REPORT- (MANAGEMENT)

Created by.

Abudl Moeed Abid

SUBMITTED TO:

DEPARTMENT OF MANAGEMENT SCIENCES

VIRTUAL UNIVERSITY OF PAKISTAN

 EXECUTIVE SUMMARY

Askari Bank Pakistan was incorporated in October 9th, 1991, as a Public Limited
Company. It commenced operations on April 1st, 1992, and is principally engaged in the
business of banking as defined in the Banking Companies Ordinance, 1962. Askari Bank
has expanded into a network of 226 branches / sub-branches, including 31 devoted
Islamic banking branches, and a wholesale bank branch in Bahrain. A shared network of
4,713 online ATMs covering all major cities in Pakistan supports the delivery channel for
customer service. As at December 31st, 2009, the Bank had equity of Rs. 14.95 Billion
and total assets of Rs. 254.33 Billion, with 984,485 banking customers, serviced by 6,159
employees.

In this report I have provided the history of banking sector in which the Askari Bank
Pakistan operates, next I have given the brief history of Askari bank and have explained
its nature, business volume, various departments and products in detail. After that I have
provided the Organogram of both the Askari Bank Pakistan and Askari Bank Bahawalpur
branch and have given comments on it. This is followed by the detailed description of the
departments in the Askari Bank Bahawalpur. Later I have stated the key management
functions (POLC) implementation in the overall Bank level, Critical Analysis which is
based on the branch level, SWOT Analysis and Conclusion which is done keeping in
view both the branch and overall Bank level. Next I have provided recommendations in
my view for the weaknesses and threats of the bank.
 TABLE OF CONTENTS

BRIEF INTRODUCTION OF BANKING SECTOR IN PAKISTAN------------------------------------------------------------- 7

OVERVIEW OF THE ORGANIZATION------------------------------------------------------------------------------------ 11

A. BRIEF HISTORY ---------------------------------------------------------------------------------------------------- 11

i. Corporate Philosophy ---------------------------------------------------------------------------------- 11

ii. Corporate Information -------------------------------------------------------------------------------- 14

B. NATURE OF ASKARI BANK ---------------------------------------------------------------------------------------- 15

C. BUSINESS VOLUME ----------------------------------------------------------------------------------------------- 16

D. PRODUCT LINES --------------------------------------------------------------------------------------------------- 16

i. Consumer Banking Services ---------------------------------------------------------------------------- 16

ii. Islamic Banking Services ------------------------------------------------------------------------------- 21

iii. Agriculture Finance Solution ------------------------------------------------------------------------- 22

E. COMPETITORS ----------------------------------------------------------------------------------------------------- 26

ORGANIZATIONAL STRUCTURE ----------------------------------------------------------------------------------------- 27

A. ORGANOGRAM OF ASKARI BANK LTD --------------------------------------------------------------------------- 27

ORGANOGRAM OF ASKARI BANK LIMITED BAHAWALPUR --------------------------------------------- 28

B. NUMBER OF EMPLOYEES ----------------------------------------------------- Error! Bookmark not defined.

C. MAIN OFFICES ---------------------------------------------------------------------------------------------------- 29

D. INTRODUCTION OF ALL DEPARTMENTS-------------------------------------------------------------------------- 30

E. COMMENTS ON ASKARI BANKS STRUCTURE -------------------------------------------------------------------- 35

A. BRIEF INTRODUCTION OF ASKARI BANK LIMITED BAHAWALPUR----------------------------------------------- 36

Vision ---------------------------------------------------------------------------------------------------------- 36

Mission -------------------------------------------------------------------------------------------------------- 36
 Corporate Objectives -------------------------------------------------------------------------------------- 36

A. DETAILED DESCRIPTION OF DEPARTMENTS ------------------------------------------------------------ 37

Accounts Opening Department ---------------------------------------------------------------------------- 37

Remittance Department ------------------------------------------------------------------------------------- 41

Clearing Department ----------------------------------------------------------------------------------------- 44

Accounts Department ---------------------------------------------------------------------------------------- 44

Customer Dealing Desk -------------------------------------------------------------------------------------- 45

Foreign Trade Department ---------------------------------------------------------------------------------- 45

FUNCTIONS OF MANAGEMENT----------------------------------------------------------------------------------------- 46

A. PLANNING---------------------------------------------------------------------------------------------------------- 46

Decision Making Process ------------------------------------------------------------------------------ 47

Askari Banks Current Strategy ---------------------------------------------------------------------- 47

B. ORGANIZING ------------------------------------------------------------------------------------------------------- 48

Organizational Design---------------------------------------------------------------------------------- 48

Departmentalization -------------------------------------------------------------------------------- 48

Chain of Command ---------------------------------------------------------------------------------- 49

Span of Control --------------------------------------------------------------------------------------- 49

Formalization ----------------------------------------------------------------------------------------- 49

Centralization/Decentralization ------------------------------------------------------------------ 50

Work Specialization --------------------------------------------------------------------------------- 50

Managing Change and Innovation ------------------------------------------------------------------ 50

Managing IT and Communication------------------------------------------------------------------- 50

C. LEADING --------------------------------------------------------------------------------------------------------- 51

Leadership Style ----------------------------------------------------------------------------------------- 51

Power and Politics -------------------------------------------------------------------------------------- 52

 Motivation ------------------------------------------------------------------------------------------------ 52

D. CONTROLLING ----------------------------------------------------------------------------------------------------- 53

Controlling Approach ---------------------------------------------------------------------------------- 53

Controlling Standards ---------------------------------------------------------------------------------- 54

Controlling of Operations ----------------------------------------------------------------------------- 54

Controlling of Performance -------------------------------------------------------------------------- 55

Controlling of Information/Knowledge ------------------------------------------------------------ 55

CRITICAL ANALYSIS ------------------------------------------------------------------------------------------------------ 57

SWOT ANALYSIS -------------------------------------------------------------------------------------------------------- 59

CONCLUSION--------------------------------------------------------------------------ERROR! BOOKMARK NOT DEFINED.

RECOMMENDATIONS ----------------------------------------------------------------ERROR! BOOKMARK NOT DEFINED.

REFERENCE & SOURCES USED-------------------------------------------------------ERROR! BOOKMARK NOT DEFINED.

