Internship Report of Askari Bank

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4 Dedication This piece of work is dedicated to my beloved parent and teachers who always helped me out in times of woe and distress and taught me to follow the path of truth, justice, honesty and to all those who love and care about me Comsats Institute of Information Technology

Transcript of Internship Report of Askari Bank

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Dedication

This piece of work is dedicated to my beloved parent and teachers

who always helped me out in times of woe and distress

and taught me to follow the path of truth, justice, honesty

and to all those who love and care about me

Comsats Institute of Information Technology

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ACKNOWLEDGEMENT

A milestone of this nature could never have been possible to achieve

without the support of a galaxy of some truly loving persons. The events

and the process leading to the accomplishment of my objective have given

me a realization in depth of immense blessing of Allah.

Many people have contributed in the successful completion of this

internship report. My great appreciation goes to the whole team of Askari

Bank Ltd DHA II Lahore. They provided me with every kind of help in

the completion of this report. Let me also thank my teachers of Comsats

Institute of Information Technology (CIIT) for the knowledge they

gave me and their guidance in every field. I would also like to thank

Professor Samar Kamal Fazli for his guidance. Last but not the least I

would like to thank my parents who provided me love, support, patience &

good knowledge.

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Executive Summary

This internship report consists of profile of the banking sector (industry),

its origin, the functioning, how the banks are classified on the based on

function, ownership etc and the trends being followed in the industry.

Besides the above mentioned this report is focused on Askari Bank and to

be more precise it discusses the inner details of the bank situated in Lahore

DHA II Branch. Askari Bank origin and its setup in Pakistan are also

discussed in the report.

Askari Bank came to Pakistan and gave banking sector a new horizon,

today Askari Bank has set firm foot in the industry.

The report further guides through the department and working of the

general banking. The activities taking place in the bank, the various

products of banking are discussed in the report. The report is a very good

description of what Askari Bank and its significance is.

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Introduction

The name bank is derived from a Latin word bancho meaning desk/bench,

used during the renaissance by the Florentines bankers, who used to make

transactions above a desk covered with a green table cloth.

The first modern bank was founded in Italy in Genoa in 1406; its name

was Banco di San Giorgio (Bank of St. George).

The word bank can be traced down to the ancient Roman Empire, when

money lenders would set up their stalls in the middle of an enclosed

courtyard called macella on a long beach called bancu

A banker or bank is a financial institution that acts as a payment agent

for customers, and borrows and lends money. Banks act as payment agents

by conducting checking or current accounts for customers, paying cheques

drawn by customers on the bank, and collecting cheques deposited to

customers' current accounts.

Banks borrow money by accepting funds deposited on current account,

accepting term deposits and by issuing debt securities such as banknotes

and bonds. Banks lend money by making advances to customers on

current account, by making installment loans, and by investing in

marketable debt securities and other forms of lending.

Banking Companies Ordinance of 1962 defines banking as “banking

means accepting, for the purpose of lending or investment, of deposits of

money from public; repayable on demand or otherwise, and withdraw able

by cheques, drafts, to order or otherwise”.

Industrial profile

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Banking is one of the most sensitive businesses all over the world and play

important role in the economy of a country and Pakistan is no exemption

and in a contemporary world of money and economy. The banking system

of any economy is an undeniable determinant of its growth as it provides

an efficient channel that routes funds from surplus sectors in the  economy

towards deficit ones. Banks are custodian to the assets of the general

masses.

It influences and facilitates many different but integrated economic

activities like resources mobilization, poverty elimination, production and

distribution of public finance. It is purchase of car or building of a home

bank is always there to serve public better. Banks play positive and vital

role in the overall economic development of the country.

Pakistan has a well-developed banking system, which consists of a wide

variety of institutions ranging from a central bank to commercial banks

and to specialized agencies to cater for special requirements of specific

sectors. The country started without any worthwhile banking network in

1947 but witnessed phenomenal growth in the first two decades.

A major achievement of the reforms process has been the transformation

of a primarily state owned and weak banking sector into a healthier,

market based system, owned by the private sector. This has been

facilitated by the restructuring of major banks, ongoing consolidation of

the sector through mergers and acquisitions, strengthening of the

regulatory regime and improvements in transparency, corporate

governance and credit culture.

Classification of Banks

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The commercial banks are classified into various types on the basis of

their spheres of activities, ownership, domicile etc. The main types of

banks are: -

Classification on the basis of functions

Classification on the basis of ownership

Classification on the basis of functions

Central Bank

Commercial Banks

Exchange Banks

Saving Banks

Agricultural Banks

Industrial Banks

Classification on the basis of ownership

Public sector banks

Private sector banks

Cooperative banks

Classification on the basis of domicile

Domestic Banks

Foreign Banks

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Banks in Pakistan

  Government Owned Banks:

First Women Bank Limited

Industrial Development Bank of Pakistan

Khushhali Bank Limited

National Bank of Pakistan

SME Bank Limited

The Bank of Khyber

The Bank of Punjab

The Punjab Provincial Co-operative Bank Limited

Zarai Taraqiati Bank Limited

Privatized Banks:

Allied Bank Limited

Habib Bank Limited

MCB Bank Limited

United Bank Limited

   Development Financial Institutions:

House Building Finance Corporation

National Investment Trust Limited

Pak Kuwait Investment Company (Pvt.) Limited

Pak Libya Holding Company (Pvt.) Limited

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Pak Oman Investment Company Limited

Saudi Pak Industrial & Agricultural Investment Company (Pvt.) Limited

Small and Medium Enterprise (PBA subgroup under

formation):

First Microfinance Bank Limited

Pak Oman Microfinance Bank Limited

   Private Banks:

Royal bank of Scotland (RBS)

Arif Habib Bank Limited

Askari Bank Limited

Atlas Bank Limited

Bank Alfalah Limited

Bank Al Habib Limited

BankIslami Pakistan Limited

Crescent Commercial Bank Limited

Dawood Islamic Bank Limited

Dubai Islamic Bank Pakistan Limited

Emirates Global Islamic Bank Limited

Faysal Bank Limited

Habib Metropolitan Bank Limited (Merged with Habib Bank AG Zurich

in October 2006)

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JS Bank Limited

NIB Bank Limited

Meezan Bank Limited

Mybank Limited

KASB Bank Limited

SILK Bank

Soneri Bank Limited

Standard Chartered Bank (Pakistan) Limited (Re-constituted in December

2006)

Foreign Banks:

Citibank N.A., Pakistan

Deutsche Bank AG, Pakistan

Hong Kong & Shanghai Banking Corporation Limited, Pakistan

Oman International Bank S.O.A.G., Pakistan

Barclays

Non-Member Banks & Development Financial Institutions:

Bank of Tokyo Mitsubishi UFJ Limited, Pakistan

Network Micro Finance Bank Limited

Pak Brunei investment Company Limited

Pak Iran Joint Investment Company

Rozgar Micro Finance Bank

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Tameer Micro Finance Bank Limited

Till the end of 1980s Pakistan banking sector was heavily regulated in

most of the areas of activities. The regulated and nationalized banking

system created an industry structure where competition was unknown to

management of the banks, Forced by the structural reforms agenda and the

desire to strengthen its financial system. Pakistan moved towards

liberalization and financial sector deregulation in 1990. It started with the

privatization of state owned commercial banks and induction of new ones

from private sector established a market base banking system. The

government seems to be conscious about improving the efficiency of

banking sector in Pakistan. Few considerable efforts have been made in

this regard which include enhanced capital adequacy, strengthening asset

quality, improving management and increasing earnings. Furthermore

interest rates deregulation, abolition of credit controls and further

developments in capital market have also led towards a more competitive

banking environment.

The deregulated and increasingly competitive environment poses a

challenge in terms of efficiency as the most efficient banks would survive

while the less efficient will be driven out of the market. This phenomenon

of deregulation started from when banks privatized to increase efficiency

and effectiveness. The government of Pakistan permitted small private

sectors banks to operate, which indulged in doubtful policies to promote

business. The public sector banking which constituted the backbone, thus

continued to suffer because of their approach, size and carried over

liabilities.

In the mean while western banks started entering into the business. They

with the support of ruling elite, concentrated on the big business, leaving

the routine business to local banks. This reduced the profitability of the

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local banks. Banking industry has grown and still growing as numbers of

banks are increasing and other new entrants are coming to Pakistan.

Pakistan Banks’ Association

Pakistan Banks’ Association (PBA) represents the Pakistan Banking

Industry. Established in 1953, its main objective is to coordinate the

efforts of the banking industry, and to share a common vision of progress

and development with its members.

PBA Membership is institutionalized and is available only to the Banks

operating in Pakistan. Currently there are 47 members, categorized into 6

groups (one of these groups is under formation). Its governing body is an

Executive Committee (EC) comprising of 14 members, represented by the

Chief Executives of the respective member institutions. Over the years the

role of PBA has broadened considerably. It is now referred to by the State

Bank of Pakistan in formulation of regulations for the banking industry,

and has been entrusted with the function of regulating and monitoring

certain services provided to the banking industry by outside service

providers. These service providers include ‘Professional Value’s’, who are

evaluators allowed to appraise the values of assets collateralized to banks,

and Security Agencies offering security services to the Banking Industry.

Trends of the Banking Industry

Pakistani Banking Industry these days has indulged itself in the following

activities to fulfill the needs of the society.

Consumer Financing

1. House financing

2. Auto financing

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Micro credit financing

Islamic Banking

Consumer financing:

Most of the commercial banks have ventured into consumer financing.

