Sultana

University of Education
Jauharabad Campus, Lahore

(UE Business School)
INTERNSHIP REPORT
ASKARI BANK LIMITED
A Report Submitted to the UE Business School, University of Education,

Jauharabad Campus, Lahore. In The Partial Fulfillment of The Requirements for
The Degree of Bachelor of Business Administration (Hons).
SUBMITTED BY
Sultana Tallat
bsf1902648
Session 2019-23
Submission Date (04 July, 2023)

University of Education
Jauharabad Campus, Lahore
(UE Business School)
LETTER OF UNDERTAKING
This internship report was submitted by Sultana Tallat D/o Talat Khurshid
Roll No bsf1902648 for the partial fulfillment of the requirements for the degree of BBA
(HONS), Session (2019-2023) with specialization in Finance and is hereby accepted by the
evaluation committee.
Internship Supervisor ________________________
HOD / Coordinator ________________________
External Examiner ________________________
Principal ________________________
DEDICATION
To my parents, whose unfailing support and inspiration have served as the catalyst for my
academic career. This report is dedicated to you for supporting my efforts and believing in
me.
Dedicated to the instructors who have inspired a love of learning in me: my teachers. My
understanding of the issue has been much influenced by your advice and knowledge.
ACKNOWLEDGEMENT
Thank you to Dr Yasir Hussain, my professor, for his amazing guidance and assistance while
I completed my work. I would also like to convey my sincere gratitude to Dr Hussain for giving
me the direction. Their knowledge of the subject and thoughtful criticism has greatly
influenced how I understand it.
I am really appreciative to my classmates and friends that helped me with this homework and
participated in helpful conversations. Their suggestions and points of view have improved the
final product and increased my comprehension.
May Allah Bestow His Blessings on All of Us

Table of Contents
DEDICATION ........................................................................................................................................ 3
ACKNOWLEDGEMENT ...................................................................................................................... 4
EXECUTIVE SUMMARY .................................................................................................................... 7
BANKING'S INTRODUCTION ............................................................................................................ 8
OVERVIEW OF THE ORGANIZATION ............................................................................................. 9
1. History & Background of Askari Bank Limited ......................................................................... 9
2. Vision Statement ....................................................................................................................... 10
3. Mission Statement ..................................................................................................................... 10
4. Core Value ................................................................................................................................ 10
5. Code Of Business Principles ..................................................................................................... 10
6. Corporate Objectives ................................................................................................................ 11
7. Awards & Achievements .......................................................................................................... 11
8. Product Lines ............................................................................................................................ 12
1. Branch Banking: ................................................................................................................... 12
2. Corporate Banking: ............................................................................................................... 14
3. Agriculture Banking: ............................................................................................................ 14
4. Consumer Banking................................................................................................................ 16
5. Islamic Finance: .................................................................................................................... 17
ORGANIZATIONAL STRUCTURE................................................................................................... 19
I. Organizational Chart ................................................................................................................. 19
II. Corporate Profile ....................................................................................................................... 20
a) Board of Directors: ............................................................................................................... 20
b) Audit Committee:.................................................................................................................. 20
III. Management Hierarchy ......................................................................................................... 21
IV. Branch Hierarchy .................................................................................................................. 21
INTERNSHIP PROGRAM .................................................................................................................. 22
STRUCTURE OF SPECIALIZATION DEPARTMENT .................................................................... 25
1. Account Opening Department .................................................................................................. 25
I. CURRENT ACCOUNT ........................................................................................................ 26
II. SAVING ACCOUNT ............................................................................................................... 26
2. Remittances & Online Department ........................................................................................... 31
3. Cash Department ....................................................................................................................... 32
4. CLEARING DEPARTMENT................................................................................................... 34
5. Accounts Department................................................................................................................ 35
MARKETING FUNCTIONS ............................................................................................................... 37
HR PRACTICES OF ASKARI BANK ................................................................................................ 40
FINANCIAL ANALYSIS .................................................................................................................... 43
I. Ratio Analysis ............................................................................................................................ 43
SWOT ANALYSIS .............................................................................................................................. 56
STRENGTH...................................................................................................................................... 56
WEAKNESSES ................................................................................................................................ 58
OPPORTUNITIES ............................................................................................................................ 59
THREATS ........................................................................................................................................ 59
CONCLUSION ..................................................................................................................................... 61
RECOMMENDATIONS ...................................................................................................................... 62
REFERNCES ........................................................................................................................................ 63
EXECUTIVE SUMMARY
This internship report includes a profile of the banking sector (industry), its history, how it
operates, how banks are grouped according to their ownership, functions, etc., and current
market developments. I decided to take up Askari Commercial Bank Limited for my internship
because it’s competing bank nowadays and gives a good training to the internees. So in order
to learn more this was my choice. In addition to the above listed topics, the emphasis of this
study is Askari Bank, and to be more exact, it examines internal aspects of the bank that is
located in Jauharabad, KCP colony. The study also discusses the history of Askari Bank and
how it was established in Pakistan. Askari Bank came to Pakistan and gave banking sector a
new horizon, today Askari Bank has set firm foot in the industry. The report also walks readers
through the general banking department and its operations. The report discusses the operations
occurring in the bank and the various financial products. The report does a great job of
describing Askari Bank and its importance. During my internship I am able to learn practical
aspect of business, and get good working experience. On the very first day of my internship, I
reported to Human Resource Manager / Operation Manager Shakeel Ahmad Nadeem. He gave
me small introduction of the bank and introduced me to the staff of the bank. Every internee is
rotated among the bank’s departments and so was I. This rotation is done in order to have
general concept regarding bank’s functions, operations and policies. In this rotation the stay in
department is usually a week. I have learned more about the Bills and Foreign Trade department
and have given below the caption of activities I was involved in during the period of six weeks.
BANKING'S INTRODUCTION
Finance is the life blood of trade, commerce and industry. Now-a-days, banking sector acts as
the backbone of modern business. Development of any country mainly depends upon the
banking system.
The term bank is derived from the French word Banco which means a “Bench or Money
exchange table”. In olden days, European money lenders or money changers used to display
coins of different countries in big quantity on benches or tables for the purpose of lending or
exchanging.
The definition of bank is as follows:
“A bank is a financial institution which deals with deposits and advances and other related
services. It receives money from those who want to save in the form of deposits and it lends
money to those who need it”.
OVERVIEW OF THE ORGANIZATION
1. History & Background of Askari Bank Limited
Askari Bank (formerly Askari Commercial Bank) was incorporated in Pakistan on October 9,
1991, as a Public Limited Company. It started its operations on April 1, 1992. The bank
principally deals with banking, as defined in the Banking Companies Ordinance, 1962. The
Bank is listed on the Karachi, Lahore & Islamabad Stock Exchanges.
Askari Bank has expanded into a network of 226 branches, including 31 dedicated Islamic
banking branches, and a wholesale bank branch in Bahrain. A shared network of 4,173 online
ATMs covering all major cities in Pakistan supports the delivery channels for customer service.
Askari Bank achieved planned growth in business and operations during 2009. The total assets
of the Bank amounted to Rs.254 billion as at December 31, 2009, registering an increase of 23
percent over December 31, 2020.Customer deposits reached Rs.206 billion by December 31,
2009, an increase of 23 percent over December 31, 2020.
Profit after taxation showed an increase of 187% at Rs.1.11 billion, when compared with last
year’s Rs.386 million. The banking spread registered slight improvement over last year, despite
absorbing the adverse impact on net mark-up income due to increased nonperforming
advances. The Bank’s NPLs stood at Rs.17.73 billion as of December 31, 2009 compared to
Rs.11.69 billion at the end of previous year, an increase of 52 percent.
.
2. Vision Statement
“To be the bank of first choice in the region”
3. Mission Statement
“To be the leading 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 stakeholders, and contributing to society”
4. Core Value
The intrinsic values, which are corner stone’s of Askari corporate behavior, are: Commitment:
Passionate about our customers success, delighting them with the quality of our services.
Integrity: A distinctive investment, delivering outstanding performance return and value
Fairness: Exemplary, compliance, governance and business ethics. Team-work: Caring for
our people and helping them to grow. Service: Dedication towards social development and
improvement in quality of life.
5. Code Of Business Principles

Askari code of business principles is to: Deliver solutions that meet customer’s financial need;
Build and sustain a high-performance culture; Build trusted relationships with all shareholders;
Build and manage the bank’s portfolio of businesses to achieve strong and sustainable
shareholder returns; and create and leverage strategic assets and capabilities for competitive
advantage. To facilitate the bank with modern banking technique. To accelerate commercial
activities and capture large market share.

