INTERNSHIP REPORT ON

ASKARI BANK

PMA KAKUL BRANCH ABBOTTABAD (0030)

Submitted by

Zarbakht Khan Babar

Roll # S-009-2014

Supervised by

Sardar Ejaz Ahmed

Government College of
Management Sciences Abbottabad
SESSION

2015-2018

i
 INTERNSHIP REPORT ON

ASKARI BANK

PMA KAKUL BRANCH ABBOTTABAD (0030)

Submitted by: Zarbakht Khan Babar

Roll # S-009-2014

Supervised by: Sardar Ejaz Ahmed

This internship report is submitted in partial fulfillment of

the requirements for the degree of Bachelor of Business
Administration awarded by the Hazara University,

Mansehra

Government College of Management Sciences

Abbottabad
SESSION
2015-2018

ii
 Government College of Management Sciences

Abbottabad

APPROVAL SHEET

Approval Committee

1. External Examiner

Mr.______________________ Signature__________
2. Supervisor

Sardar Ejaz Ahmed Signature____________

Designation Associate Professor GCMS Abbottabad

3. Head of department

Prof Mushtaq Ahmad_________ Signature______________

Designation Principal GCMS Abbottabad

DEDICATION

iii
This report is dedicated to my parents for giving me this opportunity to attend this
degree and supporting me throughout my student life who acted as a backbone and a
major reason behind my accomplishment and also to my honorable teachers who have
always guided me

iv
 ABSTRACT

In order to be able to cope with the changing environment it is necessary to have some
practical experience. As the students of business administration we have to pass
through a series of various managerial techniques. During this practical course we are
provided with an opportunity to learn that how the theoretical knowledge can be
implemented in practical grounds.

I selected to do my internship Askari Bank PMA Kakul Branch. I worked there for 8
weeks and it gave me greater practical knowledge about the operations of a bank. In the
following pages I have narrated my experience, observations and all the working
activities which I observed during my internship period at Askari Bank PMA Kakul
Branch.

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 Table of Contents

CHAPTER 1..............................................................................................................................................1

INTRODUCTION......................................................................................................................................1

1.1 PURPOSE OF THE STUDY.....................................................................................................................1

1.2 IMPORTANCE OF STUDY.....................................................................................................................2
1.3 PURPOSE OF THE REPORT...................................................................................................................2
1.4 SCOPE OF THE STUDY.........................................................................................................................2
1.5 METHODOLOGY OF THE STUDY..........................................................................................................2
1.5.1 Secondary Data.........................................................................................................................2

CHAPTER 2................................................................................................................................................4

INTRODUCTION TO THE ORGANIZATION.....................................................................................4

2.1 HISTORICAL BACKGROUND...............................................................................................................4

2.2 GENERAL INFORMATION....................................................................................................................5
2.2.2 Mission......................................................................................................................................5
2.2.3 Core Values...............................................................................................................................5
2.3 CORPORATE OBJECTIVES...................................................................................................................5
2.4 STRATEGIC PLANNING.......................................................................................................................6
2.5 CORPORATE PROFILE.........................................................................................................................6
2.6 BRANCH NETWORK............................................................................................................................8
2.7 INTRODUCTION TO AKBL ABBOTTABAD........................................................................................10
2.7.1 AKBL Abbottabad Organizational Chart..............................................................................11
2.8 ACCOUNT OPENING DEPARTMENT...................................................................................................12
2.9 THE ACCOUNT OPENING FORM.......................................................................................................13
2.10 TYPES OF ACCOUNT...............................................................................................................15
2.11 REMITTANCES DEPARTMENT..........................................................................................................16
2.12 ACCOUNTS DEPARTMENT...............................................................................................................23
2.13 CASH DEPARTMENT........................................................................................................................25
2.14 CREDIT DEPARTMENT.....................................................................................................................27
2.15 CREDIT CARD DEPARTMENT...........................................................................................................28
2.16 TRADE FINANCE DEPARTMENTS....................................................................................................29

CHAPTER 3..............................................................................................................................................30

PRODUCTS & SERVICES.....................................................................................................................30

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 3.1 CONSUMER BANKING SERVICES....................................................................................................30
3.2 ASKARI FINANCE AND LOANS.........................................................................................................34
3.3ASKARI BANKING SERVICES.............................................................................................................36
3.4 INVESTMENTS PRODUCTS.................................................................................................................36
3.5 AGRICULTURE FINANCE SOLUTIONS................................................................................................41
3.6 CORPORATE & INVESTMENT BANKING GROUP (CIBG)................................................................43

CHAPTER 4..............................................................................................................................................48

MARKETING...........................................................................................................................................48

4.1 STRUCTURE OF THE MARKETING DEPARTMENT........................................................................48

4.2 FUNCTIONS OF THE MARKETING DEPARTMENT.............................................................................49
4.4 FUNCTION OF SALES DEPARTMENT....................................................................................................50
4.5 CUSTOMER SERVICES.....................................................................................................................52
4.6 PEST ANALYSES..........................................................................................................................54
4.6.1 POLITICAL, Governmental, and Legal Forces......................................................................54
4.6.2 Economic Forces:...................................................................................................................54
4.6.3 Social, Cultural, and Demographic Forces............................................................................55
4.6.4 Technological Forces..............................................................................................................55
4.6.5 Global Forces.........................................................................................................................56
4.7 PORTER’S FIVE FORCES MODEL.............................................................................................56
4.8 BANK ASKARI BCG MATRIX........................................................................................................57

CHAPTER 5..............................................................................................................................................58

FINDINGS/ RECOMMENDATION......................................................................................................58

REFERENCES.........................................................................................................................................61

vii
 ACKNOWLEDGEMENTS

All praise is for ALLAH, the most merciful and His Prophet Muhammad for every
torch of guidance and knowledge for humanity. I offer humblest and sincerest words of
thanks to ALLAH Almighty WHO blessed me with potential and ability to make
material contribution to already existing ocean of knowledge
I express my gratitude to Sardar Ejaz Ahmed who is our supervisor, and also our
respectable teacher. I am thankful for his kind support during the entire period.

I like to thank the staff members of Askari Bank PMA Kakul Branch Abbottabad, who
provided me with the information needed to complete this report.

I also like to thank my parents who supported me through their wishes and prayers during
the entire period.

Zarbakht Khan Babar

viii
 LIST OF ABBREVIATIONS

AKBL Askari Bank Limited

APR Annual Performance Report

ATM Automatic transaction machine

CA Chartered Accountants

DD Demand Draft

ICAMP Institute of Cost and Management Accountants in Pakistan

ICAP Institute of Chartered Accountants in Pakistan

JO Junior Officers JO

LPR Leave Preparatory To Retirement

MAP Management Association of Pakistan

MO Manager Operations

MTO Management Trainee Officers

NIC National identity card

OJT On Job Training

PKR Pakistani Rupees

SAARC South Asian Association for Regional Corporation

SAFA South Asian Federation of Accountants

SBP State Bank of Pakistan

SWOT Strength, Weaknesses, Opportunities and Threats

HRD Human Resource Department

HRIS HRM Information System

HRM Human Resource Management

VHS Voluntary Handshake Scheme

VP Vice President

ix
 EXECUTIVE SUMMARY
The report is about the internship at Askari Bank, Abbottabad, during eight weeks. This
internship is a requirement for our BBA Hons degree. The purpose of internship is to
eliminate the gap in our knowledge that occurs between the theoretical and the practical
implications in the banking sector.