ANNEXES ----------------------------------------------------------------------------------------------------------------- 64
 TABLES & FIGURES

Figure 1: Organogram Askari Bank Limited ................................................................................... 27

Figure 2: Organogram Askari Bank Ltd Bahawalpur...................................................................... 28

Figure 3: Types of Accounts........................................................................................................... 40

Figure 4: Instruments of Bills and Remittance Department.......................................................... 42

Figure 5: Mail Transfer .................................................................................................................. 43

Figure 6: Management Functions.................................................................................................. 46

Figure 7: SWOT Analysis ................................................................................................................ 59

Table 1: Number of Employees ......................................................... Error! Bookmark not defined.

 BRIEF INTRODUCTION OF BANKING SECTOR IN
PAKISTAN

Banks play a pivotal role in a countrys economy. The banks in Pakistan comprise of
almost 95% of the total financial sector. There is a wide range of banking institutions
from central bank to commercial banks to the specialized agencies that provide services
to specific segment.

Pakistan started off without any meritorious banking system in the year 1947 but it got an
exceptional growth in the first two decades. By 1970, banking sector in Pakistan
managed to acquire a prosperous position. In 1990s there came a wave of privatization
of financial institutions. The government owns National Bank of Pakistan but 80% of
Bank assets lie in the private sector. The total banking assets have mounted to 3 folds
over the last 5 years & the industry size has reached almost 4 trillions which contribute to
GDP of 59%. Pakistan stands second among South Asian countries for its Performance
and Efficiency by the World Bank. In Pakistan, currently there is a trend of mergers and
acquisitions in the banking industry.

The banking sector in Pakistan consists of:

Commercial Banks

Development Finance Institutions (DFIs)

Microfinance Banks

Non-Banking Finance Companies (NBFCs)

o Leasing Companies

o Investment Banks
 o Discount Houses

o Housing Finance Companies

o Venture Capital Companies

o Mutual Funds

Modarbas

Stock Exchange

Insurance Companies

Under the prevailing legislative constitution the supervisory responsibilities in case of

Banks, DFIs and MFBs fall within legal realm of the State Bank of Pakistan (the central
bank of the country that has been commended with the responsibility for an ongoing
effective supervision of the banking sector).

At present there are 41 scheduled banks, 6 DFIs, 2 MFBs, commercial banks which
comprise of 3 nationalized banks, 3 privatized bank, 15 private sector banks, 14 foreign
banks, 2 provincial scheduled banks and 4 specialized banks operating in Pakistan. Few
of them are listed below:

Foreign Banks

o RBS

o CITI Bank

o Deutsche Bank

o Standard Chartered Bank

 Private Banks

o Askari Bank Ltd

o Bank Al-Falah Ltd

o Bank Al-Habib Ltd

o PICIC Commercial Bank

o UBL

o MCB

o ABL

Public Commercial Banks

o NBP

o First Women Bank

o The Bank of Punjab

o The Bank of Khyber

Specialized Banks

o Zarai Taraqiati Bank Ltd

o Industrial Development Bank of Pakistan

o Punjab Provincial Cooperative Bank Ltd

The competition is quite high due to the exigent capital sufficiency standard set by the
State Bank of Pakistan to stabilize the banking system. Attracting lucrative customers and
foreign reserves is the only way of survival for the banks.

The banks are enjoying enormous spread by shifting the focus from industrial lending to
consumer goods. The banking environment is in a state of transition, and only those
banks will survive and flourish who will transform any change into an opportunity by
successful execution of change management.
 OVERVIEW OF THE ORGANIZATION

A. BRIEF HISTORY

Askari Bank Pakistan was incorporated in October 9th, 1991, as a Public Limited
Company. It commenced operations on April 1st, 1992, and is principally engaged in the
business of banking as defined in the Banking Companies Ordinance, 1962. The Bank is
listed on Karachi, Lahore and Islamabad Stock Exchanges.

Askari Bank has expanded into a network of 226 branches / sub-branches, including 31
devoted Islamic banking branches, and a wholesale bank branch in Bahrain. A shared
network of 4,713 online ATMs covering all major cities in Pakistan supports the delivery
channel for customer service. As at December 31st, 2009, the Bank had equity of Rs.
14.95 Billion and total assets of Rs. 254.33 Billion, with 984,485 banking customers,
serviced by 6,159 employees.

Askari Investment Management Limited and Askari Securities Limited are subsidiaries of
Askari Bank, engaged in managing mutual funds and shares brokerage, respectively.

i. Corporate Philosophy

OUR CUSTOMERS: Knowing our customer and their needs is the key to our
business success. Our products and services are as diverse as our market
segments. Our client relationship managers are well equipped and well trained to
provide the most efficient and personalized service to the customers. Askari Bank
 is proud of its pioneering role in providing the most modern and technologically
advanced services to its 984,485 relationships.

OUR VALUES: Integrity is the most valued standard in whatever we do. 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. The intrinsic values
which are the corner stones of our corporate behavior are:

o Commitment Customers: Passionate about our customer, delighting

them with the quality of our service

o Integrity Investors: A distinctive investment, delivering outstanding

performance, return and value

o Fairness Regulators: Exemplary compliance, governance and business

ethics

o Teamwork Employees: Caring for our people and helping them grow

o Service Communities: Dedication towards social development and

improvement in quality of life

OUR INVESTORS: We believe that the bottom line of any business is crating
shareholder value. To gain their trust and confidence, we believe in providing our
investors timely, regular and reliable information on our activities, structure,
financial situation and performance.
 OUR REGULATORS: We firmly believe in regulatory discipline and harmony
of our corporate objectives with regulatory framework. Out business
methodologies are designed to ensure compliance with the directives of all our
regulators.

OUR EMPLOYEES: We strongly believe that the interests of the Bank and the
employees are inseparable. At Askari we try to create a we culture where there
is mutual trust and respect of each other. We encourage ownership behavior so
that everyone feels responsible for the performance and reputation of the Bank.
We are committed to develop and enhance each employees skills and capabilities
through extensive in-house and external training programs and job rotations. In
order to ensure meritocracy, our appraisal system is purely performance based.

