askari bank

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askari bank

ASKARI BANK LIMITEDASKARI BANK LIMITED

SUBMITTED TO:SUBMITTED TO: SIR ZAHIDSIR ZAHID

PREPARED BY:PREPARED BY: MUSTAFA TAHIR MUSTAFA TAHIR ROLL NO: 06ROLL NO: 06 (SELF SUPPORT)(SELF SUPPORT)

CLASS :CLASS :

M.COM (2008-2010)M.COM (2008-2010)

DEPARTMENT OF COMMERCE,DEPARTMENT OF COMMERCE,

UNIVERSITY OF SARGODHAUNIVERSITY OF SARGODHA

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askari bank

BANK CERTIFICATE

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askari bank

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askari bank

PREFACE

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askari bankThe pre-requisite of internship program is to make the students of

M.Com aware of the practical expertise and to acquaint them with the

real management process.

With an intention of grooming the best executives of the future,

Department of Commerce has organized a comprehensive internship-

training program. All of us were placed in leading organizations of

business arena to gain first hand knowledge and insight into their

management and working. So, when I was given the chance of selecting

an organization, I opted for Askari Commercial Bank Limited.

Gett ing a chance of working in Askari Bank Limited. proved to be very

beneficial for me. I think that I gained comprehensive insight into the

working of a bank. But nothing could have been possible without the

co-operation and guidance of the officers of Askari Bank Ltd, which is

formally (Askari Commercial Bank Limited.)

After the completion of internship program, internship report has been

prepared just in accordance with the practical exposure.

I have strong belief that this report wil l guide and ease the readers to

understand the operations of banking system and more prominently

have good knowledge about Askari Bank Limited, one of the most trusty

and leading banks in Pakistan.

Dear readers, I hope that you will appreciate my report and sense that

reading my report is not l ike to waste the time in any respect.

ACKNOWLEDGEMENT

Countless thanks to Almighty Allah (The most merciful the most

beneficial). The only creator of universe who enabled me to complete

this report, in spite of various diff icult ies. All respects to the Holy

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askari bankProphet (P.B.U.H) who enable us to recognize our greater and whose

spiri tual teaching guide us in every matter of the li fe.

I would l ike to express my gratitude to the Department of Business

Administration for giving me the opportunity and arranging such an

extensive internship program.

I would also l ike to acknowledge my debts to those off icers Askari Bank

Limited, of who have been extremely helpful for me.

First of all Mr.Ghulamm Habib, He has been a permanent source of

encouragement and guidance. His helpful nature did not restrict me to

the premises to the branch but extended to any place and any matter I

needed his support on.

I would also acknowledge my debt to Mr.Nabeel , for the knowledge he

provided me.

In short, I would always be thankful to al l the managers and officers, for

their courteous and compassionate treatment given to me.

DEDICATIONS

All the efforts in compiling this report are dedicated To My Beloved Parents, Brothers, Friends & My Honourable Faculty Members of Department of Commerce, As they helped me in this Achievement

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askari bank

EXECUTIVE SUMMARYThe Department of Commerce was established in 2005 and offers Masters and Bachelors degree in Commerce. An important programme is six to eight weeks internship with any recognized institution. I decided to take up Askari Commercial Bank Limited for my internship because its competing bank nowadays and gives a good training to the internees. So in order to learn more this was my choice.This report is about my internship that I have undergone at Askari Commercial Bank Limited Sargodha Branch from 15th June 2009 to 27th July 2009. During my internship I am able to learn practical aspect of business, and get good working experience.On the very f irst day of my internship I reported to Operation Manager Mr.Farukh Mehmood. He gave me a small introduction of the bank and introduced me to the staff of the bank. Every internee is rotated among the bank’s departments and so was I. This rotation is done in order to have general concept regarding bank’s functions, operations and policies. In this rotation the stay in department is usually a week. I have learned more about the Bil ls and Foreign Trade department and have given below the caption of activit ies I was involved in during the period of six weeks.During my internship I found that Askari Commercial Bank is a best bank in Sargodha because most of the Exports and Imports in Sargodha are done through this bank.Today every customers is the rational customer he knows the value of money and wants a best return on his money.Earlier Askari Commercial were able to attract customer due to their ancil lary services l ike ATM Cards, Credit Cards, Online Banking etc. but now all the banks are offering these services through their own network or through third party contracting, so our plus points are no more our advantages. So the only thing through which ACBL can increase their deposits are profit rates, because the customers only want maximum profit on their investment.

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askari bank

Table of Contents

1. Industry Introduction

2. An Overview of Organization

- History of Organization

- Nature of Organization

a. Vision Statement

b. Mission Statement

- Main Features

- Competitors

3. Organizational Structure

- Hierarchy Chart

- Number of Employees

- Main Offices

- Introduction of all Departments

- Comments on Organizational Structure

4. Work done by Internee

5. Financial Analysis of Organization

- Financial data of last 5 years

a. Horizontal Analysis

b. Vertical Analysis

- Significance of Ratio

- Components of Ratios (formulae used)

- Horizontal Analysis of Ratios

- Interpretation of Ratios

6. SWOT Analysis

7. Conclusion

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askari bank8. Recommendations

9. Limitations

10. Bibliography

11. Annexes

12. Glossary

1.INTRODUCTION OF INDUSTRY

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askari bankFor developing administrative capabili t ies and giving practical

touch to the studies, a program of six weeks has been introduced as

part of our M.Com studies. For this Purpose we entirely depend on the

active cooperation of well-established and reputed organizations. The

students prepare internship report on the basis of this training and take

viva voce-examination.

I have divided my report in some parts. The major part of my internship

report is based on my working in the bank. The names and brief

introduction of these parts is as under:-

INTRODUCTION OF ASKARI BANK:-

When the Bank came into being? Its brief History, i ts Mission, i ts Values, and what services it provide to its customers, is discussed in this part.

ORGANIZATIONAL CHART OF THE BANK:-

The l ist of names of management personnel, management hierarchy and Organ gram of Askari Bank

FIELD OF ACTIVITIES:-

In what f ields, Askari Bank deal. The main fields of activit ies are Retail Banking, Consumer Banking, Electronic Banking, Correspondent Banking, and Treasury and Investment.

MY INTERNSHIP PROGRAM:-

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askari bankIt is the main part of my internship report. It consist on the detail of the work that I have done there as an internee. In Askari Bank I worked in Account opening, Remittance, Clearing, Credit, Foreign Trade and Accounts Department. The detail of my work in each department is described in this part with al l possible details.

FINANCIAL ANALYSIS:-

It consists on horizontal analysis, vertical analysis and f inancial rat ios of Askari Bank and pros and cons of this analysis.

FINDINGS AND RECOMMENDATIONS:-

This part contains the Findings and brief recommendations given by me to the bank.

DEFINITIONS OF BANK

(1)“Banks do business of money. Rather banks do business of lending and borrowing loans.”   

(2) “Banks are guardian distributor of cash money”.  

(3) “Banker or a bank or a person or company carrying on the business receiving moneys and collecting drafts for customers subject to the obligation of honoring cheques drawn upon them from time to time by the customer to the extent of the amount available on their current accounts”.  

TYPES OF BANKS

Primari ly all banks gather temporari ly idle money for the purpose

of lending to other and investment gain in the form of return, profits and

dividends etc. however, due to the verity of resources of money and the

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askari bankdiversity in lending and investment operations, banks have been place

in various categories, such as

Commercial bank Savings bank Merchant banks Mortgage banks Consumer bank Investment bank Central bank

COMMERCIAL BANK:

The commercial banks received deposits from the general public,

which are repayable on demand upon written orders of the depositors.

As their most distinctive feature the commercial banks maintain the

checking accounts for the constitutions.

Te commercial banks are also distinguished for providing short-

term f inance to trade, commerce and industry to enable these sectors

to expand their productive activit ies

MERCHANT BANKS:

Merchant banks are those, which have been mainly f inancing the

domestic and international trade. During the late 18 t h and early 19 t h

centuries the trade between countries was f inanced by bil l of exchange

by well-reputed merchant’s houses for which they would charges a

commission for their services

SAVINGS BANKS:

The basic purpose of these banks is to inculcate the habit of saving

in the people the savings banks deposits are not repayable upon

only the written order of depositor but the depositor of his agent has

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askari bankto appear personally at the saving banks to make withdrawal and for

this purpose he must present a pass book a certi f icate of deposit or

some similar documents to prove his right to receive his payments.

Post office savings banks and savings accounts at national saving

organizations are well known national saving banks in Pakistan.

MORTGAGE BANKS:

These banks mainly deal in loans for acquisit ion or construction

of real estate against the securit ies of mortgage.

CONSUMER BANKS :

These banks providing f inance for purchasing consumption goods

for the use of Brewers.

INVESTMENT BANKS:

These banks assists business houses and governmental bodies to

raise money through the sale of stocks and bond for usually long term

purposes these banks perform the usual functions of raising deposits of

idle money from the public and finance the business houses other

bodies.

CENTRAL BANKS:

Central banks occupy the unique position in banking structure of

a country because they have been interested with the responsibil i ty of

control l ing the money supply, interest rate, and financial market of a

country for the purpose of economic development.

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askari bankINTRODUCTION ABOUT BANKING SECTOR

Banking is the business of providing f inancial services to

consumers and businesses. The basic services a bank provides are

checking accounts, which can be used l ike money to make payments

and purchase goods and services; savings accounts and time deposits

that can be used to save money for future use; loans that consumers

and businesses can use to purchase goods and services; and basic

cash management services such as check cashing and foreign currency

exchange. Four types of banks special ize in offering these basic

banking services: commercial banks, savings and loan associat ions,

savings banks, and credit unions.

A broader definit ion of a bank is any financial inst itution that

receives, collects, transfers, pays, exchanges, lends, invests, or

safeguards money for i ts customers. This broader definit ion includes

many other financial institutions that are not usually thought of as

banks but which nevertheless provide one or more of these broadly

defined banking services. These institutions include f inance companies,

investment companies, investment banks, insurance companies,

pension funds, security brokers and dealers, mortgage companies, and

real estate investment trusts.

2.AN OVERVIEW OF ORGANIZATION

Askari Bank was incorporated in Pakistan on October 9, 1991, as a

public l imited company. It commenced operations on Apri l 1, 1992, and

is principally engaged in the business of banking, as defined in the

Banking Companies Ordinance, 1962. The Bank is l isted on the

Karachi, Lahore and Islamabad Stock Exchanges and its share have

consistently remained amongst the highest quoted in the banking sector

in Pakistan.

Askari Bank has expanded into a nation-wide presence of 121

branches, including 6 dedicated Islamic Banking Branches, and an off-

shore Banking Unit in Bahrain, A shared network on over 1300 on-l ine

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askari bankATMs covering all major cit ies in Pakistan supports the delivery

channels for customer service. As at December 31, 2006, the Bank had

equity of Rs.11.1 bi l l ion and total assets of Rs. 1660. Bil l ion, with over

665000 banking customers, Serviced by our 4585n employees.

A.VISION

TO BE THE BANK OF FIRST CHOICE IN THE REGION.

B.OUR MISSION

To be the leading private sector bank in Pakistan with an

international presence , delivering quality service through innovative technology and

effective human resource management in a

modern and progressive organizational culture of meritocracy , maintaining high ethical and

professional standards , while providing

enhanced value to al l our stakeholders, and

contributing to society.

You may already have seen our advertising

campaign and the new look of our branches, but I

take pleasure in sharing with you our new

identity:

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askari bankOur shorter, smarter name, crisper new colours and fresh new look are

an insight to our views on banking. We aim to provide innovative

financial solutions to our customers, with the security of knowing they

are dealing with one of the strongest f inancial institutions in the

country. Our new slogan

Reflects our customer service phi losophy – we’re Askar i Bank, ask us!

