Internship Report Internship Report

On On

ASKARI Bank Ltd. KHANEWALASKARI Bank Ltd. KHANEWAL

Compiled By:

Imran Mehmood

Mc070200390

MBA (Finance)

Session 2007-2009

Cell # 0333-5585694

Date of Final Report

Jun 29, 2009

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Dedication

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ACKNOWLEDGEMENT

First of all I praise to Almighty Allah who gave me the strength and

courage and patience to complete this report.

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I am highly thank full to Mr. Rehmat Ali Sheikh (Manager

Operations), Miss Farhana Ali (In charge General Banking Officer) and

Mr. Mehmood Ali Siddiqui (Head Cash Department).

I am also thanks full to Instructor FINI 619 (Virtual University) who

provided me this opportunity to carry out this report. In the end I praise

my friends who assist me in completing this report.

Executive summary

Internship is an integral part of MBA program. Main purpose of internship is to

have a practical experience. It provides a student to get a practical experience and

give inner view of the organization selected. During this internship, a student comes

to practical knowledge. I have also done my internship in ASKARI Bank Ltd.

Khanewal. Knowledge can not perfect without practical. So, in Khanewal branch I get

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practical exposure and to get familiarized with the ways to live in the organizational

environment which is dramatically different from the educational environment.

First of all I will tell you about Bank then I will tell operations of different

department. In preparing this report Mr. Muhammad Arif Waseem Manager

Khanewal branch and all staff members help me about all topics, I have put

all of my best efforts and tried my level best to give maximum knowledge.

Scanned Copy of Internship Report

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Table of ContentsTable of Contents

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Brief introduction of the organization’s business

sector

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There are at present 20 domestic banks with 7,590 branches and 21 foreign

banks with 71 branches in operation in the country. Total Paid-up capital of

scheduled banks amounted to Rs. 33.82 billion as on 1st April, 1993 as compared to

Rs. 29.29 billion on 2nd April, 1992. Their total assets amounted to Rs. 1089.76

billion on 1st April, 1993 as compared with Rs. 864.92 billion on the corresponding

date last year. Their assets increased by 13.1 per cent during the first nine months of

the current year up to 1st April, 1993 compared to an increase of 12.0 per cent

during the corresponding period a year earlier.

During this period their credit showed a rise of Rs. 55.54 billion or 20.3 per

cent as compared with a rise of Rs. 30.54 billion or 13.0 per cent during the

corresponding period last year. They mobilized deposits aggregating to Rs. 46.74

billion during the first nine month period of the current year as compared with an

increase of Rs. 40.01 billion recorded during the same period last year, indicating a

rise of 16.8 per cent. Their investment in government securities, treasury bills and

other investment in shares and securities increased by Rs. 13.00 billion as compared

with an increase of Rs. 24.84 billion in the comparable period last year.

PRIVATE BANKING

Pakistan's private banks seem to have made deeper inroads in the saving

habits of people as the promising working results published by half of them for last

year alleyed fears about their commercial viability in a tight liquidity market and a low

savings rate. Most of them have completed the first year of their operation

successfully, showing profits and in some cases good payouts too. Many financial

analysts felt that years to come could be much better if the current pace of growth

was maintained. What seem to have impressed them are economics of scale at all

levels and an efficient management of the financial affairs. "If the maiden year is any

yardstick to the future, they have snatched away their due share with skill and

professional efficiency, "says a leading financial analyst. But most of them have

transferred big amounts to reserved fund or special reserve funds, a tendency might

be good or bad at the same time for a new bank, he added.

In some cases they did not share profits with the share holders but made it a

point to transfer certain amounts to the reserve funds. What is important for us is to

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maintain a strong liquidity position at least for the initial few years as a cushion

against high borrowing costs and other allied compulsion of the situation, another

banker said and added it was also necessary to meet the central bank's

requirements.

Some two years ago Pakistan government allowed the private sector to set up

commercial and investment banks and soon after more than a dozen banks were

established. Pakistan had five banks in the public sector, out of which two Muslim

Commercial Bank (MCB) and Allied Bank Limited (ABL), have been sold to the

private sector.

Most of the new banks were owned by powerful industrial groups including

Saigols, Habibs, Dawoods and Nishat groups, some of them have stake in more

than one bank. Banking sources said though some of the banks catered to the needs

of their group business, they are as open to others as to their own group.Banks in

Pakistan have been catering basically to the needs of the Government

Organizations, subsidizing the fiscal deficit, serving a few large corporations and

engaging in trade financing. There was no lending to small and medium enterprises,

to the housing sector or to the agricultural sector, which create most of the growth

and employment in Pakistan. Most important, the financial system suffered from

political interference in lending decisions and also in the appointment of managers.

The middle class which is the backbone of any Reproduced from Blue Chip – The

Business People’s Magazine - January 2005 economy was not given due attention

by the banking sector. There were legitimate reasons for such an errant behavior.

First, the government’s fiscal deficit was so high that most of the deposits the banks

used to get, were loaned to the government and government corporations. This was

safe lending which fetched good returns and the banks made good profit out of it.

Naturally, there was little incentive for them to do anything else except lend to the

Government which was both risk free and highly remunerative. Secondly, the

government owned most of the banks. In the government banks the staff worked like

typical government employees, coming to office at 9:00 a.m., checking files; having

nothing important to do and leaving at 5.00 p.m. without doing much work. These

banks suffered from a high bureaucratic approach, overstaffing, unprofitable

branches and poor customer service. Administrative costs were high reducing profits

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of depositors. Thirdly, recovery rate was so low that almost 25% of the loans were

stuck up as a large number of loans to the private sector borrowers were not given

on the merit of the proposal but on political considerations. These influential

borrowers hardly repaid their loans. Fourth, banking industry faced a high tax rate of

58 percent while the rest of the corporate sector paid only 35 percent. This high

punitive rate along with the burden of stuck loans and inefficiency of the staff was

passed on to the customers in form of high lending rates and low deposit rates. The

banking industry was not attractive for new entrants who could foster competition

and improve efficiency. Because of these factors, i.e. high administrative costs,

burden of stuck-up loans and excessive tax rates, the average interest rate for

lending was about 21% per annum. The middle class borrowers could not afford to

get credit on such high interest rates and pay it back. Banking sector reforms were

thus needed badly to address these and other constraints so that the banks could

play their due role in the economic development of the country. Although, there is no

room for complacency and a lot still needs to be done, even the worst critics of this

government do concede that if there is one sector which has undergone basic

transformation that is the banking sector. The IMF and the World Bank who are not

always very generous or effusive in their praise had this to say about the Banking

sector in Pakistan after completing a comprehensive and thorough review in early

2004. Quote: “far reaching reforms have resulted in a more efficient and competitive

financial system. In particular, the pre-dominantly state-owned banking system has

been transformed into one that is predominantly under the control of the private

sector. The legislative framework and the State Bank of Pakistan’s supervisory

capacity have been improved substantially. As a result, the financial sector is

sounder and exhibits an increased resilience to shocks”

Recent trends in the Banking Sector

Increased Merger & Acquisition activity in the banking sector with local private

banks having made several domestic acquisitions

Large expansion of branch network and deposits by private and some foreign

banks

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Rationalization of branches by nationalized banks

Increased focus towards consumer finance

Increased focus on attracting local rupee deposits

Increased emphasis towards automation and customer service

Reduction in the increase in non performing loans as a result of better

governance of banks and greater accountability process initiated by the

government

Significant increase in inward remittance business as a result of governmental

clamp down on unofficial remittance channels following September 11.

