EXECUTIVE SUMMARY

The comprehensive study of Askari bank helps to suggest the organizational

wide plans that determine the long run success of the organization, finding new

ways to add value, flexibility, and developing unique skills and ideas to manage

people. After analyzing one can explain that how a bank can provide diversified

products & services to the customers in order to provide them maximum utility.

The purpose of Askari bank is to provide professional integrity, customer

satisfaction and teamwork. To achieve sustained growth and profitability in all

areas of business.

This report is a comprehensive study to know the potential of Askari bank. Askari

Commercial Bank is one of the leading banks in Pakistan, which is growing

rapidly. Economy of Pakistan specially banking sector is developing very fast, so

there are opportunities in banking sector. Askari bank was incorporated in

Pakistan on October 9, 1991, as a public limited company. It commenced its

operations on April 1, 1992, and is principally engaged in the business of

banking, as defined in the banking companies’ ordinance, 1962. The bank is

listed on the KARACHI, LAHORE AND ISLAMABAD Stock Exchanges and its

share is currently the highest quoted from among the new private sector banks in

Pakistan.

Askari Bank has expanded into a nationwide presence of 98 Branches, and an

Offshore Banking Unit in Bahrain. A shared network of over 1,100 online ATMs

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

service. As on December 31, 2005, the Bank had equity of Rs. 8.6 billion and

total assets of Rs. 145.1 billion, with over 600,000 banking customers, serviced

by our 2,754 employees.

Askari Bank is committed to develop and enhance each employee’s skills and

capabilities through extensive in-house and external training programs and job

rotation. Productivity of service firm is providing the best service to their customer

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at low cost. ACBL (Present name: Askari Bank Limited) tend to attain the

maximum share of the market.

This report includes the brief details about the bank. The major purpose of this

report is to find out the performance, details of all the departments, functions of

the Askari bank, role of Askari bank in the economy of Pakistan and to prepare a

comprehensive report which covers all the aspects of the bank. In this report, I

did the same thing which is required to study the organization on the whole.

It was a great experience to work at the Askari bank; the things happening were

totally different from what we read in the books. In the period of 6 weeks

internship at Askari Bank Township Branch, Lahore (0056), I had a chance to

have the exposure of how a bank undergoes its functions. I tried my best to gain

a practical exposure and an experience to plan, develop, present and report and

to seek a challenging career oriented position in the field of general banking by

using the potential of hard work and professional skills. It was a large size branch

consists of 1 branch manager, 1 operation manager, 1 in charge general

banking, 3 OGIII officers, 8 OGII officers, 5 OGI and some other clerical staff. As

internee I have to help the different employee in the Branch in their daily work. I

was asked to work on the entire general banking except cash dealings.

First I found out the brief history of the Askari bank to know about the past of the

bank then I found the details about the present functions, its professional out look

to attract the customers and to increase the business. During my internship I was

sent to different departments including Accounts, Credits, customer dealing

Account opening, Clearing, Remittances and Foreign exchange/Trade.

Account opening department gave a chance to know about the account opening

process and requirements. In customer dealing, I learnt how to satisfy the

customers. Remittance department explains the different kind of services

provided by the Askari bank. I tried to explain the (D.D, Pay Order, M.T, T.T)

opening, clearing and encashment process. Accounts department shows all the

working of the bank during the whole period. This department prepares the

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balance sheet, income statement, salary slip of the employees and disburses the

salary to the employees.

The foreign exchange department provides the detail about the trade of the

country the foreign exchange covers imports, exports and foreign currencies. I

learnt about LC opening, lodgment and retirement and other ways of making an

import. The foreign currency department shows the currency come in and goes

out of the country. Credit department covers all the schemes which the bank

offers to benefit the people of the country.

At the very end I performed the financial ratio & SWOT analysis of Askari bank to

show the actual position of the bank and to find out the strength, weakness and

advantages of the bank. By analyzing the overall performance I can say that the

bank has improved its working. And it links to be getting better in profit earning

sector and it is expected that the Profitability of the bank will be improved in the

future year.

After the analysis I give suggestions to bank which I feel during my internship

program the bank can make rapid progress and can increase its business and

performance. So at the end we can say in the modern era it has achieved a

destination where other competitive modern banks can simply reach.  For the

year 2006, Askari bank has won the Best Consumer Banking Award 2006 from

the consumer Association of Pakistan, the Best Retail Banking Award 2008

from Pakistan Guarantee Export Corporation Ltd. and The Best Corporate

Report Award for the year 2008 from the Institute of Chartered Accountants in

Pakistan (ICAP), and the Institute of Cost and Management Accountants in

Pakistan (ICAMP). That is why people have more trust in askari bank and they

are willingly depositing their money in it without any threat. 

All in all, it was a very good learning; which will be helpful in my career.

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INTERODUCTION

18 YEARS OF BANKING HISTORY

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

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

engaged in the business of banking, as defined in the banking companies’

ordinance, 1962. The bank is listed on the KARACHI, LAHORE and ISLAMABAD

Stock Exchanges and its share is currently the highest quoted from among the

new private sector banks in Pakistan.

Askari Bank has expanded into network of 226 Branches/ subsidiary branches

including 31 dedicated Islamic banking and a wholesale bank branch in Bahrain.

A shared network of over 4,173 online ATMs covering all major cities in Pakistan

supports the delivery channels for customer service. As on December 31, 2009,

the Bank had equity of Rs. 14.95 billion and total assets of Rs. 25433 billion, with

over 984,485 banking customers, serviced by our 6,159 employees.

Askari Investment Management Limited and Askari Securities Limited are

subsidiaries of Askari Bank engaged in managing mutual funds and shares

brokerage, respectively.

The VISION to be the bank of first choice in the region demands continuous

strive for creation of business opportunities with innovation while maintaining the

core values to meet the commitment to all bank’s stakeholders. The range of the

products aims to serve the diverse customer base that comprises of corporate,

SMEs, individual savers, households and, farmers. At the same time, the people

are constantly engaged in assessing customer needs and market dynamics to

realign the products and the priorities to attain brand recognition and competitive

edge. ACBL are reshaping its portfolio of businesses by investing in higher

growth areas, extending and developing the core competencies and moving out

of weak and non– core segments.

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VISION STATEMENT

To be the bank of first choice in the region

MISSION STATEMENT

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

presence, delivering quality service through innovative technology and

effective human resource management in a modern and progressive

organizational culture of meritocracy, maintaining high ethical and

professional standards, while providing enhanced value to all our

stakeholders, and contributing to society.

OBJECTIVES

To achieve sustained growth and profitability in all areas of business.

To build and sustain a high performance culture, with a continuous

improvement focus.

To develop a customer-service oriented culture with special emphasis on

customer care and convenience.

To build an enabling environment, where employees are motivated to

contribute to their full potential.

To effectively manage and mitigate all kinds of risks inherent in the

banking business.

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

efficient management information system, enhanced delivery capability

and high service standards.

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

sustainable shareholder returns and to continuously build shareholder

value.

To deliver timely solutions those best meet the customers’ financial needs.

To explore new avenues for growth and profitability.

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STRATEGIC PLANNINGSTRATEGIC PLANNING

To comprehensively plan for the future to ensure sustained growth and

profitability.

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

Corporate Philosophy, with the

Business Goals and Objectives.

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

and procedures.

To provide strategic solutions to mitigate weak areas and to counter

threats to profits.

To identify strategic initiatives and opportunities for profit.

To create and leverage strategic assets and capabilities for competitive

advantage.

BUSINESS ETHICS AND CONDUCT

Askari Bank seeks to maintain high standards of service and ethics enabling it to

be perceived as impartial, ethical and independent. In addition to the general

guidelines, the following are the salient features of the Bank’s code of ethics and

conduct.

Presence of a corporate culture that seeks to create an environment

where all persons are treated equitably and with respect.

Employees must carry out their responsibilities in a professional manner

at all times. They must act in a prudent manner and must avoid situations

that could reflect unfavorably on themselves, the Bank or its customers.

Employees must commit to the continued development of the service

culture in which the Bank consistently seeks to exceed customers’

expectations. Fairness, Truthfulness and Transparency govern our

customer relationships in determining the transactional terms,

conditions, rights and obligations.

Employees must safeguard confidential information which may come to

their possession during the discharge of their responsibilities. Respect for

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customers' confidential matters, merits the same care as does the

protection of the Bank's own affairs or other interests.

Employees must ensure that know your customer principals are adhered by

obtaining sufficient information about the customers to reasonably satisfy

ourselves as to their reputation, standing and the nature of their business

activities.

Employees must avoid circumstances in which their personal interest

conflicts, or may appear to conflict, with the interest of the Bank or its

customers. Employees must never use their position in the Bank to obtain an

advantage or gain.

Employees must not enter into an agreement, understanding or arrangement

with any competitor with respect to pricing of services, profit rates and / or

marketing policies, which may adversely affect the Bank's business.

Employees must not accept gifts, business entertainment or other

benefits from a customer or a supplier / vendor, which appear or may appear

to compromise commercial or business relationship.

Employees must remain alert and vigilant with respect to frauds, thefts or

illegal activities committed within the Bank premises.

REGULATORS OF ASKARI BANK

The bank firmly believes in regulatory discipline and harmony of the corporate

objectives with regulatory framework. The business methodologies are designed

to ensure compliance with the directives of all the bank’s regulators.

COMMITMENT TO SOCIAL REPONSIBILTY

The bank fully recognizes the corporate social responsibility and contributions to

different areas of the social sector are aimed to help improve the quality of life in

the Country.

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INSPIRING RELATIONSHIPS

INSPIRING CUSTOMER RELATIONSHIP

Knowing the customers and their needs is the key to the business success.

