Professional Documents
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Askari Bank Internship Report
Askari Bank Internship Report
Askari Bank Internship Report
Submitted To
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Chapter no.1 Introduction
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1.2. Objectives of the Study
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Chapter no. 2 OVERVIEW OF THE ORGANIZATION
COMMERCIAL BANK
“The commercial bank receives surplus money from the public and lend to others
who needs funds. Bank collects cheque, bills of exchange etc from customers. It
transfers money from one place to another. It provides agency and general utility
services. Purpose of commercial bank is to earn profit.”
Askari Bank has stretched into a network of 200 branches /sub branches,
including 20 devoted Islamic banking branches. The Bank is listed on Karachi,
Lahore and Islamabad Stock Exchanges. A shared network of 2,991 online
ATMs layers all major cities in Pakistan chains the delivery channels for
customer service. As at December 31, 2008, the Bank had equity of Rs. 12.97
billion and total assets of Rs. 206.19 billion, with 816,629 banking customers,
serviced by our 6,808 employees.
Askari Investment Management Limited and Askari Securities Limited are
subsidiaries of Askari Bank occupied in managing shared funds and shares
brokerage, respectively.
Askari Bank is the only bank with its equipped head office in Rawalpindi, which
have comparatively limited opportunities as compared to Karachi and Lahore.
This created its own challenges and opportunities, and forced as to evolve an
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outward-looking strategy in terms of Askari market emphasis. As a result, Askari
residential a geographically diversify assets base instead of a concentration and
heavy dependence on business in the major commercial centers of Karachi and
Lahore, where most other banks have their operational Head offices.
The branch of Askari Bank was opened in Gujrat in June, 2002. Gujrat is a
famous from fan and furniture industries, so to get the export market of these
industries ACBL opened its branch in Gujrat. In short span of time this branch
increased their business remarkably.
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Core Values:
Honesty 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
corner stone’s of our corporate behavior, are
i. Commitment
ii. Integrity
iii. Fairness
iv. Team-work
v. Service
Corporate philosophy:
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ii. Build and sustain a high performance culture;
The banking sector has witness a remarkable change during the last ten years
with the development of Askari Bank, which is not only redefining priorities and
focus of the banks, but also threatening the domination of traditional players.
The story begins with the integration of Askari Commercial Bank limited in
Pakistan on October 09, 1991, Askari Bank Commenced (begin) to operations in
April 1992, as a public limited company. The bank is listed on the Karachi,
Lahore and Islamabad Stock Exchanges and the initial public offering was
oversubscribed by 16 times.
While capturing the target market share amongst the view banks, Askari has
provided good value to its shareholders. Its share price has remained just about
12% higher than the average share price of quoted banks during the last four
years.
Bank had equity of Rs. 6.016 billion and total assets of Rs. 107.168 billion, with
over 475,000 banking customers, serviced by a total staff of 2,118.
Askari Bank is the only bank with its operational head office in the twin cities of
Rawalpindi-Islamabad, which have relatively limited opportunities as compared to
Karachi and Lahore. This created its own challenges and opportunities, and
forced as to evolve an outward-looking strategy in terms of Askari market
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emphasis. As a result, Askari developed a geographically diversified assets base
instead of a concentration and heavy reliance on business in the major
commercial centers of Karachi and Lahore, where most other banks have their
operational Head offices.
Historically, Askari’s core marketing focus for its asset base has been the middle
and upper middle business houses (including wholesalers and manufacturers)
operating in the large urban centers of Pakistan, which are primarily oriented
towards foreign trade. This segment constitutes significant revenues to the bank.
The liability side remains focused on the middle and upper middle class retired
and serving government and armed forces personal and mid-size business
houses. Their corporate banking division was established in April 1999 with the
primary focus on servicing large corporate and multi-national companies (MNCs).
Benefiting from the bank’s growing balance sheet size, this division B now
gaining momentum and their long-term aim D to develop it into an independent.
Strategic business unit (SBU)… This would the bank to acquire, develop and
specialized abilities, and enhance their focus on serving the emerging needs of
the corporate clients.
With this branch network of 75 and further expected increase in future, the ATM’s
facility and internet Banking, Askari Bank’s reach is ever increasing. In
recognition of this reach, they have set up a retail-banking group in July 2000,
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the mobile ATM’s facility is first time started by Askari commercial bank in 2005
dedicated to serving the urban consumer market; Askari is committed to
aggressively market this segment. The strategy is to provide their customers with
a basket of innovative products to meet their varying needs. Askari Commercial
Bank is the only Private Sector bank that has been approved by the World Bank
as a Participating Financial Institution for the US$ 200 million Line of Credit
sanctioned (authorized) to the Government of Pakistan for the Financial Sector
Deepening and Intermediation Project.