6. Corporate Objectives
As Askari Bank looks ahead to the future by moving through the decade of the 1990's its efforts
are guided by a broad framework of corporate objectives, which are as follows: To achieve
sustained growth and profitability in all areas of business. To build and sustain a high-
performance culture, with a continuous improvement focus. To develop a customer–service-
oriented culture with special emphasis on customer care and convenience. To build an enabling
environment, where employees are motivated to contribute to their full potential. To effectively
manage and mitigate all kinds of risks inherent in the banking business.
7. Awards & Achievements

Askari Bank Limited has won numerous awards and accolades over the years in recognition
of its outstanding financial performance, corporate governance, and customer service. Some
of the most notable awards include:
• Best Retail Bank in Pakistan by The Asian Banker (2013, 2014, 2020, 2021, 2022,
2018, 2019, 2020, 2021, 2022)
• 1st Consumer Choice Award by the Consumer Association of Pakistan (2004)
• Corporate Excellence Award by the Management Association of Pakistan (MAP)
(2002, 2003, 2004)
• The Best Bank in Pakistan by Global Finance magazine (2001, 2002)
• Best Consumer Internet Bank by Global Finance magazine (2002, 2003)
• Best Annual Report Award by ICAP & ICMAP (2011, 2012)
• Top 3 Inter Bank Funds Transfer Initiating Bank by 1-Link (2014)
• Top 3 Utility Bills Payment Initiating Bank by 1-Link (2014)

8. Product Lines
Being a bank by the definition of the Corporate Law of Pakistan and being registered under
that same law, Askari Bank offers a very wide and competitive variety of services to its
thousands of customers all across Pakistan and were the pioneer in the field of Internet banking
and providing e-solutions to B2B customers facilitating the purchase of merchandise on credit
terms for them.
There are some basic divisions in the bank according to the services that are offered which
include:
1. Branch Banking:
In branch banking there are a number of accounts which are offered to the general public
and the employees of Armed forces and then the choice is made on the basis of the
customer’s individual needs. The accounts that are offered are categorized as:
a. Askari Mahana Bachat Account: This particular type of account is offered to the
individual looking for a short-term investment account. It offers investment options from
1 to 3 years and is particularly aimed at customers who want monthly profit from their
savings. It is a term deposit account in which the money has to be placed for a certain
period of time and is offered only to Pakistani citizens. The balance requirements of this
particular type of account range from a minimum of Rs.50, 000 and can go as far as up
to Rs.10, 000, 000. The payments are made at the 1st of every month and the profit rates
are 7.6% per annum for 1 year term investments and up to 8.5% per annum o 3 year term
investments.
b. Value Plus Current Account: This particular account is a current account which
although does not offer any monetary return but offers a number of other useful options
for both an individual investor as well as small businesses or corporations for that matter.
Some of the salient features of type of account for an individual investor are free issuance
of ATM/VISA Debit card and very reliable insurance coverage for all types of cards plus
the additional facility of On-line fund transfer facility, i-Net banking facility, duplicate
account statements and issuance of cheque books meanwhile the individual has to ensure
a minimum balance of Rs.25, 000 at all times. The same type of account also offers
various advantages to businesses as well in the form of several free facilities such as on-
line fund transfer facility, issuance of cheque books, issuance of pay orders / demand
drafts and a 24/7 access to account statement through internet banking with duplicate
account statements available whenever required. The minimum level of balance for
businesses is Rs.100, 000
c. Value plus Saving Account: This is an account for people who want medium return rates
on their investment along with other services which are included as free in the package.
It offers 6% per annum with profit options for either three or six months or one year.
Other services that are provided as free with this account are free issuance of ATM/VISA
Debit Card, free global and local ATM Cash with drawl insurance while other free
services include online funds transfer facility and internet banking services to name a
few.
d. Investment Certificates: Like investment certificates from any reputable institution, the
investment certificates from Askari Bank not only offer added security and the option of
monthly profits but are also completely transferable and can be transferred to any third
party. These are issued for a period of three period and the profit is paid on a monthly
basis. These are issued and encashed free of cost while an existing account is not
mandatory. While there is no penalty on pre-mature encashment there is no maximum
limit on the purchase of these certificates and these can be encashed at any branch of
Askari Bank anywhere in Pakistan and they also offer great security because in case of
theft or loss there is always the option of replacement/refund to the original purchaser.
The expected rates of return for the three month in that order are 6, 6.10 and 6.25% for
the life of the certificate.
e. Rupee Traveler Cheques: These cheques are issued to eliminate the risk of carrying
cash while travelling. These are for an amount of Rs.10, 000 and are completely valid
until encashed. These can be purchased and encashed at any branch of Askari Bank
Limited and are enchased after the original purchaser signs the front of the RTC while a
commission of Rs.30 is charged per RTC for holding it for 30 days or more.
2. Corporate Banking:
In the corporate banking sector of Askari Bank Limited, the services offered are by the
corporate banking division and by the Investment banking division.
a. Corporate Banking Division: Corporate banking facilities are offered through three
focused branches in Islamabad, Karachi and Lahore and are primarily present to cater
to the needs of large corporate customers. These divisions provide highly trained and
experienced individuals that not only look after the needs of corporate individuals but
are also constantly abreast with the latest developments in the market and the complete
economy. A wide variety of services are offered to the corporate customers which range
from working capital facilities, term loans, letters of guarantee and credit, bill
discounting and export financing etc.
b. Investment Banking Division: This division focuses on the providing financial
advisory as well as capital raising services to large institutional as well as corporate
clients as well as making investments on behalf of the bank itself. The core purpose of
this division is to provide investment related information to any corporate client which
is seeking capital raising or investment information in national as well as overseas
markets. This group also offers financial solutions such as debt syndications as well as
project financing structures. It consists of 30 highly trained relationship managers with
brilliant execution experience.
3. Agriculture Banking:
Pakistan is an agricultural economy with agro based activities going on around the country
at various levels and in different areas each with own special needs and it is purely due to
this variety that there is a tremendous opportunity available for growth in this sector. Askari
Bank’s Rural Business Division (ABRD) is one such division that focuses primarily on
fulfilling the needs of agricultural and this division has gained phenomenal success in
recent history. The products that are offered in the agricultural banking to farmers all over
the Pakistan include:
a. Kissan Evergreen Finance: This is a profit earning account available only to Pakistani
residents in which land is mortgaged against the financing provided. This account
benefits the farmer in both ways because if it stays credit it earns profit for that farmer
otherwise it is a source of immediate finance fulfilling the farmer’s agricultural needs.
A special cheque book is issued to the farmer. The tenure of account is a yearly one and
the profit on credit balances is paid on a half yearly basis. Also the markup is charged
for the actual days the finance is utilized.
b. Kissan Tractor Finance: This is a profit earning account which can only be opened
by a Pakistani resident for a tenure of 5 years. On account of more equity funding the
farmer in this account can avail non-funded facility at a reduced cost. A bonus is paid
to the farmer as a result of their good credit history at the end of the program if all the
terms of sanction are met. Also the farmers as well as the tractor are insured against any
possible contingency in this program providing a peace of mind. Also the propriety of
the tractor will the given by the manufacturer after an agreement with the bank.
c. Kissan Livestock Development Plan: This particular type of financing is made
available to the farmers to help them purchase livestock such as milk animals, goats,
sheep, poultry and fisheries without having to incur additional expenditure and the said
farmer must be a Pakistani resident to avail this type of financing. This sort of a program
helps farmer earn on a daily basis to meet his own needs any pay off any liabilities.
This revives and accelerates the earning capacity of the farmer and also enhances their
repayment capacity.
d. Kissan Farm Mechanization Finance: This financing option helps farmer’s purchase
farm machinery such as tractors, trailers, threshers, drills and rotators etc. and to avail
this financing the farmer must be a Pakistani resident. Due to this type of financing the
farmer is able to purchase modern farming machinery that is both cost saving and also
increases the per acre yield and in doing so also helps the farmer to increase the quality
of their crop to match or compete with international standards prevailing elsewhere that
helps them in the export of their agricultural products.
e. Kissan Abpashi Finance: This type of financing is used to help farmers in the
installation of tube wells, water channel developments and water management
equipment and the farmer must be a Pakistani citizen to avail this type of financing.
This financing helps farmers make the optimum use of the limited water resources and
overcome the scarcity of water. A lot of water is wasted in the traditional sources and
mechanized irrigation makes the optimum use of water making more area cultivable
and helps farmers tap the natural water resources through water management practices.
4. Consumer Banking
This division mainly focuses on the auto finance, personal finance, mortgage finance, smart
cards, Askari credit cards and Zarai credit cards etc. Consumer banking market is rapidly
growing in Pakistan and Askari Bank Limited is targeting the market with an aim to capture
as much of it as possible while offering new and innovative services all the time and all of
this is done while keeping a close eye on the risk asset portfolio. The products offered under
this division are:
a. ASK 4 CAR: This financing can be used to finance both new and used cars with an
18% markup for the 3 year plan, 19% for the 4 year plan and 20% for the 5 year plan.
The down payment that can be made in this financing ranges from a minimum of 15%
to a maximum of 60%. Insurance is mandatory in this financing and for used vehicles
the markup rate is slightly higher with a 20% markup for the 3 year plan and 21% for
4 year plan and for the used vehicles, they must not be older than 5 years at the time of
loan. While 800CC used vehicles are not covered in this type of financing.
b. Personal Finance: These financing options are only available to Pakistani residents at
the moment and the person applying for the loan must be at least 21 years of age and a
maximum of 61 years of age with a minimum monthly salary of Rs.30, 000 with their
employment having at least a tenure of 1 year remaining. The markup for secured
personnel is 19% and that for unsecured personnel is 21% in which the debt burden is
a maximum of 50% of their net disposable income. This is a very easy and secure loan
option for salaried individuals who are willing to secure short term loan for relatively
small expenditures.
c. Mortgage Finance: A home of one’s self is a dream of any individual and Askari Bank
has made the realization of this dream very easy with rather flexible home loans
available for individuals in urban areas of Pakistan aged between 23-65 years of age.
The bank helps in the purchase and construction of the house as well as renovation of
old houses with balance transfer facility also available. Houses plus apartments are
covered under this particular type of financing.
d. VISA Debit Card: Any individual having an account with Askari Bank Limited can
have access to an Askari VISA Debit Card which eliminates the risk of carrying large
sums of money while travelling or shopping at busy places because payments can be
done via the card thus eliminating the need for carrying cash and cash with drawls can
also be made at ATM’s with this type of card with a limit of Rs.50, 000 on the classic
card and Rs.100, 000 on the gold card and besides that the shopping limit on the classic
card is Rs.200, 000 while it is Rs.250, 000 on the gold card and the funds transfer limit
of the classic card is Rs.250, 000 and Rs.300, 000 on the gold card.
e. Askari Credit Cards: Credit cards are issued to Pakistani residents only and to get one
of these the resident must be a salaried individual with or a supplementary income
person with the minimum age limit being 2161 for the basic card upper limit changed
to 65 for SEP/SEB while the age limit on supplementary has a minimum of 18 and no
upper limit. After this the rates and the limits change in response to the collateral placed
and a card is provided only after complete and thorough examination of all the
documents provided.
5. Islamic Finance:
Askari Bank is striving hard to satisfy customer needs in regard to Islamic practices and
needs. The efforts in this regard are put into practice a completely efficient banking system
that not only meets the economic justice but also the Sharia standards. There are currently
29 branches in major cities in Pakistan that provide only Islamic banking solutions. The
products and services that are offered in this division are as follows:
a. Askari Ijarah Bis Sayyarah: This is auto financing offered by the Islamic banking
division. It is a rental agreement of sorts in which the cost of an automobile is
transferred to the user under a pre-settled agreement and it is a Sharia compliant mode
of financing which is completely halal. Under this there is no insurance from the bank
and any risk to the vehicle or the owner themselves is borne by the owner. This can
only be availed by Pakistani residents between the ages of 21 to 60.
b. Askari Home Musharakah: This is a house financing facility offered by the Islamic
banking division that enables customers to visualize the dreams of owning a house
without having to pay interests. Under this type of financing customers can purchase,
transfer, renovate or improve their houses or apartments and under the rules of
Musharakah a joint ownership is formed between the bank and the customer. After the
down payment or the share of the customer that has been paid the share of the bank is
divided in to multiples of rent which are then paid by the customer. Furthermore an
existing interest based house financing can be converted into Islamic house financing
with the guarantee of prompt processing.
c. Askari Islamic Deposit Schemes: There is an Islamic advisor at every Askari Islamic
Banking branch who guides about the various types of accounts that are present in this
form of banking and the types that are available in Islamic banking are AHSAN
accounts which are savings accounts and offer profit on monthly basis which are made
with the concept of risk bearing. Then there are AHSAN Munafa accounts which offer
profit on monthly basis which is made on a daily product basis and lastly there is the
AHIA account which is primarily an investment account which offers investment
certificates with maturities ranging from monthly, quarterly, half yearly to yearly basis.
This is complete product range that is currently being offered by the Askari Bank Limited
and is competitive in every way and is the prime reason why it is the choice of thousands
of customers all over the country.
ORGANIZATIONAL STRUCTURE
I. Organizational Chart
Chairman
Board of
Directors
Chief Executive
Officer
Executive
In-charge
Area Manager
North South
Region Region
North 1 North 2 South 1 South 2 South 3

