 "Askari Cash Management Services" aimed at effectively managing the
accounts receivable portfolio of medium and large corporate entities. While
this service will help the corporate entities improve their liquidity, due to our
well-diversified branch network.
 The service primarily aims at providing clearing, collection and cash/transfer
facility to corporations, under one resource center, which will handle the
Process through the branches and provide adequate reporting to the corporate
clients, on various aspects of their accounts receivable portfolio, every month.
 As the product can be tailor made for National and Multinational companies. The
transaction process flows, operational methodologies and service pricing varies
from customer to customer, with marginal modifications, depending upon
volumes and nature of transactions involved.
3. Askari Bank's Value Plus
Askari Bank leads the way, yet again ...... with the introduction of Askari bank's Value
Plus, rupee deposit account, which promises greater financial freedom and security, in an
unmatched way. Invest as little as Rs.10,000/- in a value plus savings deposit and you are
entitled to earn monthly returns, while still enjoying the flexibility of a normal checking
account.
Advantages:
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 Partial liquidity offer on all time deposits
 Monthly return
 24hours world-wide protection plan
 ASKCARD (Debit Card) &
 Our unmatched service quality
4.Partial Liquidity Offer:

Offering you a truly exciting opportunity to make your investments break new grounds
for you. All you have to do is to invest a minimum deposit of Rs.25,000/-, in a value plus
time deposit for a choice tenure i.e. 3 months,6 months or 1 year.
The investment will be held in blocks of Rs. 25,000/each. In case you wish to partially
withdraw some amount from your total investment, you have the flexibility of encasing
The blocks that you want, without touching the remaining investment. The unencashed
blocks will continue at the same maturity and return.....and yet you don't lose the share of
profit on the encased blocks. Upon maturity you have the freedom of either booking your
time deposit for tenure of your choice, or let the bank roll it over automatically for a like
period.
24 hours worldwide protection:

A unique partnership between Askari Bank and New Hampshire Insurance Company
(American International Group, Pakistan) brings global accidental protection for your entire
family.
At home or at work, your Askari Bank's Value Plus account is there to take care of you
...round the clock ...providing insurance cover of up to 4 times* the average balance in your
account .This is a choice enrolment plan with an automatic monthly premium deduction
facility at a price so low ... you can't even imagine i.e. only Rs. 20/- per month.....
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.....that's what we call relationship banking!
5. Askari Mahana Bachat Account (1 + 3 Years Term)
“Earn Rs. 842/- per month on investment of every Rs. 100,000/- for one year!"
“Earn Rs. 917/- per month on investment of every Rs. 100,000/-

for three years!”
Askari Mahana Bachat Account is a Term Deposit facility available to

individual customer with the option of 1 and 3 Years tenure. It has been
designed keeping in view savings needs of individual investors who
don’t want to block their funds for longer terms, with a competitive rate of return paid
monthly on the 1st of every month. A financing facility up to 90% will be available for
customers if required.
6. Askari Roshan Mustaqbil Deposit:

Askari Bank has launched the Askari Roshan Mustaqbil Deposit, a
saving plan specially designed for individual investors who wish to
invest now for a regular return at a later stage while keeping their
principal amount intact. With Askari Roshan Mustaqbil Deposit you
can double your investment in a time period of ten years. Invest
now in the form of monthly deposits for five years and get paid
back the same amount for the next five years while receiving your principal amount in full at
the end of the tenure.
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7. 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 account. This account is for individual
investors whose purpose is long term savings with high returns.
With a tenure of 10 Years and a competitive rate of return on
maturity this account is ideal for investors who wish to start saving
for their future today.
9. ASKARI CARD:
Askari Bank is committed to provide you innovative and competitive solutions to your
banking needs in a more efficient and personalized manner. Your
Bank enjoys a strategic competitive advantage over all
Domestic players by virtue of its leadership, large network and
Technological advancement. In line with our tradition of innovation,
Askari Bank takes pride in announcing launch of Askari Bank's Debit
Card.
Askari Debit Card means freedom, comfort, convenience and security, so that you can
have retail transactions with complete peace of mind. Askari Debit Card is your new
shopping companion which enhances your quality of life by letting you do shopping,
dine at restaurants, pay your utility bills, transfer funds, withdraw and deposit cash
through ATM anywhere, anytime.
Travelers Cheques
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Askari Bank Limited has always remained at forefront in introducing innovative and
unique products in banking sector. Our financial instruments provide
greater financial freedom and security in an unmatched way to our
valued customers.
Askari Bank offers you its "Rupee Travelers Cheques" eliminating

all financial risks while traveling. So avoid risk of carrying cash
through Askari Bank's Rupee Traveler Cheque
Business Finance:
In pursuance of the National objectives to revive the economy of the

country, ACBL is providing loans to small and medium size business
enterprises under Askari Bank's Business Finance Scheme. Our goal
is to offer a loan, which enables business community to receive the
financing required by them based on their cash flows. Our valued
customers can enjoy the convenience of getting financing on
attractive terms with the minimum processing turnaround time.
Mortgage Finance
Askari "Mortgage Finance" offers the convenience of owning a
house of choice, while living in it at its rental value. The
installment plan has carefully designed to suit both the budget &
accommodation requirements. It has been designed for enhancing
financing facility initially for employees of corporate companies
for purchase/ construction/ renovation of house.
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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 account. This account is for individual investors
whose purpose is long term savings with high returns. With a
tenure of 10 Years and a competitive rate of return on maturity
this account is ideal for investors who wish to start saving for
their future today.
Islamic banking services:

Islamic Banking was launched under the brand 'Askari Islamic Banking', by opening 6
dedicated Islamic Banking branches in major cities of the country. Further expansion is
planned with improved capabilities for offering products conforming to the Shariah
principles.
Askari Islamic Banking opens the doors for Halal banking solutions. Our
objective is to put in place an efficient banking system supportive to
economic justice and welfare of society in line with Shariah standards.
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A comprehensive range of Islamic Banking products and services is being offered, in
order to meet customer's demand of Shariah Compliant Banking, in the following areas:
 Islamic Corporate Banking

 Islamic Investment Banking
 Islamic Trade Finance
 Islamic General Banking
 Islamic Consumer Banking
Islamic Banking products have been approved by the Bank's Shariah Advisor. As per
Shariah requirements, funds and products of Islamic Banking are managed separately
from the Conventional Banking side. All funds obtained, invested and shared in Halal
modes & investments, under supervision of the Shariah Advisor.
Agriculture Finance Solutions

The role of agriculture in Pakistan economy is of pivotal
nature. Due to diverse geographical and climatic
conditions the country has tremendous potential for
growth and development in agriculture. However,
adequate and timely financial assistance to the farmers
will improve production potential of agriculture sector in
the country. The modern concept of agricultural credit
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envisages establishment of an efficient institutional credit system to serve as a package of
credit, supplies and knowledge for the overall strength of the farmers who at present
suffer from low productivity and financial insecurity. A successful credit evaluation
system, therefore, should have the basic ingredients to provide adequate amount at the
right time and in the right form to help farmers in making a productive use of loan funds.
ASKARI KISSAN AGRICULTURE FINANCE PROGRAM
The Askari Kissan Agri Finance Program (AKAFP) has been designed to meet ON
FARM / OFF FARM credit requirements of farmers on the most convenient, flexible,
easy terms and conditions. The program features:
 A broad array of credit lines designed to meet farming requirements.

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

 kissan tractor finance
 kissan ever green fiancé
 kissan aabpaashi finance
 kissan livestock development finance
 kissan farm mechanization finance
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 kissan farm transport finance
PRICE
Pricing Policies
At Askari Commercial Bank Limited the pricing strategies
applicable are:
 One price strategy
 Flexible price strategy
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 For Priority Customers many of the charges are waived in order to
facilitate them and provide them with high-class services.
 The bank staffs in higher posts are also in a position to waive some
charges in order to oblige their customers.
 So the pricing strategies are adaptable and stern depending upon the type
of the customer.
 The Bank offers deposits at competitive prices.
Pricing is one of the four Ps of the marketing mix. The other three aspects are product,
promotion, and place. Price is the only revenue generating element amongst the 4ps, the
Rest being cost centers.
Askari commercial bank use different price strategy for different products and service
To achieve the organization financial goals for each product it use different strategy
When any new product is lunched by the Askari commercial bank the top management
Of the organization must the see the marketing objective before selecting a suitable
Price for a product, the marketer is needed to review the company's objectives. The
More clearer the company's objectives the more easily to set a price
Following are the possible pricing objectives

 Survival
 Maximum current profit,
 Maximum market share,
 Maximum market skimming,
 Product quality leadership.
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When the management set its marketing objective its position in the market and the
Product nature where it is an innovative product and creates monopoly in the market
When the top management set its pricing objective then stage of setting the price of the
Product come
Following are the steps in setting price for a product:
 Selecting the pricing objectives;

 Determining the consumers' demand;
 Estimating costs;
 Analyzing the competitors' costs, prices and offers;
 Selecting a pricing method
 Selecting the final price
.
ACBL see the nature of product and charge price according to product if the product
Is innovative it charge higher margin before lunching the new product the top
Management must see and analyze the demand of product and estimate its costs
Analyzing completion cost price and offer and then chooses a pricing strategy according
To company objective Askari commercial bank has different product and services
Each is based on its own target market and expectation toward the customer price is only
Key which generate the revenue for the organization to achieve its financial objective
And the success and failure of product and service is depend on the price strategy the
Detail of some product and service and their marketing strategy is given
below:
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Product & Service Strategy Detail
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Kissan Tractor Cost-plus pricing Price = Cost of Production +
Finance Margin of
Profit.
Electronic Bill Market-oriented Setting a price based upon
Payment Services pricing analysis and
Research compiled from the
targeted market.
Also with the cost price
Personnel finance Price Charge different price for
discrimination civilian customer
and army customer
Agriculture Product line Askari commercial bank offer
Finance pricing a range of
product line for former such
like
Kissan Ever Green
Finance,Kissan Tractor
Finance,
Kissan Aabpashi Finance
Deposit Premium pricing Premium pricing is the
Multiplier Account practice of keeping
the price of a product or
service artificially
high in order to encourage
favorable
perceptions among buyers
Askari Rupee Target pricing Pricing method whereby the
traveler cheque selling price of
a product is calculated to
produce a
particular rate of return on
investment for a
specific volume of production
Charge the price accoding to
Askari car Finance Competition based competitor
pricing Price strategy
Islamic Banking Competition based Charge the price according

pricing to competitor
Price strategy
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The detail of product and service and their pricing strategy is given below which is
Based on company financial objective:
SAFE DEPOSIT LOCKERS

Fee for safe deposit lockers (to be recovered in advance or at the
commencement of the period yearly/half yearly/quarterly as the case
may be)
 Small Rs. 1,200 p.a.
 Medium Rs. 1,700 p.a.
 Large Rs. 3,000 p.a
 Extra Large XL (16”x 16”) Rs. 3,750 p.a
 Extra Large XXL(16”x31”) Rs. 6,000 p.a
Charge price according to usage or service
.
.
UTILITY BILLS (PTCL, WAPDA, SNGPL)