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Army Welfare Trust directly and indirectly holds an important portion of the
Bank's share capital at the period end. The Bank has 150 branches (December
31, 2007: 150 branches); 149 in Pakistan and Azad Jammu and Kashmir
including 14 Islamic Banking Branches and an Offshore Banking Unit in the
Kingdom of Bahrain.
Corporate Information:
Board of Directors
Mr.Rafiqueuddin President
Audit Committee
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Mr. Zafar Alam Khan Member
Askari Bank achieved planned growing in concern and military operation during
2009.The total possessions of the bank amounted to RS. 254 billion as on
December 31, 2009, registering an increase of 23 percent over December 31,
2008.
ACBL is the first and so far the only Pakistani Bank in private sector to have been
rated as A1+ for short term category and A+ for long term category by
PACRA(Pakistan Credit Rating Agency). The rating of A1+ is the highest
category and stands for “obligations supported by the highest capacity for timely
repayment”
In 1994 ACBL earned International recognition as Asia currency Award and the
statute title of Best commercial message Bank of Pakistan for the year 1994
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while monetary unit money stated the depository financial institution as topper
domestic depository financial institution of Pakistan for the year 1995.
“Best Presented Annual Accounts” awards for 2000and 2001 from the
Institute of Chartered Accountants of Pakistan and the Institute of Cost and
Management Accounts of Pakistan, Prizes from the South Asian Federation of
Accountants for The best Presented Annual Accounts” for the financial sector, in
the SAARC region.
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During the year 2009, the annual report of the Bank for the year 2008 won:
The first prize of “The Best Annual Report” for the financial sector,
instituted jointly by The Institute of Chartered Accountants of Pakistan and
The Institute of Cost and Management Accountants of Pakistan.
Investment Banking
Consumer Banking
Treasury & International Banking
Agriculture Banking
Islamic Banking
Investment Banking
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The main activity involved in investment banking debt/capital markets, advisory
services and trading (both equities and bonds) in this portion following are the
products are involved:
Commercial Paper.
Debt Capital Markets
Capital Raising
Trading activity (equities and derivatives)
Consumer Banking
During 2007, the consumer banking services obtainable by the Bank were
updated by combining consumer financing business and credit card business
under one umbrella and were renamed as consumer banking service group. In
this portion following are the products are involved:
PERSONAL FINANCE
Personal Finance is a parametric quantity driven merchandise for
business to the needs of the full general public happiness to unlike
segments. One can help unlimited opportunities through Askari Bank s
Personal business. With unmatched business features in terms of loan
sum payback time period and most affordable serial installments Askari
Bank s Personal business makes certain that one gets the most out of his
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her loanword. Once a good credit history is established, the door to
opportunity opens much wider .
MORTGAGE FINANCE
BUSINESS FINANCE
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receive the financing required by them based on their cash flows.
ACBL’s valued customers can enjoy the convenience of getting
financing on attractive terms with the minimum processing
turnaround time.
Yet another of our products, Askari offers the most convenient and
affordable vehicle- financing scheme, which provides our valuable
customers an opportunity to own a brand new vehicle of their choice.
With minimum down payment, lowest insurance rates and widest
range of available car makes and models, Askcar offers the best
value to our esteemed customers.
ASKCARD
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Treasury and International Operations
During 2007, the bank increased its overall foreign trade business. The import
business increased to Rs. 119.3 billion. I.e. growth of 11% over last year, while
the exports increased by 6% over last year, to Rs. 97.3 billion.
Products:
In agriculture credits financing the banks facilitate the following schemes to the
public:
During the last year Islamic banking was launched under the brand ‘Askari
Islamic Banking’ by opening 6 devoted Islamic Banking Branches in main cities
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of the country. In order to meet customer’s demand for Shariah Compliant
banking, in the following areas:
2.4.2. ACCOUNTS
Current Account.
Saving Account.
Askari Special Deposit Account.
Term Deposit.
ADVANCES
Advances are major sources of earning of income for commercial banks. Banks
attracts excess balances from the customers at low interest revenue
enhancement makes advances at higher involvement rates to the individuals or
concern firms.
Funded facilities
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Non- Funded facilities
Funded facilities
In funded facilities the bank actually advances money against further repayment.
These facilities are known as cash credits.
1. Guarantee
2. Letter of credit
Irrevocable letter of credit
Revocable letter of credit
Sight letter of credit
Usance letter of credit
2.5. Pestle analysis
Political
Pakistan despite all international and public perceptions, today is a functioning
democracy and gradually there is a change in complexion and composition of
legislatures with more educated people and women (27% of National Assembly
and 17% of Senate) entering into politics Similarly it helps in designing best
strategies to implement that could support the revival of bank industry. Like in the
time of nationalization banks had to suffer as other industries that’s why that
impact is still found in the presentation of this industry.