OBJECTIVES

To achieve sustained growth and profitabil i ty in al l 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 mit igate al l kinds of r isks inherent in the

banking business.

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

efficient management information system, enhanced delivery capabili ty

and high service standards.

To manage the Banks portfol io of businesses to achieve strong and

sustainable shareholder returns and to continuously build shareholder

value.

To deliver t imely solutions that best meets the customers’ f inancial

needs.

To explore new avenues for growth and profitabil i ty.

STRATEGIC PLANNING

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askari bankTo comprehensively plan for the future to ensure sustained growth and

profitabil i ty.

To facil i tate alignment of the vision, mission, corporate objectives and

with the Business Goals and Objectives.

To provide strategic init iatives 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 init iatives and opportunities for profit.

To create and leverage strategic assets and capabili t ies for competit ive advantage.

MAIN FEATURESFIELD OF ACTIVITIES

1. Retail Banking2. Consumer Banking3. Electronic Banking4. Correspondent Banking5. Treasury And Investment

1- RETAIL BANKING

I. Account Opening Department II. Remittance Department

III . Clearing DepartmentIV. Cash DepartmentV. Accounts Department

VI. Foreign Exchange Department

COMPETITORS

The main competitors of the bank are:

Muslim Commercial Bank. Union Bank. Prime Commercial Bank.

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askari bank HBL Bank NIB Bank NBP Bank Silk Bank Allied Bank

3.ORGANIZATIONAL STRUCTURE

CODE OF ETHICS AND CONDUCT

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askari bankAskari Bank seeks to maintain high standards of service and ethics

enabling to be perceived as impartial, ethical and independent. In

addition to the general guidelines, the fol lowing are the salient features

of the Banks 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 responsibil i t ies in a professional

manner at al l t imes. 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 relat ionships in determining

the transactional terms, condit ions, rights and obligations.

Employees must safeguard confidential information which may

come to their possession during the discharge of their

responsibi l it ies. Respect for 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 activit ies.

Employees must avoid circumstances in which their personal

interest conflicts, or may appear to confl ict, with the interest of

the Bank or i ts customers. Employees must never use their

position in the Bank to obtain an advantage or gain.

Employees must not accept gifts, business entertainment or other

benefits from a customer or a supplier / vender, which appear pr

may appear to compromise commercial or business relationship.

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askari bank Employees must remain alert and vigilant with respect frauds,

thefts or i l legal activit ies committed within the Bank premises.

ORGANIZATIONAL CHART

HIERARCHY

CORPORATE INFORMATION

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Chairman

Board of Directors

Chief Executive Officer

Executive Committee

Executive Incharges

Area Manager North Area Manager South

askari bank

   

Lt. Gen. Nadeem Taj Chairman

Lt. Gen (R) Imtiaz  Hussain Chairman Executive Committee

Maj Gen (R) Saeed Ahmed Khan Director

Mr. Zafar Alam Khan Sumbal Director

Dr. Bashir Ahmad Khan Director

Mr. Shahid Mahmud Director

Mr. Muhammad Riyazul Haque Director

Mr. Ali Noormahomed Rattansey Director

Mr. Wazir Ali Khoja ( Nominee NIT ) Director

Mr. Muhammad Rafiquddin Mehkari President & Chief Executive

   

Mr. M. A. Ghazali Marghoob Company Secretary

AUDIT COMMITTEE

   

Dr. Bashir Ahmad Khan Chairman

Mr. Ali Noormahomed Rattansey Member

AUDITORS

   

KPMG Taseer Hadi & Co. Chartered Accountants    

LEGAL ADVISORS

   

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askari bankRizvi, Isa, Afridi & Angell     

REGISTRAR & SHARE TRANSFER OFFICE

   

M/s THK Associates (Private) Limited,

Ground Floor, State Life Building # 3,

Dr. Ziauddin Ahmad Road, Karachi – 75530

P.O.Box No. 8533, Karachi.

Tel : (021) 5689021, 5686658, 5685681

Fax: (021) 5655595

UAN: 111-000-322

   

REGISTERED OFFICE /HEAD OFFICE

   

AWT Plaza, The Mall,

P.O.Box 1084, Rawalpindi.

Tel : (051) 9063000

Fax: (051) 9272455

EXECUTIVE PROFILES

Mr. Shaharyar Ahmed- President & Chief Executive Mr. Agha Ali Imam- Senior Executive Vice President M.R Mehkari - Senior Executive Vice President

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askari bank Mr. Muhammad Arif Mian, Senior Executive Vice President

Suhail Ahmad Rizvi- Executive Vice President

Mr. Nazimuddin A. Chaturbhai, Senior Executive Vice President

Mr. Ejaz Ahmed Khan, Senior Executive Vice President

Malik Asad Ali Noon, Executive Vice President

Mr. Tahir Aziz, Executive Vice President

Mr. Israr Ahmed, Executive Vice President

Mr. Moghis Rafiuddin Bokhari, Executive Vice President

Mr. Nauman Bashir Khan, Senior Vice President

Mr. Muhammad Ahmed Khan-Senior Vice President

INTRODUCTION OF ALL DEPARTMETS

ACCOUNT OPENING DEPARTMENT

This department is responsible for the opening and closing of accounts. In consideration of Askari Bank , opening and/or continuing to maintain any account, the Account Holder/Depositor or Investor would be bound by the terms and conditions written on the account opening form.

The first part establishes the preference regarding the type of account to be maintained. The various choices offered in this regard are:

Current Account Saving/ PLS Account Royal Profit Account Term Deposit Account Basic Banking Account

CURRENT ACCOUNT

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The current account is the most common account and the most preferred amongst business concerns. There is no restriction on the amount of withdrawal. Current account enables the client to do cash transactions in a more efficient manner.

Features:- Current Accounts can be opened in the ASKARI BANK with the

sum not less than Rs.5,000/- No Profit No deduction of Zakat Account close charges Rs.150 Service charges for maintaining minimum balance Rs.100 Online Charges Rs.100

Saving / PLS AccountIn Pakistan (PLS) saving account was introduced in January 1982. Individuals who wish to invest their money in order to get profit maintain this account.

Features:- The minimum balance requirement for opening the account is

Rs.10,000. There can be profit or loss on the investment of the Customer’s

funds deposited with the bank and this amount shall be acceptable to the Customer. The profit is paid half yearly.

Deduction of Zakat With holding tax on profit @ 10% No Service Charges to close the account Service Charges for maintaining minimum balance Rs.50 Online Charges Rs.150

Term Deposit AccountA term deposit is a deposit that is made of a certain period of t ime. At the end of specific period the customer is al lowed to with draw the principal amount.

Features:- Fixed Profit The longer the period for which the amount is kept higher is rate

of interest. Term Deposit usually for the period of three months, six months,

One year, and five years. Deduction of Zakat and withholding Tax @ 10%.

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askari bankBasic Banking Account

Basic Banking Account is opened is ASKARI BANK . The minimum amount deposit in this account is very small as compared to other accounts.

Features:-

Minimum Deposit amount is Rs. 1000 1s t two transactions is free of cost Bank can close the Account after six month if balance is zero.

REMITTANCES DEPARTMENT

Meaning Of Remittance:-

“Remittance is transfer of funds from one place to another or from one person to another.”

A Remittance is an important service provided by banks to customers as well as non-customers. Since it is not a free service it is a source of income for the bank.

Parties Involved In Remittance

Four part ies involved in remittance:-

Remitter Remittee Issuing Bank Paying Bank

Remitter:-

One who init iates, or requests for a remittance. The remitter comes to the issuing or originating branch, asks for a remittance to be made, and deposits the money to be remitted. The bank charges him a commission for this service. He may or may not be the branch’s customer.

Remittee:-

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askari bank

A remittee is also called the beneficiary, or the payee. The person in whose name the remittance is made. A remittee is also the one who receive the payment.

Issuing Bank:-

The bank that sends or effects the remittance, through demand drafts, telegraphic transfers, or Mail Transfers.

Paying Bank:-

Paying Bank also know as the drawee branch. The branch on whom the instrument is drawn. It has to make the payment (usually located in a dif ferent city country).

Kinds Of Remittances

Transfer within the branch Transfer from one branch to another Transfer from one bank to another bank in the same city Transfers from one bank to another bank in two cit ies.

Instruments Used In Remittances

Demand Draft (DD) Pay Order (PO) Pay Slip Call Deposit Receipt (CDR) Telegraph Transfer Rupees Traveler Cheque (RTC) Cancellation of PO, DD & CDR Advance Tax against Remittances

CLERING DEPARTMENTMeaning Of Clearing:-

The word clearing has been derived from the word “clear” and is defined as:

“A system by which banks exchange cheques and other negotiable instruments drawn on

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askari bankeach other within a specific area and thereby secure payment for their clients through the Clearing House at specified time in an efficient way.”

Explanation:-

By clearing means sometimes the account holder of Askari Bank present a cheques, which is not drawn on Askari Bank but the person, has an account in Askari Bank . In this case bank accepts this cheques in clearing department and later on collets the amount from bank on which cheques is drawn through clearing house . This function is called clearing.

Clearing House:-

It is a place where representatives of al l banks sit together and interchange their claims against each other with the help of controll ing staff of NIFT.

It is one of the services provided by NIFT to other commercial banks. NIFT acts as a clearinghouse. Different banks are the members of the clearinghouse. A representative of each bank represents his bank in the clearinghouse.

Each bank has collected cheques as behalf of their customer but these cheques are not drawn on their own bank so in the clearinghouse, they hand over these cheques to respective banks on which these cheques are drawn. Similarly each bank receives cheques from other banks if any.

Instruments To Be Presented In Clearing

Cheques Demand Drafts Pay Orders

TYPES OF CLEARING

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askari bankThere are four types of clearing:-

1. Inward Clearing2. Outward Clearing3. Intercity Clearing4. Same Day Clearing

Inward Clearing:-

Those Cheques and other negotiable instruments which are drawn on Askari Bank, sent by other banks, constitutes the inward clearing of Askari Bank. After having all the stamps and dates of cheques confirmed, the concerned drawer’s accounts are debited in Askari Bank limited.

INWARD RETURN:-

Return may be of any reason:-

Presentation Flaw e.g. Clearing stamp not affixed or wrong discharge given by collecting banker.

Defect In The Cheques i .e. Post dated cheques, unauthorized cutting.

Insufficient Askari Bank ance

Accounting Entries OF Inward Clearing

Inward Clearing Single Branch:-

In Case OF Lodgment:-

Dr. Customer AccountCr. SBP Account

In Case Of Return:-

Dr. SBP AccountCr. Customer Account

Inward Clearing Main Branch:-

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askari bankIn Case OF Lodgment:-

Dr. M.O AccountCr. SBP Account

In Case Of Return:-

Dr. SBP AccountCr. M.O Account

Inward Clearing Centre Branch:-

In Case OF Lodgment:-

Dr. Customer AccountCr. M.O Account

In Case Of Return:-

Dr. M.O AccountCr. Customer Account

Outward Clearing:-

When cheques and other negotiable instruments drawn upon other banks l ike City Bank, MCB, ABN-AMRO or ABL of the same city (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.

Outward Return:-

Cheques return will be treated as inward cheques. In case the cheques is returned because of wrong presentation

e.g. clearing stamp not aff ixed or wrong discharge given on the cheques etc. it should be relodged in the next day clearing after rectif ication of the mistake.

If the cheques is returned for any other reason then

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Enter the cheques in cheques return register, mentioning the reason as appearing on the cheques return memo received from the paying bank.