Overview of Organization

Brief History

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Askari Bank Ltd (formerly Askari Commercial Bank) was incorporated in

Pakistan on October 9, 1991, as a Public Limited Company. It started its operations

during 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 and its shares are currently the highest quoted from

among the new private sector banks in Pakistan.

Askari Bank has expanded into a nationwide presence of 150 branches, and

an offshore banking Unit in Bahrain. A shared network of over 1,100 online ATMs

covering all major cities in Pakistan supports the delivery channels for customer

service. As on December 31, 2007, the bank had equity of PKR 12.27 billion and

total assets of PKR 182.17 billion, with over 800,000 banking customers, serviced by

our 6,808 employees.

Product lines (A complete range of products/ services of the

organization)

Consumer Banking Services

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Askari Finance / Loans

Smart Cash

Product Featuring:

Borrower: Resident Pakistani Nationals

Facility: Personal Line of Credit.

Financing Limits: 

Maximum up to Rs. 500,000/-(Clean)

Maximum up to Rs. 1 Million (Secured)

Tenor: One year (renewable).

Repayment: Monthly debt servicing on the outstanding

balance.

Markup Rates: Competitive.

Servicing: Available at all Askari Bank Branches

Balance Transfer

Facility: Available.

Eligibility to Apply:

Age: Between 21 to 65 Years.

Income: Minimum gross monthly income of Rs. 25,000/-

only.

Employment:

 

a) Salaried: Minimum length of confirmed service

with present employer is six months with a total

length of one year service. b) Self Employed:

Minimum 1 year in business. (against security).

Charges/Fees: As per current schedule of charges.

Personal Finance

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One of the quickest approval processes around

One can avail unlimited opportunities through Askari Bank’s Personal Finance. With

unmatched financing features in terms of loan amount, payback period and most

affordable monthly installments, Askari Bank’s Personal Finance makes sure that

you get the most out of your loan. No matter what your need is, Askari Bank has

more ways to serve you than ever before.

Product Featuring:

Borrower: Resident Pakistani Nationals.

Facility: Term Finance

Financing Limits: Maximum up to Rs. 500,000/. (Clean)

  Maximum up to Rs. 1 Million. (Secured)

Tenor: Maximum up to 5 Years

Repayment: Monthly Installments

Markup Rates: Competitive

Servicing: Available at all Askari Bank branches

Balance Transfer Facility: Available

Eligibility to Apply:

Age: Between 21 to 65 years.

Income: Minimum gross monthly income of Rs. 10,000/-

only.

Financing

Limits:

Maximum up to Rs. 500,000/. (Clean)

Employment: a) Salaried: Minimum length of confirmed

service with present employer is

6 months with a total length of 1

year service.

b)Self

Employed:

Minimum 1 year in business.

Charges/Fees: As per current schedule of charges

Mortgage Finance

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Ever since the inception of life, shelter has been rated among the primary needs of

mankind. Owning a home for oneself still remains an exclusive dream for many.

Askari Bank has made the realization of your dream to have a house of your very

own possible. Whether you plan to build a house, tailor made to your requirements

or buy a constructed house, Askari mortgage finance enables you to pursue your

goal without any problems.

Product Featuring :

Borrower: Resident Pakistani Nationals.

Financing Limits: Maximum up to Rs. 30 Million.

Tenor: Maximum up to 20 years.

Repayment: Monthly Installments.

Prime Security: Mortgage of property.

Markup Rates: Competitive

Servicing: Available at all Askari Bank Branches

Balance Transfer Facility: Available

Balance Transfer Facility: Available.

Eligibility to Apply :

Age: Between 21 to 65 years.

Income: a) Salaried: Minimum gross monthly income

of Rs.20,000/- only and a

permanent employee with at

least 2 years of service including

present employer.

b)Self

Employed:

Minimum length of 1 years in

business.

Charges/Fees: As per current schedule of charges.

Business Finance

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You always wanted to put in that extra money into your business, which makes it

grow... and grow!. Now you can stop worrying about your daily cash requirements,

and start enjoying our unique Askari Business Finance facility.

Available up to 60% of the assessed market value of your residential property,

through equitable/token mortgage.

Product Featuring:

Borrower: Resident Pakistani Nationals.

Facility: Running Finance/Term Finance.

Financing Limits: Maximum up to Rs.1.0 Million

Maximum up to Rs.50.0 Million

Primary Security: Residential & Commercial / Built up Properly &

Land.

Mode of Financing: Running Finance: One year line of credit

(renewable).

Repayment: Running Finance: Monthly debt servicing on

the outstanding balance.

Markup Rates: Competitve.

Servicing: Available at all Askari Bank Branches.

Balance Transfer

Facility:

Available

Eligibility to Apply:

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Age: 21 to 65 Years.

Borrowers: Resident Pakistani Nationals.

Business Requirements: Maximum up to Rs. 500,000/. (Clean)

Employment: Minimum one year's business or

professional experience in the present

business

Charge/Fees: As per current Schedule of charges

Investment Products

Askari Mahana Bachat Account (1 + 3 Years Term)

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

“Earn Rs. 1,000/- per month on investment of every Rs. 100,000/- for three years!”

Askari Mahana Bachat Account is a Term Deposit facility available to individual

customer with the option of 1 and 3 Years tenure. It has been designed keeping in

view savings needs of individual investors who don’t want to block their funds for

longer terms, with a competitive rate of return paid monthly on the 1st of every

month. A financing facility up to 90% will be available for customers if required.

Salient Features

Product Type: Term Deposit

Eligibility: Individuals Only

Balance requirements:

Minimum Rs. 50,000/-

Maximum up to Rs.

10,000,000/-

In multiples

of

Rs. 25,000/-

Tenure(s): 1 + 3 Years

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Profit payment: Monthly - 1st of every month

Profit Rates: Competitive

Servicing: Available at all Askari Bank branches

Financing Limits: Up to 90% of the principle amount

Askari Roshan Mustaqbil Deposit

Askari Bank has launched the Askari Roshan Mustaqbil Deposit, a saving plan

specially designed for individual investors who wish to invest now for a regular return

at a later stage while keeping their principal amount intact. With Askari Roshan

Mustaqbil Deposit you can double your investment in a time period of ten years.

Invest now in the form of monthly deposits for five years and get paid back the same

amount for the next five years while receiving your principal amount in full at the end

of the tenure.

Salient Features

Product Type: Term Deposit

Eligibility: Individuals Only

Balance

requirements:

Minimum Rs. 5,000/-

Maximum up to Rs. 50,000/-

In multiples of

Rs. 5,000/-

Tenure: 10 Years (5 + 5)

Profit payment: Monthly – on completion of first 5 years

Profit Rates: Competitive

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Servicing: Available at all Askari Bank branches

Financing Limits:Up to 90% of the principle amount after

completion of first 5 years

Askari Deposit Multiplier Account

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

maturity!”

Aim higher with your investments with Askari Deposit Multiplier account. This

account is for individual investors whose purpose is long term savings with high

returns. With a tenure of 10 Years and a competitive rate of return on maturity this

account is ideal for investors who wish to start saving for their future today.

Salient Features

Product Type: Term Deposit

Eligibility: Individuals Only

Balance requirements:

Minimum Rs. 50,000/-

Maximum up to Rs. 10,000,000/-

Tenure: 10 Years

Profit payment: On maturity

Profit Rates: Competitive

Servicing: Available at all Askari Bank branches

Financing Limits: Up to 90% of the principle amount

Askari Deposit Multiplier Account

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

maturity!”