Economical
Although banking aspect development is important at the other stage of
economic maturation general relaxation presuming a homogeneous banking
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concern role may not necessarily promote maturation. The estimated monetary
value construction indicates that province closely-held commercialized Banks are
ample sufficient piece evolution business institutions and secret Banks can
expect to obtain monetary value good advantages by expanding their trading
operations. Since scope economies are important portfolio variegation generally
increases bank net income. In addition privatized banks are the most efficient
followed by strange and buck private banks. Public banks are the least efficient.
Social
Technology
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roadmap for the future. Here are the top three concerns in the mind of every
bank's CEO. The customer is interested in how he/she can benefit from the bank
and its products. That's why it becomes necessary for a bank to differentiate its
products from the others. Some of the ways in which differentiation can be
introduced are through specialization, new products, and increasing the added
value.
ACBL has been at the top of economic development in the country. It has period
of play the old age funded projects which topper serve the economic objectives
and sociable needs of the state. The bank has made enormous contribution to
the evolution of body part and culture medium sized entrepreneurs and to self
employ schemes. ACBL realizing its responsibility towards improving natural
environment accepted the challenge of planting saplings in an area of
3,000 hectares where severe deforestation has occurred over the years in the
districts of Umerkot, Tharparkar and Mirpurkhas.
The bank was celebrated for its contribution in setting “Business World
Record” for planting maximum number of trees in a single day. The record was
set on 15th July 2009 in an area of Kati Bundara under the president’s Mass
Forestation Program for plantation of 400,000 mangrove tree seedlings.
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Chapter no. 3 Organizational structure
Each lower office is under the control and supervision of a higher one. This
bureaucratic principle helps the management of ACBL to control over every
member in the structure.
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Geographical centralization means that the organization has all its operations
under one roof. Geographical decentralization means the dispersion of
Organization operations through the country. SIL has its operating office in
Lahore and Karachi, which show that it is geographically decentralized.
2) Functional
An organization has separate department that performs such as selection or
training for others is called centralized organization and if the various functional
departments (for example; marketing, production and finance) handle their own
human resources functions then it is considered decentralized organization. In
SIL, functional level is centralized.
3) Delegation
In ACBL, the structure of the organization is tall with a few members at each
level. As a result there is narrow span of control and supervisors have close
control over their subordinates.
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3.1. Organizational Hierarchy chart
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3.2. Number Of Employees
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Banking procedures are divided up between diverse departments. Different
departments do their jobs in synchronization with the bank policies. In Askari
bank each branch is divided into various departments.
4. Preparing Checklist.
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5. Stamping on the form.
6. Maintain account opening register.
7. Pasting of forms in register after release from general banking in charge.
8. Issuance of cheque books.
1. Pay Order
2. Demand Draft
3. Pay slip
4. Telegraphic Transfer
5. Payment of Remittances
Instrument transfer
Electronic transfer
Mail transfer
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CASH DEPARTMENT
All physical movement of cash in the bank is made through the cash department.
Normally cash department performs following functions:
1. Receipt
2. Payments
3. Act according to any standing instructions
7. Posting
1. Since clearing does not involve any cash etc. And entire written account take
property through record book entries the number of transaction can be straight-
out
2. No cash is needed as such the risk of robbery, misuses and pilferages are
totally eliminated.
3. As major payments are ready-made through glade the Banks came manage
cash payments at the counters with a lower limit amount of cash in vaults.
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4. A lot of time, cost and labor are saved.
5. Since it provides an extra service to the customer of banks without any service
charges or costs, more and more people are inclined and attracted towards
banking
Although the study of money is important for the understanding of the way in
which our economic system operates, we must recall this point that most
exchange transactions in this system are carried on today without the use of
actual money, i.e. Those are carried on by means of credit and credit instruments
rather than money. While money still forms the basis of credit.
The term "foreign exchange" is used to denote either a foreign currency or the
rate at which one currency is converted into another or the means & methods by
which one currency is exchanged for another.
5. Inward remittances
6. Daily Reporting
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3.5 Comments on the organizational structure
Organization structure;
The official pattern of how people and jobs are grouped in a concern.
Departmentalization;
Chain of command;
Is the constant line of power that expands from upper organization level to
the lowest level and clarifies who report to whom?
Span of control;
In my point of view, the structure of ACBL is simple active and unify decision
making the whole department is report to operational manager and then he
report to branch manager. The jobs duties and responsibilities are apart into
entire section but due to little figure of worker in ACBL jobs responsibilities are
portion between employees. Centralize decision making make the distance
between the top level and lower level manager. The main benefit of centralize
decision devising is supervisory program can justice and evaluate the public
presentation of all employee.