OUR COMMUNITIES: We fully recognize our corporate social responsibility

and our contributions to different areas of the social sector are aimed to help
improve the quality of life in our Country.
 ii. Corporate Information

Board of Directors Audit Committee

Lt. Gen. Javed Zia Dr. Bashir Ahmad Khan

Chairman Chairman

Lt. Gen. (R) Imtiaz Hussain Mr. Ali Noormahomed Rattansey, FCA

Maj. Gen. (R) Saeed Ahmed Khan Mr. Tariq Iqbal Khan, FCA

Mr. Zafar Alam Khan Sumbal Company Secretary

Mr. Muhammad Riyazul Haque Mr. M. A. Ghazali Marghoob, FCA

Mr. Shahid Mahmud Chief Financial Officer

Mr. Ali Noormahomed Rattansey, FCA Mr. Saleem Anwar, FCA

Dr. Bashir Ahmad Khan Auditors

Mr. Tariq Iqbal Khan, FCA A. F. Ferguson & Co

Chartered Accountants
Mr. M. R. Mehkari
President & Chief Executive Legal Advisors

Shariah Advisor Rizvi, Isa, Afridi & Angell

Dr. Muhammad Tahir Mansoori Entity Ratings (By PACRA)

Long Term: AA

Short Tem: A1+

B. NATURE OF ASKARI BANK

The Group consists of Askari Bank Limited, the holding company, Askari Investment
Management Limited, a wholly owned subsidiary company and Askari Securities
Limited, a partly owned subsidiary company.

Askari Bank Limited (the Bank) was incorporated in Pakistan on October 09, 1991 as a
Public Limited Company and is listed on the Karachi, Lahore and Islamabad Stock
Exchanges. The registered office of the Bank is situated at AWT Plaza, The Mall,
Rawalpindi. The Bank obtained its business commencement certificate on February 26,
1992 and started operations from April 01, 1992. Army Welfare Trust directly and
indirectly holds a significant portion of the Banks share capital at the year end. The Bank
has 226 branches; 225 in Pakistan and Azad Jammu and Kashmir, including 31 Islamic
Banking branches, 22 sub-branches and a wholesale bank branch in the Kingdom of
Bahrain. The Bank is a scheduled commercial bank and is principally engaged in the
business of banking as defined in the Banking Companies Ordinance, 1962.

Askari Investment Management Limited (AIML) was incorporated in Pakistan on May

30, 2005 as a public limited company. AIML is a Non Banking Finance Company
(NBFC), under license by the Securities and Exchange Commission of Pakistan (SECP)
to undertake asset management and investment advisory services under the Non-Banking
Finance Companies and Notified Entities Regulations, 2007 (NBFC & NE Regulations).
The license was obtained on September 21, 2005. AIML is a wholly owned subsidiary of
the Bank with its registered office in Islamabad. AIML obtained its certificate of
commencement of business on September 22, 2005.

Askari Securities Limited (ASL) was incorporated in Pakistan on October 1, 1999 under
the Companies Ordinance, 1984 as a public limited company and obtained corporate
membership of the Islamabad Stock Exchange on December 24, 1999. The Bank
acquired 74% of Ordinary Shares of ASL on October 1, 2007. The principal activity
includes share brokerage, investment advisory and consultancy services. The registered
office of the Company is situated at AWT Plaza, The Mall, Rawalpindi.

C. BUSINESS VOLUME

In the year 2009, Askari Bank had 1,200,000,000 shares (ordinary shares of Rs. 10 each)
as authorized capital. From which 67,500,000 shares were fully paid in cash and
439,846,635 shares were issued as bonus shares.

The banks objective is to safeguard the Banks ability to continue as a going concern
when managing capital, in order to provide returns for shareholders and benefits for other
stakeholders and to maintain an optimal capital structure to reduce the cost of capital. The
Bank may adjust the amount of dividend paid to shareholders, return capital to
shareholders, issue new shares or sell assets to reduce debt.

D. PRODUCT LINES

i. Consumer Banking Services

ASKARI MAHANA BACHAT ACCOUNT (1+3 YEARS TERM)

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

Earn Rs. 1,000/- 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 dont 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.
 ASKARI ROSHAN MUSTAQBIL DEPOSIT

Askari Roshan Mustaqbil Deposit is 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 the consumer can double
his investment in a time period of ten years. Invest in the form of monthly deposits for
five years and get paid back the same amount for the next five years while receiving
principal amount in full at the end of the tenure.

ASKARI DEPOSIT MULTIPLIER ACCOUNT

Value of initial investment of Rs. 100,000/- will increase to Rs. 265,000/- at maturity!

Askari Deposit Multiplier account is for individual investors whose purpose is long term
savings with high returns. With a tenure of 10 Years and a competitive rate of return on
maturity this account is ideal for investors who wish to start saving for their future today.
 VALUE PLUS DEPOSITS

Askari Value Plus Rupee Deposit Accounts promise greater financial freedom and
security, in an un-matched way. "Value Plus Account" can be opened while enjoying the
flexibility of a normal checking account.

ASKARI CARD

Askari Debit Card means freedom, comfort, convenience and security, so that the
consumer can have retail transactions with complete peace of mind. Askari Debit Card is
the new shopping companion which enhances quality of life by letting the consumer do
shopping, dine at restaurants, pay utility bills, transfer funds, withdraw and deposit cash
through ATM anywhere, anytime.

TRAVELERS CHEQUES
Askari Banks "Rupee Travelers Cheques" eliminate all financial risks while traveling. So
the customers can avoid risk of carrying cash through Askari Bank's Rupee Traveler
Cheques.

SMART CASH

This personal line of credit would be set up with a specified credit limit upto Rs.
500,000/-

PERSONAL FINANCE

Personal Finance is a parameter driven product for catering to the needs of the general
public belonging to different segments. One can avail unlimited opportunities through
Askari Bank's Personal Finance. With unmatched finance features in terms of loan
amount, payback period and most affordable monthly installments, Askari Bank's
Personal Finance makes sure that one gets the most out of his/her loan. Once a good
credit history is established, the door to opportunity opens much wider.

MORTGAGE FINANCE
Askari "Mortgage Finance" offers the convenience of owning a house of choice, while
living in it at its rental value. The installment plan has carefully designed to suit both the
budget & accommodation requirements. It has been designed for enhancing financing
facility initially for employees of corporate companies for purchase/ construction/
renovation of house.

BUSINESS FINANCE

In pursuance of the National objectives to revive the economy of the country, Askari
Bank Ltd is providing loans to small and medium size business enterprises under Askari
Bank's Business Finance Scheme. The goal is to offer a loan, which enables business
community to receive the financing required by them based on their cash flows. The
valued customers of the Bank can enjoy the convenience of getting financing on
attractive terms with the minimum processing turnaround time.
 ii. 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. The objective is to
put in place an efficient banking system supportive to economic justice and welfare of
society in line with Shariah standards.