Consumer financing as the name indicates is simply financing for their

consumers that may include financing for household products. Consumer

financing also involves two major categories of products being financed

today i.e. House financing & Auto financing.

House financing is a part of consumer financing as it is also financing of

a product which is of a vital use to the consumers. It is basically providing

funds to the consumers especially for the purpose of buying or leasing a

house. In some banks it is also known as house loans.

Auto financing is another important concept undertaken by banking these

days and is without a doubt, the most profitable department as well for a

bank these days. Auto financing is also as the name indicates financing for

Automobiles

In the above mentioned trends there is a very visible benefit for the

customer that is easy purchasing of homes and automobiles. Banks pay the

amount required for the respective item of purchase and them the

customer pays back the bank in installment or as per his/her feasibility, the

earning of the bank in this procedure is what it get in return of doing the

favor to the customers, the bank charges a certain amount of interest on

the amount it gives to the customer for purchasing of the house or the car

and that is where they make profits.

Micro Credit financing:

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Micro financing focuses on the people with personal commitment to

improve their lot, do honest labor and have a genuine need for small loans.

Large loans imply few beneficiaries and similarly if big loans default their

losses can be equally hazardous. Converse is true for Micro Credit Loans.

Due to the tough economic conditions and failure of giant industrial

enterprise all over the world, people have started shifting from big loans to

small loans and similarly from Industrial financing to consumer financing.

Islamic Banking:

Islamic banking is a phenomenon which is continuously gaining

popularity in the country, a-lot of effort is being put in to make Islamic

banking penetrate through the conventional banking. The SBP has

initiated the process the process of converting conventional banks into

Islamic banks while the government has initiated a parallel banking

strategy of promoting Islamic banking alongside the conventional

banking. Islamic banking is not much different from the conventional

banking in terms of the processes being carried out but it deals with all in

a more Islamic way for e.g. they don’t charge interest in Islamic banking,

they only take profits which is in fixed amounts of money not interest rate

over the loan disbursed.

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Profile of the company (ACBL)

Askari Bank Limited (the Bank) was incorporated in Pakistan on October

9, 1991 as a public limited company and is listed on the Karachi, Lahore

and Islamabad Stock Exchanges. The registered office of the Bank is

situated at AWT Plaza, the Mall Rawalpindi. The Bank obtained its

business commencement certificate on February 26, 1992 and started

operations from April 1, 1992. Army Welfare Trust directly and indirectly

holds a significant portion of the Bank's share capital at the period end.

The Bank

has 227 branches (December 31, 2009: 226 branches); 226 in Pakistan and

Azad Jammu and Kashmir, including 31 Islamic banking branches, 22

sub-branches and a Wholesale Bank Branch in the Kingdom of Bahrain.

The Bank is a scheduled commercial bank and is principally engaged in

the business of banking as defined in the Banking Companies Ordinance,

1962.

Mission

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

presence, delivering quality service through innovative technology and

effective human resource management in a modern and progressive

organizational culture of meritocracy, maintaining high ethical and

professional standards, while providing enhanced value to all our stake-

holders, and contributing to society.

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Branches

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Board of directors

Lt. Gen. Nadeem Taj Chairman

Lt. Gen (R) Imtiaz Hussain Chairman Executive Committee

Maj Gen (R) Saeed Ahmed Khan Director

Mr. Zafar Alam Khan Sumbal Director

Dr. Bashir Ahmad Khan Director

Mr. Shahid Mahmud Director

Mr. Muhammad Riyazul Haque Director

Mr. Ali Noormahomed Rattansey Director

Mr. Muhammad Rafiquddin Mehkari President& Chief Executive    

Mr. M. A. Ghazali Marghoob Company Secretary

Bank’s departmental functions

Finance department

Marketing department

Customer services department

IT department

Operations department

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Finance Department

Finance is the major driving force behind an organization, whatever the

business is, it may miss out any other department which will have an

effect but if it misses out finance the business can simply not run. The

basic thought before doing any business is to earn profits, and it is not

possible with the finance personal. If the firm doesn’t knows it expenses it

won’t know its surplus incomes as well. Good finance is the key to a

successful business.

The role of the support functions in the business management is as of any

front line business function as they primarily deal in managing the internal

dynamics of the organization to assist in accomplishment of business

objective, implementation of strategies and to enforce a sound control

environment of harmonizing profitability with governance goals.

It is one of the support departments of all the division of the bank. This

department is responsible for the following functions.

Preparation of financial budget for the annual operation of the bank.

Recording of transactions pertaining to the annually operations of the

bank.

Calculating and comparing the variances in the actual results with the

budgeted amounts

Reconciliation of various accounting records with the records for the

external entities.

Settlement of dues of the acquirer banks and other parties.

Scope of Activities of the department:

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The finance department of the bank is responsible for the budgeting,

accounting and reporting of all the operations of the bank.

Reporting line:

The finance department of the bank directly reports to the Group head

consumer finance and all the reports sent to the head office and other

authorities are under approval and authority of the group head Consumer

finance.

The finance department is of keen interest to the operations department. It

further includes different departments, each having a very vital role to

play.

Payables

Reconciliation

IP (Item processing)

Settlement

B.T.F

Balance transfer facility. Askari Bank offers a balance transfer facility to

all its members -an easy and convenient way to transfer and pay the

existing balances of their accounts, issued by other banks in Pakistan,

through their Banks account.

Marketing Department

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The marketing department handles the activities regarding the promotional

activities that are held time to time and making agreements with different

retailers for getting factory prices of their products in order to make their

products more attractive to the customers by cutting down prices on

buying from their credit cards, like special discount on purchase from

credit card.

Customer Services

Customer service is a very self explanatory term. Customer services

involve services like; after sale service and satisfying customer needs in

case they are facing any problems in the service.

They also handle the applications declined by verification department, by

reviewing them and sending letters to re apply for clients if they are

legible.

Operations Department

Survival and success of any organization requires its operations to be

tightly monitored and performed well. Askari Bank believes in handling

its operations in an efficient way. A department has been specially

designed to carry the operations held. The operations department has a

hawk’s eye over all the departments working for the bank but certain

departments are made a part of the operations department because of their

well known importance. The departments under the Operations

department are;

Embossing Department

Mailing Department

Recovery Department

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Collection Department

Authorization

Designing Department

Human Resource & Greeting Department

IT department.

- Embossing Department;

They receive data of clients; their work function is to print the account

numbers, it is very easy to say but this department has its own

significance.

- Mailing Department;

Mailing department has a very vital role in the structure their basic tasks

are listed below

Receive Mails; mail receiving is one of the jobs of this department this is

pretty tedious task, receiving mails for the entire bank, the mail include;

billing receipts, new applications, billing applications etc

Bills Mailing; The payment of and for the bank also follow the path which

pass the mailing department

Besides the above mentioned tasks though they are pretty tedious them

self, the mailing department is also responsible for the inventory

caretaking for the bank.

- Collection Department;

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These are the people who are always being “CURSED” by the customers

because to pay an amount from your very own pocket is not an easy thing.

Plastic money is just like honey when we use it. It gives us a yummy taste

because we are not using our own money, but when we receive our bills

we feel like having chilly taste with lots of black pepper of this yummy

honey. So people in collection department try to give customers black

pepper in a very pleasant way. They make calls, calls & calls (bundle of

calls) to late payment holders up till 3 months of bill issuance. They make

people afraid to collect due payment.

- Authorization;

This department monitors all transactions being made on the accounts

through the system. This department also looks for any fraudulent

activities.

- HR & Greeting Department;

Human resource department has a check on the entire system and make

sure that the employees are performing their best. Some activities

performed by HR department are:

Hiring new employees.

Contract Renewals.

Performance Appraisals

Increment in salaries

Bonuses Decisions

Leaves

Greeting employees are there to greet walk in customers and guide them.

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IT Department

IT is one of the most important sectors these days, no organization is

complete without the aid from IT department similar is the case with

Askari Bank, IT department has the most important role that is joining the

departments with each other, every department is linked with the other

department by means of networking of Computer and an intercom with

about 300 telephone set is laid in the center. The IT department has a lot

more to contribute in the center for instance everything nowadays is done

on computers and there are different software’s for different business

activities, the IT department keeps everything ready for every department.

This department though does not have a visible role but can without a

doubt be referred to as the back bone of the company.

GENERAL BANKING

ACCOUNT OPENING PROCEDURE:

Opening of bank account is the primary step to a relationship between the

bank and the customer. As the opening of a bank account by a person

makes him a customer of the bank, the account opening process must not

be considered just a formality. Knowing the customer should be the

objective of the banker and customer due diligence must be done prior to

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establishment of the relationship. The basic documents to be obtained at

the time of opening of account are:

Account opening form (Annexure ‘I’)

National identity card or Passport

Specimen signature card (Annexure ‘II’)

Additional documents depending on the constitution of the account

Know your customer (KYC):

While opening accounts of customers, all reasonable efforts

must make to determine the true identity of the customer and the sources

& utilizations of funds. To have a uniform procedure for customer due

diligence, a Know Your Customer (KYC) Form (Annexure ‘III’) has been

introduced which is to be completed by the account opening officer/

operations manager/ branch manager. During the course of meetings with

the customer to complete the account opening formalities, they should be

asked about the type of the transactions for which the bank account would

be used and any information gathered must be recorded on the KYC Form.

Any further information felt necessary and obtained during conversation

with the customer should be recorded on the KYC Form and placed on

record.