Aim higher with your investments with Askari Deposit Multiplier account. This

account is for individual investors whose purpose is long term savings with high

returns. With a tenure of 10 Years and a competitive rate of return on maturity this

account is ideal for investors who wish to start saving for their future today.

Salient Features

Product Type: Term Deposit

Eligibility: Individuals Only

Balance requirements:

Minimum Rs. 50,000/-

Maximum up to Rs. 10,000,000/-

Tenure: 10 Years

Profit payment: On maturity

Profit Rates: Competitive

Servicing: Available at all Askari Bank branches

Financing Limits: Up to 90% of the principle amount

Askari value plus deposits

The Best You Deserve

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Askari Bank leads the way, yet again with the introduction of Askari Value Plus

Rupee Deposit Accounts, which promise greater financial freedom and security, in

an un-matched way.

Now you can open a "Value Plus Account" while enjoying the flexibility of a normal

checking account.

1. Value Plus Current Account

2. Value Plus Saving Account

3. Value Plus Time Deposits

askari rupee traveller cheques

Askari Bank Limited has always remained at forefront in introducing innovative

and unique products in banking sector. Our financial instruments provide greater

financial freedom and security in an unmatched way to our valued customers.

Askari Bank offers you its "Rupee Traveller Cheques" eliminating all financial

risks while traveling. So avoid risk of carrying cash through Askari Bank's

Rupee Traveler Cheques.

"Your Best Travelling Companion"

ASKCARD

Askari Bank is committed to provide you innovative and competitive solutions to your

banking needs in a more efficient and personalized manner. Your Bank enjoys a

strategic competitive advantage over all domestic players by virtue of its leadership,

large network and technological advancement. In line with our tradition of innovation,

Askari Bank takes pride in announcing launch of Askari Bank's Debit Card.

Askari Debit Card means freedom, comfort, convenience and security, so that

you can have retail transactions with complete peace of mind. Askari Debit Card is

your new shopping companion which enhances your quality of life by letting you do

shopping, dine at restaurants, pay your utility bills, transfer funds, withdraw and

deposit cash through ATM anywhere, anytime.

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"Convenience at its best"

Internet Banking Services

In pursuance of our quest to provide the most modern service to our customers, we

offer banking through internet. Askari Bank is the first bank in Pakistan to provide

such service to its valued customers which is absolutely FREE

Important Features

1. Balance enquiry

2. Funds transfer

3. Statement of accounts

4. Chage of password

5. Free payment of utility bills

6. Payment of school fee

Electronic Bill Payment Services

It has always been our endeavour to introduce products and services tailor made to

the requirements of our valued customers. Now you can pay your Utility Bills

through:

1. ASKCARD (Askari Debit Card),

2. Askari bank's ATMs Nationawide

3. Internet Banking Services

4. Call Center.

Cash Management Services

Askari Cash Management Services, aimed to effectively manage the accounts

receivable portfolio of medium and large corporate entities. While this service helps

the corporate entities to improve their liquidity, due to our well diversified branch

network.

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The service primarily aims at providing clearing, collection and cash / transfer

facility to corporate, under one resource center, which will handle the process

through the branches and provide adequate reporting to the corporate clients, on

various aspects of their accounts receivable portfolio, every month

Investment Certificates.

Askari Bank's Investment Certificates not only provide the added security,

investment and monthly return to the customers. These certificates are

negotiable and can be transferred to third party. Investment Certificates can be

issued for a period of 3 months and profit is payable on monthly basis through

pre-printed tear-off coupons

Product Features

1. Free issuance and free encashment

2. Account relationship with Askari Bank is not mandatory

3. No penalty on pre-mature encashment

4. Negotiable and payable in Pakistan in Pak rupees only

5. No purchasing limit

6. Valid until encashed

7. Encashable at all Askari Bank Branches

8. Profit is payable on monthly basis through pre-printed coupons

9. In case of loss /  theft or damage, there is replacement / refund to the original

purchaser

10.Encashment by third party

There is no penalty on pre-mature redemption, except that profit coupon shall be

valid only for completed month

Profit / Markup Rates on Retail Products

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Rates of Profit Paid to Value Plus A/C Holders & on ABIC

Particulars Profit Rates

Value Plus Saving Deposits

Rs. 10,000/- to Rs. 24,999/- 2.50%

Rs. 25,000/- & above 3%

Value Plus Time Deposits

Three months 5%

Six Months 5.50%

One Year 6%

Investment Certificates

First Month 4%

Second Month 4.50%

Third Month 5%

Commission being paid to customers on retention of RTC for a period of One Month, @

0.1% of face value of RTC.

Lending Product Rates

 

Particulars Markup Rates

Personal Finance

Up to 3 Years 18%

Up to 5 Years 22%

Smart Cash

1 Year (Renewable) 22%

Business Finance

1 Year 1 Year Kibor + 3% to be reviewed

on yearly basis

Mortgage Finance

20 years maximum 1 Year Kibor + 3% to be reviewed

on yearly basis.

Auto Financing 13% to 15%

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Islamic Banking Services

Islamic Banking was launched under the brand 'Askari

Islamic Banking', by opening 6 dedicated Islamic Banking

branches in major cities of the country. Further expansion

is planned with improved capabilities for offering products

conforming to the Shariah principles.

Askari Islamic Banking opens the doors for Halal banking

solutions. Our objective is to put in place an efficient

banking system suuportive to economic justice and welfare of society in line with

Shariah standards.

A comprehensive range of Islamic Banking products and services is bieng offered, in

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

areas:

Islamic Corporate Banking

Islamic Investment Banking

Islamic Trade Finance

Islamic General Banking

Islamic Consumer Banking

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

Shariah requirements, funds and products of Islamic Banking are managed

seperately from the Conventional Banking side. All funds obtained, invested and

shared in Halal modes & investments, under supervision of the Shariah Advisor.

ASKARI KISSAN AGRICULTURE FINANCE PROGRAM

Agriculture Finance Solutions

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The role of agriculture in Pakistan economy is of

pivotal nature. Due to diverse geographical and

climatic conditions the country has tremendous

potential for growth and development in

agriculture. However, adequate and timely

financial assistance to the farmers will improve

production potential of agriculture sector in the

country. The modern concept of agricultural

credit envisages establishment of an efficient

institutional credit system to serve as a package

of credit, supplies and knowledge for the overall strength of the farmers who at

present suffer from low productivity and financial insecurity. A successful credit

evaluation system, therefore, should have the basic ingredients to provide adequate

amount at the right time and in the right form to help farmers in making a productive

use of loan funds.

The Askari Kissan Agri Finance Program (AKAFP) has been designed to meet ON

FARM / OFF FARM credit requirements of farmers on the most convenient, flexible,

easy terms and conditions. The program features:

A broad array of credit lines designed to meet farming requirements.

Repay and borrow at your convenience on revolving credit basis at lowest

mark-up rates renewal able after three years.

Convenient repayment terms based on cash flow abilities.

Availability of leased Tractors / Transport without Land / Collateral.

No Hidden Cost.

Availability of interest free package for inputs and tractors etc.

No Pre-adjustment penalties.

Earn prompt payment Bonuses and reduce financial costs.

Insurance cover of leased assets, animals, crops and life assurance of

borrowers.

