CHAPTER 1

INTRODUCTION

1.1 Introduction to the report

The internship report is compiled and submitted in the accomplishment of an

academic requirement for the degree of Bachelors' in Business Administration to be

rewarded by COMSATS Institute of Information Technology, Abbottabad.

The core objective of this report is to present a detailed insight of the internship,

carried out in the respective organization. I will be sharing my understanding and

experience being a Marketing student and the findings and learning that took place

during the six week period.

The report broadly covers the Marketing Strategies and practices being followed in

Askari Bank Limited and services and products being offered by the Islamic banking.

1.2 Purpose of the study

Banks plays a vital and very significant role in the economic life of a country, that's

why considered as the lifeblood of the modern economy. In this era, no one can

disagree with the value of banking in economy. They assist and advance trade and

provide a diversity of services that can't be imagined without banks. AKBL works

round the clock to deliver services that are matchless in the region.

The main apparent purpose of this study is to make students familiar of the marketing

practices being followed in different organization is Pakistan and to provide them

with the opportunity to do practical work in the relevant departments by applying the

required knowledge in real scenarios. It helps the students to grab the opportunity of

developing attitudes conducive to effective interpersonal relationships.

Another important and key feature of this practice is that the internee is rotated in

nearly all the departments within the organization. It presents a glimpse of every

department and its working procedures, as the time was limited for the duration of

internship to learn and study the bank in detail. It also offers students the chance to

analyze experiment and evaluate their interest in a particular career before enduring

commitments are made.

1

1.3 Objectives of the study

To explore marketing practices and gather and interpret appropriate

information in a productive way

To identify and explain various functions of the bank

To underline the products and facilities offered by AKIBB to its customers

To analyze the existing practices in the bank and find out new opportunities

through different techniques like SWOT

To get exposure and to develop the interpersonal communication skills

To apply the knowledge in the practical field

1.4 Background of study

These days, no one can contradict with the banking importance and is considered as

the lifeblood of modern economy. They accelerate and facilitate trade and commerce

providing range of services that is not possible without banks.

I have chosen the Askari Islamic bank Abbottabad for my internship because since

1991 Askari Bank has played an essential role in the development of Pakistan. Like

other multinational banks, it has followed a customer-oriented approach, in order to

provide quality products according to needs of the customers and stands as a role

model for other banks.

1.5 Research methodology

The methodology I have adopted relies on both primary and secondary data.

1.5.1 Sources of primary data

Formal discussions with Management of the Bank

Personal desk work and observations

Oral interviews of respective staff

1.5.2 Sources of secondary data

Annual reports

Manuals

Various relevant documents studies

Official bank Website

Previous internship reports

1.6 Limitations

For a corporate level organization, like Askari Bank Limited, where the operation

span is too wide, six weeks time is very limited to observe and research completely

the specialized and sensitive institutions. It does not let is to fully analyze and

understand the entire functionality of the bank, also the privacy policy limits access to

the organizational data and information that is termed as confidential. Because of the

bank tight and busy schedule and of the required staff complete information could not

be collected easily. During the study, I tried to include only the relevant material. This

study was conducted according to the objectives of the study.

1.7 Schedule of work

In the first and second week I worked in the account opening department observing

mainly the process for opening the account. I also examined the requirements

necessary for opening account and how the information is collected and analyzed.

During third and fourth week, I became aware of how to deposit and withdraw cash

from accounts and how mainly the cheques are written down. Also I worked in the

banking software, filling up KYC (Know Your Customer) forms containing

information of the account holder. Entry of school fees in banking system keeping

records of the transactions. In the last two weeks I worked on the completion of the

account opening forms of the cadets from Pakistan Military Academy. Checking of

the necessary stamps and signatures and completing the documents was also part of

the last two weeks task.

CHAPTER 2

INTRODUCTION TO BANK

2.1 Evolution of banking in Pakistan

On August 14 1947, the partition of the sub-continent came into reality and a Muslim

country namely Pakistan came into being. At this crucial time, country was facing a

number of problems including the shortage of financial institutions.

At the time of independence, Pakistan was very rich in producing various crops and

other agriculture products. There were few industries but working in a bad form but as

far as the commercial banking facilities are concerned, they were fairly well.

For a new country like Pakistan, having limited resources, it was not easy to

immediately run a banking system of its own. Therefore in accordance with the

provision of Indian Independence Act 1947, a specialist committee was selected to

study the issue.

The committee recommended that Reserve Bank of India should carry on functioning

in Pakistan until 30th September, 1948 to settle down the problem of time and demand

liability, homage, currencies, exchange etc between Pakistan and India. It was also

decided that Pakistan would capture the supervision of exchange control and public

debt from Reserve Bank on April 1 1948, and that Indian notes would be maintained

as a the legal tender in Pakistan till September 30 the same year. By June 30 1948,

number of scheduled banks’ offices in Pakistan turned down from 487 to only 195

because of the transferring of assets to India after partition by Hindus.

At that time there were 19 foreign banks having category of small branch offices and

only 2 Pakistani institutions, Australasia Bank and Habib Bank. To rebuild the

confidence of the people in these banks, Government then revealed the banking

companies’ ordinance, 1947.

Pakistan was further pushed into problem when the Imperial Bank of India closed

down most of its offices in Pakistan and refused to accept the token amount of

Government of Pakistan securities. Such conditions called for the control and

management of banking and currencies in Pakistan.

Government of Pakistan established the State Bank of Pakistan on 1 st July, 1948, after

the order was promulgated on May 12, 1948. In order to make the situation

controlled, SBP addressed itself with the equally urgent task of creating and

developing the banking system of the country. To achieve this goal, it provided every

help and encouragement to Habib Bank to expand its network of branches and also

recommended Government for the establishment of a new bank, which could work as

an agent of SBP in areas where its branches are not present. As a result, National

Bank of Pakistan established in 1940 and by 1952 it became strong enough to take

over the agency functions from the Imperial Bank of India. In order to develop sound

banking, the Banking Company (control) Act was propagated in 1949, authorizing the

State Bank to manage the functions of banking companies in Pakistan. Addition to

this, SBP limited the opening of fresh branches by the foreign banks in big cities or in

coastal towns from where trade was being done with foreign countries, while

Pakistani banks were encouraged to open possibly as many branches within the

country.

2.2 Historical Background

Askari Bank Limited in Pakistan was incorporated as a public limited company on

October 9, 1991. It became operational in April 1992 and has since extended into a

nation-wide existence of 98 branches, support by the network of online ATMs. The

bank is listed on the Lahore, Karachi and Islamabad Stock Exchange. While capturing

the major market share amongst new banks, AKBL has provided superior value to its

shareholders. Its share price stayed roughly 12% higher than the average share price

of other banks during the last four years.

AKBL is the bank having its Operational Head Office in the twin cities that are

Rawalpindi & Islamabad, which have comparatively limited options as compared to

Lahore and Karachi. This has created its own disputes and opportunities, and required

to develop an apparent looking strategy in the area of marketing and human recourse.

Since commencement, the bank has determined on growth all the way through

improving service quality, technology and HR investment, exploiting its widespread

branch network including Islamic and Agricultural banking.

Corporate Social Responsibility is a fundamental part of the system the bank does

business. In order to accomplish CSR objectives, AKBL attempts to support public

concern by encouraging community growth and expansion through sponsoring

education, environment and sports, social service events and contributing in socio-

cultural activities.