The contents of the report includes general profile of Askari Bank, products and
services offered by the bank, the financial position of the bank like its advances and
deposits etc, comparison of branch performance with the overall performance of the
bank, its SWOT analysis, conclusion and recommendations.

Askari Commercial Bank Limited was incorporated in Pakistan on Oct. 09, 1991. The
bank obtained business commencement certificate on Feb. 26, 1992 and started
operations from April. 1, 1992, as public limited company, and has since expanded into
a nation-wide presence of 200 branches.

The SWOT analysis of the bank has been done in order to give a clear picture of the
Bank Strengths, Weaknesses, Opportunities and Threats. SWOT is a useful tool for
providing a framework for analysis of an organization. It is widespread approach to
make assessments in terms of internal and external environment of the organization and
to formulate strategies by analyzing its internal strengths and weaknesses, external
opportunities and threats.

Some of the recommendations I made for the bank are that the bank should
improve its dealings in consumer banking which has a great potential of growth
for the bank and that the infrastructure of the bank should be improved, Paid
internship program should be introduced for students to attract, motivate and
retain competent future managers among them and employees should be
properly compensated for their work especially during the overtime period and
should not be forced but instead should be motivated.

x
 CHAPTER 1
INTRODUCTION

Internship is an integral part of all the management courses at Govt.

College of Management sciences, Abbottabad. The Students of BBA Hons
are also required to undergo an internship program of eight weeks in any
Foreign or Domestic Bank of the country. Comprehensive report writing
follows the internship. The internee is required to submit an internship
report to the Head of Management Science Department, which is properly
evaluated. The internee is also required to undergo a viva-voca, in which
he/she is asked about the different activities he/she has performed in the
organization.

To fulfill my academic requirement of BBA Hons course, I did my

internship in Askari Bank ., PMA Kakul Abbottabad Branch. Although
the internship was carried out in the entire bank departments, like
 Deposits Department
 Bills & Remittances
 Accounts Department
 Credits Department

1.1 PURPOSE OF THE STUDY

Apart from the degree requirement of BBA Hons the basis idea of this
report is to analyze the activities preformed by the bank during the
internship, also to analyze the operations carried out in each department
especially Deposits Department & Credits Department of Askari Bank .,
PMA Kakul Abbottabad Branch. Besides the analysis, certain
recommendations are also made for the improvement.

1
In addition this study would be helpful for the students of banking and
finance as well as professional bankers to gain an additional insight into
the banking sector of our country.

1.2 IMPORTANCE OF STUDY

Banks play a central and a very important role in the economic life of a
country. That’s why they are considered as the lifeblood of modern
economy. Today no one can deny the importance of banking in the
economy. They facilitate and expedite trade and commerce and provide a
variety of services that one can’t imagine with out banks. Besides this, the
Askari Bank plays an important role in the economic development of
Pakistan.

1.3 PURPOSE OF THE REPORT

The purpose of the report is to critically evaluate the operations of each
department of Askari Commercial Bank at branch level. The internship
was carried out to evaluate the efficiency o\f management structure. Based
on the analysis certain recommendations are made for the improvement.
The study was carried out and the report being presented for the fulfillment
of degree requirement of BBA Hons at the Govt College of Management
Sciences Abbottabad

1.4 SCOPE OF THE STUDY

The main focus of the study is to describe the working of Askari Bank at
branch level. An evaluation of selected departments is carried out, and
after some critical analysis recommendations are given.

1.5 METHODOLOGY OF THE STUDY

The study makes use of one kind of data, secondary source.

2
1.5.1 Secondary Data
Certain types of information such as the background details of the
organization can be obtained from available published records, the official
web site of the organization and other sources. Other types of written
information such as company policies, procedures and rules can be
obtained from the organization’s records and documents. The advantage of
this data is that we don’t have to search for the needed information and the
disadvantage of this data is that the information may not be up to date as
changes occur in the organization time. For this report the secondary data
is taken from annual reports of 2016-2017.

3
 CHAPTER 2
INTRODUCTION TO THE ORGANIZATION

2.1 HISTORICAL BACKGROUND

Askari Commercial Bank Limited was incorporated in Pakistan on Oct. 09,

1991. The bank obtained business commencement certificate on Feb. 26,
1992 and started operations from April. 1, 1992, as public limited
company, and has since expanded into a nation-wide presence of 200
branches, handled by a human capital of 8000 employees and lowest
turnover in Pakistani banking sector. The bank is listed on the Karachi,
Lahore and Islamabad stock exchanges and the initial public offerings was
oversubscribed by 20 times AKBL is principally engaged in the business
of banking as defined by the Banking Companies Ordinance, 1962.

AKBL continues to scale new heights in all areas of its operations. The
safety and security of depositor’s funds, high productivity and optimum
use of technology are the hallmarks of its corporate strengths.

While capturing the largest market shares among the new banks. AKBL
has provided good value to its shareholders. Share price of AKBL has
remained approximately 15% higher the average share price of quoted
banks during the last four year.

Askari Bank is principally engaged in the business of banking as defined

in the banking company’s ordinance, 1962. As at December 31, 2002 the
bank had total assets of PKR 70.313 billion, with over 250,000 banking
customers.

2.2 GENERAL INFORMATION

2.2.1 Vision
4
To be pre-eminent financial institution in Pakistan and achieve market
recognition both in quality and delivery of service as well as the range of
product offering.

2.2.2 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.

2.2.3 Core Values

The intrinsic values, which are the corner-stones of its corporate behavior,
are:

 Commitment

 Integrity

 Fairness

 Teamwork

 Service

2.3 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 maximize use of technology to ensure cost–effective operations,
efficient management information system, enhanced delivery
capability and high service standards.

5
 To develop a customer–service oriented culture.

2.4 STRATEGIC PLANNING

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

profitability.
 To facilitate alignment of the Vision, Mission, Corporate Objectives
and with the business goals and objectives.
 To provide strategic initiatives and solutions for projects, products,
policies and procedures.
 To provide strategic solutions to mitigate 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.

2.5 CORPORATE PROFILE

Board of Directors ( As on 18th July, 2017)

Lt. Gen. Khalid Nawaz Khan, HI (M) (Retd)

Chairman - Board of Directors

Lt Gen Shafqaat Ahmed, HI(M) (Retd)

Director

Lt. Gen. Muhammad Haroon Aslam, HI (M),S Bt (Retd)

Director

6
Mr. Qaiser Javed

Director

Dr. Nadeem Inayat

Director

Mr. Manzoor Ahmed (NIT)

Director

Mr. Asif Reza Sana

Director

Mr. Zaffar Ahmad Khan

Director

Mr. Tariq Hafeez Malik

Director

7
Mr. Muhammad Ghous
Director

Syed M. Husaini
President & Chief Executive
2.6 BRANCH NETWORK

During the year, Askari Bank opened 50 new branches including 4

Banking branches and 11 sub-branches. We now offer services through a
network of 200 branches, including the wholesale bank branch in Bahrain.
Through this branch network, we are able to present our wide range of
products and services to our valued customers.

Strategic branch expansion remains our priority to cover all important

towns and cities and to explore new markets in the smaller towns for our
retail, agriculture and Banking products and services, supported by our
technology based services such as on-line banking and ATMs.