A. Service Charges RS 8 Rupees payable by utilities companies
Charge a fix fee for every customer
AGRICULTURE BANKING
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Processing Fee for following Finances: 1% of the sanctioned facility amount
 Askari Kissan Evergreen Finance.
 Askari Kissan Tractor Finance.
 Askari Kissan Farm Mechanization.
 Askari Kissan Livestock Development Finance
 Askari Kissan Aabpashi Finance
 Askari Kissan Transport Finance
 Askari Kissan Green House & Tunnel Finance
 Askari Kissan Farm Storage Finance
 Askari Kissan Model Dairy Finance
 Askari Kissan Gold Fish Finance.
 Askari Kissan White Pearl Finance
 Askari Kissan Murghban Finance
 Askari Kissan Gulban Finance
 Askari Kissan Samar Bahisht Finance
 Asan Mali Sahulat.
 Service charges on delayed payment of markup/Installment of TF/rollover of
revolving credit facilities.
 overdue by 31 days to 60 days Rs. 500/- (flat)

 overdue by 61 days to 90 days Rs. 1,000/- (flat)
 overdue (past) 90 days Rs. 1,500/- or Rs. 0.46/1000 on daily product
(whichever is higher)
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 Transfer of Facility (on request within the bank) Rs. 1,000/- (flat)
 Amendments in terms of approval Rs. 500/- (flat)
Provide a range of product and service to former and provide different loans for
Agriculture
Retail banking:
Personal Finance
a. Processing fee for civilians
i) Clean - 1.20% of loan amount min. Rs.2, 750/-
(Including legal & documentation charges)
ii) Secured – 1.20% of loan amount max. Up to Rs.5, 500/-
(Legal & documentation charges at actual)
b. Processing fee for Armed Forces personnel
ii) Secured - 1.20% of loan amount max. Up to Rs.5, 500/-
Smart Cash
a. Processing Fee
ii) Secured - 1.20% of loan amount max. Up to Rs.5, 500/-
Mortgage Finance
a. Processing Fee Rs.5, 500/- (Flat)
b. Legal/documentation/valuation/income
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Estimation charges at actual
c. Enhancement Charges Rs.5, 500/- (Flat)
d. Late Payment Charges Rs.600/- per installment
f. Premature Termination Charges
a) In case of early settlement by the borrower charges will be
Applicable in the following manner
i) 1stYear: Unto 6% on outstanding balance
ii) 2ndYear: Up to 5% on outstanding balance
iii) 3rdYear onwards: Up to 4% on outstanding balance.
b) Up to 10% of the outstanding balance, in case of balance
Transferred to other bank, irrespective of the time period
Balloon Payment allowed up to a maximum of 20% of
The outstanding balance in a year Additional balloon
Payment be up to 5.5% charges on the amount being paid
g. Balloon Payment Rs.250/- per cheque
Business Finance
Processing Fee Rs.5, 500/- (Flat)
Legal/documentation/valuation/income
Renewal Fee Rs.5, 500/- (Flat)
Enhancement Charges Rs.5, 500/- (Flat)
Cheque Return Charges Rs. 600/- (per cheque)
Late Payment Charges 21% of the overdue am
Premature Termination Charges Up to 6% of the limit.
Auto Finance
a. Processing Fee Rs.5, 000/- (Rs.2, 200/- non-refundable)
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b. Legal/documentation/valuation/income
c. Premature Termination Charges Up to 6.5% of the outstanding loan amount
d. Balloon Payment 15% of the outstanding balance in a year subject to 3.25%
Charges on the amount being paid (balloon payment amount)
e. Cheque Return Charges Rs.600/-
f. Late Payment Charges Rs.600/-
The price is based on competitor price and price include margin + cost
Place
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Main offices
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Address : ASKARI BANK LIMITED AWT PLAZA BRANCH RAWALPINDI
City: Rawalpindi Region : North
Manager: 9063200 / 9273178 Manager (Ops) : 9063198 / 9273177
AWT PLAZA BRANCH, Rawalpindi Branch Code : 0001
PABX #: 9063158 Fax No: 9273175 / 9273180 /
Address : Saima Trade Tower I.I.Chundrigar Road Br,karachi 9273181
City:
E-Mail: Karachi
b0001@askaribank.com.pk Region :
Tlx: South
Main Br, Karachi, Karachi Branch Code :0002
Manager: 0333-2335404
M.A. Jinnah Road,Quetta Main, Quetta 0321-3077975
Manager (Ops) : Branch Code : 0003
PABX #: 021-2630731 Fax Road
Address : M.A.Jinnah No: 021-2631176
E-Mail: b0002@askaribank.com.pk
City: Quetta Tlx: Region : South
Manager: 081-2833333 Manager (Ops) : 081-3836051
PABX #: 081-2843751-4 Fax No: 081-2845602
E-Mail: b0003@askaribank.com.pk Tlx:
PESHAWAR CANTT, Peshawar Branch Code : 0004

Address : FAKHR-E-ALAM ROAD PESHAWAR CANTT
City: Peshawar Region : North
PABX #: 091-9212433-6 Fax No: 091-5276391
Main / SAT Branch, Lahore Branch Code : 0006

Address : 7-A, Shahrah-e-Aiwan-e-Tijarat
City: Lahore Region : Central
PABX #: 042-9203673-7 Fax No: 042-9203351
Jinnah Avenue Branch, Islamabad Branch Code : 0008
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Address : 24-D, Rasheed Plaza, Jinnah Avenue, Blue Area, P.O. Box 1499
City: Islamabad Region : North
Manager: (051) 2871144 Manager (Ops) : (051) 2271801
PABX #: (051) 2271794-6 Fax No: (051) 2271797
E-Mail: b0008@askaribank.com.pk Tlx: 54683 ASKRI PK
University Road Branch, Faisalabad Branch Code : 0009

Address : University Road Faisalabad
City: Faisalabad Region : Central
Manager: 041-9201001,0333-6509781 Manager (Ops) : 041-9201003,0333-
6664285
PABX #: 9201008-11 Fax No: 041-9201006
Gujranwala Branch, Gujranwala Branch Code : 0012

Address : Opposite General Bus Stand G.T Road Gujranwala
City: Gujranwala Region : Central
PABX #: 055-9200855-56 Fax No: 055-9200858
E-Mail: b0012@askaribank.com.pk TX:
Abdali Road Multan, Multan Branch Code : 0013

Address : 64-A, Abdali Road
City: Multan Region : Central
PABX #: 061-9201391-4 Fax No: 061-9201395
E-Mail: b0013@askaribank.com.pk TX:
Bahawalpur, Bahawalpur Branch Code : 0025
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Promotion
Promotion is a form of corporate communication that uses various methods to reach a

targeted audience with a certain message in order to achieve specific organizational
objectives. Nearly all organizations, whether for-profit or not-for-profit, in all types of
industries, must engage in some form of promotion. Under the concept of Integrated
Marketing Communication ACBL attempt to develop a unified promotional strategy
involving the coordination of many different types of promotional techniques. The
objective of promotion strategy is to getting customers to buy an organization’s product
and, in most cases, to remain a loyal long-term customer.
The purpose and objectives for marketing promotions of ACBL may include the
Following:
 Build Awareness
 Create Interest
 Provide information
 Stimulate Demand.
 Reinforce the Brand
Promotional Strategies use by ACBL
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Advertising
The main source is used by ACBL is advertisement it involves non-personal, mostly paid
promotions often using mass media outlets to deliver the marketer’s message. While
historically advertising has involved one-way communication with little feedback
opportunity for the customer experiencing the advertisement, the advent of computer
technology and, in particular, the Internet has increased the options that allow customers
to provide quick feedback. Advertising in News Papers and Television is used as a
marketing tool by ACBL However it is often used when a new product is introduced.
Bill Board:
Another source used by ACBL to convey message is billboard the main areas of urban era
near the school/college airport and high traffic areas the bill board are placed to convey
message.
Broachers:
The Bank publishes various brochures for the general guidance of the customers. These
include the Schedule of Bank Charges, VISA Card Information, and Savings & Term
Deposit Information etc.
Personal Selling:
Personal selling is also a norm at the Bank. The branch has well learned sales executives
i.e., Business alumnae. Personal selling is used both for attracting individual and
corporate clients.
Internet
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Askari commercial bank use internet as a promotion tool to convey the message to the
target audience all the information related to product and service and the organization is
available on the internet
Social marketing
ACBL has made generous contribution in the area of sport culture poverty woman &
child care health & medical science human development and scientific research ACBL
sponsored international squash tournaments were professional from all over the world
participated Askari commercial has also sponsored other sports tournament include Golf
at both amateur and professional level the bank has also contribute toward awareness
program for AIDS water conservation and blindness and has promoted the country 's
cause on international forum by cosponsoring the first interactive encyclopedia of
Pakistan.
Public Relations
The most popular tool use by the banker and manger to increase their deposit crate
awareness and loyalty public relation s also tool of promotion.
Publicity:
This type of promotion uses third-party sources, and particularly the news media, to offer
a favorable mention of the marketer’s company or product without direct payment to the
publisher of the information. For example media cover any Tournament that is sponsored
by ACBL.
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Chapter: 4
FIANANCIAL STATEMENT ANALYSIS
 Trend/ horizontal analysis
 Vertical Analysis
 Financial Ratio Analysis
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FIANANCIAL STATEMENT ANALYSIS

Financial Analysis
Financial Analysis refers to the assessment of a business to deal with the planning,
budgeting, monitoring, forecasting, and improving of all financial details within an
organization.
Three most common methods used for financial analysis are.
 Trend/ horizontal analysis

 Vertical Analysis
 Financial Ratio Analysis
Horizontal analysis:
A procedure in fundamental analysis in which an analyst compares ratios or line items in
a company's financial statements over a certain period of time. The analyst will use his or
her discretion when choosing a particular timeline; however, the decision is often based
on the investing time horizon under consideration.
The process of dividing each expense item of a given year by the same expense item in
the base year. It allows assessment of changes in the relative importance of expense item
over time and the behavior of expense items as sales change
Balance sheet:
A financial statement that summarizes a company's assets, liabilities and shareholders'
equity at a specific point in time. These three balance sheet segments give investors an
idea as to what the company owns and owes, as well as the amount invested by the
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shareholders.
The balance sheet must follow the following formula:

Assets = Liabilities + Shareholders' Equity
Income Statement
A financial statement that measures a company's financial performance over a specific
accounting period. Financial performance is assessed by giving a summary of how the
business incurs its revenues and expenses through both operating and non-operating
activities. It also shows the net profit or loss incurred over a specific accounting period,
typically over a fiscal quarter or year.
Also known as the "profit and loss statement" or "statement of revenue and expense".
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BALANCE SHEET
Rupees in million
2007 2008 2009
Assets
Cash and balances with treasury banks 13,356 16,030 19,386
Balance with other banks 3,497 3,955 8,364
Lending to other financial institutions 14,444 4,480 4,614

investments 39,431 35,678 67,046
advances 100,780 128,818 135,034
Operating fix assets 5,128 8,266 9,845
Deferred tax assets _ _ _
Other assets 5,535 8,964 10,036
Total assets 182,172 206,191 254,327
Liabilities
Bills payable 2,627 2,585 2,945
Borrowings 17,554 15,190 19,300
Deposits and other accounts 143,037 167,677 205,970
Subordinate loans 2,997 2,996 5,995
Liabilities against assets subjects to finance lease _ _ _
Deferred tax liabilities 472 13 334
Other liabilities 3,220 4,759 4,833
Total liabilities 169,906 193,220 239,378
Net assets 12,266 12,971 14,949
Share capital 3,006 4,059 5,073
Reserves 6,948 7,667 7183
inappropriate profit 2,145 309 886
Total 12,100 12,035 13,143
Surplus on revaluation of assets net of tax 166 936 1,806
Total capital 12,266 12,971 14,949
Total liabilities and capital 182,172 206,191 254,327
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Horizontal Analysis: 2007 2008 2009

vs vs vs
2006 2007 2008
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Assets -10% 20% 21%
Cash and balances with treasury banks

Balance with other banks -52% 13% 111%
Lending to other financial institutions 72% -69% 3%
investments 38% -10% 88%
advances 2% 28% 5%
Operating fix assets 35% 61% 19%
Deferred tax assets
Other assets 45% 62% 12%
Total assets 10% 13% 23%
Liabilities
43% -2% 14%
Bills payable
Borrowings 17% -13% 27%
Deposits and other accounts 8% 17% 23%
Subordinate loans - - 100%
Liabilities against assets subjects to finance lease - - -
Deferred tax liabilities -36% -97% 2469%
Other liabilities 24% 48% 2%
Total liabilities 10% 14% 24%
Net assets 11% 6% 15%
Share capital 50% 35% 25%
Reserves 19% 10% -6%
inappropriate profit 19% -86% 187%
Total 26% -1% 9%
Surplus on revaluation of assets net of tax -88% 463% 93%
Total capital 11% 6% 15%
Total liabilities and capital 10% 13% 23%
Interpretation:
From the analysis above we have seen that total assets of sari bank has been decreased
from 2007-2009.the main reason for this increase is that bank investment increase in
2009 with a large amount i-e 88%.another reason for increase in assets of bank is the
large amount of balances of other banks.
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When we make a look on liabilities section of bank we have analyzed that the banks
liabilities have been increased in 2009 as compared to 2007 and 2008.which means that a
large amount of debts have been taken by a bank in this year.
Now move to equity section from the analysis of bank’s capital we came to know that the
total capital of bank has been increased in 2009 than in previous years which is a
favorable point for bank.
Hence the overall trend of the bank’s financial position that we have analyzed from
horizontal analysis is that.
 Bank’s total assets have been increased with a minimum amount from 2007-2009
 Bank’s investment shows a large amount of increase the main reason for this
change is its less lending to financial institutions and large amount of balances of
other banks
 The total liabilities of bank also decreased which is not a favorable point but it
may be due to change in governmental policies or government regulations,
country’s economic position and many other factors.
 The capital of bank also shows a good point of bank’s financial position.
Income statement
2007 2008 2009
Mark–up / return / interest earned 15,143 18,393 22,662

Mark–up / return / interest 8,686 10,651 13,629
expensed
Net mark–up / interest income 6,458 7,743 9,033
Provision against non–performing 3,920 3,825 2,324
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loans and advances
Impairment loss on AFS - - 431
investment
Provision for impairment in the 2 1 77
value of investments
Bad debts written off directly - 247 -
3922 4,037 2,915
Net mark–up /interest income 2,536 3,670 6,118
after provisions
Non mark–up/interest income
Fee, commission and brokerage 1,073 1,258 1,308
income
Dividend income 137 174 163
Income from dealing in foreign 656 874 538
currencies
Gain on sale of investments – net 2,361 37 144