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Chapter no. 4 Brief Introductions to Branch
Askari commercial Bank started its operations in 1992, and head office of Askari
commercial bank in Rawalpindi. ACBL has 75 branches in Pakistan. One of the
branches is located in Hassan Plaza G.T road Gujrat where I have done my
internship of six weeks period. There are 32 employees and the environment of
bank is very self-motivated and attractive. The branch Manager Mr. sheikh Javed
is very hardworking.
The business volume of the branch is twenty million and it has the following
departments;
Remittances Department
Cash Department
Agricultural Department
Accounts Department
Credit Department
IT Department
Clearing Department
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4.2 Details of supervisors
Assistant: Mr.Shams-us-Din
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4.3 Weekly Timetables
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4.3.2 WEEK 2(25 July, 2013, 31st July ,2013)
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Date Day Department Activities Signature
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DATE DAY DEPARTMENT ACTIVITIES SIGNATURE
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15-8-2013 Thursday Remittance Introduce about new task
department of
Remittances Department
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26-8-2013 Monday Remittance Introduce new task of
department Remittances Department,
that issuance,
procedure of the Pay
Order
DEPOSITS DEPARTMENT
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Deposit is the functional component of a Askari Commercial Bank. No bank can
run its operations without deposits. Main function of a commercial bank is to
channelize saving from the savers to the ultimate users of funds. The process of
collecting saving is called Deposit Mobilization. Two board categories of deposits
with reference to time period are:
Demand Deposit:
These are payable on demand. They include current account, varied deposit
(e.g. margin account) and call deposit receipt. No profit is given on demand
deposits.
Time Deposit:
Payable on demand with certain maturity. Attracts profit with respect to time.
OPENING OF ACCOUNTS:
a. INDIVIDUAL ACCOUNTS
d. AGENCY ACCOUNTS
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e. CLUBS, SOCITIES AND ASSOCIATIONS ACCOUNTS
g. TRUSTS
I. PROPERITORSHIP
j. JOIN ACCOUNT
Individual Account:
Mean opening accounts of the partnership firms the business concern deed from
registered firms is needful to be obtained in addition to account opening night
form and specimen signature card. The partnership letter is incorporate in the
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account opening form which must also be gestural by all the partners of the firm
weather condition registered or un certified
Copy of Resolution:
a. Memorandum of Association
b. Article of Associate
c. Certificate of Incorporation
Accounts of Agents:
An agent is the person who is allowed certain acts in behalf of another person.
The person for whom he has to carry out the business is called the principal.
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Clubs, societies and associations concerns are non trading and non-profit in
nature. They have their own rules and their affairs are monitored by committees,
which may be called governing bodies or managing committee or executive
committees.
e. Letter of registration.
f. Letter of undertaking to the effect that as and when change takes place
they will inform the bank of such changes.
Saving deposits were launched to repeat and give confidence the of saving
among people of small income in order to achieves of Islamisation of the banking
system in the country, the government authorized the Askari commercial bank to
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accept Saving Deposit on profit and loss sharing basis. Deposits received under
this scheme are invested in non-interest bearing advances and other avenue so
as to remove the element of interest.
Current Account:
Fixed or term deposits are the major source of funds of a commercial bank. Term
deposits, as the name implies, are deposits kept with a bank for a certain period
of time. They are not payable on demand like the current deposit. The depositor
can only withdraw them after the specified period of time. The persons or firms
self-assurance churchlike bodies which wealthy person surplusage monetary
resource livelihood the medium of exchange in rigid deposits with banking
concern.
Check book is issued for only electric current account PLS account and ASDA
FISDA and FAIDA accounts. It is not issued for PLS Term Deposit and value plus
Saving Accounts, because in these accounts, amount cannot be withdrawn
within a fixed time period.
REMITTANCE DEPARTMENT
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The need of remittance is generally felt is commercial life mostly and in everyday
life generally. The major function of the remittance department is to transmit
money from one place to another. By providing this service to the customer, bank
earns a lot of income. Also customer is able to meet its day to day financial
requirements.
Demand Draft:
It is a tool payable on demand for which value has been estimated, issued by the
branch of the bank drawn i.e. to be paid at some other place (branch) of the
same bank. If two banks are involved then the DD is sent to other bank but in
other case it is handed over to the candidate.
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DD is received by the bank.
The DD credit advice is received through mail. The numbers are
checked and signatures are verified.
An entry is made on the DD payable registry and the vouchers are
made.
DD credit is attached with the vouchers and presumption for poster to
the computer
When DD is received the test numbers are checked and the payment
is made.
Vouchers are presumption for poster and the entry that was ready-
made in the register is closed i.e. DD payable is nil.
