Internship Report

On

Askari Bank Limited

Submitted by:

Jahangir Shafqat khan

Reg. no. : MBA-HRP-2211

Department Of Management Sciences

Hazara University Haripur Campus,

September, 2012

Approval Sheet

1. External Examiner

Name _______________________________

Signature ____________________________

Department __________________________

2. Supervisor

Name ________________________________

Signature ____________________________

Name ________________________________

Signature _____________________________

Department ___________________________

3. Head Of Department

Name ________________________________

Signature _____________________________

Department ___________________________

II

Internship Certificate

III

Table of Contents:

Title Page No.

Acknowledgment ----------------------------------------------------------------------- 10

Abbreviations --------------------------------------------------------------------------- 11

Executive summary -------------------------------------------------------------------- 12

Chapter 1 ---------------------------------------------------------------------------- 13-21

Introduction of Organization

1.1. Introduction of organizations business sector -------------------------------- 13

1.2. Brief history of Askari commercial bank ---------------------------------- 13-14

1.3. Vision and Mission statements -------------------------------------------------- 15

1.4. Core values -------------------------------------------------------------------------- 15

1.5. Corporate objectives -------------------------------------------------------------- 16

1.6. How challenges to be delivered ------------------------------------------------- 16

1.7. Code of business ------------------------------------------------------------------- 16

1.8. Corporate philosophy ------------------------------------------------------------ 17

1.9. Award and achievements ---------------------------------------------------- 17-18

1.10. Corporate information --------------------------------------------------- 19-21

Chapter 2 --------------------------------------------------------------------------- 22-30