2.2.1 Vision

“To be the bank of first choice in the region”

2.2.2 Mission

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

conveying quality service using innovative technology and efficient human resource

management in a modern and progressive organizational traditions of meritocracy,

upholding high ethical and professional principles, while providing improved and

superior value to all of our stakeholders contributing to society

2.2.3 Core values

Commitment- Passionate about customers’ success and delighting them with

quality of our service

Integrity- A unique investment, proving outstanding performance, return and

value

Fairness- Exemplary compliance, governess and business ethics

Teamwork- caring for our people and helping them in growth

Services- Dedication towards societal development and enhancement in the

quality of life

2.2.4 Corporate information

Lt. Gen Muhammad Mustafa Khan, HI (M) (Retd) Chairman - Board of

Directors

Syed Majeedullah Husaini - President & CEO

Lt Gen Naeem Khalid Lodhi, HI (M) (Retd) – Director

Lt Gen Muhammad Haroon Aslam, HI (M),S Bt (Retd) – Director

Mr. Qaiser Javed – Director

Dr. Nadeem Inayat – Director

Mr. Manzoor Ahmed (NIT) – Director

Mr. Asif Reza Sana – Director

Mr. Zaffar Ahmad Khan – Director

Mr. M. A. Ghazali Marghoob - Company Secretary

2.3 Askari Islamic Banking Services

Islamic Banking was initiated under the brand 'Askari Islamic Banking', by opening 6

committed branches of Islamic Banking in key cities in the country. Askari Islamic

Banking unlocks the doors for Halal banking solutions. The goal is to build a well-

organized banking structure, supportive to economic integrity and wellbeing of

society associated with Shariah standards. Further development is intended with

enhanced capabilities for presenting products in compliance to the Shariah ideology.

An inclusive range of Islamic Banking products and services is being put forward in

the following areas, to meet the customer's demand of Shariah compliant banking.

It includes, Islamic

Corporate Banking

Investment Banking

Trade Finance

General Banking

Consumer Banking

Islamic Banking products have been supported and approved by the Shariah Advisor

of the bank. As per Shariah necessities, products and funds of Islamic Banking are

handled separately from the Conventional Banking side. All finances and resources

are attained, invested and shared in Halal approaches of investments, under the

management and supervision of Shariah Advisor.

2.3.1 Vision

“Establish Islamic banking as banking of first to facilitate implementation of an

equitable economic system, providing a strong foundation for establishing a fair and

just society for mankind”.

2.3.2 Mission

To be an Islamic banking, that offers a one-stop platform for innovative and value-

added products and services to the customers within the boundaries of Shariah, while

optimizing and enhancing the stakeholders’ value through an organizational culture

based on learning, equality, respect for individual enterprises.

2.4 Major Modes of Islamic Banking

Murabaha

Murabaha actually means a sale on mutually settled profit. Technically, it is a sales

agreement in which a seller declares his cost and profit. Both the parties negotiate on

the profit margin or rate on the cost. Islamic banks now have been adopting this as a

mode of financing.

Ijarah

Ijarah is a type of leasing in which a property is rent or leased by the leaser (seller) to

the lessee (buyer) in a manner that at the end of the agreed lease time, the lessee turns

out to be the owner of the property by acquiring it from the leaser during the lease

period or at the end of it at an approved sale price. In other terms, Ijarah or leasing is

the transfer of authorized and legal right for a concern that is rent in the case of

engaging of assets and wages in case of hiring people.

Musharakah

Musharakah means a relationship that is established under an agreement between the

parties by their mutual approval on the distribution of profits and losses in the shared

business. It is a contract in which Islamic bank makes available the funds, that are

merged with the funds of business enterprises. The profit is circulated amongst

associates in pre-agreed ratios, where the loss is to be accepted by every partner, fairly

and strictly, in the percentage to their individual capital contributions.

2.5 Introduction to AKIBB Abbottabad

To provide the banking facility to people of Abbottabad Askari Islamic banking

branch Abbottabad was established in 2008 supply bazaar Abbottabad. Mr. Syed

Amjad Bokhari is the manager of branch. AKIBB Abbottabad branch started its

operations smoothly and profitable and with the

passage of time, management improved its

efficiency and reputation. The branch is

accessible to all remote villages and as well as

the posh colonies of Abbottabad. The structure

of AKIBB consists of a branch manager,

remittances, clearing and verification, bills

department and cash department.

(Shakeel Gohar (2010), employee Askari

Islamic)

2.5.1 Departments

Account opening department

The department is responsible for the opening and closing of bank accounts. In the

concern of AKIBB, opening and enduring to retain any account, the account Holder

or the investor would be clear by the terms and conditions mentioned on the form of

account opening. The diverse choices being offered in this regard are

Current Account

Saving/ PLS Account

Basic Banking Account

1. Current Account

Current account is the most regular account that is more preferred amongst business

concerns. There is no constraint or limit on the amount of withdrawal. Current

account facilitates the client to carry out cash transactions in a more competent

manner.

Features:

Current Accounts can be opened in with the minimum figure of Rs.1000/-

No Profit

No deduction of Zakat

Account close charges Rs.150

Online Charges Rs.100

2. Saving / PLS Account

In Pakistan (PLS) saving account was commenced in January 1982. Individuals

wishing to invest their cash to get profit, continue to use this account.

Features

The minimum balance required to open the account is Rs.1000.

The profit on consumer savings will be paid half yearly.

Zakat Deduction

10%withholding tax on profit

No Service Charges for closing the account

Service Charges for keeping lowest Balance is Rs.50

Online Charges Rs.150

　

3. Basic Banking Account

Basic Banking Account is opened in AKIBB with comparatively small amount

deposited in this account as compared to other accounts.

Features:

lowest amount to be deposited is Rs. 1000

First two transactions are free of cost

If balance is zero even after six months, the bank can close the Account.

2.5.2 Askari Islamic Deposit Products

Askari Islamic Bank continually and consistently strives to expand new Islamic

Banking Deposit Products to accommodate the growing requirement and needs of its

customers. Deposit Products include

AHSAN: Askari Halal Saving and Notice Account 

AHSAN Munafa: Monthly profit payment on every day product base

AHIA: Askari Halal Investment Accounts- investment certificates with profit

payment options monthly, quarterly, semi annually and at maturity

AKIDA: Askari Khas Islamic Deposit Account

AITQAD: Askari Islamic Term Quality Deposit

AHCAMM: Askari Halal Certificates of Aasaan Monthly Mudarabah

2.5.3 Askari Islamic Consumer Products

Askari Ijarah Bis Sayarah for financing of new or used cars

Askari Home Musharakah for buying, building and renovating home

Investment certificates

2.6 Financial Information

AKBL's diversified infrastructure requires effective management, allocation of vast

financial resources along with long term strategic planning and annual budgeting.

Finance department controls the procedures designed to guarantee complete and

accurate accounting for financial operations and to limit the potential exposure to loss

of assets. Measures taken include physical controls, review by management,

segregation of duties and internal and external audit to the extent necessary.

AKBL has provided good worth to its shareholders. Its share price stayed

approximately 12% higher than the other banks’ average share price during the last 4

years. Year 2005-2006 witnessed development in business activities; this had

dynamically impacted the Balance sheet and Profit & Loss account. As on December

31, 2006, the bank was having total assets of 11,053,230 Pak Rupees, with more than

600,000 banking customers.

The profit during 2006 was before taxation was 3,346,855 and after taxation it was

2,249,974 as compare to the 2005 it was 2,021.996.

In the last 2 years, the Bank had Rs. 9.2 billion of equity and total assets of Rs. 155.1

billion, having more than 800,000 banking customers, serviced by 3,754 employees.