Kissan Tractor Finance

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Traditional modes of cultivation viz Bullocks,

Camels, horses etc can no longer keep pace with

the demands of present times due to manifold

increase in the population. Power in the form of

modern technology is therefore the need of the

hour. To meet this emergent requirement, Askari

Bank has launched a Askari Kissan Tractor Finance to bring power to the fields.

Salient Features of the Program are:

This program has been designed to benefit the owner as well as non-owner

farmers.

The farmer will have privilege of availing non-funded facility at a reduced cost

under this program on account of more equity participation.

Although the facility is available for a period of five years. However, good

farmer bonus will be available to the borrower in case the loan is repaid as per

terms of sanction.

Priority in delivery of tractor will be given by manufacturer as per

arrangements with the bank.

The farmer’s life & tractor will be insured against contingencies, which will

provide comfort and piece of mind.

Kissan Aabpashi Finance

Agriculture farming is impossible without adequate

water. We can combat the prevalent water scarcity by

harnessing more natural resources. Increased use of

mechanical means thus provides a ready alternative.

Keeping in view the scarcity of water, which is the

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lifeblood of arable lands, Askari Bank has started a program for farmers, to finance

installation of Tube-Wells (electric, diesel and solar energy units) water management

equipments and water channel development etc., which will help farmers to make

optimum use of limited water resources.

Salient Features of the Program are:

To facilitate the farmer, to overcome the scarcity of water.

To develop mechanical water resources, sprinkler and drip system etc.

To avoid traditional / inefficient modes of irrigation and waste of available

water.

To manage natural / available resources through water management

practices.

KISSAN LIVE STOCK DEVELOPMENT FINANCE

In order to supplement the income of the farmer,

Askari Bank has launched a program enabling the

farmer to purchase Milch Animals, Goats, Sheep,

Poultry and Fisheries without incurring extra

expenditure because of availablility at his farm. He will

be able to get milk, meat and eggs etc., which normally

do not form part of his diet. This program has the added advantage that besides

fulfilling his own family’s consumption needs he will be able to market the surplus

and earn additional income. This will further improve their cash flows to repay their

other Loans / Revolving Credit on due date

Salient Features of the Program are:

The program will provide regular day to day income to the farmer to meet his

own consumption and surplus to be marketed.

This will revive / accelerate and supplement the income generating capacity.

It will enhance the repayment capacity of the farmer.

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KISSAN FARM MECHANIZATION FINANCE

Beside Power at the farm i.e. Tractor, the benefits /

advantages of power are maximized with the use of

Mechanical Support i.e. modern and improved

equipments which essentially complement one another

due to their cost effectiveness and time efficiency.

Askari Bank has launched an Askari Kissan Farm

Mechanization Finance for the assistance of the small farmers and provide finance

for farm equipment, trailer, thresher, drills & rotavators etc.

Salient Features of the Program are:

Under this program the farmer will get benefit of use of modern agricultural

tools, implements and equipments which are cost and time effective.

Improves per acre yield of agri crops and quality of agriculture produce to get

good price in the market.

Helps to match / compete with international standards for exportable

agriculture produce.

KISSAN FARM TRANSPORT FINANCE

A grave handicap that afflicts our farmers is their

inability, due to lack of proper facilities, to take their

produce to the market through efficient means of

transportation. This adversely affects the freshness,

quality of the product and denies them the desirable

Price-Fetching opportunity. Conversely, they lack

mobility to acquire much needed inputs essential for their farming needs. One can

safely conclude that if provided with appropriate and speedy transport, the farmer

can benefit by enhancing his selling ability and thus increase his income / cash flow.

it is pertinent to mention that a number of Banks, Leasing Companies and Private

Agencies have geared their marketing efforts to concentrate on and have mainly

captured the urban markets. There is no support provided to cater to the transport

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needs of deserving rural farmers community. Askari Bank true to its commitment,

has taken the lead to launch Askari Kissan Farm Transport Finance.

Salient Features of the Program are:

To increase mobility and access of the farmer to the markets.

To lower the burden / cost of transportation against hired transport.

To create awareness of market movements in order to obtain maximum price

of their produce.

This will also supplement the income of the farmer which will ultimately

enhance the repayment capacity of the borrower.

Additional income can be generated if used for hired services to the fellow

farmers.

Competitors

In the success story of ASKARI BANK, one of the most important factors, apart from

its dynamic management and prudent approach, is the QUALITY of its SERVICES,

which gives it a great edge over its competitors. ASKARI BANK has always strived to

facilitate its customers by introducing various high quality hi-tech services for the first

time in Pakistan.

National Bank of Pakistan

Emirates Global Islamic Bank

Meezan Bank Limited

Allied Bank Limited

MCB Bank Limited

NIB Bank Limited

United Bank Limited

Habib Bank Limited

House Building Finance Corporation

Khushhali Bank Limited

Askari bank Limited

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Organizational structure

Organizational Hierarchy chart

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President (CEO)

Senior Executive Vice President

Executive Vice President

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Senior Vice President

Vice President

Assistant Vice President

Branch Manager

Corporate Information

Lt. Gen. Javed Zia (HIM) Chairman

Lt. Gen (R) Imtiaz Hussain Chairman Executive Committee

Mr. Kashif Mateen Ansari Director

Mr. Zafar Alam Khan Sumbal Director

Dr. Bashir Ahmad Khan Director

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Officers Grade I, II, III

Clerical StaffCashier Typist & Clerks

Assistant

Non-Clerical StaffGuards & Messengers

Assistant Manager

Operations Manager

Mr. Shahid Mahmud Director

Mr. Muhammad Riyazul Haque Director

Mr. Ali Noormahomed Rattansey Director

Mr. Tariq lqbal Khan Director (NIT Nominee)

Mr. Muhammad Rafiquddin Mehkari President & Chief Executive

Mr. Muhammad Ahmed Ghazali Marghoob Company Secretary

Audit Committee

Dr. Bashir Ahmad Khan Chairman

Mr. Ali Noormahomed Rattansey Member

Mr. Zafar Alam Khan Sumbal Member

Auditors

A.F.Ferguson & Co. Chartered Accountants

Legal Advisors

Rizvi, Isa, Afridi & Angell

Number of employees

Permanent 4,834

Temporary / on contractual basis 1,273

Commission based 789

35

Bank's own staff strength at the end of the year 5,896

Outsourced 912

Total staff strength at the end of the year 7,808

Main offices

AWT PLAZA BRANCH, Rawalpindi Branch Code : 0001

Address : ASKARI BANK LIMITED AWT PLAZA BRANCH RAWALPINDI

City: Rawalpindi Region : North

Manager: 9063200 / 9273178 Manager (Ops) : 9063198 / 9273177

PABX #: 9063158 Fax No: 9273175 / 9273180 /

9273181

E-Mail: b0001@askaribank.com.pk Tlx:

 Main Br, Karachi, Karachi Branch Code :0002

Address : Saima Trade Tower I.I.Chundrigar Road Br,karachi

City: Karachi Region : South

Manager: 0333-2335404 Manager (Ops) : 0321-3077975

PABX #: 021-2630731 Fax No: 021-2631176

E-Mail: b0002@askaribank.com.pk Tlx:

36

M.A. Jinnah Road,Quetta Main, Quetta Branch Code : 0003

Address : M.A.Jinnah Road

City: Quetta Region : South

Manager: 081-2833333 Manager (Ops) : 081-3836051

PABX #: 081-2843751-4 Fax No: 081-2845602

E-Mail: b0003@askaribank.com.pk Tlx:

PESHAWAR CANTT, Peshawar Branch Code : 0004

Address : FAKHR-E-ALAM ROAD PESHAWAR CANTT

City: Peshawar Region : North

Manager: 091-5271653 Manager (Ops) : 091-5279683

PABX #: 091-9212433-6 Fax No: 091-5276391

E-Mail: b0004@askaribank.com.pk Tlx:

Main / SAT Branch, Lahore Branch Code : 0006

Address : 7-A, Shahrah-e-Aiwan-e-Tijarat

City: Lahore Region : Central

Manager: 042-9203081 Manager (Ops) : 042-9203633

PABX #: 042-9203673-7 Fax No: 042-9203351

E-Mail: b0006@askaribank.com.pk Tlx:

Jinnah Avenue Branch, Islamabad Branch Code : 0008

Address : 24-D, Rasheed Plaza, Jinnah Avenue, Blue Area, P.O. Box 1499

City: Islamabad Region : North

Manager: (051) 2871144 Manager (Ops) : (051) 2271801

PABX #: (051) 2271794-6 Fax No: (051) 2271797

E-Mail: b0008@askaribank.com.pk Tlx: 54683 ASKRI PK

University Road Branch, Faisalabad Branch Code : 0009

Address : University Road Faisalabad

37

City: Faisalabad Region : Central

Manager: 041-9201001,0333-6509781 Manager (Ops) : 041-9201003,0333-

6664285

PABX #: 9201008-11 Fax No: 041-9201006

E-Mail: b0009@askaribank.com.pk Tlx:

Gujranwala Branch, Gujranwala Branch Code : 0012

Address : Opposite General Bus Stand G.T Road Gujranwala

City: Gujranwala Region : Central

Manager: 055-9200857 Manager (Ops) : 055-9200859

PABX #: 055-9200855-56 Fax No: 055-9200858

E-Mail: b0012@askaribank.com.pk Tlx:

Abdali Road Multan, Multan Branch Code : 0013

Address : 64-A, Abdali Road

City: Multan Region : Central

Manager: 061-9201399 Manager (Ops) : 061-9201388

PABX #: 061-9201391-4 Fax No: 061-9201395

E-Mail: b0013@askaribank.com.pk Tlx:

Bahawalpur, Bahawalpur Branch Code : 0025

Address : 1-Noor Mahal Road Bahawalpur

City: Bahawalpur Region : Central

Manager: (062)-9255325 Manager (Ops) : (062)-9255323

PABX #: (062)-9255320-22 Fax No: (062)-9255324

E-Mail: b0025@askaribank.com.pk Tlx:

Introduction of all Departments

Askari bank khanewal has following departments

Account Opening department

38

Cash Department

Account Department

Remittance Department

Clearing Department

Foreign Trade Department

Credit Department

Credit Card Department

ACCOUNT OPENING DEPARTMENT

Borrowing funds from different sources has become a crucial feature of today's

business enterprises. But in the case of a bank, borrowing funds from outside parties

is all the more vital because the entire banking system is based on it. The borrowed

capital of a bank is much greater their own capital. Banks borrowing is mostly in the

form of deposits. These deposits are lent out to different parties. Such deposit

creation is done through opening an account in the Bank.

In Askari bank khanewal Miss Farhana Khan is operating the account opening

department along with performing some auxiliary functions of Check Book Issuing.

ATM CARD

Issuance of ATM card is carried out by same account opening department. ATM

Cards are only issued to Account Holder

ISSUING PROCEDURE

The person, first opens the account within the blank.

Then he fills the ATM application form in which name of account holder,

Fathers name account number and national identity card number are

mentioned.

A copy of C.N.I.C is also attached with the application form.

After completing this process, the application package is sent to head office

39

Askari Head office branch takes a period of 15 working days for preparing and

processing of ATM cards. First, list of card holder is issued and then after 15

days cards are send to Askari bank issuing branch. The card and list are not

sent simultaneously in order to avoid any mishandling.

Askari bank takes Rs. 300/- per year as maintenance charges for a card

CASH DEPARTMENT CASH DEPARTMENT

Cash department of Askari bank works under the operation department. This

department is given the complete responsibility of cash, as result of transaction in

touch local and foreign currencies. It is also responsible for the book keeping of

these transactions and the safe custody of cash.

This department performs the main function.

Cash receipts

Cash payments

Cash ReceiptsCash Receipts

In cash department depositors use deposit slips for depositing the amount

in their accounts. The officer checks if the deposit slip is properly filled up containing

title of account, Account number, date and amount in words and figures. Detail on

both counter file and cash receipt voucher should be the same. The cash details are

written on the back of the deposit slip and are also entered in cash receiving register.

Cash received stamp is affixed on the face of the deposit slip along with the

signature of the cash receiving officer. Cash receiving officer, after twice counted

and matched with the deposit slips will handover cash to the customer.

Cash Payments Cash Payments

First the cheque is presented by the customer or holder to cash

payment officer. He confirms particulars of cheque are properly filled in. Two

signature of the drawer is taken on the back of the cheque. Cheque is handed over

to the officer cash department for inspection where officer checks the date, amount

40

in words and amount in figures, payee’s name, crossing if any, account number,

cheque serial number, any material alterations / endorsements and signature of the

customer. Account is debited and then the officer cancels cheque. It is posted in the

system and posting stamp and number is affixed on it. Cheque is handed over to the

cash payment officer for payment, then cash is paid to the cash detail is written on

the back of the cheque. Cash paid stamp is affixed on the face of the cheque. Entry

is passed in the cash payment register and system.

ACCOUNTS DEPARTMENTAccounts department is a department which deals and checks all the activity of all

the department .It also deals in expression of finance of the bank. Salary payment is

also one function of the bank. These are responsibilities of accounts department.

OTHER ACTIVITIES

I. Preparation of daily bank positions statement

II. Payment of salaries

III. Preparation of the statements

IV. Depreciation calculation

V. Checking Bank’s Daily Activity

REMITTANCES DEPARTMENT

Remittance department provides services to the customer of the bank. The main

function of this department is transfer of funds. The instruments that are handled in

the B & R department are as follows:

I. Demand Draft.

II. Traveler’s Cheque

III. Telegraphic transfer.

IV. Mail transfer.

V. Pay order.

41

VI. OBC.

VII. IBC.

CLEARING DEPARTMENTCLEARING DEPARTMENT

“The process by which cheque exchanged between the collecting and paying bank

and the ensuing financial settlement is called “clearing”. This facility is provided by

the state bank of Pakistan for offsetting of cross obligations between the different

banks. Clearing is of two types.

1) Inward clearing

2) Outward clearing

Inward Clearing

When cheque drafts, etc, of our branch presented to us for clearing by the SBP.

Cheque to be honored by bank.

Outward Clearing

The cheque of other banks, which the account holder deposit in their accounts is,

sends for collection.

CLEARING procedure

Here the local cheques are received that are drawn on Askari bank. All the cheques

are received on one counter along with the paying slips duly filled in properly

containing particulars of cheque and account holder. Counter folio of paying slip is

handed over to the customer by putting stamp for cheque received for collection for

Askari bank on it duly signed by officer. These cheques are scrutinized and cheques

for local clearing are separated from OBC. These are then entered in clearing

register and cheques for collecting are entered in OBC register and handed over the

bills department of collection. Clearing officer checks and verifies title of all the

cheques deposited by the customer to confirm the good title of the cheques.

Cheques are scrutinized properly and paying slips are separated from cheques.