Informal session with the customer:

An informal session with the customer should be arranged

to assess and ascertain his/her credibility. While having a face to face

interactive session with the customer, following points must be borne in

mind, so that at the time of filling the KYC form, comments column

would contain all the required and necessary information.

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For a salaried person:

Name of employer

Designation of the customer

Approximate salary

Area of residence

Residence status whether owned, rented etc.

Expected inflow/ transfer of funds in the account

Overall background

Source of funds

Accounts with other banks

Any other information

For self-employed:

Name of the concern

Constitution of the concern

Field of operation

Nature of transactions

Expected inflow/ transfer of funds in the account

Source of funds

Legitimacy of the business

Accounts with details of facilities with other banks

Area of residence

Residence status whether owned, rented etc.

Overall background

Any other information

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For an organization:

Check all necessary documentation as mentioned in the manual has been

obtained and all necessary formalities of account opening have been

completed.

Obtain brief profile of the partners, directors etc. to ascertain their

credibility.

Take adequate measures to obtain all relevant information i.e. independent

verification of the partners, directors etc. and the organization.

Obtain a report from the customer’s other/ previous bankers

Clearly understand the pattern of transactions to be conducted by the

organization.

Make possible efforts to gather information relating to the customer’s

source of wealth to ensure that business is transacted only with customers

of repute involved in legitimate business activities.

Account opening officer/ manager operations/ branch manager should

personally meet the key individuals of the organization and conduct their

due diligence.

Account Opening Form:

A senior officer should be designated by the branch manager to

handle the account opening function. Prior to opening of the account, the

account opening form and all the related documents must be scrutinized

and approved by the branch manager personally. It must be ensured that

all columns of the account opening form are correctly & properly filled

and the customer has read & understood Rules & Regulations for conduct

of accounts that are printed on the reverse of the account opening form.

No column of the form should be left blank and columns not applicable to

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a particular customer should be marked so to guard against unauthorized

additions. Following guidelines must be followed in this regard:

Title of account must be in block letters and it should corroborate the

name on the National Identity Card/Passport.

The type of account i.e. Current, PLS or Term must be clearly mentioned.

The status of the account holder i.e. Resident or Non-Resident must be

specifically marked.

The currency in which the account is to be opened must be specified.

Full name of the customer along with the father’s/ husband’s name, NIC

number/ Passport number, place of birth, NTN, occupation & occupational

details including occupational address (the occupation must be clearly and

specifically defined, vague terms such as business, trading, service etc. are

insufficient, the extract nature of the occupation or the place of

employment must be ascertained and recorded) personal communication

details & details of Next of Kin, as applicable must be recorded.

Instructions for deductions of Zakat must also be noted on the AOF.

Any other instructions such as holding of mail etc. must also be mentioned

on the AOF.

Terms of operation of the account whether singly, jointly, by either or

survivor or jointly by any of the authorized signatories of the account must

also be noted.

Introduction of an account

To ascertain the credibility of the customer, the account must be

introduced by another account holder.

Preference should be given to introduction by an existing account holder

of the branch. Emphasis is being made for introduction by an existing

account holder because the existing account holder’s integrity has already

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been assessed by the branch at the time of opening of the account of the

introducer. Such introduction must be accepted.

In case where an existing account holder of the bank is introducing the

account, the account opening form must be sent to the concerned branch

where the introducer is maintaining his account for verification of the

introduction and the account of the customer should be opened only upon

receipt of the verified Account Opening Form. Alternatively, the

signatures of the introducer can also be verified through On-line Banking

System.

Where the introducer is not an account holder of our bank, the

introduction should only be accepted and account opened after having the

signature of the introducer verified from the bank where the account is

being maintained. The signature of the verifying authority must be

authenticated from the Authorized Signatures Book of the bank.

Introduction from employees may also be accepted but should be

discouraged. In cases where a staff member introduces the account, it

should only be accepted when the employee personally knows the

customer’s background/ activities.

Where the customer is bringing in substantial deposits and a customer

maintaining a nominal balance introduces the account, discreet market

investigation must be done for such a customer.

Only verification of signatures of the introducer is not sufficient to

establish a new account relationship and the account must only be opened

if the branch is satisfied with the antecedents of the customer.

Regulation:

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State Bank of Pakistan Regulation M-1 of Prudential Regulations for

Corporate/ Commercial Banking relates to Account Opening and thus it

has been made an integral part of the this Manual as Annexure ‘IV’.

Status of customer

RESIDENT:

A resident would mean any person residing in Pakistan and

holding a Pakistani Nationality or an expatriate having a valid permit for

residing in Pakistan or an employee of a consulate of a Foreign Country or

firms which are incorporated abroad but operate in Pakistan or a Judicial

Entity licensed to operate in Pakistan.

NON-RESIDENT:

Individual firms and companies resident in countries outside

Pakistan are designated as Non-Resident. All Pakistani Nationals and

persons domiciled in Pakistan except persons holding office in the service

of Pakistan who go out of Pakistan for any purpose viz., employment,

study, business, pleasure etc. are treated as Non-Resident for so long as

they remain outside Pakistan and all such accounts are regarded as

accounts of countries in which the account holder is residing. Non-

Resident accounts can be categorized as follows:

Pakistani nationals permanently residing and domiciled abroad

Pakistani nationals who are abroad for short visits

Foreign nationals residing abroad

Foreign nationals ordinarily residing in Pakistan but gone abroad for short

visits.

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Where an account of a resident is held jointly with a Non-Resident, it shall

be treated as a Non-Resident Account.

TYPES OF ACCOUNTS

1) Current Account

It is an account in which profit is paid on the balances. Any

individual, firm, charitable institution, corporation, association etc, and

residents as well as non-residents can open and operate a current account.

2) Profit and Loss Sharing Account

It is an account in which profit is paid on the balances.

Depending on the nature of the account the profit is calculated and

credited to the account monthly, quarterly or bi-annually. Temporary

Running Finance Facility is not extended to PLS Accounts.

Profit Calculation and Payment

Depending on the nature of the account

i.e. whether the profit is to be calculated on minimum monthly balance,

average monthly balance or on daily product basis, the same must be

defined in the system. The indicative rates of profit are to be fed into the

system which would then automatically accrue the profit and credit the

account on monthly, quarterly or half-yearly basis as the case may be.

Deduction of withholding tax on profit

The system automatically calculates the

amount to be deducted as withholding tax currently 10% for residents and

30% for non-residents on profit paid and credits the respective tax payable

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head for onward payment to the tax authorities. The withholding tax so

deducted must be deposited in the Govt treasury within seven days of

deduction. Withholding tax on profit shall not be deducted if the customer

submits a valid tax exemption certificate issued by the Income tax

Commissioner.

Deduction of Zakat

Zakat would be deducted @ 2.5% on the credit

balance over and above the declared NISAB for the year. PLS account

holders would be required to furnish a Zakat Exemption Certificate on the

prescribed format to be exempted from this compulsory deduction. The

exemption certificate must be executed and submitted to the branch, one

month prior to the month of Ramadan. Signatures of the customers must

be verified on the Zakat Exemption Form. A check has to be applied in the

system in case of Zakat Exemption failing which the system would

automatically debit the same from the account on the 1st day of Ramadan

each year. The NISAB and procedure for deposit of Zakat is circulated

each year before the 1st day of Ramadan by the systems and operations

department, Head Office.

3) Profit and Loss Sharing Term Deposit Receipt

PLS TDR is a time deposit for a fixed tenure in the shape of

a deposit receipt payable on demand. The rate of return applicable on PLS

TDR is based on the indicative rates of profit declared by the systems and

operations department, Head Office. Full account opening formalities

including KYC procedure should be followed for issuance of PLS TDR.

The customer however should be encouraged to open an account. As the

PLS TDR is in the shape of a deposit receipt, no cheque book is issued. In

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case of deposit through cash, voucher would be prepared by the concerned

officer and handed over to the customer for deposit of cash with the teller.

Silent features:

It is not negotiable

It is not transferable

Rates applicable on the original Term Deposit would be applied on the

whole completed period in case of late encashment

The encashment could be made either in cash over the counter or credited

to an account in case an account is maintained with the branch issuing the

PLS TDR

Withholding tax at 10% for residents and 30% for non-residents would be

deducted from the profit amount

In case where the instructions are for roll over on maturity, same would be

rolled over and converted into a new PLS TDR

Preparation of a PLS TDR:

Each branch is supplied with a stock of pre-numbered

printed blocks of PLS TDR. The same being security stationery must be

kept under lock and key in dual custody and the running block, which is in

use and in possession of the concerned officer, must be kept in the safe at

the end of the day. The PLS TDR is in two parts, the Counterfoil that is

retained by the bank as a permanent record and the Receipt, which is given

to the customer.

While issuing the PLS TDR following is recorded:

- Amount of deposits in words and figures

- Tenure

- Name of depositor

- Maturity due

- The amount in figures is imprinted by a cheque writer

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- Signed by two authorized signatories as per signing instruction

The PLS TDR is delivered to the depositor upon acknowledgement which

is his signature on the reverse of the counterfoil which would be verified

from the signature on the Account Opening Form.

Due Date Diary:

A Due Date Diary shall be maintained for maturity of TDR’s.

FOREIGN CURRENCY ACCOUNTS

Foreign Currency Accounts can be opened in US Dollars, Pound sterling,

Japanese Yen and Euro for both resident and non-resident. The account

opening procedure would be discussed and the following types:

i. Current

ii. Saving

iii. Fixed Deposit

Additional requirements and exceptions are outlined hereunder:

No Zakat is deducted

Interest on Saving account and Fixed Deposit are circulated by the

International Division

Prior approval of International Division would be sought for deposits of 3

months and above

Deposit in cash should be avoided if the retention period is less than 2

weeks

All deposits and withdrawals in all types of foreign currency accounts

along with balances in each foreign currency are to be communicated to

the Treasury Division on a daily basis as per the cut off time.