2.7 PACRA Rating

Askari Bank has the following rating from the Pakistan Credit Rating Agency Limited

(PACRA)

Short Term A1+

Long Term AA  

Definitions by PACRA:

A1+: Obligations carried by the highest capacity for well-timed repayment.

AA: Indicates a very low expectation of credit risk. They specify very strong ability

for timely payment of financial dedication. This capacity is not considerably

defenseless to anticipated events.

2.8 CSR

At Askari Bank, Corporate Social Responsibility is an essential part of the mode it

does business, and is a crucial element of the bank strategy. As a responsible

corporate body, Askari bank always attempts to contribute to the culture and society

in which it functions and believes in generously giving back to the society by

capturing initiatives with the aim to offer the service that will help customers in

meeting their financial targets. In order to carry out the banks’ CSR objectives, it

attempts to encourage public interest and concern by promoting community growth

and development through the sponsoring of a large number of diverse events. Askari

Bank takes part in a variety of CSR initiatives that includes conferences/conventions,

educational proceedings musical evenings, sports events like squash, golf and other

international sports events.

Being a society conscious organization, Askari Bank actively donates to the less

fortune through different charity works for the wellbeing of the society. The bank

believes in the cause of a better environment and charitably sponsor events involving

tree plantations, flower fairs and festivals, spring social events and galas as well as

other development scheme for greener and clean Pakistan. Askari Bank also

habitually contributes to non-government associations that work on community

development and welfare and interest of the general public.

CHAPTER 3

FUNCTIONS OF THE MARKETING DEPARTMENT

3.1 Introduction

Marketing is social and managerial processes by which groups and individuals attain

what they want and need by producing and exchanging products and values with

others. The objective of every enterprise is to attract the customers, retain and grow

them. Enterprises first spots what creates value for each customer and then delivers

that value to him. Enterprises promoting relationships with customers develop a way

towards profitability. Increasing value for the customers by focusing and treating

them individually and differently will benefit the firm and this concept is at the heart

of CRM (customer relationship management).

"Satisfied customers are more likely to be loyal customers and loyal customers are

more likely to give the companies a larger share of their businesses".

3.2 Marketing Management at Askari Bank

The marketing strategies at Askari Bank are considerably in sync with the modern

Marketing strategies in the world today. Askari Bank is competing efficiently with its

competitors through the competent management.

The belief at Askari Bank is that

"The customer is the king".

The bank aspires to give innovative financial solutions to its customers, with the

protection that they are dealing with one of the well-built and strongest financial

institutions in the country.

3.3 Market Analysis

Askari Bank has stretched out into a nationwide presence having 98 branches,

including an Offshore Banking unit in Bahrain. A joint network of above 1,100 online

ATMs wrapping up all main cities in Pakistan supports the delivery channels for

customer service.

Branch manager and operational manger are partially involved in the marketing

efforts and get grant from head office to promote their promotional activities such as

social marketing, banner advertisement and public relations because there is no

separate marketing department in Abbottabad branch. When I see at the branch in

Abbottabad I see that the operational department follows the marketing activities,

supervised by the operational manager Mr. Shakeel Gohar. Every employee on its part

is responsible to meet the clients to convince them to open the account in the bank and

tell customers the details of different type of accounts and to apply the principle of

customer relationship management to attract the customers. There are following

functions performed by the bank’s marketing department

Focus on customers

Monitoring competition

Owning the brand

Finding and directing outside vendors

Creating innovative ideas

Communicating internally

Managing budget

Recognizing ROI

Setting, planning and executing the strategies

3.4 STP strategy

3.4.1 Segmentation strategy

Askari bank divides its market in geographical, demographic and Niche segments.

Niche segment of Askari bank belongs to Pakistan Army, and the volume of this

target market is too small as compared to the other markets. Because of the services

being provided by the bank, they are facing less competition.

In geographical segment the Askari bank splits its market, religion wise and in

different cities. As majority of residents of Pakistan are Muslims so it has started

offering both commercial and Islamic banking services for the target. Islamic banking

is being offered, free of interest rate.

In demographic segment it divides the market on the bases of different factors like

age, income, occupation, education and nationality.

Askari Bank offers numerous products for different target segments. In demographic

segment market is separated on the basis of age like students of 12-30 years and

retired people or pensioners of age ranges in 40-65 are offered with different kinds of

products. For students Askari Bank provides Askari special deposit account. With

respect to occupation, market is treated differently with several products like if

segmentation is based on agriculture then diverse kind of scheme is made available

that contains

Kissan Ever Green Finance

Kissan Tractor Finance

Kissan Aabpashi Finance

Kissan Livestock Development Finance

Kissan Farm Mechanization Finance

Kissan Transport Finance

3.4.2 Target marketing strategy

The focal point of marketing effort is people. The aim is to approach a subset of the

people who might be concerned in having the particular product that is the target

market. The target market of Askari bank is based on the objectives defined by the

organization that are desired to be achieved. Target market includes

All Army related institution

Kissan

Segmentation

Niche Market

Army

Geographic

Segmentation

Geographical unit

Religious

Demographic

Segmentation

Age

Income

Occupation

Education

Nationality

Customer having deposit

Financial invertors

Religious groups interested in Islamic Banking

Customers who desires to purchase vehicle

All agriculture associated communities

Customers desiring for loans

Schools, colleges and business industries

Consumers interested to acquire on lease

3.4.3 Positioning

In marketing, positioning means the practice by which marketers try to build an

identity or image of its product brand, or organization, in the minds of the target

market. It is the 'relative competitive contrast,' a product occupies in a market as

supposed by the target.

Askari Bank has well-built positioning in the intellect of their target customers due to

its products’ matchless attributes, characteristics, features and better-quality service.

Top administration always makes an effort to distinguish their products and services

using diverse promotional schemes to communicate and correspond with the audience

and to form strong identity.

AKBL new slogan reflects customer service philosophy and provide them 24/7

information through online system and call centers and listen to the customer

complaints providing them with the solutions regarding bank issues (e.g. account,

credit or debit card). A well-crafted and finely made business positioning approach

can be utilized as an instruction for reviewing the suitability of all marketing plans

and programs, especially for endorsement, advertising and public relation events. It

will make sure that business image is reliable to the targeted end users and aids to

construct an enduring, outstanding significance to sell and promote business products.

The positioning of Askari bank towards the customers is that it is one of the renowned

banks that provides convincing and dynamic environment to their customers

maintaining a unique image. For example Askari rupee traveler cheque is considered

a secure way to transfer the money from one particular place to a further location and

keeping strong identity in the customer’s mind that a product has some quality

attribute with security that creates superior value.

To create a well reputed positioning of the organization and its products and services,

AKBL uses different marketing strategies to clearly and effectively convey their

message to customers that includes advertisement through several media channels,

sale promotion, personal selling and publicity.

3.5 Marketing mix

Marketing mix consists of 4 P’s product, price, place and promotion. In context of the

marketing strategies followed by the bank, these 4 marketing mix tools will be

discussed separately.

3.6 Product

According to the firm’s objectives and goals defined, it selects the segment that fits

well with their mission of promoting their business to the audience interested in their

services and products.

Whenever any fresh product is initiated and launched by the Askari bank, scheduling

and planning and development process is executed from the of head quarter located in

Rawalpindi and then after making conclusions about the value added features

considered necessary to sell their products and services to increase the profitability,

the selected scheme is launched in all the branches of the bank throughout the

country. Before the launch or update of any new product or, the upper management

continuously observes the market needs and requests and plans the product that can

achieve the organizational goals and objectives.