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.
 iii. Agriculture Finance Solution

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

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

ASKARI KISSAN AGRI FINANCE PROGRAM

The Askari Kissan Agri Finance Program (AKAFP) has been designed to meet ON
FARM / OFF FARM credit requirements of farmers on the most convenient, flexible,
easy terms and conditions. The program features:
 A broad array of credit lines designed to meet farming requirements.
Repay and borrow at your convenience on revolving credit basis at lowest mark-
up rates renewal able after three years.
Convenient repayment terms based on cash flow abilities.
Availability of leased Tractors / Transport without Land / Collateral.
No Hidden Cost.
Availability of interest free package for inputs and tractors etc.
No Pre-adjustment penalties.
Earn prompt payment Bonuses and reduce financial costs.
Insurance cover of leased assets, animals, crops and life assurance of borrowers.

KISSAN EVER GREEN FINANCE

Askari Bank has launched this program with the sole motive to provide dignity,
prosperity and freedom to the tiller of the land. The program is designed to help small,
medium and large farmers in meeting their short-term input requirements against one
time sanction and automatically renewable up to 3 years subject to its stipulated
utilization/periodical adjustment. The credit line is sanctioned in the light of available
cash flows and input requirements i.e. Seeds, Fertilizer & Pesticides etc.
 KISSAN TRACTOR FINANCE

Traditional modes of cultivation via Bullocks, Camels, horses etc can no longer keep
pace with the demands of present times due to manifold increase in the population. Power
in the form of modern technology is therefore the need of the hour. To meet this
emergent requirement, Askari Bank has launched an Askari Kissan Tractor Finance to
bring power to the fields.

KISSAN AABPASHI FINANCE

Agriculture farming is impossible without adequate water. We can combat the prevalent
water scarcity by harnessing more natural resources. Increased use of mechanical means
thus provides a ready alternative. Keeping in view the scarcity of water, which is the
lifeblood of arable lands, Askari Bank has started a program for farmers, to finance
installation of Tube-Wells (electric, diesel and solar energy units) water management
equipments and water channel development etc., which will help farmers to make
optimum use of limited water resources.
 KISSAN LICE STOCK DEVELOPMENT FINANCE

In order to supplement the income of the farmer, Askari Bank has launched a program
enabling the farmer to purchase Milk Animals, Goats, Sheep, Poultry and Fisheries
without incurring extra expenditure because of availability at his farm. He will be able to
get milk, meat and eggs etc., which normally do not form part of his diet. This program
has the added advantage that besides fulfilling his own familys consumption needs he
will be able to market the surplus and earn additional income. This will further improve
their cash flows to repay their other Loans / Revolving Credit on due date.

KISSAN FARM MECHANIZATION FINANCE

Beside Power at the farm i.e. Tractor, the benefits / advantages of power are maximized
with the use of Mechanical Support i.e. modern and improved equipments which
essentially complement one another due to their cost effectiveness and time efficiency.
Askari Bank has launched an Askari Kissan Farm Mechanization Finance for the
assistance of the small farmers and provides finance for farm equipment, trailer, thresher,
drills & rotavators etc.
 KISSAN FARM TRANSPORT FINANCE

A grave handicap that afflicts the farmers is their inability, due to lack of proper facilities,
to take their products to the market through efficient means of transportation. This
adversely affects the freshness, quality of the product and denies them the desirable
Price-Fetching opportunity. Conversely, they lack mobility to acquire much needed
inputs essential for their farming needs. One can safely conclude that if provided with
appropriate and speedy transport, the farmer can benefit by enhancing his selling ability
and thus increase his income / cash flow. It is pertinent to mention that a number of
Banks, Leasing Companies and Private Agencies have geared their marketing efforts to
concentrate on and have mainly captured the urban markets. There is no support provided
to cater to the transport needs of deserving rural farmers community. Askari Bank true to
its commitment has taken the lead to launch Askari Kissan Farm Transport Finance.

E. COMPETITORS

Bank Alfalah Ltd

Faysal Bank Ltd

National Bank of Pakistan Ltd

Muslim Commercial Bank Ltd

Allied Bank Ltd

Meezan Bank Ltd

 ORGANIZATIONAL STRUCTURE

A. ORGANOGRAM OF ASKARI BANK LTD

Figure 1: Organogram Askari Bank Limited

ORGANOGRAM OF ASKARI BANK LIMITED BAHAWALPUR

Figure 2: Organogram Askari Bank Ltd Bahawalpur

B. MAIN OFFICES

HEAD OFFICE

ASKARI BANK LIMITED

Landmark: AWT Plaza, The Mall, Rawalpindi

City: RAWALPINDI

REGIONAL OFFICES

o ASKARI BANK LIMITED (North Region Operation Head)

Landmark: Saima Trade Tower, I.I Chundrigar Road, Karachi

City: KARACHI

o ASKARI BANK LIMITED (Central Region Operation Head)

Landmark: Main Boulevard, Gulberg III, Lahore

City: LAHORE

o ASKARI BANK LIMITED (South Region Operation Head)

Landmark: AWT Plaza, The Mall, Rawalpindi

City: RAWALPINDI
C. INTRODUCTION OF ALL DEPARTMENTS

Business and operations in Askari Bank has been the key element of strategies. In 2009,
greater focus is placed on strengthening policies, processes, controls and workflows.

The Banks business is segmented into following banking divisions:

Corporate & Investment Banking

Treasury & International Banking

Operations Division

Credits Division

Electronic Technology Division

Consumer Banking Services

Marketing & Strategic Planning

Islamic Banking

Agriculture Banking

I. CORPORATE & INVESTMENT BANKING:

CIBG offerings aim towards the Banks large corporate and institutional customers,
including public sector entities. Such offering range from products for meeting
operational funding requirement, as well as a suite of structured finance products and
services related to strategic expansions, divestments, syndications, project finance,
underwriting, cash management and trade finance related services.

The Group operated through the following two groups which are based upon a client-
centric and distribution-focused business model that prioritizes client relationships and
economic returns through a structure that enables integrated, multi-product services.
 i. Corporate Banking Division (CBD): CBD strategy is focused towards
maintaining and strengthening existing corporate relationships while meeting the
business requirements of its large size customers, with the primary objective of
enhancing customer service and also improving the underlying risk of the total
portfolio through development and cultivation of relationships with externally
rated entities thus enabling the Bank to maximize risk adjusted returns on capital
deployed through CBD.

ii. Investment Banking Division (IBD): The IBD focuses on origination and
execution of a full range of financial advisory and capital raising services to
corporate and institutional clients as well as actively managing the Banks
proprietary investments in the local equity and debt capital markets.

During 2009, the IBD team remained actively involved in the lead arranging and
structuring a number of innovative and high profile debt arrangement and project
finance transactions for a client base ranging from large corporate, multinational
companies and public sector entities.