Askari bank’s products and services are as diverse as the market segments.

Bank’s client relationship with the managers are well equipped and well trained to

provide the most efficient and personalized service to the customers. Askari

Bank is proud of its pioneering role in providing the most modern and

technologically advanced services to its 984,485 relationships.

INSPIRING EMPLOYEE RELATIONSHIP

The bank strongly believes that the interest of the Bank and the employees are

inseparable. ACBL try to create a ‘we’ culture where there is mutual trust and

respect for each other. The bank encourages ownership behavior so that

everyone feels responsible for the performance and reputation of the Bank. The

bank is committed to develop and enhance each employee’s skills and

capabilities through extensive in–house and external training programs and job

rotations. In order to ensure meritocracy, the appraisal system is purely

performance based.

INSPIRING TECHNOLOGICAL INNOVATION

Technology has played a pivotal role in meeting customer expectations,

particularly with respect to speed and quality of service. The bank has fully

automated transaction– processing systems for back–office support. The branch

network is connected on–line real–time and its customers have access to off–site

as well as on–site ATMs, all over Pakistan. The bank’s phone banking service,

Askari Tele Care, and internet banking facility allows customers to enjoy routine

banking service from anywhere, anytime in the world. The bank also pioneered

an e–commerce venture in Pakistan. Its mobile ATMs are the first in Pakistan. To

further strengthen and enhance the technology platform, the Bank is in the

process of replacing the existing technology with comprehensive state- of-the-art

solutions. This initiative will greatly improve bank’s product delivery and service

abilities.

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INSPIRING ETHICAL VALUES

Integrity is the most valued standard in whatever one do. ACBL understands that

the commitment to satisfy customer’s needs that must be fulfilled within a

professional and ethical framework. ACBL subscribes to a culture of high ethical

standards, based on the development of right attitudes. The intrinsic values,

which are the corner stones of the corporate behavior, are:

Commitment

Integrity

Fairness

Teamwork

Service

INSPIRING THE INVESTOR’S CONFIDENCE

ACBL believes that the bottom line of any business is creating shareholder value.

To gain their trust and confidence, it believes in providing the investors timely,

regular and reliable information on the activities, structure, financial situation, and

performance.

AWARDS AND ACHIEVEMENTS

Askari Bank continues its success in competition. Over the years, ACBL has

received several awards for the quality of its banking service to individuals

and corporate. These include:

Best Commercial Bank

Consumer Choice award 2005

By The Consumers Association of Pakistan

Best Retail Bank in Pakistan

Award 2004 & 2005

By The Asian Banker

Best Corporate Report

1st prize awarded for 2000, 2001, 2003 & 2004

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By Institute of Chartered Accountants of Pakistan (ICAP) and institute of Cost

& Management of Accountants of Pakistan (ICMAP)

Corporate Excellence

Awards for 2002 & 2003

The Management Association of Pakistan (MAP)

Best Corporate / Institutional Internet Bank in Pakistan

Award for 2004

By Global Finance magazine

Best Consumer Internet Bank in Pakistan

Award for 2002, 2003 & 2004

By Global Finance magazine

The Best Bank in Pakistan

Award for 2001 & 2002

By Global Finance Magazine

Best Presented Accounts

Ranking prizes awarded from 1997 to 2002

By South Asian Federation of Accountants (SAFA)

Best Presented Annual Accounts

Award for 2000, 2001and 2002

By the Institute of Chartered Accountants in Pakistan (ICAP), and the Institute of

Cost and Management Accountants in Pakistan (ICAMP)

Commercial Bank of the Year

Award for 1994 & 96

By Asia money magazine

The Best Consumer Banking Award 2006

Award for 2006

By the consumer Association of Pakistan

The Best Retail Banking Award 2008

Award for 2008

By Pakistan Guarantee Export Corporation Ltd.

The Best Corporate Report Award

For the year 2008

By ICAP & ICMAP

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Best Domestic Bank in Pakistan award for 1995by Euro money

Over the years, Askari Bank has proved its strength as a leading banking

sector entity, by achieving the following firsts in Pakistani Banking:

First Bank to offer on-line real-time banking on a country-wide basis.

First Bank with a nation-wide ATM network.

First Bank to offer Internet Banking Services

First Bank to offer e-commerce solution

CREDIT RATING

Askari bank has following credit rating by Pakistan Credit Rating Agency

(PACRA)

Long term: AA

Short term: A1+

AA represents very high credit quality. AA ratings denote a very low expectation

of credit risk. Also show very strong position of timely payments

A1+ shows obligations supported by the highest capacity for timely payments.

COMPETITORS

Banking industry is growing much fast. So Askari bank is facing a lot of

competition in the market. There are following competitors:

ABN Amro

Bank al Falah (Pvt) Ltd

Union Bank Ltd

Soneri Bank Ltd

Prime Commercial bank

The bank of Punjab

Bank Al-Habib Ltd

My bank Ltd

Silk Bank Ltd

NIB Ltd

ORGANIZATIONAL STRUCTURE

Board of Directors

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Lt. Gen. Waseem Ahmed Ashraf Chairman

Lt. Gen. (R) Zarrar Azim Chairman Executive Committee

Mr. Shaharyar Ahmad President & Chief Executive

Brig (R) Muhammad Shiraz Baig Director

Brig (R) Asmat Ullah Khan Niazi Director

Mr. Muhammad Najam Ali Director

Mr. Muhammad Afzal Munif Director

Mr. Tariq lqbal Khan Director (NIT Nominee)

Company Secretary

Mr. Saleem Anwar

Audit Committee

Brig (R) Asmat Ullah Khan Niazi Chairman

Brig (R) Muhammad Shiraz Baig Member

Mr. Kashif Mateen Ansari Member

Auditors

A.F.Ferguson & Co. Chartered Accountants

Legal Advisors

Rizvi, Isa, Afridi & Angell

Shariah advisor

Dr. Muhammad Tahir Mansoori

MANAGEMENT

MAIN OFFICES

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Registered \Head Office

AWT Plaza, the MALL

P.O. BOX. NO: 1080

Rawalpindi: 46000

Pakistan.

Tel: 92-51-9063000

Fax: 92-51-9272455

E-mail:Webmaster@Askaribank.com.pk

Registrar\share transfer office

THK Associate (PVT) Limited

Ground Floor. State Life Building 3

Dr.Ziauddin Ahmad Road, Karachi 75530

P.O. box 8533, Karachi.

Wholesale Bank Branch, Bahrain

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BOARD OF DIRECTORS

Executive Committee

President and Chief Executive

Internal Audit

Corp. Banking & Fin. Inst. Group

Operating and credit group Regions

Retail Banking Group

Credit Cards

International Credit Rawalpindi/Islamabad Asset Products

Planning and Corporate affairs

Treasury Electronic Technology

North Investment products

Human Resource

Corporate and Merchant Banking

Systems and Operations

Lahore Finance

Data Reporting East

Legal Affairs South I

South II

West

ORGANOGRAM

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BRANCH MANAGER

OPERATIONS

MANAGER

CLEARING

CASH DEPARTMENT

NT

FOREIGN EXCHANGE\TRADE DEPT

CREDIT DEPT

CUSTOMER SERVICE

ACCOUNT OPENING

INCHARGE GENERAL BANKING

REMITTANCES

NON-CLERICAL STAFF

HIERARCHY AT THE TOWNSHIP BRANCH

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FUNCTIONS OF ACBL

There are following functions that Askari Bank performs:

Acceptance of deposits

Advancing of loans

Agency services

General utility services

Investment

Overdraft facility

Transfer of money

Creation of credit

Facilitates foreign trade

Executor of the standing orders

Acting as a trust

PRODUCTS &SERVICES OF ACBL

A product ACBL includes all those services which customer normally required for

effectively managing his business. ACBL offers the following financial services to

its customers.

Mahana Bachat Account

Roshan Mustaqbil Deposit

Deposit Multiplier Account

Personal Finance

Islamic banking services

Agricultural finance solution

Corporate & investment banking

Mortgage Finance

Debit/Visa Card

International banking services

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ASKARI MAHANA BACHAT ACCOUNT: (1 + 3 YEAR TENURE)

Multiples of 25,000 should be deposited.

Earn Mark up of 11.1% p.a on investment of Rs.100, 000 for every month.

Earn mark up of 12% p.a on investment of every Rs. 100,000/- for every

month.

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

customer with the option of 1 and 3 Years tenure. The deposits are

ROSHAN MUSTAQBIL ACCOUNT

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

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

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

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

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

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

at the end of the tenure.

DEPOSIT MULTIPLIER ACCOUNT

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

maturity”

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

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

maturity this account is ideal for investors who wish to start saving for their future

today.

Personal Finance

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

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

most affordable monthly installments, Askari Bank’s Personal Finance makes

sure that you get the most out of your loan.

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Islamic Banking services

Islamic Banking was launched under the brand 'Askari Islamic Banking', by

opening 6 dedicated Islamic Banking branches in major cities of the country.

Further expansion is planned with improved capabilities for offering products

conforming to the Shariah principles.

There are following Islamic banking services:

Islamic Corporate Banking

Islamic Investment Banking

Islamic Trade Finance

Islamic General Banking

Islamic Consumer Banking

Agricultural Finance Solutions

Kissan Ever Green Finance

Kissan Tractor Finance

Kissan Transport Finance

Kissan Aabpashi Finance

Kissan ever green Finance

Askari Bank has launched this program with the sole motive to provide dignity,

prosperity and freedom to the tiller of the land.