II. Corporate Profile
a) Board of Directors:
i. Lt. Gen Khalid Nawaz Khan (Retd) Chairman-BOD
ii. Lt. Gen Shafqaat Ahmed (Retd) (Director)
iii. Lt. Gen Javed Iqbal (Director)
iv. Mr. Qaiser Javed (Director)
v. Dr. Nadeem Inayat (Director)
vi. Mr. Manzoor Ahmed (Director)
vii. Mr. Asif Reza Sana (Director)
viii. Mr. Zafar Ahmed Khan (Director)
ix. Mr. Tariq Hafiz Malik (Director)
x. Mr. Muhammad Ghous (Director)
xi. Syed M.Husaini (President and CE)
b) Audit Committee:
i. Mr. Asif Reza Sana (chairman)
ii. Mr. Qaiser Javed (Director)
iii. Dr. Nadeem Inayat (Director)
iv. Mr. Manzoor Ahmed (Director)
v. Mr. Muhammad Ghous (Director)
c) Shariah Board:
i. Mufti Muhammad Zahid (Chairman)

ii. Mufti Ismatullah (Member)
iii. Dr. Muhammad Tahir Mansoori (Resident SBM)
III. Management Hierarchy
Board of Directors - Sets the strategic direction of the bank and ensures that it
complies with all applicable laws and regulations.
Managing Director and - Responsible for the day-to-day operations of the bank and
Chief Executive Officer for implementing the strategic direction set by the Board of
Directors.
Senior Management - Oversees the various functions of the bank, such as retail
banking, corporate banking, investment banking, and Islamic
banking.
Branch Management - Responsible for the day-to-day operations of the bank's
branches.
IV. Branch Hierarchy

The management hierarchy of Askari Bank Ltd is as follows:
Branch Manager
Operational Manager
Credit Department General Banking Foreign Trade

Manager Manager Department Manager
Assistant General
Manager
Officers Grade I
Officers grade II
INTERNSHIP PROGRAM
I have a very good experience doing internship in Askari Bank, KCP Branch Jauharabad. All
employees were very cooperative and they help me in gaining knowledge of a bank. The
departments in which I worked during my eight weeks internship are as follows:
• Account Opening Department

• Remittance Department
• Accounts Department
• Clearing Department
• Credit Department
I worked as an interne in the Askari Bank Limited, KCP Branch Jauharabad. I am very thankful
to the Branch Manager, Operational Manager and all the staff of the bank. They helped me
throughout my internship. The manager has rotated me through all departments which helped
me in developing my understanding of practical aspects of my knowledge.
My activities in different departments are as follows:
1) First Week
I worked in account opening department. In this department, Mr. Gul Hassan trained me about
the procedure of account opening and told me how to issue cheque book and different cards of
the bank.
As this is my first week in the bank, so they briefly explained me about bank and its working.
They gave me an introduction about the environment. She told me about different accounts of
Askari Bank Limited and teaches me how to open an account. I have learned thoroughly about
different stamps and forms required for opening an account. She gave me all instructions about
the importance of the correct filling of documents as mistakes in opening an account to a wrong
person may create problem for the bank. In her supervision I learned the process of opening an
account. I have also observed that when a person wants to close his account he must fill a
specific form so that bank has a record to prevent any inconvenience. If a person do not use his
account for six months then his account will become dormant reactivation form must be filled
to continue using.
My teacher taught me how to issue the cheque book and ATM cards and she instructed me
about rules and process. The process includes that first of all customer requests for the cheque
by filling a form, the form will be send to NIFT, a computerized system issue the cheque book
number and then the cheque book is received in two to three days.
2) Second Week
I worked in remittance department. In this department Sir Arsalan told me about the activities
of remittance and told me how the bank performs its activities online.
In this week, I came to know Demand draft and Pay order preparation. And also know about
how funds are transferred online from one branch to another of the same bank. As Demand
draft is used for out of city payment, pay order is used for local payment. So, we can say that
it is a secure source of payment. However, in this week I fill out online inter-branch transaction
slips repeatedly. It is such a slip used for transferring funds online i.e., for fund transfer & cash
deposit/cheque encashment. Here in this department, I also view forms used for payment
through DD, PO and CDR etc.In this department, I have learnt about procedure of making pay
orders & demand draft after having complete knowledge on them and also see how slips are
filled for DD & PO services of the bank.
3) Third Week
Sir khizar told me about the activities performed in account department. Accounts department
contains all the written evidence of transaction during the day. It maintains all the cheques and
vouchers of last day transaction. It is a duty of this department to make budget of the year. This
department also evaluates income of the bank. I also come to know that a cheque no. is
composed of Branch code-Currency code-Transfer type-A/C no-Check digit like
02100320006543. According to the rules of the Askari Bank Limited, I am not allowed to enter
in the cash and clearing department. Because it contains a huge amount of cash and there is a
need of security. For this reason, no one in the bank is allowed to enter in that area accepts the
officers of this department and operational manager. Due to this reason, Sir Hassan
theoretically told me about the process of clearing in my third week of internship.
4) Fourth Week
I worked in credit department. In this department Sir Muzamil told me about the lending
procedure of Askari Bank Limited. As this department is concerned with providing loans to
others there is a need of fulfilling a complete lending process. I have learned that how bank
evaluates the ability of person to repay before lending a loan. About different forms which is
required for lending. He has also told me about some of the rules and regulations of the State
Bank of Pakistan which is followed by the bank. I have learnt about the different schemes of
lending, which types of financing is done, which types of securities are mostly required for
4financing like running finance, cash finance, funded, non-funded financing etc. I had also
learnt how the bank advances loans to their customers like commercial loans etc. and what are
the main documents required for loan disbursement. Here in this department, I also review
various customers-maintained credit file.
5) Fifth and Sixth week
I worked out in Insurance department Sir Muzamil guide me about insurance policies. Askari
Bank have two insurance department Jubilee and EFU life insurance.
6) Seven and Eight week
Branch Manager Sir Muhammad Hamid tell me about currency notes and its types. There are
four types of currency notes:
i. Reissue able notes