The system of regional and area offices has been introduced since 1999 for
the effective supervision and control of branches. The scope of the system
also spans the development and management of the Bank’s business and
activities, on a regional basis.

Under this system, the Regional Heads have the primary responsibility for
business development, profitability, productivity, operational efficiency
and credit quality. It has now enabled the Bank to further expand and
diversify its geographical reach and business activities. Geographically,
the bank is divided into the following regions and 200 branches.

SOUTH REGION

Karachi I 10

Karachi II 10

8
Karachi III 10

Karachi IV 10

Hyderabad 13

Quetta 9

Corporate 1

Banking 7

Total (South) 70

CENTRAL REGION

Lahore I 10

Lahore II 10

Lahore III 9

Faisalabad 11

Gujranwala 10

Multan 10

Corporate 1

Banking 8

Total (Central) 69

NORTH REGION

Islamabad 15

Rawalpindi I 12

Rawalpindi II 10

Peshawar 12

Banking 5

Total (North) 60

WHOLESALE

9
Bank Branch (Bahrain) 1

TOTAL BRANCHES /SUB-BRANCHES 200

2.7 INTRODUCTION TO AKBL ABBOTTABAD

To provide the banking facility to people of Abbottabad Askari Banking

branch Abbottabad was established in 2015 at Abbottabad

10
2.7.1 AKBL Abbottabad Organizational Chart

11
2.8 ACCOUNT OPENING DEPARTMENT

This department is responsible for the opening and closing of accounts. In

consideration of AKBL, opening and/or continuing to maintain any
account, the Account Holder/Depositor or Investor would be bound by the
terms and conditions written on the account opening form.
The first part establishes the preference regarding the type of account to be
maintained. The various choices offered in this regard are:
 Current Account.
 Saving/ PLS Account.
 Basic Banking Account.

2.8.1 Current Account

The current account is the most common account and the most preferred
amongst business concerns. There is no restriction on the amount of
withdrawal. Current account enables the client to do cash transactions in a
more efficient manner.
Features:-
 Current Accounts can be opened in the AKBL with the sum not less
than Rs.10,00/.
 No Profit.
 No deduction of Zakat.
 Account close charges Rs.150.
 Service charges for maintaining minimum balance Rs.100
 Online Charges Rs.100.

2.8.2 Saving / PLS Account

In Pakistan (PLS) saving account was introduced in January 1982.
Individuals who wish to invest their money in order to get profit maintain
this account.
Features:-
 The minimum balance requirement for opening the account is Rs.1000.

12
 There can be profit or loss on the investment of the Customer’s funds
deposited with the bank and this amount shall be acceptable to the
Customer. The profit is paid half yearly.
 Deduction of Zakat.
 Withholding tax on profit @ 10%.
 No Service Charges to close the account.
 Service Charges for maintaining minimum Balance Rs.50
 Online Charges Rs.150.
　
2.8.3 Basic Banking Account
Basic Banking Account is opened is AKBL. The minimum amount
deposit in this account is very small as compared to other accounts.
Features:-
 Minimum Deposit amount is Rs. 1000.
 1st two transactions is free of cost.
 Bank can close the Account after six month if balance is zero.

2.9 THE ACCOUNT OPENING FORM

When a client comes to the bank, and makes a request for opening of an
A/C. The officer says that first fill up a prescribed application form.

2.9.1 Completion of The Form

The name, occupation, and complete address of the person opening the
account are written in the columns that are provided in the form.
Signatures are obtained from the customer where it is required. These
signatures should be usual signatures and he would operate the account
with them.

2.9.2 Introduction
The introduction of a current account holder is accepted for the opening of
either a current account or a saving account. The introducer should be

13
Account Holder. The signature of the account-holder introducing the
account is obtained at the place provided for in the account opening form.
Specimen Signature Card, Cheques Book Requisition, Online Form:-
The signatures of the client are obtained on a specimen Signature card
Cheque book requisition and online form. These specimen signature cards
are obtained in duplicate with two signatures on each card from the
customer. Every time a Cheque is received for a payment from the client,
the signature on the Cheque are verified by comparing them with the
Specimen Signature Card.

2.9.3 Account Number

When all the formalities are completed then the final approval of account
has to be taken from the Branch Manager. After obtaining approval of the
branch manager an account number is allotted to the customer all the
information is entered into the computer. Then that account number is
written on the Cheque Book, Specimen Signature cards and account
opening form.

2.9.4 Send the form to Head Office

After fulfill all the requirement and verify the form from operation
manager the account opening form send to Head Office Rawalpindi and
make request to issue the printed cheque book.

2.9.5 Issuance Of A Cheque book

After opening an A/C with the bank, the A/C holder receive a letter of
thanks from Head Office then after receiving this letter client come to
bank and makes a request in the name of bank for the issuance of a Cheque
book. The A/C holder mentions title of A/C, A/C number, signs it
properly. Normally AKBL issues a Cheque book having 25 leaves for
Saving Account and 50 leaves Cheque Book to Current Account Holder.
Every Cheque book also contains one leaf that is used for another issue of
a Cheque book.

14
2.9.6 Entry of a Cheque book
Before issuance of a Cheque book, the employee performs certain
functions. They include:
Stamping requisition slip that is in Cheque book.
Enters it in the Cheque book issue register.
Check whether or not a senior officer has verified the signatures, if not
then first gets them verified.
After entry in the manual register, the employee issues the Cheque book to
the A/C holder with his/her signature on the register.

2.10 TYPES OF ACCOUNT

2.10.1. Accounts of General Customers

 Minor Account
 Illiterate Person Account
 Joint Account

2.10.2. Accounts of Special Customers

 Individual Account
 Proprietorship Account
 Partnership Account
 Limited Company’s Account
 Account of Club Societies and Association
 Agents Account
 Trust Account

2.11 REMITTANCES DEPARTMENT

Meanings of Remittances

15
“Remittance is transfer of funds from one place to another or from one
person to another.”
A Remittance is an important service provided by banks to customers as
well as non-customers. Since it is not a free service it is a source of income
for the bank.

Parties involve in remittances

Four parties involved in remittance:-
1.Remitter
2.Remittee
3.Issuing Bank
4.Paying Bank

1. Remitter
One who initiates, or requests for a remittance. The remitter comes to the
issuing or originating branch, asks for a remittance to be made, and
deposits the money to be remitted. The bank charges him a commission for
this service. He may or may not be the branch’s customer.

2. Remittee
A Remittee is also called the beneficiary, or the payee. The person in
whose name the remittance is made. A remittee is also the one who receive
the payment.

3. Issuing Bank
The bank that sends or affects the remittance, through demand drafts,
telegraphic transfers, or Mail Transfers.

4. Paying Bank

16
Paying Bank also knows as the drawee branch. The branch on which the
instrument is drawn. It has to make the payment (usually located in a
different city country).

Kind of remittances
Transfer within the branch
Transfer from one branch to another
Transfer from one bank to another bank in the same city
Transfers from one bank to another bank in two cities.

Instruments used in remittances

 Demand Draft (DD)
 Pay Order (PO)
 Pay Slip
 Call Deposit Receipt (CDR)
 Telegraph Transfer
 Rupees Traveler Cheque (RTC)
 Cancellation of PO, DD & CDR
 Advance Tax against Remittances
2.11.1 Demand draft
Demand Draft is a negotiable instrument, which is drawn by one branch to
another branch of the same bank. In case of agency arrangement Demand
Draft can also be issued by one branch of the bank payable to other branch
of the other bank e.g. DD issued by the AKBL payable by UBL.