II. TREASURY & INTERNATIONAL BANKING:

i. TREASURY: Being aware of the developments on economic and regulatory front,

Treasury focuses on its operations prudently for maximizing return. The
efficiency and effectiveness of treasury operation are being enhanced by relevant
and appropriate training of the human resource available with the treasury and
 updating of its IT system by coordinating with vendor to meet the new challenges
and in order to be more competitive in the market.

ii. INTERNATIONAL BANKING: International division plays a vital role in

establishing and managing multi-faced correspondent banking relationships with
over 277 banks in 76 countries around the globe thereby providing a highly
professional and need driven service to the Banks valued global clientele. The
division also made concerted efforts to enhance the volume of workers
remittances. It made several arrangements with various multi-national banks and
exchange companies to promote home remittances in the country. This division is
also engaged in carrying out regular due diligence of counterparties with the aim
to ensure compliance of anti-money laundering and know your customer
standards and guidelines.

III. CREDITS DIVISION: The credit division (CRD) is responsible for ensuring
identification, control and management of credit risk through prudent lending
policies. During the year 2009, the gross advances of the Bank registered a growth
of 6% which increased from Rs. 140 billion to Rs. 148 billion. The Bank remained
selective in taking credit exposures and focused on risk adjusted returns and quality
and nature of collaterals to achieve improvement in capital adequacy ratio.

IV. ELECTRONIC TECHNOLOGY DIVISION: The electronic technology division (ETD)

is responsible for managing the legacy systems which include automated branch
banking operations, efficient delivery of customer services through branches as well
as alternate delivery channels, facilitating intra-bank electronic communications and
arranging efficient MIS for operational management, decision making and
regulatory reporting. Its activities include supporting the existing branch based
 banking system installed in the branches and delivering 24/7 banking services
through the Banks ATM network as well as through internet banking and call
centers. ETD is also responsible for developing and maintaining computer software
application systems to meet the requirements of business and operations and to
support launch of new products and services.

V. OPERATIONS DIVISION: The primary aim of Operations group is to provide a

supporting platform to all business segments on operational matters across branches
and business units, by strengthening internal control environment, while
contributing towards effective decision making and extended guidance on
operational matters. Operations division is consistently striving to bring
improvement in internal controls and provision of uninterrupted services to
customers.

VI. CONSUMER BANKING SERVICES DIVISION (CBSD): Consumer Banking Services

Divisions products and services mostly comprise auto finance, personal finance,
mortgage finance, Askari Credit Cards under the MasterCard brand, Askari
Corporate Credit Cards and Zarai Credit Cards. Because of the recent phenomena of
inflation and changes in interest rate, the consumer banking is repositioned with
focus on containing the growth of problem loans and improving recovery efforts
and internal controls.

Our success is tied to our customers successWe Win Together

CBSDs current offering products include:

Credit Cards Askari Touch N Pay

(Platinum, Gold, Silver, Zarai, Corporate)
Cash Management Services
i-Net Banking
 Flexible Credit Plan (Rest of the products are mentioned in product lines)

Askar (Auto Loan)

Askcard(Askari Debit Card)

V. MARKETING & STRATEGIC PLANNING: This group is recently established to

strengthen the marketing and strategic planning function within the Askari Bank.
The main objective of this Group is to facilitate the management in competitive
positioning of the Bank in line with the market dynamics while focusing on key
strategic objectives. The group also manages marketing activities from a central
platform aimed to improve the Banks image and also to serve communities and
society at large through corporate social responsibility (CSR) projects.

VI. ISLAMIC BANKING: Islamic Banking activities of the bank were initiated during
2006. Despite of its late start, Islamic Banking operation of the Askari Bank is now
amongst the top players in its peers i.e., 13 conventional banks with separate stand
alone Islamic Banking branches. In line with Shariah requirements, the Bank
ensures that the funds and products of Islamic Banking are explicitly managed
without any intermingle with the conventional banking business. All funds
obtained, invested and shared, are in Shariah compliant modes of investments.

VII. AGRICULTURE BANKING: agriculture and Rural Banking Division (ARBD) focuses
in business development. This unit also achieved further refinement in back office
processing including credit initiation, operations, risk management, in line with
business dynamics and regulatory framework. ARBD is proactively engaged with
its stakeholders for aggregation of services and improving the life standard of
farmers through its distribution network, currently extended to 89 branches across
Pakistan.
 The agriculture credit brand includes:

Askari Kissan Evergreen Farm Storage Finance

Finance
Model Dairy Finance
Askari Kissan Tractor
Gold Fish Finance
Finance
White Pearl Finance
Askari Kissan Transport
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D. COMMENTS ON ASKARI BANKS STRUCTURE

Askari Banks structure is simple but tall. The bureaucracy is prevalent in this structure
as it is owned by the army. All the power lies with the board members who reside at the
top of the structure. The degree of formalization and work specialization is high. The
decision making is centralized and is carried out by the board members. The span of
control is narrow i.e. every superior has no more than 7 workers and does close
supervision of them. The Banks Structure is aligned with the nature of the organization;
formed by the army officials who are the board of directors and the policies, procedures
and code of conduct is also set by them.
A. BRIEF INTRODUCTION OF ASKARI BANK LIMITED BAHAWALPUR

Vision

To be the bank of first choice in the region

Mission

To be the leading private sector bank in Pakistan with an international presence,

delivering quality service through innovative technology and effective human resource
management in a modern and progressive organizational culture of meritocracy,
maintaining high ethical and professional standards, while providing enhanced value to
all our stake-holders, and contributing to society

Askari Limited Bank, Bahawalpur branch was established in August, 2002. The Banks
branch building is located at Noor Mehal Road, Bahawalpur. As the number of customers
increased over time, there was a need of more advanced departments with the latest
technology. Askari bank expanded into a two-story building dealing with different needs
of the customers and providing facilities to them. The branch deals in four main
departments, namely: Credits, Bills & Remittances, Accounts and Deposits Department.
Apart from Islamic banking, a separate Leasing department is working to cater the needs
of growing Islamization in the region. The Bank is listed as one of the most renowned
banks in Bahawalpur.

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 customerservice 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 costeffective operations, strengthening
of controls, efficient management information system, enhanced delivery
capability, and high service standards.

Departments at Askari Bank

A. DETAILED DESCRIPTION OF DEPARTMENTS

Accounts Opening Department

The relation between the bank and the customer starts from this department. Every Bank
needs enough deposits to mobilize and earn great profits by lending the money on
significant amount of interest to those who are in need of it.