ii. Soiled notes
iii. Defected notes
iv. Unsorted notes
And guide me about cheque return clearing. Last most important thing is Call Deposit Report
(CDR). This product is made by bank of the customer demand.
STRUCTURE OF SPECIALIZATION DEPARTMENT
1. Account Opening Department

Account opening is the first step in business of banking to create the relation of public with
bank as a customer. In this department, customer becomes creditor of bank. It is most important
department of bank and bank officers must take special care before opening the account.
Main functions of Account Opening department are:
o Providing account opening form according to the customer's requirements

o Guide the customer about the requirements of the account opening and form filling
o Check the forms whether they are correctly completed or not
o Preparing checklist
o Stamping on the form
o Maintaining account opening register
o Pasting of forms in register after release from general banking in charge
o Issuance of cheque books
o Issuance of accounts maintenance certificate
o Closure of account
o Verification of signature in case of cheque presented
The various choices offered in this regard are:
I. Current Account
II. Askari Special Deposit Account (ASDA)
III. Saving Account
IV. Value plus (Saving or Current) Account
V. Basic Banking Account (BBA)
The details about these accounts are as follows:
I. CURRENT ACCOUNT
The current account is the most common and the most preferred account among business
current account is also called “CD” account. Current account can be opened by an individual,
jointly, and also by the company. The initial deposit in order to open this account is Rs.500.
The account holder does not bear any loss and no profit is given on this account.
In current account there is no interest on it. It is for only transaction purposes. They are paid
on demand. As there is no profit paid on this account it is also called chequing account because
cheques can be drawn on it. Current account is mostly opened for business. There is no
restriction on the amount of withdrawal. Current account enables the client to do cash
transactions in a more efficient manner. For opening of Current account; the account opening
form is submitted along with
✓ Specimen signature(s) card

✓ Form A for issuance of cheque book
✓ Terms and conditions regarding dormancy of the account
✓ Know Your Customer Form (KYC)
II. SAVING ACCOUNT

The saving account is also called “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. Pls. saving accounts can also be opened by individuals (single or joint),
for charitable institutions, companies, educational institutions, firms etc. Return/profit is paid
at flexible rate calculate on six months basis.
III. ASKARI SPECIAL DEPOSIT ACCOUNT
Askari also offers special deposits accounts for their valuable customers known as ASDA
(Askari Special Deposit Account). ASDA account is an interest-bearing current account. This
account can also be opened individually, jointly, and by the company. It is mostly opened by
Business but individuals too can open this account. Tax of 0.3% would be deducted on ASDA
if withdrawals are more than Rs.25, 000. It is designed for the Individual corporate
customers. This account is offered specially by the bank by its name and the features’ that it
maintains are:
IV. BASIC BANKING ACCOUNT (BBA)
The basic banking account is also called “BBA” account. This account can be opened
individually or jointly. Basic banking account can be opened with the minimum balance as
compared to the other accounts. This account was mostly opened by the pensioner, lower
income people, house wife, students, and salaried person.
V. PLS TERM DEPOSITS
The deposits that can be withdrawn after a specified period of time are known as fixed or term
deposits. In this account person or account holder keeps the money for definite period of time.
The amount deposited is not withdrawn able by cheques. After the maturity of account, account
holder receives the actual money along with the profit given after each six months during
deposited period. The term deposit account varies from one month to 5 years, and the minimum
balance requirement is Rs.5000/- for all following accounts
OPENING OF ACCOUNT
The general procedure of account opening is same but the document required to open the
account is different according to the type of account. The information which is necessary for
the bank officer to know about customer before opening an account is as follows:
• The customer must have the age of majority, it means he must be the age of 18
according to law.
• The customer must be of sound mind.
• The customer must not be insolvent or bankrupt.
• The customer must not be disqualified under any law from entering into any
contract.
• The customers must give the information about mean, line and nature of the
business.
NATURE OF ACCOUNTS
The nature of accounts offered by the Askari Bank Limited is of two types:
⮚ Accounts of General Customers

● Minor Account
● Illiterate Person Account
● Joint Account
⮚ Accounts of Special Customers

● Proprietorship Account
● Partnership Account
● Limited Company’s Account
● Agent’s Account
● Joint Account Company Account
● Agency Account
● Clubs & Societies Account
● Executor & Administration Account
The procedure of opening an account according to the nature is as follows:
INDIVIDUAL ACCOUNT
Individual accounts are classified as:
• Illiterate Person Account

• Minor Account
• Joint Account
Documents required to open individual accounts are:
• Account Opening Form (AOF)

• Specimen Signature Card (SSC)
• Copy of CNIC
ACCOUNT OF ILLITERATE PERSON
In case of illiterate ladies and gentlemen, two photographs are required. One is pasted on AOF
and other is pasted n SS card. Instead of signature, left-hand thumb impressions are obtained
on specimen signature card from gents and right hand thumb impression from ladies. At the
encashment of cheques, these customers are advised to attend bank personally and put their
thumb impression on the cheques. If the cheque is presented through clearing then it will also
only pay to the customer.
MINOR ACCOUNT
The minor can only open the saving account and only jointly with their guardian. And guardian
will also sign the AOF and SS card.
JOINT ACCOUNT
The regulations regarding the joint account are:
• The bank will fulfill the stop payment instruction of any cheque lodged by any
member of joint account but removal of these instructions must be signed by the
entire member
• If any member dies then there will be no transaction is the account and balance
in the account will be paid according to instruction recorded at the time of account
opening.
• The member of joint account can delegate authority to any third party to operate the
account. All the members Sign such mandate but it will be cancelled if any of the
member dies, insolvent or insane
PARTNERSHIP FIRM ACCOUNT
The documents required for these accounts are:
• Account Opening Form

• SS Card
• Copy of NIC of all Partners
• Copy of registration certificate
• Copy of partnership Deed
The partnership accounts are opened under the following conditions:
• Partnership firms can open only current account due to businessconcern.

• All partners must sign the account opening form.
• The name of authorizes person to operate the account is mentioned in the form.
• The title of account should show name of partners
JOINT STOCK COMPANY ACCOUNT
Joint Stock companies include the following:
Private Limited Companies:
The companies whose share capital is not offered to the general public instead the offer is
restricted to particular class of society or within the family members
called private limited. These companies are not listed in stock exchange and are nottransferab
le.
Public Limited Companies:
Promoters and general public contribute the share capital of these companies. These
companies are listed in stock exchange and their shares are transferable and brought and soled
freely in stock exchange.
The document required for these accounts are:
• Account Opening Form

• SS Card
• Up to date Memorandum Article of Association
• Certificate of incorporation.
• Certificate to commence business.
2. Remittances & Online Department
“Remittance department plays an important role in transfer of funds from one place to another”.
Askari Bank Limited provides this service to their customers as well as general public.
Different instruments are used to remit money. The instruments can be defined as: “It is in
writing containing an unconditional order signed by the maker to pay certain amount to or to
the order of a certain person for future determinable time”.
Four parties are involved in remittance: -
✓ 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.
✓ Remitted 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.
✓ Issuing Bank, it is such a bank that sends or affects the remittance, through
demand drafts, telegraphic transfers, or Mail Transfers.
✓ Paying Bank paying Bank also knows as the drawee branch. It is the branch on
which the instrument is drawn. It has to make the payment (usually located in a
different city country).
Kind of Remittances
o Transfer within the branch

o Transfer from one branch to another
o Transfer from one bank to another bank in the same city
o Transfer from one bank to another bank in two cities.
3. Cash Department
“Cash department is the most important because it is point of contact between the bank and the
customer”. The Askari Bank Limited provides an efficient and personalized service to their
customers. This department creates the impression of bank commitment of professionalism in
its system and procedure and to courteous and efficient customer service. So the staff of cash
department is well equipped and trained not only in technical handing of cash but also in the
art of customer.
A. Functions of Cash Department
Cash department of Askari Bank Limited performs following functions:
o Receiving cash from the customer

o Making payment to the customers against their cheques or other payment
instruments
o Handling cash withdrawal and deposit into the bank account with state bank of
Pakistan and with other branches of bank.
o Ensuring proper storage safety and security of the cash in cash and in transit
o Ensuring proper cash management and sorting out of issue able cash into the
denominations.
o Maintaining daily cash position register.
o Transfer of cheques from one account to another and shift the cheques of other
bank to clearing department.
B. Counters of Cash Department
Cash department has two counters as follows:
➢ Cash Receipt Counter

