Askari Commercial Bank Ltd

Chapter No: 1

Introduction of Organization

1

Askari Commercial Bank Ltd

1.1 History of Askari Bank Ltd

Askari Bank was incorporated in Pakistan in October 9, 1991, as a public limited

company. It commenced its operations on April 1, 1992, and is principally engaged in the

business of banking, as defined in the banking Companies Ordinance, 1962. The Bank is

listed on the Karachi, Lahore & Islamabad Stock Exchanges and its share is currently the

highest quoted from among the new private sector banks in Pakistan.

Askari bank has expanded into a nation wide presence of 57 branches, and on Offshore

Banking Unit in Bahrain. The delivery channels for customer services are supported by a

shared network of over 250 on-line ATMs covering all major cities in Pakistan. As at

December 31, 2003, the Bank had equity of PKR 5.047 billion and total assets of PKR

85.387 billion, with over 350,000 banking customers.

To meet the current challenges and prepare for the future, our strategy focused on the

following:

Increase our market share in most areas of business activity

Develop Retail Banking Business

Introduce fresh initiatives for Corporate and Investment Banking activity

Open an Offshore Banking Unit (OBU) in Bahrain

Implement various technology initiatives to enhance customer service

Pursue an acquisition opportunity to achieve a manifold increase in the branch

network.

Despite the difficult operating environment, Askari Bank was able to substantially

improve our earnings during 2003 by posting operating profits. Considering our

historically high liquidity, our emphasis during 2003 was more on the expansion of our

credit portfolio rather than deposit mobilization.

During the year, we were also able to successfully implement the two important elements

of our credit management strategy:

2

Askari Commercial Bank Ltd

(a) Well diversified credit expansion

(b) Containing non-performing advances.

This was achieved despite intense competition for private sector credit in the market.

While some banks were able to achieve substantial growth in consumer financing, our

credit expansion was primarily commercial based, as we remained prudent in identifying

opportunities for sound consumer lending. However, Askari Bank does realize that the

potential for growth in the area of Retail Banking is tremendous, and we will be pursuing

a more aggressive stance in 2005.

1.2 Mission & Vision of Askari Bank

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

delivering quality service through innovative technology and effective human resource.

Management in a modern and progressive organizational culture of meritocracy,

maintaining high ethical and professional standards, while providing enhanced value to

all our Stakeholders, and contributing to society.

Askari Information Systems Limited is an esteemed organization that provides global IT

Solutions in software development. Company’s Vision is “to become an international

leader in information technology and provide quality people, products and services with a

personal touch”.

1.3 Company’s Objectives

To achieve sustained growth and profitability in all areas

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

3

Askari Commercial Bank Ltd

To maximize use of technology to ensure cost-effective operations, efficient

management information system, enhanced delivery capability and high service

standards.

To manage the Bank's portfolio of businesses to achieve strong and sustainable

shareholder returns and to continuously build shareholder value.

To deliver timely solutions that best meet the customers' financial needs

To explore new avenues for growth and profitability

1.4 Strategic Planning

To comprehensively plan for the future to ensure sustained growth and

profitability.

To facilitate alignment of the Vision, Mission, Corporate Objectives and

Corporate Philosophy, with the business goals and objectives

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

procedures.

To provide strategic solutions to mitigate weak areas and to counter threats to

profit

To identify strategic initiatives and opportunities for profit

To create and leverage strategic assets and capabilities of business for competitive

advantage

1.5 Corporate Information

Lt. Gen. Waseem Ahmed Ashraf Chairman

Lt. Gen. (R) Masood Parwaiz Chairman Executive Committee

Mr. Kalim-ur-Rahman President & Chief Executive

Brig (R) Muhammad Shiraz Baig Director

Brig (R) Asmat Ullah Khan Niazi Director

Brig (R) Muhammad Bashir Baz Director

Brig (R) Shaukat Mahmood

ChaudhariDirector

Mr. Zafar Alam Khan Sumbal Director

Mr. Kashif Mateen Ansari Director

4

Askari Commercial Bank Ltd

Mr. Muhammad Najam Ali Director

Mr. Muhammad Afzal Munif Director

Company Secretary

Mr. Saleem Anwar

Audit Committee

Mr. Mohammad Afzal Munif, FCA Chairman

Brig (R) Muhammad Shiraz Baig Member

Brig (R) Asmat Ullah Khan Niazi Member

Mr. Zafar Alam Khan Sumbal Member

Registered Office /Head Office

AWT Plaza, The Mall,

P.O.Box 1084, Rawalpindi.