Advice the customer about fate. Return the cheques to the customer after getting sign on the

register. Collect the cheques return charges as per S.O.C (Schedule of

charges).

Accounting Entries Of Outward Clearing

Outward Clearing Single Branch:-

In Case OF Lodgment:-

Dr. SBP AccountCr. Customer Account

In Case Of Return:-

Dr. Customer AccountCr. SBP Account

Outward Clearing Main Branch:-

In Case OF Lodgment:-

Dr. SBP AccountCr. M.O Account

In Case Of Return:-

Dr. M.O AccountCr. SBP Account

Outward Clearing Centre Branch:-

In Case OF Lodgment:-

Dr. M.O AccountCr. Customer Account

In Case Of Return:-

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askari bank

Dr. Customer AccountCr. M.O Account

Inter City Clearing:-

The cheques that are presented in inter city clearing are of another city and received by air. In this type of clearing the bank confirm at that t ime that the cheques are clear or not and give to the rider.

Same Day Clearing:-

The cheques that are presented in same day clearing are the local cheques and these cheques are clear in same day. Basically i t is the benefit that are provided to customer.

CASH DEPARTMENTThe cash department is the most important department of the bank. It receives cash from customers and then deposits i t into the accounts of the customers and maintained their Askari Bank ances.

The officers in this department are called tel ler and there were four tel lers at the counter. This department involves in two activates:-

Deposit cash in customer’s account Make payments from customer’s account

Deposit Cash In Customer’s Account:-

When the customer want to deposit amount in his account at opening of account or after that then he has to fi l l a deposit sl ip that shows the amount and the account in which the cash wil l be deposited. Then teller wil l receive amount and credit the customer’s account that shows increase in customer’s bank account.

Make Payments From Customer’s Account:-

When the customer draws a cheque on the bank to pay a certain amount then tel ler will debit the customer’s account that shows reduction in his account Askari Bank ance.There are two main types of cheques that are

Open Cheques Crossed Cheques

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askari bank

Open Cheques:-

Open Cheques are those cheques, which are paid across the counter of the bank. Open cheques may be

Bearer Cheques Order Cheques.Bearer Cheque:-

If the drawer orders the bank to pay a stated sum of money to the bearer, i t is called a bearer cheque. Any person who lawfully possesses a bearer cheque is entit led to receive payment of that cheque.

Order Cheque:-

The amount of this cheque is payable to the person whose name is written on the face of the cheque. The amount is paid at counter after identif ication of that person.

Crossed Cheque:-

The amount of this cheque is not paid at counter. The amount of this cheque is transferred to the person’s account whose name is specified on the cheque. Two parallel transverse l ines are drawn across the face of the cheque.

Kinds Of Crossing:-

Legally there are two kinds of crossing

General Crossing Special Crossing

General Crossing:-

In case of General Crossing the payment can only be deposited into the payee’s account only.

Special Crossing:-

In case of Special Crossing the payment can only be made to bank named therein the cheque.

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askari bank

CHEQUE ENCASHMENT PROCEDURE

Cheque Encashment are made in four steps, these are:-

Receiving Of Cheques Verif ication Of Signature Computer Terminal Process Payment Of Cash

Receiving Of Cheques:-

The cash is paid against the cheque of the client. The following points are kept in mind while receiving the cheque from the cl ient.

Cheque is drawn on ASKARI BANK Cheque is not post dated. Amount in words and figure are same. It should be a bearer cheque so the word bearer should not cross.

Verification Of Signature:-

After receiving the cheque the cheque the off icer verify the signature of the account holder and the signature on the cheque. I f the signature is not same it is returned back otherwise forward to computer terminal.

Computer Terminal Process:-

The cheque is received in computer terminal, where the computer operator checks the Askari Bank ance of the account holder. The operator also sees the stop payment instructions are received from account holder or not. After considering these points computer operator post the cheque in account holder ledger and returned back to the officer.

Payment Of Cash:-

After posting the cheque the off icer cancelled the cheque and returned back to cashier. The cashier enters the cheque in cash paid registered and pay against the second signature of receiver on the back of the cheque.If the payment is of Rs. 50000 the cashier can make it on its own. I f the amount is greater than Rs. 50000 to Rs. 100,000 the cashier and cash deposit Incharge wil l verify the check and will sing it . Then the payment wil l be made. But, i f the amount is greater than Rs. 100000 to Rs.

34

askari bank1000,000 the manager operation wil l also verify the check and sign it so that the payment can be made. If the amount is greater than Rs. 1000,000 the Branch Manager wil l also verify the check and sign it. Otherwise the payment will not be made.

CODE OF ETHICS AND CONDUCTAskari Bank seeks to maintain high standards of service and ethics

enabling to be perceived as impartial, ethical and independent. In

addition to the general guidelines, the fol lowing are the salient features

of the Banks 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 responsibil i t ies in a professional

manner at al l t imes. 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

35

askari bankcustomers’ expectations. Fairness, Truthfulness and

Transparency govern our customer relat ionships in determining

the transactional terms, condit ions, rights and obligations.

Employees must safeguard confidential information which may

come to their possession during the discharge of their

responsibi l it ies. Respect for 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 activit ies.

Employees must avoid circumstances in which their personal

interest conflicts, or may appear to confl ict, with the interest of

the Bank or i ts customers. Employees must never use their

position in the Bank to obtain an advantage or gain.

Employees must not accept gifts, business entertainment or other

benefits from a customer or a supplier / vender, which appear pr

may appear to compromise commercial or business relationship.

Employees must remain alert and vigilant with respect frauds,

thefts or i l legal activit ies committed within the Bank premises.

ORGANIZATIONAL CHART

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Chairman

Board of Directors

Chief Executive Officer

Executive Committee

Executive Incharges

Area Manager North Area Manager South

askari bank

HIERARCHY

CORPORATE INFORMATION

   

Lt. Gen. Nadeem Taj Chairman

Lt. Gen (R) Imtiaz  Hussain Chairman Executive Committee

Maj Gen (R) Saeed Ahmed Khan Director

Mr. Zafar Alam Khan Sumbal Director

Dr. Bashir Ahmad Khan Director

Mr. Shahid Mahmud Director

Mr. Muhammad Riyazul Haque Director

Mr. Ali Noormahomed Rattansey Director

Mr. Wazir Ali Khoja ( Nominee NIT ) Director

Mr. Muhammad Rafiquddin Mehkari President & Chief Executive

   

Mr. M. A. Ghazali Marghoob Company Secretary

AUDIT COMMITTEE

   

Dr. Bashir Ahmad Khan Chairman

Mr. Ali Noormahomed Rattansey Member

AUDITORS

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askari bank   

KPMG Taseer Hadi & Co. Chartered Accountants    

LEGAL ADVISORS

   

Rizvi, Isa, Afridi & Angell     

REGISTRAR & SHARE TRANSFER OFFICE

   

M/s THK Associates (Private) Limited,

Ground Floor, State Life Building # 3,

Dr. Ziauddin Ahmad Road, Karachi – 75530

P.O.Box No. 8533, Karachi.

Tel : (021) 5689021, 5686658, 5685681

Fax: (021) 5655595

UAN: 111-000-322

   

REGISTERED OFFICE /HEAD OFFICE

   

AWT Plaza, The Mall,

P.O.Box 1084, Rawalpindi.

Tel : (051) 9063000

Fax: (051) 9272455

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askari bank

EXECUTIVE PROFILES

Mr. Shaharyar Ahmed- President & Chief Executive Mr. Agha Ali Imam- Senior Executive Vice President M.R Mehkari - Senior Executive Vice President

Mr. Muhammad Arif Mian, Senior Executive Vice President

Suhail Ahmad Rizvi- Executive Vice President

Mr. Nazimuddin A. Chaturbhai, Senior Executive Vice President

Mr. Ejaz Ahmed Khan, Senior Executive Vice President

Malik Asad Ali Noon, Executive Vice President

Mr. Tahir Aziz, Executive Vice President

Mr. Israr Ahmed, Executive Vice President

Mr. Moghis Rafiuddin Bokhari, Executive Vice President

Mr. Nauman Bashir Khan, Senior Vice President

Mr. Muhammad Ahmed Khan-Senior Vice President

FIELD OF ACTIVITIES

6. Retail Banking7. Consumer Banking8. Electronic Banking9. Correspondent Banking10. Treasury And Investment

1- RETAIL BANKING

I. Account Opening Department II. Remittance Department

III . Clearing DepartmentIV. Cash DepartmentV. Accounts Department

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askari bankVI. Foreign Exchange Department

ACCOUNT OPENING DEPARTMENT

This department is responsible for the opening and closing of accounts. In consideration of Askari Bank , opening and/or continuing to maintain any account, the Account Holder/Depositor or Investor would be bound by the terms and conditions written on the account opening form.

The first part establishes the preference regarding the type of account to be maintained. The various choices offered in this regard are:

Current Account Saving/ PLS Account Royal Profit Account Term Deposit Account Basic Banking Account

CURRENT ACCOUNT

The current account is the most common account and the most preferred amongst business concerns. There is no restriction on the amount of withdrawal. Current account enables the client to do cash transactions in a more efficient manner.

Features:- Current Accounts can be opened in the ASKARI BANK with the

sum not less than Rs.5,000/- No Profit No deduction of Zakat Account close charges Rs.150 Service charges for maintaining minimum balance Rs.100 Online Charges Rs.100

Saving / PLS AccountIn Pakistan (PLS) saving account was introduced in January 1982. Individuals who wish to invest their money in order to get profit maintain this account.

Features:- The minimum balance requirement for opening the account is

Rs.10,000. There can be profit or loss on the investment of the Customer’s

funds deposited with the bank and this amount shall be acceptable to the Customer. The profit is paid half yearly.

Deduction of Zakat

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askari bank With holding tax on profit @ 10% No Service Charges to close the account Service Charges for maintaining minimum balance Rs.50 Online Charges Rs.150

Term Deposit AccountA term deposit is a deposit that is made of a certain period of t ime. At the end of specific period the customer is al lowed to with draw the principal amount.

Features:- Fixed Profit The longer the period for which the amount is kept higher is rate

of interest. Term Deposit usually for the period of three months, six months,

One year, and five years. Deduction of Zakat and withholding Tax @ 10%.

Basic Banking Account

Basic Banking Account is opened is ASKARI BANK . The minimum amount deposit in this account is very small as compared to other accounts.

Features:-

Minimum Deposit amount is Rs. 1000 1s t two transactions is free of cost Bank can close the Account after six month if balance is zero.

REMITTANCES DEPARTMENT

Meaning Of Remittance:-

“Remittance is transfer of funds from one place to another or from one person to another.”

A Remittance is an important service provided by banks to customers as well as non-customers. Since it is not a free service it is a source of income for the bank.

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askari bank

Parties Involved In Remittance

Four part ies involved in remittance:-

Remitter Remittee Issuing Bank Paying Bank

Remitter:-

One who init iates, or requests for a remittance. The remitter comes to the issuing or originating branch, asks for a remittance to be made, and deposits the money to be remitted. The bank charges him a commission for this service. He may or may not be the branch’s customer.

Remittee:-

A remittee is also called the beneficiary, or the payee. The person in whose name the remittance is made. A remittee is also the one who receive the payment.

Issuing Bank:-

The bank that sends or effects the remittance, through demand drafts, telegraphic transfers, or Mail Transfers.

Paying Bank:-

Paying Bank also know as the drawee branch. The branch on whom the instrument is drawn. It has to make the payment (usually located in a dif ferent city country).