➢ Cash Payment Counter.
Cash Receipt Counter If the customer wants to deposit in his account then he fills the pay in
slip. In pay in slip, the customer writes his account title, account no, the amount in figures &
words, particulars mention the mode of deposit either cash or cheque and sign it. The customer
makes the payment to cashier along with the pay in slip. The cashier checks the details of pay
in slip and if the customer gives broken cash then its detail are written by the cashier at the back
of pay in slip. Then he enters it into cash receipt book and transfers it to the officer. The officer
credits the customer account with the same amount. He posts the transfer stamp and sign on
pay in slip. Finally, the cashier returns the signed counter foil to the customer.
Cash Payment Counter When the customer presents the cheque to withdraw the money the
cashier checks its date, amount in figure, signature and either it is of that branch or any other
branch. If it is of same branch with right date then cashier enter into cash payment book and
transfer to the officer. The officer feed the account number to check that demanded amount is
available in his accountThen cashier makes the payment to the customer and writes the detail
of notes at the back of cheque to maintain daily cash position. The cheque can be returned to
the customer due to following reason:
▪ If the cheque is postdated; i.e., some future date is

written on it.
▪ If the date is of 6 months back.
▪ If the amount in figure and words is different.
▪ If any cutting is made on the cheque.
Transfer of Cheques
If one account holder wants to transfer some amount from one account to another, then he will
give the cheque favoring the other account holder and also fill the pay in slip. The cashier after
checking the details and enter in the register transfer to the officer. The officer transfers the
mentioned account from one account to another.
Maintain the Cash Position
The cash department maintains daily cash position due to following two reasons:
✓ All the banks are advised to maintain a liquidity limit according to SBP regulation
all the funds of the bank are insured to a limit.
✓ When the funds in the branch exceeds from the limits then branch office report to
head office of the bank. The head office takes appropriate measure to maintain these
limits.
4. CLEARING DEPARTMENT
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 draw on each other within a
specified area and thereby secure payment for their client through the clearing house at
specified time” in an efficient way. The main functions of clearing department are:
✓ Accepting transfer delivery and clearing cheques.

✓ Arranging receipt of cheques payment.
✓ Posting of clearing cheques in the system
✓ Maintaining register for inward and outward clearing cheques
✓ Prepare the return summary
✓ Charges for returns
There are some advantages of clearing that is why banks performed this. These advantages
are:
▪ Since clearing does not involve any cash etc and the entire transaction take place
through book entries, the number of transactions can be unlimited.
▪ No cash is needed as such the risks of robbery, embezzlements and pilferages are
totally eliminated.
▪ As major payments are made through clearing, the banks can manage cash payment
at the counters with a minimum amount of cash in vaults.
▪ A lot of time, cost and labor are saved.
▪ Since it provides an extra service to the customers of banks without any service
charger or costs, more and more people are inclined and attracted towards banking.
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.
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 is provided to
customer.
5. Accounts Department
“Accounts department contains all the written evidence of transaction during the day”. It
maintains all the cheques and vouchers of last day transaction. Those vouchers and cheques are
segregated according to their accounts such as current account, ASDA (Askari special deposit
account) account, BBA (Basic Banking Accounts) accounts and Saving Accounts. It also
contains the vouchers of inter branch transaction. After segregating, those cheques and
vouchers are arranged according to their account numbers written on them. Some online
transactions, vouchers are also there, which are kept in online sheet. Head office of Askari bank
send the sheets of current account, BBA account, ASDA account, SAVING account, cash book
sheet, online sheet and IBT sheet. All the cheques and vouchers are marked from there
respected head of account sheets, these sheets contains three columns of cash, clearing and
transfer. In online sheets all the online transactions are marked. Cash book sheet contains all
the vouchers of income, expense, pay order, demand draft and debit and credit vouchers.
Working of Account Department
Accounts department deals and checks the entire working of the Branch; all the vouchers that
have been posted at the computer are scrutinized in accounts department. The “End of Day”
i.e. computer print is also received from the computer. The next day the activity is separated
some statements from the “End of Day”. The vouchers are sorted out head wise. The vouchers
are matched with the entries in the statements. Any abnormality if occurs, is immediately dealt
with. All the vouchers and instruction are checked individually against the computer printouts.
After checking they are signed by the manager of general banking and the internal auditor.
Activities of Accounts Department: The activities of accounts department are:
o Preparation of daily bank positions statement
o Payment of salaries
o Depreciation calculation
o Daily activity checking
o Physical checking of cheques and deposit slips
o Reconciliation of cheques with ledger
o Preparation of statement of affairs
MARKETING FUNCTIONS
The 4Ps of marketing are product, price, place, and promotion. These are the four key elements
that businesses need to consider when developing and executing their marketing strategies.
I. PRODUCT
The product is the core of any marketing strategy. It is what the business is selling, and it is
what the customer is buying. The product needs to be well-defined, with clear benefits and
features. It also needs to be differentiated from the competition. Askari Bank offers a wide
range of banking products and services, including deposit accounts, credit cards, loans,
investment products, trade finance, and Islamic banking products. The bank's products are
designed to meet the needs of a variety of customers, from individuals to businesses.
II. PRICE
The price is the amount of money that customers pay for the product. It is important to set a
price that is competitive, but that also allows the business to make a profit. The price should
also be consistent with the product's value. Askari Bank's prices are competitive, and they are
consistent with the value of the products and services. The bank offers a variety of pricing
options, so that customers can find a plan that fits their budget.
III. PLACE
The place is where the product is sold. This could be in a physical store, online, or through a
combination of channels. The place needs to be convenient for customers, and it needs to be
accessible to the target market. Askari Bank has a network of over 530 branches, along with a
Wholesale Bank Branch in Bahrain and a representative office in Beijing, China. This allows
the bank to reach a wide range of customers across Pakistan and internationally.
IV. PROMOTION
Promotion is how the product is communicated to customers. This could include advertising,
public relations, sales promotions, or a combination of channels. The promotion needs to be
effective in reaching the target market and in generating awareness and interest in the product.
Askari Bank uses a variety of promotional channels, including advertising, public relations,
sales promotions, and digital marketing. The bank's advertising campaigns are designed to
reach a wide range of customers, and its public relations efforts are designed to build the bank's
reputation. The bank also offers a variety of sales promotions, such as discounts and rewards,
to attract new customers and retain existing customers.
Askari Bank Limited uses the 4Ps of marketing to develop and execute its marketing strategies.
The bank's product is a wide range of banking products and services, including deposit
accounts, credit cards, loans, investment products, trade finance, and Islamic banking products.
The bank's price is competitive, and it is consistent with the value of the products and services.
The bank's place is a network of over 530 branches, along with a Wholesale Bank Branch in
Bahrain and a representative office in Beijing, China. The bank's promotion includes
advertising, public relations, sales promotions, and digital marketing.
The 4Ps of marketing are a powerful tool that businesses can use to achieve their marketing
goals. By understanding the 4Ps and how they work together, businesses can create effective
marketing strategies that reach their target market and generate sales.
HR PRACTICES OF ASKARI BANK
Askari Bank Limited is a commercial bank in Pakistan that is committed to providing its
employees with a positive and productive work environment. The bank's HR practices are
designed to attract, develop, and retain the best talent.
RECRUITMENT AND SELECTION
Askari Bank uses a variety of methods to recruit and select new employees, including online
job postings, employee referrals, and campus recruitment. The bank's selection process is
designed to assess the skills, knowledge, and experience of potential employees.
TRAINING AND DEVELOPMENT
Askari Bank offers a variety of training and development programs to its employees, both at
the entry level and for experienced professionals. The bank's training programs are designed to
help employees develop their skills and knowledge, and to prepare them for new challenges.
PERFORMANCE MANAGEMENT
Askari Bank has a formal performance management system that is designed to assess the
performance of employees. The performance management system is used to set goals, provide
feedback, and track progress.
COMPENSATION AND BENEFITS
Askari Bank offers a competitive compensation and benefits package to its employees. The
package includes salary, bonuses, health insurance, retirement savings plans, and other
benefits.
EMPLOYEE ENGAGEMENT
Askari Bank is committed to employee engagement. The bank offers a variety of programs and
initiatives to engage employees, such as employee surveys, employee resource groups, and
social events.
WORK-LIFE BALANCE
Askari Bank is committed to providing its employees with a good work-life balance. The bank
offers flexible work arrangements, such as telecommuting and flextime, and it encourages
employees to take advantage of vacation and sick leave.
HR POLICIES AND PROCEDURES
Askari Bank has a comprehensive set of HR policies and procedures that are designed to ensure
that employees are treated fairly and equitably. The HR policies and procedures cover a variety
of topics, such as hiring, firing, compensation, and benefits.
Askari Bank's HR practices are designed to create a positive and productive work environment
for its employees. The bank's HR practices are aligned with the bank's overall business goals,
and they are designed to attract, develop, and retain the best talent.
Here are some of the key features of Askari Bank's HR practices:
Competitive compensation and benefits: Askari Bank offer a competitive compensation and
benefits package to its employees. The package includes salary, bonuses, health insurance,
retirement savings plans, and other benefits.
Employee engagement: Askari Bank is committed to employee engagement. The bank offers
a variety of programs and initiatives to engage employees, such as employee surveys, employee
resource groups, and social events.
Work-life balance: Askari Bank is committed to providing its employees with a good work-
life balance. The bank offers flexible work arrangements, such as telecommuting and flextime,
and it encourages employees to take advantage of vacation and sick leave.
HR policies and procedures: Askari Bank has a comprehensive set of HR policies and
procedures that are designed to ensure that employees are treated fairly and equitably. The HR
policies and procedures cover a variety of topics, such as hiring, firing, compensation, and
benefits.
These HR practices are designed to create a positive and productive work environment for
Askari Bank's employees. The bank's HR practices are aligned with the bank's overall business
goals, and they are designed to attract, develop, and retain the best talent.
FINANCIAL ANALYSIS
I. Ratio Analysis
“Ratio analysis is the calculation and comparison of ratios which are derived from the
information in a company’s financial statements”. A financial ratio helps investors in
analysis of financial health of the company and forms the basis on which investments are
planned. It is a tool used by individuals to conduct a quantitative analysis of information
in a company's financial statement.
Net Profit Margin
Profit margin is very useful when comparing companies in similar industries. A higher profit
margin indicates a more profitable company that has better control over its costs compared
to its competitors.
Formula
Net profit Margin = Net Profit / Net sales
Calculation
Year Net profit Net sales Ratio
2020 15374600000 40043824000 = 0.384
2021 15495297000 51616007000 = 0.300
2022 16873175000 54821296000 = 0.308