Unrealized gain on revaluation of 2 22 (2)
investments classified as held for

trading – net
Other income 337 343 404
Total non–markup / interest 4,565 2,707 2,555
income 7,101 6,377 8,672

Non mark–up/interest expenses:
Administrative expenses 4,790 5,904 6,996
Other charges 12 11 34
Total non–markup / interest 4,802 5,916 7,030
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expenses
Profit before taxation 2,300 461 1,642
Taxation – current 99 17 562
– prior years’ (234) (50) 120

(246) 108 (147)
– deferred
(381) 75 534
Profit after taxation 2,681 386 1,108
Basic / diluted earnings per share – 6.61 0.76 2.18
Rupees
Horizontal Analysis:
2007 2008 2009
vs vs vs
2006 2007 2008
Mark–up / return / interest earned 20% 21% 23%
Mark–up / return / interest expensed 24% 23% 28%
Net mark–up / interest income 15% 20% 17%

Provision against non–performing 248% -2% -39%
loans and advances
Impairment loss on AFS investment - - 100%
Provision for impairment in the - -50% 7600%
Bad debts written off directly - 100% -100%
247% 45 -28%
Net mark–up /interest income -44% 45% 67%
after provisions
Non mark–up/interest income:
Fee, commission and brokerage income 6% 17% 4%
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Dividend income 26% 27% -6%
Income from dealing in foreign currencies 12% 33% -38%
Gain on sale of investments – net 2008% -98% 289%
Unrealized gain on revaluation of investments 200% 1000% -109%
classified as held for trading – net
Other income 5% 2% 18%
Total non–markup / interest income 113% -41% -6%
7% -10% 36%
Non mark–up/interest expenses
Administrative expenses 46% 23% 18%
Other charges 100% -9% 209%
Total non–markup / interest expenses 46% 23% 19%
Profit before taxation -31% -80% 256%
Taxation – current -90% -82% 3206%
– prior years’ -100% -79% -340%
– deferred -318% -144% -237%
-135% -120% 612%
Profit after taxation 19% -86% 187%
Basic / diluted earnings per share – Rupees 19% -89% 187%
Interpretation:
Net income of askari bank has been increased with a large amount in 2009 as compared
to 2007 and 2008.the main reason for this increase is:
 Net mark up interest income is increased in2009 because of loans and advances
taken by a bank in 2009 decreases with large amount. Another reason for this
increase is increases in net mark up interest earned by a bank.
 Total non mark up interest income has been decreases in 2009.it were a large
amount in 2007 and 2008 which was not a favorable point.
 Expenses done by a bank in these three years shows that in 2009 bank has done
low expenses due to which its income increased. We have seen a decrease in
bank’s administration expenses.
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Hence the horizontal analysis of askari bank shows that company’s financial position
was much better n 2009 as compared to 2007 and 2008.
Vertical analysis:
Technique for identifying relationship between items in the same financial statement by
expressing all amounts as the percentage of the total amount taken as 100. In a balance
sheet, for example, cash and other assets are shown as a percentage of the total
assets and, in an income statement, each expense is shown as a percentage of the sales
revenue. Financial statements using this technique are called common size financial
statements
dividing each expense item in the income statement of a given year by net sales to
identify expense items that rise more quickly or more slowly than a change in sales. For
example, an analyst may study a firm’s balance sheet to compare the level of current
assets with the level of current liabilities in order to measure liquidity. Analyst often
studies a firm’s income statement to compare net income with total sales.
Example:.
In balance sheet all accounts of assets section will be divided by total assets while in
liabilities and owner’s equity sectional accounts will be divided by total liabilities and
equity.
In income statement the horizontal analysis will be done by dividing all accounts by
mark up interest/return earned.
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Vertical analysis
Balance sheet:
2007 2008 2009

vs vs vs
2006 2007 2008
Assets 7% 8% 8%
Cash and balances with treasury banks

Balance with other banks 2% 2% 3%
Lending to other financial institutions 8% 2% 2%
investments 22% 17% 26%
advances 55% 63% 53%
Operating fix assets 3% 4% 4%
Deferred tax assets
Other assets 3% 4% 4%
Total assets 100% 100% 100%
Liabilities
2% 1% 1%
Bills payable
Borrowings 10% 8% 8%
Deposits and other accounts 84% 87% 86%
Subordinate loans 2% 2% 3%
Liabilities against assets subjects to finance - - -
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lease
Deferred tax liabilities
Other liabilities 2% 2% 2%
Total liabilities 100% 100% 100%
Net assets 7% 7% 6%
Share capital 25% 32% 34%
Reserves 57% 59% 48%
inappropriate profit 17% 2% 6%
Total 99% 93% 88%
Surplus on revaluation of assets net of tax 1% 7% 12%
Total capital 100% 100% 1005
Total liabilities and capital
Interpretation:
From the analysis of balance sheet, we have concluded that the total assets grew by 7%
contributed by 42% increase in cash balances, 3% increase in investments and 13% in
advances. The investments in 'held for trading' rose by 69% which was added to the
investments growth while nominal increases were observed in investments in 'held to
maturity' and 'available for sale'.
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Vertical Analysis:
Income statement
2007 2008 2009
vs vs vs
2006 2007 2008
Mark–up / return / interest earned 100% 100% 100%

Mark–up / return / interest expensed 57% 58% 60%
Net mark–up / interest income 43% 42% 40%
Provision against non–performing 26% 21% 10%
loans and advances

Impairment loss on AFS investment - - 2%
Provision for impairment in the - - -
Bad debts written off directly - 1% -
26% 22% 13%
Net mark–up /interest income 17% 20% 27%
after provisions
Non mark–up/interest income
Fee, commission and brokerage 7.1% 6.8% 5.8%
income
Dividend income 0.9% 0.9% 0.7%
Income from dealing in foreign 4.3% 4.7% 2.4%
currencies
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Gain on sale of investments – net 15.6% - 0.6%
Unrealized gain on revaluation of - 0.1% -
investments classified as held for

trading – net
Other income 2.2% 1.9% 1.8%
Total non–markup / interest income 30% 15% 11%

47% 35% 38%
Non mark–up/interest expenses:

Administrative expenses 32% 32% 31%
Other charges 0.1% 0.1% 0.2%
Total non–markup / interest expenses 32% 32% 31%
Profit before taxation 15% 3% 7%
Taxation – current 1% - 2.5%
– prior years’ -2% - 0.5%

-2% 1% -0.7%
– deferred
-3% 0% 2.0%
Profit after taxation 18% 2% 4.9%
Basic / diluted earnings per share –
Rupees
Interpretation:
 On the total mark up interest earned, the lager part is contributed by mark up
interest expense in 2009 i.e. 60%
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 Profit after taxation is lower in 2009 as compared to other two years, because of
more expenses and payment of taxes by a bank in this year.
Ratio analysis:
The ratio analysis and industry analysis tools below are very useful for individuals to
instantly assess a company or industry by making two basic types of comparisons.
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First, the analyst can compare a present ratio with past (or expected) ratios for the
organization to determine if there has been an improvement or deterioration or no
change over time. Second, the ratios of one organization may be compared with
similar organizations or with industry averages at the same point in time. This is a
type of "benchmarking" so that one may determine whether the organization is
"average" in performance or doing better or worse than others. For the professional,
conducting such in-depth analyses is critical, allowing an analyst to make an
informed business or investment decision.
Ratio analysis measures:
 Liquidity
 Profitability
 Degree of Indebt ness
Liquidity:
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Current Ratio = Current Assets / Current Liabilities
2009 2008 2007
Current assets 109256/ 197227/ 176636/

Current liabilities 234211 188449 166275
0.46 1.04 1.06
Analysis:
Current ratio should not be less than 2. This indicates that the current assets are
twice than current liabilities. Care should be taken that current assets are not unduly
inflated by over valuation
Here in this case the current ratio of Askari bank is lesser in 2007 as compared to
2008 and 2009 which is not a good sign and shows poor liquidity position of the bank
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Working Capital = Current Assets – Current Liabilities.

2009 2008 2007
Current assets 109256 197227 176636
- - -
234211 188449 166275
Current liabilities
-124955 8778 10361
Analysis:
Working capital is greater in 2007 because of lesser liabilities of bank as compared in
2009 and 2008.in 2009 the working capital of bank is negative which means bank’s
assets are less than liabilities.
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Times Interest Earned = Earning Before Tax / Interest Exp

2009 2008 2007
Earning Before Tax / 1642/ 461/ 2300 /
Interest Exp 7030 5,916 4,802
0.233 0.077 0.478
Analysis:
This ratio indicates the payment of interest by the bank. From the above analysis this
ratio has been decreasing from 2007-2009. In 2007 company is paying its interest
payments on time but in the next two years this ratio starts falling..
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Debt Ratio = total Debt / Total Asset

2009 2008 2007
total Debt 21663 18,186 20,550
/ / / /
Total Asset 206,191 182,172
254327
0.084 0.085 0.112
Analysis:
Debt ratio means how much debt company has been taken from its total assets. The
ratio has been decreased from 2007-2009 which means bank total debt has been
decreased due to which the amount of ratio has been decreases which is favorable for
bank.
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Debt Equity Ratio = Total Debt / Total Equity

2009 2008 2007
Total Debt / 21663/ 18,186/ 20,550 /

Total Equity 13143 12,035 12,100
1.64 1.51 1.69
Analysis:
This ratio is also decreasing from 2007-2009 which means the portion of equity financing
of bank’s total debt has been fallen in these three years.
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Return on Assets = Operating Income / Average Total Assets
2009 2008 2007
Operating Income / 7689432 / 2,531,035/ 8,370,382 /
Average Total Assets 254327 206,191 182,172
0.032 0.012 0.045
Analysis:
This ratio shows that the return is lesser in 2008 as compared to return on assets in
the year 2007 (gradual increase). Although interest and discount on loans which is the
major source of revenue for bank, but cost on deposits and borrowings which is the major
expenditure of bank has increased more in 2007 than in 2008. Another reason of decrease
in return is the decrease in lending rate and increase in financial cost. But again we have
seen a small increase in this ration in 2009.
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Net Profit Margin:
Formula:
(Profit After Tax / Mark Up interest expense) X 100
2009 2008 2007

Profit After Tax / 1108/ 386 / 2681/
Mark Up interest 13629 10651 6458

expense
0.081 0.036 0.415
Analysis:
Calculation made on the base of data available shows that profit earning after taxes in
2007 is greater than 2008 and 2009 years. Here in this ratio we see that the ratio has
decreased not only by the single factor but also due to increase in interest. So, both these
factors has resulted an decrease of the return. But overall profitability of bank is
decreasing that is not a good performance point.
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Earning Per Share:
Formula:
(Profit After Tax / Total No. Of Equity Share)
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2009 2008 2007
Profit After Tax 1108 386 2681
Total No. Of 508 507 405

Outstanding
Equity Shares
Ratios 2.18 0.76 6.61
Analysis:
This ratio is also decreasing from 2007 to 2009. It is not good from shareholder and
investors perspective.
Cost of Borrowing:
Formula:
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(Mark up paid / Deposits) X 100
2009 2008 2007
Mark 13629 10651 8686

Up/interest
expense
Deposits 205970 167677 143037
Ratio 0.066 0.635 0.060
Analysis: Calculation made on the base of data available shows that cost of borrowing
is increasing from 2007-2009, which is a healthy sign for the bank..
Administrative Expenses To Deposit Ratio:
Formula:
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(Admin. Expenses / Deposits) X 100
2009 2008 2007
Admin. 6996 5904 4790

Expenses
Deposits 205970 167677 143037
Ratio 0.033 0.035 0.033
Analysis:
This ratio shows the cost incurred to manage and collect the deposits. The lower the ratio
will be better for business. In our analysis there is only a minor change in the amount of
ratios during 2007-2009.
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Cash to Deposits Ratio:
Formula:
(Cash / Deposits) X 100
2009 2008 2007
Cash 19386 16030 13356
Deposits 205970 167677 143037
Ratio 0.094 0.095 0.093
Analysis:
This ratio shows that how much is available to meet the demand liabilities of the
depositors. The bank should have reasonable cash balance to meet the customer
requirements against their deposits in the bank. In this case bank ratio was greater in 2008
as compared to 2007 and 2009 which is not a good sign from the bank point of view.
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Chapter: 5
SWOT ANALYSIS
 Strength
 Weakness
 Opportunity
 Threat
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SWOT ANALYSIS
An analysis indicating towards the organizations strengths, weaknesses, opportunities and

threat is termed as SWOT Analysis. Such an analysis is very important for the
management in retaining the strength, overcoming the weaknesses, capitalizing over the
emerging market opportunities, and carving ways to successfully tackle with the threats
and ultimately converting them in the strengths for the organization.
During six weeks of my stay at Askari Commercial Bank, I have come across the
following SWOT analysis of the bank.
STRENGTHS
Leading private sector bank:

Askari commercial bank is the leading private sector bank in the banking network in
Pakistan with many of them online branches in major cities of the country.
Automatic operations:
The operations performed by the bank are highly automated that result in assurance for
the customers that their transactions are completed reliably, efficiently and securely.
Full day banking:

One can avail the benefit of the services provided at the bank till 5:00 P.m. which is
highly useful for those customers who find it difficult to leave their officers in the
morning...
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ATM network:
The bank has the largest ATM Network cross the country. The customers of ACBL
withdraw access their funds any time at all the ATM Sites with ASKCASH Logo.
Customized solutions:
The management of the bank believes in customer focused banking rather than the
product oriented banking. The products and services designed by the bank are specifically
tailored to the individual needs of its customers.
Customer oriented banking:

The priority banking centers of the bank offer an unmatched where the customer receives
highly privileged services in a highly elegant environment. It gives the chance of
experiencing new standards in banking. Designed specially for those who appreciate only
the finest things in life, Priority Banking offers the very highest levels of personalized
banking to match customer’s unique status.
Electronic banking:
The revolution in the banking in the form of electronic banking operations have opened
avenues of excellent, efficient and quick services saving the time and costs of the
customers and fortunately ACBL is among those few banks who are already reaping the
benefits of electronic transactions.
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Electronic funds transfer:

ACBL management is quite prepared to adopt the latest advancements in technology
resulting in revolution in the banking operations such as check clearing process,
computer based teller equipment, automatic teller machines, and electronic funds
transfers among the others.
Phone banking:
Phone banking service is very attractive for those classes of customers who don’t have
time to personally come to the bank i.e. banking on the phone line thus saving the
precious time of the customers
Ethical concerns and public image:

The organizations showing concern for the people, ethics, and environment enjoy good
public reputation and are able to reap the benefits in the long run. ACBL management is
quite sensitive to this issue.
WEAKNESSES
In my opinions these are the points that might be detrimental to the efficiency and
profitability of the bank.
Not highly automated:

The bank has still some of the traditional ways of operations in this advanced
technological environment.
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Manual book keeping:

Although the bank has computerized accounting system but, still the bankers use to make
their entries in the accounting register.
Low job satisfaction:

Understanding and the effective management of the human resources is the most difficult
challenge faced not only by the bank but by all the organizations. Even though the people
have been sacrificed in the new organizational developments, it is becoming clear that the
true lasting competitive advantage comes through human resources and how they are
Managed. ACBL seems to not focusing on this highly critical issue as the job satisfaction
level of the employees working at ACBL, was quite low.
Lack of specialization:
This famous and useful concept given by Adam Smith in 1776 seems to be missing in the
bank. The employees are constantly rotated from one job to another job of totally
different characteristic in the view of giving them the know-how of the working in all the
departments. But I think this is not a very good tactics used by the management.
Otherwise the situation might be like this ‘Jack of all and master of none.’
Centralization:
There is a high degree of centralization in the bank. Almost all the decision-making is in
the hands of the upper management. But centralization is effective up to a certain level
otherwise it becomes inefficient and at times costly too. I personally observed that delay
occurred in the operations of the employees only due to the fact that they had not got any
instructions from the head office.
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Lack of training facilities:

Presently there is no specific training program arranged for the new recruiters. They have
to learn based on their observations and also their mistakes. It takes a bit time for the
fresh one to learn the banking the result is huge amount of blunders, mistakes etc.
resulting in monetary and non-monetary losses for the bank. There is pressure not only on
the new learner but also on the person placed upon with this responsibility.
OPPORTUNITIES
Apart from the ones discussed in External Factors Evaluation Matrix, the bank is facing
the following threats and opportunities currently:
Promote Islamic Banking:

Askari commercial Bank promote Islamic banking in all the branches only a few
branches this service is available these are positive external environmental factors
effecting the organization.
A large amount of foreign investment is attracted:

A large amount of foreign investment is attracted to expand their business world wide It
is external opportunity for Askari commercial bank to avail it and take a competitive edge
and create a strong identity world wide
Steady increase in Customer Deposits:

It is opportunity for Askari commercial bank to steady increase customer deposit by
adopting new marketing and promotion scheme and lunch new scheme for their customer
Open branches in rural Areas:
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It is opportunity for Askari commercial bank to expand their business in rural areas and
met unmet segment in geographical areas and promote their business.
Technological improvements:
It is the opportunity for askari bank limited to make technical improvement in their
operation and adopt new technologies of business and make their whole operation
automatic it is convince for both customer and organization to save their time
Use of ATM as a Credit Card:

It can be an opportunity for ACBL to introduce ATM also as a credit card which will
invite a different segment and which will improve profitability. They can also cut costs in
this way.
THREATS
High Employees Turnover:
As discussed above, the job satisfaction level of the employee is very low resulting in
high turnover, which is bad for any organization as there are huge monetary and non-
monetary costs involved in the fresh recruitments.
High charges:
The schedules of charges indicate that the fees charged by the bank on the various
services it provides are extremely high. It may result in decrease in the number of its
exiting customers. Further more, this could be very alarming situation for the bank in
case some of the competitors grasped the opportunity and lowered its rates. The result
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would be either the lost of market share or decrease in the charges resulting in lowering
the bank’s income.
Less attractive rate of return:

Commercial banks face considerable competition in attracting deposits from individuals
or small investors. In contrast, the Govt. of Pakistan national saving scheme offers
attractive rates of return (approx. 16 to 18 percent annually) on 10-15 year fixed
accounts, which banks find difficult to match.
Stiff Competition:
SCB is currently facing strict competition from the foreign banks especially the American
who banks enjoy a good market position. Collectively U.S. banks hold approximately 9
Percent of all commercial banks' assets. At present, three American banks are operating
in Pakistan: American Express Bank; Bank of America and Citibank.
Less Experienced Staff:

Owing to huge turnover of the employees, the no. of experienced and well trained staff is
very low. Majority of the staff working in the bank branches is quite young and
inexperienced. If the bank failed to bring down its high employees turnover, then it would
be lacking the most important resources of any organization i.e. the experienced staff.
Legal regulation:
Legal regulation is serious threat for organization because
Government change their policies and put different kind of taxes and regulation on the
Organization top management always keeps the eye on moving trend of government
High rate of inflation:

Higher rate of inflation is a threat for Askari
Commercial bank the prices of the product and services up and up and unemployment
Is increasing very rapidly bank should adopt flexible policies to give relief their
Customer
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High charges:
The schedules of charges indicate that the fees charged by the bank on
The various services it provides are extremely high. It may result in decrease in the
Number of its exiting customers. Further more, this could be very alarming situation
For the bank in case some of the competitors grasped the opportunity and lowered its
Rates. The result would be either the lost of market share or decrease in the charges
Resulting in lowering the bank’s income.
Chapter: 6
TRAINING PROGRAMME
 Divisional or Departmental detail
 Activities of intern
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 Projects assignments completed
DEPARTMENTS
The Askari Commercial bank has following department:
 Account Opening department
 Cash Department
 ATM Department
 Account Department
 Remittance Department
 Clearing Department
 Foreign Trade Department
 Credit Department
 Credit Card Department
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ACCOUNT OPENING DEPARTMENT

Borrowing funds from different sources has become an essential feature of today's
business enterprises. But in the case of a bank borrowing funds from outside parties is all
the more vital because the entire banking system is based on it. The borrowed capital of a
bank is much greater their own capital. Banks borrowing is mostly in the form of
deposits. These deposits are lent out to different parties. Such deposit creation is done
through opening an account in the Bank.
In ACBL Lahore Mr. Asaad Bhutta is operating the account opening department along
with performing some auxiliary functions of Check Book Issuing.
TYPES OF ACCOUNTS
In ACBL, there are the following types of accounts:
 Current account.
 Saving Account.
 Askari Special Deposit Account.
 Term Deposit.
 Basic Banking Account
 Ever Green Account
CURRENT ACCOUNT
In current account there is no interest on it. It is for only transaction purposes. They are
paid on demand. When a banker accepts a demand deposit, he incurs the obligation of the
paying all cheques drawn against him to the extended of the balance in the account. As
there is no profit paid on this account it is also called chequing account because cheques
can be drawn on it. Current account is mostly opened for business.
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DEPOSIT RATE OF MINIMUM PAYMENT PRODUCT

SCHEMES RETURN BALANCE OF RETURN BASE
PLS 2.50% UPTO--- 6- MINIMUM
SAVING 24,999 MONTHLY MONTHLY
DEPOSITS BALANCE
Rs.10,000
Following is a brief description of the current account
SAVING ACCOUNT
The purpose of this account is to induce the habit of saving individuals in the
neighborhood. The profit is on the basis of 8.5% per 6 month. The minimum deposit for
opening the account is Rs.100/-. Though individuals open such accounts for saving
purpose, persons belonging to Armed forces and different military institutions are free to
use this account on current basis.
Following is a brief description of Saving Account
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DEPOSIT RATE OF MINIMUM PAYMENT PRODUCT

SCHEMES RETURN BALANCE OF RETURN BASE
PLS 2.50% UPTO--- 6- MINIMUM
SAVING 24,999 MONTHLY MONTHLY
DEPOSITS 3.00% 25000TO BALANCE
99,999 Rs.10,000
3.50% 100,000 TO
999,999
4.00% 1,000,000
--------
ASKARI SPECIAL DEPOSIT ACCOUNT

ASDA account is an interest bearing current account interest is paid. The payment of
return is monthly, where as the rate of return with aspect to the amount of minimum
deposit clear from deposit schedules in following table). It is also chequing account
because cheques can be drawn on it. It is necessary for this account that the client must
maintain a minimum balance of Rs. 50,000 at the end of the month. That’s why it is
similar to current account. It is mostly opened by Business but individuals to open this
account. Its code is 165.
TERM DEPOSITS
A term deposit is a deposit that is made for a certain periods of time at the end of the
specific period. The customer is allowed to with draw the principle amount.
ACBLs Term deposits are of types clear in the deposit scheme in the table). One of them
is "Askari" Advantage one month. The rate of return on this account is 9.75%. The term
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deposit account vary one month to 5 years and the min balance requirement is Rs.5000/-
for all following accounts
The amount of profit is given to depositors in three ways:
 By cash
 By sending a bank Draft to depositors Home address or Officers or whichever is
specified as mailing Address.
 The amount is credited in any one of the checking Accounts of the depositor
RATE OF MINIMUM PAYMENT PRODUCT

DEPOSIT RETURN BALANCE OF BASE
SCHEMES RETURN
PLS
TERM 1 MONTH 4% 5,000 MATURITY DAILY
DEPOSIT
2 4.5% 5,000 MATURITY DAILY
MONTHS
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3
5% 5,000 MATURITY DAILY
MONTHS
6
5.5% 5,000 MATURITY DAILY
MONTHS
SIX
1 YEAR 6% 5,000 DAILY
MONTHS
SIX
2YEARS 7% 5,000 DAILY
MONTHS
SIX
3 YEARS 8% 5,000 DAILY
MONTHS
SIX DAILY
5 YEARS 9%
5,000 MONTHS
Basic Banking Account

This account is only for Salaried Persons.Account is opened just for 1000 rupees. In one
month any person can withdraw upto two times through cheque and through ATM at any
time .Its code is 021.
Ever Green Account

This Account is for those people who want to borrow Agri Loan. Its code is 025.
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ACCOUNT OPENING PROCEDURE

