Mc070200390 Presentation Askari Bank Ltd.
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Transcript of Mc070200390 Presentation Askari Bank Ltd.
Imran MehmoodImran Mehmood
mc070200390mc070200390
MBA (Finance)MBA (Finance)
Askari Bank Ltd.Askari Bank Ltd.
Khanewal BranchKhanewal Branch
Brief Introduction of the Askari Bank
Date of Existence Date of Existence October 9October 9, , 19911991 by AWT (Army welfare Trust) by AWT (Army welfare Trust) Started operations during Started operations during April 1April 1, , 19921992 Listed on KSE, LSE, ISEListed on KSE, LSE, ISE
Business volumeBusiness volume
Assets over Rs. 206 BillionAssets over Rs. 206 Billion Over 8 Lacs CustomersOver 8 Lacs Customers
Competitors of the Askari BankCompetitors of the Askari Bank
National Bank of PakistanNational Bank of Pakistan Meezan Bank LimitedMeezan Bank Limited Allied Bank LimitedAllied Bank Limited MCB Bank LimitedMCB Bank Limited NIB Bank LimitedNIB Bank Limited United Bank LimitedUnited Bank Limited Habib Bank LimitedHabib Bank Limited House Building Finance CorporationHouse Building Finance Corporation Khushhali Bank LimitedKhushhali Bank Limited
Organizational Hierarchy ChartOrganizational Hierarchy Chart
Training ProgramTraining Program
Weekly Training ScheduleWeekly Training Schedule
Agriculture - Finance DepartmentAgriculture - Finance Department
Maintaining Database Completing files of Clients those request for Loans Providing necessary information about the loan Checking accounts of the customer in the
computer data base to giving current information. Computer Database Work
(Continue)(Continue)
Account Opening department How to fill the deposit SlipHow to fill the deposit Slip How to fill the different accounts FormHow to fill the different accounts Form How to fill the voucher for issuing of the How to fill the voucher for issuing of the
Cheque Book for the first time Cheque Book for the first time How to fill the requisition slip for the second How to fill the requisition slip for the second
time issuancetime issuance
(Continue) (Continue)
Account Opening department
Formalities for opening an account Formalities for opening an account How to issue the Cheque BookHow to issue the Cheque Book How to enter it in the register How to enter it in the register What are the procedures for the What are the procedures for the
issuing ATM cardissuing ATM card
Clearing DepartmentClearing Department
Responsibilities
1. Inward clearing
2. Outward clearing
(Continue)(Continue)
Clearing Department
Inward ClearingInward Clearing
Entering the cheques lodged for inward clearingEntering the cheques lodged for inward clearinge.g., cheque number, account holder name, cheque e.g., cheque number, account holder name, cheque
number, bank name and amount to be paidnumber, bank name and amount to be paid
(Continue)(Continue)
Clearing Department
Outward ClearingOutward Clearing
Same as entering cheque number account holder Same as entering cheque number account holder name amount and Bank namename amount and Bank name
REMITTANCE DEPARTMENT
Demand Draft.Demand Draft. Pay order.Pay order. Traveler's ChequeTraveler's Cheque
Structure of Finance DepartmentStructure of Finance Department
Departmental hierarchyDepartmental hierarchy
First LevelFirst LevelSenior Agricultural Credit Officer (SACO)Senior Agricultural Credit Officer (SACO)
OG1OG1Second LevelSecond Level
Agricultural Credit Officers (ACO’s)Agricultural Credit Officers (ACO’s)OG2OG2
Third LevelThird LevelField Credit OfficersField Credit Officers
(Commission based staff) (Commission based staff)
Functions of Finance Department
Accounting system of the organizationAccounting system of the organization
1.1. Fully Computer Based Accounting systemFully Computer Based Accounting system2.2. Reliable Electronic data is used in decision making.Reliable Electronic data is used in decision making.3.3. Generation of funds from Sales of Shares and Fixed Deposits from Generation of funds from Sales of Shares and Fixed Deposits from
Customers.Customers.4.4. High rate of Interest on Loan and Different Services good Sources High rate of Interest on Loan and Different Services good Sources
of fundsof funds5.5. Allocation of funds by providing Financial Services.Allocation of funds by providing Financial Services.6.6. Double Entry Book keeping SystemDouble Entry Book keeping System7.7. FoolproofFoolproof
Finance system of the Askari Bank
Based upon borrowing and lendingBased upon borrowing and lending
Use of electronic data in decision making
1.1. Fully Computer Based Accounting Fully Computer Based Accounting systemsystem
2.2. Reliable Electronic data is used in Reliable Electronic data is used in decision making.decision making.
Mobilization of funds
1.1. AdvertisementsAdvertisements
2.2. Sales Promotions ActivitiesSales Promotions Activities
Generation of funds
1.1.Sales of Shares Sales of Shares
2.2.Fixed Deposits from CustomersFixed Deposits from Customers
Sources of funds
1.1.Fixed Deposits from CustomerFixed Deposits from Customer
2.2.Sales of SharesSales of Shares
3.3.General Banking IncomeGeneral Banking Income
Allocation of funds
1.1.Lending to Financial InstitutionsLending to Financial Institutions
2.2.Lending people on interestLending people on interest
E.g. Loans, Car Finance, House E.g. Loans, Car Finance, House FinanceFinance
Critical Analysis
You are required to present all the financial You are required to present all the financial statements (balance sheet, profit and loss statements (balance sheet, profit and loss account, cash flow statement, etc).account, cash flow statement, etc).