Graphical representation
Net Profit Margin
0.5
0.384
0.4 0.308 0.300
0.3
0.2
0.1
0
Year 2022 Year 2021 Year 2022
Interpretation
Net profit margin measures how much of each dollar earned by the company is translated into
profits. A low profit margin indicates a low margin of safety: higher risk that a decline in sales
will erase profits and result in a net loss.
Net profit margin provides clues to the company's pricing policies, cost structure and
production efficiency. Different strategies and product mix cause the net profit margin to vary
among different companies. Net profit margin is bit better in year 2014 as compare to other
two years.
Return On Assets
Return on assets is a measure of how effectively the firm’s assets are being used to generate
profits ROA gives an idea as to how efficient management is at using its assets to generate
earnings. Calculated by dividing a company's annual earnings by its total assets, ROA is
displayed as a percentage. Sometimes this is referred to as "return on investment".
Formula
Return on Assets = Net profit / Total Assets * 100

Calculation
16873175000 / 567552613000 15495297000 / 509223727000 15374600000 / 443615904000
= 0.030 * 100 = 0.030 *100 = 0.035 * 100
= 3.00 % = 3.00 % = 3.50 %
Return on Assets
4%
3%
3%
3% 3.50%
3% 3% 3%
3%
Interpretation
The purpose of this ratio is to calculate the return that the business is providing on total assets.
This is important from owner’s point of view that what the business is earning on its assets,
how their funds are being utilized. This ratio also provides an indicator of overall effectiveness
of management in generating profit with the available assets the higher the percentage the better
for the organization. If we analyze the above situation, we can find that in 2020 the ratio is
pretty good but it drops in year 2021 and good thing is that it doesn’t drop further are remain
constant at 3% in year 2022 also.
Return on Assets
Return on assets (ROA) is a percentage of the after-tax income as compared to the total assets
of the company. Management at Du Pont came up with Return on Assets (Du Pont), an
approach that determines the impact of asset turnover and profit margin on profits. This
interactive tutorial explains the concept by walking you through the calculations, including
where to find the numbers on the financial statements.
Formula
DuPont Return on Assets = (Net Income / Sales) X (Sales / Total Assets)
Calculation
16873175000/ 15495297000 / 15374600000

54821296000 51616007000 /40043824000
* * *
54821296000 / 51616007000 40043824000 /

567552613000 /509223727000 443615904000
= 0.030 = 0.030 = 0.035

Interpretation
DuPont Return on Assets actually shows the relation of the net income, sales and total asset
during the period. According to the result of the analysis it is clearly indicated that this ratio is
same in year 2022 & 2021 but its high in 2021.
Operating Income Margin
A ratio used to measure a company's pricing strategy and operating efficiency.
Formula
Operating income margin = operating income / net sale
Calculation
36833529000 / 54821296000 35778685000 / 51616007000 28483084000 / 40043824000
= 0.672 = 0.693 = 0.711
Operating Income Margin
Year 2020 0.711
Year 2021 0.693
Year 2022 0.672
0.64 0.66 0.68 0.7 0.72

Interpretation
This ratio measures the percentage of profit earned on sale after deducting operating expenses
from the Gross Profit. This ratio indicates that how efficiently the expenses are being controlled
by management. The higher the margin the lower would be the operating expenses and better
would be management ability to control expense. As we look at the graph the figures are little
disappointed as for as organization is concern as you can clearly see in year 2020 company is
in a better position to manage the expanses but unfortunately it drops year by year which is not
a good sign because it shows company has no or less control on their expanses.
Return On Operating Assets
The return on operating assets measure only includes in the denominator those
assets actively used to create revenue. This focuses management attention on the
amount of assets actually required to run the business, so that it has a theoretical
targeted asset level to achieve.
Formula
Return on operating assets = Net Profit / Operating Assets
Calculation
16,873,175,000 / 325308093000 15495297000 / 313039174000 15374600000 / 323130454000
= 0.052 = 0.049 = 0.048

Return on operating assets
0.054
0.052
0.05
0.052
0.048 0.049 0.048
0.046
Interpretation
This ratio gives the operating efficiency of management. This ratio indicated how Operating
assets are utilized. In other words how much assets are used in operating activities. High Return
on Operating Asset ratio shows the efficient use of operating assets. The ratio is high in 2022
as compare to 2021 and 2020
Return On Total Equity
Return on equity (ROE) measures the rate of return on the ownership interest (shareholders'
equity) of the common stock owners. It measures a firm's efficiency at generating profits from
every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE
shows how well a company uses investment funds to generate earnings growth.
Formula
Return on Equity = Net Income/Shareholder's Equity *100
16873175000 / 69180011000 15495297000 / 61075932000 15374600000 / 52244865000
= 0.244 * 100 = 0.254 *100 = 0.294 *100
= 24.4 % = 25.4 % = 29.4 %

Interpretation
Return on Equity (ROE) is an indicator of company's profitability by measuring how much

profit the company generates with the money invested by common stock owners. It is also
known as Return on Net worth this ratio doesn’t seem to be fluctuate too much just a little
drop in percentage in year 2021 & 2022 as compare to year 2020 .
RATIOS ANALYSIS
OF
ASKARI BANK LIMITED
2020 2021 2022

LIQUIDITY
CURRENT RATIOS 0٫001 0٫001 0٫001
QUICK RATIOS 0٫000 0٫000 0٫000
LEVERAGE
DEBT TO EQUITY 0٫17 0٫01 0٫01
DEBT TO TOTAL ASSETS 0٫001 0٫001 0٫001
ACTIVITY RATIO
RECEIVABLE TURNOVER 0٫001 0٫001 0٫001
RECEIVABLE TURNOVER (IN
583 654 456
DAYS)
TOTAL ASSET TURNOVER 0٫000 0٫000 0٫000
PROFITABILITY RATIOS
NET PROFIT MARGIN 0٫000 0٫000 0٫000
RETURN ON INVESTMENTS 0٫000 0٫000 0٫000
RETURN ON EQUITY 0٫000 0٫000 0٫000
GROSS PROFIT MARGIN 0٫001 0٫000 0٫000
EQUITY MULTIPLIER 0٫18 0٫17 0٫15

VERTICAL ANALYSIS OF
BALANCE SHEET
2020 2021 2022

Cash And Balances With
0٫0008 0٫0008 0٫0009
Treasury Banks
Balances With Other Banks 0٫0005 0٫0004 0٫0004
Lending To Financial
0٫0002 0٫0007 0٫0005
Institutions
Investments 0٫0016 0٫0018 0٫0017
Advances 0٫0065 0٫0059 0٫0060
Operating Fixed Assets 0٫0002 0٫0002 0٫0002