Corporate & investment Banking

Corporate Banking Division

Term Loans

Fund transfers/Remittances

Project Finance

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PRODUCTS OF ACBL

There are following features of this account:

DEMAND DEPOSIT IMPORT RELATED FINANCE

Current Account Payment Against document

Call Deposit Receipt Finance Against imported Merchandise

Finance against Trust receipt

TIME DEPOSIT

PLS saving Deposit EXPORT RELATED FINANCE

Askari special Deposit account Pre-shipment Finance

Askari FISDA Account Post shipment

Askari FAIDA Account Finance Finance Against Packing Credit

Value Plus Saving Deposit

Notice Deposit MISCELLANEOUS PRODUCTS

Askari Advantage Demand draft

Term Deposit Telegraphic transfer

Pay order

LOCKERS Online banking

Small Size Lockers Internet banking

Medium Size Lockers Travelers cheque

Large size lockers Foreign TT

Askari master credit card

Fund Based Loan Askari debit card

Running Finance

Cash Finance

Term Finance

Staff Finance

Askari Personal Finance

Trade Finance

Non-Fund Based Loan

Letter of Credit (LC)

Letter of Guarantee (LG)

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GENERAL BANKING DEPARTMENT

Account opening

Remittance Department

Cash Department

Clearing Department

PRIVILEGE BANKING DEPARTMENT

Online banking

Lockers

FOREIGN EXCHANGE DEPARTMENT

Import Department

Export Department

Foreign Currency Department

CREDIT DEPARTMENT

ACCOUNTS DEPARTMENT

IT DEPARTMENT

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ACCOUNT OPENING DEPARTMENT

FUNCTIONS

Providing account opening form according to the customer's requirements,

Guide the customer about the requirements of the account opening and

form filling

Check the forms whether they are correctly completed or not

Preparing checklist

Stamping on the form

Maintaining account opening register

Pasting of forms in register after release from general banking in charge

Issuance of cheque books

Issuance of accounts maintenance certificate

Closure of account

Verification of signature in case of cheque presented before releasing of

account opening from SS card is not yet scanned

TYPES OF ACCOUNTS

The customer can open his bank account in order to deposit or withdraw amount.

The bank offers different types of accounts which are as follow:

Current account

Saving account

Askari special deposit account (ASDA)

Basic banking account (BBA)

ACCOUNT OF GENERAL CUSTOMERS

Minor account

Illiterate person account

Individual account

Joint Account

ACCOUNTS OF SPECIAL CUSTOMER

Sole Proprietorship Account

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Partnership Account

Limited Company’s Account

Agent’s Account

Joint Stock Company Account

Agency Account

Clubs, Societies /Association Accounts Trusts Local Bodies Etc.

Executor’s & Administrator’s Account

CURRENT ACCOUNT (CD)

The current account is also called “CD” account and the Code used for this

account is “0101”.Current account can be opened by an individual, jointly, and

also by the company. The initial deposit in order to open this account is

Rs.5000.The account holder does not bear any loss and no profit is given on this

account. There are three options which are given to customer like

Any one:

Any one of the account holder can made transaction

Jointly:

All the account holders need to be there for making transaction

Either or survivor:

If one person died than the other can made transaction

In case of company partnership account, if one partner died than the partnership

is dissolved, than the account was operate as per court order and for this new

resolution was passed by the court.

SAVING ACCOUNT

The saving account is also called “PLS” account. The saving account can also be

opened individually, jointly, and by company but mostly this account was opened

by individual and jointly. This account can be opened with the minimum deposit

of Rs.10, 000. Profit was given on this account is semiannually and the profit rate

is 5%. The profit was automatically adjusted by the electronic data division (EDD)

on the amount of deposit. The code which is used for this account is “0110”.

The things which are required in order to open this account are

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Computerized national identity card (CNIC)

Letter from the company where the person is currently working

In case of thumb sign also require passport size photographs

Source of income

Number of dependents

National tax number (NTN)

And other general information, effect all these information is required in all the

accounts

The state bank of Pakistan gives facility to different people by giving different

feature in current account like introduce BASIC BANKING ACCOUNT “BBA”.

BASIC BANKING ACCOUNT (BBA)

The basic banking account is also called “BBA” account and the code which is

used for this account is “01021”. This account can be opened individually or

jointly. This account was mostly opened by the

Pensioner

Lower income people

House wife

Students

Salaried person

Maximum two deposits and two withdraw can be made by the account holder in a

month. The bank does not deduct any extra charges even if the amount is less

than Rs.5000, but if the transaction exceeds its limit than the bank charge Rs.25

for every transaction. This account can be opened with the minimum deposit of

Rs.1000. No profit was given on this account.

ASKARI SPECIAL DEPOSIT ACCOUNT (ASDA)

The askari special deposit account is also called “ASDA”. This account can also

be opened individually, jointly, and by the company. The code which is used

account is for this account is “01165”.The account was offered specially by the

bank by its name and the features’ that it maintains which are:

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The account holder can only share the profit not the loss.

There is no limit on the transactions

The profit was given at the rate of 5% on monthly basis.

It can be opened with minimum deposit of Rs.10, 000 but profit was given

on the amount exceeding Rs.50, 000.

ACCOUNT OPENING REQUIREMENTS

FOR PROPRETORY COMPANY

copy of CNIC

original letter head and rubber stamp of proprietor

NTN no

FOR PARTNERSHIP COMPANY

copy of CNIC of all partners

Resolution on original letter head of company & rubber stamp of partner

on which operation of account clearly mention.

Partnership deed dully attested by company registrar/notary public

Registration certificate if required

Introduction

PUBLIC & PRIVATE COMPANY

Copy of CNIC of all directors & authorized signatories attested by

company Sectary

Resolution of board of directors on original letter head of company with

rubber stamp & embossed common seal of company in which operation of

account clearly mentioned.

Memorandum & Articles Of Association attested by SECP

FORM 29 attested by SECP

certificate of incorporation/ commencement of business attested by SECP

List of directors on company’s letter head

Company embossed common seal on AOF

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ACCOUNT OPENING PROCEDURE

The general procedure of account opening is same but the document required to

open the account is different according to type of account. Information at the time

of opening of account, the bank officer must assure that customer has the

following characteristics:

The customer must have the age of majority, it means he must be the

age of 18 according to law.

The customer must be of sound mind.

The customer must not be insolvent and bankrupt.

The customer must not be debarred under any law from entering into

any contract.

Also the bank officer must take proper information from the customer

about his means, line and place of business.

Account Opening Form (AOF)

The bank officer must assure that the customer fills each and every column of

account opening form correctly with all necessary details. The specific

information about the business or occupation of the customer is recorded in the

form.

Introduction of Accounts

It is a most important column of AOF. Without the proper introduction, the new

account cannot be opened. The bank officer consider following precaution in this

respect.

The introducer should come with the prospective customer to the bank

so there will be no doubt about the identity of customer.

If the introducer does not come then bank officer must take extreme

care about his signature verification.

Introducer having doubtful dealing with the bank should be discreetly

declined.

Current account holders can be introducer of both types of deposits but

saving bank account holder cannot be the introducer of current

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account holder. But in exceptional cases they can introduce when

saving account holder maintain substantial balance and they are old

and operative accounts.

The staff member can become introducer if they personally known to

the prospective customer.

NATIONAL IDENTITY CARD

The bank officer check that number of national identity card is correctly recorded

in the AOF and a copy of national identity card is kept in record by the bank.

SPECIMEN SIGNATURE CARD (SS CARD)

The bank officer takes signature of customer on AOF and specimen signature

card. Latterly, this card is scanned in the computer and whenever customer

makes any transaction in this account then his signature is verified by it.

UNDERTAKING FORMS

There is different type of undertaking which are taken by the bank at the time of

opening the account, two of them are:

Sign differ form

Vernacular form

SIGN DIFFER FORM

This form was filled by the client at the time of opening the account, if the initial

which was made on the computerized identity card is different from the one

which is made on the account opening form. This is actually the declaration

which is given by the client that the client used different signature for operating

account from the one that was made on CNIC.

VERNACULAR FORM

This form was filled by the customer, if the client used the thumb impression in

order to operate account and also in case if the initials was shaky, mean there is

slightly difference every time in signature. This is also the sort of undertaking

which was taken by the bank in order to protect itself. It was clearly mentioned on

this that in such cases if any fraud occurs than banker is not responsible for this.

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LETTER OF THANKS

After the opening of account, the bank sends this letter to the account holder

address. There are different purpose of this letter, some of them are

To create goodwill

To make sure that all the problems are solved efficiently and effectively

the most basic purpose is to verify the account holder address, the bank

send this letter to the account holder address and if the result was not

accurate the letter was again received by the bank and then again verify

the address from the account holder and again send till that the account

holder not receive that letter. The bank is not issued the cheque book till

the address was not verified.

HIGH RISK ACCOUNT

There are some accounts which are declared by the bank as high risk account,

mean in this account there are more chances of fraud etc. These accounts are

needed to be monitored very closely. High risk account includes:

Lawyers account

Real estate account

Politicians

Staff of askari bank

Staff of money exchanger

Beaurocates

ISSUANCE OF CHEQUE BOOK

The customer fills the “Form A” for issuance of cheque books along with the

AOF. The requisition slip is duly signed then bank officer enters cheque book

series on it. The officer enters the issuance of cheque book in register. To

minimize the misappropriation bank stamps the account number on each leaf of

cheque book. Bank Charges Rs.2 per leaf. ACBL issue 25 t0 100 leaves cheque

books. If cheque book is lost then customer fill the “From B” for resonance of

cheque book. Bank Charge Rs.100 for resonance.