Tel : (051) 9063000   Fax: (051) 9272455

Website: http://www.askaribank.com.pk/

1.6 Departments of Organization

Askari Bank having the aim of winning market is functioning with twenty departments at

head office. Out of these twenty departments every branch of Askari Bank indifferent

areas of country is operating with eight to ten departments. Twenty departments at head

office are the following:

1. Administration 9. Small & Medium Entp. Group

2. Audit Branch 10. Special Operation Management

3. Central Finance 11. Division Treasury Operations

4. Central Operation 12. Division Financial Institution

5. Corporate Banking Group 13. Management Information System

6. Credit Administration 14. Small & Medium Entp. Group

7. Customer Services & Quality  15. Treasury Operations

8. Marketing 16. Human Resource Division

5

Chapter No: 2

Information System of Askari Bank

2.1 Information System of Askari Bank

Information is the life blood of an organization. Managers depend upon accurate

accessible and useful information, this requires the information system to be responsive

to their unique information needs, to empower them to think and act

strategically ,develop effective plans, and make decisions that increase their own and

their organization’s competitiveness.

Today, largely through advances in computer and communications technology, we are

living at a time that many people call the information age. One major reason our era is

named so is because most working people today have jobs that are information –

intensive. For example jobs such as teaching, accounting, retailing and managing are all

predominantly based on the handling of information. This emphasis differs from that of

the earlier decades, in which most jobs involved some type of physical labor applied on

farms and factories.

Askari information Systems Limited (AIS) has software that manages the leave record of

the organization. Organization has a developed web-based application, which will

automate the leave management system of Askari Information Systems Limited (AIS).

2.2 Department of Information System

The information system department has to be of fundamental importance. And it turned

out not only to be just that but also a department with one of the friendliest atmospheres.

Their GM Mr. Kamal Ahmed is him self an inspiration and clearly sets the tone for his

department. Information system department is divided into three subdivisions:

Billing

IS

System Enhancement

2.2.1 Billing

Once they get the data from customer services and the finance department about the

bills of the customers then it is their responsibility to make sure that the bill gets

delivered rightly to the customer. This is done in a series of three tasks

a. Input data

b. Bill Presentment

c. Bill Processing

2.2.2 IS

Though the IS department has been divided into four main functions

1. MIS

2. LAN/WAN

3. Database Administration

4. Network Maintenance

However, these four can be categorized into two main functions:

i. System Operations

ii. Data Networks

i. System Operations

This is there to see to it that if a remote location wants to access a certain piece of

information, which is stored centrally, and then it should gain access to it. It does that

by covering all of the technicalities regarding the LANs and the WANs and they also

manage Askari Bank Information Systems.

ii. Data Networks

Once system operations gives access to an external or internal inquiry to their data

bank then it is the responsibility of the data networks department to insure

connectivity and smooth and secure transfer of data.

2.2.3 System Enhancement

This subdivision is basically indulged in activities like new product development,

system enhancement and up gradation, software maintenance. Though they usually

make use of the technology and Research and Development of Nortel but further

system enhancement is very much important for Askari Bank.

2.3 Business Activities

Following are the Business Activities implemented in Askari Information Systems.

1) All employees in development department request for leave to their respective

project Manager.

2) All employees in marketing department request for leave to the marketing

executive.

3) The Project Manager can approve or reject a smaller duration leave request. But

he can only recommend a long duration leave request to the General Manager

Development.