Process of the issuance of DD

When a customer requests AKBL Abbottabad to provide him a DD made
on his account or against cash payment for a particular city like
Abbottabad Then, after having the total amount including commission
demand draft is issued in favor of the specified person in that city and is
drawn on AKBL Abbottabad Branch. So, when payee in any bank presents

17
this demand draft, it constitutes the inward clearing of AKBL Abbottabad
branch
When AKBL receive the Demand Draft then it pass the following entry

2.11.2 Pay order

Pay order is a negotiable instrument made by the bank, on account of a
customer, to pay on order the specified amount to the directed person
(payee).
Use of Pay Order:-
Pay orders are used to make payment or to transfer money, with in the
same city. Pay order is always drawn on the bank that has issued it. The
main advantage of pay order is that it cannot be dishonored by the bank.
Pay order can be endorsed if it is not crossed. The payee may present pay
Order for payment either over the counter for cash payment or the payee
may transfer credit to his account.
Process of issuance of pay order
Process of issuance of pay orderCash Deposited or gives Cheque in favor
of AKBL
Fill Application Form for Pay Order and signed by Applicant
Entry in Bank Smart
Bank issue a Pay Order after recovering Charges (2 Copies) which is
signed by two officers
Do necessary Vouchering and Take Signature of Applicant at the Place of
received Instrument
Copy of Pay Order is given to Customer
Copy is for Filing Purpose
2.11.3 Pay slip
“It is a negotiable instrument like cheque issued by the bank on its own
account to pay a specified amount to the directed person.”

Use of Pay Slip

18
Pay Slips are used to make payment by the bank itself against certain
expenses incurred; like furniture purchased by bank, electricity charges.

Issuance of pay slip

 Bank issue a pay slip in favor of person, to whom payment is made.
 Affixes payee’s Account only stamp.
 Revenue stamp pasted on it.
 Entry in bank smart.

2.11.4 Cash Deposit Receipt (CDR)

AKBL also issues Cash Deposit Receipts (CDR).
“It is an instrument like Cheque issued by the bank on account of a
customer & in favor of a person, to pay the specified amount”.
CDR’s are issued to make payments, especially when a company goes for
some tenders or for purchase of government securities. The bank enjoys
the benefit of keeping funds deposited until the payment is not made.

2.11.5 Telegraph Transfer

Telegraphic Transfer or Telex Transfer , often abbreviated to TT, is an
electronic means of transferring funds overseas. A transfer charge is
collected while sending money.

2.11.6 Rupee Traveling Cheque

It is just a shape of Demand Draft. The difference is that it is not drawn on
the specified branch. It can be drawn on any branch of the same bank.
The paying bank has to verify the signatures and after verification payment
is made.

Cancellation of PO, DD and CDR

19
After issuance of Pay Order, Demand Draft or Call Deposit Receipt by
AKBL Abbottabad if any one of these has to be cancelled by the
customer, it is returned in the bank. Then, after deducting the cancellation
charges of Rs.100 for PO and Rs. 200 for DD, the remaining (net) amount
is paid to the customer.

Advance Tax against remittances

Advance Tax is deducted on issuance of PO & DD from customers except
those who have tax exemption form and credited in Tax on PO & DD
account. Tax deducted has to be paid to State Bank of Pakistan (SBP) with
in one week of issuance of these instruments.

Collection
All the cheques under collection are called cheques under Collection in
AKBL. There are two types of bills for collection:
 Outward Bills for Collection (OBC)
 Local Bills for collection (LBC)

2.11.7 Out ward bills for collection

Meaning of OBC:-
“When an instrument is drawn on a bank, which is located outside the city,
its proceeds can be collected through a mechanism called Outward Bills
for Collection (OBC).”
Features:-
 Remunerative
 Transfer of funds between cities
 Collecting Bank work as an agent
 Collecting Bank is the holder in due course
Procedure
All the cheques are received on one counter along with the paying slips
duly filled in properly containing particulars of cheques and account
holder. Counter folio of paying slip is handed over to the customer by
putting stamp for “cheque received for collection for AKBL” on it duly
20
signed by officer. These cheques are scrutinized and cheques for local
clearing are separated from OBCs. Cheques for local clearing are entered
in Clearing Register, whereas cheques for collection are entered in OBC
register. OBC number is allotted to the cheque from OBC register. Special
crossing and bank endorsement stamps are affixed on the cheque.

OBC Title Of Account Drawn Mailed Instrument Amount

Date Initi
No Account No On To No Rs.

Local bill for collection

If any other bank sends a cheque of AKBL, it is Inward Bill for Collection.
AKBL remits money after checking the balance of the customer account.
The process of collection starts when the cheques of AKBL are received
from other banks. Then these cheques are sent to the Head Office Karachi,
which sends the cheques to SBP for clearing and get the confirmation of
cheque and credit advice. Main activity of clearing is performed by Head
Office, which contacts other banks through SBP　

2.11.8　Clearing department

Meaning of clearing

The word clearing has been derived from the word “clear” and is defined
as:“A system by which banks exchange cheques and other negotiable
instruments drawn on each other within a specific area and thereby secure
payment for their clients through the Clearing House at specified time in
an efficient way.”

Explanation

21
By clearing means sometimes the account holder of AKBL present a
cheques, which is not drawn on AKBL but the person, has an account in
AKBL. In this case bank accepts this cheques in clearing department and
later on collets the amount from bank on which cheques is drawn through
clearing house. This function is called clearing.

2.11.9 Clearing House

It is a place where representatives of all banks sit together and interchange
their claims against each other with the help of controlling staff of NIFT.
It is one of the services provided by NIFT to other commercial banks.
NIFT acts as a clearinghouse. Different banks are the members of the
clearinghouse. A representative of each bank represents his bank in the
clearinghouse.
Each bank has collected cheques as behalf of their customer but these
cheques are not drawn on their own bank so in the clearinghouse, they
hand over these cheques to respective banks on which these cheques are
drawn. Similarly each bank receives cheques from other banks if any.

2.11.10 Types of clearing

There are four types of clearing

1. Inward Clearing
2. Outward Clearing
3. Intercity Clearing
4. Same Day Clearing
1. Inward Clearing
Those Cheques and other negotiable instruments which are drawn on
AKBL, sent by other banks, constitutes the inward clearing of AKBL.
After having all the stamps and dates of cheques confirmed, the concerned
drawer’s accounts are debited in AKBL Abbottabad.
Inward Return
Return may be of any reason
22
 Presentation Flaw e.g. Clearing stamp not affixed or wrong discharge
given by
collecting banker.
 Defect in the Cheques i.e. Post dated cheques, unauthorized cutting.
 Insufficient Balance.

2. Outward Clearing
When cheques and other negotiable instruments drawn upon other banks
like City Bank, ASKARI, UBL or Bank Askari of the same city
(Abbottabad) are presented in AKBL Abbottabad to deposit them in the
respective payee’s accounts, these instruments are lodged in outward
clearing of AKBL Abbottabad.

3. Inter City Clearing

The cheques that are presented in inter city clearing are of another city and
received by air. In this type of clearing the bank confirm at that time that
the cheques are clear or not and give to the rider.