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ACCOUNTS NOT IN USE

INOPERATIVE ACCOUNTS

Accounts which are not in use for 1 year are considered as inoperative accounts

DORMANT ACCOUNTS

Accounts which are not in use for 6 months are considered as dormant accounts

INACTIVE ACCOUNT

If there is no transaction in any account within 6 months then account will

become inactive. Now the account will be active only by crediting some amount.

CLOSURE OF ACCOUNT

In order to close the account, the account holder needs to fulfill the form by the

name of “closure of account”. With this form the client also need to give back his

cheque book that he holds due to his account. After collecting the cheque book

and verifying all the things, the bank cancel the cheque numbers and close the

customer account on his request. The bank will charge Rs.100 for closure and

remaining balance in the applicant’s account will be paid to account holder.

REMITTANCE DEPARTMENT

The remittance department deals with the transfer of money from one place to

another. This department deals with the local currency transfer only. ACBL

provides these services to both customers & non-customers

Functions

Managing issuance of demand drafts

Pay orders

Travelers cheque

Mail transfer

Managing Call deposit receipts CDR

Intercity clearing

Outward bills for collection (OBC)

Credit card advance

Cancellation of pay order & demand draft

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INSTRUMENTS OF THE REMITTANCES DEPARTMENTS

DEMAND DRAFT

A demand draft is an instrument, which is drawn by one bank upon another bank

for a specific sum of money payable on demand. It is made by the bank and given

to the purchaser against cash or cheque. If two banks are involved, then one bank

sends a DD to another bank. But in customer - Bank case the customer sends his

DD to the receiver. Charges of DD are taken from the system according to the amount.

Customer’s a/c………………………..Dr

DD during day……………………………….Cr

DD during day…………………………Dr

M.O…………………………………………..Cr

PAY ORDER

Pay order issued from one branch only be payable from the same branch. It is

normally issued for payment in the same city.

Fill the application form.

Issue pay order after recovering cheques.

Do necessary vouchering.

Make entry in PO issue register.

All pay order shall be crossed" payees account only".

AMOUNT CHARGES

Up to 1million Rs.65 (for admission fee Rs.25)

Above 1million Nil

PO ISSUE

Entries in the uni system:

Customer’s a/c………………………Dr

PO during day…………………………Cr

At day end:

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PO during day………………………..Dr

B/P……………………………………...Cr

After presentation:

B/P……………………………………..Dr

M.O……………………………………..Cr

INTERCITY CLEARING

In intercity clearing, clearing between cities are done. For example in Karachi,

branch of Askari bank exists, ASKARI branch Lahore sends the cheque through

NIFT to main branch which will further sends to Askari bank Karachi branch for

clearing and at the same process they send back the advice. If it returns, Rs.65

will be charged.

OUTWARD BILLS FOR COLLECTION

If in any city, Askari branch doesn’t exist, then we stamp ‘OBC’ and directly send

it to that bank’s branch for clearing.

CALL DEPOST RECEIPT

CDRs are used for the purpose of tendor notice, zakat deduction, taking part in

the bidding, for getting Govt. tendor in favor of customer ‘name. In this process,

payment is secured and if approved then lodged in clearing.

For participating in the bidding process, deposit Rs. 5,000 and the

following entries will be passed:

Customer’s A/c…………………………Dr

CDR………………………………………...Cr

On approval of contractor’ request

CDR……………………………………..Dr

M.O………………………………………….Cr

On rejection of CDR

CDR………………………………………Dr

Customer’s A/c…………………………….Cr

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TRAVELERS CHEQUES

Askari traveler’s cheques are a valuable financial service of ACBL. They are

issued to settle all your business transaction and customer can travel without any

pocket load. It is safest substitute for cash, easily refundable in case of theft and

loss. Askari bank issues the traveler cheques denomination of Rs. 10,000.

Askari traveler cheques are issued against cash cheque or debit to

customer account. It is issued on purchase agreement form and 3 copies are

prepared. One is sent to head office, the second one for record of bank and third

one for the custom. No service charges are taken on it. Any branch of ACBL can

make payment of Askari traveler cheque. It can be drawn by another bank

through collection. It can be encased form the issuing branch but not on issuing

date. If these cheques are enchased within seven days then customer will

receive 0.2% commission.

CASH DEPARTMENT

All physical movement of cash in the bank is made through the cash department.

Normally cash department performs following functions:

Receipt

Payments

Act according to any standing instructions

Transfer of funds from one account to another

Handling of ATM

Verification of signatures

Posting

Handling of prize bonds.

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CLEARING DEPARTMENT

Bank collects payment of cheques on behalf of its customer within city.

FUNCTIONS

Accepting transfer delivery and clearing cheques.

Arranging receipt of cheques payment.

Posting of clearing cheques in the system

Maintaining register for inward and outward clearing cheques

Prepare the return summary

Charges for returns

Amount collections on drawn checks for members and sub-members of

local clearing house

INWARD CLEARING

Cheques and other negotiable instruments (PO, CDR, dividend warrants etc.)

drawn on Askari Bank township branch, lhr, sent by other banks, constitute the

inward clearing of ACBL.

Other points to remember in inward clearing:

We are paying amount of cheque

Customer’s Account will be debited

In case of return charges will be Rs. 250

After having all the stamps and dates of Cheques confirmed, the following entries

will be passed in the system:

Customer account………….Dr

Suspense clearing a/c …………………..Cr

At day end when returns are received:

Suspense clearing a/c……….. ………..Dr

M.O…………………………………………. Cr

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OUTWARD CLEARING

When Cheques are drawn upon other banks of the same city (as Lahore) are

presented in Askari Bank to deposit them in the respective payee’s accounts,

these instruments are lodged in outward clearing of Askari Bank.

Other points to remember in outward clearing:

We receive payment of cheque

Customer’ account will be credited

In case of return charges will be Rs. 50. Return memo will be attached

with cheque.

The following entries will be passed in the system for outward clearing:

Suspense clearing A/c……………… Dr

Customer A/c…………………………….. Cr

At day end:

M.O A/c…………………………. Dr

Suspense clearing A/c…………………… Cr

PREVILDGE BANKING DEPARTMENT

ONLINE BANKING

Online banking means that if a person is sitting in one city like Lahore can easily

transfer/deposit and withdraw his fund from any other branch of Askari Bank in

any city or location. For this purpose the person needs to complete the online

funds transfer slip, which includes the information of that person and the account

to which the transaction is made.

If the funds are transfer with in a city no extra charges are made but in case of

out of city some charges are applied like

Case Charges (Rs.)

Cash deposit 320

Cash withdraw 120

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Funds transfer 185

LOCKERS

Askari bank offers locker facility to its customers. The application form was filled

by the customer as well as specimen signature card (S.S) need to be filled. While

fulfilling the form, there are three options regarding the operating of locker, these

are

Anyone can operate

Jointly

Either or survivor

In order to get a locker the bank gives two options

On Rent

Purchase

Rent

If the person wants to get an account on rent the security fees which need to be

deposited is Rs.1175 which is refundable. The monthly charges for different

lockers are mentioned below

Size charges (Rs.)

Small 1300

Medium 1800

Large 3200

On rent the entry which is passed by the bank is:

Customer’s A/c for rent…………………………Dr.

Customer account key deposit…………………Dr.

Key deposit………………………………………Cr.

Rent………………………………………………Cr.

PURCHASE

If the person want to purchase the locker than the annual charges for different

lockers are mentioned below

Size charges (Rs.)

Small 25,000

Medium 30,000

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Large 45,000

On purchase the entry passed by the bank is:

Customer’s A/c……………………………..........Dr.

Key deposit…………………………………..Cr.

FOREIGN EXCHANGE/FOREIGN TRADE DEPARTMENT

Foreign Exchange Department works like the general bank departments with the

difference that it deals in foreign currency.

FUNCTIONS

Foreign remittances.

Foreign currency accounts

Non-resident accounts maintenance

Foreign bills for collection(FBC)

Foreign telegraphic transfer(FDD)

FOREIGN CURRENCY ACCOUNT

A depositor can open account in US dollar, pond, Japanese Yen and Euro with

nominated branches. For opening of account a form is provided to the

person/party, introduction of the new account holder or by the officer of the bank.

Procedure of opening foreign currency accounts is same as other accounts. No

zakat is deducted on these accounts, no income tax deductions; no wealth tax

deduction will be there.

FOREIGN REMITTANCE

The procedure of foreign remittance is same as in local remittance. The only

difference is that it deals in foreign currency.

Most of the times, following modes are used in foreign remittance.

Foreign Demand Draft (FDD)

Foreign Telegraph Transfer (FTT)

FOREIGN DEMAND DRAFT

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When bank receive foreign demand draft then bank will debit to unsupervised

account of the customer and credit to treasury bank because all the foreign

currency accounts are maintained in treasury, the bank will send debit advice to

treasury. In return, treasury will send the credit advice and branch officer will

debit the treasury and credit to customer account.

FOREIGN TELEGRAPH TRANSFER

When a customer wants to transfer funds to foreign country through telegraph

transfer then he will deposit the amount.

LETTER OF CREDIT (L/C)

Letter of credit is a commitment by the buyer bank to make the payment to the

exporter bank that it assumes the responsibility of payment if the goods are

according to terms & conditions.

PARTIES INVOLVED

Importer/buyer/opener

Exporter/seller/beneficiary

Importer bank/ issuing banks

Exporter bank/advising bank/negotiating bank

TYPES OF L/C

IRREVOCABLE L/C

Under this L/C, amendments or cancellation of lc can be done with the mutual

consent of all the parties involved.

CONFIRMED L/C

A letter which is confirmed by the exporter bank, where it takes the liability of

making the payment without consulting the importer bank.