42

Special crossing, endorsement and clearing stamps are affixed on the cheques.

Cheques of each bank are sorted and arranged branch wise. All the cheques are

then entered into the clearing system of bank. Print out of the clearing is taken and

details are attached.

With the cheques of each bank. Details of these banks are then entered into

the clearing schedule containing number of cheques presented and their total

amount against the name of each bank. Then total number of cheques presented to

all banks and their total amount is written on the foot of that schedule, which is tallied

with the clearing register.

Next morning, these cheques are delivered to the respective banks in clearing

house of SBP between 9:00 to 9:30 AM. In the same manner, other banks present

their clearing drawn on Askari bank. Total number of cheques and their amount

delivered to other banks are received from them are written on the clearing house

schedule and handed over to the officer clearing house SBP. Cheques / DD received

in clearing are given to the officer cash department of the branch for their repayment.

After I proper scrutiny of cheques, verification of signatures and confirmation of

balance in the account, officer cash department pays these cheque by canceling and

posting them in the system.

If any cheque is not passed due to insufficient balance or any other reason,

officer cash department returns the same cheque by attaching a cheque return

memo containing reason for return. This cheque is entered into the cheque returned

register and bank charges are deducted according to the schedule of charges.

Second clearing is called at 2:30 PM to check the fate of the Cheques presented to

other banks in the morning. If any cheque is to return, that is delivered to the same

bank in second clearing. In the same manner, if any cheque presented by Askari

bank in first clearing is returned, they receive it and once again give schedule of

clearing figure to the officer-clearing house SBP containing number of cheques and

their amount delivered and received unpaid.

FOREIGN TRADE DEPTARTMENTNature has distributed its wealth un-evenly. Some countries are rich in human

resources other have mineral wealth in abundance and yet other have arable land

43

and favorable climate conditions for agricultural production. This un-even distribution

of resources basically determines the productive efficiencies of different countries.

This is the point where different countries come together to exchange their

competencies and efficiencies. The countries, which lack in any of the resource, start

importing those resources from the country that is having excess of it. In this way the

trade starts between different countries.

CREDIT DEPARTMENT

Credit department is also one of the most important departments of the bank. It is

called the mind of the bank. This department controls the affairs of bank related with

the finances or loans.

The credit department of askari Bank also performs the functions relating to the

credit administration and credit accounts. It performs following functions. Our Credit

and Department aims at providing complete financial solutions for its customers.

Skilled professionals deliver contemporary corporate banking services in a personal

manner. Committed to maintaining stable and long term relationships with our

customers, Askari Commercial Bank combines personalized services with

technological capabilities to deliver sophisticated banking solutions.

Followings are the products and Services offered include:

I. Trade finance

II. Short Term Working Capital Finance

III. Local Currency Syndication Finance (Foreign Currency Syndication can also

be arranged)

IV. Medium Term /Long Term Finance

V. Term Finance Certificates

VI. Offshore Loans

VII. Advisory Role (Balance Sheet Restructuring).

OBJECTIVES OF LENDING.

44

In the modern economics, more than 90% business concern raises their funds from

various financial institutions to meet their multifold transaction. Actually it is very

difficult for the modern businessman to run his business on a huge scale solely. He

has to float his shares to the public or knock the doors of financial institutions, for

example the banks.

CREDIT CARD DEPARTMENT

Miss Muneeb deals this department. He told me that the bank is authorized to issue

the credit card of two companies, which are under bank of America.

I. Master Card

II. Visa Card

There are following types of master card.

I. Silver card

II. Gold card

Plan of internship program

I got a golden chance of internship in Askari bank khanewal branch. It was the first

step of my professional life. Day before I have not got the experience of professional

45

taste. Askari bank khanewal branch is situated at DAHA plaza on Markazi Jamia

Masjid Chowk. The site is situated in very busy area of the city. That is why this

branch has a competitive advantage over the other branches.

Starting and ending dates

I have done my internship of nearly eight weeks.

Followings are the starting and ending dates of my internship tenure.

Starting Date 30-03-2009

Ending Date 27-05-2009

The training schedule was divided weekly. Followings are the departments in

which I got training during the internship.

Followings are the departments where I was given duties.

Account Opening department

Cash Department

Account Department

Remittance Department

Clearing Department

Credit Department

Credit Card Department

Account Opening Department

In my first week in Askari Commercial Bank commercial bank, they assigned me

work in Account Opening Department. Miss Farhana very nicely and I learned lot of

things in this department. He told me different accounts names and their codes.

How to open the account .

46

I. New Computerized national identity card is must for opening of new account.

II. For current account 10,000 and for saving 5,000 are required.

III. What are the necessary requirements of different accounts to be opened.

IV. Other activities are

V. How to fill the deposit Slip if anyone wants to transfer cash in the account or

online transfer

VI. How to fill the different accounts Form

VII. How to fill the voucher for issuing of the Cheque Book for the first time

VIII. How to fill the requisition slip for the second time issuance

IX. How to issue the Cheque Book

X. How to enter it in the register

XI. What are the procedures for the ATM card

Clearing Department

Second was the clearing department.

Responsibilities

There are two types of clearing.

1. Inward clearing

2. Outward clearing

I entered the cheques lodged for inward clearing in clearing register as their cheque

number account holder name cheque amount and bank name amount to be paid.

Secondly I prepared (O/W) clearing for next day. Same as entered cheque number

account holder name amount and Bank name. In this week I also entered cheque

return in cheque return register and put cheque return slip on cheque.

CLEARING PROCESS

State Bank of Pakistan is a main clearing house. In those cities SBP is not

available; SBP has assigned this duty to National Bank Of Pakistan. In clearing

process the local cheques are received that are drawn on askari bank. All the

cheques are received on one counter along with the paying slips duly filled in

47

properly containing particulars of cheque and account holder. Counter folio of

paying slip is handed over to the customer by putting stamp for cheque

received for collection for askari bank on it duly signed by officer. These

cheques are scrutinized and cheques for local clearing are separated from

OBCs. These are then entered in clearing register and cheques for collecting

are entered in OBC register and handed over the bills department of collection.

Clearing officer checks and verifies title of all the cheques deposited by the

customer to confirm the good title of the cheques. Cheques are scrutinized

properly and paying slips are separated from cheques. Special crossing,

endorsement and clearing stamps are affixed on the cheques. Cheques of

each bank are sorted and arranged branch wise. All the cheques are then

entered into the clearing system of bank. Print out of the clearing is taken and

details are attached.

With the cheques of each bank, details of these banks are then entered into

the clearing schedule containing number of cheques presented and their total

amount against the name of each bank. Then total number of cheques

presented to all banks and their total amount is written on the foot of that

schedule, which is tallied with the clearing register.

Next morning, these cheques are delivered to the respective banks in clearing house

of SBP between 10.00 AM. In the same manner, other banks present their clearing

drawn on Askari bank. Total number of cheques and their amount delivered to other

banks are received from them are written on the clearing house schedule and

handed over to the officer clearing house SBP. Cheques / DD received in clearing

are given to the officer cash department of the branch for their repayment. After I

proper scrutiny of cheques, verification of signatures and confirmation of balance in

the account, officer cash department pays these cheque by canceling and posting

them in the system.

If any cheque is not passed due to insufficient balance or any other reason, officer

cash department returns the same cheque by attaching a cheque return memo

containing reason for return. This cheque is entered into the cheque returned

register and bank charges are deducted according to the schedule of charges.