Introduction to Products and Services

2.1. Products and Services ------------------------------------------------------------ 22

2.1.1. Products in term of deposit account -------------------------------------- 22

2.1.1.1. Current Deposit Account -------------------------------------------- 22

IV

2.1.1.2. PLS Saving Account ------------------------------------------------- 23

2.1.1.3. PLS Term Deposit Account ---------------------------------------- 23

2.1.1.4. PLS Short Term Deposit Account -------------------------------- 24

2.1.1.5. Deposit at Call --------------------------------------------------------- 24

2.1.1.6. Value Plus Account --------------------------------------------------- 24

2.1.1.7. Foreign Currency saving Account --------------------------------- 24

2.1.2 Products and Services ----------------------------------------------------------- 25

2.1.2.1. Personal Finance ------------------------------------------------------ 25

2.1.2.2. Mortgage Finance ----------------------------------------------------- 25

2.1.2.3. Business Finance ------------------------------------------------------- 25

2.1.2.4. Training and Development program ------------------------------ 25

2.1.2.5. Foreign Trade and Correspondent Banking --------------------- 26

2.1.2.6. Consumer Banking ---------------------------------------------------- 26

2.1.2.7. Electronic Banking ---------------------------------------------------- 26

2.1.2.8. Ask card ----------------------------------------------------------------- 27

2.1.2.9. Treveller chaque ------------------------------------------------------- 27

2.1.2.10. Value Plus --------------------------------------------------------------- 27

2.1.2.11. Investment Certificate ------------------------------------------------ 28

2.1.2.12. Askari Master Card ----------------------------------------------- 28-30

2.1.2.13. Agriculture Banking -------------------------------------------------- 30

Chapter 3 -------------------------------------------------------------- 31-49

Introduction of Askari banks main departments

3.1. General Banking Department --------------------------------------------------- 31

3.1.1. Account Opening ------------------------------------------------------------ 31-32

3.1.1.1. Account opening Procedure ----------------------------------------- 33-38

V

3.1.2. Clearing ----------------------------------------------------------------------- 38-40

3.1.3. Cash -------------------------------------------------------------------------------- 41

3.1.4. Remittances ----------------------------------------------------------------------- 42

3.1.4.1. Demand Draft ---------------------------------------------------------- 42

3.1.4.2. Pay Order --------------------------------------------------------------- 43

3.1.4.3. Pay slip ------------------------------------------------------------------ 43

3.1.4.4. OBC ---------------------------------------------------------------------- 44

3.1.4.5. IBC ----------------------------------------------------------------------- 44

3.2. Credit Department ------------------------------------------------------------ 44-46

3.2.1. Running Finance --------------------------------------------------------------- 46

3.2.2. Cash Finance -------------------------------------------------------------------- 46

3.2.3. Term Finance ------------------------------------------------------------------- 46

3.3. Foreign Exchange Department ------------------------------------------------ 46-4

3.3.1. FCA -------------------------------------------------------------------------------- 47

3.3.2. Foreign Remittances ------------------------------------------------------------ 48

3.3.3. Export ----------------------------------------------------------------------------- 48

3.3.4. Import ----------------------------------------------------------------------------- 49

Chapter 4 ---------------------------------------------------------------- 50-52

Plan of Internship Program

4.1. Brief Introduction of Branch --------------------------------------------------- 50

4.2. Starting and Ending Date of my Internship --------------------------------- 50

VI

4.3. Name of Departments ------------------------------------------------------------ 50

4.3.1. Account Opening department ------------------------------------------------ 50

4.3.2. Foreign Currency Department ----------------------------------------------- 51

4.3.3. Cash and Clearing Department ---------------------------------------------- 51

4.3.4. Accounts Department ---------------------------------------------------------- 52

4.3.5. Credit Department -------------------------------------------------------------- 52

4.3.5. Agriculture Department ------------------------------------------------------- 52

Chapter 5 ---------------------------------------------------------------- 53-62

Financial Statement Analysis

5.1. Trend Analysis/Horizontal Analy------------------------------------------- 53-54

5.1.1. Horizontal Analysis of Financial Position statement ----------------- 53-54

5.1.2. Horizontal Analysis of Profit and Loss Statement ----------------------- 54

5.2. Vertical Analysis ---------------------------------------------------------------- 55-56

5.2.1. Vertical Analysis of Financial Position Statement ------------------- 55-56

5.2.2. Vertical Analysis of Profit and Loss Statement --------------------------- 57

5.3. Ratio Analysis ------------------------------------------------------------------ 58-62

5.3.1. Return on Equity --------------------------------------------------------------- 58

5.3.2. Return on Average Asset ------------------------------------------------------- 59

5.3.3. Earning to total Asset ----------------------------------------------------------- 59

5.3.4. Return on Earning Asset ------------------------------------------------------- 60

VII

5.3.5. Operating Cost to Income Ratio ---------------------------------------------- 61

5.3.6. Net Interest Margin ------------------------------------------------------------- 62

5.3.7. Current Ratio --------------------------------------------------------------------- 62

5.3.8. Net Profit Margin --------------------------------------------------------------- 63

5.3.9. Earnings per Share ------------------------------------------------------------- 64

5.4. Financial Review ------------------------------------------------------------------- 65

Statement Of financial position --------------------------------- 66

Statement of Profit and Loss ------------------------------------- 67

Chapter 6 --------------------------------------------------------------------------- 68-69

Swot Analysis

6.1. Strengths ---------------------------------------------------------------------------- 68

6.2. Weaknesses -------------------------------------------------------------------------- 69

6.3. Opportunities ---------------------------------------------------------------------- 69

6.4. Threats ------------------------------------------------------------------------------- 69

Chapter 7 --------------------------------------------------------------- 70-71

Conclusion and Recommendations

7.1. Conclusion -------------------------------------------------------------------------- 70

7.2. Recommendations ----------------------------------------------------------------- 71

References ----------------------------------------------------------------------- 72

VIII

List of Figures

Figure 1-1 Organogram ---------------------------------------------------------------- 21

Figure 5-1 Vertical Analysis of Assets year 2011 --------------------------------- 55

Figure 5-2 Vertical Analysis of Liabilities year 2011 ---------------------------- 56

Figure 5-3 vertical Analysis of Profit and Loss Statement --------------------- 57

Figure 5-4 ROE ------------------------------------------------------------------------- 58

Figure 5-5 ROA ------------------------------------------------------------------------- 59

Figure 5-6 Earning Assets to total Asset ------------------------------------------- 60

Figure 5-7 Return on Earning Assets ----------------------------------------------- 60

Figure 5-8 Operating cost to Income ratio ----------------------------------------- 61