SIGHT L/C

In this type of L/C, on spot payment is made as the importer bank receives the

bill of lading from the exporter.

USANCE L/C

In this L/C, time period is involved. The importer bank will make payment at

defined days after the shipment. The shipment period may be 60, 90 or 120

days.

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PROCEDURE FOR OPENING OF L/C

Customer request for opening L/C

Request letter + insurance + Performa invoice+IB8+certificate of import of goods

Bank-risk analysis & credit history of importer

Approval by the bank/area/region/H.O (Within their limits)

RCAD + CFTU

RCAD (Regional credit administration department)

It feeds the limit.

CFTU (centralized foreign trade unit)

It controls the transmission of L/C. Calculate margin, commission and mark up on

L/C.

L/C LODGEMENT

L/C is registered in the PAD.

Customer’s liability………………………Dr.

To bank’s liability…………………………….Cr.

PERFORMA INVOICE

It is the document which is sent by the exporter to the importer about the

description of the goods like quality, quantity and price of goods.

INDENT FORM

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The agent (for e.g., USA parent company and its agent in PAKISTAN) authorizes

on behalf of its parent company that the goods have been received.

IB8

It’s the application of irrevocable l/c. it’s the legal document which contains terms

& conditions of the opening of L/C. It contains the details of country of origin.

Amount, date of initiation, date of expiry and the name of the insurance company.

Bath parties signed on it.

COUTRY OF ORIGIN

It contains the information about who has manufactured the goods, country of

manufacture. It tells about in which country goods are ready for sale.

I-FORM/IMPORT FORM

It’s the statistical form which will be submitted to SBP by the bank about the

imported goods.

CREDIT REPORT

The report required by the importer from the exporter for 1.5m or above

transaction.

SWIFT (society for worldwide interbank financial telecommunication)

Its software that generates messages which is send to the exporter. It’s a

network that exchanges messages in a more secure way and not hold accounts

for its customers nor facilitate fund transfer but sends payment orders between

banks and other financial institution.

HS CODE (Harmonized system code)

Different codes for every requirement of L/C which is worldwide used and

accepted.

CREDIT LIMIT

The limit which is set by the

bank’s policy

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Restriction by the SBP on foreign currency.

TRANSPORTATION DOCUMENT

There are four types of documents.

Bill of lading

Airway bill

Truck receipt

Rail receipt

FORMAT OF L/C

Instruction

Mode of transmission

Name & address of applicant and beneficiary

Total amount with destination

Advising bank

Partial shipment allowed/ not allowed

Transshipment allowed/ not allowed

Latest shipment date and expiry date

Place of shipment

Destination

Tenor

Description of goods (ref. Performa invoice/ indent form)

Documents required

Commercial invoice

Certifying country of origin

Mode of transmission by sea/air

Marine insurance company

Cover note, date of expiry

Packing list required

Any additional condition

HS code

Time allowed for preparation of documents

Instructions regarding bank charges by opener/beneficiary

Signature of customer

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% margin

Approval of manager

Account no. of customer/ phone no.

Signature of witnesses

Reimbursing bank/ negotiating bank/advising bank

Details of charges

Signature at the start and at the end

ENTERIES IN LODGEMENT

After the completion of L/C, The following entries will be passed.

Bank’s liability……………………………..Dr.

To customer liability………………………..Cr.

CREDIT DEPARTMENT

Credit department performs two basic functions:

Credit Administration

Credit Appraisal

CREDIT ADMINISTRATION

The credit department takes the decision about credit sanction after the risk

analysis and collects the extended loans at the maturity of loan.

CREDIT APPRAISAL

The credit department reviews their credit policies and all credit proposals. Also

credit officer report all the data of his activities to credit division Karachi. Credit

division reviews their policies after every six month in the light of this data and

also sends the data to State Bank of Pakistan (SBP) to review its policies.

Askari Commercial Bank provides two types of loan that are:

Funded Facility

Non Funded Facility

A. FUNDED FACILITY

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In this type of finance, bank actually deploys its funds and mark up is charged on

it. ACBL provide the following types of fund-based loan.

Running finance

Cash finance

Term finance

Staff finance

Trade finance

Finance against packing credit

Post Shipment Finances

I. RUNNING FINANCE

It is used to meet the running requirement of the capital. It’s the short term

finance normally used for a period 1 year in which payment is made at the end of

the period. In running finance, Bank transfers a particular amount of loan in

customer’s account from where he withdraws the amount as needed. Markup is

charged only on the amount withdrawn not on the whole amount of loan.R.F is

used for the purpose of A/R, purchase of raw material, Salaries payable, utility

bills payable, Administration expenses, Maintenance, Packaging etc.

II. CASH FINANCE

Cash finance is like a running finance but it is extended against the pledged

security like inventory or stock and 25% cash margin is also charged. The

pledged stock is also insured from any insurance company and the customer

also pays all the insurance and any other security expenses. Mark up is charged

over the full loan amount and for whole time period of maturity.

III. TERM FINANCE

The finance in which Mark up is charged on the overall amount of loan whether

utilized or not. It’s a long term finance normally used for a period of 3-

5yrs.Personal guarantee is required in it. Loan will be issued to the person

having 25,000 or above salary. Installment basis pay back.

CATEGORIES OF TERM FINANCE

Financing

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Leasing

FINANCING

Title/ownership with the customer

Bank will pay the amount to customer and customer will purchase the

machinery

LEASING

Ownership/ title with the bank.

Bank will purchase the car

20% markup charged on the principle amount.

Bank-customer account no. required.

Tax benefit to customer

IV. STAFF FINANCE

This facility is provided for the staff of ACBL. The purpose is welfare of the

employees. SBP specify the credit limit for the staff of bank. The mark up rate is

less than commercial rate. Trade finance is provided for short time period so it is

most suitable for bank. These generate more income for the bank due to greater

revolution of money.

V. TRADE FINANCE

Trade finance is of money. Trade finances are of two types:

Import related finance

Export related finance

IMPORT RELATED FINANCE

There are three types of import related finance

Payment against document

Finance against imported merchandize

Finance against trust receipt

PAYMENT AGAINST DOCUMENT (PAD)

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When the bank receives bill of lading and other commercial document from the

exporter then bank will pay to reimbursing bank of exporter. If the customer will

not receive the document within 7 days then bank issue a letter to the importer

and now letter of credit (LC) is converted into absolute liability. The bank gives

the credit period to the importer to make the payment which is 90 or 120 days.

And now bank will charge the mark up and import service charges from the

importer. The reimbursing bank will send all the documents to ACBL and not

directly to the importer.

FINANCE AGAINST IMPORTED MERCHANDIZE (FIM)

When the importer has no funds to import merchandize then he request the bank

letter of credit along with the finance. In PDA the bank is only responsible to

make payment but in FIM bank makes payment from its own funds these types of

finances have specified rate of mark up and time period. All the value-added

expenses like excise duty, port charges etc are charged by the customer as cash

security margin.

Finance Against Packing Credit

Finance against packing credit is extended for the preparation of goods when the

exporter has confirmed letter of credit from the importer. To improve the

economy of Pakistan and to improve the export, SBP introduce special export

finance schemes to the exporter at cheaper mark up rate and also offer export

rebates. It is of two types:

Pre Shipment Finance Part I

Pre shipment finance part I is extended for one year. Funds of SBP are involved

in this finance. When this finance is extended then bank will debit the SBP

account and credit to customer account. Rate of mark up is 2% from which 1 are

for SBP and the bank charges 1%.

Pre Shipment Finance Part 2

This facility is for existing exporter. In this way exporter can avail half of the limit

of total export business transacted last year. If the credit history of exporter is

satisfactory then this credit limit can be increased.

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Post Shipment Finances

This loan facility is provided to exporter after the shipment. Post shipment finance

is for different purposes like when the exporter does not have finance to the

payment of credit raw material.

B. NON-FUNDED FACILITY

In this finance, no cash is involved. It is only a commitment. It is an obligation of

bank and if the customer declares default then bank is liable to make payment.

The bank charges commission in these finances in respect of markup. This

facility is provided against the cash margin and mortgage of property because

bank has risk in this type of finances.

Letter Of Guarantee (LG)

Letter Of Credit (LC)

LETTER OF GUARANTEE (LG)

Letter of guarantee is contingency liabilities of bank because the funds are not

actually involved in it. So they are classified as off balance sheet items. Letter

of guaranty is mostly given in case of contract. 25% cash margin is charged

and also some collateral is taken.

Three beneficiaries of this non-fund based finance are:

Government

Financial Institutions

Others

Bid Bound

When the contractor has no funds for the bid of contract then he requests the bank

to issue the guarantee letter. This type of guarantee is called bid bounds

guarantee and now contractor will quote the rate in tender against this guarantee.

Advance Payment Guarantee

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If the bid is accepted and beneficiary want to make the advance payment to the

contractor because the contractor is away the contract and beneficiary requires

guarantee of bank from the contractor. If bank gives the guarantee of contractor for

advance payment then it is called advance payment guarantee. The contractor is

adjusted this liability by the running bill.

Performance Bound

When the bid is accepted then bank will give guarantee that contractor will

perform the task assigned within the specific period of time.

Maintenance Bound Guarantee

This guarantee is issued for the maintenance of work performed by the contractor,

so it is called maintenance bound guarantee.

Shipping Guarantee

This type of guarantee is very rare and issued against 100% cash margin. When

the shipment is at port but has not any document then bank issue guarantee in

favor of Shipment Company only for 2 days.

Other Guarantee

If the bank issue any guarantee other than above likes to cove the credit sale, then

it is classified as other guarantee.