It is the quickest means of transfer of funds from one place (Branch) to other
place (Branch) of the same bank. Generally a mail service conveys proposal
reaches the drawer subdivision the following day done courier employment. But
sometimes, a client demands that his funds should be transferred through the
quickest way. In such cases, transfer of funds message is passed through
telephone or telegram.
This mode of transfer was used before online. Online system is very effective for
this purpose now-a-days. In Askari Commercial Bank online scheme is used.
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Then a TT is made on colorless slip. There are 3 copies, the original
one is faxed to the Branch, one to the Head Office and one is kept for
record.
The entry is made in the TT issuing registry.
When payment bill is received, it is attached to the TT office copy in
the file.
When a TT arrives, the test numbers are checked and the signature is
verified.
The entry is made in the TT payable registry.
If there is no account then the TT received needs income stamp and
then payment is made. TT receipt is strictly fixed.
Pay Order:
It is an instrument issued for payment in same city. Pay order issue from on e
branch can only be allocated from the same branch. It is normally referred to as
banker’s cheque. It is also called confirmed cheque, because bank issues this on
it own guarantee.
Issuance Procedure:
The standard form is given to the client. He fills in the facts and signs
it.
The concerned officer checks the form.
Bank charges (or commission) as per the schedule of charges and the
withholding tax of 0.3% are applied.
The cash amount of the pay order is received.
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A cash memo is signed, stamped and handed over to the candidate as
a receipt.
Then the pay order receipt is filled consequently.
Counter foil is also packed.
An entry is made in the pay order issue register.
Then the authorized officer signs it after checking the pay order.
The order is then handed over to the candidate after obtaining his
signature on the PO Form.
A voucher is also made and post at the computer.
Payment Procedure:
On presentation of the pay order receipt, two authorized officers of the branch
sign the receipt.
Pay Slip:
It is a tool issued by the bank for the completion of its own payment. It is used for
payment by the bank to anyone (may be employees) in this case only one bank
is involved. He is the issuer as well as the payer.
No eliminate Duty
No Commission
Issuance:
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A recognition voucher is sent from the account department to the
remittance department.
Pay Slip book is taken out and filled according to the recognition
voucher.
It is entered in the pay slip register.
It is signed by authorized Officer.
A voucher is prepared and posted.
Pay Slip is then handed over to the customer.
Payment Procedure:
Pay Slip is just like a cheque and bank is liable to pay against pay slip.
After that when the pay slip is received by the bank for payment, it is
again transferred in the register.
Then payment is made and it is posted in the computer.
The bills, which are received by the bank and sent to other cities (branches) for
the local clearing in that city, are called Outward Bills for Collection.
Procedure:
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On clearing, the particular banks send back the OBCs along with the
IBCA (Inter Branch Credit Advice).
The OBC numbers are checked from the OBC register, after those
entries are made.
Commission charges are deducted from the account.
The bills, which are received by the bank from other branches out of the city for
local clearing, are called Inward Bills for Collection.
Procedure:
The OBC of other branches will be the IBC of this branch. So an OBC
forwarding schedule is received by mail.
The cheques are entered in the IBC registry. The IBC numbers are
chosen to them.
The cheques are lodged for clearing.
After recognition, an IBCA is arranged and mailed to the branch from
where the cheque was received.
At the end of the day, two vouchers are ready and posted.
CLEARING Department
Outward Clearing
Inward Clearing
The following points are to be taken into concern while a tool is accepted at the
counter to be presented in outward clearing:
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1. The name of the branch appears on its face where it is drawn on
7. If order tool, duly authorized and last endorsee’s account being credited
9. The amount of the tool is same as mention on the paying-in-slip and stump
If a tool is in order then out bank’s special crossing stamp is affixed across
the face of the tool. Clearing stamps is affixed on the face of the tools, paying-
in-slip and counterfoil (The stamp is affixed in such a manner that half
appears on paying-in-slip and half on counterfoil). The tool is suitably
discharged, where a bearer cheque does not required any discharge and also
a tool in favor of a bank need not be discharged. The tool along with paying-
in-slip is retained while the counterfoil is given to the customer duly signed.
Then the following steps are to be taken:-
1. The particulars of the tools and the and the pay-in-slip or credit
vouchers are entered in the Outward Clearing Register.
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2. Serial number is given to each voucher
3. The register is balanced, the credit voucher are separated form the tool
and are released to respective departments against tool and are
released to respective departments against acknowledgement in the
register
7. The schedules and house pages are signed by the officer incharge with
branch stamp
8. The grand total of the house page is taken and agreed with that of the
outward clearing register
9. The tools along with duplicate and house page are sent to the Main
Office
3. The entry is made in the Inward Clearing Register (serial number, tool
number, account number, amount of the tool is written).
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4. The tools are sent to the respective departments against acknowledgement
in the Inward Clearing Register.