For the accounts (C/A, ASDA, SAVING), there are different types of account holders are
required for all these types of account holders. The operation /procedure requirement that
is needed for " Individual Account " differ greatly from " Joint account " proprietorship
"Partner ship “, "Limited Company"
And "Club society or Association” as explained below.
INDIVIDUAL'S ACCOUNT
When a single man or women opens an account in his/her own name and has the right to
operate it is called individual Account.
DOCUMENTATION REQUIREMENT
For literate person copy of National Identity Card is required as a primary requirement.
For illiterate person and Veiled Women, along with the copy of National Identity Card
requirement he or she must come in person for opening the account.
OPERATION
 The person place a "Check Mark " in the type of account and type of operation
required
 He/She fills in part-I of the form , a fix his /her either two or four similar signature
(or thumb expression in the signature space) and get it introduced and signed by a
person who already has an account with the bank and write his account number
in the specific rows in a specific space.
 The person fills in "next of Kin " position where he/she father, mother,
husband/wife or any other relative's name, his /her address, phone no and affix
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his/her signature to certify this requirement. This requirement is needed because
in his/her absence bank can have correspondence with the specific person.
 The person put her /his signature (" or thumb expression) on the signature
Specimen Card (SS CARD) similar in the area on the form. One the back of S.S
Card mailing address, telephone no, Person to contact and introducer space is filled
in. These entire requirements are necessary for future
 The person deposits the initial amount for opening account on to the cash counter.
 The person put his signature on form -A (check book requisition) on two places in
"authorized signature" and fills in the "Title of Account space by writing his
name.
 If the person put his signature in Urdu or any language other than English, he
signed a "Vernacular form" where under take that affixed signature are original
and his own signature and two postal size photos are needed.
 The next day is the opening of account.
JOINT ACCOUNT
When two or more persons, neither partners, nor trustees, open an in their name is
called joint Account. Husband and wife or two persons of same sex can open joint
account.
DOCUMENTATION
For joint account copy of National Identity Card of all the persons is obtained other
things remaining same as in individuals account.
OPERATION
 The person checks the type of amount and type of operation required in the
respective box on the form.
 The persons fill in the Part-I and part-II in the form.
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 Signature of both persons is obtained on the form in the area specified for
signature and S.S. Card.
 In the title of account space names of all the persons are mentioned.
 Accounts holder specified in the form that they will operate the form singly or
jointly.
PROPRIETORSHIP ACCOUNT
When an owner of a firm operating singly, opens an account in his firm name, this
account is called a proprietorship account the proper himself liable for all his acts.
DOCUMENTATION REQUIRED
For this kind of account, an application for opening the account on the firm letter -pad
(having the firm name) is required along with the N-I-C- Card of proprietor.
OPERATION
All operation remains the same except that the firm name is written in the "Title of the
Account” area and signature of the proprietor are affixed in the S.S. Card and the area
specified for signatures on the form.
PARTNER SHIP ACCOUNT

The account is opened in the firm name and all partner designate one two persons to act
on behalf of the partner ship firmer all acts on behalf of firm. The partners in the
partnership firm are liable for the acts of the firm jointly and severely. Every partner has
in a firm has an implied authority bind his co. partners by drawing and enclosed cheques.
DOCUMENTATIONS
 Copy of C. N.I. C of all partners
 Application to open the account on the firm letter pad.
 Partner ship deed in case registered partnership firm.
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 Letter showing the implied Authority of one or more partners to act on behalf of
the firm.
 In case of non -registered partnership firm, understanding on behalf of the firm to
remain liable for all acts of the firm.
 Name, address of all partners is written on the pad.
OPERATION
All other requirement remain same except that the form is dully signed by all
partners cards are signed by all those partners who will act on behalf of the firm
and along filling part-I , Part-Iv is also filled.
LIMITED COMPANY ACCOUNT

This account is for limited companies. In order to facilitate their transaction with outside
parties, bank provides many facilities.
DOCUMENTATION REQUIRED
 Memorandum of Association.
 Articles of the Association
 Resolution of the Board of Director.
 Certificate of Incorporation.
 Certificate of commencement of business
 C-N-I-C
OPERATION
The persons authorized in the Resolution of the Board of Directors put their signatures on
S.S Cards. Next of kin "requirement "is not need in case of a Limited Company. After
completing each and every formality, introducer signature is verified by S.S card and is
stamped "Verified" customer signatures are admitted by stamping "Admitting" near
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signature and again signatures on S.S card are admitted in the same way. The same
process of verification and admission of the signatures is repeated on Form-A and next of
Kin area.
After completing each and every formality, Accountant is open in the computer by
writing name, address, A/C Number etc.
LETTER OF THANKS
At the start of the letter 2nd day, ACBL issues letter of thanks to "Account opener" and
“Account Introducer “for the trust the have on ACBL.
OTHER RESPONSIBILITIES
CHECK BOOK ISSUING
Check books are issued only for checking account such as current Account, saving
Account and ASDA Account. They are not issued for other fixed and term deposits
because of their Long term Accounts “nature.”
ISSUING PROCEDURE
 Signatures on cheque – book requisition are verified by matching with signatures
on SS.
 Cheque – book leaves number, account number, account holder’s name are
mentioned in the cheque- book is made by mentioning the and the total of sum of
excise duty and provincial tax.
 The name of A/c holder and date of cheque – book issuance is written on cheque –
book requisition the account-opening officer puts his initials on requisition leave.
 A/c number is stamped over the leaves of cheque – book and finally authorized
person affix his signature over the debit voucher and he voucher is attached from
the cheque book and is handed over to the customer.
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RECEIVING INWARD CHEQUES

Another responsibility and function of account Opening Department is to receive
Inward cheques for collection of other Banks as well as of ACBL. Then these
cheques are sent to clearing official who clears these checks at SBP from other
banks.
ACCOUNT CLOSING
Account is closed on the written request of the customer ACBL debits Rs. 100/- as
charges for closing the customer account from that account. The account holder with
draws the amount by writing a cheque and just leaves Rs. 100/- in his account. But to
surrender the cheque book yet if some leaves are yet to be write to the bank as a
necessary requirements for closing the account.
PROCEDURE
 The customer for individuals account write an application to the manager of the
bank an a simple paper about the closing of his account with the bank (In case of
proprietor ship partnership and limited company account the application should be
written an firm or company letter –head)
 The individual or in case of other type- proprietor firm and company surrender the
cheque book to the bank.
 The cheque book is then torn from one side and is attached with the application.
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 In case of Ltd. Company account resolution of the board of directors is also
obtained to attach it with the application.
 The account opening form of the account holder is taken from the account-
opening file, and the application, cheque book, and resolution of board of
directors in case of limited company account are attached with the form.
 Lastly, it is written in “Red Ink on the form that account closed” and “Date of
account closing.”
ATM- CARDS DEPARTMENT

This department deals in issuing ATM-Card, term deposits Mr. Waseem deals this
department.
ATM CARD
ATM – Cards are only issued to Account Holder
ISSUING PROCEDURE
 The person, first open the account within the blank.
 Then he fills the ATM application form in which name of account holder, Fathers
name account number and C.N.I.Card number are mentioned.
 A copy of C.N.I.C is also attached with the application form.
 After completing this process, the application package is sent to head office
 ACBL head office takes a period of 2-3 weeks for preparing and processing of
ATM – cards. First, list of card holder is issued and then after 15 days cards are
send to ACBL’s issuing branch. The card and list are not sent simultaneously in
order to avoid any mishandling.
 ACBL takes Rs. 200/- per year as charges for a card
TERM DEPOSIT
Any person can open a term deposit. He needs not have an account in the bank.
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PROCEDURE
 The customer comes to the bank and specifies the number of days for which he
wants to Deposit hid money in term deposit.
 The credit voucher is made for the amount of cash to be deposited. The presence
of account is not necessary.
 The term deposit form is then filled by the officer. The date of opening, the
period, the name of the customer, the signature etc is all written on the form.

 The term deposit Receipt is filed according. All the requirements are carried out,
the signature of the customer and the authorized officer, the stamp of the bank etc.
 The term deposit Receipt is then given to the customer.
 The number of the term deposit form and term deposit is noted receipt is then
given to the customer.
 The number of the term deposit form and term deposit receipt is noted in the term
deposit Register.
 After completion of the form, it is posted in the term deposit file.
 A 0.2% tax on the provincial amount is taken while issuing the receipt.
 A credit voucher made and the amount is credited to the tax on TD.
CASH DEPARTMENT
Cash department of Bank Alfalah works under the operation department. This department
is given the complete responsibility of cash, as result of transaction in touch local and
foreign currencies. It is also responsible for the book keeping of these transactions and
the safe custody of cash.
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This department performs the main function.
 Cash receipts
 Cash payments
Cash Receipts
In cash department depositors use deposit slip for depositing the amount into their
accounts. The officer checks if the deposit slip is properly filled up containing title of
account, A/C number, date and amount in words and figures. Detail on both counter file
and cash receipt voucher should be the same. Cash receiving officer, after twice counted
and matched with the deposit slips will handover cash to the customer. The cash details
are written on the back of the deposit slip and are also entered in cash receiving register.
Cash received stamp is affixed on the face of the deposit slip along with the signature of
the cash receiving officer.
CASH PAYMENTS
First the cheque is presented by the customer or holder to cash payment
officer. He confirms that it is drawn on the same branch and the particulars of cheque are
properly filled in. one signature of the holder is taken on the back of the cheque. Cheque
is handed over to the officer cash department for scrutiny where officer checks the date,
amount in words and amount in figures, payee’s name, crossing if any, account number,
cheque serial number, any material alterations / endorsements and signature of the
customer. Account is debited and then the officer cancels cheque. It is posted in the
system and posting stamp and number is affixed on it. Cheque is handed over to the cash
payment officer for payment. One more signature on that back of the cheque is taken
from the holder to match with the first one, and then cash is paid to the cash detail is
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written on the back of the cheque. Cash paid stamp is affixed on the face of the cheque.
Entry is passed in the cash payment register and system.
ACCOUNTS DEPARTMENT
Accounts department is a department which deals and checks all the activity of all the
department .It also deals in expression of finance of the bank. Salary payment is also one
function of the bank.
CHECKING BANK’S DAILY ACTIVITY

Accounts department deals and checks the entire working of the Branch; all the vouchers
that have been posted at the computer are scrutinized in accounts department. The “End
of Day” i.e. computer print is also received from the computer. The next day the activity
is separated some statements from the “End of Day”. Then next day activity separated
some statements from the “End of Day”. The vouchers are sorted out head wise. The
vouchers are matched with the entries in the statements.
Any abnormality if occurs, is immediately dealt with. All the vouchers and instruction are
checked individually against the computer printouts. After checking they are signed by
Mr. Naeem Shahzad and the internal auditor Mr. Shafiq.
OTHER ACTIVITIES
 Preparation of daily bank positions statement
 Payment of salaries
 Preparation of the statements
 Depreciation calculation
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REMITTANCES DEPARTMENT
Remittance department provides services to the customer of the bank. The main function
of this department is transfer of fund
Instruments of bills and remittance department

The instruments that are handled in the B & R department are as follows:
 Demand Draft.
 Traveler’s Cheque
 Telegraphic transfer.
 Mail transfer.
 Pay order.
 OBC.
 IBC.
DEMAND DRAFT
A demand draft is an instrument, which is drawn by one bank upon another bank for a
specific sum of money payable on demand. It is made by the bank and given to the
purchaser against cash or cheque. If two banks are involved, then one banks sends a DD
to another bank. But in customer - Bank case the customer sends his DD to the receiver.
ISSUANCE PROCEDURE
 A demand draft application (Annexure--) to given to the customer, he fills in a
relevant information and signs it.
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 The Officer in charge then checks the information form.
 The charges such as commission, excise duty, postage is charged as per effective
schedule of charges. Tax is exempted if he is taxpayer & knows his No.
 In case of cash deposit the cashier counts the amounts & signs the DD application
and enters it in the register.
 The cash received equals the amount of remittance & the cheques there on.
 Then the officer of the bills & remittance department signs it and operation
manager counter signs it.
 The entry is made in the DD issuing register.
 It is given to the customer.
 The vouchers and the DD form given for posting at the computer.
 The DD advises are printed at the computer and mailed to the respective branch.
NOTE
 On the contra, when a DD is received i.e. a customer comes to us with the DD,
the procedure is as follows.
 The DD credit advice is received through mail. The No’s are checked &
signatures are verified.
 An entry is made on the DD payable register, and the vouchers are made.
 the Branch Dr
DD payable Cr
 The DD credit is attached with the vouchers and given for the posting at the
computer.
 When DD is received, the test No’s are checked, and the payment is made.
 The vouchers are given for posting. And the entry that was made in register is
closed. I.e. DD payable is Nil.
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Traveler’s Cheque
The range of our products and value added services enhances with introduction
of Rupee Travellers Cheques (RTCs) launched in March 2002. In spite of our constraint
on issuing higher denomination of RTCs against restrictions imposed by the Central Bank
of Pakistan we have been striving to attain our shares with sizeable portfolio. Total
volume handled by the department during the year 2004 is Rs. 798 Million.
The safe way to carry cash.....another Valuable Financial Service
Going places? Don't leave home without the convenience of Askari Travellers Cheques in
your pocket. Available in the denomination of Rs.10, 000/-, it's light, safe and ideal for all
travel purposes. Welcome to another valuable financial solution from your trusted bank.
Free Issuance
You don't have to pay any service charges for purchasing Askari Travelers Cheques. You
can buy these either against cash or debit to your personal account. Simply visit any of
our branches located all over Pakistan and enjoy the privileges of buying Askari
Travelers Cheques
Earn 0.10% encashment Commission

This matchless feature lets you experience yet another innovative customer care solution.
You will receive 0.10% commission whenever the traveler cheque is encased after 30
days of holding.
Enjoy Added Safety & Security

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With our state-of-.the-art in-built security features you can be rest assured that this is the
best way to make and accept payments. High security lithography, ultra violet printing,
special thread, anti scanner pyramid design and unique micro lines, all done and printed
in UK gives you the comfort of dealing in the most safest substitute for cash, easily
refundable in case of loss and theft.
TELEGRAPHIC TRANSFER
A telegraphic transfer is a fastest & safest way to transfer money. The message is fixed.
ISSUANCE
 The request for maintenance through T.T is taken on the standard printed form.
 The customer fills it & signs it.
 The Head & remittance department checks it, the charges such as commission,
tax, telex as per effective schedule and signs it.
 If he fills the tax exemption from then no tax is levied.
 Then a neat T.T is made on the white slip. There are 3 copies. The original faxed
to the Branch, one to the Head Office and one is kept as record.
 The entry is made in the TT issuing register.
 The following vouchers are posted.
 Commission Charges Cr
 Fax charges Cr
 W.H. Tax. Cr
 When commission bill is received, it is attached to the T.T office copy in the file.
PAYMENTS
 When a T.T arrives, the test numbers are checked and the signatures are verified.
 The entry is done in the T.T pay able register.
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 The following vouchers are prepared & given for posting.
 Head Office Dr
T.T Pay able Cr
 T.T Payable. Dr
party A./C. Cr
 If there is no a/c then the T.T receipt needs revenue stamps and then the payment
is made. The T.T receipt is strictly non negotiable.
PAYORDER
It is a cheque drawn by a bank on itself. Pay order is an instrument in which the parties
are involved the purchase, the bank and the receiver. It can he purchased by any
customer. It is usually made by govt. Bodies. A single bank is included in this case.
ISSUANCE
 The standard form is given to the customer; he fills in the detail and signs it.
 The concerned staff checks the form.
 Charges as per effective schedule are applied.