Deposits in cash would be subject to cash handling charges as per

Schedule of Charges in force.

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Safe Custody & Deposit Facility

Safe Custody Facility

Bankers accept valuables from customers as they have adequate security

arrangements.

Banker-Customer Relationship is based on the contract of bailment.

Bailment:

It is the delivery of goods by one person for some purpose upon a

contract that the goods shall when the purpose is accomplished shall be

returned or otherwise disposed of according to the directions of the

persons delivering them.

Obligations of the banker:

Banker should take proper care

Bailee has to return the goods subject to the demand from the bailor

Banker should not use the articles

Banker has to deliver the goods to the customer according to his

instructions

Receipt of securities:

Sealed Boxes:

- Bank accept sealed boxes of convenient sizes

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Banker Bailee

Customer Bailor

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- While accepting a box banker should see that the box is seal with the

customer’s seal

- Words “CONTENTS UNKNOWN” should be prominently written on

such boxes

Sealed packets containing wills:

- Banker also accepts from customers for safe custody wills or sealed

packets said to contain a will

- With the instructions to deliver the packet after his death to a named

person

- Before delivering the packet banker should satisfy himself that the person

is named as an executor in the will

Safe Custody Receipt:

In case of shares, securities or articles

- Name & address of customer

- Mode of operation

- Full particulars of shares/securities

Delivery of securities

Full Delivery: Customer has to surrender receipt duly discharged/signed

by him

Part Delivery: Customer has to submit a delivery order along with receipt

The bank will strike out the delivered articles from the receipt

Safe Custody Facility

Banker Customer Relationship

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Lockers cabinets are installed in separate rooms

Each locker has only one key to be used by the customer

The number of the key and the locker to which it relates are not the same

2nd key is known as master key it is applied by the banker while opening

the locker along with the key of the customer

Operations of locker

Locker operations are controlled by contract, which contains the rules and

conditions which govern the vault operations

So contract is the basic document that set out the relationship between

banker and a customer

Guidelines to minimize improper access

In case of joint locker, never deviate from its terms

Never allow access even to an authorized agent on notice of death, mental

incapacity or in solvency of the licensee or one of the several joint

licensees until legal requirements have been properly fulfilled

Never allow excess if served with an attachment order or other restraining

orders without first consulting the legal department

Customer’s keys should never be in the possession of the custodian of the

vault

Licensing of lockers

Lockers can only be rented out to the legally capable persons

Can be allotted singly or jointly

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Customer Lessee

Banker Lessor

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Filling up and signing of application form and SS card

Admission of signatures

Pasting of application forms

Allot locker from the “locker chart” and mark locker number so allotted in

pencil on the chart

Demonstrate operation of the locker to the licensee

Keys of the un-rented lockers and those surrendered by the licensees must

be kept in the safe under dual control of the officers

Rent Key Deposits

Initial recovery of rent & key deposit must be recorded on application

form

Recovery of charges are to be balanced on monthly basis and record of

each licensee of lockers is to be maintained in locker issue register

Record of key deposits and their subsequent refunds is to be made in the

locker issue register

As rent of locker is received in advance the custodian of locker must

check the record and diaries them for necessary compliance

In case rent is not deposited within 7 days from the date it becomes due

the licensee be requested to deposit the rent, subsequent reminders be sent

on monthly basis and if after 4 reminders the rent is not received a notice

be sent through Registered A/D giving therein 30 days to deposit the rent

and in case of failure the locker will be broken open

VOUCHERS

Dr: Cash / Party’s Account

Cr: Income Account Rent-Locker

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Cr: Sundry Deposits-Key Deposits

Forced Opening of Locker

In the extreme event of forced opening due to termination of lease

agreement for non payment of rent locker may be opened subject to:

Prior approval of Head Office

In the presence of

i. Notary Public

ii. Custodian of Locker

iii. Branch Manager

iv. Resident Authority

After the force opening of locker:

Remove contents

Prepare inventory of the removed articles in quadruplicate

i. Original copy of Notary Public

ii. Duplicate is to be sent to the licensee through registered A/D post

iii. 3rd copy is to be kept along with the articles of the locker in the packet

iv. 4th copy is retained as office copy by the custodian of the lockers

The packet containing the removed articles and inventory is sealed in the

presence of all the persons, mentioned earlier.

The packet is retained under lien against unpaid rent of the locker and

other expenses incurred on the forced opening.

If the contents remained unclaimed for 6 months, rent and other dues have

also not been paid, then the licensee be given a 30 days notice, after Head

Office approval, stating that articles in whole or part will be sold to

appropriate the proceeds towards the recovery of dues

Surplus amount, if any, shall be remitted to the ex-licensee

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Breaking open lockers

In case the locker is required to be broken open by the licensee due to loss

of key following steps to be taken:

1) Letter of request from the licensee on the prescribed format

2) Verification of signatures

3) Approval of manager

4) Arrangements for breaking open and replacement of lock to be made

5) Licensee is asked to remain present in the bank at that time

6) Locker should be broken open in presence of

Licensee

Custodian of locker vault

Manager operations

7) After breaking open the licensee should remove his articles from the

locker

8) A certificate as per specimen is obtained from the licensee, which

contains that:

Locker was broken open on his request

In his presence

He has received the contents

He has checked the contents and found in order

REMITTANCES

“Transfer of funds from one place to another”.

Products:

Demand draft (intercity)

Mail transfer (inter/intra city)

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Telegraphic transfer (intercity)

Pay order (intercity)

Rupee traveller’s cheques (inter/intra city)

Online transfer of funds (inter/intra city)

Know Your Customer

The officer in charge of remittances department should check the

following registers on daily basis

Inward Remittances Register

Outward Remittances Register

Travellers Cheques Register

Clear & complete particulars of the beneficiary of outward remittances

should be obtained & recorded in the Remittances Application Form

Genuineness of funds being remitted should be investigated keeping in

mind following factors:

Debit in the account is not an aggregate of smaller credits

Deposit of cash in account immediately prior/along with request of

remittances

Several accounts are not being debited to build up the aggregate amount of

remittances where nature of business does not justify

The account is not being used only for the purpose of effecting/receiving

remittances/transfer of funds to other accounts without any business

personal banking related transactions

While handling remittances it should be ensured that the amount is in line

with the business size/profession of beneficiary

All electronic/telegraphic transfers should bear the name/address of

remitter

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Branches should ensure purpose & genuineness of large purchase of

multiple monitory instruments of significant amount by the customer

Due notice must be taken of unusual instructions such that remitted funds

are expected back through some different source/country

Large remittances to/from countries generally associated with the

production/distribution & making of narcotics, illegal weapons & other

unlawful trades should be monitored

Genuineness of funds being remitted should be investigated keeping in

mind following factors:

Debit in the account is not an aggregate of smaller credits

Deposit of cash in account immediately prior/along with request of

remittances

DEMAND DRAFT

Written Order

To pay Money

Drawn by one office of a bank upon another office of same bank

Uses:

One of the most reliable modes of transfer of funds

Used for intercity remittances of funds

Eligibility Criteria:

Should not be a:

Minor

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Illiterate Persons

Insane Persons

Can be issued to:

Individuals

Joint Names

Business Concerns

Can be issued against:

To the debit of customer’s account

- Against cheque

- Debit authority

Issuance of DD

Filling up of application form

Recovery of charges

Deposit of cash/cheque

Entry in system for preparation of DD, IBCA, printing of DD issue

register

Delivery of DD

Payment of DD

On receipt of IBCA

Scrutiny of IBCA

Verification of signatures of officers of issuing branch

Entry in the system

Vouchering

Payment through suspense account

Special care must be exercised

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Entry in system

Intimation to drawee branch

Payment through suspense account should be authorized by the Manager

Operations

Cancellation of DD by authorized officers

Issuance of Duplicate DD

Written Request

Verification of Signature

Marking in the System

Intimation to Drawee Branch

On receipt of reply from Drawee branch

Intimation to purchaser

Letter of indemnity

Duplicate DD, which must contain on its face following wording:

“Duplicate DD issued in lieu of original No-……….. Dated ……….

Reported lost”

Noting in DD system

Intimation to drawee branch

Cancellation of DD for refund

Written request by purchaser

Verification of signature

Genuineness of DD is established

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Scrutiny of DD specially on the grounds that it has not been negotiated or

duplicate of the same has been issued

DD is cancelled by tearing the signed portion of DD and marking the same

as “Cancelled”

Mark cancellation of DD and date of cancellation

On original application form

DD system

Refund of Amount

If purchaser is not account holder than the amount of DD is

credited in his account otherwise refund is made through Pay Slip.

The original DD is defaced & stapled with the Debit Voucher of Suspense

account

On receipt of IBCA from the drawee branch entry of suspense account is

reversed

Issuing Branch Drawee Branch

Receipt of application o Scrutiny of

Cancellation of DD Intimation

Dr: suspense a/c DD cancelled System

Cr: party’s a/c. cash o Vouchering

Dr: Bills payable a/c

DD payable

Intimation to drawee branch Cr: Mo a/c of Issuing

Branch

On receipt of IBCA

Dr: MO a/c of drawee branch

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Cr: suspense a/c DD cancelled

Crossing

Section 123 of N.I.Act 1881:

Where a cheque bears across its face an addition of the words and

company or any other abbreviation between two parallel transverse lines

simply, either with or without words not negotiable the addition shall be

deemed to be a crossing and cheque shall be deemed to be crossed

generally.