Askari Bank offers its customers the following types of accounts:

General Customer Accounts: Illiterate Person Account

Joint Account
Minor Account
 Societies/ Clubs/ Association
Account
Limited Company Account etc
Special Customers Accounts:

Proprietorship Account
Partnership Account

Account Opening Procedure: The account opening procedure is almost the same
for all types of account but the documents required for each type are different.

Before the bank officer opens an account he checks the following customer
characteristics:

The customer must have the age of majority (he must be of 18 years by law)
The customer must be of sound mind
The customer must not be insolvent and bankrupt.

o Account Opening Form: The customer or the bank officer (in case of an
illiterate customer) fills the account opening form. This form contains all
necessary information about the customer and his occupation or business.

o NIC: National Identity Card is checked and a copy of it is attached with the
account opening form by the bank officer. The bank officer also takes the print
out of the VeriSys (verification system) by entering NIC number of the customer
in the NADRA provided database of Verification System and attaches it with the
form.
o Know Your Customer Form: KYC contains all the information about the
customer and his account. Its contains information like Customers name,
address, business/ profession/ occupation, purpose of account opening, highest
cash flows expected and his risk profile etc. This form is filled by the bank
officer himself.

o Customer Bio-Data Form: This form contains information like customers

name, family name, family number, mothers name, monthly income, number of
dependents, house status, etc.

o Specimen Signature Card (SSC): The bank officer takes signature from the
customer on the accounting opening form complete set and on the specimen
signature card. The SSC is scanned and the signatures are fed into the computer
against the customers account number, so every time the customer does a
transaction with the bank. His signatures are verified with the signature on the
SSC.

o POSTED STAMPING: After the account opening form is completely filled it is

signed by the bank officer, assistant manager, manager operations and in last by
the branch manager. After this process is completed the account opening is
stamped posted and is the pasted in the account opening register

o Cheque Book Issuance: The Cheque books requisition for new and existing
account is sent to the HEAD OFFICE which sends back the Cheque books
having the name and account number of the customer printed up on it. It takes 4-
5 days in this process. After which the Cheque book is issued to the customer the
day the banks receives them from the head office.
 o Letter of thanks: A letter of thanks is mailed to the customer the next day of
opening his account with the bank. A copy of letter of thanks is attached with the
account opening form set and is then pasted on the relevant register of the type of
account opened.

o Check List: At the end of the account opening form the check list is attached to
it in which the documents provided are checked and ticked.

Account Closing Procedure: For closing the account the customer signs the
Account Closure Form and gives in writing the reason for the closing of account,
surrenders the unused cheque book & the atm card which are destroyed in the presence of
two bank officers and takes all his money with him.

Figure 3: Types of Accounts

Remittance Department

Cash is blood for the bank because it circulates in it and generates profit.

Remittance Department is of major importance in the bank because the transfer of money
from one place to another is done through here.

INSTRUMENTS OF BILLS AND REMITTANCE DEPARTMENT

The instruments of Remittance department are as follows:

Demand Draft
Pay Order
Rupee Travelers Cheque
Telegraphic Transfer
Pay slip
Outwards Bill for Collection
Inwards Bill For Collection
 Figure 4: Instruments of Bills and Remittance Department

o DEMAND DRAFT: It is an order of one branch to the other branch of the same
bank to pay a certain amount mentioned on the DD to the person named in it. It is
an intercity transfer of funds. For the preparation of a draft, first the customer fills
an application form and then the concerned bank officer fills the information in
computer software and prints the demand draft.

o TELEGRAPHIC TRANSFER: It is the fastest and secure way of transferring money.

The bank officer fills the application form and then the telegraphic transfer form
is filled. And the payment is made to the beneficiary in 24 hours. Telegraphic is
used for personal use only.

o MAIL TRANSFER: This form of money transfer is used when a customer requests
his bank to transfer his money to the other branch of the same bank to another city
or to another bank, within the country or outside the country. The bank officer
first fills the application form which states I want to transfer my money from this
bank to the other bank. Three types of mail transfers are used which are listed
below:
 Figure 5: Mail Transfer

Debit voucher
Credit voucher
Mail transfer register

If the customer doesnt have account the bank from which the mail transfer is drawn
then first he has to deposit money in the bank.

o PAY ORDER: Pay order is the intra city mode of transferring funds. Its a Cheque
drawn by the bank on itself. There three parties involved in the pay order
instrument:
Purchaser
The Bank
Receiver
 o OUTWARD BILLS FOR COLLECTION: The bills which the Bank sends to the other
bank in intra city are called outward bills for collection. All the cheques are
entered in the Outward Bills for Collection register and then the forwarding
schedules are prepared for various banks. Then the cheques are attached with the
respective schedule. Upon clearance the banks send back the bills along with Inter
Branch Credit Advice (IBCA). At the day end, contra vouchers are prepared.

o INWARD BILLS FOR COLLECTION: The bills received from other inter city banks
for local clearing are called inward bills for collection. The cheques are entered in
the Inward Bills for Collection register. It is to be noted here that OBC for
different banks is IBC for this bank. Upon realization of cheques an IBCA is
made and is then mailed to the respective branches.

Clearing Department

The clearing department collects cheques, demand drafts, pay orders drawn upon other
banks by the customer. Askari Bank as being owned by the army, collects the salary
cheques of army personnel and presents them to State Bank of Pakistan and upon
realization credits the respective accounts of the army officers.

Accounts Department
This department is of much importance in the Askari Bank. The banks daily transaction
are recorded in the computer and upon the day end a summary of it is printed out and is
tallied and ticked against the instruments received. The debit and credit vouchers are
prepared for each instrument and are saved as a record purpose. At the end of the week
the extract of all the transactions is sent to the head office. It also indicates, head office
entries as clearing, transfer delivery etc. The accounts department also performs the
following duties as well:

Preparation of Daily Bank Position Statement

Checking Banks Daily Activity
Maintenance of book of the accounts of head office
Salary disbursement of staff
Arrangement of stationary for bank
Pre audit checking of all bank transactions.

Customer Dealing Desk

As the name suggests this department provides different services to customers. This
department deals with Application for ATMs, Cheque Book Requisitions, Deposit Slips,
Online deposits and transfers.

Foreign Trade Department

Askari Bank is authorized by the State Bank of Pakistan to deal in foreign currency. The
For-ex department provides facility of foreign currency accounts to both Pakistani and
Foreign citizens and also facilitates them in foreign trade. The for-ex department provides
this facility through guarantee of import and export and letter of credits (L.C).