4) Similarly the Marketing executive can approve or reject a small duration leave

request but for a longer duration leave, General Manager Marketing must approve

request.

5) The Project Managers and Marketing Executive do the leave request to the GMD

and GMM respectively.

6) The General Manager Development and General Manager Marketing can both

accept or reject the leave request.

7) The employee in Finance department, Admin department and Human Resource

department do the leave request directly to the CEO (Chief executive officer).

8) The General Manager Marketing and General Manager Development do the leave

request directly to the CEO.

9) The CEO can approve or reject any of the leave requests.

10) The record of all the approved leave requests is kept and maintained by the

Human Resource Manager.

2.4 Leave Management System (For Employees)

A leave management system keeps record of all the information related to leave

scheduling, request, approval etc of an employee. Askari information Systems Limited

(AIS) has software which keeps record of all the activities related to leave management.

Leave Management system will automate the leave management system of the Askari

Information Systems Limited (AIS). It is an automated leave management System. On

leave request employees can view his/her previous leaves history. Authority user can

view employees previous leave history while approving leave application. System

automatically keeps check on the late coming and early going employees and provides

functionality to administrator to mark half leave of the employee (integration with time

and attendance system). Leave Management System will provide efficient way to manage

the reports of leaves of the employees. On year completion system will automatically

manage the earned leaves and transfer employees earned leave to next year.

2.6 System Development Life Cycle

2.6.1 Feasibility report

The MIS manager prepares the Feasibility Report to check cost effectiveness and the

required results of developing software.

2.6.2 Specification Requirement

MIS manager sees what is required for making system i.e., staff, time, programmes

and programmers, PC’s and its peripherals. The previous system is analyzed to check

what were the short comings due to which new software is required.

2.6.3 System Design

At this stage no actual programming is done but you will design the required fields

i.e., what are the fields for which entry of data is necessary e.g. name, address etc and

then their queries are designed, modules are formed, data entry forms are made. It is

just paper work.

2.6.4 System Construction

At this stage actual programming is done. A skeleton of system is made and the

programmer programmes the software exactly up to the requirement of the MIS

manager.

2.6.5 System Implementation

After testing and debugging, the system is implemented, when MIS manager is fully

satisfied.

2.7 Information Resource Management

Because so many of the organizations key operations and decision making process

depends upon the use of information, Askari Bank perceives it as key resource. One such

example of that of Bank Accountant whose skillful handling of information has great

effect on the data that is being used to take decisions.

Thus along with such tangible assets such as property, plant, equipment, personnel and

financial resources-information and knowledge have substantial value to organizations.

The term used to describe this view of information is Information Resource

Management (IRM): a concept that recognizes information as a key resource that should

(as should any vital resource) be properly managed. Other fields also think of their assets

in this way. For example the business fields of organizational behavior and human

resource management are based on the recognition of an organization’s employee as key

assets.

In IRM, information is seen as a desirable investment that can be used strategically to

provide a competitive edge, rather than only as a necessary expense that must be

controlled for example it is only through information that Banks take crucial decisions

such as whether to invest in a firm or not? etc., MIS is perceived as an area that can

generate opportunities or value for the organization, not mainly as a source of problems.

Because MIS is seen as a playing a pivotal role in the future successes of IRM-oriented

firms including Banks. The person in charge of the MIS area is often found at the middle

managerial level. In this position the information system department participates in

strategic planning and other key decisions that are made by the organization’s top level

managers.

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Chapter No: 3

Management Information System

3.1 Management Information System

Management information system is said to be any system that provides people with either

data or information relating to an organizations operations. Information systems support

the activities of employees, owners, customers, and other key people in the organizations

environment – either by effectively processing data to assist with transaction work load

or by effectively supplying information to authorized people in a timely manner. For

example, the transaction processing (data processing) system used to perform accounting

and clerical operations in a Bank or any other organization are information systems.

Management Information Systems (software) has become a driving force. It is engine that

drives business decision-making. It serves as the basis for modern scientific investigation

and engineering problem solving. Today, Management Information System takes on a

dual role. It is product, and at the same time, the vehicle for delivering a product.