New Product Development Process

The management is concerned with few stages when initiating any new product or

service

The foremost two stages, new product development strategy and idea

generation, provide a focal point for making new-product ideas and a base for

assessing them.

Screening and evaluation stage enables the top management to screen out the

idea that are feasible and fits with the financial resources and the organization

objectives.

The next three stages, business analysis, development and market testing, deal

with the analysis of the business and market needs and then development and

test marketing of the generated idea as a product.

Last stage is of the commercialization that includes how the newly developed

product is to be introduced in the market using different marketing tools and

strategies designed by the marketing department of the Askari bank from the

head quarter.

The product

must persuade the key financial standards of the bank

must be well-suited with environmental and cultural values

must match the company’s marketing makeup and objectives

should furthermore be well-matched with the production potential, satisfy the

legal necessities, and fit with company goals and objectives

Product management

Product management is an executive lifecycle task within a company, dealing with the

setting up of a product or products and its development and marketing at every stage

of product life cycle. Product management and product promotion are different yet

balancing and complementary efforts with the objectives of maximizing sales

revenues, profit margins and market share. The function of product management

wraps many actions from strategic to operational level and fluctuates based on

organizational structure. When a product reaches the maturity stage of the product life

cycle, the management tries to maintain this level as it provides the peak of sales and

returns. The branch manager of Askari Bank tries to manage the product by

continuous innovation according to the customer needs and provide their best to their

customers with a product environment to achieve their goals and objectives.

3.6.1Askari Islamic Consumer Products

Askari Ijarah Bis Siyarah for financing of new or used car

Askari Home Musharakah for buying, building and renovating home

Investment certificates

Askari Ijarah Bis Siyarah

Ijarah is a rental contract, under which the right, to use an asset, is transferred to the

user on pre-agreed provisions and conditions. It is a Shariah compliant approach of

finance, implemented by Askari Islamic Bank to meet the desires of car financing by

its respected customers.

Askari Islamic Banking deals in all sorts of new and locally assembled, as well as

imported cars. Terms and conditions being offered are elastic, with rapid processing

time. Moreover, in order to boost up the customers’ ease and convenience, the bank

offers family income assessment plan, where its esteemed clients can get benefit from

Ijarah Bis Siyarah facility for more than one vehicle.

In Ijarah, supposed added charges are taken by the Bank if caused by any delay in

rental payment(s) by the purchaser, that are exercised for “charity” intentions, rather

than adding into the profits and earnings of the bank, as done in case of conventional

lease. This impression of charging “penalty” is officially approved by the modern

Shariah scholars to permit the banks to shield themselves against the “habitual

defaulters”.

If the vehicle gets stolen or damaged in any mishap or calamity, contrasting from

conventional lease, Ijarah rentals or buying party will not be charged, and security

will be funded back in such case. Once the client productively pays off the whole

Ijarah payment, bank gives him/her the certainty to turn out to be the holder of the

vehicle, against the security deposited already with Askari Islamic Banking.

Salient features:

Timely processing

Facility for buying more than one vehicle

Facility of income valuation plan

Low security deposit

Competitive profit charges

No hidden charges

Basic Eligibility Criteria

A Pakistani National between 21- 60 years

Getting at least two times more than the bank’s monthly Car Ijarah rentals

Being in business for at least one year

Askari Home Musharakah

Askari Islamic Banking puts forward Shariah compliant home financing that

facilitates the purchasing, constructing, improving and transferring of the property

through Diminishing Musharakah. Bank offers a well-situated system to buy one’s

own home with the financing of 85% of property cost, up to Rs. 50 Million.

Working

Joint possession is formed in the assets between Bank & customers on the root

of the Musharakah Agreement.

The share of the Bank is divided into parts or units that are then given to the

client/consumer on rent.

Client assures to buy bank’s share over the term of transaction.

Client then purchases the units monthly and ultimately becomes the possessor

of the property.

Rental sum is adjusted in accordance with the bank’s share left behind in the

property.

Features and benefits

Shariah compliant

On time processing

Competing rentals

Highest financing limit: Up to Rs. 50 million

3 to 20 years as financing tenure

Eligibility criteria

A Pakistani National between 21 to 65 years.

Earning atleast twice more than bank monthly Ijarah rentals.

A self employed entity with atleast 3 years of business track verification.

Income authentication/documents mandatory.

Investment Certificates

ASKARI ISLAMIC INVESTMENT CERTIFICATES

Features Details

Product name Askari Islamic Investment Certificates (AIIC)

Product type Term Deposit Investment amount Rs.50, 000/- & above

Tenor One Year Last declared profit rate Rs 50,000 - 999,999 @ 8.04% per annumRs 1M - 99.9M @ 8.05% per annum

Period of profit rate announcement and distribution

Monthly   Periodicity of Profit Distribution 

 

Target customers  Individuals, Business projects, Government entities etc 

Unique Features   One year maturity with profit payments per month Profit rates declared on monthly basis Finances invested in Halal means under Shariah advisor’s

management Premature withdrawal decision available

Free Value Added Services Issuance of ATM or Visa debit card (only for individual account)

I-Net Banking service ( only for individual account) SMS alerts for cash withdrawal through ATM and I-Net Banking

transactions ( only for individual account) Online funds transfer Local payments Same day clearing and Inter-city clearing Outward cheque returned un paid in clearing Duplicate account statements

Askari Islamic Bank's Investment Certificates not just provides the additional security

on investment and monthly return to the customers and these are flexible and

negotiable and can be moved to some third party. Investment Certificates are able to

be issued for a phase of 3 months and profit is to be paid on monthly basis through

pre-printed coupons.

(www.askaribank.com.pk)

3.6.2 Askari Islamic Deposit Products

Askari Islamic banking continuously and consistently with time endeavors to build up

new Islamic Banking Deposit Products to provide according to the rising needs of its

customers. Deposit Products includes the following list

AHSAN: ‘Askari Halal Saving and Notice Account’, with a monthly profit

payment

AHSAN Munafa: Monthly profit payment on day by day product basis

AHIA: ‘Askari Halal Investment Accounts’- investment certificates with

profit payment options monthly, quarterly, six monthly and at maturity.

AKIDA: Askari Khas Islamic Deposit Account

AITQAD: Askari Islamic Term Quality Deposit

Product Name Type Tenors Profit Calculation Target market

(AHSAN) Saving NA Average MonthlyBusiness Enterprises and Individuals

Askari Halal Saving Account

Saving NAProfit payable on monthly balance from 6th till last date of each month

Business Enterprises and Individuals

Askari Islamic Current Account

Current NA NA Business Enterprises

Askari Basis Banking Account

Current NA NALow income individuals

(AIIC) Term3 month-5 years

MonthlyIndividuals, business enterprises, Govt. entities

(AKIDA) Term3 month-5 years

MonthlyIndividuals, business enterprises, Govt. entities

(AITQAD) Term 3-7 years MonthlyPensions Funds and Individuals

(AHCAMM) Term1 months-No limit

Average Monthly Individuals

Special Musharakah Certificate

Term 6 months Average Monthly Large size deposits

AHCAMM: Askari Halal Certificates of Aasaan Monthly Mudarabah

3.6.3 Services

Internet Banking Services

In pursuance of the mission to present the most up to date service to the customers,

the bank offers banking through internet.