Deferred Tax 0٫0000 0٫0000 0٫0000
Other Assets 0٫0001 0٫0002 0٫0002
100 100 100
Bills Payable 0٫0001 0٫0001 0٫0001
Borrowing 0٫0013 0٫0007 0٫0009
Deposits & Other Accounts 0٫0078 0٫0082 0٫0079
Sub-Ordinate Loans 0٫0001 0٫0002 0٫0002
Liabilities Against Assets

0٫0000 0٫0000 0٫0000
Subject To Finance Lease
Deferred Tax Liabilities 0٫0000 0٫0000 0٫0000

Other Liabilities 0٫0001 0٫0002 0٫0002
0٫0094 0٫0094 0٫0093
Share Capital 0٫0001 0٫0001 0٫0001
Reserves 0٫0004 0٫0004 0٫0004
Inappropriate Income 0٫0000 0٫0000 0٫0001
Surplus On Revaluation Of
0٫0000 0٫0001 0٫0001
Assets- Net Of Tax
100 100 100

VERTICAL ANALYSIS
OF
PROFIT & LOSS ACCOUNTS
Sales 2020 2021 2022

Mark-Up/Return/Interest Earned 100 100 100
Cgs Mark-Up/Return/Interest Expensed 0٫025 0٫049 0٫055
Provision Against Non-Performing Loans
0٫006 0٫007 0٫009
And Advances-Net
Provision /(Reversal) For Diminution In
0٫001 0٫000 0٫000
The Value Of Investment-Net
Bad Debts Written Off Directly 0٫000 0٫000 0٫000
0٫068 0٫044 0٫036
Other
Non-Mark-Up/Interest Income
Income
Fee, Commission, And Brokerage Income 0٫016 0٫010 0٫008
Dividend Income 0٫001 0٫001 0٫001
Income From Dealing In Foreign Currencies 0٫004 0٫004 0٫005
Income From Sale And
0٫012 0٫001 0٫001
Purchase Of Securities
Unrealized Loss On Revaluation Of
0٫000 0٫000 0٫000
Investments Held For Trading-Net
Other Income 0٫004 0٫002 0٫003
0٫104 0٫062 0٫053
Other
Non-Mark Up/Interest Expenses
Expenses
Administrative Expenses 0٫041 0٫030 0٫026
Provision Against Other Assets-Net 0٫000 0٫000 0٫000
Other Charges 0٫000 0٫000 0٫000
Extra-Ordinary/Unusual Items
0٫063 0٫033 0٫027
Gross Profit Profit Before Taxation 0٫063 0٫033 0٫027
Taxation Taxation-Current 0٫020 0٫009 0٫008
-Prior Years 0٫000 -0٫002 0٫000
-Deferred 0٫001 0٫002 0٫001
Net Profit Profit After Taxation 0٫043 0٫023 0٫018
Horizontal Analysis
Of
Balance Sheets
Assets
Current Assets 2020 2021 2022
Cash And Balances With
100 1٫34 1٫70
Treasury Banks
Balances With Other Banks 100 1٫14 1٫51
Lending To Financial
100 4٫38 3٫61
Institutions
Investments 100 1٫49 1٫66
Advances 100 1٫23 1٫42
Fixed Assets
Operating Fixed Assets 100 1٫23 1٫47
Deferred Tax 0 0٫00 0٫00
Other Assets 100 1٫75 2٫45
100 1٫35 1٫55
Liabilities
Current Liabilities
Bills Payable 100 1٫07 1٫50
Borrowing 100 0٫77 1٫09
Deposits & Other Accounts 100 1٫43 1٫58
Non-current
Liabilities
sub-ordinate Loans 100 3٫00 3٫00
Liabilities against assets
100 0٫10 0٫00
Subject to finance lease
deferred tax liabilities 100 1٫08 1٫40
other liabilities 100 1٫77 2٫03
100 1٫35 1٫53
Equity
share capital 100 1٫20 1٫60
Reserves 100 1٫36 1٫35
inappropriate income 0 0٫00 0٫00
surplus on revaluation of
100 2٫75 3٫24
assets- net of tax
100 1٫35 1٫55
HORIZONTAL ANALYSIS
OF
PROFIT & LOSS ACCOUNT
Sales 2020 2021 2022

Mark-Up/Return/Interest Earned 100 1٫96 2٫81
Cgs Mark-Up/Return/Interest Expensed 100 3٫83 6٫25
Provision Against Non-Performing Loans 100 2٫30 4٫07

And Advances-Net
Provision /(Reversal) For Diminution In 100 -0٫96 0٫01
The Value Of Investment-Net
Bad Debts Written Off Directly 100 0٫00 0٫00
Total Cgs
Remaining Revenues 100 1٫28 1٫47
Other Non-Mark-Up/Interest Income
Income
Fee, Commission, And Brokerage Income 100 1٫18 1٫43
Dividend Income 100 1٫94 4٫15
Income From Dealing In Foreign Currencies 100 1٫97 3٫23
Income From Sale And 100 0٫18 0٫21
Purchase Of Securities
Unrealized Loss On Revaluation Of 0 0٫00 0٫00
Investments Held For Trading-Net
Other Income 100 1٫16 1٫81
100 1٫16 1٫41
Other Non-Mark Up/Interest Expenses
Expenses
Administrative Expenses 100 1٫40 1٫78
Provision Against Other Assets-Net 0 0٫00 0٫00
Other Charges 100 13٫28 44٫50
Extra-Ordinary/Unusual Items 0 0٫00 0٫00
100 1٫01 1٫18
Gross Profit Profit Before Taxation 100 1٫01 1٫18
Taxation Taxation-Current 100 0٫95 1٫12
-Prior Years 0 0٫00 0٫00
-Deferred 100 4٫51 2٫59
Net Profit Profit After Taxation 100 1٫05 1٫17
SWOT ANALYSIS
1. Strength
2. Weakness
3. Opportunity
4. Threat
“Swot analysis is a tool that identify the strength, weakness, Opportunity, Threat of the
organization”. Specifically, SWOT is a basic, straightforward model that assesses what an
organization can and cannot do as well as its potential opportunities and threats. The method
of SWOT analysis is to take the information from an environmental analysis and separate it
into internal (strengths and weaknesses) and external issues (opportunities and threats). Once
this is completed, SWOT analysis determines what may assist the firm in accomplishing its
objectives, and what obstacles must be overcome or minimized to achieve desired results.
SWOT Analysis of Askari Bank Limited is as follows:
STRENGTH
Askari Bank Limited has proved itself as one of the leading banking sectors of Pakistan. They
achieved many awards for their excellent performance. The main points which show strength
of Askari Bank Limited are as follows:
• Askari Bank Limited was organized by Army Welfare Trust (AWT) so it has strong
army background.
• Askari Bank Limited has stable growth of profit since its establishment and stability is
strength of any bank.
• The bank has established a good branch network within a short span of time
• The bank has entered in international business by establishing its international branch
in Bahrain.
• The bank design service quality standards to establish inspiring relationships to its
stakeholders.
• Staff welfare has always been a priority. New initiatives like hospitalization plan, car
buy back facility and home loan insurance have added new dimensions to the staff-care
policy and motivated those to out- perform competitors.
• The most important factor in determining the long-term growth and success of an
organization is culture and higher management of Askari Bank limited plays great
emphasis on the development of Askari Culture, a cohesive team work to achieve
strategic objectives and provide quality services to its customers.
• The human resource philosophy at Askari Bank Limited focuses on multi talent hiring,
professional grooming, on the job as well as offsite training and meritocracy based
reward system.
• Technology and automation are a backbone of ACBL’s strategic competitive