Decision support systems, office information system/office automation system, and

knowledge based systems are also viewed as facet’s of an organizations information

system, along with inter organizational electronic data inter change (EDI) system that

strategically link a firm to its customer and suppliers.

3.2 Management Information Subsystems

Management Information System include many subsystems such as Decision Support

System, Transaction Processing System, management reporting system, Office

Automation System, Forecasting System etc however these will be discussed in detail

later in the report.

3.3 Data versus Information

Many people use the terms data and information synonymously. However there’s a

distinct and important difference. Data refers to facts. When data is filtered through one

or more processors so that they take on meaning and value to person they become

information, it is information rather than data which people use to make decisions.

3.4 Data Processing-Information Cycle

Both computer and human mind act as processors that select data and transform them into

meaningful information. As information is generated from data it too becomes a part of

the data store. The data processing-information cycle shown above illustrates this. Some

of the types of information that may be provided to decision makers after data are

transformed into information by computers or some other kind of processing. The format

of the information received is often dictated by the needs and preferences of the decision

makers.

3.5 Information Technology

Computers are an essential part of modern information systems, and it is virtually

impossible to study information systems today without knowing something about them

and how it operates. In fact, without computers it is unlikely that information systems

would even be considered a serious field of study. Some of the basic components of a

computer-based information system described below:

3.6 What is a system?

A system is a set of interrelated components that collectively work together to achieve

some common purpose or goal. A CBIS is a collection people, hardware, software, data,

and procedures that interact to provide timely data and information , both internally and

externally, to authorized people who need it, this information may be required by a client

who wants to have the balance of his credit account checked, by an executive who wants

to know how much the bank has loaned to a particular company ,or by a human resource

manager who wants know the particulars of a certain employee , all these people can get

any type of information required through a CBIS in which data is saved in databases and

files.

3.7 Components of Computer-Based Information System

A computer-based information system (CBIS) is an information system in which the

computer plays a major role. Such a system consists of the following elements:

3.7.1 Hardware

The term hardware refers to machinery. This category includes the computer itself,

which is often referred to as the central processing unit (CPU), and all of its support

equipment.

3.7.2 Software

The term software refers to computer programs and the manuals that support them.

Computer programs are machine-readable instructions that direct the circuitry within

the hardware parts of the CBIS to function in ways that produce useful information

from data.

3.7.3 Data

Data are facts that are used by programs to produce useful information. Data is

generally stored in machine-readable form on disk or tape until the computer needs

them.

The technical operations of a CBIS consist of items:

Input

Processing

Output

Storage

Programs available on a CBIS are either systems software or applications software.

Traditionally, programmers write computer programs, users or end users work with

the results. A system analyst assesses the computer-related needs of the users and

designs systems to meet those needs.

To be processed by a CBIS, data must be systematically organized. Usually they

arrange into fields, records, files and databases. Data can also be updated in these

databases but only authorized persons can do that.

3.7.4 Procedures

Procedures are the policies that govern the operation of a computer system.

Procedures often specify the actions that people should take in a step-by-step manner.

3.7.5 People

Every CBIS needs people if it is to be useful. Often the most over looked element of

the CBIS, people are probably the components that most influence the success or

failure of information systems.

**************************************

Chapter No: 4

Management Information System

Chapter No: 5

Personnel & Management

of

Management Information System

5.1 MIS Personnel

The MIS personnel can or cannot be non IT persons. The Information System Manager is

present in all departments of the bank.

The Management Information System (MIS) Manager looks after the I.T Staff and

controls their operations, the planning and implementation of System Development Life

Cycle also is done by the Information System Manager.

Following are the job titles of people who interact directly with managers and users and

in general manage the whole information system-although these are not the only

personnel working the I.T Department, many other job titles may be found within this

area.

5.1.1 Computers Operations Personnel

These are the people responsible for the day to day operations of Transaction Processing

System s, management reporting system, and all other shared multi-user computers.