5. The tools are scrutinized in each respect before honoring the same
Import
Export
Foreign Remittance
1. IMPORT:
The international trade transaction, in which one country buys goods from other
country, is called import.
The import trade in Pakistan is governed by import and export Act of 1950.
Previously, the regulating body of imports was controller of Import and Export.
But this function has been shifted to Export Promotion Bureau.
The individuals and firms who desire to import goods from the foreign countries
are required to obtain import license.
Contract of sale: After getting the license, the importer then negotiates with the
exporter. When they reach to an agreement on all terms of sale, they sign a
contract. Thus contract includes all information of terms and condition of sale.
Letter of credit:
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Foreign trade payment problems are mainly solved by a letter of credit. A letter of
credit is issued by the importer’s bank. If guarantees payment to the exporter up
to specified amount of money provided the terms and conditions laid down the
L/C are fulfilled.
2. EXPORT:
This department deals with the transactions, which relates to sale of goods in
foreign countries and receipt of foreign exchange from abroad.
Documentation:
E-Form
Bill of exchange
Export invoice
Packing list
Bill of lading
Certificate of origin
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3. Foreign remittance:
Customer dealing
Filled the different documentation relating imports and exports
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4.6 Tasks assigned to me:
I did my internship in Askari Bank Limited (Hassan Plaza G.T road Gujrat). My
timings were 9am to 4pm. During that time period I was assigned different tasks.
First of all the bank Manager, Mr.Javeid Sheikh, told me about the rules and
regulations of the Askari Bank and the basics of some operations of the
departments in the bank. In six weeks I have performed different activities like
account opening procedure, remittances, chequebooks issuance, bills collection,
vouching, clearing and credit granting procedures.
Working with Askari commercial Bank Limited, for internship project added a
great value to my knowledge, skills, and abilities and hence gave me a chance to
relate my studies in the practical working environments. Internship taught me,
Professionalism
Confidence and presentation abilities
Communication skills
Handling the stressful situations
Wellspring that‘s it that the point that you should not ignore and always keep
your mind and heart clear for the experience. If you are in a situation and
have interactions your studies are beginners implemented in practical
environs there. You’re not by passing your boss because you know that
organizational hierarchy is defined and proper abstraction channels are
available which should be used. OR. You won’t display resistance to change
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reason you deliberate that change is the alone constant and hence
necessary for organizational evolution and employees survival
4.7.1 What skills and qualifications you think that you have gained from the
internship?
The most important thing that I got to learn from this internship program is
that I gained some experience of working in a real world scenario. After
gaining academic knowledge and classroom experience for so many
years this was the first time that we got to work in the real world. This work
experience though of a short span has thought us so many things like
dedication, commitment, interpersonal and communication skills etc which
will certainly help us in any future endeavors we take. Whatever I have
learned at this actual first time experience is going to stay with me for a
lifetime.
One other major skill I learnt from the experience is the importance of
building personal relation skills and also the importance of maintaining it.
PR relations are one of the major components of a successful person as it
helps in all major steps of the professional career.
Another major skill I learnt from the banking experience is the importance
of understanding the basics of the career one is pursuing. The more a
person is acquainted to the basics that his job acquires, the more are the
chances that he would succeed in the career.
Patience and time management skill is also one of the major skills I learnt
in the internship. Having patience during the pressure of work and also
when working with non- cooperative clients is a major skill every
professional should have. Time management in also a major component
of any management personnel as without the proper management of time
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which is a major resource, success and efficiency is hard to achieve which
shows the lack of competency in a person.
I have to follow the rules and regulations which are followed by other
employees during working hours.
I have to perform punctuality in work.
I have to follow the time schedule of the bank.
I have to assist the employees of each department in which I worked.
I issued cheque book to customers
Cheque-Book Issuing
Bank check books are issued alone for chequing account so much as
electric current account economy account and ASDA history. They are not issued
for other fixed and term deposits because of their long term accounts “nature”.
Cheque-books leaves vary with the nature of the account. For example, 25
leaves and 50 leaves chequebook are issued for current and ASDA accounts.
Whereas 10 leaves and 25 leaves chequebook are for saving accounts. Usually
25 leaves cheque-books are given only army fund accounts, and 10 leaves
cheque-books are handed over to “easily individual’s account, holder”.
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4.7.3. How do you think the internship will influence your future career
plans?
The skills learned in the internship program will be very useful for
me both in my academics and my career ahead. Initially I was
thinking that I would go for my masters directly but now I have
understood that working in real organizations will give me
experience that will help me in my academics later.
4.7.4. How do you think the internship activities that you carried out are
correlated with your classroom knowledge?
Internships provide an opportunity for students to link hypothesis with
pattern and farther serve as a temp labor pond for those agencies that
have attached to participate in the internship programs. The department
fulfills its mission of preparing students for significant skilled and
managerial positions in the community sector.