Important Features

Balance inquiry

Transferring of funds

Password modification

Payment of school fee

1. Electronic Bill Payment Services

It has been the banks’ effort at all times to set up the products and services custom-

made according to the requirements of its valued customers. Now customers can pay

their utility bills all the way through:

ASKCARD (Askari Debit Card),

Nationwide Askari bank's ATMs

Internet banking facility and call center

2. Cash Management Services

Askari Cash Management Services aims to competently direct the accounts receivable

collection of middle and large corporate bodies. While this service lends a hand to the

corporate beings to develop their liquidity, due to the banks’ well broadened and

extended branch system and network.

The service at first and foremost aspires at giving clearing, assortment and

cash/transfer ability to corporate, under one asset focus, that will handle the course of

action through the extensions and gives enough exposure to the business clients, on a

variety of features of their accounts receivable portfolio, consistently.

3.7 Price

Pricing is another P amongst the marketing mix including product, promotion and

place. Price is the single income generating constituent among the 4Ps, the rest being

the expanse focused.

Askari bank applies diverse pricing strategies for dissimilar newly developed products

and services to attain the organization monetary goals. Before opting for an

appropriate price for a product, the marketer reviews the objectives and discuses with

the top management. The more apparent the company's objectives are, the easier it

will be to set price.

3.7.1 Objectives

Listed below are the potential and achievable pricing objectives

Survival in the competitive environment

Maximum present profit

Utmost market share

Product quality leadership

As the management set its marketing objectives to position the product as an

innovative one, then the prices for these products and services are set according to

their initial costs and profit margins.

Following steps are being followed in the head quarter of Askari Bank that ultimately

guides Islamic banking to promote their products with such prices.

Choosing the pricing goals

Shaping the consumers' demand

Approximating costs

Analyzing opponents’ costs, prices and offers

Selecting a pricing technique

Deciding on the final price

3.7.2 Nature based pricing

AKBL see the nature of the product and charge price accordingly. For an innovative

and updated product involving legalities, it charges higher margin before launching

the new product. The top management observes and analyze the demands of products

and estimate its costs by analyzing the competition i.e. competitors costs, prices and

offers. After noticing the competition, the bank then chooses a pricing strategy

according to company objectives. Askari Islamic bank has different products and

services; each of which is based on Shariah compliance, capturing its own target

market and fulfilling expectations of the customers. Price is the only key which

generates the revenues for the bank to achieve its financial objectives.

3.7.3 Profit rates for different products

Askari Halal US Dollar Savings Account (profit rates % per ann.)

Average MonthlyBalance (USD)

April 2014 March 2014

1 - 999,999,999 0.20% 0.24%

Askari Halal Savings and Notice Account (AHSAN)

Monthly Profit Rates (% per annum)

Average Monthly April 2014

Balance (PKR)March 2014

Upto 99,999 4.32% 4.42%

100,000 – 999,999 4.32% 4.42%

1,000,000 – 9,999,999 4.55% 4.65%

10,000,000 – 49,999,999 4.78% 4.88%

50,000,000 – 99,999,999 4.78% 4.88%

100,000,000 – 249,999,999 - -

Askari Halal Savings Account (AHS)

Profit rates (% per annum)

Average MonthlyBalance (PKR)

April 2014 March 2014

0.18% 0.19%

Askari Halal Savings and Notice Account (AHSAN) Munafa

Average MonthlyBalance (PKR)

April 2014 March 2014

Upto 9,999,999 7.00% 7.00%

10,000,000 – 49,999,999 7.28% 7.44%

50,000,000 – 99,999,999 8.10% 8.10%

100,000,000 – 249,999,999 8.95% 8.95%

250,000,000 – 499,999,999 8.19% -

500,000,000 & above 9.00% 9.00%

(Askari Islamic Monthly Profit Rate Circular 2014)

3.8 Place (Distribution)

An organization that is concerned with the practice of making a product or service

accessible for use or consumption by an end user or a business customer, applies an

efficient and workable distribution strategy.

AKBL has 150 branches through which it offers services to its clients. The

distribution channels are its employees who deal with the customers directly in any

situation. Whenever a new or updated product is launched by mutual consensus of

Askari bank top management, to make the product available to the end user it is

distributed to its all branches. Askari bank has around 150 branches from where

customers can avail their desired product or service with access to the related

information. A mutual network of larger than 1,100 online ATMs wraps up all the

chief cities in Pakistan supporting the delivery channels for customer service.

3.8.1 Selective distribution

Askari Islamic Bank uses selective distribution strategy having fewer locations

selected for their services. It has only a few outlets in the geographical areas to

provide the facilities as there is only one branch of Askari Islamic Bank in

Abbottabad in Supply area that is near to the main Askari branch as well.

Advantages

Separate identity

Better market exposure than exclusive distribution

More control with less cost than intensive type

Improve product’s likeness & tolerate high markups

Supports loyalty and enhance forecasting

Disadvantages

May not cover the market sufficiently

Complicated to pick that can go with the requirements

3.8.2 Branches all over Pakistan

Islamic branches north region (KPK and AJ&K)

Abbottabad

Chillas

Islamabad

Kohat

Peshawar

Rawalpindi

Sihala

Wah Cantt

Islamic branches south region (Baluchistan and Sindh)

Karachi

Quetta

Hyderabad

Islamic branches central region

(Punjab)

Faisalabad

Gujranwala

Gujrat

Jalal Pur Jattan

Lahore

Multan

Sialkot

3.9 Promotion

Promotion is a type of business communication that makes use of diverse means to

get in touch with the target audience through a definite message in order to realize and

manage specific executive objectives. More or less all the organizations, whether

working for profit or of non-profit class, must be involved in some shape of

promotion.

 Under the impression of Integrated Marketing Communication, AKBL attempts to

grow a united promotional tactic connecting with the combination of numerous

various types of promotional tools.  The objective of the promotion strategy is to

attract the clients to buy the bank’s product and, in nearly all cases, to retain and keep

a loyal and long-term customer. 

The purpose and objectives for marketing promotions of AKBL may include

Building responsiveness and awareness

Creating interest

Providing information

Encouraging the demand

Strengthening the brand

Advertising

3.9.1 Promotional strategies

3.9.1.1 Advertising

The main source used by AKBL is advertisement that engages non-personal,

typically paid promotions mostly by means of mass media to convey the marketer’s

message to the target.  Traditionally advertising has caught up as a one-way

communication process with small feedback opportunity for customers experiencing

the advertisement. The introduction and advancement of technology, in particular,

internet has augmented the alternatives that allow the final users to respond with the

quick feedback.

Advertising in News Papers and

Television is used as a marketing tool

by Askari Bank. However it is often

used when a new product is

introduced or if any changes in the

existing products or in the rates is done.

3.9.1.2 Bill Boards

Another source used by Askari bank to convey message is billboard placing provided

with the information needed to be communicated. In the main urban areas near the

school/colleges, airport and high traffic spots, the bill boards are placed to convey

message.

3.9.1.3 Broachers

The Bank publishes various brochures for the general guidance of the customers.

These include the Schedule of Bank Charges, information of the major products,

VISA Card Information, and Savings & Term Deposit Information etc

3.9.1.4 Personal Selling

Personal selling is also a norm at the Bank. The branch

has well learned sales executives and officials capable of

communicating their product message well with the

clients. Personal selling is used both for attracting

individuals and corporate clients.

3.9.1.5 Internet

Askari bank widely use internet as a promotional tool to convey the message to the

target audience. All the relevant information related to products and services and the

organization as a whole is available on their official website that is updated frequently

with the new data and information.