a)a) Financial analysis Financial analysis• Ratio analysisRatio analysis• Horizontal analysisHorizontal analysis• Vertical analysisVertical analysis
b) b) Organization analysis in comparison with Organization analysis in comparison with its industry (or with its competitors)its industry (or with its competitors)
c)c) Future prospectus of the organization Future prospectus of the organizationYou are required to show complete You are required to show complete
calculations.calculations.
Financial AnalysisRatio AnalysisRatio Analysis
Uses of Ratio Analysis
•Make comparison between investments
•Analyze working capital
•Adjusting the component of working capital if needed
Users of Financial Ratios
•Managers•Stock Analyst•Credit Analyst
Balance Sheet 2008
Profit and Loss Account
Cash Flow Statement
Statement of Changes in Equity
Essential Financial Ratios for Essential Financial Ratios for 20082008
Current Ratio = Current Assets / Current LiabilitiesCurrent Ratio = Current Assets / Current Liabilities
= 19,984,449 / 17,774,976 = 19,984,449 / 17,774,976
= 1.12= 1.12
Current RatioCurrent Ratio
Working CapitalWorking Capital
Working Capital = Current Assets – Current Working Capital = Current Assets – Current Liabilities Liabilities
=19,984,449 - 17,774,976=19,984,449 - 17,774,976
=2,209,473=2,209,473
Times Interest EarnedTimes Interest Earned
Times Interest EarnedTimes Interest Earned = Earning Before Tax / = Earning Before Tax / Interest ExpInterest Exp
= 461,382 / 5,915,615= 461,382 / 5,915,615
= 0.077993919= 0.077993919
Debt RatioDebt Ratio
Debt RatioDebt Ratio = = Total Debt /Total AssetTotal Debt /Total Asset
= 18,186,248 / 206,191,138= 18,186,248 / 206,191,138
= 0.08820092= 0.08820092
Debt Equity RatioDebt Equity Ratio
Debt Equity Ratio = Total Debt / Total EquityDebt Equity Ratio = Total Debt / Total Equity
= 18,186,248 / 12,034,895= 18,186,248 / 12,034,895
= 1.51 = 1.51
Return on AssetsReturn on Assets
Return on Assets = Operating Income / Average Return on Assets = Operating Income / Average Total AssetsTotal Assets
= 2,531,035/ 206,191,138= 2,531,035/ 206,191,138
= 0.012275188= 0.012275188
Return on InvestmentReturn on Investment
Return on InvestmentReturn on Investment = Net Income / Total = Net Income / Total AssetsAssets
= 2,531,035/206,191,138= 2,531,035/206,191,138
= 0.012275188= 0.012275188
Horizontal and Vertical AnalysisHorizontal and Vertical Analysis
SWOT Analysis of the Askari SWOT Analysis of the Askari BankBank
Means
To analyze Strengths and weaknesses of the organization, which are part of the internal the environment
To analyze the threats and opportunities that are part of external environment.
StrengthsStrengths
Largest Financial Institution of PakistanLargest Financial Institution of Pakistan Strong Customer relationship managementStrong Customer relationship management Vast & Integrated Network High Market Share Share Highest share price Rs. 418 in month of January , Highest share price Rs. 418 in month of January ,
2009 2009 Military Sponsored EnterpriseMilitary Sponsored Enterprise
Weakness
Lack of Marketing PromotionsLack of Marketing Promotions Furniture and FixtureFurniture and Fixture White Elephant BranchesWhite Elephant Branches Low number of branchesLow number of branches Idle HR DepartmentIdle HR Department
Opportunities
Technological AdvancementTechnological Advancement Facility for Illiterate peopleFacility for Illiterate people Emphasize on Agriculture Sector of PakistanEmphasize on Agriculture Sector of Pakistan Closing White elephant branchesClosing White elephant branches
Threats
Economic EnvironmentEconomic Environment Political and Legal environmentPolitical and Legal environment Threats from Competitors e.g. MCBThreats from Competitors e.g. MCB
Conclusion
Financialy Strong BankFinancialy Strong Bank
Rational Decision making from top management Rational Decision making from top management at corporate levelat corporate level
Attraction for DepositorsAttraction for Depositors
Presentation of ethics from staff of bankPresentation of ethics from staff of bank
Creativity, Innovative and reliableCreativity, Innovative and reliable
Recommendations
High trained employeesHigh trained employees
Must create friendly environment with customersMust create friendly environment with customers
Marketing promotions are necessaryMarketing promotions are necessary
Should deal in foreign currencyShould deal in foreign currency
Should analytically analyze while issuing loanShould analytically analyze while issuing loan
Should increase the financing activitesShould increase the financing activites
Security system must be updatedSecurity system must be updated
Increase number of employees Increase number of employees
Thank YouThank You