Kinds Of Remittances

Transfer within the branch Transfer from one branch to another Transfer from one bank to another bank in the same city Transfers from one bank to another bank in two cit ies.

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askari bankInstruments Used In Remittances

Demand Draft (DD) Pay Order (PO) Pay Slip Call Deposit Receipt (CDR) Telegraph Transfer Rupees Traveler Cheque (RTC) Cancellation of PO, DD & CDR Advance Tax against Remittances

CLERING DEPARTMENTMeaning Of Clearing:-

The word clearing has been derived from the word “clear” and is defined as:

“A system by which banks exchange cheques and other negotiable instruments drawn on each other within a specific area and thereby secure payment for their clients through the Clearing House at specified time in an efficient way.”

Explanation:-

By clearing means sometimes the account holder of Askari Bank present a cheques, which is not drawn on Askari Bank but the person, has an account in Askari Bank . In this case bank accepts this cheques in clearing department and later on collets the amount from bank on which cheques is drawn through clearing house . This function is called clearing.

Clearing House:-

It is a place where representatives of al l banks sit together and interchange their claims against each other with the help of controll ing staff of NIFT.

It is one of the services provided by NIFT to other commercial banks. NIFT acts as a clearinghouse. Different banks are the members of the clearinghouse. A representative of each bank represents his bank in the clearinghouse.

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askari bankEach bank has collected cheques as behalf of their customer but these cheques are not drawn on their own bank so in the clearinghouse, they hand over these cheques to respective banks on which these cheques are drawn. Similarly each bank receives cheques from other banks if any.

Instruments To Be Presented In Clearing

Cheques Demand Drafts Pay Orders

TYPES OF CLEARING

There are four types of clearing:-

5. Inward Clearing6. Outward Clearing7. Intercity Clearing8. Same Day Clearing

Inward Clearing:-

Those Cheques and other negotiable instruments which are drawn on Askari Bank, sent by other banks, constitutes the inward clearing of Askari Bank. After having all the stamps and dates of cheques confirmed, the concerned drawer’s accounts are debited in Askari Bank limited.

INWARD RETURN:-

Return may be of any reason:-

Presentation Flaw e.g. Clearing stamp not affixed or wrong discharge given by collecting banker.

Defect In The Cheques i .e. Post dated cheques, unauthorized cutting.

Insufficient Askari Bank ance

Accounting Entries OF Inward Clearing

Inward Clearing Single Branch:-

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askari bankIn Case OF Lodgment:-

Dr. Customer AccountCr. SBP Account

In Case Of Return:-

Dr. SBP AccountCr. Customer Account

Inward Clearing Main Branch:-

In Case OF Lodgment:-

Dr. M.O AccountCr. SBP Account

In Case Of Return:-

Dr. SBP AccountCr. M.O Account

Inward Clearing Centre Branch:-

In Case OF Lodgment:-

Dr. Customer AccountCr. M.O Account

In Case Of Return:-

Dr. M.O AccountCr. Customer Account

Outward Clearing:-

When cheques and other negotiable instruments drawn upon other banks l ike City Bank, MCB, ABN-AMRO or ABL of the same city

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askari bank(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.

Outward Return:-

Cheques return will be treated as inward cheques. In case the cheques is returned because of wrong presentation

e.g. clearing stamp not aff ixed or wrong discharge given on the cheques etc. it should be relodged in the next day clearing after rectif ication of the mistake.

If the cheques is returned for any other reason then

Enter the cheques in cheques return register, mentioning the reason as appearing on the cheques return memo received from the paying bank.

Advice the customer about fate. Return the cheques to the customer after getting sign on the

register. Collect the cheques return charges as per S.O.C (Schedule of

charges).

Accounting Entries Of Outward Clearing

Outward Clearing Single Branch:-

In Case OF Lodgment:-

Dr. SBP AccountCr. Customer Account

In Case Of Return:-

Dr. Customer AccountCr. SBP Account

Outward Clearing Main Branch:-

In Case OF Lodgment:-

Dr. SBP AccountCr. M.O Account

In Case Of Return:-

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askari bank

Dr. M.O AccountCr. SBP Account

Outward Clearing Centre Branch:-

In Case OF Lodgment:-

Dr. M.O AccountCr. Customer Account

In Case Of Return:-

Dr. Customer AccountCr. M.O AccountInter City Clearing:-

The cheques that are presented in inter city clearing are of another city and received by air. In this type of clearing the bank confirm at that t ime that the cheques are clear or not and give to the rider.

Same Day Clearing:-

The cheques that are presented in same day clearing are the local cheques and these cheques are clear in same day. Basically i t is the benefit that are provided to customer.

CASH DEPARTMENTThe cash department is the most important department of the bank. It receives cash from customers and then deposits i t into the accounts of the customers and maintained their Askari Bank ances.

The officers in this department are called tel ler and there were four tel lers at the counter. This department involves in two activates:-

Deposit cash in customer’s account Make payments from customer’s account

Deposit Cash In Customer’s Account:-

When the customer want to deposit amount in his account at opening of account or after that then he has to fi l l a deposit sl ip that shows the amount and the account in which the cash wil l be deposited. Then teller wil l receive amount and credit the customer’s account that shows increase in customer’s bank account.

Make Payments From Customer’s Account:-

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askari bank

When the customer draws a cheque on the bank to pay a certain amount then tel ler will debit the customer’s account that shows reduction in his account Askari Bank ance.There are two main types of cheques that are

Open Cheques Crossed Cheques

Open Cheques:-

Open Cheques are those cheques, which are paid across the counter of the bank. Open cheques may be

Bearer Cheques Order Cheques.Bearer Cheque:-

If the drawer orders the bank to pay a stated sum of money to the bearer, i t is called a bearer cheque. Any person who lawfully possesses a bearer cheque is entit led to receive payment of that cheque.

Order Cheque:-

The amount of this cheque is payable to the person whose name is written on the face of the cheque. The amount is paid at counter after identif ication of that person.

Crossed Cheque:-

The amount of this cheque is not paid at counter. The amount of this cheque is transferred to the person’s account whose name is specified on the cheque. Two parallel transverse l ines are drawn across the face of the cheque.

Kinds Of Crossing:-

Legally there are two kinds of crossing

General Crossing Special Crossing

General Crossing:-

In case of General Crossing the payment can only be deposited into the payee’s account only.

Special Crossing:-

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askari bank

In case of Special Crossing the payment can only be made to bank named therein the cheque.

CHEQUE ENCASHMENT PROCEDURE

Cheque Encashment are made in four steps, these are:-

Receiving Of Cheques Verif ication Of Signature Computer Terminal Process Payment Of Cash

Receiving Of Cheques:-

The cash is paid against the cheque of the client. The following points are kept in mind while receiving the cheque from the cl ient.

Cheque is drawn on ASKARI BANK Cheque is not post dated. Amount in words and figure are same. It should be a bearer cheque so the word bearer should not cross.

Verification Of Signature:-

After receiving the cheque the cheque the off icer verify the signature of the account holder and the signature on the cheque. I f the signature is not same it is returned back otherwise forward to computer terminal.

Computer Terminal Process:-

The cheque is received in computer terminal, where the computer operator checks the Askari Bank ance of the account holder. The operator also sees the stop payment instructions are received from account holder or not. After considering these points computer operator post the cheque in account holder ledger and returned back to the officer.

Payment Of Cash:-

After posting the cheque the off icer cancelled the cheque and returned back to cashier. The cashier enters the cheque in cash paid registered and pay against the second signature of receiver on the back of the cheque.

49

askari bankIf the payment is of Rs. 50000 the cashier can make it on its own. I f the amount is greater than Rs. 50000 to Rs. 100,000 the cashier and cash deposit Incharge wil l verify the check and will sing it . Then the payment wil l be made. But, i f the amount is greater than Rs. 100000 to Rs. 1000,000 the manager operation wil l also verify the check and sign it so that the payment can be made. If the amount is greater than Rs. 1000,000 the Branch Manager wil l also verify the check and sign it. Otherwise the payment will not be made.

ACCOUNTS DEPARTMENT

This department is responsible to keep the record of each and every transaction and prepare reports about the amount of deposits and advances and sent to Head off ice or State Bank of Pakistan on monthly, quarterly and yearly basis.

Activities

The accounts department deals with various routine activit ies for the bank. The main activit ies performed by it are:-

Budgeting Vouchers batch Reporting Maintenance & depreciation of f ixed assets Miscellaneous functions

Budgeting

The department of a bank, for a year makes budget of every branch. Fiscal year of bank starts from january 01 and ends on december 31. the accounts department starts preparing budget from october for the next year.

voucher batchThe voucher batch mean the all kind of vouchers wil l be sorted as batch wise for example current a/c voucher makes sprit batch saving a/c batch sprit and in the same way third batch Mise a/c and general ledger a/c voucher makes sprit batches maintained date wise for record of the bank.

Reporting

The accounts department, in the form of reports, clubs the details of various departments together. Each and every minute detail is provided

50

askari bankin weekly, monthly and annual reports. The reports are submitted to head off ice, SBP and to the government .The accounts department prepares many reports, of which the most common are:-

Statement Of Affairs Income & Expenditure Business Report SBP Report Outstand Receipt Report Currency Wise Deposits Report

Maintaining of Fixed Assets & their Depreciation

Accounts department maintains the record of al l the assets and charges depreciat ion on them. The bank normally uses the straight-line method to compute the depreciat ion.It is calculated on monthly basis and charged yearly. Bank not only depreciates the exist ing assets but also the assets but also the assets transferred in and transferred out.

Miscellaneous Functions

The accounts department also performs some other miscellaneous functions l ike

i. Closing Entriesii . Daily activity checking

ii i . Report Generationiv. Minor Expense Recording

Closing Entries:-

Accounts department also passes the closing entries on monthly, 6 monthly and yearly bases to calculate the profit and analyze the overall performance for a certain period.

Daily Activity Checking:-

All the operations performed in various departments of Askari Bank Urdu Bazaar Branch Lahore are computerized. The functions are performed through the customized software . In order to facil i tate double-checking of al l the transactions done, every concerned official also passes vouchers and cheques manually. At the day end all the vouchers passed by various officers working in different departments are given to Accounts Department. Furthermore the I.T. department also prints a very bulky report of al l the transactions / entries which have been fed into the computer system of the branch that day. When

51

askari bankboth of these things are at the desk of concerned off icer, he performs the job of tal lying the daily activity report with al l the corresponding vouchers and cheques, in order to track down any discrepancy.

Report Generation:-

The reports generated by the accounts department on a daily, weekly, monthly, bi-yearly and yearly are writ ten in a proper format. I t is neither necessary nor possible to get acquainted by all of these reports in a short period of t ime. Some of the common reports are:-

Daily Advance and Deposit Position:-

Daily Exchange Posit ion Daily MIS information

Closing Reports:-

Monthly Assets & Liabili t ies Monthly Budget Review Report Monthly Monitory Statement Monthly Performance Review Report Monthly f ixed investment

From these statements, f ive reports carry extreme importance. The f ive reports are:-

Daily position of advances and deposits Statement of affairs Daily exchange position report Fixed assets statement Monthly review of performance.

Minor Expense Recording:-

The account department of ASKARI BANK Urdu Bazaar Branch has to record even the minor expenses of the branch like tea for the staff, stationery for the branch.

FOREIGN EXCHANGE DEPARTMENT

Foreign Exchange involves the import and export activit ies. This department provides protection to the rights of importer and exporter. The function of this department is to serve as a bridge between the importer and exporter in order to sett le a transaction.

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askari bankForeign Exchange Department handles two activit ies:-

1. Import2. Export

Import

Import Department of ASKARI BANK deals with the import of merchandise. Import can be defined as:

“The bringing of commodities into Pakistan from outside by sea, land or air.”