3.9.1.6 Social marketing

AKBL has made charitable contribution and donation in the area of sports, traditions

and society, and scarcity, woman & child wellbeing & medical science, human

development and maturity and technical research. AKBL sponsored different

international sports tournaments like squash and golf including many others, in which

professionals from all over the world participated. The bank has also contributed

towards the awareness programs for AIDS, water conservation and blindness and has

promoted the cause on international forum by co-sponsoring the first interactive

encyclopedia of Pakistan.

3.9.1.7 Public Relations

The most popular tool used by the banker and manger

to increase their deposit is to create awareness among

the customers to attract new ones and to draw long

term profitable relationships to retain the existing

customers. Keep long term relationships helps in

spreading a positive word of mouth and a positive

positioning of the bank in the consumers’ minds.

3.9.1.8 Publicity

This style of promotion uses third-party basis, and mainly the news media, to

illustrate a constructive cite of the company or product without straight payment to

the information publisher like if media covers any tournament that is sponsored by

AKBL is actually the publicity of the bank.

3.9.2 Customer Service

Customer Service is actually facilitating the customers before and throughout a

product/service purchase. Customer service is a progression of activities considered to

increase the level of customer satisfaction and pleasure – that is, the reaction that a

product or service has met the customer perceptions and expectations.

3.9.2.1 Process of developing relations with customers

Customer service department is concerned in developing a sequence of dealings and

actions intended to advance the intensity of customer liking to formulate long term

and profitable relations with the customers. The relation is based on the

product/service quality and features provided by the bank to their customers. Askari

bank follows the principle of customer relationship management that includes some

considerations like

1. Keeping regular communication with customers

2. Responding rapidly to their needs

3. Satisfaction on product as well as usage aspects

4. Avoiding ambiguities in product information

5. Making products available

6. Delivering advices

7. Giving special attention

8. Protecting customers rights

9. Being visible and available all the time for customer service

10. Providing good and dynamic environment

11. Considering customers a part of the organization and treating accordingly

3.9.2.2 Relation dependence

The relationship between the organization and customer depends on the satisfaction

level by the organization products and services. As the demand of the product or

service comes from the customer side so if the customers’ expectation exceeds the

performance of the product then it will be resulting in the repeat purchases and

customers’ loyalty building otherwise customer will be switched to any other feasible

substitute.

3.9.2.3 Techniques of retaining the customers

it is a fact that has been experienced everywhere that if costs five times more to

acquire a customer then to retain a customer as customer is the king and organizations

cannot survive ignoring customers.

Besides making efforts to attract new customers, marketing department of Askari

bank as a whole is striving to retain and build long term profitable relationship with

its existing clients and also trying to attract new customers as well using the existing

ones by spreading positive word of mouth. The key towards successful customer

retention is providing the customers with superior customer value and satisfaction.

Because without this element in the changing demographics, slow-growth economy,

more difficult competitors, and congestion in many industries customers are being lost

with a respective decrease in the market share.

Askari Bank satisfies and fulfills their customers’ needs and solves their problems by

actually understanding their requirements and expectations from the products. The

bank has provided the users with a toll free number where they can call and register

their complaint online or can get any information needed ranging from activating their

debit or credit cards to account problems etc.

3.9.2.4 Techniques of attracting new customers

To attract a new customer is actually to communicate the message their product or

service is delivering towards the target market. It is always important for every

company to acquire potential customers since the main focus of every organization is

to make maximum profits each month.

The strategy used by AKBL for acquiring new customers by providing their

organizations’ services information and detail is via advertising that is one of the most

widely used method to constantly keeping themselves alive in the consumers’ minds

and making them aware. The bank also uses different promotional techniques as

mentioned in the promotion part, to convey their message clearly and effectively so

that no ambiguity can be left.

By getting the feedback and entertaining the complaints by the users, the bank alters

and introduces new products to attract the new customers according to their needs and

expectations.

Now the banking trends has been changed a lot that enables Askari Islamic Bank to

create new dynamic and work-friendly environment that convinces the customers to

use their services. It also is beneficial for the people who want to get hired in the

bank. Askari bank has captured a wide target market ranging within all the sectors

they have targeted in their objectives due to a good working environment and

increasingly taking edge over competitors like National bank of Pakistan and others.

AKBL aims to expand their business worldwide with a strong image in the mind of

consumers, ultimately profiting the organization in monetary terms as well as in the

reputation.

CHAPTER 4

SWOT ANALYSIS

4.1 SWOT Analysis of AKIBB

SWOT is known for Strengths, Weaknesses, Opportunities and Threats. It is a useful

tool, providing support for analysis of organization. It is a familiar approach to

compose considerations in terms of internal and external settings of the organization

and to devise policies by examining its internally identified strengths and weaknesses,

and externally known opportunities and threats.

4.1.1 STRENGTHS

Qualified and Experienced Staff

During the research, it has been observed that the staff/personnel of the organization

is qualified and experienced. Many of the bank officials have got advanced

knowledge and experience in the fields of management, banking law and practice.

Good PR with Customers

The relationship of the manager and other staff in the organization is really good with

the customers, which results in a strong goodwill and loyalty of the customers towards

the organization.

Job Satisfaction at All Levels

Job satisfaction is one of the important factors for the employees to be motivated. The

people in the organization under consideration were found highly satisfied with their

jobs.

Quarterly Performance Appraisal

Performance appraisal is the way by which one can evaluate the employee’s

performance; it results in the enhancement of the organization’s overall performance.

The performance appraisal is done on quarterly basis in this organization, which

results in better performance.

Friendly environment

The environment of the organization is very friendly. People over here are very

cooperative, not only with the customers but among themselves as well.

Competent senior management

The senior management in the organization is very much competent and experienced;

successfully handling different internal and external affairs. The managers are fully

aware of the recent managerial concepts and are able to deal with any type of

scenario.

Computerization

The main strength of Askari Bank is that all of its branches are fully computerized

having latest software available to keep the records of their customers account and

other important information up-to-date. It reduces manual work and provides good

customer services.

Largest Private Bank

AKBL is one of the leading private banks with deposit support of around Rs.167.68

billion/- showing steady growth over the time 1999 and with many online branches in

major cities of Pakistan.

Competent Staff

Strength of Askari Islamic Bank is that it has a well qualified and capable staff of

performing the task because of their expertise and training in the field.

Customer’s Feedback

Customers are allowed to give suggestions regarding banking services. If there is any

complaint by the customer, the bank authorities consider the reasons for complaint.

Complaint monitoring system is excellent at Askari Islamic Bank that shows bank

values more to its customers.

Information System

The Bank has invested heavily in technology resources, which has allowed bank to

develop one of the most comprehensive and advanced system that helped Askari bank

to achieve an “online” status via real time facilities and features available through

nationwide network. With the team of highly qualified professionals, bank is able to

use the system resources to provide customers with complete account of their

transaction on daily basis.

4.1.2 WEAKNESSES

No HR department at branch level

Human resource department is one of the foremost requirements of any organization

of this age. The organization under consideration, though contain a HR division at

headquarter but there are no sub divisions at the provincial or branch level. So when

different problems related to HR are raised, they are left unaddressed.

Centralized decision making

The decision making in the organization is completely centralized which results in the

loss of confidence, motivation and sense of empowerment for the employees.

Lengthy recruitment process

The recruitment process is quite lengthy which can discourage the new comers. So,

there is a need to shorten the whole process.

Lack of marketing efforts

The bank does not support its corporate identity and image, services etc in a

competitive way through advertising to create understanding among the potential

customers. Hence it lacks in the necessary marketing effort.

Traditional ways

The bank still has traditional ways of operations in this advance technological

environment. For example account opening registers, manual checking of vouchers.

Although the bank has computerized accounting systems, but still bankers make

entries in accounting registers manually.