Figure 5-9 Net Interest Margin ------------------------------------------------------ 62

Figure 5-10 Current Ratio ------------------------------------------------------------ 63

Figure 5-11 NPM ----------------------------------------------------------------------- 63

Figure 5-12 EPS ------------------------------------------------------------------------- 64

List of Tables

Table 5-1 Horizontal Analysis of Assets ------------------------------------------- 53

Table 5-2 Horizontal Analysis of Liabilities --------------------------------------- 54

Table 5-3 Horizontal Analysis of Profit and Loss Statement ------------------ 54

Table 5-4 Vertical Analysis of Assets ----------------------------------------------- 55

Table 5-5 Vertical Analysis of Liabilities ------------------------------------------ 56

Table 5-6 Vertical analysis of Profit and Loss Statement----------------------- 57

IX

Table 5-7 Return on Equity ---------------------------------------------------------- 58

Table 5-8 Return on Avg Assets ----------------------------------------------------- 59

Table 5-9 Earning Assets to Total Asset ------------------------------------------- 59

Table 5-10 Return on Earning Asset ------------------------------------------------ 60

Table 5-11 Operating Cost to Income Ratio --------------------------------------- 61

Table 5-12 Net Interest Margin ------------------------------------------------------ 62

Table 5-13 Current Ratio -------------------------------------------------------------- 62

Table 5-14 NPM ------------------------------------------------------------------------- 63

Table 5-15 EPS --------------------------------------------------------------------------- 64

Acknowledgment

X

I offer my humblest thanks to Allah and Hazrat Muhammad (SAAW) from the deep of my

heart that always provide me guidance and blessings which are uncountable.

I am also thankful to my beloved parents and all those people who support and guide me in the

completion of my study and internship report. I most courteously acknowledge the great support

and help of my Teachers my report supervisor Sir Sheraz Ahmed, Reviewer Sir Yasir Ayub and

also the Askari bank haripur staff especially acknowledge the guidance and motivation of Mr.

Muhammad Arif (Manager Askari Bank Haripur Branch), Mr. Faisal Aziz Khan (Manager

Operations Askari Bank Haripur Branch) and all the co-operating and supportive Staff of Askari

Bank Haripur.

I have completed my report and I acknowledge that my words may not just be enough to express

my gratitude to my loving parents, Respectable Teachers and Staff of Askari Bank Haripur

whose endless support and kindness is beyond expression which help me to complete my task.

Thanks

Abbreviations

XI

ACBL : Askari Commercial Bank

AOF : Account Opening Form

ATM : Automated Teller Machine

D.D : Demand Draft

T.T : Telegraphic Telegram

P O : Pay Order

OBC : Outward Bills Collection

IBC : Inward Bills Collection

SBP : State Bank of Pakistan

NBP : National Bank of Pakistan

FCA : Foreign Currency Account

SAARC : South Asian Association for Regional Co-operation

PAARC : Pacific Association of Artist Run Centre

AWT : Army Welfare Trust

SWOT : Strengths, Weaknesses, Opportunities, Threats

EPS : Earning per share

ROE : Return on Equity

SS Card : Specimen Signature Card

EPS : Earning per Share

NPM : Net profit Margin

Executive Summary

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This report is about my internship that I have undergone at Askari bank Haripur branch from

June 11, 2012 to July 24, 2012.

In MBA the internship program is very compulsory for regular students and without the

internship program the degree is not complete and the concepts that I learn during the study it is

very important for me to learn all the concepts practically associated with any organization and

learn the practical concepts. I selected Askari Commercial Bank and decided to do internship in

this bank; Because Askari bank is competing bank now days and gives good training to the

internees. So in order to learn more Askari bank was my choice.

I discuss in my report brief introduction of askari commercial bank, products and services,

analysis of banks financial statements and recommendations etc. I discus all the above headings I

mentioned and some others also in my report one by in individual chapters.

I divided my report to seven Chapters and try to explain all the activities which I observed and

which I learned during my internship program in Askari bank Haripur branch. My report first

chapter includes brief detail about bank, and rest of the chapters includes the detail information

about products, terms conditions, financial analysis of financial statements, and in last I mention

some suggestion and conclude which I observe during my internship program.

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