ACCOUNTS DEPARTMENT

ACCOUNTS OFFICER: MR. BARAK ULLAH

FUNCTIONS

Daily activity checking

Physical checking of cheques and deposit slips

Reconciliation of cheques with ledger

Preparation of statement of affairs

Weekly schedule program

Budget

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IT DEPARTMENT

INCHARGE OFFICER: MR. BURHAN AHMED

FUNCTIONS

Managing day to day cash transaction in computer

Maintaining customers’ accounts in computer

Receiving all mails from Head Office

Fax

Keeping ATM in working condition

Printing daily reports

Receiving IBCA

DETAIL DESCRIPTION OF THE SKILLS ACQUIRED DURING

INTERNSHIP

In Askari Bank, working as an internee, I learn much which make me confident to

work in any other place as a professional.

I started with the accounts department. Mr. Barak Ullah was the in charge officer.

He guided me about the functions performed in accounts.

DEPARTMENT NAME: ACCOUNTS

I learnt about how to differentiate among cheques. He assigned me the duty of

sorting out of all types of cheques in descending order. I made separate head of

current deposits (CDR), saving account (PLS), Askari Special account (ASDA),

basic banking account (BBA), Value Plus and Foreign Currency (FCY) according

to their account codes and then arranged them in descending order. He gave me

an M.O (Main Office) sheet that includes all entries related to head office or inter

branch transfer (IBT). All amounts in a specific ledger of specific account should

46 | P a g e

be known to accounts in charge. Some amounts in transfer section relates to IBT

so they are checked in M.O sheet.

Account codes are as follows:

Current A/c 01010

Saving A/c 01100

BBA A/c 01021

ASDA 01165

Value Plus 01032

FCY 0213

Example ACCOUNT NUMBER: 0056-01-165-0001-3

0056 = Branch Code

01 = Currency Code

165 = Asda Account

0001 = Account Number of the Asda Account Holder

There are three modes of posting in ledger balance

MODES OF POSTING

Cash

Clearing

Transfer

Cash includes ATM entries and cheques in cash payments. Clearing includes

cheques that branch received from NIFT. Transfer includes transfer of amount

from one branch to another or inters branch transfer.

ACCCOUNT OPENING DEPARTMENT

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In the Account Opening Department, MR. ZAFEER KAZMI was the in charge.

Firstly, I have gone through different types of the accounts and the operation of

different accounts. I have opened accounts of so many people myself. There are

different requirements for different account. I perform following activities:

Providing account opening form according to the customer’s requirements

(single, joint, partnership etc)

Guide the customer about the requirements of the account opening and

form filling,

Check the forms whether they are correctly completed or not,

Preparing checklist and Stamping on the form,

Maintaining account opening register,

To get the Verification of signature in case of cheque presented before

releasing of account opening from SS card is not yet scanned.

REMITTANCE SECTION

This section deals with the transfer of money from one branch to another. Nearly

six to ten draft issued daily from this department. Here I knew how the amount

transfers and what the procedure is.

I helped the supervisor in following activities:

Collection of remittances forms

Guiding the customers

Filling the forms.

I was not allowed to do the signatures for final clearance of the

instruments.

I was also shown the online transfer of credit from one account to another

account

REMITTANCE FORM CONTAINS THE FOLLOWING INFORMATION

Date

Amount of PO/DD both in words and figures

Name of beneficiary

Name of city where this PO/DD will be issued and payable

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Signature and address of applicant

In the remittance section I learn how to issue Demand draft and Pay orders.

DEMAND DRAFT

DD is a written order given by the branch of the bank on behalf of the customer

to other branch of the same bank to pay the certain amount to the customer. It is

issued outside the local city.

PROCEDURE OF ISSUANCE OF DD

A printed application form is provided for filling in completely and signing by the

applicant. After depositing an amount of draft and commission of the bank, duly

completed and signed by two authorized officers, then it is handed over the

applicant and credit order is dispatched to drawee branch.

CANCELLATION OF DD

The customer gives the written application for cancellation along with

original demand draft. The bank as cancellation charges Rs. 100.

Cheque the DD in by drawee branch either unpaid or duplicate has been

issued.

The bank officer verifies the signature of applicant. Cancellation of DD is

recorded in DD issue register.

only principle amount will be refunded

If DD is through cash then cash debit voucher is prepared.

PAY ORDER

For this kind of remittance the payer must have the account in the issuing bank.

Pay order are more liquid as compared to cheques because cheques may be

dishonored while PO can’t be dishonored. It is issued within the city.

PROCEDURE FOR ISSUANCE

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The party who requires a pay order will get a printed application from the bank.

He will fill it and deposits the amount and commission

CLEARING SECTION

In Askari bank Mr. Burhan Niaz was in charge of that section. I learn following

activities while working in that section. When cheque or other instrument is drawn

on Askari Bank which is of the other bank, it comes in the clearing department.

Points to remember while checking a cheque for clearing:

Date

Amount in words & Figure

Clearing stamp with today’s date

Payee’s account credited stamp

Within city cheque

REASONS FOR REJECTING A CHEQUE

The following can be the reasons for returning a cheque:

1) Effects not yet clear: please present again.

2) Not arrange for.

3) Payee’s endorsement required.

4) Payee’s endorsement irregular.

5) Refer to drawer.

6) Drawer’s signature differs.

7) Payee’s endorsement requires bank’s guarantee.

8) Alternation requires full signature

9) Cheque is post-dated/stale/ mutilate.(wear and tear)

10)Amount in words and figure differs.

11) Cross cheque must be presented through a bank.

12)Payment stops by the drawer.

13) Payees separate discharge to the bank required.

14) Payees discharge on revenue stamps requires.

15) Not drawn on us.

16) Account close.

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17)Insufficient balance

CLEARING STAMPS

Clearing stamp

It has two parts one is crossing part and other is clearing part

Crossing part shows that cheque is the ownership of bank. Clearing part shows

that everything is clear and bank has collected payment on behalf of customer

Payee’s A/c Credited

This stamp will be stamped on individuals and companies accounts only but if

cheque is in the favor of some bank like Askari bank then stamp will be of “cash

received”.

I entered the amount, account no. and Drawer’s bank in Outward return register

and to get the signatures of the customer at the time he collects his cheque from

the bank.

CUSTOMER DEALING SECTION

In customer dealing section, my duty was to help in issuing cheque book, ATM

cards, lockers, bank statements and TDR to the customer.

CHEQUE BOOK PROCEDURE

The cheque book was issued after the opening of account on the request of

customer. The request for cheque book goes to Karachi office after that they

issue that book by the name and account number of the account holder. This

process almost takes 3 to 4 working days. The request for the cheque book was

uploaded online by the bank on NATIONAL INSTITUTIONAL FACILITATION

TECHNOLOGIES (NIFT). Procedure of issuing check book is as follows:

Form A required

Requisition slip required

Form B required

Form A

This form is used when first time new check book is issued

51 | P a g e

REQUISITION SLIP

This slip is required for issuing check book, for those who already used the

cheque book now it is lost or finished.

FORM B

In the case when old cheque book or requisition slip is lost then form B is used to

issue new cheque book. It is treated as security stationary.

ATM CARD PROCEDURE

After the opening of the bank account, if the person requires the ATM/Debit card

then again he needs to fulfill the application for ATM card. After the completion of

that form that application was send by bank to Islamabad for approval and for the

issuance of debit card. This procedure almost takes from 10 to 15 working days.

The amount limit which a person can withdraw each day through debit card is not

more than Rs.25000. The annual charges the bank deducts for CLASSIC card is

Rs.500 and for GOLD card is Rs.750.

BANK STATEMENT

If a person needs to get the bank statement of his account again for this purpose

he needs to complete the request form. The application for statement should be

submitted at least 1 day before, in some cases the bank also accommodate their

client on urgent basis and print their statement at the same time. The bank

statement contains all the details of the account holder which shows the amount

and all the details when and where transaction is made.

If the third party want to receive a bank statement on account of a person who

actually hold the account than the third party need to come along with the

authority letter issued by the account holder, in which the account holder mention

the name of third party with his CNIC number, in order to receive the bank

statement.

ASKARI MAHANA BACHAT ACCOUNT (AMBA)

It is also called ASKARI MAHANA BACHAT ACCOUNT (AMBA). In this the

account holder can deposit their amount for the fixed period of time. In AMBA,

52 | P a g e

the profit is given on monthly basis on the basis of amount deposited. For AMBA

you must need to have an account with the Askari bank.

In AMBA the bank give two options to the account holder

Deposit their amount for 1 year

Deposit their amount for 3 years

The amount through which this account can be opened is

Minimum Rs.50,000

Maximum Rs.10,000,000

In this one term is used which is called Rollover, it means if the person tick the

option of rollover while opening the AMBA than after the completion of one year

the same process will carry on instead of closing that account.

Two computerized generated receipt is printed, the very next day after opening

the AMBA, one is given to account holder and the second one is maintained by

the bank. This receipt is demanded by the bank at the time of closing the AMBA.

TDR

In TDRs, the profit rate is negotiated that is decided between the manager of the

branch and the valued customer. It is given for 1 month, 3 month, and 6 month

and so on, the rate was decided on basis of number of days.

LOCKERS

First of all the application form is filled by the customer as well as specimen

signature card (S.S). While fulfilling the form, there are three options regarding

the operating of locker, these are

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Anyone can operate

Jointly

Either or survivor

Any one

In this option if there are more than one person who hold the locker, than any

one of them can operate the locker, not all the members are need to be there for

the operating of locker.

Jointly

In this option if there is more than one person who holds the locker, than all the

members need to come to operate the locker, no individual person can operate

the locker.