Individual differences

In Askari Islamic Bank the individual difference has strong impact on the

organization’s performance due to wrong criteria of selection of employees. So with

the passage of time individual differences started increasing which has demoralized

the goodwill of the organization.

Media

The advertising media used by the bank for publicity include mostly newspapers and

journals. The most powerful media to be used is TV through which people around the

world can get instant information about new products and developments in AKBL.

Equipments

There is very less availability of sophisticated and updated equipments in branches

and lengthy credit processing and documentation procedure.

4.1.3 OPPORTUNITIES

More qualified people in the market

Due to the increased interest of people in business field, many business institutions

are established producing a fine lot of qualified and competent business professionals.

So, the organization under consideration can hire more qualified people from market.

Effective utilization of internal human resources

People working in the organization are more aware of the norms and values so these

employees can be utilized within the organization whenever required.

Training can enhance the employee’s skills

Training and development is one of the important functions of human resource

management. If the staff of the organization are properly trained and developed they

will add to the value of the organization.

Feedback

Customer feedback on a range of diverse products and accounts has in actual fact

enhanced the bank performance and encouraged the environment for added future

policies.

Foreign remittance

Foreign remittance is an additional area as existing worldwide control system over the

transfer of money through unlawful channels has facilitated the spot for the banks to

have a proper check and balance on the functionality.

Hiring graduates

There is a huge set of MBA graduates who can be employed to realize

professionalism on its organizational ethnicity and culture.

Increasing product range

Increase the product range to fulfill customer requirements and ATM network, AKBL

can expand its 24 hours cash facilities to other cities of the country in order to meet

growing market demand.

Foreign operations

Due to competent and well-informed management group, AKBL can in addition

progress well and expend its foreign functions successfully.

Leasing business

Increasing need and potential of leasing in Pakistan provide AKBL a possibility to

take advantage of its proficiencies and aptitude in leasing business as well.

4.1.4 THREATS

Increase in Competition

The increasing competition at local, national and multinational level also lower down

the profitability of the bank and compelling the bank to use a large amount of funds to

meet out competition. Meezan bank and Dubai Islamic are major competitors for

Askari Islamic bank.

Good job opportunities outside

The other organizations of similar nature are offering more salaries and benefit

packages to their employees. So, there is a threat to the organization that their current

employees may leave it for better opportunities and salaries.

Uncertainty about future change

An uncertainty about the future changes has been noticed among the employees of the

organization, it results in dissatisfaction and de-motivation of the employees, which is

a serious threat to the organization.

Better HR techniques

Other organizations of similar nature are using better and recent HR techniques, so

they have got an edge to facilitate their employees whenever they need. It can be a

severe threat to this organization as their employees would not be satisfied of their

own organization which will affect their performance.

Political instability

Political instability is also threat for the bank because instability leads to lower

business. The same situation is prevailing in Pakistan.

Inflation and unemployment

In our county, the rate of inflation is increasing along with the unemployment. So due

to increase in price of the products, the savings of the nation is decreasing with

passage of time. So it is threat for the banking sector. In the future, the deposits of the

bank will decrease.

Advancements

Intensifying of global technological progressions and adaptation of fresh mode of

management in banking area is a threat.

Promotional campaigns

Extensive promotional campaigns run by competitors.

4.2 Major competitive advantage

Askari Islamic bank Abbottabad is majorly dealing in providing services for the army

people. Account openings of the new cadets joining the army and the related facilities

are being provided by the representatives of Askari Islamic bank in Pakistan Military

Academy KAKUL. Rashid Saleem Paul and Hafiz Zulqarnain are the representatives

by the bank as ATM Booth In charge. Askari Islamic bank is the only bank in the

Abbottabad region facilitating the military academy in the major sectors.

They are providing their services in off timings as well as directed by the bank. They

are responsible for the working of the ATM machines and the availability of the cash

for the people using ATM.

CHAPTER 5

CONCLUSION AND RECOMMENDATIONS

5.1 Conclusion

Banking is the business that is directly related to general public and an employee can

be evaluated by the appraisal from the customer. This practice will increase the

precision of performance validity as well as will improve the behavior of employees

with general public.

After spending six weeks observing Askari Islamic bank, interacting with the

employees, getting their views and examining the functionality and structure of the

bank, I have come up with some outcomes and suggestions that I think are needed to

adopt that will definitely improve few weaknesses, in my view, observed in the bank.

Askari Islamic Bank is financially a strong bank providing pure Islamic services to its

customers. It is now extra powerful and confined with better-quality operational

abilities, wider allocation and superior intensity in human resource skills. With

stronger brand image and firmer footings the bank has been competent to influence its

infrastructure to originate new products and services according to the Shariah

standards. Askari Islamic bank is performing well in almost all the areas and has the

ability to make optimal use of the available resources, it is adequately capitalized to

expand its operations, and net interest income earned by the bank on its earning assets

has also been increased with the improved quality of loaning by the bank in 2013. The

staff of the bank is competent and cooperative and helps me in understanding the

functionality of the operations. In spite of their tiring and tough working schedule

they answered every query and let me perform the tasks with them.

On the other hand different shortcomings were also there in the bank and its

management that has somehow de-motivated the employees like centralized decision

making hence leaving very little space for the workforce to draw their suggestions and

proposals, lengthy recruitment process and more external recruitments on the posts

instead of promoting their own people, less promotional activities and efforts that

does not helps in drawing attention of the potential customers towards the bank and its

services and many others shortfalls as well. While considering the present scenario

and observing the departments of the bank very closely, efforts have been made to

give workable recommendations.

5.2 Recommendations

5.2.1 Employee empowerment

Bank identifies its employees as a major talent and key contributor to the act of the

organization and greatly emphasize on the desirability, progress, and enthusiasm of its

employees. Delegating powers within the department in-charges to the possible extent

will reduce the workload on managers and also employees will feel motivated

performing their tasks well.

5.2.2 Generalization of Procedures

The procedure for account opening should be simplified. Account opening form

should be self-explanatory including translation in Urdu for those customers who are

not well educated and do not have a good understanding of English.

5.2.3 Human Resource Department

The significance of human resource cannot be deprived of in any organization. In case

of banks it is the most priceless asset, as bank is the most sensitive organization and to

be in synchronization with this understanding, want for an appropriate and developed

human resource is felt deficiently.

5.2.4 Basis for Promotion

The promotion approach must be rigid but obvious and crystal clear that no one could

be promoted on false standards and must follow the criteria of required qualification,

experience and performance.

5.2.5 Development of Managerial Leadership

The need of administrative skill is to a great extent more important in banks as it

makes affirmative contribution towards efficient consequences. AKBL should also

focus on the development of managerial leadership skills to evade deficiencies in the

management by being appropriate in implementing the modern style of management.

5.2.6 Comprehensive training programs

AKBL-IBB should conduct meaningful courses, workshop and seminars with the aim

to improve the staff knowledge. The present conventional training programs have to

be prepared more wide-ranging and reinforce with addition of computer education

process. Employees using software and management information system in the bank

are also to be trained with the updated knowledge to produce effective results.

5.2.7 Incorporated marketing strategy

As in this branch of Askari Islamic bank in Abbottabad region there is no separate

marketing department so all the employees working in different departments should

be involved in the marketing activities rather than just performing their own

department assigned tasks. This can be done through improving their personal relation

skills of visiting the potential customers and convincing them to use their services

wherever possible.