Cheque Crossed Account Payee

Sec 123 A:

Where a cheque crossed generally bears across it’s an addition of the

words “account payee” between two parallel transverse lines constituting

the general crossing, the cheque besides being crossed generally is said to

be crossed.

Special crossing

Sec 124:

Where a cheque bears across its face an addition of the name of the banker

either with or without words not negotiable that addition shall be deemed a

special crossing and the cheque shall be deemed to be crossed specially

and be crossed to the banker.

Development of crossing

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A bank clearing clerk named Irvin originated the idea which finally led to

the establishment of the London Clearing House at Lombard Street in

1775.

Protection available to the Collection Banker

Sec 131 of N.I.Act 1881:

Condition essential for obtaining protection:

Cheque must be crossed

Payment must be received by the banker on behalf of the customer

Collecting banker must act in good faith

Role of SBP

Being central bank, SBP is responsible for smooth operation of clearing

system. SBP acts as bankers’ bank.

NBP performs this function on behalf of SBP where office of SBP does

not exist.

Clearing Membership

All scheduled banks are full fledged members of clearing house.

Non-scheduled banks can be sub members through a scheduled bank.

Application in writing with a nominal fee is needed for membership.

The membership ceases when a bank ceases to be a scheduled bank.

Outward clearing at branches

Receipts of Instrument

Instrument must be accepted on the Bank’s pay-in-slip

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Deposit slip should contain

Instrument number

Name of drawee bank and branch

Signature of depositor

Immediately on receipt on instrument

Affix bank crossing & clearing stamp on the face of the instrument

Proper discharge on the reverse of instrument

Depositor account number on the reverse for ease of any subsequent

reference

Computerized bank wise schedule is prepared in duplicate one copy of

which is retained in the branch while other copy is sent to the main branch

along with instruments

Consolidation bank wise summary is also prepared in duplicate one copy

of this is sent to the main branch along with outward clearing

Guidelines for giving discharge on instrument

If instrument is Bearer/open, draw in favour of a limited company

If instrument is bearer but crossed “Account Payee Only”

If instrument is bearer but crossed generally (& Co/Not negotiable) drawn

in favour of a limited company.

If instrument is order (whether crossed or not deposited in payee’s

account)

If instrument is order & crossed generally & being deposited in endorsee’s

account

If instrument is bearer & crossed either generally or crossed not

negotiable, drawn in favour of a limited company

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If instrument is mutilated but being credited to a well known customers

account as payee

If instrument is collected as agent for another bank

In case DD being deposited in a well known customer’s Account as payee

In case of cheque being collected in special clearing for payee

Collection

Article 2 of URC 522

For the purpose of these Articles

“Collection” means the handling by banks of documents as defined in

sub Article 2(b), in accordance with instruments received, in order to

i. Obtain payment or acceptance OR

ii. Deliver documents against payment &/or against acceptance

iii. Deliver documents on other terms & conditions

Documents means financial documents and/or means commercial

documents

i. Financial document means bill of exchange, promissory notes, cheques or

other similar instruments used for obtaining the payment of money

ii. Commercial documents means invoices, transport documents, documents

of title or other similar documents or any other document what so ever, not

being financial document

Clean collection means collection of financial documents not

accompanied by commercial documents

Documentary collection means collection of:

i. Financial documents accompanied by commercial documents

ii. Commercial documents not accompanied by financial documents

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BUSINESS OPERATIONS

Organizational chart

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Marketing strategy

Most companies use the term marketing mix to describe the combination

of elements that they use to achieve goals for selling and promoting their

products and services. When the company decides which elements it will

use, it calls that particular marketing mix its marketing strategy.

The major marketing management decisions can be classified in one of the

following four categories:

Product => physical item/service provided by bank

Price => commission received

Place (distribution)=> placement of product/service

Promotion => means of spreading the words about the

product/service

These variables are known as the marketing mix or the 4 P's of

marketing. They are the variables that marketing managers can control in

order to best satisfy customers in the target market.

1) Product

“The end result of the manufacturing process, to be offered to the

marketplace to satisfy a need or want.”

Askari Mahana Bachat Account (1 + 3 Years Term)

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“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.

Features:

Product type Term deposit

Eligibility Individual only

Balance requirement Mini Rs.50, 000/- max Rs.10, 000,000

In multiples of Rs.25, 000/-

Tenure 1+3 years

Profit payment Monthly - 1st of every month

Profit rates Competitive

Servicing Available at all Askari bank branches

Financing limits Upto 90% of the principal 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 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 in the form of monthly deposits for five

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4

years and get paid back the same amount for the next five years while

receiving principal amount in full at the end of the tenure.

Features:

Product

Type: Term Deposit

Eligibility: Individuals Only

Balance

requirement

s:

Minimu

m Rs.

5,000/-

Maximu

m upto

Rs.

50,000/-

In

multipl

es of

Rs.

5,000/-

Tenure: 10 Years (5 + 5)

Profit

payment:

Monthly – on completion of first 5

years

Profit

Rates: Competitive

Servicing: Available at all Askari Bank branches

Financing

Limits:

Upto 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!”

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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.

Features:

Product

Type:

Term

Deposit

Eligibility:Individuals

Only

Balance

requirements:

Minimum

Rs. 50,000/-

Maximum

upto Rs.

10,000,000/-

Tenure: 10 Years

Profit

payment: On maturity

Profit Rates: Competitive

Servicing:

Available at

all Askari

Bank

branches

Financing

Limits:

Upto 90%

of the

principle

amount

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Askari value plus deposits

“The Best You Deserve”

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

Value plus Rupee Deposit Accounts, which promise greater financial

freedom and security, in an un-matched way.

Types of Value plus Account

1. Value Plus Current Account

2. Value Plus Saving Account

3. Value Plus Time Deposits

Why Askari Value Plus Account?

1. Free issuance of Debit Card

2. Free global accidental insurance coverage against debit card irrespective

of balance in the account or age of the cardholder

3. Free ATM Cash Withdrawal insurance

4. Free online funds transfer facility

5. Free internet banking services

6. Free of cost 24 hours global accidental insurance coverage up to Rs. 2

million

7. Facility of Supplementary Debit Cards

8. Monthly returns on saving deposits

9. Partial encashment facility for time deposits

10. Automatic roll over facility for time deposits

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11. Our un-matched service quality

ASKCARD

Askari Bank is committed to provide innovative and competitive solutions

to banking needs in a more efficient and personalized manner. Bank

enjoys a strategic competitive advantage over all domestic players by

virtue of its leadership, large network and technological advancement. In

line with 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 one can have retail transactions with complete peace of mind. Askari

Debit Card is new shopping companion which enhances quality of life by

letting you do shopping, dine at restaurants, pay utility bills, transfer

funds, withdraw and deposit cash through ATM anywhere, anytime.

"Convenience at its best"

Why ASKCARD?

Free of Cost (24) hours Global Accidental Life Insurance upto Rs.

500,000/- for every cardholder irrespective of balance in the account

Free ATM Cash Withdrawal Insurance upto daily cash withdrawal limit of

the cardholder against snatching, armed hold-up or forced deprivation of

money

Free issuance of Debit Card for new Value Plus Accountholders

Umrah Tickets for 2 lucky cardholders       (Each year)

Home insurance of 10 lucky cardholders    (Each year)

No hidden charges

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Free from carrying cash or cheque books

Free Funds Transfer Facility

Free Utility Bills Payments through ATM’s

Shopping Facility at POS terminals

Maximum daily cash withdrawal limit

Balance Inquiry, Mini Statement

Supplementary Cards

Un-matched Online Real-time Services

Askari rupee traveller cheques

Askari Bank Limited has always remained at forefront in introducing

innovative and unique products in banking sector. Financial instruments

provide greater financial freedom and security in an unmatched way to our

valued customers.

Askari Bank offers you its "Rupee Traveler Cheques" eliminating all

financial risks while traveling. So avoid risk of carrying cash through

Askari Bank's Rupee Traveler Cheques.

"You’re Best Travelling Companion"

Why Askari Bank's Rupee Traveler Cheques?

1. Free issuance

2. Free encashment

3. Profit will be offered at the time of encashment*

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4. Nationwide acceptability

5. Facility of encashment in cash to the purchaser

6. Facility of encashment through clearing

7. No purchasing limit

8. Valid until encashed

9. Easily transferable

10. Account relationship not mandatory

11. Fastest refund procedure in case of loss / theft

12. Safe & secure mode of funds transfer

13. Available in Rs. 10,000 Denomination at all branches of Askari Bank

14. Perfect substitute of your cash

Smart Cash

Product Featuring:

Borrower:

Resident

Pakistani

Nationals

Facility:

Personal

Line of

Credit.

Financing

Limits: 

Maximum

upto Rs.

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500,000/-

(Clean)

Maximum

upto 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.

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Income: Minimum

gross

monthly

income

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).

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Charges/

Fees:

As per

current

schedule

of charges.

Personal Finance

“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

upto Rs.

500,000/.

(Clean)

 

Maximum

upto Rs. 1

Million.

(Secured)

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Tenor:

Maximum

upto 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.

Financin

g Limits:

Maximum

upto Rs.

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4

500,000/.

(Clean)

ASKARI MORTGAGE FINANCE

Product specification:

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. Mortgage is a premium home financing product for customers

aged between 23 – 65 years belonging to the upper, upper middle and

middle income groups, residing in the urban areas of Pakistan.