Some of the job titles for the people in this category are the following:

i. Computer operations manager/System Manager

The computer operations manager is in charge of the entire operations activity. He

has the responsibility of hiring and assigning work to the other operations personnel,

he is generally a supervisor, he also plans the installation and removal of equipment

with consent of the concerned authorities, and generally all other tasks to ensure that

data get processed as efficiently as possible.

ii. Computers operators

They are in charge of running the equipment in the I.T Department. Their job is to

load disks and tapes, create backup files and ensure their safe transport to the second

branch of the Bank; they also initiate solutions to equipment malfunctions and similar

functions.

iii. Data Entry Personnel

These are the people within the bank’s I.T Department who enter data into the main

computer system.

iv. System Librarians

They are responsible for managing data stored on such media such as disks. Including

among these are the backup copies of important programs and data records kept

pertaining to the daily transactions of the bank. Accounting data, debit and credit

entries, customer info etc.

5.1.2 System Analysts

System Analysts are the technology professionals charged with analyzing, designing and

implementing large computer-based information systems. Because they are the crucial

interface among users, upper management, and programmers, they must be skilled in

business, computers, and other technology-based areas. They must also possess good

interpersonal communication skills as they are the one who basically have to

communicate with the employees of the organization and perceives whatever they may

need in the Information System that is being designed...

5.1.3 Programmers

The computers professional who are specifically charged with writing computer

programmers are called programmers. Some of the types of programmers, maintenance

programmers, and systems programmers.

i. Application Programmers

The programmers code the applications programs-the software that serves the direct

needs of end-users. Generally it is the systems analyst who initially specifies what

programs needed must do. Armed with a set of formal-often technical-specifications

from the analyst, the applications programmer then write programs from them.

ii. System Programmers

System programmers code the systems software that controls the operation of

computer hardware and makes it possible to run applications programs.

5.2 MIS Management

At the top of the computer hierarchy are MIS executives. In Askari Bank Limited I.T

Managers or I.T Director is at top of the I.T Department Hierarchy. These MIS

executives oversee the full range of MIS-related activities, including Transaction

Processing which traditionally accounts for the largest share of the information

processing- as well as telecommunication, data administration, and end-user support.

5.2.1 Database Administrators

Database administrators are responsible for ensuring that users and programmers have

access to the data that they need in order to make decisions or run applications. They are

also responsible for ensuring both the integrity and security of the data in the database.

Managers and users are likely to have to contact and work with database administrators in

order to gain access to the data they need.

5.2.2 Telecommunications and Network Management/Network Administrator

Telecommunications mangers and network managers/Network Administrators are

responsible for meeting the data communications needs of users in the organization. The

increasing trend toward networking and distributed processing has increased the

importance of these positions.

5.3 Duties of MIS Personnel

They manage information inflow from start of any work to its final destination

and scrutinize all the information.

They generate report for a top manager e.g. is target matched or not?

Audit: they scrutinize the systems that are already present for the purpose of

compliance of system in bank.

Payrolls: it is made on MIS. In it information about employees, his salary

allowances, deductions, provided fund, tax, net and gross salary is recorded and is

given to employees in printed form.

Communication: E-mail is used with URL i.e., www.askaribank.com.pk

Through ASKARI BANK lines

They don’t use a secret net connection b/c they don’t have web-based server and they

use dial-up connections.

5.4 Data Management

The issue of how to manage data receives a great deal of attention from information

system professionals. Managerial decision making is likely to be more effective when

managers are able to quickly access the data they need on demand.

Most of the other databases data has been stored on computer-files and databases.

These databases include:

Customer/client databases

Employee databases

Accounting databases

Credit databases

Data has been physically stored on a variety of media, including magnetic disks, compact

Discs and paper such as business forms, memos and reports.

However it has been experienced that Computer based storage offers several advantages

over paper based storage, such as abilities to;

store data compactly and efficiently

quickly edit and modify stored data

make backup copies

rapid access

5.5 File Based Management System

File processing refers to an environment in which data is physically organized into files

(collection of related records). The file processing environment is linked to the specific

application programs that are being used in the organization. These data and files are

shared by many application programs.