5.2.8 Change in Appraisal System

A transparent and pure appraisal system desires to be put into practice in true logic in

the bank. The drawbacks that are apparent like favoritism and nepotism etc., needs to

be found and rooted out and the concept and traditions of eventual meritocracy in

evaluating the employees is to be understood and adapted.

5.2.9 Guidance for Risk Management

Exclusive compulsory training in relation to all the possible aspects like financial

administration and managerial regulation is necessary to be planned and developed to

achieve

Risk evaluation ability

Accepting all authorized matters

Capability to extend and suggest strong strategies when needed

5.2.10 Effective Management

When a company happens to decline, it become incapable to pay back the loans it has

taken that result in such loans, becoming bad debts. To stay away from this, it is the

dependability of AKBL, to make sure that the company to which mortgage is

approved and certified have the benefit of fine management proficiencies and

reputation. This can merely be affirmed, if the bank audits and evaluates the

administration of borrowing party by dealing with

Management style

Financial measures and certification being followed by workforce

SWOT analysis

Duration of influence and accountability

Employees’ decision making expertise

5.2.11 New features

The bank should plan to improve its Internet Banking Services and ATMs with new

and value added features like inter-branch funds transfer and the payment of utility

bills.

5.2.12 Marketing activities

AKBL should increase media usage like press coverage and advertising to well

market its corporate as well as Brand image and for more promoting their products

and services to attract a wider market. The marketing guidelines and strategies must

be evidently written and communicated to all staff members and also to the clients for

providing them with the accurate information.

5.2.13 Automation

The future and major focus of Askari Islamic Bank should be to improve the

automation and computerization of the accounting processes to enhance the quality

and effectiveness of MIS and to increase the awareness of its effectiveness among

employees.

5.2.14 Islamic banking

Islamic banks need to re-evaluate their communication strategies and increase efforts

to ultimately increase their market share and to educate the community about the

creative understanding and essence of Islamic banking and its usefulness.

5.2.15 Coordination within bank

The coordination among employees of different levels and within different

departments should be improved and encouraged. The coordination and

communication among all the levels of management also needed to be enhanced.

5.2.16 Merit based hiring

All placements and hiring should be on merit, i.e. competence and performance,

without personal bias and external influences and everyone should be promoted on the

basis of work performance, required qualification and experience.

5.2.17 Motivation

Better efforts and performances should be rewarded fairly in order to encourage

schemes and enhance motivation level of employees. This will help in team building

in turn that will encourage employees to perform even better.

Table of contents

Acknowledgement .............................................................................................................ix

Abbreviations.......................................................................................................................x

Executive Summary............................................................................................................xi

CHAPTER 1.......................................................................................................................1

INTRODUCTION.............................................................................................................1

1.1 Introduction to the report...............................................................................................1

1.2 Purpose of the study.......................................................................................................1

1.3 Objectives of the study..................................................................................................2

1.4 Background of the study................................................................................................2

1.5 Research Methodology..................................................................................................2

1.5.1 Sources of primary data.......................................................................................2

1.5.2 Sources of secondary data...................................................................................2

1.6 Limitations.....................................................................................................................3

1.7 Schedule of work...........................................................................................................3

CHAPTER 2.......................................................................................................................4

INTRODUCTION TO BANK..........................................................................................4

2.1 Evolution of banking in Pakistan...................................................................................4

2.2 Historical Background...................................................................................................5

2.2.1 Vision..................................................................................................................6

2.2.2 Mission................................................................................................................6

2.2.3 Core Values.........................................................................................................6

2.2.4 Corporate Information ........................................................................................6

2.3 Askari Islamic Banking Services...................................................................................6

2.3.1 Vision .................................................................................................................7

2.3.2 Mission................................................................................................................7

2.4 Major modes of Islamic banking...................................................................................7

2.5 Introduction to AKIBB Abbottabad..............................................................................8

2.5.1 Departments.........................................................................................................8

2.5.2 Askari Islamic Deposit Products ......................................................................10

2.5.3 Askari Islamic Consumer Products...................................................................10

2.6 Financial Information .................................................................................................10

2.7 PACRA Rating ...........................................................................................................11

2.8 CSR .............................................................................................................................11

CHAPTER 3.....................................................................................................................13

FUNCTIONS OF THE MARKETING DEPARTMENT ...........................................13

3.1 Introduction..................................................................................................................13

3.2 Marketing Management at Askari Bank......................................................................13

3.3 Market Analysis...........................................................................................................13

3.4 STP strategy................................................................................................................ 14

3.4.1 Segmentation strategy.......................................................................................14

3.4.2 Target marketing strategy..................................................................................15

3.4.3 Positioning.........................................................................................................16

3.5 Marketing mix.............................................................................................................17

3.6 Product.........................................................................................................................17

3.6.1 Askari Islamic Consumer Products ..................................................................19

3.6.2 Askari Islamic Deposit Products.......................................................................22

3.6.3 Services .............................................................................................................23

3.7 Price ............................................................................................................................23

3.7.1 Objectives..........................................................................................................24

3.7.2 Nature based pricing..........................................................................................24

3.7.3 Profit rates for different products......................................................................25

3.8 Place (Distribution)......................................................................................................26

3.8.1 Selective distribution.........................................................................................26

3.8.2 Branches all over Pakistan ................................................................................26

3.9 Promotion ...................................................................................................................27

3.9.1 Promotional strategies.......................................................................................28

3.9.1.1 Advertising................................................................................................28

3.9.1.2 Bill Boards.................................................................................................28

3.9.1.3 Broachers...................................................................................................28

3.9.1.4 Personal Selling.........................................................................................29

3.9.1.5 Internet ......................................................................................................29

3.9.1.6 Social marketing........................................................................................29

3.9.1.7 Public Relations.........................................................................................29

3.9.1.8 Publicity.....................................................................................................30

3.9.2 Customer Service...............................................................................................30

3.9.2.1 Process of developing relations with customers........................................30

3.9.2.2 Relation dependence..................................................................................30

3.9.2.3 Techniques of retaining the customers .....................................................31

3.9.2.4 Techniques of attracting new customers ...................................................31

CHAPTER 4.....................................................................................................................33

SWOT ANALYSIS..........................................................................................................33

4.1 SWOT Analysis of AKIBB.........................................................................................33

4.1.1 Strengths............................................................................................................33

4.1.2 Weaknesses........................................................................................................34

4.1.3 Oppurtunities.....................................................................................................35

4.1.4 Threats ..............................................................................................................36

4.2 Competitive Advantage ..............................................................................................37

CHAPTER 5.....................................................................................................................39

CONCLUSION AND RECOMMENDATIONS ..........................................................39

5.1 Conclusion...................................................................................................................39

5.2 Recommendations........................................................................................................40

5.2.1 Employee empowerment ..................................................................................40

5.2.2 Generalization of procedures.............................................................................40

5.2.3 Human Resource Department............................................................................40

5.2.4 Basis for Promotion...........................................................................................40

5.2.5 Development of Managerial Leadership...........................................................40

5.2.6 Comprehensive training programs...................................................................40

5.2.7 Incorporated marketing strategy........................................................................40

5.2.8 Change in Appraisal System.............................................................................41

5.2.9 Guidance for Risk Management........................................................................41

5.2.10 Effective Management.....................................................................................41

5.2.11 New features....................................................................................................41

5.2.12 Marketing activities.........................................................................................42

5.2.13 Automation......................................................................................................42

5.2.14 Islamic banking...............................................................................................42

5.2.15 Coordination within bank................................................................................42

5.2.16 Merit based hiring............................................................................................42

5.2.17 Motivation.......................................................................................................42

References.........................................................................................................................43