 The cash of the pay order is received.
 A cost memo is signed, stamped and handed over to the applicant as a receipt.
 Then the pay order receipt is filled accordingly.
 Counter foil is also filled.
 An entry is made in the pay order issued register.
 Then the authorized office after checking the pay order signs it.
 The pay order is then handed over to the application after obtaining his signature
on the P.O form.
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 A voucher is also made and posted at the computer Cr bills payable account P.O
issued.
PAYMENT
 On representation of the pay two authorized officers of the branch sign order
receipt the receipt.
 The P.O entry is made in the P.O issued register.
 Then the amount is credited to the account of the customer or paid in cash.
 The P.O is posted at the computer.
PAY SLIP
It is an instrument used by the bank s for its payment. The slips are issued to the
employees of the banks their bills & invoices. The bills are transferred payments. In this
case only one bank is involved .He is the issuer as well as the payer.
Procedure prescribed for P.O for issuance and payment is followed for payment is
followed for pay slips with the following expectations.
 Pay slips are issued by the bank for the settlements of this own payment.
 No excise duty is applicable on P.S.
ISSUANCE
 A credit voucher is sent from the accounts dept. to the b debt. According to the b
debt.
 The P.S books is taken out & filled according to the credit voucher.
 It is entered in the P.S./P.O register.
 It is signed by, an authorized officer, Operational Manager Mr. Abdul Jabbar
Qureshi.
 The pay slips is handed to the customer.
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 A voucher made and posted payment.
 The P.S. is received on the counter, clearing or transfer.
 On receiving the P.S. if it is transferred in the P.S. register.
 The payment is made and the P.O. is posted at the computer.
 Dr. Bills payable P.S. issued.
 If Askari branch is in that city, the OBC forwarding schedule in sent to that Askari
Branch. Otherwise it is addressed to the particular Branch to whom the cheque
belongs.
OUTWARD BILLS FOR COLLECTION

The bills, which are sent to their cities banks for the local clearing in that city, are called
outward bills for collection.
PROCEDURE
 The cheques that are banks in other cities are separated.
 They are entered in the OBC register, the number is written on the stamps.
 The OBC forwarding schedules are prepared for the different branches.
 The respective cheques are attached with the schedule.
 Two authorized officers sign the schedule.
 The office copy is filled and the original schedule is mailed.
 On clearance the respective banks send back the OBCS along with IBCA. Inter
branch credit advice.
 The OBC no are checked for the OBC register and the received any entry is made.
 Charges i.e. commission charges and postages charges are deducted from the A/C.
 Vouchers of following entries are made.
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 Party A/C Dr
Commission Charges Cr
Postage charges Cr
 At the end of the day the contra vouchers are.
 OBC collection Dr
OBC lodged Cr
 OBC collection Dr
OBC lodged Cr
INWARD BILLS FOR COLLECTION

The bills are received from other banks out of city for the local clearing are called inward
bill for collection.
PROCEDURE
 The OBC of the other branches will be the IBC’s of this branch. So an OBC
forwarding schedule is received by mail.
 The cheques are entered in the IBC register. The IBC numbers are allotted to
them.
 The cheques are lodged for clearing.
 After realization, an IBCA is prepared and mailed to the branch.
 At the end of the day two contra vouchers are made & posted.
IBC collection Dr
IBC logged Cr
IBC Collection Dr.
IBC lodged Cr
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OTHER FUNCTIONS
BALANCING THE REGISTER
At the end of the day, all the registers are balanced with the computer balances. The
heads and checked are as follows.
 DD payable
 IBC collection.
 MT payable.
 OBC lodged.
 OBC Collection.
 TT payable.
 IBC lodged.
 Bills payable. P.S. issued.
 Bills payable P.O. issued.
If the payables are not cleared for a lot of days, a reminder is sent to the respective
branches.
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CLEARING DEPARTMENT
“The process by which cheque exchanged between the collecting and paying bank
and the ensuing financial settlement is called “clearing”. This facility is provided by
the state bank of Pakistan for offsetting of cross obligations between the different
banks. Clearing is of two types.
1) Inward clearing
2) Outward clearing
Inward Clearing
When cheque drafts, etc, of our branch presented to us for clearing by the SBP. Cheque to
be honoured by bank.
Outward Clearing
The cheque of other banks, which the account holder deposit in their accounts is, sends
For collection. CLEARING PROCESS (INWARD/OUTWARD)
Here the local cheques are received that are drawn on BAL. All the cheques are received
on one counter along with the paying slips duly filled in properly containing particulars
of cheque and account holder. Counter folio of paying slip is handed over to the customer
by putting stamp for cheque received for collection for Bank Alfalah on it duly signed by
officer. These cheques are scrutinized and cheques for local clearing are separated from
OBCs. These are then entered in clearing register and cheques for collecting are entered
in OBC register and handed over the bills department of collection. Clearing officer
checks and verifies title of all the cheques deposited by the customer to confirm the good
title of the cheques. Cheques are scrutinized properly and paying slips are separated from
cheques. Special crossing, endorsement and clearing stamps are affixed on the cheques.
Cheques of each bank are sorted and arranged branch wise. All the cheques are then
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entered into the clearing system of bank. Print out of the clearing is taken and details are
attached.
With the cheques of each bank. Details of these banks are then entered into the clearing
schedule containing number of cheques presented and their total amount against the name
of each bank. Then total number of cheques presented to all banks and their total amount
is written on the foot of that schedule, which is tallied with the clearing register.
Next morning, these cheques are delivered to the respective banks in clearing house of
SBP between 9:00 to 9:30 AM. In the same manner, other banks present their clearing
drawn on Bank Alfalah. Total number of cheques and their amount delivered to other
banks are received from them are written on the clearing house schedule and handed over
to the officer clearing house SBP. Cheques / DD received in clearing are given to the
officer cash department of the branch for their repayment. After I proper scrutiny of
cheques, verification of signatures and confirmation of balance in the account, officer
cash department pays these cheque by canceling and posting them in the system.
If any cheque is not passed due to insufficient balance or any other reason, officer cash
department returns the same cheque by attaching a cheque return memo containing
reason for return. This cheque is entered into the cheque returned register and bank
charges are deducted according to the schedule of charges.
Second clearing is called at 2:30 PM to check the fate of the cheques presented to other
banks in the morning. If any cheque is to return, that is delivered to the same bank in
second clearing. In the same manner, if any cheque presented by Bank Alfalah in first
clearing is returned, they receive it and once again give schedule of clearing figure to the
officer-clearing house SBP containing number of cheques and their amount delivered and
received unpaid.
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FOREIGN TRADE DEPTARTMENT

Nature has distributed its wealth un-evenly. Some countries are rich in human resources
other have mineral wealth in abundance and yet other have arable land and favorable
climate conditions for agricultural production. This un-even distribution of resources
basically determines the productive efficiencies of different countries.
This is the point where different countries come together to exchange their competencies
and efficiencies. The countries, which lack in any of the resource, start importing those
resources from the country that is having excess of it. In this way the trade starts between
different countries.
Benefits of Foreign Trade:

Following are the main benefits of foreign trade.
 It enables the country to use its resources most profitably and efficiently.
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 A wide scope is available for a country for its surplus production.
 International competition compels countries to produce quality products at
competitive costs.
 A country can earn foreign exchange by selling its products in the international
market.
Trade Finance Services of ACBL.

With its presence in most export-oriented cities in the country, the volume of trade
finance business ACBL is one of the highest in Pakistan. That is why most of the
companies prefer banking with us. To support the growth of our business partners'
ventures, we offer them a wide range of services:
 Documentary Collection
 Import Letter of Credit
 Export Letter of Credit
 Guarantees
 Bill Discounting
Pre-shipment and Post-shipment Financing.
Foreign Exchange Department works like the general bank departments with the
difference that it deals in foreign currency. This department deals with the following:-
 Import
 Export
 Foreign Currency Accounts
 Foreign Remittance
 Submission of Monthly Reports to SBP
IMPORT
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The international trade transaction, in which one country buys goods from other country,
is called import.
The import trade in Pakistan is governed by import and export Act of 1950. Previously,
the regulating body of imports was controller of Import and Export. But this function has
been shifted to Export Promotion Bureau.
Foreign Exchange Departments of all banks are restricted to word under the rules and
regulations of government.
Import License and Registration:

The individuals and firms who desire to import goods from the foreign countries are
required to obtain import license. Import licenses are a type of artificial restraint on the
import trade of a country. To acquire import license, the importer has to submit
applications to the licensing authority. The importers can only get their merchandize
cleared from the custom authorities if they have the import license duly issued in their
names. The import licenses issued by the Import Trade Controller are required to be
registered with the State Bank of Pakistan.
Contract of sale:
After getting the license, the importer then negotiates with the
exporter. When they reach to an agreement on all terms of sale, they
sign a contract. Thus contract includes all information of terms and
condition of sale.
Letter of credit:
Foreign trade payment problems are mainly solved by a letter of credit. A letter of
credit is issued by the importer’s bank. If guarantees payment to the exporter up to
specified amount of money provided the terms and conditions laid down the L/C are
fulfilled.
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A letter of credit is a commitment on the part of buyer’s bank to pay or accept draft
drawn upon it, provided drafts do not exceed a specified amount.
A letter of credit thus is a
 Written undertaking by an importer’s bank to exporter’s bank.
 That it will pay or accept draft drawn upon it up to a stated amount with a
specified time.
 The payment will only be made to the exporter if he compliers with the terms of
credit.
Parties to a letter of credit:

There are four parties involved in letter of credit.
 Account party: The buyer or the importer on whose account and request the
letter of credit is opened is known as account party or opener.
 Issuing bank: The bank which issues or opens a letter of credit at the request
of importer is called issuing bank.
 Exporter or seller: The seller or the party in whose favour L/C is drawn is the
exporter. He is also called beneficiary.
 Negotiating bank: The paying bank in the exporter’s country, on which the
draft is drawn, is called negotiating bank or paying bank.
Opening of letter of credit:

The main steps involved in the opening of the letter of creditor as follows:
Application for letter of credit:

The importer will request his own bank or any other bank, which deals in foreign trade
transactions to issue a letter of credit in favour of the exporter. He will prepare an
application on the prescribed form available from the bank. The information, which are
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supplied in the application are based on the contract of sale and include only the
important feature of contract, such as value of merchandise, port of shipment, documents
to be presented, port of unloading, brief description of goods, import license etc.
Scrutiny of application:
Before issuing a letter of credit, the bank will scrutinize whether the importer is of good
financial standing, possesses the import license issued by import control. Authorities, the
amount available covers the letter of credit applied for, market demand of goods,
collateral offered to cover the credit etc
Cash margin:
The bank asks the importer to deposit cash or securities with the bank. The proper margin
of cash or securities to be deposited is decided by the bank depending upon the credit
worthiness of the importer.
Issuance of the letter of credit:

The importer bank after being fully satisfied will issue a letter of credit in favor of the
exporter. The L/C may be sent directly to the exporter or the advising bank in the
exporter’s country. In such a case, the advising bank will inform the exporter about
opening a letter of credit.
Shipment of goods:
When the exporter receives L/C, he examines it to ensure that it conforms to the terms of
contract of sales. He then shifts the goods and presents all required documents along with
the bill to negotiating bank.
Role of negotiating bank:

The negotiating bank after receiving all the documents and the bill from the exporter will
scrutinize them whether these conform to the terms of letter of credit. If the documents of
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title accompanying the bill are in order, these will be sent to the importers bank for
payment.
Liability of the issuing bank:

On receipt of documents and the bill, the issuing bank will examine them. If the
documents on the face appear to be in order, the payment would be released by the bank.
In case any defect is found in the documents and the draft is honored by the issuing bank
the importer can claim damages on the issuing bank. The issuing bank is only
accountable for the completeness of documents, not to see whether goods conform to the
contract of sale.
Payment by importer to the bank:

First the importer pays all his obligations the bank then bank releases the documents. In
case of sight draft, the importer’s bank pays the amount on the same day charging the
importing customer’s account. In case of a time draft, the importer discharges his
obligations to the accepting bank on or before the maturity date of acceptance. The
accepting bank will then release all the shipping documents to the importer.
Payment to the exporter:

The exporter can obtain payment from the negotiating bank by discounting the draft
(L/C) immediately after shipping the goods and obtaining shipping documents.
EXPORT SECTION
The international trade transaction in which one country sells its goods to other country is
called Export.
The controlling body of export in Pakistan is Export Promotion Bureau, it gives different
incentives to the businessmen for enhancing the exports and reducing the Balance of
payment deficit. It restricts the export of some goods and reinforces export of other.
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Export section is another section of Trade Services Department. If any person wants to
sell his or her products in the foreign countries, he can do all that with the help of export
section of the bank. This department is responsible for the export procedures and
Documentation. This department handles export documents complying with rules and
regulations prescribed by the State Bank of Pakistan. These rules and regulations are
briefly described as under.
 He must all in to sale contract with the importer.
 He must be having account with the bank.
 He must have registered himself with CCI&E.
 He must have export license from EPB.
 He must have income tax certificate that would be only for export purpose.
 He is not allowed to export to those countries for which Govt. has restrictions for
foreign trade.
 Full value of goods exported from Pakistan must be declared to custom
authorities.
Documents Required For Exports

Normally following documents are required by the importer that the exporter must submit
to the negotiating bank with the shipment documents.
1. Invoices:
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The invoice form is needed along with the export documents which are sent to the
importers bank. In the invoice form different information is provided regarding the goods
to be shipped. It contains the amount, rate, and weight, description, sending and receiving
parties’ names.
2. Bank Covering Letter

This covering letter is very important letter with the export documents, which are sent to
the importers bank. The exporter’s bank provides this letter. It contains all the
information about parties’ names and addresses, amount, tenor, date, goods, enclosures
and terms & conditions.
3. Shipping Documents
The shipping document includes the buyers and buyer’s bank addresses, amount, tenor,
shipping source and destination.
4. Bill of Exchange
The bill of exchange is the negotiable instrument for the payments. This is also very
important to attach with.
5. Packing List
The packing list is also attached with the documents of export, which contains the
information about the packing of goods being exported.
6. Bill of Lading
The shipping company issues bill of lading. It means that the goods have been shipped
and that goods are in the custody of the master of the ship. In the bill of lading all
Information regarding the goods shipped is give. It also indicates that payment has been
paid.
7. Insurance
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The insurance of the goods sent for exports should also be maintained and attached with
the other documents.
8. Letter of Credit
The letter of credit issued by the importer’s bank is also sent to the importer’s bank after
the review and acceptance.
9. Export Form
This is just like the import form. It is issued by the exporter’s bank, which contains the
information about goods, quality, invoices, port, consignee, tenor, consignor and mode of
shipment.
Foreign bill purchased (FBP):

Following requirements must be fulfilled before the purchase of Foreign Export
Bills. Exporter should be account holder of the bank. Bank issues the Form-E. Form-E
should be filled correctly and then bank authenticates the E-Form. Exporter goes to the
custom authorities for custom clearance. Shipping Company issues Bill of Lading or
Airway Bill. Exporter should bring other documents like certificates of Origin,
commercial invoice, packing list etc. Bank scrutinizes the documents.
After fulfilling these requirements, bank purchases the export bill and makes
payment for the value of goods in Pak Rupee to the Exporter.
Lodgement:
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“Lodgement means making the payment to exporter by bank against the
purchase of bill. Two types of rates are used in evaluating the amount:”
OD Buying rate/At sight rate:

It is the rate of export bill, payment of which is to be received within 12 days
from the date of lodgement.
Usance rate:
It is the rate payment of which is to be made at a future date, normally
within 30, 60, 90, 120, 150, or 180 days.
Realization:
Realization means receiving the payment from the foreign bank for the export of
goods.
Other activities:
In addition to Export and Import, there are also other activities performed in
Foreign Exchange Department.
1. Foreign currency accounts:

A depositor can open account in US Dollar, Pond, Japanese Yen and Euro with
nominated branches. For opening of account a Form is provided to the person/party,
introduction of the new account holder or by the Officer of the Bank. Procedure of
opening foreign currency accounts is same as other accounts. No Zakat is deducted on
these accounts, no income tax deductions, no wealth tax deduction will be there, these
incentives reinforce and motivate the people to invest in foreign currency accounts rather
to keep foreign currency idle.
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2. Foreign remittance:
Bank also operates in Foreign Currency accounts. In accordance with instructions of SBP,
foreign currency accounts are opened in these currencies: US Dollar, Pond, Japanese Yen,
and Euro. Funds are transferred abroad by Foreign Telegraphic Transfer Swift MT-100 is
used for this transfer. Askari Commercial Bank has its agency arrangements in those
countries, where its own branches are not established. Its agency arrangements with City
Bank, American Express, ABN Amro, Standard Chartered Bank.
Submission of monthly returns:

It includes reporting of Form-M and Form-E to SBP.
Reporting of Form-E:
Every Exporter is required to submit a declaration of custom authorities for goods
exported. This declaration is submitted on prescribed Form-E in quadruplicate, which is
certified by authorized dealer. Four copies of Form-E are maintained. Form-E is reported
to SBP at the end of the month, in which the amount is realized. There is a prescribed
Performa used for the reporting of Form-E. It includes the reporting period, currency,
Serial No. of Form-E, amount, Code No. of country and commodity.
Reporting of Form-M:
Every foreign bank deducts some charges form the value of goods. It is for
miscellaneous purposes like foreign bank charges or foreign agent commission. Form-M
is used to declare this outflow of foreign currency. At the end of the month of realization
of the amount, Form-M is reported. It includes the list of Serial No. amount and purposes
of every Form-M.
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REFINANCING SECTION
Refinancing is the credit facility for the exporters provided by the Govt. at lower rate of
interest, just to boost the exports in the country. It was started in early 70’s. The interest
rates are always changing in this facility. The state bank of Pakistan charges 8% and then
bank will charge 10% from the customers. For banks this is free source of income
because in this way fund of banks are not used.
Refinancing is further divided into two parts.
 Finance against Packing Credit (FAPC).

 Finance against Foreign Bills (FAFB).
1. FAPC Loan
This loan is on the basis of export contract. The shipment amount should be equal to the
loan amount. It is approved within 48 hours or otherwise disapproved. If approved, the
amount is credited in the account of the party. This is also called pre-shipment loan.
2. FAFB Loan
This loan is under L.C. It involves the bank risk line because of the transactions
between the banks. This loan is given against security and this is called post-shipment
loan.
CREDIT DEPARTMENT
Credit department is also one of the most important departments of the bank. It is called
the mind of the bank. This department controls the affairs of bank related with the
finances or loans.
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The credit department of Emirates Bank International also performs the functions relating
to the credit administration and credit accounts. It performs following functions.
Products & Services of Credit Dept

Our Credit and Marketing Department aims at providing complete financial solutions for
its customers. Skilled professionals deliver contemporary corporate banking services in a
personal manner. Committed to maintaining stable and long term relationships with our
customers, Askari Commercial Bank combines personalized services with technological
capabilities to deliver sophisticated banking solutions.
Products and Services offered include:

 Trade finance
 Short Term Working Capital Finance
 Local Currency Syndication Finance (Foreign Currency Syndication can also
be arranged)
 Medium Term /Long Term Finance
 Term Finance Certificates
 Offshore Loans
 Advisory Role (Balance Sheet Restructuring).
OBJECTIVES OF LENDING
In the modern economics, more than 90% business concern raises their funds from
various financial institutions to meet their multifold transaction. Actually it very difficult
for the modern businessman to run his business on a huge scale solely. He has to float his
shares to the public or knock the doors of financial institutions, for example the banks.
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The most easy way to make fund available to seek assistance by such agencies including
banks which have got surplus funds and will come to the assistance of producing units,
distributing units and exchanging units. In this way of lending, the banks earn the profits
in term of interest and mark-up.
Selection of Borrowers
The selection of a reasonable and trustworthy borrower is complicated and at the same
time very sensitive task which requires decision-making power from the bank employees.
In the words of the manager of a branch of Askari Commercial Bank.
“Good selection of borrowers does the half task in the profit of the Bank.”
So banks do not throw the money away but every application is tested carefully before
being sanctioned. It is the policy of Askari Bank to provide a outline to all of its branches
and on the basis on those requirements the bank select the borrower.
Following are the main points, which are considered before lending.
1. Character
The bank inquires the character of the borrower in every aspect. Because this is the right
way to judge his dealing and business tactics. When the bank get sure that this person has
good relationship with us and in the business market, they give him the facility of credit.
2. Capacity
This factor is related with the ability of the borrower to manage his business successfully.
So this is checked that either they have necessary management, accounting and technical
skills and the degree of experience in the particular line of business for which the finance
is required. This ability of the customer can be judge from the trading results, turnover
ratios, and collection of receivables and management of accounts payables.
3. Capital
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The proportions of the borrower’s own resources to the account of finance requested are
the next point to receive the branch manager’s attention. This is checked that both the
amount of loan required by the person is equal to his resources available in his business
and will he be able to cover them out of his resources.
4. Cash Flows
The source of repayment should be ascertained at the beginning. For this purpose
the financial worth of the customer is checked that either he is able to repay the loan by
the sale of his inventory or from realization of the accounts receivables, then the loan is
sanctioned.
5. Collaterals
Security is to be correctly looked upon as the second source of repayment. As we
have discussed that this is one of the most critical decisions for the credit management to
sanction the loan that’s why they require any collateral by the customer for the security of
the loan. In case the borrower is unable to pay his debts then the amount can be recovered
by selling the collaterals.
6. Purpose
Another important factor, which is taken into the consideration by the bank, is that for
what purpose the loan is being sanctioned. If the customer wants to get the loan for
business purpose then he is given the preference over when he wants to get loan for
personal use.
7. Period
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It is the policy of every lender that first the period of the loan is decided. Normally the
short-term loans are preferred to be sanctioned because of the lesser risks available.
ACBL Bank has its own policy of lending. It only sanction the loans for short term period
not for the long term period, normally these are less than or equal to one year.
CLASSIFICATION OF ADVANCES
The loans and advances given by the bank are classified into two parts.
 Unsecured or Clean Advances.

 Secured Advances.
1. Unsecured or Clean Advances

An unsecured advance is made against the personal reputation of the borrower with the
bank. Normally these advances are given to the regular customers of the bank and have
maintained a good dealing with the bank for many years.
The policy of Askari Commercial Bank is to avoid such clean advances because of the
unsecured nature.
If the party is unable to repay the loan then it becomes very difficult for the bank to
collect the loan. That’s why the bank uses this policy just to give this type of loan only to
the exceptional customers.
2. Secured Advances
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The word security means any thing given to protect the repayment of an advance. This is
the policy of every financial institution to provide the secured loans to the customers. So
secured loans are those, which are backed by the tangible security. A tangible is that
which has a physical existence for example
 Land and Building.