Second clearing is called at 2:00 PM to check the fate of the cheques presented to

other banks in the morning. If any cheque is to return, that is delivered to the same

48

bank in second clearing. In the same manner, if any cheque presented by askari

Bank in first clearing is returned, they receive it and once again give schedule of

clearing figure to the officer-clearing house SBP containing number of cheques and

their amount delivered and received unpaid.

In third week I perform following tasks relating to the banking system

IBC (Inward bills for collection)

OBS (outward Bills for Collection)

REMITTANCES DEPARTMENT

Remittance department provides services to the customer of the bank. The main

function of this department is transfer of funds.

INSTRUMENTS OF BILLS & REMITTANCE DEPARTMENT

The instruments that are handled in the B & R department are as follows:

Demand Draft.

Traveller’s Cheque

Telegraphic transfer.

Mail transfer.

Pay order.

Finance DEPARTMENT

Car finance

Benefits and Features

Quickest processing

No hidden charges

49

Minimum down payment

Complete repayment at any point of time

Balance transfer facility {BTF} for existing as well as new clients from other

Banks

Tenure period ranging from 1 to 5 years.

Financing of all brand new locally assembled vehicles and used cars.

Financing limit ranging b/w Rs. 200,000/- to Rs. 2000,000/- for brand new

cars

Corporate and individual car leasing

Askari bank recently introduced car leasing facility for individuals and corporate

sector has set new dimensions for the product. Now you are provided with the option

of either to get the vehicle leased or financed.

insurance

Renowned and reliable Insurance company EFU are offering the competitive rates of

Insurance. Pay year insurance premium in advance { at the time of down payment }

and remaining in the subsequent equal monthly installment.

how much extra money being paid? {Mark-up}

Askari bank mark-up rates are as follows

Pak Suzuki Cars 15 %

All other local assembled Cars 15.5 %

Repayment

Easily affordable installments on monthly basis in the form of postdated cheques will

set you free of depositing your rental cheques every month.

Security

Hypothecation of vehicle in the name of the askari bank ltd.

YOU CAN ACT AS A CO BORROWER

Acting as a co borrower, will enables your family members {spouse, children- 18

year and above} to avail the financing facility and can get the car registered in their

names as well.

Documents required

Two passport size photographs.

Copy of National ID card.

Bank statement for the last six months.

50

Salary certificate {for salaried individual}.

Business proof {for a business person}.

N.T.N Certificate.

Co borrower’s NIC copy {if the car is to be in the name of the co-borrower}.

Eligibility

Yes you get a car loan form askari bank to purchase a brand new car if you are:

Pakistani National Identity Card holder.

Over 20 years of age (Maximum 60 years in case of salaried and 62 in case of a

The finance system of the askari bank is entirely computerized. Transactions of

huge amounts can be compiled in no time. Such a latest and modern technology

helps managers and other employees to making decision.

For a bank like askari its biggest source of generation of funds is from

deposits in form of current and PLS accounts by the clients of the banks.

Funds deposited by the clients of the banks are allocated to different forms of

financing and investing activities. For example funds are allocated in the form of Auto

Finance leasing and crediting funds to agriculturists.

FINANCIAL ANALYSIS

The importance of financial statements lies in their utility to satisfy the

questions in the mind of different stakeholders. Different classes of people are

interested in the financial statements analysis with a view to assessing the economic

and financial position of any business or industrial concern in terms or profitability,

liquidity or solvency etc. for example, the commercial banks are mainly interested in

short term liquidity and profitability while prospective investors may be interested in

long terms profitability and solvency. Financial statements, among other things,

include balance sheet and income statement. Balance sheet presents assets and

liabilities of the business at a given date. Beside, showing the ability or the business

51

to servic3e the loans on the strength of its financial structure and on the history of its

profitability, it helps in judging the impact of financial and fiscal support and in

evolving secured basis for extending such support. Likewise, apart from showing the

progress and profitability or a business, income statements disclose, how the

business has been conducted and determines factors behind a rise or decline in the

net worth. The purpose of analysis of financial statements is to examine past and

current financial data so that a company’s performance and financial position can be

evaluated and future risk and potentials can be estimated. The analysis can yield

valuable information about trends and relationship, the quality of a company’s

earning, and it financial strengths and weaknesses.

Is the business expanding or contracting?

Is it more profitable than last year or less profitable?

How efficiently is the capital employed in the business being utilized?

Does the business have any financial problem?

And much more

To evaluate financial statements, an analyst must:

Be acquainted with business practices;

Understand the business and accounting terminology; be aware of accounting

conventions and limitations of accounting;

Be acquainted with the tools of analysis of FS

i. Ratio analysis

The ratio analysis and industry analysis tools below are very useful for individuals

to instantly assess a company or industry by making two basic types of

comparisons. First, the analyst can compare a present ratio with past (or

expected) ratios for the organization to determine if there has been an

improvement or deterioration or no change over time. Second, the ratios of one

52

organization may be compared with similar organizations or with industry

averages at the same point in time. This is a type of "benchmarking" so that one

may determine whether the organization is "average" in performance or doing

better or worse than others. For the professional, conducting such in-depth

analyses is critical, allowing an analyst to make an informed business or

investment decision.

Current Ratio = Current Assets / Current Liabilities

2008 2007 2006

19,984,449 / 17,774,976 16,853,109 / 20,180,576 22,212,232 / 16,803,164

1.12 0.83 1.32

Working Capital = Current Assets – Current Liabilities.

2008 2007 2006

19,984,449 - 17,774,976 16,853,109-

20,180,576

22,212,232-

16,803,164

2,209,473 -3,327,467 5,409,068

Times Interest Earned = Earning Before Tax / Interest Exp

2008 2007 2006

461,382 / 5,915,615 2,299,785 / 4,801,587 3,346,855 / 3,283,494

0.077993919 0.478963518 0.108186465

Debt Ratio = total Debt / Total Asset

2008 2007 2006

53

18,186,248

/

206,191,138

20,550,825

/

182,171,885

17,962,587

/

166,033,588

0.08820092 0.11281008 3.320828468

Debt Equity Ratio = Total Debt / Total Equity

2008 2007 2006

18,186,248 / 12,034,895 20,550,825 /12,099,645 17,962,587 / 7,595,145

1.51 1.69 2.36

Return on Assets= Operating Income / Average Total Assets

2008 2007 2006

2,531,035/ 206,191,138 8,370,382 / 182,171,885 8,356,026 / 166,033,588

0.012275188 0.045947716 0.050327323

Return on Investment = Net Income / Total Assets

2008 2007 2006

2,531,035/206,191,138

4,480,991 / 182,171,885 3,867,571 / 166,033,588

0.012275188 0.024597599 0.023293907

54

Working

2008 2007Current Ratio 16,029,635 1.124302446 13,356,055 0.83511536

3,954,814 3,497,05419,984,449 16,853,109

2,584,828 2,627,05115,190,148 17,553,52517,774,976 20,180,576

Working Capital 2,209,473 -3,327,467Time Interest

Earned461,382 0.077993919 2,299,785 0.478963518

5,915,615 4,801,587Debt Ratio 15,190,148 0.08820092 17,553,525 0.11281008

2,996,100 2,997,30018,186,248 20,550,825

206,191,138 182,171,885Debt Equity Ratio 18,186,248 1.511126437 20,550,825 1.69846512

12,034,895 12,099,645Return on Assets 2,531,035 0.012275188 8,370,382 0.045947716

206,191,138 182,171,885Return on

Investment2,531,035 0.012275188 4,480,991 0.024597599

206,191,138 182,171,885

Account Rec 365 9.22926E-05 365 2.16577E-0516,029,635 16,853,10919,984,449 3,954,814

Accounts Pay 365 1.41209E-04 365 1.38939E-042,584,828 2,627,051

Earning per Share 2,531,035 1.012414 4,480,991 0.9410681412,500,000 4,761,601

Price/Earning Ratio 98.06 96.85760963 95 100.54255321.01 0.94

1.54

ii. Horizontal & vertical analysis of the organization for the last

three years

55

a. Organization analysis in comparison with its industry (or with

its competitors)

b. Future prospects of the organization.