advantages overall domestic players.
• Askari Bank Limited has a countrywide network of online branch banking business and
ATMs in all major cities of the country.
• Askari Bank Limited is first bank of Pakistan offering 24-hour computer integrated
telephone banking services.
• Askari Bank Limited has fully automated transaction-processing system for bank office
support.
• Bank has well-developed intra-net and inter-net communication network.
• Bank is pioneer in e-commerce venture in Pakistan through a major retail distributor.
• Askari Bank Limited offers Askari Master Card, which is worldwide accepted.
• Bank achieved A1+, the highest possible credit rating, for the short term obligation and
its long term rating stands at AA. Bank has been honored with the ‘’the Best Bank in
Pakistan’’ awarded by the Global Finance Magazine.
• Askari Bank started Islamic banking in December 2005.
• Askari Bank Limited is among those few banks that are already reaping the benefits of
electronic transactions. All the transactions and information regarded the customer’s
deposits has been computerized. Currently, Flex cube System is being practiced for this
purpose.
• The management of the bank believes in customer focused banking rather than the
product-oriented banking. The products and services designed by the bank are
specifically tailored to the individual needs of its customers. Thus, its strength in
loaning stems from its ability to forge strong relationships not only with borrowers but
also with bank investors by providing them with more innovative features product.
WEAKNESSES
• Although Askari Bank Limited achieved so many awards and international
recognition, but there are also some areas where there is a need of betterment. There
are some weaknesses of Askari Bank Limited and these are as follows:
• In the corporate profile, the bank concentrates on medium sized business and not
emphasizing the small-scale business, which are large in Pakistan.
• To inform its customers about its new innovative products, Askari Bank Limited is
not involved any type of promotional activities.
• Bank has no separate marketing department; bank staff is providing all the
information to its customers but not in satisfactory manner.
• The credit policy of Askari Bank Limited is very strict for individuals.
• Bank is providing credit facilities only to the urban areas not too much attention is
paid to the rural areas.
• Most of the investment is in government securities rather bank should invest in the
corporate shares.
• The procedure and documentation while allow loan is difficult, which is a barrier
for advances.
• Due to lack of computer specialist at branch level it has to take assistance from the
head office so in case they waste their lot of time.
• The human resource department is not performing the function of selection and
recruitment very effectively. Selection process is not on merit due to which
competent persons cannot be selected.
OPPORTUNITIES
There is always a home of improvement for everyone. Askari Bank Limited has many
opportunities for its improvement. The opportunities of Askari Bank Limited are stated as
follows:
• Askari Bank can get the opportunities by increasing its branch network
internationally.
• The bank can increase its customer base by proper promotional campaign of its
products and services.
• House financing schemes can be offered to general public.
• The Bank AKBL has an opportunity to improve in technology.
• Askari bank has the opportunity to steady increase customer deposit by adopting
new marketing and promotion scheme and lunch new scheme for their customer.
• Bank can capture more markets & has an opportunity to significantly increase their
market share by introducing new products for business community, as it is the only
• Group, which can help in effective contribution to the overall profitability of the
bank for its smooth & efficient working in industry.
THREATS
The threats faced by Askari Bank Limited are as follows:
• Bank can lose market share due to insufficient promotional activities.
• Heavy penalties are opposed on banks by State Bank of Pakistan in case of violating
the regulations especially in case of advances.
• The bank is completely anatomized in case of system failure.
• As the banking procedures are complicated that is why general public takes interest
into other options of investments like in shares of companies.
• Askari Bank Limited has many competitors, which are continuously increasing its
products and marketing aggressively. It may cause its customers to shift to
competitors.
• Bank has also a threat of Political instability.
• The job satisfaction level of the employee is very low resulting in high turnover,
which is bad for any organization as it includes huge monetary &non-monetary
costs in fresh recruitments.
• The rate of inflation is increasing along with the unemployment. So due to increase
in price of the products, the savings of the nation is decreasing with passage of time.
So it is a threat for the banking sector that in the future, the deposits of the bank will
decrease.
CONCLUSION
After the completion of my internship in Askari Bank Limited, KCP Branch. I come to
conclude that “It is one of the leading banks of Pakistan”. Askari bank is a financially sound
bank that views specialization and service excellence as the cornerstone of its strategy. Also,
the people at bank are well aware that innovation; creativity, reliability, customized services
and their execution are the key ingredients for their future growth so they are doing their best
in order to fulfill their goals. Askari bank has also won many Awards in the banking world.
And now it is moving towards its goals by achieving its target and playing active role in social
sector as well.
The KCP Branch is established. During my internship program the branch is going to profit.
This was my best time of my working experience, because it is not easy for the branch manager
is going to branch profit during few months of its establishment.
The bank financial position could grow in future as their turnover ratio is satisfactory, but in
short- & long-term bank need to strengthen its position. Thus, Askari Bank has won the
confidence of all its customers by providing them the online services within few seconds. The
future of bank is progressive and will be a leading bank of Pakistan even competing with
foreign banks.
The environment of the bank was very good and the staff over there was very friendly and co-
operative. I have taken keen interest in their work and whenever I asked a question, they always
gave a good response. I had good understanding about the working operations of the bank such
as how work is done, how cash is deal and all the information about ATM and DEBIT card etc.
I have learned that how to deal with the customers.
Personally, I had built much more confidence in myself by doing eight weeks internship. In the
end I would just like to conclude by saying I had a good experience over there with all the staff
members and I also come to know that banking job is not a cup of tea or green tea for everyone.
RECOMMENDATIONS
Although Askari Bank is known as one of the leading banks but there is always a home of
improvement for everyone. To remain the best bank of the Pakistan, Askari Bank should focus
on some areas where there is a need of betterment. It is necessary for them to keep them update
with the changing environment. There are some recommendations that prove beneficial for the
improvement of Askari Bank Limited:
The bank should improve and increase its branch network in Pakistan as well as in foreign
countries. Bank should establish a separate marketing department in each branch. Askari
bank does not advertise much on television which is prime source of information for most of
the people of our country. So, more concentration is required in this area. To survive in the
industry and to earn profits bank should not only rely on its present sources and facilities but
also it should establish new ways of acquiring, managing and sharing market information. All
the officers should be involved in the marketing also and not just opening accounts and
maintaining their records. This can be done through improving their personal relation skills of
visiting the potential customers and convincing them to open accounts whenever wherever
possible. The bank should place emphasis on the organization of effective training &
development program for its new as well as existing employees, so that they can be gradually
updated regarding the recent developments in the field of banking. The important problem
Askari Bank Limited, KCP Branch face is the number of employees working in the bank. The
number of employees are very low due to this problem the distribution of work is also not right.
Some person has more burden of work while some have fewer burdens. So, the overall working
efficiency of the bank is not good.
REFERNCES
✓ http://kalyan-city.blogspot.com/2011/02/what-is-bank-introduction-definition.html
✓ http://www.askaribank.com.pk/board_of_directors.php
✓ http://studypoints.blogspot.com/2012/08/define-term-bank-and-explain-in-brief.html
✓ http://en.wikipedia.org/wiki/Banking_in_Pakistan
✓ http://en.wikipedia.org/wiki/History_of_banking
✓ http://en.wikipedia.org/wiki/Askari_Bank
✓ http://www.askaribank.com.pk/Reports/Askari%20AR%202211%20ALL.pdf
✓ http://www.askaribank.com.pk/index.php
✓ http://www.businessdictionary.com/definition/marketing-mix.html
✓ http://www.businessdictionary.com/definition/promotion-mix.html
✓ http://www.askaribank.com.pk/docs/Schedule%20of%20Charges-2011.pdf
✓ http://www.investopedia.com/terms/s/swot.asp#axzz2KyxgBhMl

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University of Education

Jauharabad Campus, Lahore

ASKARI BANK LIMITED

A Report Submitted to the UE Business School, University of Education,

Submission Date (04 July, 2023)

Internship Supervisor ________________________

HOD / Coordinator ________________________

External Examiner ________________________

influenced how I understand it.

final product and increased my comprehension.

May Allah Bestow His Blessings on All of Us

The definition of bank is as follows:

1. History & Background of Askari Bank Limited

Bank is listed on the Karachi, Lahore & Islamabad Stock Exchanges.

2009, an increase of 23 percent over December 31, 2020.

Rs.11.69 billion at the end of previous year, an increase of 52 percent.

progressive organizational culture of meritocracy, maintaining high ethical and professional

Integrity: A distinctive investment, delivering outstanding performance return and value

improvement in quality of life.

5. Code Of Business Principles

activities and capture large market share.

performance culture, with a continuous improvement focus. To develop a customer–service-

7. Awards & Achievements

of the most notable awards include:

2018, 2019, 2020, 2021, 2022)

• 1st Consumer Choice Award by the Consumer Association of Pakistan (2004)

• Corporate Excellence Award by the Management Association of Pakistan (MAP)

(2002, 2003, 2004)

• The Best Bank in Pakistan by Global Finance magazine (2001, 2002)

• Best Consumer Internet Bank by Global Finance magazine (2002, 2003)

• Best Annual Report Award by ICAP & ICMAP (2011, 2012)

• Top 3 Inter Bank Funds Transfer Initiating Bank by 1-Link (2014)

• Top 3 Utility Bills Payment Initiating Bank by 1-Link (2014)

North 1 North 2 South 1 South 2 South 3

i. Mufti Muhammad Zahid (Chairman)

IV. Branch Hierarchy

Credit Department General Banking Foreign Trade

• Account Opening Department

My activities in different departments are as follows:

5) Fifth and Sixth week

6) Seven and Eight week

i. Reissue able notes

1. Account Opening Department

Main functions of Account Opening department are:

o Providing account opening form according to the customer's requirements

The various choices offered in this regard are:

✓ Specimen signature(s) card

II. SAVING ACCOUNT

III. ASKARI SPECIAL DEPOSIT ACCOUNT

V. PLS TERM DEPOSITS

⮚ Accounts of General Customers

⮚ Accounts of Special Customers

The procedure of opening an account according to the nature is as follows:

Individual accounts are classified as:

• Illiterate Person Account

Documents required to open individual accounts are:

• Account Opening Form (AOF)

The regulations regarding the joint account are:

PARTNERSHIP FIRM ACCOUNT

The documents required for these accounts are:

• Account Opening Form

The partnership accounts are opened under the following conditions:

• Partnership firms can open only current account due to businessconcern.

= 0.030 * 100 = 0.030 100 = 0.035 100

= 0.244 * 100 = 0.254 100 = 0.294 100