Requirement For The Importer:-

These requirement / document must be fulf i l led from importer before doing the import:-

NTN Sale Registrat ion Cert if icate Membership from Chamber Of Commerce

Methods Of Doing Import

Letter of Credit Contract Advance Payment Open Account

Letter Of Credit

A Letter Of Credit is a financial instrument issued by a bank on behalf of the registered customers It gives surety to the Exporter that his amount is safe.

“The letter of credit is a written instrument issued by the buyer’s bank authorizing the seller to draw in accordance with certain terms and conditions.”

Parties Involved In A Letter Of Credit:-

There are four basic parties involved

1. Importer

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askari bank2. Issuing Bank 3. Exporter (Beneficiary) 4. Advising Bank

Contract

These are the contracts on which there is no liabil i ty of the bank. Bank charge commission against this service.

Main Reason Of Bank Involvement:-

Bank involve in contract for that purpose:-

The record of this foreign exchange entered in State Bank Of Pakistan (SBP) and this record shows that how many Foreign Exchange go outside Pakistan that is helpful to count the total imports of Pakistan.

Advance Payment

In mean some part of payment is made before shipment and remaining is made after shipment. Advance Payment is through TT (Telegraphic Transfer). But State Bank Of Pakistan allows l imit of Rs.10, 000 it means that Advance Payment does not exceeds Rs.10, 000.

In case of Advance Payment the importer show the document to Askari Bank after four months as a proof of import.

Open Account

Open Account is reciprocal of Advance Payment. In this case importer f irst receive the shipment and then make the payment. And there is no limit involved in open Account. Importer makes payment of any amount.

In open Account there is no as such restrictions from State Bank Of Pakistan (SBP) importer simply show the document and make payment after one year means no restriction of t ime is involved.

In al l these four methods Letter of Credit is mostly used in Askari Bank Urdu Bazaar Branch Lahore.

Export

Exports are major sources of earning foreign exchange and play an important role in the economic development of the country. I t helps to uti l ize excess resources of the country.

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askari bank

“Exports mean selling goods to another country.”

Exports of al l el igible commodities through authorized banking channels are admissible under exchange control regulat ion.

Requirement For The Exporter:-

These requirement / document must be fulf i l led from exporter before doing the export:-

NTN Sale Registrat ion Cert if icate Membership from Chamber Of Commerce

As well as the market stabil ity, reputation, f inancial position of the exporter is f irst of al l checked.

Documents To Be Attached For Export Commercial Invoice Bil l of lading Packing l ist

(a) Total quantity(b) Net weight/carton(c) Gross weight/carton(d) Total net weight/carton(e) Total gross weight

Bil l of exchange (original or draft) E-form: Init ial document on which total export proceeding is

based. In this form, all the conditions are given, which are necessary for exports.

Letter of credit: It is written agreement between importer and exporter.

Certif icate of Origin (Form –A) Insurance (if any)

2. Consumer Banking

Credit Cards Hilal Card (Debit Card) Auto Loan Home Loan Consumer Durables RTC’s Money Gram Agriculture Finance

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askari bankCredit Cards

Askari Bank Credit Card master card is accepted at nearly 30 mil l ion

locations in more than 150 countries around the globe and at over

10,000 establishments in Pakistan.

Once the application form and required documents have been

processed and approved, it takes 2-3 weeks t ime period to reach you.

Its exceptional features are as fol lows:

No Joining Fee No Annual / Renewal Fee Low Service Charges Askari Bank once Transfer Facil ity Global Askari Bank Acceptabil ity Revolving Credit Step-By-Step (SBS) Monthly Instal lment Plan Free Supplementary Cards 24-Hour Phone Banking Service All Bil l ing in Pak Rupees Comprehensive Travel Protection Monthly Statement of Account Excit ing Rewards Special Discounts and Promotions at various outlets

DOCUMENTS REQUIRED

For Salaried person:-

Copy of NIC Current Salary Slip / Salary Letter / Proof of BPS (For Govt.

Employees) / Proof of rank (For Armed Forces Personnel). Computerized Personal bank statement (on ban letterhead in

original) for last six months

Additional Documents for Classic Blue Applicants:-

Proof of minimum six-month experience Copy of Graduation Cert if icate or equivalent.

For Self Employed:-

Copy of NIC

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askari bank Computerized personal bank statement (on bank letter head in

original) for last six month.Additional requirements:-

Partnership deed & personal account statements of the partners (if any) for last six month.

Bank letter / cert if icate confirming Proprietorship. Memorandum / Art icles of Association /Form A. Financial Statements Recognized professional degree / membership certi f icate to

professional associat ion.

MANAGEMENT OF THE BRANCHStaff of the branch consists of 30 members:

DESIGNATIONNO OF EMPLOYEES

Branch Manager 01

Operation Manager 01

Credit Manager 01

Foreign Trade Manager 01

Off icer Range I 02

Off icer Range II 05

Off icer Range III 05

Cashier 04

System Administrator 01

Telephone Operator 01

Gun Man 04

Peons 03

Driver 01

Learning From A/C Opening DepartmentThis Branch is having about 7000 accounts but there was only one officer, Mr. Muhammad Shahid to handle this tough work. He has to deal dif ferent people.

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askari bankMy experience in this department was really very good. I learnt how to handle dif ferent customers, how to f i l l Account Opening Form, what are the required documents that should be with you in order to open an account, what types of account Askari Bank is offering to the customers, what are the facil i t ies that an account Holder can enjoy and what are the profit rates Askari Bank is giving to its customers.I have learnt the procedure that an Account Opening Officer has to fol low in order to open and maintain an Account.

Procedure of Opening an AccountThe Account Opening Form:-

When a client comes to the bank, and makes a request for opening of an A/C. The officer says that f irst f i l l up a prescribed application form.

Completion of The Form:-

The name, occupation, and complete address of the person opening the account are written in the columns that are provided in the form. Signatures are obtained from the customer where it is required. These signatures should be usual signatures and he would operate the account with them. Introduction:-

The introduction of a current account holder is accepted for the opening of either a current account or a saving account. The introducer should be Account Holder. The signature of the account-holder introducing the account is obtained at the place provided for in the account opening form. Specimen Signature Card, Cheques Book Requisition, Online Form:-

The signatures of the client are obtained on a specimen Signature card chequebook requisit ion and online form. These specimen signature cards are obtained in duplicate with two signatures on each card from the customer. Every time a Cheque is received for a payment from the client, the signature on the Cheque are verif ied by comparing them with the Specimen Signature Card.

Signature Difference Form:-

The signature of the client are obtained on a signature dif ference form if his / her signature differ from the computerized National Identity Card.

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askari bank

Vernacular Form:-

The signature of the customer is also obtain on the vernacular form if he / she signs in a language other than English.

Account Number:-

When all the formalit ies are completed then the f inal approval of account has to be taken from the Branch Manager. After obtaining approval of the branch manager an account number is allotted to the customer al l the information is entered into the computer. Then that account number is write on the Cheque Book, Specimen Signature cards and account opening form.

Issuance Of A Cheque book:-

After opening an A/C with the bank, the A/C holder receive a letter of thanks from askari bank then after receiving this letter client come to bank and makes a request in the name of bank for the issuance of a Cheque book. The A/C holder mentions t it le of A/C, A/C number, sign it properly. Normally ASKARI BANK issues a Cheque book having 25 leaves for Saving Account and 50 leaves Cheque Book to Current Account Holder. Every Cheque book also contains one leaf that is used for another issue of a Cheque book.

Entry Of A Cheque book:-

Before issuance of a Cheque book, the employee performs certain functions. They include:

Stamping requisit ion slip that is in cheque book. Enters it in the Cheque book issue register. Check whether or not a senior off icer has verif ied the signatures,

if not then f irst gets them verif ied.After entry in the manual register, the employee issues the Cheque book to the A/C holder with his/her signature on the register.

TYPES OF ACCOUNT

Accounts Of General Customers

Minor Account I l l i terate Person Account

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askari bank Joint Account

Accounts Of Special Customers

Individual Account Proprietorship Account Partnership Account Limited Company’s Account Account of Club Societ ies and Associat ion Agents Account Trust Account

MINOR ACCOUNTAccount Opening Procedure:-

The natural guardian who signs both Account Opening Form and Specimen Signature Card can open account in the name of minor.

Title Of Account:-

The ti t le of account should clearly indicate both the names of minor as well as guardian in the fol lowing manner:-e.g. Amir Rafique ( minor) Muhammad Rafique (Guardian)

Special Instructions:-

The guardian will continue to operate the account even if minor attains the age of majority.

Documents:-

Computerized National Identity Card of Guardian Form “B” of minor In case guardian is appointed by the court of law then attested

copy of guardianship cert if icate be obtained and placed on record.

Illiterate Person Account

Before opening such account the i l l i terate person should be informed that he / she cannot issue cheques in favour of any other person.

Account Opening Procedure:-

Title Of Account:-

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askari bank

Name of account holder should be written in block form.

Special Instructions:-

Personal Withdrawal

Documents:-

Copy of Computerized National Identity Card Two attested photographs to be obtained for pasting on AOF and

other on Specimen Signature Card. Thumb Impressions Male -------- Left Hand Thumb Impression Female ------- Right Hand Thumb Impression

Joint Account

These are the account of two or more persons who are neither partners nor trustees.

Account Opening Procedure:- Title Of Account:-

Title of account holder should mentioned the names of al l the joint account holders.

Special Instruction:-

At the time of opening the account clear and specific instructions should be obtained regarding operation of the account and payment of the Askari Bank ance at the death of one or more joint account holders in the following manner:-

The account shall be operate by any joint account holders singly. By either or survivor singly By any two or more joint account holders or by any two or more

survivors jointly. By all the joint account holders jointly By all the survivors jointly.

These instructions as far as possible should be obtained in handwriting of the parties concerned, under the signature of al l the joint account holders.

Documents:-

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askari bank Computerized national Identity Card of al l the joint account

holders.

Mode Of Signature:-

All joint account holders are required to sign as applicant and in the column of special instructions.

Specimen Signature of only those joint account holders are required who are authorized to operate the account.

Individual Account

When a single man or woman opens an account in his or her own name and has the right to operate, i t is called individual A/C.

ACCOUNT OPENING PROCEDURE:-

Title Of Account:-

Title of Account should mentioned the name of the person who operate the account.

Special Instructions:-

At the time of opening the account clear and specific instructions should be obtained regarding the nominee of the account holder means after the death of the account holder who wil l operate the account.

Documents:-

Computerized national Identity Card. Proof of Income if he / she is a salaried person then the pay sl ip

or salary certi f icate of that person.

Proprietorship Account

When the owner of the firm operating singly, open an account in his firm name.

ACCOUNT OPENING PROCEDURE:-

Title Of Account:-

Title of account must be in the name of the proprietorship concern.

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askari bankSpecial Instructions:-

In case of proprietorship concern, the special instruction should cover the style of the account and the name of the person who wil l operate the account as sole proprietor. For example, i f the account to opened is in the name of “Islamabad Cloth Store”, the person who is the sole proprietor should declare as such.

Documents:- Computerized National Identity Card (CNIC) of proprietor. Declaration for proprietorship concern. Proprietorship Stamp Letter of request to open the account on the letterhead of

proprietorship. Third party Mandate, in case any other person has been

authorized by the proprietor to operate the account. National Tax Number (NTN) but i t is optional.

Partnership Account

“Partnership” is a relationship between persons who have agreed to share profits of a business carried on by all or any of them acting for all .

Account Opening Procedure:-

Title Of Account:-

Title of account must be in the name of the f irm as declared by the partners.