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Internship is the capstone experience that provides students with practical,
real world experience in a work setting. Ideally, internship will enable
interns to:
(a) Integrate and use their knowledge and skills from the classroom,
(b) Discover where further skill is needed,
(c) Take steps to gain that capability under educational supervision, and
(d) Become better familiar with the types of work settings in which such
competences can be applied.
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Chapter no. 5 Conclusion of the report
First and leading, when I joined the internship program I thought that I had a lot
of knowledge about the working of the bank. But when I actually started working
in the bank I realized that the real practice is very different from the academic
learning. What is learned in books and what is practiced are two different things.
I got to learn about Askari Bank Limited, its product details, the strategy with
which the bank works and the various business sectors the bank has made
investments in. I also got to learn about the various departments in the bank and
how they functioned. I was completely unaware about all this and in this short
span of time I got to know a lot about the bank.
Looking at the status of the bank I was very excited about joining the internship
program. But as the time of starting the job came closer, my excitement shifted to
nervousness considering the grandeur of the bank and the thought as to how my
supervisors would be. But after my first day at work all my nervousness
disappeared as the people at the bank were very friendly and helpful. The
working environment at the bank is very healthy.
I always believed that banks in Pakistan are very professional. But after spending
few weeks in the bank I realized that it is not as professional as it looks from
outside. It is more a casual environment to work in.
I also thought that my HR/PR skills are very good and there is nothing more to
be learned in that aspect but within a few days of working in the bank I realize
that I am not perfect. The way the top level management of the bank would
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communicate was a big surprise and I am certainly very impressed. I got to learn
a lot from them though. I actually realized that there are lots to learn in this
regards and I am just a beginner. Other things that I learned from my supervisors
were communication and interpersonal skills again of what I was quite proud of. I
realized that communicating in general day to day life or in college is very
different that communication at work. One has to really think before we speak.
Words have to be manipulated so that a negative impact is not laid down.
Customer Satisfaction
In ACBL customer dealing is well, but during rush hour the customer has to wait
for a long time for their turn. It’s quite hard for a new customer or potential
customer to get the required information.
During my internship I pragmatic that filing system of area office is not good.
When certain record is needed the employees has to great effort to find it out and
a lot of time is exhausted.
Work is not equally spread. On one hand some employee have to work all the
day without relax while some others have nothing to do in any way. This not only
creates uncertainty among employees but also throbbing and disturbing for
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overall setup of the bank. And above all it results in disappointment among
customers as well.
Formal Organization
Formal organization includes the dealings of two or more person, which are
carefully strong-minded groups and synchronized towards a given objective. In
ACBL, I find a formal organization. The formal organization comes into being
when people are able to exchange a few words with one another or ready to act
and share a purpose. In this formal organization of ACBL the activities are
carried out in a more formal way. In theoretical terms it provides basis for
communication with one another but in practice it is not exercised.
A vast difference exists between theory and practice and ACBL has written
procedure but practical work done by employees is a bit different from written
procedures.
They don’t care about maintaining secrecy, especially during the rush hours.
They speak loudly about the account position. In this consider another deficit is in
giving the information about the balance on telephone.
It is notify that due to the lengthy method of paper work the bank employee are
over loaded. They are unable to give proper attention to the consumers due to
lengthy procedure and extreme paper work in the bank.
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service to the entire account holder and does not get better its excellence and
services.
Delegation of authority
Manager has very partial authority; he has to take the approval from his
management authority i-e. In case of advance he has to take the approval of
general and regional manager. The other problem is created, when the manager
is not present in his office, the customer have to wait for hours.
Only on the basis of job analysis it can be determined how a right person can be
hired, trained, rewarded or promote. Most of the employees are simple graduate
and do not have proper background about their job. This creates problems both
for organization and for the employees. In ACBL salaries are given according to
the seniority and grades. People with simple or compound responsibility are
getting the same salary and services.
ACBL does not provide adequate facility of specialized training to their staff.
Training is generalized rather than specialized. As the worker finishes his
training, he is inducting into a specific field without having great contract of
knowledge about the field.
Most of the clients shifted their history to the National economy Center because
of the low revenue enhancement of economy deposit discourage the customers.
Bank should increase their profit rates to be a focus for customers.
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The job rotation is present in the ACBL’s Gujrat branch. Employees are placed
from one department to another. It increases career opportunities for all the
employees. Job rotary is precise crucial for worker especially for those who are
newly chosen. The newly chosen should be rotate in all department of the
banking in order to get familiar with working of different departments so that
when they get a responsible position they have know how of the whole system.
Lack of appreciation
Another very important thing which is ignored in the ACBL is appreciation if the
employee on their good performance. If hard work and performance of
employees is not predictable and respected they become discourage which
results in decline in performance.