4. Same Day Clearing

The cheques that are presented in same day clearing are the local cheques
and these cheques are clear in same day. Basically it is the benefit that are
provided to customer.
　

2.12 ACCOUNTS DEPARTMENT

This department is responsible to keep the record of each and every

transaction and prepare reports about the amount of deposits and advances
and sent to Head office or State Bank of Pakistan on monthly, quarterly
and yearly basis.
Activities
The accounts department deals with various routine activities for the bank.
The main activities performed by it are:-

23
a) Budgeting
b) Reporting
c) Maintenance & depreciation of fixed assets

a) Budgeting
Accounts department of a bank, for a year makes budget of every branch.
Fiscal year of bank starts from January 01 and ends on December 31. The
accounts department starts preparing budget from October for the next
year.

b) Reporting
The accounts department, in the form of reports, clubs the details of
various departments together. Each and every minute detail is provided in
weekly, monthly and annual reports. The reports are submitted to head
office, SBP and to the government. The accounts department prepares
many reports, of which the most common are:-
 Statement Of Affairs
 Income & Expenditure
 Business Report
 SBP Report
 Outstand Receipt Report
 Currency Wise Deposits Report
c) Maintaining of Fixed Assets & their Depreciation
Accounts department maintains the record of all the assets and charges
depreciation on them. The bank normally uses the straight-line method to
compute the depreciation.
It is calculated on monthly basis and charged yearly. Bank not only
depreciates the existing assets but also the assets but also the assets
transferred in and transferred out.　

24
2.13 CASH DEPARTMENT

The cash department is the most important department of the bank. It

receives cash from customers and then deposits it into the accounts of the
customers and maintained their balances.
The officers in this department are called teller and there were four tellers
at the counter. This department involves in two activates
1. Deposit cash in customer’s account
2. Make payments from customer’s account
Deposit Cash In Customer’s Account
When the customer want to deposit amount in his account at opening of
account or after that then he has to fill a deposit slip that shows the amount
and the account in which the cash will be deposited. Then teller will
receive amount and credit the customer’s account that shows increase in
customer’s bank account.
Make Payments From Customer’s Account
When the customer draws a cheque on the bank to pay a certain amount
then teller will debit the customer’s account that shows reduction in his
account balance.
There are two main types of cheques that are
1. Open Cheques
2. Crossed Cheques

1. Open Cheques
Open Cheques are those cheques, which are paid across the counter of the
bank. Open cheques may be
a) Bearer Cheques
b) Order Cheques.
c) Crossed Cheque

a) Bearer Cheque

25
If the drawer orders the bank to pay a stated sum of money to the bearer, it
is called a bearer cheque. Any person who lawfully possesses a bearer
cheque is entitled to receive payment of that cheque.

b) Order Cheque
The amount of this cheque is payable to the person whose name is written
on the face of the cheque. The amount is paid at counter after identification
of that person.

c) Crossed Cheque
The amount of this cheque is not paid at counter. The amount of this
cheque is transferred to the person’s account whose name is specified on
the cheque. Two parallel transverse lines are drawn across the face of the
cheque.

Kinds Of Crossing
Legally there are two kinds of crossing
a) General Crossing
b) Special Crossing

a) General Crossing
In case of General Crossing the payment can only be deposited into the
payee’s account only.
b) Special Crossing
In case of Special Crossing the payment can only be made to bank named
therein the cheque.

2.14 CREDIT DEPARTMENT

a good financial support when officials of this department invest money of

depositors into feasible projects by lending loans to various business

26
concerns. As the core activity of bank is to provide short-term finance,
which is mostly for working capital requirements. As business concerns
have money to complete the one production cycle, but it is not necessary
that amount would be received just after sale, but credit sales are also
made. So to finance next production cycle they obtain loans from
commercial banks on short-term basis, for continuity in operations.

Evaluation of client
This is the first requisite for team of credit department, to evaluate the
client's position regarding the financial and business performance concern.
As for as, credit policy of AKBL. is concerned, it doesn't given loan to
individuals & business concerns.

The five C’s of Credit

Credit team officials should be known as the five C's of lending. These are
discussed below:

i) Capital:
 The capital & resources of the borrower.
 The capital structure of the borrower and the gearing ratios.
 Is the borrower Under-capitalized?
 Does the borrower has its own resources to fall back on, in case of
need.

ii) Capacity:
 Capacity or the capability of the borrower to manage his business
profitably and the capacity to repay the advances and service the
facilities according to agreed terms.
 Is the borrower in a capacity to borrow? or is there any legal
complication?

iii) Collateral:
 The security provided against the facilities.
27
 Is the security provided: Adequate, Realizable, Marketable, Valuable,
Storable, Non-perishable, Durable, Transferable/with clear Title.
Transportable un-cumbered etc?

iv) Character:
 Is the borrower's personal character, market standing and reputation
impeccable?
 Has he met his part commitments?
 Does he have good bank reference.

v) Conditions:
 Have the conditions of lending been drawn up taking into account all
possibilities or
eventualities?
 Is the sector/industry in decline, is growing or it has reached at
plateau?
 Is there a market for the products and the market size to justify
production plans and
sales forecasts?
 Are the economic conditions feasible generally and for the business, in
particular?

2.15 CREDIT CARD DEPARTMENT

Types of Credit Card

 There are two Types of Credit Card.

 BACHELOR
 VISA
Further types of Visa Card
AKBL visa card offering following types of cards.
 Visa Gold
 Visa Classic

28
 Visa Classic Blue
 Women Exclusive

2.16 TRADE FINANCE DEPARTMENTS

Trade Finance involves the import and export activities. This department
provides protection to the rights of importer and exporter. The function of
this department is to serve as a bridge between the importer and exporter
in order to settle a transaction.
Trade Finance Department handles two activities:-
a)Import
b)Export

a) Import
Import Department of AKBL deals with the import of merchandise. Import
can be defined as:
“The bringing of commodities into Pakistan from outside by sea, land
or air.”
　
b) Exports
Exports are major sources of earning foreign exchange and play an
important role in the economic development of the country. It helps to
utilize excess resources of the country.
“Exports mean selling goods to another country.”
Exports of all eligible commodities through authorized banking channels
are admissible under exchange control regulation.

29
 CHAPTER 3
PRODUCTS & SERVICES

3.1 CONSUMER BANKING SERVICES

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

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.

3.1.2 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.
30
3.1.3 Askari Deposit Multiplier Account

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.

3.1.4 Value Plus Deposits

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

3.1.5 Askari Card

31
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.

3.1.6 Travelers Cheques

Askari Bank Limited has always remained at forefront in introducing

innovative and unique products in banking sector. Our financial
instruments provide greater financial freedom and security in an
unmatched way to our valued customers.

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

32
3.2 ASKARI FINANCE AND LOANS

3.2.1 Smart Cash

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

3.2.2 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.

33
3.2.3Mortgage 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.

3.2.4Business Finance

In pursuance of the National objectives to revive the economy of the

country, AKBL 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.

34
3.3ASKARI BANKING SERVICES

Banking was launched under the brand 'Askari Banking', by opening 6

dedicated Banking branches in major cities of the country. Further
expansion is planned with improved capabilities for offering products
conforming to the Shariah principles.

Askari Banking opens the doors for Halal banking solutions. Our objective
is to put in place an efficient banking system suuportive to economic
justice and welfare of society in line with Shariah standards.