Operational Instructions:-

Operations on the account must be allowed strictly in accordance with the instructions given in partnership mandate and Declaration (Part III) in terms of section 25 of Partnership Act 1932.

According to Partnership deed, i f given.

Documents:- Copy of Computerized National Identity Card of all the partners. Copy of registration Cert if icate (i f a registered firm) Letter of request to open the account on the letterhead of

partnership. Partnership Stamp Partnership Deed

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askari bank Third Party Mandate, if third party is authorized to operate the

account. NTN (optional)

Limited Companies Account

Section 2 of the Companies Act, 1913, defines companies as:-“An association of individuals for the purpose of profit, possessing a common capital contributed by the members constituting it, such capital being commonly divided into shares, of which each possess one or more and which are transferable by the owners.”

Account Opening Procedure:-

Title Of Account:-

Title of account should be exactly in the same name and style as mentioned on the memorandum and article of association.

Special Instructions:-

All the special instructions should be given to the bank in the form of Resolution of Board of Director.

Documents:-

Computerized National Identity Card (CNIC) al l the Director attested by company CEO.

Resolution of Board of Director passed under Company’s seal to open account.

Memorandum and Art icle of Association Certif icate of Incorporation Form 29 (B) (Lasted Copy).

Company secretary wil l cert ify al l these copies. List of Directors and authorized signatories. Certif icate of Commencement of Business (for Public l imited

company’s only).

Trust Account

According to section 3 of Trust Act, 1882:

“A trust is an obligation annexed to the ownership of property and arising out of a

64

askari bankconfidence proposed in and accepted by him for the benefit of another, or of another or owner.”

Account Opening Procedure:-Branches are allowed to open the Trust Account subject to the prior approval of Area Manager, after scrutiny of the legal documents by the legal advisor.

Title Of Account:-The account should be opened in the name of the trust. However, if the account is opened in the name of the trustees, the account should not be treated as a joint account, rather i t should be treated as a trust account.

Special Instructions:-

The Banker should examine the trust deed very carefully. Particular attention should be paid to the borrowing powers, status of account in case of death of any trustee or signatory, and provisions for the appointment of new trustees.

Documents:-

Attested photocopy of Computerized National Identity Cards (CNIC) of all the trustees.

Attested copy of Certi f icate of Registration. Certif ied copy of Instrument of Trust / Trust Deed

Mode of Signature:-

All the trustee are required to sign the account opening form, Specimen Signature Card, and cheque book requisit ion sl ip in their off icial capacity.

Clubs, Societies and Associations Account

These are non- trading / non- profit organization and are formed for the promotion of culture, education, recreational activit ies and charitable purpose etc.

ACCOUNT OPENING PROCEDURE:-Title Of Account:-

Account must be opened in the name of organization in the fol lowing manner:-e.g. Islamabad Cricket Association

Operational Instructions:-

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askari bank

All the parties must be in accordance with the clauses of the resolution.

In case of death of office bearer, account should be blocked unti l new resolut ion is received.

Documents:-

Copy of bye- laws / regulat ions. List of members of managing / executive Committee. Copy of cert if icate of Registration (if registered) Copies of CNICs of the members of Executive Committee. List of names of off icials authorized to sign on behalf of the

organization along with the Specimen Signature under the signature of the Secretary of the club / society.

Agent Account

Account Opening Procedure:-

Title Of Account:-

Account must be opened in the name of agent.

Special Instructions:-

Manager should ensure compliance of contract between principle and agent.

Agent cannot delegate powers to third party. Transfer between principle and agent account should be in

accordance to agreement. In case of death / insolvency / insanity of principle agency

transactions are automatically terminated.

Documents:-

Attested photocopy of Computerized National Identity Card (CNIC) of the agent.

Certif ied copy of Power of Attorney.

Learning in Remittance and Clearing Department

There were two off icers in this department one was Miss. Hina Naeem Khan and the other was Mr. Nadeem Zahid.Miss Hina Naeem Khan was handling inward clearing and Outward Clearing. While issuance of other negotiable instruments l ike Pay Order, Demand Draft, Pay Slip etc, were handled by Mr. Nadeem Zahid.

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askari bankIn these departments I saw the clearing process and negotiable instrument that transfer the money.

Clearing Process

Stamps Put On the Cheques:-When the cheques are presented in MCB Bank Branch to be deposited in their respective payee’s accounts, different stamps are put on cheques before their lodgment in outward clearing.

Crossing the cheques:-Crossing means two parallel l ines, drawn across the face of the cheques with or without words written in between them. Crossing may be general or special. In clearing, cheques are crossed special ly. Cheques are stamped with bank’s name between two parallel l ines to constitute special crossing. After the cheques have been crossed specially, the holder cannot receive payment except through the banker named on the cheques crossing saves the instrument to go it in i l legal hands. I f, crossed cheques is lost or stolen, there is no risk involved. So it is an effective means of minimizing the risk of loss.

Clearing Stamp:-After the cheques have been crossed special ly, clearing stamp is put on the cheques and other instruments, with the next date, so these cheques would have to be presented in their concerned drawee banks on the subsequent day.

Endorsement Stamp:-The word endorsement means anything writ ten or printed on the back of an instrument. So endorsement stamp has to put with words “Payee’s account Credited in Askari Bank ,sargiodha”.

National Institutional Facilitation Authority:-After putt ing these three stamps on cheques & other negotiable instruments, they are sent to NIFT. NIFT after segregating the cheques of different banks delivers them to their concerned banks.

Send Report To The Bank:-After delivering the cheques to dif ferent banks NIFT send report to ASKARI BANK

sargodha, then the bank’s staff tal ly the amount of that report for i ts own record.

Delivered Cheques to Respective Banks:-Next morning, these cheques are delivered to the respective banks between 9:00 to 9:30AM. In the same manner, other banks present their

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askari bankclearing drawn on Askari bank. Total number of cheques and their amount delivered to other banks and received from them are written on the Clearing House schedule branch for their payment. After proper scrutiny of cheques, verif ication of signatures and confirmation of balance in the account, the Off icer Clearing Department Debit the customer Account. If any cheque is not passed due to insufficient balance or any other reason, Officer Cash Department returns the same cheque by attaching a cheque return memo containing reason for return.

Credit The Customer Account:-

If the cheques are clear then the ASKARI BANK credit the customer Account. If the bank receives the outward return due to any reason then this cheque is entered into the cheque returned register and bank charges are deducted according to the schedule of charges. Then send the outward and return inward as IBDA (Inter Branch Debit Advise) to Main Branch LDA Plaza. And LDA Plaza sends outward return and inward to ASKARI BANK Urdu Bazaar Branch, Lahore.

PROCEDURE OF SETTLEMENT

Assume that ASKARI BANK got the cheques which are drawn on HBL, bank alfalah , and MCB for amount Rs.50, 000/-, Rs.30,000/-, Rs.15,000/- respectively, i ts total being Rs.95,000/-. I t means that this amount is to be credited to ASKARI BANK account with NIFT. On the other hand the cheques drawn on ASKARI BANK are from HBL, ASKARI BANK and MCB of Rs.15,000/- Rs.75,000/-, and Rs.30,000/- respectively, i ts total being Rs.120,000/-. I t means that this amount is to be debited from ASKARI BANK account . The difference between Rs.95,000/- credit and Rs.120,000/- debit is Rs.25,000/- debit, which means the house is against ASKARI BANK for Rs.25,000/-.

Settlement sheet:-

In clearing department this sheet is prepared and contain detail amount of cheques received, amount of cheques wil l be paid and balance of these accounts.

Demand Draft

Demand Draft is a negotiable instrument, which is drawn by one branch to another branch of the same bank. In case of agency arrangement Demand Draft can also be issued by one branch of the bank payable to other branch of the other bank e.g. DD issued by the ASKARI BANK payable by UBL.

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askari bankExplanation:-

If any person wants to make payment from one city to another city then he can make payment through demand draft. Bank charges a commission for performing this kind of service according to bank rate schedule, which is revised after 6 months. Demand draft may be issued or paid. There are two ways to issue Demand Draft:-

1. Issue of DD against cash payment2. Issue of DD against Debit of the account

The current rate schedule of DD is as fol lows:-

Up to Rs. 10,000 0.25% or Rs.25 Which ever is higher

Rs.10, 001 to Rs. 100,000 0.20% or Rs.40 Which ever is higher

Rs. 100,001 to Rs. 10,00,000 0.10% or Rs.200 Which ever is higher

Rs. 10,00,001 to Rs. 20,00,000 0.75% or Rs.1000 Which ever is higher

Above Rs. 20,00,000 0.06% or Rs. 2000 Which ever is higher

Process of the Issuance of DD:-

When a customer requests ASKARI BANK Urdu Bazaar Branch, Lahore to provide him a DD made on his account or against cash payment for a part icular city l ike Islamabad. Then, after having the total amount including commission demand draft is issued in favor of the specif ied person in that city and is drawn on ASKARI BANK , Islamabad Branch. So, when payee in any bank presents this demand draft, it constitutes the inward clearing of Askari Bank , Islamabad Branch.

ENTRIES

When ASKARI BANK receive the Demand Draft then it pass the following entry:-

Dr. Head Office Account with Treasury

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askari bankCr. Demand Draft Payable Account

When ASKARI BANK issue the Demand Draft then it pass the following entry:-

Dr. Customer AccountCr. Transit Account

Then Dr. Transit Account Cr. Head Office Account with Treasury

At the end of day the Transit Account will be zero (nil).

Entry Of Commission that ASKARI BANK Received From Customer:-

Dr. Customer AccountCr. Commission on Remittances Account

Entry Of Excise Duty that ASKARI BANK Recovered From Customer:-

Dr. Customer AccountCr. Excise Duty Recovered Account

PAY ORDER

Pay order is a negotiable instrument made by the bank, on account of a customer, to pay on order the specified amount to the directed person (payee).

Use Of Pay Order:-

Pay orders are used to make payment or to transfer money, with in the same city. Pay order is always drawn on the bank that has issued it. The main advantage of pay order is that it cannot be dishonored by the bank. Pay order can be endorsed if i t is not crossed. The payee may present pay Order for payment either over the counter for cash payment or the payee may transfer credit to his account.

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askari bankThe current rate schedule of Pay Order is as follows:-

Issuance of Pay Order Rs. 50/- for a/c holder

Rs. 500/- for non-a/c holder'

Cancellation Rs. 100/- for a/c holder

Rs. 100/- for non-a/c holder

Duplicate Issuance Rs.100/- for a/c holder

Rs. 100/- for non-a/c holder

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askari bank

PAY SLIP

“It is a negotiable instrument like cheque issued by the bank on its own account to pay a specified amount to the directed person.”

Use Of Pay Slip:-

Pay Slips are used to make payment by the bank itself against certain expenses incurred; l ike furniture purchased by bank, electricity charges.

Issuance Of Pay Slip

Bank issue a pay sl ip in favour of person, to whom payment is made.

Affixes payee’s Account only stamp. Revenue stamp pasted on it. Entry in bank smart.

Example:-

If bank has purchased furniture (fixed Asset) costing Rs. 40,000 from a company then a pay sl ip in the name of that company is made and, instead of writ ing the issuing date on pay sl ip, date of encashment (realization) is written when it is presented in bank.

Call Deposit Receipt (CDR)

Askari Bank also issues Call Deposit Receipts (CDR).

“It is an instrument like Cheque issued by the bank on account of a customer & in favor of a person, to pay the specified amount”.

CDR’s are issued to make payments, especially when a company goes for some tenders or for purchase of government securit ies. The bank enjoys the benefit of keeping funds deposited until the payment is not made.