Business Finance

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

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cash requirements, and start enjoying our unique Askari Business Finance

facility.

Product Featuring:

Borrower: Resident

Pakistani

Nationals.

Facility: Running

Finance/Term

Finance.

Financing

Limits:

Maximum

upto Rs.1.0

Million

Maximum

upto 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

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the

outstanding

balance.

Markup

Rates:

Competitive.

Servicing: Available at

all Askari

Bank

Branches.

Balance

Transfer

Facility:

Available

Eligibility to Apply:

Age: 21 to 65

Years.

Borrowers: Resident

Pakistani

Nationals.

Business

Requirements

:

Maximum

upto Rs.

500,000/.

(Clean)

Employment: Minimum

one year's

business or

professional

experience

in the

present

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business

Charge/Fees: As per

current

Schedule of

charges

2) Price

“Market value, or agreed exchange value, that will purchase a definite

quantity, weight, or other measure of a good or service.”

Products prices of ACBL are determined by:

1) SBP

2) Head Office, Rawalpindi

The markup or price paid for services mainly includes:

Long term loans

Short term loans

Letter of credit

Guarantees

Bill discounting

Remittances

Lockers

Bank drafts

Appraisal fee

Bank commission

3) Promotion

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Promotion is one of the four elements of marketing mix (product, price,

promotion, distribution). “It is the communication link between sellers and

buyers for the purpose of influencing, informing, or persuading a potential

buyer's purchasing decision.”

The following are two types of Promotion:

Above the line promotion : Promotion in the media (e.g. TV, radio,

newspapers, Internet, Mobile Phones, and, historically, illustrated songs)

in which the advertiser pays an advertising agency to place the ad

Below the line promotion : All other promotion. Much of this is intended

to be subtle enough for the consumer to be unaware that promotion is

taking place. E.g. sponsorship, product placement, endorsements, sales

promotion, merchandising, direct mail, personal selling, public relations,

trade shows

Askari bank does its promotion through following ways:

Brochures

Banners

Billboards

Ad in the newspaper

Direct marketing

Public relations

4) Place

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Last marketing tool is placement, which includes the various activities a

bank undertakes to make product and services easily accessible or

available to customers. ACBL has opened almost all its branches at

Commercial areas or near to commercial areas so that the customers or

clients face no problem in reaching to the bank.

Competitive strategy

As Askari more on to device a strategic plan for coming years for Askari

bank, it need to constantly remind itself that the margins are shrinking.

The number of financial players in the market has gone up several times

since the early 90’s. Not only the number of players has increased many

folds but they are also much better equipped with much stronger capital

bases, reach and competent managements.

Analysis

I m conducting the competitive analysis between ACBL and Bank Alfalah

with respect to the working of their HR department, Before conducting an

analysis it is feasible to briefly overview the competitor’s findings.

Introduction: (Askari Bank Ltd)

Askari Bank Limited (the Bank) was incorporated in

Pakistan on October 9, 1991 as a public limited company and is listed on

the Karachi, Lahore and Islamabad Stock Exchanges.

Human Resource department:

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ACBL is an organization that provides opportunities for its staff to have a

challenging and rewarding long-term career. To this end the Human

Resource Group (HRG) encourages and motivates its employees to excel

in the responsibility that they have in the organization .It believes that

creativity and innovation comes from talent, knowledge and experience

and it is ACBL’s endeavor to provide and maintain an environment which

not only nourishes these strengths but also provides opportunities for the

staff to have a career which has multidimensional growth opportunities.

In doing so, HRG has been restructuring and redesigning the overall

structure of the organization, which includes rationalization, cutting down

the decision layers, improvement in staff training and hiring professionals

and MBAs at entry-level management.

The overall direction of HRG has been towards nurturing the strengths of

the human capital to its maximum with a defining principal to help create

a progressive environment and sustain a thorough commitment of our staff

towards focused customer service.

Recruitment & Selection

In ACBL recruitment is done by following three ways:

Internal job announcement

Hiring through talent pool

Job advertisement

1: Internal Job Announcement:

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Internal job announcement is

divided into four sections. The whole procedure of recruitment passed

through these sections, from announcement to recruitment. These sections

are:

Segment

HRD (human resource division)

Staff

Candidate’s Supervisor

Steps of recruitment process:

Following are the steps of whole

recruitment process through announcement:

Step 1:

Request is raised by the segment on a “Requisition Form” with

complete information.

Step2:

Budgetary and position related requirements are checked by

HRD, recruitment and an internal job announcement is broadcasted

through e-mail.

Step3:

Staff reads the internal job announcement, fills in application and

submits it to HR before the mentioned cut-off date.

Step4:

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Recruitment reviews and shortlist the applications, the entries are

forwarded to the segment for selection by HRD.

Step5:

HR conducted initial interviews of interested employees, filled

IAF and sent it to the relevant segment.

Step6:

Segment receives the application from recruitment and calls the

candidates for interview.

Step7:

“Interview assessment form”/ Comments of segment are filled for

the candidate with details if he/she is selected or rejected.

IF SELECTED:

If candidate is selected then:

Step8:

Recruitment sends an e-mail request containing relevant

information to HR Operations for the issuance of internal transfer letter to

the candidate. In reply to the e-mail HR Operations issues a transfer order

to the candidate.

Step9:

HR files interview Assessment form into the employee’s personal

file. Master Database is updated.

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Step10:

Candidate’s Supervisor receives the mail from HR with

appropriate release date for the candidate.

IF REJECTED:

After step 7 if candidate is rejected then:

Step8:

Staff and his Supervisor are informed.

2: Hiring through talent pool:

Hiring through talent pool is divided

into two sections. The whole procedure of recruitment passed through

these sections. These sections are:

Segment

HRD (human resource division)

Steps of recruitment process:

Following are the steps of whole

recruitment process through talent pool:

Step1:

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If an appropriate resource is not selected from within the bank,

HR revisits the ERF (Employee’s Requisition Form) and searches for

resumes and searches for resumes from the HR Talent Pool (On-Line)

Step2:

Resumes are selected / screened by HR recruitment as per the

given criteria. These are scrutinized, short listed and forwarded to the

segment.

Step3:

Segment receives the short listed resumes and contacts the

candidate for interview.

Step4:

The Segment completes the IAF with detailed comments

(Recommended package, positive traits etc).

Clearly indicating if the candidate is RECOMMENDED or DECLINED

sent to HR with all delegated approvals.

Step5:

Interview Assessment Form is received by HR.

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IF DECLINED:

If resume is rejected then:

Step6:

Process is closed.

IF RECOMMENDED:

If resume is recommended then:

Step6:

Candidate is called for a final interview. HR completes the IAF

and discusses the salary package with the candidate.

Step7:

HR prepares the letter of Appointment and calls candidates for

collection.

Note:

Upcountry / remote areas: Telephonic interviews will be conducted by

manager / Assistant manager recruitment.

CV’S are uploaded into website (www.askaribank.com or HR online) by

segments or interested candidates.

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CV’S received through walk-in, post & or e-mail will also be uploaded on

the Talent Pool after through screening by HR.

HR will utilize the database to get resource information as and when

required.

3: Job advertisement:

Hiring through job advertisement is divided

into two sections. The whole procedure of recruitment passed through

these sections. These sections are:

HRD (human resource division)

Marketing

Steps of recruitment process:

Following are the steps of whole

recruitment process through job advertisement:

Step 1:

If an appropriate resource is not selected from within the bank

Internal Broadcast & HR Talent Pool, HR will then proceed with the

advertisement channel.

Step 2:

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Recruitment will draft a write up for the vacant position and send

it to Marketing along with a target date for publishing.

Step 3:

Marketing will coordinate with the agency and develop a sample

proof of the desired advertisement.

Step 4:

Marketing will receive the sample proof of the advertisement

from the agency, proof read it and will forward it to HR for approval.

Step 5:

HR receives the sample proof from Marketing, coordinates with

the segment. If OK HR gets final approved sample proof to Marketing.

Step 6:

Marketing receives the approved sample proof from HR and

coordinate with the agency to place the advertisement in the local

newspaper.

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Introduction: (Bank Alfalah)

Bank Alfalah was established in July 1997. Its H.O is in

Karachi and bank has 49 branches allover Pakistan.

Services:

Bank is offering different types of services for all its valued

customers. These services are: ATM, online banking, home loan, car

financing etc.

Human Resource department:

Bank has a HR dept who perform

different sort of functions. The dept advertises in newspaper for the jobs

then recruitment and selection process occurs. Training and development

is major task of HR dept.

In HR dept there is one Executive incharge, one assistant executive

incharge and personal managers.

Selection & recruitment:

Bank advertises in newspaper & candidates

apply for the jobs, after test, interview and other formalities the selected

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candidates are given 6 months training. Every year the bank offers 30

vacancies for the post of MTO’S.

The MTO program is a highly competitive & sought after induction

scheme, in which short-listed applicants appear in a written test followed

by a panel interview. Successful candidates then receive comprehensive

training in essential areas of branch banking at the bank’s state of the art

training facility at Karachi. They are subsequently posted at the banks

prior to their posting at various branch locations in Pakistan. Preferred

educational background for entry into the MTO scheme includes an MBA

degree, MA economics or M.com from reputable Pakistani or foreign

institution with GPA of 3 plus or equivalent. Strong personal character, as

well as communication and interpersonal skills are essential pre requisites

to succeed as MTO.