SWOT analysis of organization in the business sector

SWOT analysis means to analyze the threats and opportunities that are part of

external environment and strengths and weaknesses of the organization, which are

part of the internal the environment. Based on this environmental analysis company

formulates the strategies to find out the target customer’s designs objectives and

mission statements to fulfill the needs of the target customers and strategies to

respond to the competitive environment.

Strengths

Customer relationship management

Askari bank has a customer oriented CRM strategy. Continues efforts are being

made by the bank to improve customer services and making need based strategies.

Askari bank is more committed to facilitate its customers with international standards

of banking sectors to help customers more strength. The strong culture of customers

services and more satisfaction indicates the its distinctive competencies.

Vast Network

It is another strength of askari bank. Askari bank has extensive and integrated global

network of its branches to facilitate its kind customers. Its upgraded global

infrastructure provides unique services system with higher and efficient to the

customers.

Internation Branches

56

The international branches of askri bank n the world make it unique and outstanding

in the banking sectors e.g, UK Europe, Middle East etc.

1. ASKARI BANK is one of the leading institutions of Pakistan with high share of

customer.

2. ASKARI BANK one of the largest financial institutions of Pakistan with high share

of customer.

3. ASKARI BANK cash provision as percentage of non performing loans equal to

60%.

4. Highest share price Rs. 418 in month of January , 2009 in Pakistan banking

history.

5. There is a facility of transfer of funds across Pakistan through ATM and payment

of utility bills through ATM makes askari bank prominent.

Weaknesses

Marketing Promotions

Askari bank is not performing it advertising and sales promotions in the marketplace.

It is not also promoting ATM services.

Cash Withdrawal Limit

Askari bank has the limitation on the cash withdrawal of money from ATM.

Furniture and Fixture

The general out look and interior layout of branches are not as required

according to modern banking.

ASKARI BANK bearing up large burden in running those branches, which

are not producing any income but producing on adding expenditure.

ASKARI BANK is relying on its traditional sources of income it has not

taken benefit from innovation in banking like introducing retail banking or

consumer banking and using any type of scheme to generate more

deposits and producing more advances.

ASKARI BANK has only 160 on branches and only 75 branches working

on Symbol (Real online system). While from remaining branches data

gathering is time consuming, and not fool proof. Quantum of settlement

within different branches is pending because of this updating daily record

is becoming very difficult.

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In ASKARI BANK, most of the time merit not has importance in hiring of employees.

Such practices are black spot on the face of bank and resulted big losses and

fraudulent acts by ASKARI BANK own employees

Opportunities

Reorganizing efforts going on in the ASKARI BANK has

open many opportunities for ASKARI BANK to grow. ASKARI BANK current

management has boarder its vision. They have taken steps to improve customer

services, streamline internal procedure and creating a delectating climate for

technology initiative.

Technological Advancement

An introduction of technological advancement in its network branches create an

edge on other banks. This advantage draws the attention of potential customers.

Askari bank has obtained the software based in Linux of amount Rs.2 Billion, Which

will be launched very soon across its branches.

Facility for Illiterate people

Illiterate people which the askari banks customer don’t feel loneliness in the banks.

Because its employees provides guidance in urdu or any other local language. It

creates an edge over the customers.

Threats Economic Environment

Economic environment is a major threat to askari bank. For example in 2008

recession shakes every sector of economy , banking sector was one of them.

GDP growth and poverty alleviation in a different economic environment with

continued international sanctions.

Political and Legal environment

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Law and order situation has a direct impact on how frequently or how many

people use banking lockers. Political instability in the country produces threats to

bank and investor seeking profitable transactions in the banks.

Major threats ASKARI BANK facing is from its competitor especially from

nationalized commercial bank. In which NBP is on the top of the list, The

Bank gets the all big accounts of Government.

Retail banking and consumer banking resulting strong giving completion to

the ASKARI Commercial Bank. So it is very important for the bank.

Recently banks and other financial institutions have introduced

innovative schemes to attract deposits

Now banks are using technology which covers the distance no matter how

far away any one, through a satellite based, on-line real-time banking

system and by offering telephone banking, electronic funds transfer, E-

Banking and other modern facilities.

CONCLUSION

Organizations exist when two or more people work towards achieving common

goals. An organization can never be better than the people it hires. Hence we have

to get the best to be the best because the performance of the employees reflects the

company’s image and standing in the market. Out of the three M’s i.e. Man, Money &

Machine, probably the human dimension is of the utmost importance. Hiring

employees is not the sole objective rather the primary goal

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is to devise a tool that can help the organization attract, maintain, retain and motivate

them enough to give their best to the organization. Training and development is

therefore the first step towards success. Better the quality of the employees better

the performance of the company. An organization’s ability to meet the training and

development challenges provides an opportunity to make significant contribution to

the company. With better quality people executing the company’s operations the HR

department can create a competitive advantage for the company. Askari Bank views

specialization and service excellence as the cornerstone of its strategy. The people

at bank realize that innovation; creativity, reliability, customized, services and their

execution are they key ingredients for their future growth.

RECOMMENDATIONS

This is the fact that in this universe nothing is perfect. In every field of life there are

some pluses and minuses. But the best institutions are those, which learn from the

changing environment and competition. So it is necessary for them to keep them

update with the changing environment.

After analyzing the Training and Development practice following

recommendations is made;

For time being to share the burden of Training, more instructors should be

hired for the Training Wing.

Like Askari bank, wherever the Training Department is unable to provide

focused training for certain groups of staff, reputable external trainers are

invited to fill the gap, Askari bank should also outsource trainers in such

cases.

Marketing department is very active but the feedback or the follow up of the

customers should be improved.

If possible, bank should arrange externships for some employees in other

reputable banks, to bring up new ideas and more accuracy in Askari bank.

As every thing is computerized in Askari bank, the persons should be properly

trained in the computer systems.

The ATM service should be provided 24 hours. Because customers feel upset

when most of the times the machine is out of order.

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Audit should be held internally, rather there should be an audit department in

the branches to make audit on daily basis. This can become so, helpful as a

different banks are having this department of their own.

In 3600Feedback method, there are chances of errors due biasness and halo-

factor. To avoid this error, ‘Rater Error Training’ and ‘Rater Accuracy Training’

should be given to the employees.

If possible, bank should arrange externships for some employees in other

reputable banks, to bring up new ideas and more accuracy in Askari bank.

Reference and Sourcing

I used following references and sources in the compilation of the report. Askari Bank Ltd. Khanewal

Official Web site of Askari bank

www.wikipedia.com

www.kse.com.pk

www.pakbiz.com

www.dawn.com.pk

Weekly Business week journal

Official Financial Statements of askari bank 2006-2007-2008

Corporate Reports of Askari Bank

Accounting for Decision Making by Meigs & Meigs

VU Hand Outs (FIN621, FIN622, FIN630, MGT201)

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