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askari bankRupees Traveler Cheque

Askari Bank presents Rs.1,000, 5,000 and 10,000 denominations of travellers cheques, making it very convenient to carry money while travell ing or keeping your  emergency cash safe. The paying bank has to verify the signatures and after verif ication payment is made.

Cancellation of PO, DD & CDR

After issuance of Pay Order, Demand Draft or Call Deposit Receipt by Askari Bank, Urdu Bazaar Branch, Lahore, i f any one of these has to be cancelled by the customer, it is returned in the bank. Then, after deducting the cancellation charges of Rs.100 for PO and Rs. 200 for DD, the remaining (net) amount is paid to the customer.

Advance Tax against Remittances

Advance Tax is deducted on issuance of PO & DD from customers except those who have tax exemption form and credited in Tax on PO & DD account. Tax deducted has to be paid to State Bank of Pakistan (SBP) with in one week of issuance of these instruments.

COLLECTION

All the cheques under collection are called cheques under Collect ion in Askari Bank . There are two types of bil ls for collection:

Outward Bil ls for Collection (OBC) Local Bil ls for collection (LBC)

Outward Bills For Collection

Meaning Of OBC:-

“When an instrument is drawn on a bank, which is located outside the city, its proceeds can be collected through a mechanism called Outward Bills for Collection (OBC).”

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askari bankFeatures:-

Remunerative Transfer of funds between cit ies Collecting Bank work as an agent Collecting Bank is the holder in due course

Procedure

All the cheques are received on one counter along with the paying slips duly f i l led in properly containing part iculars of cheques and account holder. Counter fol io of paying slip is handed over to the customer by putting stamp for “cheque received for collect ion for Askari Bank” on it duly signed by off icer. These cheques are scrutinized and cheques for local clearing are separated from OBCs. Cheques for local clearing are entered in Clearing Register, whereas cheques for collect ion are entered in OBC register. OBC number is al lotted to the cheque from OBC register. Special crossing and bank endorsement stamps are affixed on the cheque.

OBC REGISTER

Date OBC No

Title Of Account

Account No

Drawn On

Mailed To

Instrument No

Amount Rs

Init ial

OBC schedule is attached with the cheque and dispatched to the main branch of that city for collection. If they do not have any branch in that city, then cheque wil l be sent to the Collecting Agent of Askari Bank for that city, and if they do not have any collect ing agent even, then cheque can be sent directly to the drawing branch. Instructions are given on the OBC schedule for the payment of that cheque. Contra-liabil i ty vouchers are also posted in the system. When OBC is realized, collection bank pays the amount through IBCA if it is the same bank or through DD if it is another bank. I f DD is received against OBC, it is presented in the clearing for collection. I f IBCA is received from the branch for the payment of OBC, certain vouchers are posted in the system.

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askari bankOBC REALIZATION

Commission Postage Net Amount

Date Of Payment

Initial Remarks

Entries

Lodgment Entries:-

Dr. Customer Liabil ity

Cr. Banker Liabili ty

Realization Entries:-

Dr. Banker Liabili ty on OBC

Cr. Customer Liabili ty on OBC

(Reversal of the Contra Liabil i ty)

Dr. M.O Account

Cr. Customer Account

(For the amount of the instrument)

Dr. Customer Account

Cr. Postage Charges

Cr. Commission on OBC

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askari bankLocal Bills For Collection

If any other bank sends a cheque of Askari Bank , it is Inward Bil l for

Collect ion. Askari Bank remits money after checking the balance of the

customer account.

The process of collection starts when the cheques of Askari BankLtd.

Are received from other banks. Then these cheques are sent to the

Head Office Rawalpindi, which sends the cheques to SBP for clearing

and get the confirmation of cheque and credit advice. Main activity of

clearing is performed by Head Off ice, which contacts other banks

through SBP.

Entry

Dr. M .O Account

Cr. Customer Account

Learning from Accounts & Finance Department

There were two off icers in this department; Mr. Atif and Mr. Nouman

They have divided their work between them. Mr. Atif handles Report ing

and Mr. Nouman handles daily activity checking.

I used to help Mr. Nouman in Daily Activity checking, sorting and

counting of vouchers and how to calculate the deprecations of al l f ixed

assets and how to prepare the daily advances and deposits statement,

Daily MIS information, Foreign Currency / Exchange posit ion (Currency

UK Pounds, Currency Euro, Currency US Dollars). I learnt from Mr. Atif

the items of the Askari Bank ance Sheet of Bank and saw the format of

dif ferent reports. He helped me to understand his work. He told me

about the reports that he has to prepare & the purpose of those reports.

It was one of those Departments in which Customer interaction is not

involve rather paper interaction is important.

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askari bank

Learning in Home Finance

In Home Finance there was one off icer – Mr. Kashif. I saw few

customers in this department. I learnt what the debt to equity rat io is in

Home Finance, how to calculate instal lment, what are the documents

required to get this product, what the eligible criterion is for Home

Finance Agreement, and what is the procedure and activit ies of this

department. What is that maximum limit. What are requirement to apply

for this Finance.

Steps to Arranging ASKARI BANK Home Finance:-

ASKARI BANK provides you with all the information you need

about Askari BankHome Finance. This can be through a face-to-

face meeting with our  Relationship Officer, or over the telephone,

or through the post.

You give some basic information about your income and the

amount you need so that ASKARI BANK can give you an

agreement in principle.

Once you have decided on the amount you want, you complete an

application form and pass it on to us, together with the required

documents.

ASKARI BANK makes some inquiries about your financial

circumstances.

It carryout a valuation of the property and verif ication of your

income.

Once it has carried out all the init ial processing, ASKARI BANK

send you our offer through a “Facili ty Advice Letter”.

You sign the Facil ity Advice Letter and return it to ASKARI BANK

Its Documentation Control Centre will get in touch with you to

complete

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askari bankFinance & Security documentation including legal opinion on the

ti t le documents of the property and also the insurances.

You sign the Finance Agreement and Charge documents.

ASKARI BANK legal advisor will accompany you to the Registrar’s

office on the appointed date with our cheque against the financing

for conveyance of the property and your home f inance begins.

Learning from Trade Finance

This was a new department in Askari Bank so there was only one

officer whose name was Mr. Hafiz Farrukh who had experienced in

trade finance. I learnt the dif ferent methods of Trade Finance,

requirement of importer and exporter before doing import and export,

requirement of opening of L/C and procedure of opening L/C, I read L/C

that helped me understand that what things would be included in i t. In

this department few Customers were seen because this was a new

department and it will take t ime to generate profits for the bank.

Requirement Of Opening Letter Of Credit

For opening L/C, the importer has to submit the fol lowing documents:-

Performa Invoice

Application For Import

Annexure B

Insurance of consignment

Promissory Note

L/C Margin

L/C Commission

Clauses of Letter of Credit

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askari bankA letter of credit contains various clauses prominent of them are:

Type of L/C

Amount

Description Of Goods

Trans-shipped / Part-shipped or not.

Collection Charges

Validity Period Of L/C

Import Process

An L/C form is f i l led.

The customer prepares insurance document from any insurance

company.

Filled the SBP Application form that is called Appendix B.

Performa Invoice is Prepared.

Undertaking from the customer on letter Head.

Prepare four copies of Form I (Form I explain the detail of import

that are helpful for the SBP.

Approval From Area Office

Prepare voucher and make entries in the system.

Preparation of L/C

These forms are then sent to the Swift Centre of ASKARI BANK .

Swift Centre Machine:-

It is the fastest and the safest mode of f inancial

communication in the world.

These are according to the rules and regulations of ‘UCP-

500’ just l ike prudential regulations of SBP.

Now this is received by the exporter’s bank.

When ASKARI BANK receives shipment documents and

documents are either rejected or accepted within 7 days.

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askari bank If accepted, the payment from the importer is made.

An IBCA is received of that amount and send to the exporter’s

bank.

Now during these transactions, both the banks receive profit in

the form of commission.

ASKARI BANK startly receives commission / charges from

the importer.

Conversion of foreign currency into Pakistan rupees.

Payment Against Document (PAD)

In case the payment is not made, then an account of PAD is opened.

The bank the issuing bank on the customer’s behalf of a letter of

credit, pays the negotiating or advising bank, and debits the PAD

account, t i l l i ts payment by customer. Until the realization of the

amount a full set of documents representing ti t le to the goods

shipped by the foreign exporter, is held by the bank as security.

Dr. Payment Against Documents (PAD)

Cr. Bank Current Account

When the importer brings payment then,

Dr. Current Account

Cr. Payment Against Documents (PAD)

Export Procedure:-

Receipt of Letter Of Credit:

Issuance of E-Forms that is verif ied by an authorized signatory.

There are four copies of i t.

Copies Of E-Form

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askari bank Original: is sent to the custom officer

Duplicate: Bank receive the duplicate

Triplicate: is sent to the State Bank Of Pakistan

Quadruplicate: is kept by the exporter for his personal

record.

Verif ication of E-Form

Export Documents

Scrutiny Of The Documents

Dispatch

Realization of Export Proceeds .

Learning in Corporate & SME Finance

This department was at second floor of the branch. This department is

giving a huge amount of return to the branch. There were two officers

Mr. Irfan Ahmad Khan and Mr. Atif . I learnt that which assets could be

leased through this department. What are the documents that are

required from different type of client l ike sole proprietorship,

Partnership, company and trust. How the risk can be evaluated.

Preparations of offer latter, Credit l ine proposal, approval process,

Borrower’s Basic Fact Sheet for SME’s, Financial Statement of

applicant.

Learning From the Car Finance Department

One officer in this department, whose name was Mr. Shakeel used to sit

the second f loor of the branch.

Although the Urdu Bazaar Branch was small but sti l l the demand for

f inanced cars through Askari Banklead this department to prosperity.

This department handles a large number of customers daily and,

without overstatement; this department is the third “busiest” department

after the Account Opening

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askari bankDepartment. It requires constant customer interaction and requires high

level of intel l igence to screen the validity of the customers.

Where as sound marketing skil ls are required to actually force the walk-

in customer to select Alfalah Car Financing, st i l l stronger skil ls are

needed to scan the incoming customer for validity. I learnt how to face

the customers conveniently, how roper f i les should be maintained, how

to apply for a car, what are requirement to apply for this Product, what

is that maximum limit, what is the procedure to this department.

Branches NetworkNorth Region 30

Central Region 41

South Region 44

Islamic Banking Branches 06

Offshore Banking Unit 01

Total Branches 122

Credit Card Centers 06

Retail Banking Centers 06

Business & Operational Review

During 2006, Askari Bank continued with its growth momentum and

posted substantial earnings despite highly competit ive business

environment. Although monetary t ightening helped in reducing

inf lationary pressures in the economy during fiscal 2006, aggregate

demand remained high as indicated by the strong GDP growth, high

growth in private sector credit, sluggish decline in core inf lation and

large external account deficit .

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askari bank

The year on year growth in private sector credit remained strong,

although down from the phenomenal growth witnessed last year. The

slowdown in private sector credit was not broad based and was mainly

due to net retirement by sugar and cotton spinning sectors.

Corporate Banking

This business in managed by a central corporate banking division

based at head office Rawalpindi and Supported by dedicated marketing

and back off ice units in Karachi, Lahore and Rawalpindi. The division

maintains a diverse portfolio and primarily offers Structured f inancing

Solutions to cater for the business needs of its clients. During 2006,

corporate banking further expanded its customer base and new

relationships were established in telecommunications sectors, fuel and

energy, and ferti l izer sectors. In order to enhance focus on relat ionship

management and service quality, more dedicated and experienced staff

is being assigned to this division.