Training & development:

Its management believes in developing the

potential of the bank’s employees to the fullest extent. T&D center of the

bank is housed in custom built, state of the art facility on the 4th floor of

the H.O building at Karachi. The center is responsible for providing multi-

level high quality training programs to all staff members in the following

areas:

Consumer banking operation

Credit marketing & credit proposal

Credit administration/documentation

Trade finance operation

Marketing & selling skills

Customer service skills

Performance appraisal skills

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Time management

Personal effectiveness

It is obligatory for each staff member of the bank to attend at least one

training program. Wherever the training department is unable to provide

focused training for certain groups of staff, reputable external training

providers are invited to fill the gap.

The candidates are given 6 month training in which theoretical lectures are

given along with different case studies, situations & presentations

techniques. Groups are made to enhance coordination and team building

candidates with different skills and abilities are appreciated for their

creativity. During the job formal & informal meetings are conducted

where all employees are free to speak and they can give different ideas

and plans. Employees are encouraged for continuous learning and bank

even send its employees for special training courses to abroad.

Main training pressure paid of Bank Alfalah is also same to that of ACBL,

i.e.

Identification that either the training of current employees is necessary or

not, depends on the result of Annual Performance Report.

Reward system:

Each manager submit the report of his subordinates to

his boss in which they evaluate his employees from different dimensions

and if audit report of any branch show negative impact than all types of

increments are stopped of all employees of that branch.

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Analysis

Analyzing the training and development practice of ACBL and comparing

it with T & D of Bank Alfalah it is concluded that currently ACBL is

effectively meeting its targets, but to encounter with future demands,

ACBL needs to overcome some short comings in order to maintain and

gain competitive edge.

Business process analysis

In FY09, for the first nine months banks were reluctant to lend to

corporate and individuals owing to skyrocketing bad loans amid lack of

demand from industries who were avoiding high financial charges. But,

with some sign of economic recovery, lately, with inflation tapering off

amid marginal growth in large-scale manufacturing sector, the demand for

corporate credit gradually rose. However, attractive rates offered by

government bonds still remain lucrative enough - wooing banks to put

depositor’s money in low risk papers instead of meeting the demand of

private sector (Industry review, Business Recorder, 2010).

Financial performance:

Askari Bank was able to post an after-tax net income of Rs 1.18bn in

FY09, which is 187% increase from the previous year of FY08. The bank

has been able to accomplish this through various ways. Its year-on-year

mark-up interest income increased by 23%, mounting to Rs 22bn in FY09.

Following this, we observed that there was a huge increase in particulars

of provision for impairment in value of investments by 1500%, as the

amounted augmented to Rs 76,784 million in FY09 compared to Rs 5

million in FY08. This was due to the charges for the year that were

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charged on the investments made by the bank. Second was the increase in

the gain on sale of investments, which increased by 291% amounting to

Rs 143 million in which two main particulars have to be pointed out.

GAIN ON SALE OF INVESTMENTS - NET (000s)    2009   2008

Market Treasury Bills              62,177     266

Shares - Listed                 47,015    6,682

Such high increase in sale of investments, have yielded in high profits for

the bank for FY09.

The scenario of the NPLs does not seem very favorable for the bank. The

NPLs have consistently seen an increase, indicating that the bank is either

not very efficient at collecting the outstanding loans or has a very liberal

loan distribution policy. Their pace of growth has outdone the rate of

increase in advances. The bank may face considerable credit risk from its

loan defaulters. In FY06, bank s advances witnessed marginal increases in

consumer finances, especially Ijara financing, corporate financing while

they observed a slight decline in the shares of SME and agriculture.

The assets of the bank witnessed some shift in their composition away

from loans towards investments. This has also been the trend industry

wide to meet the MCR requirements as directed by the State Bank of

Pakistan. Though these investments offer lower returns than the loans,

they are more preferable in this situation for the bank as it is struggling to

get its loan..

In FY09, the bank maintained its marginal increase of lending to financial

institutions as it only increased by 3%, similarly the advances too are seen

as controlled lending as these also increased by a mere 5%. The reasons

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tend to be the same as it were in the previous year. Low advances because

of high NPLs raising from consumer banking and also from certain sectors

of the economy especially the textile sector. However, on the flip side, we

see a dramatic increase of 88% of investments, which amounted to Rs

135bn. The investments category is further broken down to see where

investments are done.

The liquidity of the bank has maintained a consistent upward trend, with

its yield on earning assets always above the cost of funding them. It s

imperative to note that cost and yield on funding earning assets run

parallel which means that banks are not compromising on their spreads in

the years of performance regardless of dynamic economic conditions. This

liquidity consistency in the years until FY06 may be attributed to the

excess liquidity that prevailed in the industry due to high reserve growth

of the banking sector.

The State Bank of Pakistan intervened in this situation by contracting the

monetary policy. Also, post-emergency declaration when the rupee fell,

the SBP intervened twice to ease the liquidity conditions in the market.

The SBP has prudently managed the liquidity while the bank also has

certain arrangements to maintain its liquidity. It has most of its

investments in treasury bills. The liquidity position may be predicted to

remain similar to the above in the coming years. However, at the same

time Askari needs to safeguard its liquidity against the increasing NPLs.

Askari Bank was able to maintain its liquidity condition with keeping its

ratios in line with previous year of FY08. The earning assets to assets

remained at 81% as much of the percentage was due to the fact of a high

increase of investments in the government securities. Subsequently,

advances to deposits remain constant at 71%, as the bank did not increase

its advances to consumers due to high NPLs to advances in the previous

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year.

The bank s spread was sustained at 4% as it only decreased marginally by

1%. This was because the industry average remains to be at 5-6% for

FY09. This again helps us to understand the positivity of the bank in such

recessionary condition that they are not compromising on their spread and

maintaining at 4%.

The solvency of the company has been successfully maintained over the

years. As evident, the share of equity is increasing. This may be regarded

as a move against the rise in deposit rates and a decrease in the banking

spread of the banking sector. This healthy trend in solvency may be

predicted to continue in the future. The greater than earning assets deposits

are the result of excess reserve money growth while the increase in the

non-performing advances has undermined the advances performance.

With the gradual shift to investments, we may expect the adverse impact

of the NPLs to reduce, but this may take a long time.

The trend of maintaining healthy solvency was carried out even in FY09,

as the equity to assets was maintained at 6.1%, along with this the earning

assets to deposits remained 100%. This shows the asset based is well

utilized by the bank and with the new trend to shift towards low risk

investment of government securities. As observed more of the deposits are

concerned with long-term deposits.

Asset quality has been improving since 2008. We saw a decrease in

provisioning to NPLs in FY09, as it decreased by 7% from FY08. With

the new regulation by the SBP of keeping Forced Sale Value to 40%, the

upcoming provisioning would be lower than the previous ones. The asset

quality was also maintained as low advances were given to consumer as

well as other corporate sectors; therefore the NPLs to advances also stood

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still at 9% in FY09, whereas the NPLs were still the same for the period

but not increasing as can be seen through previous years.

The market value of the bank has shown an upward trend throughout. The

bank has been a consistent distributor of the dividends. The increased

profitability of the banking sector (an increase of around 100%) has made

this sector one of the most lucrative ones to invest. This increasing

marketability profile is reflective of Askari s high yields on earning assets

and favorable liquidity and solvency positions. We may expect such trend

to continue in the future. In FY06, the high share-price of the bank is

accountable for this trend. Market value to book vale are not reliable

measures of performance anymore as the market prices of shares are

distorted therefore it does not depict a true picture.

In FY09, the market value rose after the nine months ending showing a

late year push towards the recovery of the economy. As the investors

gained confidence in the company, the results were shown as the EPS

surged from Rs 0.95 to Rs 2.18 in FY09. However the dividend payout

remains very low, as low as 0.07%.

The bank has maintained its reputation as one of the consistent payers of

dividends. This year the bank did not give any cash dividends rather it

gave stock dividend, this would help bank in two ways, first, by

maintaining liquidity and second by making up for the MCR requirements.

The bank was able to maintain a healthy 11.5% contrast to minimum

requirement of 10%. 

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The required minimum capital requirement can be achieved by the bank,

either by fresh capital injection or retention of profits. The stock dividend

declared will be counted towards the required paid up capital of the bank

pending completion of the formalities for issuance of bonus shares. The

bank intends to meet this requirement by way of bonus issue subsequent to

balance sheet date, in this year.

Future outlook 

The banking industry can be seen positively as some private credit

increase is observed in the year-end of 2009 and started picking up. With

key policy rate at 12.5% the SBP maintains to keep a balance and wants to

increase the circulation of the money in the economy and not keeping it

tied up.

On the other hand, much of the investments still lie on the government

securities as the government borrowing.

With uncertainty still hovering in the economy and the inflation till Feb

2010 still remains high at 13.8%, the key policy rate is designed neither to

be tight nor to be sluggish. Therefore much can be expected in the

upcoming year, as the pace for economy recovery along with increase

private credit can uplift the economic cycle.

Concerns of SLR and CRR are not in consideration for most banks as

healthy safety is kept to ensure no bankruptcy is involved.

The only matter of concern would remain the outcome of the new

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monetary policy which is said to be designed in a way to boost the

economy.

Askari Bank in particular remains strong in terms of their balance sheet as

their asset base is strong and their liabilities are more of long term. Along

with this the current year performance is considered extraordinary.

Therefore positive expectation can be anticipated for the bank.

S.W.O.T. Analysis

SWOT analysis gives a very good analysis of what the firm is, what it

wants and what can it do to get better than it is at the same time indicating

the factors that could lead to a havoc.