A comprehensive range of Banking products and services is bieng

offered, in order to meet customer's demand of Shariah Compliant
Banking, in the following areas:

 Corporate Banking
 Investment Banking
 Trade Finance
 General Banking
 Consumer Banking

Banking products have been approved by the Bank's Shariah Advisor. As

per Shariah requirements, funds and products of Banking are managed
seperately from the Conventional Banking side. All funds obtained,
invested and shared in Halal modes & investments, under supervision of
the Shariah Advisor.

3.4 INVESTMENTS PRODUCTS

3.4.1. Askari Paishgi Munafa Term Deposit

Askari Paishgi Munafa term deposit account is an innovative addition in

the wide range of bank’s products and value added services. This unique
product will meet the immediate financial needs of individual investors

35
who want to invest funds for a medium term. The most significant feature
of this product is that the customer will receive the entire profit upfront.

Additional Benefits for Customers:

 Financing Facility up to 80% of Principal amount.

 Free Visa Debit Card issuance.
 No Minimum Balance requirement in checking account.
 Free Pay Orders in a month.
 No maximum limit for investment.

3.4.2. Askari Mahana Bachat Account (1 + 3 Years Term)

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.

If you need any further information / assistance, please contact your

nearest Askari Bank branch or call at our Toll Free number 0800 00078.
You can also mail your queries along with your interest in our various
other products too.

3.4.3 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

36
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.

If you need any further information / assistance, please contact your

nearest Askari Bank branch or call at our Toll Free number 0800 00078.
You can also mail your queries along with your interest in our various
other products to:

3.4.4 Askari Deposit Multiplier Account

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.

3.4.5 Askari value plus deposits

The Best You Deserve

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

Types of Value Plus Account

1) Value Plus Current Account

2) Value Plus Saving Account
3) Value Plus Time Deposits

37
3.4.6 Askari rupee traveller cheques

Askari Bank Limited has always remained at forefront in introducing

innovative and unique products in banking sector. Our financial
instruments provide greater financial freedom and security in an
unmatched way to our valued customers. Askari Bank offers you its
"Rupee Traveller Cheques" eliminating all financial risks while traveling.
So avoid risk of carrying cash through Askari Bank's Rupee Traveler
Cheques.

"Your Best Travelling Companion"

3.4.7 ASKCARD

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.

"Convenience at its best"

3.4.8. Internet Banking Services

In pursuance of our quest to provide the most modern service to our

customers, we offer banking through internet. Askari Bank is the first

38
bank in Pakistan to provide such service to its valued customers which is
absolutely FREE.

Important Features

 Balance enquiry
 Funds transfer
 Statement of accounts
 Chage of password
 Free payment of utility bills
 Payment of school fee

3.4.9 Electronic Bill Payment Services

It has always been our endeavour to introduce products and services tailor
made to the requirement of our valued customers. Now you can pay your
Utility Bills through:

 ASKCARD (Askari Debit Card),

 Askari bank's ATMs Nationawide

 Internet Banking Services

 Call Center.

3.4.10. Cash Management Services

Askari Cash Management Services, aimed to effectively manage the

accounts receivable portfolio of medium and large corporate entities.
While this service helps the corporate entities to improve their liquidity,
due to our well diversified branch network.

39
The service primarily aims at providing clearing, collection and cash /
transfer facility to corporate, 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.

3.4.11 Investment Certificates

Askari Bank's Investment Certificates not only provide the added security,
investment and monthly return to the customers. These certificates are
negotiable and can be transferred to third party. Investment Certificates
can be issued for a period of 3 months and profit is payable on monthly
basis through pre-printed tear-off coupons.

3.5 AGRICULTURE FINANCE SOLUTIONS

3.5.1 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 upto 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.

3.5.2 Kissan Tractor Finance

Traditional modes of cultivation viz 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 a Askari Kissan Tractor Finance to bring power to the
fields.
40
3.5.3 Kissan live stock development finance

In order to supplement the income of the farmer, Askari Bank has

launched a program enabling the farmer to purchase Milch Animals,
Goats, Sheep, Poultry and Fisheries without incurring extra expenditure
because of availablility 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 family’s 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.

3.5.4 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.

3.5.5 kissan farm transport finance

A grave handicap that afflicts our farmers is their inability, due to lack of
proper facilities, to take their produce 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

41
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 farmer’s community. Askari Bank true
to its commitment has taken the lead to launch Askari Kissan Farm
Transport Finance.

3.6 CORPORATE & INVESTMENT BANKING GROUP

(CIBG)

As Askari Bank, we understand the unique business requirements of our

corporate and institutional clients, and accordingly, strive to meet their
expectations through the provision of a customized, relationship based
banking approach, through the Corporate and Investment Banking Group
(CBIG)

CIBG is a one-window operation that provides all requisite banking

services for our corporate clientele in an efficient, dependable, consistent,
and competitive manner – the objective being to become your “bank of
first call” for all your financial needs.
CIBG is specifically structured to provide dedicated banking services and
products to its corporate customers through two key divisions.

Corporate Banking Division

Investment Banking Division

IBD provides value-added, specialist services and products through a

dedicated team of professionals, with world-class skills, to provide
customized solutions to help our clients meet their strategic objectives.
IBD is responsible for seamlessly originating, executing and distributing
all forms of investment banking transactions ranging from syndicated

42
 loans to complex structured and project financing transactions. Some
examples of products offered by IBD include:

 Strategic Advisory
 Privatization Advisory
 M & A Advisory
 Balance Sheet Restructuring
 Syndications
 Project Finance
 Finance
 Private Placements of Debt and Equity
 Issuance and distribution of Term Finance Certificates and Sukuk
Bonds.

ASK SONA CARD

Ask Sona Card is a joint venture of Askari Bank Limited (AKBL) & Fauji
Fertilizer Company Limited (FFCL), specially designed to create convenience
and cater to the business needs of FFCL and its dealers. It is an innovative,
high-tech electronic cash management solution that replaces the existing
conventional collections system. The payment/transaction specific debit card
is proprietary technology, with plastic money features which will
revolutionize the concept of transfer of funds.

Askari Bank has become the market leader in cash management solutions
with the launch of Ask Sona Card. Please visit your nearest Askari Bank
Branch to avail this facility.

 Features
 FAQs
 User-friendly

 Safe and easy to carry

 Plastic money, error free and cost effective

43
 Highest per-transaction limit of Rs. 2 million with
unlimited number of transactions in a day

 Instant transfer of funds from dealer’s account to FFCL account

 Instant confirmation of merchandise booking

 Ask Sona Card will only be used to purchase products from FFCL

 Ask Sona Card will have an expiration date of 5 years

 Zero issuance and replacement charges (once in a calendar year)

 Card accepted at all FFCL sales points across Pakistan basis

 Instant confirmation of funds transfer through SMS

ASKARI KISSAN EVERGREEN FINANCE

Features Details

Product Profit Earning Account

Type:

Eligibility: Pakistani resident (individual)

Security: Mortgaged charge on agricultural land through the Zari Pass

Book

Profit Profit on credit balances will be paid on half yearly basis as

Amount: declared by the bank on PLS savings accounts

Tenor: Yearly Basis

Markup: The mark-up is charged for the actual days the finance is
utilized

44
Benefits: A special cheque book is issued to the farmer

Automatic renewal upon adjustment of the entire

principle amount with an annual mark-up

The account is farmer’s friendly in two ways. If the

account is in credit, it earns profit, otherwise it provides
instant finance to the farmer for his agricultural needs