 Stocks.
 Share certificates
 NIT Units.
 Security of Cash in his Account.
TYPES OF ADVANCES
ACBL normally classify the advances into the following three major types.
 Agricultural Advances.
 Commercial Advances.
 Industrial Advances.
1. Agricultural Advances
Agricultural advances are available for each of the following spouse.
2. Farm Credit
These credits are provided for purchase of inputs development of agricultural land.
Following are two main classes of farm credit.
3. Production Finance
This loan is provided to farmers for purchase of inputs like seeds, fertilizers and
pesticides.
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4. Development Finance
This loan is provided for the development of agricultural land like purchase of tractors,
for tube well and for watercourse improvements etc.
The basic purpose of these is to boost up the small agricultural industry to provide the
opportunities of earning in agricultural sector.
Non Farm Credit

Following is the different type of small agriculture industry for which this loan is granted.
 Live Stock.
 Fish Form
 Dairy Form.
 Forestry.
 Sericulture
2. Commercial Advances
These are the advances which are given to the small business men, who want to
start the business on a small scale. Such loans or advances are not of large amounts but of
small amounts.
3. Industrial Advances
These advances are sanctioned to the industrial persons. The industrialists who
are running their businesses on a large scale can get the facility of these advances. These
advances are in large amounts required for the import and exports of the goods and
services. These advances are given on the credibility of the parties.
Credit Administration
When some one wants to obtain the loan and his loan is approved, the work of
credit administrator starts. He prepares the documentations relating to the advances of the
account holders and makes the further processing. He also prepares all the related
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reporting and then sends it to the head office. He also maintains the documents, which are
required by the state bank of Pakistan. The filing of all the legal cases is also maintained
by the credit administration. After that the officers maintain the credit accounts and
ledgers of the customers.
CREDIT CARD DEPARTMENT
Miss Ayesha Imtiaz deals this department. He told me that the bank is authorized to issue
the credit card of two companies, which are under bank of America.
 Master Card
 Visa Card
ISSUING CHARGES
When the card is given to cardholder, there are certain fee charges to by the bank, which
is different for different cards.
. ISSUING PROCEDURE
Credit card is issued to three types of parties.
 Professional (Govt & private officers)
 Business man
 Landlord.
PROFESSIONALS
For professionals bank require
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 Authorized letter from the concerned organization in which he works. This letter
shows all particulars about the person, on the basis of these particulars; bank open on
account and some feasible amount is required.
BUSINESS MAN
In the case of businessman bank need
 Balance sheet of businessman.
 Type of business.
 Turnover of 5 years.
And then when it is sured that the business has the ability to cover the expenses of credit
card and to pay it at any time, the bank issues the credit card.
Land Lord
In the case, the person is totally new, and the bank doesn’t know anything about him. For
this bank need an account having the amount over and above the credit card limit of that
credit card. Usually, there is more chance of default in this case; so, the bank avoids
issuing credit card to that person.
PAYMENT PROCEDURE
The cardholder should have to pay all the amounts what he has consumed. But in order to
facilitate the cardholder, 5% is the minimum limit that the bank requires and that should
be paid monthly. If you paid only 5% then 2% interests will be charged on remaining
amount and it is added into the next month payments.
If that 5% is not paid then Rs. 100 are the additional charges charged to the next month
payment apart form the 2% interest.
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LEARNING AS A STUDENT INTERN

There are following learning points for me in the bank.
First week
Duties
In my first week in Askari Commercial Bank commercial bank, they assigned me work
in Account Opening Department.Mr Bilal Mehmood trained me very nicely and I learned
lot of things in this department. He told me different accounts names and their codes.
How to open the account.
 New Computerized national identity card is must for opening of new account.
 For current account 10,000 and for saving 5,000 are required.
What are the necessary requirements of different accounts to be opened?
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Other activities are
 How to fill the deposit Slip if anyone wants to transfer cash in the account or online
transfer
 How to fill the different accounts Form
 How to fill the voucher for issuing of the Cheque Book for the first time
 How to fill the requisition slip for the second time issuance
 How to issue the Cheque Book
 How to enter it in the register
 What are the procedures for the ATM card
Accomplishments
I m fully trained in this job how to open the different accounts ,how to issue the
cheque book and enter it in the register and how to transfer the amount through cash or
cheque to an account and how to issue a Debit Card.
Second Week
In the Second Week they assigned me work in Clearing Department .Mr Jibran trained
me very nicely and I learned lot of things in this department.
Duties
There are two types of clearing.
1. I/W (Inward clearing)
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2. O/W (Outward clearing)
In this week I entered the cheques lodged for inward clearing in clearing register as their
cheque number account holder name cheque amount and bank name amount to be paid.
Secondly in this week I prepared (O/W) clearing for next day. Same as entered cheque
number account holder name amount and Bank name.
In this week I also entered cheque return in cheque return register and put cheque return
slip on cheque.
Accomplishments
I am full trained now in this particular job. How to fill cheque return slip? How to
enter in I/W, O/W clearing register.
Third Week
Duties
In third week I perform following tasks relating to the banking system.
1. IBC (Inter bills clearing)
2. OBC
In this week I worked for IBC (Inter bills clearing). IBC mean cheques lodged for
clearing From other city. I entered these cheques in IBC register if it is ACBL cheque
then Mr. Jibran cleared or return this cheque and if it is cheque of other bank then it is
again entered in O/W clearing registered and lodged next day for clearing.
Secondly in this week I prepared OBC, filling of OBC slip as cheque number their
amount OBC number and branch name.
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Accomplishments
In this week I repeatedly performed this job and now I am fully trained in this job.
Fourth Week
In Fourth week they assign me work for Remittances Demand draft and Pay order
preparation.
Duties
Demand draft is for payment outside of city and pay order for local payment. It is a
secure source of payment.
There are no charges for Pay order while other banks charge for this service so it is an
advantage going to ACBL bank to attract customers.
Accomplishments
In this week I repeatedly perform the jobs and I am fully trained in such type of
operations i.e. to make the DD, Pay order and mark the Charges if Customer is not
account holder of the Bank then 255 Rs commission of the Bank.
Fifth Week
Duties
In this week I worked in Accounts and Cash Department.
In fifth week they assign me work in cash department.
In cash department I learned about Receipts and Payments and about how to receipt cash
and how to enter it in computer.
In Accounts Department how to sort the Vouchers and preparation of Salaries
Accomplishments
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I am fully trained in this job i.e. to check that all the vouchers are scrutinized and
matched with the activity
Sixth Week
Duties
In Sixth Week I worked in Foreign Exchange and in Credit Department.
They told me brief introduction about import and Export. Necessary Requirement about
the Letter of Credit .What Documents are required for Import and Export
Secondly in this week I learned about Advances from credit manager Mr. Ateeq. What
are requirements for loan? It is a procedure that takes many days
Accomplishments:
I in this week I m fully Trained in these jobs
Problems faced by branch

During my internship at this particular branch of ACBL, there are following problems I
have found which are directly affect on efficiency and performance of the bank. There
problems are also called as an internal problems. So these are discussing below
1. Lack of communication among the employees

During the period of my internship I found this problem as a biggest problem that, they
are not very effective in communication between themselves. They do not share the
experience with each other and do not care the other employee. If one employee has a
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problem, then he asked to other, but he does not give clear solution to that problems.
They are shows the facial expressions against each other.They are talk against each other
in front of me. So finally it is very needy for a public services organization to keep
atmosphere friendly among the management and employees.
2. Low Efficiency of employees

Efficiency of employees is also low at this branch. For example Mr. Assad Bhutta
manager has 3 years experience at ACBL but he is not professional. Where he assign the
result is zero. During my internship no body was satisfied from his performance.
Sometimes he has done wrongly postings.
3. Lack of computing skills:

Computing skills are also low, some executive are very efficient in computing skills but
some are not totally aware from this system. For example ATM machine at this branch is
only handled to Mr. Naeem Shehzad manager. When operation manager is on leave
branch faces problems about ATM machine.
4. Misuse of resources
Resource are very needy, so there must be avoid to misuse the resources but in this
branch it is reverse case, there is very wrong use of the resources, employees does not
take care of resources and not used them in right direction. For example every person
misuse telephone service even guards they use it for personal matters.
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CONCLUSION
I observed the Askari Commercial bank a financially sound bank. Its profits are
increasingly year-by-year. Its staff is very good and sincere with the bank. A Sheikh has
made significant progress in building and strengthening both the corporate and retail
banking sectors in Pakistan.
Askari Commercial Bank views specialization and service excellence as the cornerstone
of its strategy. The people at bank realize that innovation; creativity, reliability,
customized, services and their execution are they key ingredients for their future growth.
Revenues from these activities have started yielding dividends and they expect significant
growth. They are aware that they have stepped into the 21 st century and they must meet
its challenges by acquiring the highest level of the technology. They will thus be
accelerating their technological advance to enable them to distribute their products and
services through most efficient and high tech means. They say that they will continue to
invest in the modern tools and substantial allocation to resources will be made to achieve
this objective during the current year. Online banking have been started and the
introduction of ATM at strategic locations have been firmed up.
RECOMMENDATIONS
This is the fact that in this universe nothing is perfect. In every field of life there are some
pluses and minuses. But the best institutions are those, which learn from the changing
environment and competition. So it is necessary for them to keep them update with the
changing environment.
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Although ACBL Lahore Branch is one of the good branches in Lahore but there are few
points that should be improved for more perfection.
 Marketing department is very active but the feedback or the follow up of the
customers should be improved.
 As every thing is computerized in ACBL Lahore, the persons should be
properly trained in the computer systems.
 As we have discussed that this is one of the busy branches in Lahore market,
its building is not as per the requirements of the branch. So the building
should be further expanded and there should be more space for the sitting
arrangements of the customers.

The ATM service should be provided 24 hours. Because customers feel upset when most
of the times the machine is out of order.
 The staff should be decreased in Foreign exchange Dept.., Credit dept.
because the building under operation is in adequate for such a large staff.
 Under no circumstances cheque book should be given to the customer if the
account formalities are incomplete
 Cheques, which are drawn on Askari Commercial Bank Branch and returned
unpaid in clearing, are not reflected in the statement of account of the
Customers. This cheque must be reflected in the accounts so that credibility of

the customers may be assessed.
 Audit should be held internally, rather there should be an audit department in
the branches to make audit on daily basis. This can become so, helpful as a
different banks are having this department of their own
 . When giving the loan, the Bank must carefully analyze the past six month’s
transaction history of the borrower. This will help in the judgment of the
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dealing behavior and financial status of the client. In most cases, this thing is
not properly done and this is the major reason for the default of many clients.
 The Bank should try to give more loans to the small borrowers as the past
history shows that most of the loans given to the corporate borrowers have
converted into bad debts
 Evening banking should also be started in this branch.
References:
Web Sites:
 Askaricards.com/default.asp
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 Dawn.com
 Pakistaneconomist.com
 Sbp.org.pk/index.asp
 En.wikipedia.org/w/index.php
 www.askaribank.com/index.php
 www.sbp.org.net.pk
 scribd.com
 http://www.askaribank.com.pk/Reports/Askari
%20Financials%202008.pdf
Books
 Financial Statement Analysis
(Charles H. Gibson)
 HR & Personnel Management
(Werther)
 Annual report of askari bank ltd.
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Annexure
 Account opening form
 Deposit slips
 OBC
 Bundle cover
 Brochures
 Vouchers
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Internship Report On Askari Bank

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INTERNSHIP REPORT

Internship report on Askari Bank Ltd

Submittd by:Ailiya Rizvi

Department Of Management Sciences

Internship report on Askari Bank Ltd

Submittd by:Ailiya Rizvi

Department Of Management Sciences

Internship report on Askari Bank Ltd

Submitted by Supervisor Registrar

Ailiya Rizvi Miss Tallat Shahid Shaista vine

An Internship report submitted to the department of Management

The main purpose of the internship is to fulfill the academic requirements of

ACBL was incorporated in Pakistan on October 9, 1991. It started

 Vision Statement/ Mission statement

History and Background

Awards and Achievements:

The mission statement of the bank is:

Code of Business Principles:

 To provide strategic solutions to strengthen weak areas and to counter threats to

Code of Ethics and Conduct:

 Employees must commit to the continued development of the service culture in

Truthfulness and Transparency govern our customer relationships in determining the

Own affairs or other interests.

 Employees must avoid circumstances in which their personal interest conflicts, or

Market standing of Askari bank:

 Policy Formation process

 Mr. Ali Noormahomed Rattansey, FCA

Chief financial officer:

Mr. Shaharyar Ahmad & Chief

Brig (R) Muhammad

Brig (R) Asmat Ullah

Brig (R) Muhammad

Brig (R) Asmat Ullah Khan Niazi Chairman

Rizvi, Isa, Afridi & Angell

Mr. Nazimuddin A. Chaturbhai:

Malik Asad Ali:

Mr. Tahir Aziz:

Bachelors' in Computer Science and Physics from Grinnell College, USA.

Senior Executive Vice

Clerical Staf Non-Clerical Staf

1. Creation of new product and services.

Following are the marketing policies of the ACBL.

1. Direct contact with customers.

COMPANY MARKETING MIX

Marketing mix is defined as:

blends to produce in response to wants in the target market.”‘

The various elements of marketing mix are as follows;

Four P’s Four C’s

Now let us discuss the marketing mix of ASKARI COMMERCIAL BANK

meet their varying needs.

 Intangibility, inseparability and high perish ability are a significant product

 Due to intangibility of products and in the absence of physical features the

Consumer banking service:

1. Askari Bank’s Personal Finance

 Loan amount from Rs.50,000 to 500,000

 Fixed monthly repayment

 Low rates that never change

 Shortest processing time

 Funds may be obtained at any ACBL branch

 And certainly unmatched service quality

2. Askari Car Financing

ASKARI BANK'S Cash Management Services