Either or survivor

In this option if there is more than one person who holds the locker, and any one

of them died than the others have the authority to operate the locker.

SWOT ANALYSIS

An analysis indicating towards the organizations strengths, weaknesses,

opportunities and threat is termed as SWOT Analysis. Such an analysis is very

important for the management in retaining the strength, overcoming the

weaknesses, capitalizing over the emerging market opportunities, and carving

ways to successfully tackle with the threats and ultimately converting them in the

strengths for the organization.

During six weeks of my stay at Askari Commercial Bank, I have come across the

following SWOT analysis of the bank.

STRENGTHS

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ACBL was organized by Army Welfare Trust (AWT) so it has strong army

background.

Askari Bank has opened all its branches at commercial areas so that the

customers or clients face no problems in reaching to the bank.

Askari bank has got a reliable and easy to use internal computer system.

Every information regarding the transactions in customers’ deposits has

been computerized.

The annual financial statement are prepared by the bank in accordance

with the international accounting standard and are also published quarterly

and half yearly accounts to provide information to their stakeholders for

taking well informed decisions.

All the branches of Askari Bank are online and automated.

Askari commercial bank is the leading private sector bank in the banking

network in Pakistan with many of them online branches in major cities of

the country.

Askari bank has the wide range of ATM Network across the country. The

customers can withdraw their funds any time at all the ATM Sites.

ACBL management is quite prepared to adopt the latest advancements in

technology resulting in revolution in the banking operations such as check

clearing process, computer based teller equipment and electronic funds

transfers among the others.

Askari Bank provide the good Phone banking service that is very attractive

for those customers who don’t have time to personally come to the bank

i.e. They can easily get the information. Thus, saving the precious time of

the customers.

The organizations showing concern for the people, ethics, and

environment enjoy good public reputation and are able to reap the benefits

in the long run. ACBL management is quite sensitive to this issue.

WEAKNESSES

In my opinions these are the points that might be detrimental to the efficiency and

profitability of the bank.

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Bank’s marketing department is not very strong. Advertising done by the

bank is less than the requirement.

The employees are constantly rotated from one job to another job. The

employee has know-how of the working in all the departments but not

master in on work. But I think this is not a very good tactics used by the

management.

Almost all the decision-making is in the hands of the upper management.

Only few decisions are taken at the lower level. Centralization is effective

only certain levels but it is also times costly.

The bank has still some of the traditional ways of operations in this

advanced technological environment.

Askari Bank has use computerized accounting system but, still the

bankers use to make their entries in the accounting register also.

There is no specific training program arranged for the new recruiters. They

have to learn based on their observations and also their mistakes.

OPPORTUNITIES

The bank is facing the following threats and opportunities currently. These are

positive external environmental factors effecting the organization.

Askari bank growing business requires an extensive branch network.

There are great opportunities for ACBL for the expansion of its business.

Askari Bank can extend its network in other countries.

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

Foreign investors in the banking industry are welcomed in Pakistan as

they bring not only the precious foreign exchange investment but also

skills and techniques of modern banking system, innovative products and

services.

Askari Bank has an Islamic Banking system also. But it is not fully Islamic

banking. It has only few branches’ of Askari.

Askari Bank has Branches in Remote Areas.

Foreign Trade is the focus of bank. It has become an ideal bank for the

importers and exporters.

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THREATS

Askari Commercial Bank is facing a strong competition by its major

competitors; Union Bank; Faysal Bank; Meezan Bank; My Bank and Bank

Alfalah. Business of these banks is also growing with very high pace.

So Askari Commercial Bank has been performing very well in the

presence of unstable political and economic situation but this uncertainty

is a continuous threat for the bank.

As the banking procedures are complicated that is why general public

takes interest into other options of investments like in shares of companies

and in Term Finance Certificates

In the Bank there are the employees who are not satisfy with their job and

there is high rate of turnover. So the process of recruitment is time

consuming and costly.

The charges of the services that the bank receives from the customers are

higher than their competitors. So it loses many customers for this reason.

Frauds are also a great threat, like recently a great fraud happened with

The Bank of Punjab

FINANCIAL RATIOS

profitability ratios

Market ratios

liquidity ratios

portfolio management

capital gearing ratios

PROFITABILTY RATIOS

EARNING PER SHARE

EPS shows what shareholders earned by way of profit for a period.EPS is closely

watched by the investing public and is considered an important indicator of corporate

success.

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Profit after taxationE.P.S

Weighted average no. of share

Years

Profit after

taxation

Weighted average

number of shareEarnings per share

2009 1107793000 507346635 2.18

2008 386225000 507346635 0.76

2008 20090

0.5

1

1.5

2

2.5

E.P.S RATIOS

RATIOS

Interpretation

The earnings per share for the year ended December 31, 2009 was Rs.2.18,

against the previous year’s Rs.0.76, The improvements primarily due to reduction

in provision / write-off against NPLs during the year 2009.

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Return on Equity

Return on equity revels how much profit a company earned in comparison to the

shareholder equity found in balance sheet. Return on equity of Askari Bank is

showing a changing situation on all given years

Net profitreturn on equity × 100

Share holder’s equity

Years Net Profit Shareholder's Equity

Return On Equity in

%

2009 1107793 13142688 8.429

2008 386225 12034895 3.209

2008 20090123456789

ROE RATIOS

RATIOS

Interpretation

In year 2008 it goes to 3.209% and in 2009 it increases to 8.429% but not too

much so the net profit decreases but the shareholders equity is also decreased.

This year bank has to face additional costs as well as less income due to

economic slowdown which is a bad sign for the bank

Return on Investment

Net profit

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return on investment ×100

Total assets

Years Net Profit Total Assets ROI

2009 1107793 254327446 0.436

2008 386225 206191138 0.187

2008 20090

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

0.5

ROI Ratios

Ratios

Interpretation

In 2008, It is decreased it means that the company decline and its financial

position is week in 2008.But this ratio is same here as return on equity because

long term debt is zero.

Net profit Margin

It measure the percentage of profit earned after all taxes. The higher the firm’s

profit, the better will be the margin.

Net profit earned

net prfit margin × 100

Interest earned

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Years Net Profit

Interest

Earned

Net Profit Margin

(%)

2009 1107793 22661754 4.889

2008 386225 18393313 2.099

2008 20090

1

2

3

4

5

6

NET PROFIT MARGIN

Ratios

Interpretation

In 2008, the percentage is 2.099% which is low. It is increased in 2009 to 4.89%

which is a positive.

Operating Income Margin

Operating incomeoperating income margin ×100

Interest earned

Years Operating Income Interest Earned

Operating Income Margin

(%)

2009 2554701 22661754 11.27

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2008 2707000 18393313 14.717

2008 20090

2

4

6

8

10

12

14

16

operating income margin ratios

ratios

Interpretation

It indicates that Operating income is decreasing from 2008 to 2009.

MARKET RATIOS

Market price is the price at which people are willing to buy or sell the shares. It

provides information about how investors view the potential return and risk

connected with owning the company’s shares.

PRICE EARNINGS RATIO

Market pricePRICE EARNING RATIO

EPS

Years Market price EPSP/E Ratio

2009 27.30 2.18 12.52

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2008 14.57 0.76 19.17

2008 20090

5

10

15

20

25

P/E RATIOS

RATIOS

INTERPRETATION

The P/E ratio is commonly used to assess the owner’s appraisal of share value.

Investors had greater confidence in the bank’s future performance in 2008 as

reflected in the P/E ratio of 19.17, but in 2009 it reduced to 12.52.This figure

indicates that investors were paying Rs. 12.52 for each Rs.1.00 of earnings. The

higher the P/E ratio, the greater investor confidence.

DIVIDEND PER SHARE

DPS shows how much the shareholders were actually paid by way of dividends.

Dividend

D.P.S Weighted average no. of shares

Years Dividend No of Shares

Dividend

per Share

2009 825000 507346635 0.016

2008 444404000 507346635 0.876

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2008 20090

0.10.20.30.40.50.60.70.80.91

D.P.S Ratios

Ratios

Interpretation

The Dividend per Share figure is used by investors and analysts as an indicator

of a company's financial health and profitability. The DPS in 2009 is Rs. 0.016

that reflects shareholder have or will receive Rs. 0.016 for each share they own.

DPS rose to Rs.0.875 in 2008.

DIVIDEND PAYOUT RATIO

The payout ratio provides an idea of how well earnings support the dividend

payments. More mature companies tend to have a higher payout ratio.

DPSDIVIDEND PAYOUT RATIO

EPS

Years DPS EPS

Dividend

Payout

Ratio

2009 0.016 2.18 0.0073

2008 0.876 0.76 1.153

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2008 20090

0.2

0.4

0.6

0.8

1

1.2

1.4

D.P RATIOS

RATIOS

Interpretation

Investors seeking high current income and limited capital growth prefer

companies with high Dividend payout ratio. However investors seeking capital

growth may prefer lower payout ratio because capital gains are taxed at a lower

rate. High growth firms in early life generally have low or zero payout ratios. As

they mature, they tend to return more of the earnings back to investors

Dividend payout decrease in 2009 from 1.513 to 0.0073 Companies that pay

higher dividends may be in mature industries where there is little room for growth

and paying higher dividends is the best use of profits.

Dividend Yield Ratio

This measurement tells you what percentage return a company pays out to

shareholders in the form of dividends. Older, well-established companies tend to

payout a higher percentage than do younger companies and their dividend

history can be more consistent.