Although file management is done manually as files on the computer cannot be manually

signed, but files are also created on computer for record and references. Files made on

FMBS include:-

Basic borrowers fact sheet (personal & professional record)

Their Securities (legal documents are manually kept0

Correspondent Files

Credit Files

Legal Files

Working

Askari Bank uses a file processing system with different customer files for example:

checking, savings and loans. Often, customers call the bank questions on several of their

accounts.

Suppose the customer called in with questions about his or her savings, checking, and

loan account. Service representative now has to go through the following procedure:

Enter the checking-account-balance program

Get the required checking Information

Leave program

Enter saving-account-balance program

Get the required saving Information and leave program

Enter loan-account-balance program

Get the required loan Information and leave program

5.6 Data Based management System

Database management system is a collection of software that has been designed to

provide a systematic and flexible approach to organizing and access to data that could

possibly exist as separate files

In database management all of the Information is put into a central database and only one

program or file entry is required. When a customer makes an enquiry all the checking,

savings and loan data are instantly available. DBMS has not yet been fully implemented

in Askari Bank and will be used when web-access is made.

It is used for references only and soft copies are made for example a credit database may

include:

Name

Location

approval authority of credit

expiry/tenure

securities

sort of finance

*********************************

Chapter No: 6

Hardware

6.1 Hardware Resources

Hardware resources include all physical devices and material used in information

processing. Specifically, it includes not only machines, such as computer and other

equipment, but also data media. That is tangible objects on which data is recorded, from

paper sheet into magnetic disks. Examples of hardware, which Askari Bank is using in

Pakistan, are as follows:

6.1.1 Main Server

Processor 1x Intel Xeon DP 2.4 GHz (400 MHz Front Side Bus)

Processor Capable 2 (DP)

Cache 512KB built-in-on motherboard

RAM Installed 1 GB

PC2100 ECC 266 MHz Registered DDR (ECC Chip Kill)

Server Internal Storage

Capacity

Five Ultra 320 SCSI enabled Bays

Slots 5

Ports Four USB, 1 Keyboard, 1 Mouse, 1 Parallel, 2 Serial, 1

Graphic, 2 x Ethernet

Network Interface Card 2 x Gigabit Ethernet 10/100/1000, 64 Bit Full Duplex,

Wake on LAN (Integrated)

CD-ROM DVD-RW

Floppy Drive 1.44 MB Floppy Drive

Display 17” Display

Printer Laser Jet 1200 HP

6.1.2 Client Computers

All client computers which are using in Askari Bank are IBM Compatible with following

configurations:

Intel/Celeron 650 MHz (P-3)

128 MB RAM (Memory)

20 GB HDD (Hard Disk Drive)

Window 2000 Professional

***************************************

Chapter No: 7

Software

7.1 Software Resources

Askari Bank software resources include all set of information processing instructions.

This generic concept of software include not only the set of operating instruction called

computer program, which direct and control computer hardware, but also the sets of

information processing instructions called procedures that people need.

Computer Program

A computer program or software program is a step-by-step list of instructions written for

particular computer architecture in a particular computer programming language. The

term "program" specifically refers to the blocks of instruction code that are loaded into

memory for execution by an interpreter. “Instruction” can be defined as command given

to computer.

All programs on a computer system can break down into two main categories:

1. System software

2. Application software

7.1.1 System Software

System software is a generic term referring to any computer software whose purpose is to

help run the computer system. Most of it is responsible directly for controlling,

integrating, and managing the individual hardware components of a computer system.

System software is opposed to application software that helps solve user problems

directly.

System software is the operating software, which Askari Bank use to control and

supports the operation of a computer system. SQL Server 2000 (For Database Server) and

Window 2000 (For Normal Server/Clients) are using as system software in Askari Bank.