45
 ASKARI KISSAN TRACTOR FINANCE

 Features

Features Details

Product Profit Earning Account

Type:

Eligibility: Pakistani resident (owner as well as non-owner farmers)

Tenure: 5 years

Benefits: The farmer will have the privilege of availing non-

funded facility at reduced cost under this program on
account of more equity participation

Good farmer bonus will be available to the borrower

in case the loan is repaid as per terms of sanction

The farmer’s life, as well as his tractor will be

insured against contingencies, which will provide comfort
and peace of mind

Priority in delivery of tractor will be given by

manufacturer as per arrangements with the Bank

46
 CHAPTER 4
MARKETING

4.1 STRUCTURE OF THE MARKETING DEPARTMENT

Marketing Manager

Product Manager Brand Manager

(PM) (BM)

BM BM AM (Car)
PM PM PM Commercial House
Credit card Corporate Commercial

47
The marketing department of ASKARI bank is very integrated. It is well
structured as shown in the hierarchical chart. The marketing department is
based in head office. It is consisted of highly professional people .it is mix
of those people who got promotion from the sales and some are inducted
from the professional market of banking.

4.2 FUNCTIONS OF THE MARKETING DEPARTMENT

The banking sector of Pakistan is working in very volatile envirom-nent.
Our financial

Policies are consistent and persistent due to unstable political

Government and military interventions. Every one or second year, new or
amended policies are in place. In such a highly unstable and
unpredictable financial environment, the role and responsibility of
marketing team become very important.

Following are the functions of marketing team:

1. Every year, there is a corporate objective of ASKARI bank. It is both
strategically as well as financial. As per the objectives set the marketing
team develops or design marketing strategies to meet these commercial
and strategic objectives.

2. The research conducted is analyzed and used to develop products

3. If there is a new situation as per the new need in financial sector the
marketing team
adds new line extension in the product or launches new products
4. Working is done to identify the brands, images, value, brand contract
and position
5. New strategies are made increase the market share of consumer finance
as well as commercial finance.
6. New campaign on media, net and on branch are designed
7. New broachers are designed printed and circulated in the branches
8. As per the new situation due to the increasing interest rate, ASKARI has
also increased interest rate and its offerings on the saving accounts.

48
 4.3 Structure of the Sales Department

General Manager Sales

Sales Manager Sales Manager Sales Manager

Regional Head Regional Head Regional Head

Distt sales manager Distt sales manager Distt sales manager

Branch Manager Branch Manager Branch Manager

4.4 FUNCTION OF SALES DEPARTMENT

As is given in the structure of sales department, the head of sales is GM

sales reporting to CEO. He is assisted by Three Sales managers on the
basis of their zones. Each zone further is divided in the regions
.Each region is headed by a regional head. In the regional
headquarter there is District sales consultant for consumer banking Re
is the permanent employee of bank. He recruits and hires 6 to 10 sales
reps on commission base salaries. For the commercial banking, the
49
branch managers are responsible for the business. As consumer banking
is comparatively a newer business tool for the banking, the banks are
specially focusing on this important opportunity. Following are the
functions of sales department

 To understand the needs of the customer and the feature and

benefits of products.
 To pursue for the sales target set by the senior management.
 To achieve both the strategic as well as financial budgets.
 The implementation of strategies given by the marketing
department
 To translate the strategies into tactical plans and their execution
 The sales reps are also equipped with the tools for selling the
brands in this competitive world.
 They facilitate the leasing and loaning of car, home and credit
cards.
 As per the working of marketing department, the sales people are
provided with
 list of potential customers in a city or town. They have also
categorized the corporations as A*,B* and C*
 The sales force approaches the customers according to the potential
for different products of consumer banking

 On the basis of business transactions through the bank, of a trader

and salary of an employee, the bank gives leasing and loaning. The
employee of a category organization get maximum benefit and
enjoy larger limit for the credit card and can get their car or home
loan easily and promptly. Similarly the bank also does agriculture
loaning through one window operations and thus increasing its
market share m this segment.

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4.5 CUSTOMER SERVICES
As per the globalization, new national and multinational banks are
opening their set ups m Pakistan. The banks are reshaping their services
and service structures to meet the needs of customers. In the past very
few banks with monopolistic attitude were operating. The
saver/depositor was keep standing for hours to deposit his or her
savings. Today the customers are more demanding and the banks have
also become more customer’s centric. Now the banks have designed
customer service department.

Its job is to ensure the provision of bank’s services as per its SOP’s.
Considering the

Importance of this department, ASKARI bank has also has instituted a

customer service

Department. Now there is customer service officer or manager in each

branch. He keeps an eye on the whole staff observes that how the
services are being executed the branch online services to win the
customer’s satisfaction.
Welcome to a world of convenience with the ASKARI ATM 24- Hour
Smart Card. “It Works. Anytime in Pakistan and abroad” With an ever
growing number of ATMs operating across the nation, the ASKARI
ATM Network is the largest and most advanced of its kind in the
country, and is part of ASKARI’s continuing efforts to provide you with
convenience that suits your requirements most. And now the ASKARI
ATM has gone at the forefront of technological excellence,
ASKARI proudly introduces ASKARI, MOBILE BANKING. The
convenience of accessing your account balance information and mini
statements whenever you want or wherever you may need them, with
comfort and peace of mind.
ASKARI Mobile Banking service is available to all ASKARI ATM
cardholders, 24 hours -
365 days.

51
Just call our Help Line on 111-000-ASKARI (622) or any ASKARI
online branch for assistance
The state of the art ASKARI call center is the right choice to keep you in
step with your ever hectic schedule by providing you services relating to
your account and Smart card at any point in time.

Our well-abreast and friendly call center team is available 24 x 7, 365

days a year to ensure that your daily financial obligations are taken
care of guaranteeing you a good night’s sleep.
 General Inquires
 Financial Services
 Non Financial Services

ASKARI easy bill pay offers unmatched convenience to pay your utility
and mobile phone bills or re-charge your prepaid mobile phone accounts
anywhere, anytime with security and peace of mind. ASKARI is the
only bank that offers you 3 convenient options of making bill
payments to PTCL, SSGC, SNGPL, KESC, Interphones, Mobilink,
Paktel and U-fone. So, save your precious time by avoiding long
queues and pay your bills through ASKARI Easy Bill Pay. ASKARI
Smart Card or ASKARI ATM Card Holder can easily pay their bills or
re-charge their prepaid mobile phone account through the following
convenient

52
ESTABLISHING MORE FOREIGN BRANCHES.
They should introduce Student Finance Facility.

They should also introduce mobile ATM

4.6 PEST ANALYSES

4.6.1 POLITICAL, Governmental, and Legal Forces

            The political and legal environment of Pakistan has been showing
great instability for past several years. This turbulence has great impact on
the business environment. The instability brings with it changing
legislation and poorly developed polices. These changes affect the way
businesses plan their course of action. So in case of changing and
inconsistent policies; businesses strive to catch up and bear heavy losses at
times. Banking sector especially depends on the business activity in the
economy and their profitability takes a hit if the economic activity is
suffering.
Legal forces also play a crucial role in the banking sector, the laws of
conformance to banking ordinance of the domestic country as well
compliance to international standards is of critical importance. Thus we
can now easily understand that the political, governmental and legal forces
should not be under estimated in case any activity is to be carried out.