FUNCTIONS OF MANAGEMENT

Figure 6: Management Functions

A. PLANNING
 Decision Making Process

The board has all the power of decision making. Various departments like
Strategic and Marketing Department, Operations Departments and Electronic
Technology Division provide regular updates on industries, stock market trends
and report crucial findings to the senior management for decision making process.

Askari Banks Current Strategy

o To comprehensively plan for the future to ensure sustained growth and

profitability.

o To facilitate alignment of the Vision, Mission, Corporate Objectives with

the business goals and objectives.

o To provide strategic initiatives and solutions for projects, products,

policies and procedures.

o To provide strategic solutions to strengthen weak areas and to counter

threats to profits.

o To identify strategic initiatives and opportunities for profit.

o To create and leverage strategic assets and capabilities for competitive

advantage.
B. ORGANIZING

Organizational Design

Askari Bank Organizational Design is bureaucratic because it is primarily owned by the

army and its working methods are directed by the board members of the bank.

Departmentalization: Askari Banks has a functional structure where

jobs are grouped into units according to the skills, abilities and work
activities of the members of the Bank. Every member of the organization
has specialized technical competencies which constitutes a competitive
advantage. At top of the organization Board of Directors reside,
followed by Audit Committee, Executive Committee, President & CEO
and the Company Secretary. The chain continues from President & CEO
down to the group heads who report directly to them. Group heads are in
charge of their relevant business and support functions. The various
departments in Askari Bank are:

o Credits o Commercial Banking

o Marketing & Strategic o Operations

Planning
o Treasury
o Finance
o Islamic Banking
o Human Resource
o Consumer Banking o Corporate & Investment
Banking

This functional structure of Askari Bank is tall, simple and is in line with
the nature of the Bank. The communication flows up and down the
structure from superiors to employees and vice versa. Supporting business
functions report to their respective Group Heads/ Country Heads/
Executive officers, who than report to the President & CEO and they
further report to Board of Directors. In such a work specialized
environment where jobs are grouped in various departments, every
member is a specialist and reports to his/her superior.

Chain of Command: The authority flows from the Board of Directors of

the Bank down to the lower levels.

Span of Control: Askari Bank has narrow span of control because of

division of labor. The number of employees per superior is not more than
7. Every superior does close supervision of his juniors and is responsible
for their operations. i.e. branch manager at branch level, area manager at
area level and regional operational head at regional level.

Formalization: The Bank has high degree of formalization. Every job is

done according to defined set of procedures, rules and policies set by the
State Bank of Pakistan and Askari Banks board of directors.
 Centralization/Decentralization: The degree of centralization is high
and the decisions are made at the top management which includes all the
board members.

Work Specialization: The jobs are divided according to the skills and
capabilities and structure of the tasks of the employees and are than
grouped together according to the nature of the job.

Managing Change and Innovation

The vision of the Bank to be the first choice in the region demands continuous
strive for the creation of business opportunities with innovation and change
management techniques while maintaining the core values to meet the
commitment to all its stakeholders.

The range of products is therefore designed to serve the diverse customer base
that comprise of corporates, SMEs, individual savers, households and farmers.
The people of the Bank are constantly engaged in assessing customer needs and
market dynamics to realign products and their priorities to attain brand
recognition and competitive edge.

Managing IT and Communication

 Askari Bank-- Moving a
Click Ahead

Technology drives creativity, innovation and the future, with this belief Askari
Bank has embarked upon a major initiative by introducing state-of-the-art
technology solutions for all key areas of banking i.e., core banking, client
relationship, human resource, risk management, finance and vendor management,
to make it ready for the banking of the future and to enhance its capabilities to
compete in the local and global marketplace. The Electronic Technology Division
(ETD) is responsible for maintaining and managing the systems of both
Information Technology and Communication.

C. LEADING

Leadership Style

The leadership style is basically Autocratic in the Bank because the board
members have the centralized authority to make decisions and dictate methods for
how the things to be done. This autocracy has a touch of democracy as well, as
senior management at times consults the employees in decision making but makes
the final decision itself. The Bank values its employees and therefore it has
included Leadership Development Programs for the senior management of the
bank.
 Power and Politics

The board members have all the Power because they have the supremacy to
decide variable such as hiring, firing, discipline, promotions, salary increases,
new product development and downsizing etc. The source of their power is their
rank, position and competence. As far as politics is concerned, it feeds on conflict
which arises due to the limited resources in the organization. As board members
have the supreme power they are the ones who allocate resources to various
divisions, so the role of politics fails here. But it is a reality of organizations and
does exist between individuals, groups and divisions.

Motivation

Askari Bank recognizes its employees as the prime asset and the key contributors
to the performance of the Bank and places great emphasis on the attraction,
development, motivation and retention of employees. Although work in areas
such as improvement in employee satisfaction & motivation is an ongoing process
and more is to be done in this regard.

During the year 2009, training & development team of the Bank continued its
pursuit for quality training of the Banks staff in line with approved training
policy. Training goals were determined in light of well defined training need
assessments (TNA) procedures as envisaged in the overall strategic plan of the
bank. The purpose of training is to keep employees skills and capabilities up-to-
date which acts as a motivational tool and increases their morale. The current
appraisal system is based on employee performance and contribution towards
achieving the Banks goals & objectives.
D. CONTROLLING

Controlling Approach

Our efforts aim at improving all aspects of customer experience a bit better
everyday

Internal controls contribute to effective management by both the Banks Board of

Directors and management. While the Board recognizes its responsibility as
envisaged in the relevant regulations, the management of the Bank ensures the
establishment and maintenance of adequate and effective systems of internal
control in compliance with external laws and regulations and consistent with the
Banks own internal policies. It is also responsible to assess the effectiveness of
internal controls and report on them to the Board.

The management ensures the efficiency and effectiveness of the internal control
system by identifying control objectives, devising and reviewing appropriate
policies and procedures, and establishing relevant control procedures. Significant
policies and procedural manuals are already in place. Policies and procedures are
 periodically reviewed and revised and necessary amendments and updates
introduced.

Controlling Standards

Askari Bank has devised a well-defined and comprehensive internal control

program roadmap with specified stages as suggested by the SBP. In accordance
with this program, the Bank is in the advanced stages of completing a detailed
documentation of the existing processes and controls, together with a
comprehensive gap analysis of the control design.

The management is aware of its responsibility of putting a system in place for the
authentication of transactions, strengthening of control environment, and
identifying areas requiring improvement and devising appropriate remedial action
on a timely basis. A complete revamp of the Banks existing IT platform is one of
the major moves in this direction. The internal control system in the Bank is
designed to minimize the risk of failure and to keep such failure within tolerable
limits as these cannot be eliminated completely. Only reasonable and not absolute
assurance can be provided against material misstatement or loss.