SWOT is an abbreviation for;

Strength

Weaknesses

Opportunities

Threats

Strengths

Askari Bank has set its firm foot in Pakistan and has gained its strengths

over the period of time an effort of enlisting its strengths can be done as

follow;

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The past decade has been the biggest strength because that was the time

when there was not much of the competition and it gave time for the

company to adjust and now it has grown better than the rest

It has a good reward policy of giving bonuses and incentives for its

customers.

Askari Bank has a flawless Customer services

The MIS they use in the company is always updated well ahead of time

giving the bank an upper edge

Honesty, Equality and fairness prevail throughout the organization and

that is the utmost requirement.

The card division has strong network facilities nationwide

ACBL has got a well-developed on-line system in most of its branches.

Remittance Department is working very efficiently in transferring the

funds of people due to this system.

The bank has also started ATM facility in most of its branches. 24-hour

banking is new trend in Pakistan and ACBL has also taken apart in this

trend.

One distinctive feature of the bank is that it is the only bank working for

the welfare of army officers, which was established by Army Welfare

Trust.

The productivity of the bank is very good. Bank is providing a high

quality service to its customers.

ACBL have strength that most of the imports & exports which are done

are handled by ACBL.

Weaknesses

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A certain education level should be set for a particular task, it adds up to the

hard-work, the company has some undergraduates as well which can

effect the company

Its good to have a friendly working environment but there should be a code

of conduct.

Because of the increasing workload the employees a being over burdened

The inventory management is not up to the mark

Promotions and transfer from departments is a political issue.

Bank is not introducing new products and new saying schemes. Bank should

boost the product development and increase the range of facilities offered

for customers..

Opportunities

Better and convenient services to employees and business class.

Expansion of their branch network can be very helpful.

Engage qualified professionals for providing specialized banking products

and services to their customers, reorganization of existing systems as well

as Infrastructure with de-centralized work processes. The human resource

factor plays a critical role maintaining the efficiency and profitability level

of the bank in future.

Institutionalization of HRM (best person should be posted for best

assignment), depoliticizing the atmosphere.

Bank can extend its network in other countries.

It can enhance its profitability by making use of new technology.

The plastic money business still has a lot of potential to grow so it gives the

company an opportunity to introduce new products and services.

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They should keep on looking for opportunities in the market because it’s a

first come first served situation.

Threats

Very uncertain economic conditions.

Actions taken by competitors.

Political instability.

Employees turnover rate is too high

Politics involved in a working atmosphere has never done well for the

company it has always gone the other way round.

ACBL has many competitors, which are continuously increasing its

products and marketing aggressively. It may cause its customers to shift to

competitors.

Some other banks have competent taskforce, which is also a threat for

ACBL, because human resource is the most valuable resource.

Pakistan India relations often create a war danger. This chance of war may

cause army officer and their families to increase the frequency of

withdrawals, which would decrease deposits.

LEARNING

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One of the most important aims of student’s life is to express

himself correctly and adequately, with this belief in mind, I decided to go

to Askari bank to complete my internship program.

Determined, confident and persistent in the pursuit of knowledge

and learning, I was on my to Askari bank DHA II branch in the morning

of 21st June 2010.

Duties

I performed different duties that were assigned to me throughout the

internship. Duties that I performed during my 6 weeks of internship are

related to different departments. I performed my duties in departments

like:

Accounts department

Account opening

Credits

Remittances

Foreign & international trade

I also perform my duty of operating photocopy machine and fax machine.

Accomplishments

I worked in different departments, but the knowledge I gained

from accounts department is very valuable. I really liked working in that

department. Working in this department was quiet tough as compared to

other departments but the knowledge I gained from that department was

very helpful to me.

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The internship program is very beneficial. It provides me good

opportunity to learn new things. Moreover it teaches me to know that

world of study and world of work are completely different. Unlike

studying, working life is not smooth. Often, I faced many problems during

working. I found that there are two valued things that help me to solve

problems are “braveness and patience”. Brave to face and be patient to

solve them.

New Knowledge Acquired

All the knowledge I acquired from my internship is new to me,

because I had never done internship before. Directly communicating with

customers and fulfilling their basic requirements was totally a new

experience for me. I learned how to communicate effectively and

efficiently with customers. Internship also improves my communication

skills with different persons in well manner.

During working at Askari, I had a chance to use every of English skill.

First is writing. I was assigned to write many kinds of letter such as

official letter of invitation, letter of sympathy and letter of informing. This

not only made me improve my writing skill, but I also learned how to

write proposals in the real situation.

Second is reading. All the documents are in English so it is necessary that

reading and understanding skills should be good.

Reading English documents everyday helped me have a better reading

skill. I can read faster and can find out main point easier.

Third is listening and speaking. Since I worked with foreign exchange &

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international trade manager for 1 week, she speaks with me in English

most of the times. Throughout the week in foreign exchange &

international trade department, I had to communicate with supervisor and

colleagues in English. Of course, my listening skill is improved and had

more confidence in speaking English.

Problems Encountered

Internship was a good experience for me, but there are some

problems which I faced in the begging of my internship.

During the internship program, I faced some problems in my work. The

first problem is writing official letters. I had to write many kinds of

official letter or proposals in English which I have never written before;

for example, the official letter of invitation, the official letter of informing

and the official letter of sympathy. These letters had been sent to different

companies for their credit requirements, therefore, it needed exquisiteness.

I tried my best to cope with this problem by trying to study the previous

letter and consulted with my mentor, Mr. Bilal Zahid and Mr. Osman

Yusuf, Credit manager. However, this kind of problem taught me to learn

new vocabularies and idioms used in business world. For me it is very

beneficial.

Besides writing official letter, I had some difficulties in translating

documents. I was assigned to translate the documents both from English

into Urdu and Urdu into English. This was my first time to translate

official documents. For translating English into Urdu, my heavy-hearted

thing was that there are several technical terms that I have never seen

before. Moreover any dictionaries couldn’t help me. The best way to solve

this problem was “don’t hold on form” but had to interpret and translate

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them from the context. For translating Urdu into English, I was assigned

from Credit officer to translate advertisement and credit manuals. I

haven’t been accustomed to using credit language, so it was quite difficult

for me. I coped with this by learning advertising language and idiom used

in Internet, magazine and newspaper in order to be guideline in using

credit language appropriately and accurately.

How Experience Impacts your Career

Upon the start of my internship at Askari bank I did not have a

lot of experience in public relations. In some capacity I knew that I would

be working towards improving the image of customers and my

supervisors, which in this office ranges from high tech startups, to publicly

traded companies, to profit and non-profit organizations. However, I was

unsure of what exactly an intern in the services industry would be

responsible for on a daily basis.

After six weeks of my internship i can honestly say that I have learned a

great deal about the industry itself and I now have a more concrete

understanding of what the job description is for one who works in public

relations.

Among the many things that I have learned almost in the last two months,

the most important for me are the general knowledge that I now have

about the field, as well as the tools that I have gained that will enable me

to perform better when working in the industry.

The internship program at Askari bank has provided me with a strong

foundation for what might likely be the start of a career in public relations.

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I now have confidence in myself that I can work successfully in a services

firm and be a strong asset to a hardworking team. However, just as a house

is not complete after the foundation is laid, there is still much more for me

to learn and experience.

I look forward to continuing this path of learning and exploration and will

not forget what I learned during my six weeks of internship.

Identification of plausible problem(s)

There are problems being faced here at Askari Bank some of which can

easily be highlighted;

Bank is facing a high tax rate, which affects its profitability and

attractiveness for new entrants.

Middle class and low income group have limited access to bank credit.

Weak internal controls, non-merit based recruitments

High administrative costs affect the performance of bank.

Continuous maintenance is compulsory

Favoritisms while promoting employees.

Education level of the employees

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Recommendations

Besides taking care of the above mentioned problems there are some

recommendations which can be advised to the bank, which can be helpful

for the Bank:

1. Employees should be given a course of training from time to time or they

can also use the on the Job training method. Training can be done in the

following areas

Better training of employees in the communication skills area

Undergrads have to be trained accordingly

Continuous training about the latest updates

2. New advertising campaigns should be launched especially in the

electronic advertisement areas

3. There is a need for expansion of the working area especially in the finance

department as the work load is increasing and new recruitments are

compulsory

4. Politics should be discouraged in such an environment

5. The employees should be given more incentives and rewards for their

good performances

6. There should always be innovation in any business to flourish and there is

a lot more to explore in the banking sector and its always first come first

served.

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Conclusion

Banking is one of the most sensitive businesses all over the world as banks

play very vital role in the economy of a country and Pakistan is no

exemption.

Askari Bank has been growing both in size and profits for past few years

and is one of the most reputed groups. It has gained a good repute in the

banking sector of Pakistan.

Employees are the most important assets for any organization as the

success of any organization lye in their hands, therefore there is a need the

group to focus on the needs of their employees. The bank has to overcome

its weaknesses and should avail the opportunities available in the industry,

because competition is very intense particularly in the banking sector these

days the organization which offers far better services to its customers than

its rivals will succeed ultimately.

I have made an honest attempt to generate an original piece of writing that

could serve as a vivid proof of the fact that students at Comsats Institute of

Information Technology (CIIT) are certainly no mugs at what they do. I

truly hope that this report also certifies the fact that all of my worthy

teachers performed their duties of academic guidance and moral

mentoring with utmost efficiency and effectiveness.

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Bibliography

www.askaribank.com.pk

www.wikipedia.com

www.google.com

www.answers.com

www.sbp.org.pk

Askari bank general banking mannual

Comsats Institute of Information Technology