DPS

DIVIDEND YIELD RATIO

SHARE PRICE

Years DPS Share Price

Dividend Yield

Ratio

2009 0.016 27.30 0.00059

2008 0.876 14.57 0.060

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2008 20090

0.01

0.02

0.03

0.04

0.05

0.06

0.07

D.Y RATIOS

RATIOS

Interpretation

Dividend yield decrease in 2009 from 0.060 to 0.00059.The AKBL dividend yield

has overall declining trend. When the dividend yield decreases it is unfavorable

LIQUIDITY RATIO

CURRENT RATIO

The current ratio is a measure whether or not a firm has enough resources to

pay its debts over the next 12 months. Acceptable Current ratios vary from

industry to industry.

Current assetsCURRENT RATIO

Current liabilities

YEAR CURRENT ASSETS CURRENT LIABILITES

CURRENT RATIO

2009 32409546 32409546 0.142

2008 24464203 228158736 0.132

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2008 20090.1260.1280.13

0.1320.1340.1360.1380.14

0.1420.144

CURRENT RATIOS

RATIOS

Interpretation

For banks in Pakistan 2:1 is ideal one. Askari Bank is facing difficulty in

maintaining its ratio. In 2008 bank has to attract more deposits, so current

liabilities increased much proportion to current assets. However bank has

enough strength to pay off its short run liabilities.

Advance to Deposits

It is the most important ratio for a bank as all the bank profits are major based on

loans and deposits. Because on the deposits they have to pay and on loans they

earn and the difference is the profit of the bank. The higher the ratio, the more is

relying on borrowed which are generally more costly than most of deposits.

Advanceloan to deposit(%) ×100

Deposit

Year Advance Deposits Advance to deposits

Ratio in %

2009 135034499 205970227 65.56

2008 128818242 167676572 76.82

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2008 200960626466687072747678

ADVANCE TO DEPOSIT RATIOS

RATIOS

INTERPRETATION

The ratio of askari bank is increased in 2008. But in 2009 the ratio suddenly

decreases which is a bad sign for a bank, it ultimately decrease in the bank

income.

Admin Expenses to Total Deposits

Admin expenses Admin Expenses to to deposit × 100

Total Deposit

Years

Expense on

deposit Total deposits

Admin Expense to Total

Deposits

2009 6995857 205970227 3.396

2008 5904169 167676572 3.521

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2008 20093.3

3.35

3.4

3.45

3.5

3.55

ADMIN EXP TO TOTAL DEPOSIT

Ratios

Interpretation

For banks, this ratio must be less than 3%. Depression in financial system forced

banking system to attract more deposit at higher costs. Bank has to increase

Minimum wage rate to meet government regulations, depreciation and

amortization costs also increased. So overall position lead the management to

increase these costs.

Non Interest Income to Total Assets

This ratio shows how much you are earning on the total assets through non-mark

up income.

Non interest incomeNon Interest Income to Total Assets

Total assets

Years Non Interest Inco Total AssetsNoninterest income to total

assets in %

2009 2554701 254327446 1.004

2008 2707000 206191138 1.312

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2008 20090

0.2

0.4

0.6

0.8

1

1.2

1.4

NON-INTEREST INCOME TO TOTAL ASSETS

Ratios

Interpretation

This ratio is showing a vital change in the year 2008 and 2009. This ratio reveals

that bank assets has increased but decrease in noninterest income due to

Unrealized loss on revaluation of investment classified as held for trading disturb

for this year over all non markup income is increasing for the Bank.

RISK ASSETS TURNOVER

Net interest incomeRISK ASSETS TURNOVER ×100

Risk assets (advances)

Years

Net mark-up /

interest income Advances

Risk Assets Turnover

%

2009 9032658 135034499 6.689

2008 7742594 128818242 6.010

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2008 20095.6

5.8

6

6.2

6.4

6.6

6.8

RISK ASSET TURN OVER

Ratios

Interpretation

This ratio is good when it is more. It shows how much you are earning on your

risk assets. This ratio for Askari bank is showing a increasing trend in current

year. Advances have increased. This causes to increase higher interest income

for bank. Due to inflationary trend interest income is also high. So this ratio is in

favor of bank

PORTFOLIO MANAGEMENT RATIO

Advances to Total Assets

AdvancesAdvances to Total Asset

Total assets

Years Advances Total AssetsAdvances To Total Assets

2009 135034499 254327446 0.530 Times

2008 128818242 206191138 0.624 Times

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2008 20090.48

0.5

0.52

0.54

0.56

0.58

0.6

0.62

0.64

ADVANCES TO TOTAL ASSETS

Ratios

INTERPRETATION

It is an indication of ACBL’s funds management policies. The funds allocation to

the financial institutions has increased to a great extent despite the fact that still it

holds a small proportion relevant to the total resources raised by the bank. It is a

positive indicator in the sense that the financing to the banks are the most secure

ways of lending. Considering the economic conditions of the country, it seems to

be the best alternative available to the bank. In the current year this ratio has

been reduced to the little extent. Although it is declining but the situation might

not be alarming.

Leverage Ratio

EBITleverge ratio ×100

Interest charged

Years EBIT Interest Charges

Time Interest Earned

( %)

2009 15271337 13629096 112.2

2008 11112101 10650719 104.3

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2008 2009100102104106108110112114

TIME INTERST EARNED

RATIOS

Interpretation

Ratio is decreasing from 2007 to 2008 after that ratio is increasing at 2009

because EBIT is increasing.

GEARING RATIOS

Debt Equity RatioTotal debts

debt equity ratio × 100Share holder’s equitY

Years Total Debts

Shareholder's

EquityDebt Equity Ratio

2009 239378374 13142688 18.213 Times

2008 193219775 12034895 16.054 Times

2008 200914.515

15.516

16.517

17.518

18.5

DBT EQUITY RATIO

Ratios

73 | P a g e

Interpretation

Debt equity ratio shows a relationship of shareholder equity and total debts of a

company. It is a relationship of internal and external equity of a company. Debt

equity ratio of Askari is showing increasing trend. It means that Askari is not

trying to rely on its own resources and not increasing its Capital by issuing

shares. It is a bad sign for askari bank.

TOTAL CAPITALIZATIONTOTAL ASSETS

total capitalization TOTAL LIABILITIES

Years Total Assets Total Liabilities Total Capitalization

2009 254327446 239378374 1.062

2008 206191138 193219775 1.067

2008 20091.0591.06

1.0611.0621.0631.0641.0651.0661.0671.068

TOTAL CAPITALIZATION

Ratios

Interpretation

It indicates that the total debts remain same in 2009 as compared to 2008

Fixed Asset / Equity Ratio

Fixed assetsfixed asssets/equity ratio ×100

Share holder’s equity

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Years Fixed Assets

Share Holder’s

Equity

Fixed Asset/Equity

%

2009 9846440 13142688 74.92

2008 8266458 12034895 68.69

2008 200964

66

68

70

72

74

76

FIXED ASSET/EQUITY

Ratios

Interpretation

It indicates that the fixed assets are increasing, for this there is increasing trend.

Operating Assets TurnoverInterest earned

opearing assets turnover Operating assets

Years

Markup/return/interest

earned Operating Assets

Operating

Asset

Turnover

2009 22661754 9846440 2.302

2008 18393313 8266458 2.225

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2008 20092.18

2.2

2.22

2.24

2.26

2.28

2.3

2.32

operating asset turnover ratios

RATIOS

Interpretation

It indicates the increasing trend in the graph as the ratio increases 2.225 in 2008

to 2.302 in 2009.

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CONCLUSIONS

After the completion of my overall analysis and studies of Askari

Commercial Bank performance and banking system, I come to the conclusion:

The ACBL is a leading commercial bank of Pakistan. It has won the

rewards like:

The Best Retail Banking Award 2008

The Best Corporate Report Award 2008

From the opinion of international organization the overall strong standing of the

bank is very clear. It won a certificate from Pakistan Credit Rating Agency

(PACRA) A1 in short run in and AA long term even in these worst conditions of

economy the bank is enjoying the huge profits of amount Rs. 1,108 Billion. Total

assets of the bank are increased up to 254 billion and Earnings per Share have

greatly increased from last year. It has increased its network from 200 to 226.

The bank is fully equipped with the modern technology and it is also providing all

the latest banking services like online banking, Internet banking, ATM cards,

traveler cheuqe, and credit cards etc.

The bank is trying to introduce latest techniques on regular basis because it is

backed by AWT that’s why people have complete confidence on them. ACBL has

won the confidence of all its customers by providing them the online services

within few seconds. The future of bank is progressive and will be a leading bank

of Pakistan even competing with foreign banks.

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RECOMMENDATIONS

A department should be established that collects feed backs of the customers

and as well as general public.

Charges should be decrease in providing services to the customer that will

result into the increase in the customers.

One way to retain the personal sector customers is to offer a wide range of

services such as tax advice, free life insurance equivalent to amount

deposited, shares portfolio management, fund management facility, etc.,

complimentary to the core services. Banks must have a slightly different mix

of services and mean of providing these such that customers can choose the

mix that suits them best.

Marketing department’s efforts to market and introduce its product should be

improved.

There should be proper training for the new employees.

Job rotation from one job to another is a big hurdle in the way of getting

experience. Employees have known how about how to work but not master in

one work.

Employees are not satisfied with their jobs. The bank should take steps to

minimize it through different incentives for the employees.

The bank may choose to make its existing products distinctive or to introduce

new products. It is often easier to benefit from adverse changes made by

other banks than to attract customers by innovations.

Efficiency in services should be improved to serve and prevent customers

from waiting for too long e.g. by increasing the number of qualified workers or

increase in computers in the bank.

Improvement in the online banking system being currently used especially in

the case of the ATM machines to avoid wasting time of customers and

frequent breakdown of the machines.

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