Controlling of Operations

Risk Management is a core function at Askari Bank that performs critical

activities of measuring, monitoring, controlling and reporting credit, market,
liquidity, operational and other risks.
 The Bank has developed and deployed tools and techniques in measuring
operational risk such as Risk & Control Self Assessment, Loss Data Analysis
and Operational Key Risk Indicator with the aim to reduce operational losses,
improve performance measurement, ensure better control of operations, and
provide early warning of gaps in internal controls and enhanced security
measures.

Controlling of Performance

To make sure that employee perform efficiently and effectively the tasks assigned
to them, Askari Bank is committed to develop and enhance each employees skills
and capabilities through extensive in-house and external training programs and
job rotations. In order to ensure meritocracy, the Banks appraisal system is
purely performance-based.

Controlling of Information/Knowledge

The prime objectives of establishing Information Security Division (ISD) is to

manage the Banks Information Security System (ISMS) in strict compliance with
the international standards of confidentiality, integrity and availability by
adopting an integrated approach to information security risk management with an
objective to achieving the ISO international certification. The Division made all
out efforts in developing and implementing related policies & procedures at the
selected areas within the scope of ISO certification. Extensive training was
imparted to the designated Information Security Managers for creating awareness
and clear understanding of the significance of information security within the
Bank.

It is stated in Askari Banks Code of Ethics and Conduct:

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 Banks
own affairs or other interests.
 CRITICAL ANALYSIS

The management functions are prevalent at the overall organization level but at branch
level there is still a need of improvement and understanding about it. Every branch has a
different culture and Askari bank Bahawalpur branch is no exception. I am going to state
the critical analysis based on the Askari Bank Bahawalpur Branch.

The strategic & long term planning is done by the board of directors and they provide
quarter, semi annual and annual goals to the regional managers who give them to branch
managers through area managers. The branch manager at the Askari Bank Bahawalpur
branch provides weekly targets to all the bank officers through meetings which they have
to achieve by working harder. The bureaucratic culture is widespread. The manager
operations and the branch manager praise and encourage the employees when the work is
properly done and the target is achieved but do negative reinforcement if the employees
make mistakes or dont achieve goals provided to them. There are employees who are in
the bank from more than 20 years and have blocked the way of competent juniors to get
promoted. At the meeting the few employees play the role of a devils advocate and
criticize the ideas provided by others especially junior employees. As far as the feedback
is concerned it is an ongoing process. Although Askari Bank is making overall
technological changes but the banking software used in Bahawalpur branch and many
other branches is UNIBANK which is being used from many years that now it should
have become obsolete. The team-work culture is present at times in the Bank which is a
good sign towards success.
Future Prospects:

Askari Bank has taken technology transformation initiative which is in an advanced

stage of implementation; the benefits are expected to emerge in near future in the
form of improvement in service quality, customer offerings, process efficiencies,
internal controls that will further strengthen our capabilities and readiness for future
challenges. The future expansions will be gradual and incremental which are as
follows:

Integration of Islamic banking system with the Banks ATM network, internet
online banking advancement, implementation of a new version of Credit Card
Management system, integration of the two call centers, shifting of existing
operations to the new ETD (Electronic and Technology Division) premises,
activation of the new Data Center and establishment of a Disaster Recovery Site
in another city are amongst ETD plans for the near future.
 SWOT ANALYSIS

Figure 7: SWOT Analysis

a. Strengths of Askari Bank

i. Training and Development: Askari bank has extensive training &

development programs for employees to enhance their capabilities like no other
bank can.

ii. Compensation Benefits: Askari bank provides various compensation benefits

to their employees which boosts their morale.
iii. Technological Metamorphosis: In addition to Oracle Financial Services
Software (OFSS) (previously flexcube) as the core banking software, the Bank
is also implementing Oracle Financial as MIS and Supply Chain Management
software, PeopleSoft as Human Resource Management software, Reveleus
as Risk management software and Siebel as Customer Relationship
Management software. These softwares will be fully integrated with OFSS and
collectively strengthen the product and service delivery capacity while
improving the overall operational and internal control standards.

iv. Customer-Focused Banking: Askari bank delivers timely solutions that best
meet the customers financial needs and places special emphasis on customer
care and convenience.

v. High Credit Quality: Askari Bank has credit ratings of AA for Long term and
A1+ for Short term by PACRA. These are high credit ratings which support
highest quality for timely repayment of financial commitments.

vi. Ethical Concerns: Askari Bank management ensures ethical practices of

business and enjoys good public reputation. The customers are valued and are
provided with excellent services.
Weaknesses of Askari Bank

i. Centralization: The degree of centralization is high because all the decisions

are made by the board members and employees are not made part of decision
making process at any level.

ii. Lack of Career Growth: Askari bank has many employees which are working
for over two decades now and who have blocked the way for career growth of
competent junior employees.

iii. Less Job Satisfaction: Human Resource Management is the most difficult
challenge faced not only by the bank but by all the organizations across the
world. 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. AKBL seems less
focused on this highly critical issue as the job satisfaction level of the
employees working at AKBL, is pretty low.

iv. Lack of Team-Work: The team-work culture is not prevalent due to the
functional structure of the Bank.

v. Manual Book Keeping: Although the bank has computerized system yet
registers are used to maintain the information about accounts, atms, cheque
books and clearing etc.
 vi. Work Load Saturation: The employees are under pressure most of the times
because of the tough targets set by the top management and feel exhausted and
less productive.

c. Opportunities

High payment capacity

Branch Network in Remote Areas

Overseas Branch Expansions

Attract Foreign Investment

Completely Automated Operations

Jagged increase in Imports & Exports

d. Threats

i. Job Turnover: Many employees have left the bank and went for other
banks because they feel there career in threat as they are appointed on
contract bases.

ii. High Bank Charges: As per Askari Banks Schedule of Charges, 2010, it is
apparent that the charges are extremely high on online funds transfer etc.
 This can create an alarming condition and the bank can loose some of its
customers.

iii. Threat of New Entrants in Banking Industry

iv. Political and Economical instability in Pakistan

v. Competitors:

o National Bank of Pakistan Ltd

o Faysal Bank Ltd

o Allied Bank Ltd

o Bank Alfalah Ltd

o Meezan Bank Ltd

o Muslim Commercial Bank Ltd

o Etc
ANNEXES