Need of training is greatly emphasized all around the world. Training of the
personnel is part of human resource management. It has been noticed that the
training program of ACBL is not sufficient.
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situation to take major decision affection the future of the bank and banking
community.
Promotions
Promotion in ACBL is purely on the basis of superiority, so the new young person
having high qualification remains behind for quite a lot of time. Thus a better and
neutral policy of promotion needs to be followed.
There is no proper way to give information to their customer. To avoid this minor
disappointment and tension in the mind of client, and lack of the service, it is
recommended that the bank should provide brochures etc containing information
in details.
During six weeks of my stay at Askari Commercial Bank, G.T road Gujrat, I have
come across the following SWOT analysis of the bank.
5.2. STRENGTHS
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Askari commercial bank is the most important private sector bank in the banking
network in Pakistan with many of them online branches in major cities of the
country.
AUTOMATIC OPERATIONS
The operations performed by the bank are highly automated that result in
assurance for the customers that their transactions are completed reliably,
efficiently and securely.
The priority banking centers of the bank offer an unmatched where the customer
receives highly privileged services in a highly elegant environment. It gives the
chance of experiencing new standards in banking. Designed especially for those
who appreciate only the supreme things in life, Priority Banking offers the very
highest levels of modified banking to match customer’s single rank.
ELECTRONIC BANKING
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The revolution in the banking in the form of electronic banking operations have
opened avenues of excellent, efficient and quick services saving the time and
costs of the customers and fortunately ACBL is among those few banks who are
already reaping the benefits of electronic transactions.
PHONE BANKING
Phone banking service is very attractive for those classes of customers who don’t
have time to personally come to the bank i.e. banking on the phone line thus
saving the precious time of the customers.
The organizations showing concern for the people, ethics, and environment enjoy
good public reputation and are able to reap the benefits in the long run. ACBL
management is quite sensitive to this issue.
WEAKNESSES:
In my opinions these are the points that might be detrimental to the efficiency and
profitability of the bank.
The bank has still some of the traditional ways of operations in this advanced
technological environment.
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MANUAL BOOK-KEEPING
Although the bank has computerized accounting system but, still the bankers use
to make their entries in the accounting register.
LACK OF SPECIALISATION
This famous and useful concept given by Adam Smith in 1776 seems to be
missing in the bank. The employees are constantly rotated from one job to
another job of totally different characteristic in the view of giving them the know-
how of the working in all the departments. But I think this is not a very good
tactics used by the management. Otherwise the situation might be like this ‘Jack
of all and master of none.’
CENTRALIZATION
There is a high degree of centralization in the bank. Almost all the decision-
making is in the hands of the upper management. But centralization is effective
up to a certain level otherwise it becomes inefficient and at times costly too. I
personally observed that delay occurred in the operations of the employees only
due to the fact that they had not got any instructions from the head office.
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LACK OF TRAINING FACILITIES
Presently there is no specific training program arranged for the new recruiters.
They have to learn based on their observations and also their mistakes. It takes a
bit time for the fresh one to learn the banking the result is huge amount of
blunders, mistakes etc. resulting in monetary and non-monetary losses for the
bank. There is pressure not only on the new learner but also on the person
placed upon with this responsibility.
OPPORTUNITIES
THREATS
As discussed above, the job satisfaction level of the employee is very low
resulting in high turnover, which is bad for any organization as there are huge
monetary and non-monetary costs involved in the fresh recruitments.
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High charges
The schedules of charges indicate that the fees charged by the bank on the
various services it provides are extremely high. It may result in decrease in the
number of its existing customers. Furthermore, this could be very alarming
situation for the bank in case some of the competitors grasped the opportunity
and lowered its rates. The result would be either the loss of market share or
decrease in the charges resulting in lowering the bank’s income.
Stiff Competition
SCB is currently facing strict competition from the foreign banks especially the
American who banks enjoy a good market position. Collectively U.S. banks hold
approximately 13 percent of all commercial banks' assets. At present, three
American banks are operating in Pakistan: American Express Bank; Bank of
America and Citibank.
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5.3. Recommendations
After spending six weeks at different departments of the bank, interacting with
the employees, getting their views, observing the organizational structure and
design, I have come up with the following suggestions that in my view, will
definitely improve a few weaknesses observed in the bank by me.
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Adoption of Flexible Policies:
The bank should adopt flexible policies especially in the area of recruitment and
promotions.
Revival Charges:
The rate of the various charges provided by the bank should be brought down a
bit, as it would result in increase in the number of customers of the bank.
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Chapter no. 6 References and Appendix
6.1. References:
1) www.askaribank.com.pk
2) Annual report of Askari bank 2009
3) http://www.onlinewbc.gov/docs/finance/fs.ratio
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6.2. Appendix
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