4.6.2 Economic Forces:

            Economic forces include all the forces that reshape an economy;
that can include GNP growth, market activity and impacts of the monetary
policy of State Bank of Pakistan. The recent economic survey revealed the
Real GDP grew at a rate of 7% in 2007. Agriculture on the other hand
showed 5% growth that shows a window of opportunity for banking
sector. Similarly, these changes in the economy offer opportunities for the
banking sector.
State Bank of Pakistan develops the monetary policy and these affect the
primary strategies of banks. SBP has also issued regulations for minimum
paid-up capital, number of branches, capital adequacy and other

53
restrictions that are critical to the banking operations. The new policies
pursued by SBP encourage banks to start Islamic Banking operations and
is also taking an aggressive stance to support mergers and acquisitions in
the banking segment. Thus, it is evident that the economic forces also play
a vital role and should be closely observed in order to achieve established
targets.

4.6.3 Social, Cultural, and Demographic Forces

            Social forces also play an important role in the business
environment. In Pakistan, culture defines preferences of the customers and
their behavior. In the banking sector, increasing trends of people to opt for
personal loans and personal credits have benefited the banks tremendously.
Banks were able to net huge profits on personal financing and credit cards.
Such customer trends are therefore, of great importance and banks that
align their products and offerings according to that can enjoy profits and
growth.

4.6.4 Technological Forces

            Technology is one force that has reshaped every aspect of our lives.
It also impacts the banking industry in a great manner. Due to
advancements in technology and greater accessibility due to internet, E-
commerce has made a huge space for itself in the conventional business
environment. Following the trend, E-banking and now more recently
mobile banking has changed the way banks used to offer their products
and services. Today no bank can maintain its competitive edge without
incorporating e-banking and mobile banking in its product portfolio.
Similar changes such as De-centralized banking operations are now more
efficiently managed due to the presence of communication systems.
Moreover, cases of defaulters are now easy to track due to electronically
managed data which is also shared among banks.

4.6.5 Global Forces

Technology has brought the world together as a single community. It has
diminished the so-called territorial boundaries. Now banks not only
54
compete in their geographic boundaries but instead have reached to
expanded markets. Though globalization presents various growth
opportunities; it also poses some managerial threats. Doing business in the
global environment means dealing with diverse customer needs and
preferences and it takes very critical analysis of these diverse markets to
come up with quality products and services. Moreover, going global also
means understanding political, legal and social forces that exist in distinct
territories. However, above all, globalization is one force that if harnessed
properly can bring tremendous growth and prosperity to the banking
industry in Pakistan.

4.7 PORTER’S FIVE FORCES MODEL

Porter’s five forces model of competitive analysis is providing us a support
to develop strategies. Following are the various forces analyzed:

 Rivalry among Competitors = High

Reasons:
 Large numbers of competitors

 Other banks have almost equal size and capabilities

 Customer can switch to other banks easily

 Barriers to leave the market are high

 Fixed cost is high

 Mergers and acquisitions are common

 Potential Entry of New Entrants = Medium

Reasons:
 Mergers and acquisitions are common

 SBP has restricted commercial banking

 Islamic banking is widely promoted by State Bank of Pakistan

55
Potential Development of Substitute Products = Medium
Reasons:
 Loaning Institute

 Insurance institute

 
Bargaining Power of Supplier = High
Reasons:
 Large number of suppliers

 Strength of supplier

 Bargaining Power of Buyers = High

Reasons:
 Customers can easily switch to other banks

 Consumers are as important for the bank

 Consumers are well informed about banks’ products, prices

and costs

4.8 BANK ASKARI BCG MATRIX

This product portfolio matrix classifies product lines into four categories.
The BCG model suggests that organizations should have a healthy balance
of products within their range. The Boston Consultancy Group classified
these products as following:

 Dogs
 Question Mark/Problem Child
 Star

56
 CHAPTER 5
FINDINGS/ RECOMMENDATION

Findings and Recommendations are considered to be the most important

part of internship report, without which no report is considered complete
and meaningful. Realizing the importance of this section, efforts have been
made to give feasible recommendations, which are categorized under the
following headings.

5.1 Findings

5.1.1 Employee empowerment

Bank recognizes its employees as the prime asset and key contributors to
the performance of the bank and places great emphasis on the attraction,
development, and motivation of its employees.

5.1.2 Better compensation packages

During the year, the compensation package was substantially improved in

order to Enhance employee’s motivation and loyalty.

5.1.3 Involvement of Higher Management

Whatever AIBL have achieved would not have been possible without the
patronage and support of the manager, which is greatly appreciated and
acknowledged.

5.2 Conclusion

After analyzing Askari Bank as a whole and its Finance department in

particular the following outcomes have been concluded:

57
  One of the major aspects regarding the efficiency of entity is to
focus on the financial management concerned with the acquisition,
financing & management of asset with some overall goal in mind.
It has been observed that the bank relies more on its interest rate
giving less attention of utilizing its earning assets.

 It is concluded that the bank’s ability of decision making is

effective and profitable but its charges may effect on its deposits.

 The bank’s shareholders fund is showing percentage more than the

share capital, which shows that the bank own capital is less than
the shareholders capital.

 Increasing trend in ROA indicates that Askari bank is profitable

relative to its total assets; it means the return on the investments is
positive.

 Analysis shows that return on earning assets have decreased as

compared to 2009 analysis which indicates that the income
generated by the assets for the bank has decreased.

 Cost to income ratio of the Askari Bank has slightly increased,

which indicates that the firm is less efficient in reducing its cost.

 Corporate customer credibility has decreased during time.

5.3 Recommendations

 Low interest rate should be imposed on advancement of loans

and high rate of profit for depositors. Deposit growth and loan
growth are also both important. If deposit growth is weak, other
more expensive sources of funds might have to be tapped.
Likewise, if loan growth is sluggish, it will be more difficult for
the bank to earn a profitable spread on the money it controls.

58
 SBP should maintain the interest rates

 The bank should be efficient in collecting the outstanding

loans.

 Bank should control their administrative expenses and spending

in order to maintain a optimal efficiency ratio.

 Higher margins can be a sign of great management. But it could

the result of riskier lending policies. Narrower margins can
suggest trouble on the deposit side and a higher cost of funds.
Or it could mean more conservative lending practices. Context
matters when comparing numbers.

 Bank should enhance and utilize their earning assets for income
rather than depending on the loans and interest income.

 The higher authority should form team-based manager rather

than centralized management. It would result in improvement
in uplifting the morale of the employees. They will be more
motivated and involved in all their operations resulting in
overall effectiveness of the organization.

59
 REFERENCES

 AKBL Annual Report of Askari Bank Limited for the year 2016

 AKBL Annual Report of Askari Bank Limited for the year 2017

 Iffland, Charles & Langueton, Pierre. (1996); International

Banking. New York. Irwin Book Co:

 Khan Rana, Safdar Hussain & Ahmad, Shabir. (1991); Banking

Currency and Finance. Lahore Ilmi Kutab Khana:.

 Saeed, M Nasir. (1994); Economics of Pakistan. Lahore Ilmi Kutab

Khana:

 Siddiqi, Asrar H. (1998): Practice And Law Of Banking In

Pakistan (6th Ed). Karachi. Royal Book Co:

 www.Askari bank.com.pk (last accessed on 3rd July 2017)

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