System software performs tasks like transferring data from memory to disk, or rendering

text onto a display. Specific kinds of system software include loading programs,

operating systems, device drivers, programming tools, compilers, assemblers, linkers, and

utilities. System software can be stored on non-volatile storage on integrated circuits that

is usually termed firmware.

7.1.2 Application Software

Application software is a subclass of computer software that employs the capabilities of a

computer directly to a task that the user wishes to perform. Application software includes

user-oriented programs. Application software includes the programs, software packages,

and tools needed for such specific, end-user-oriented tasks as billing, accounts receivable,

word processing, payroll, database management.

Two main categories of application software exist.

i. General-purpose application software

It includes programs and packages that are being used by workers in the organizations

subunits such as word processing spreadsheets, database or file management, and

presentation graphics. These are more likely to be purchased externally than developed

internally by the organization.

ii. Special-purpose application software

It includes programs and packages that support the activities of workers in a particular

subunit. Accounting debiting and crediting entries, software’s used in ATM’s, and

payroll are usually called Special-purpose software’s as these software’s have been

developed for special purpose operations and have to be custom made according to the

organizations requirements. This kind of software is being used by a limited number of

users or subunits than are in general-purpose applications.

The following application softwares are used by Askari Bank:

Microsoft Access

Microsoft Word

Microsoft Excel

SQL 2000

Usually, SQL server 2000 is used as backend database server by Askari Bank for their

database through which data is record, retrieve, edit, or delete etc.

***************************************

Chapter No: 8

Networking

8.1 Networking

A network consist of two or more computers connected together on a desk or it can

consist of many Local Area Networks (LANs) connected together to form a Wide Area

Network (WAN) across a continent.

In the Askari Bank all the workstations within the Bank are connected through Local

Area Network (LAN). The bank has over 107 branches all over the country which have

been linked through Microwave or Phone lines, Satellites and most of the connections

have been provided by Comsat.

8.1.1 Local Area Network (LANs)

Local Area Networks - a system of computers that share resources such as hard-drives,

printers, data, CPU power, fax/modem, applications, etc... They usually have distributed

processing - means that there are many desktop computers in the Askari Bank which are

distributed around the network and that there is no central processor machine

(mainframe).

The components used by LANs in Askari Bank can be divided into cabling standards,

hardware and protocols. Following are components which are using in Askari Bank:

Coaxial cables

Bayo Nette Connector (BNC)

Star Topology

Bridges

Ethernet Hubs or Multi-port repeaters

But in some departments of Askari Bank Fiber-Optics cable is using for high speed data

transfer rate. Data remain accurate when it passes through it, because it has high

bandwidth, no problem with EMI, durable cables, and cable run as long as several

kilometer. The size of optical fiber is very small just like a human hair.

8.1.2 Topology

The physical topology of a network of Askari Bank is configuration of cables, computers,

and other peripherals. Physical topology should not be confused with logical topology

which is the method used to pass information between workstations. Basically, Askari

Bank is using star topology in their most departments. So, that’s why I will discuss the

star topology which is given below:

i. Star Topology

Star network is one of the most common computer network topology which is used in

Askari Bank. In its simplest form, star network consists of one central, or hub computer

which acts as a router to transmit messages.

A star network requires each node of a network to be connected to the central file server

or host via a single cable. To enable this connection to take place, a piece of equipment

called a 'hub' is used. Each cable leading from a node is plugged into the hub and a single

cable is used to link the hub to the file server node. Thus each node has its own direct

connection but congestion can occur between the hub and the file server.

Advantages of a Star Topology

Easy to install and wire.

Easy to implement and extend, even in large networks

Easy to detect faults and to remove parts.

No disruptions to the network then connecting or removing devices.

The failure of a non-central node will not have major effects on the functionality

of the network.

Disadvantages of a Star Topology

Requires more cable length than a linear topology.

If the hub or concentrator fails, nodes attached are disabled.

Maintenance costs may be higher in the long run.

Failure of the c node can disable the entire network.

More expensive than linear bus topologies because of the cost of the

concentrators.

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