The corporate Banking will continue to play a major role in loan

syndications and structured financing transactions with the objectives

of providing a range of corporate banking solutions to its valued cl ients.

Products Lines

Here we discuss the products which are given by us to our customer

facil i tations. There is many product as followed.

CONSUMER BANKING SERVICES

ConsumerBanking Services

IslamicBanking Services

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askari bank

Personal Finance

Personal Finance is a parameter driven product for catering to the needs of the general public belonging to different segments. One can avail unlimited opportunities through Askari Bank's Personal Finance. With unmatched finance features in terms of loan amount, payback period and most affordable monthly instal lments, Askari Bank's Personal Finance makes sure that one gets the most out of his/her loan.

Once a good credit history is established, the door to opportunity opens

much wider.

 Personal Finance

Mortgage Finance

Business Finance

Smart Cash

Auto Financing

Cash Card

Prof i t / Markup Rates

 Is lamic Corporate Banking

Islamic Investment Banking

Islamic Trade Finance

Islamic General Banking

Islamic Consumer Banking

Declared Weight ages

Prof i t Rates AgricultureFinance Solutions

Corporate & Investment Banking

Kissan Ever Green Finance

Kissan Tractor Finance

Kissan Aabpashi Finance

Kissan Livestock Development Finance

Kissan Farm Mechanizat ion Finance

Kissan Transport Finance

 Corporate Banking Divis ion

Term Loans

Fund Transfers / Remit tances

Investment Banking Divis ion

Project Finance

Islamic Finance

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askari bankOne of the quickest approval processes aroundOne 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 instal lments, Askari Bank’s

Personal Finance makes sure that you get the most out of your loan. No

matter what your need is, Askari Bank has more ways to serve you than

ever before.

Product Featuring:

Borrower: Resident Pakistani Nationals.

Facility: Term Finance

Financing Limits: Maximum upto Rs. 500,000/. (Clean)

  Maximum upto Rs. 1 Mil l ion. (Secured)

Tenor: Maximum upto 5 Years

Repayment: Monthly Installments

Markup Rates: Competit ive

Servicing: Available at al l Askari Bank branches

Askari Bank ance Transfer Facility:

Available

Eligibility to Apply:

Age: Between 21 to 65 years.

Income: Minimum gross monthly income of Rs.

10,000/- only.

Financing Limits:

Maximum upto Rs. 500,000/. (Clean)

Employment: a) Salaried: Minimum length of

confirmed service with

present employer is 6

months with a total length

of 1 year service.

85

askari bankb) Self Employed:

Minimum 1 year in

business.

Charges/Fees: As per current schedule of charges.

When you are working towards your financial goals, how you borrow

can be just as important as how you invest. The right borrowing options

can improve your savings, your cash flow and your abil i ty to take

advantage of personal or business opportunit ies.

So, choose the right options and call us now to enquire about your

entit lement amount and exclusive service. At Askari bank we make

every effort to serve our customers with care.

Not restricted to new financing, under Personal Finance scheme, we

offer extended facil i t ies, which are:

Back to Original:

Under this scheme borrower can avail extended amount of f inance upto

the uti l ized allocated amount, if his/her repayments are regular.

Askari Bank ance Transfer Facility:

It gives the customer the opportunity to pay off his/her outstanding

dues on their credit cards or other loans at a rate of interest much

lower than what one pays on them. That not only frees up their credit

l imit, but cost of servicing the debt is greatly reduced.

Computer Loans:This scheme was launched to promote the I.T. technology in the

country. In this regard, we have signed MOU’s with Multinational

companies and large local corporates including schools & colleges.

86

askari bankDream Life (Financing for Consumer Durables):

We are the financial market player in delivering quality service to

customers with highly professional standards. We have joined hands

with various Electronic Companies for sale, of the domestic appliances

against consumer f inancing. Under this scheme, Askari Bank is

f inancing products of these companies, which would benefit those

people who can only afford to buy home appliances on instal lments due

to l imited resources. In addit ion to this, we have also signed

agreements with other top manufacturers of automobiles for f inancing

of motorcycles to the general public at most competit ive rates.

We have established relationship with almost all top manufacturers and

dealers of:

Mortgage Finance

Askari "Mortgage Finance" offers the convenience of owning a house of

choice, while l iving in it at its rental value. The installment plan has

carefully designed to suit both the budget &

87

askari bankaccommodation requirements. It has been designed for enhancing

financing facil i ty init ial ly for employees of corporate companies for

purchase/ construction/ renovation of house.

Ever since the inception of l i fe, shelter has been rated among the

primary needs of mankind. Owning a home for oneself sti l l remains an

exclusive dream for many. Askari Bank has made the realization of your

dream to have a house of your very own possible. Whether you plan to

build a house, tailor made to your requirements or buy a constructed

house, Askari mortgage finance enables you to pursue your goal

without any problems

Product Featuring:

Borrower: Resident Pakistani Nationals.

Financing Limits: Maximum upto Rs. 30 Mil l ion.

Tenor: Maximum upto 20 years.

Repayment: Monthly Installments.

Prime Security: Mortgage of property.

Markup Rates: Competit ive

Servicing:Available at al l Askari Bank

Branches

Askari Bank ance Transfer Facility:

Available

Askari Bank ance Transfer Facility:

Available.

Eligibility to Apply:

Age: Between 21 to 65 years.

88

askari bankIncome: a) Salaried: Minimum gross monthly

income of Rs.20,000/- only

and a permanent employee

with at least 2 years of

service including present

employer.

b) Self Employed: Minimum length of 1 years

in business.

Charges/Fees:

As per current schedule of charges.

Business Finance

In pursuance of the National objectives to revive the economy of the

country, ACBL is providing loans to small and medium size business

enterprises under Askari Bank's Business Finance Scheme. Our goal is

to offer a loan, which enables business community to receive the

financing required by them based on their cash

flows. Our valued customers can enjoy the

convenience of gett ing financing on attractive

terms with the minimum processing turnaround

time.

You always wanted to put in that extra money into your business, which

makes it grow... and grow!. Now you can stop worrying about your daily

cash requirements, and start enjoying our unique Askari Business

Finance facil ity.

Available upto 60% of the assessed market value of your residential

property, through equitable/token mortgage.

Product Featuring:

Borrower: Resident Pakistani Nationals.

89

askari bankFacility: Running Finance/Term Finance.

Financing Limits:

Maximum upto Rs.1.0 Mill ion

Maximum upto Rs.50.0 Mill ion

Primary Security:

Residential & Commercial / Built up Properly &

Land.

Mode of Financing:

Running Finance: One year l ine of credit

(renewable).

Repayment: Running Finance: Monthly debt servicing on the

outstanding Askari Bank ance.

Markup Rates:

Competitve.

Servicing: Available at al l Askari Bank Branches.

Askari Bank ance Transfer Facility:

Available

Eligibility to Apply:

Age: 21 to 65 Years.

Borrowers: Resident Pakistani Nationals.

Business Requirements: Maximum upto Rs. 500,000/.

(Clean)

Employment: Minimum one year's business or

professional experience in the

present business

Charge/Fees: As per current Schedule of

charges

Enjoy the convenience of most attractive financing with minimum loan

approval turnaround t ime. Don't wait act now, to enhance your financial

resources

90

askari bankSmart Cash

This personal l ine of credit would be set up with a specified credit l imit

upto Rs. 500,000/-

Product Featuring:

Borrower: Resident Pakistani Nationals

Facili ty: Personal Line of Credit.

Financing Limits:   Maximum upto Rs. 500,000/-(Clean)

Maximum upto Rs. 1 Mil l ion (Secured)

Tenor: One year (renewable).

Repayment: Monthly debt servicing on the

outstanding Askari Bank ance.

Markup Rates: Competit ive.

Servicing: Available at al l Askari Bank Branches

Askari Bank ance

Facili ty: Transfer Available.

Eligibility to Apply:

Age: Between 21 to 65 Years.

Income: Minimum gross monthly income of Rs. 25,000/-

only.

Employment:

 

a) Salaried: Minimum length of confirmed

service with present employer is six months

with a total length of one year service. b) Self

Employed: Minimum 1 year in business.

(against security).

Charges/Fees: As per current schedule of charges.

91

askari bankAuto Financing

Yet another of our products, Askar offers the most convenient and

affordable vehicle- f inancing scheme, which provides our valuable

customers an opportunity to own a brand new vehicle of their choice.

With minimum down payment, lowest insurance

rates and widest range of available car makes

and models, Askcar offers the best value to our

esteemed customers.

Askari Bank offers you the most convenient and affordable vehicle

financing scheme to help you own your favorite brand new car.

Product Features:

Borrower: Resident Pakistani Nationals

Facili ty: TermFinancing

Financing Limits:   Rs: 100,000/- to Rs: 3.0 Mil l ion

Repayment: Monthly Installments

Markup Rates: Competit ive

Askari Bank loon

Payment:Available

Minimum Income:

Salaried: Rs: 10,000/-,

Self Employed Businessman: Rs:

25,000/-

Charge / Fees:As Per current Schedule of

Charges

Auto Insurance: Mandatory

Financing Tenor Up to 7 years

ASKARI CARD

92

askari bankASKCARD means freedom, comfort, convenience and security, so that

you can have retai l transactions with complete peace of mind.

ASKCARD is your new shopping companion which enhances your

quality of l i fe by letting you do shopping, dine at restaurants, pay your

uti l i ty bil ls, transfer funds, withdraw and deposit cash through ATM

anywhere, anytime.

Travelers Cheques

The range of our products and value added services enhances with

introduction of Rupee Travelers Cheques (RTCs) launched in March

2002. In spite of our constraint on issuing higher denomination of RTCs

against restrictions imposed by the Central Bank of Pakistan we have

been striving to attain our shares with sizeable portfolio.

Askari Commercial Bank Limited has always remained at forefront in

introducing innovative and unique products in banking sector. Our

financial instruments provide greater f inancial freedom and security in

an unmatched way to our valued customers.

Askari Bank offers you its "Rupee Traveler Cheques" el iminating all

f inancial r isks while traveling. So avoid risk of carrying cash through

Askari Bank's Rupee Traveler Cheques.

Your Best Traveling Companion.

Why Askari Bank's Traveler Cheques?

1. Free Issuance.

2. Free Encashment.

3. Plus commission for the Customer at the time of encashment i f

retained for a specific period.

4. Nationwide acceptabili ty.

5. Facili ty of encashment in cash to the purchaser.

6. Facili ty of encashment through clearing.

93

askari bank7. No purchasing l imit.

8. Valid until encashed.

9. Easily Transferable.

10. Account relationship not mandatory.

11. Fastest refund procedure in case of loss/theft.

12. Safe & Secure due to foreign print ing with mult iple security

features.

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

Askari Bank.

14. No withholding tax on sale or encashment Subject to change

as per Govt. rules.

Value Plus Deposits

The first l iabil ity product launched by this unit is showing a remarkable

acceptabili ty in the market. The growth of this product is witnessed by

its share, which has presently reached at Rs. 1,079 Mil l ion even after

lowering down the profit rates due to sufficient l iquidity in the market.

Profit / Markup Rates on Retail Products

Rates of Profit Paid to Value Plus A/C Holders & on ABIC

Particulars Profit RatesValue Plus Saving DepositsRs. 10,000/- to Rs. 24,999/- 2.50%

Rs. 25,000/- & above 3%

Value Plus Time DepositsThree months 5%

Six Months 5.50%

One Year 6%

Investment CertificatesFirst Month 4%

Second Month 4.50%

Third Month 5%

94

askari bank

Commission being paid to customers on retention of RTC for a period of

One Month, @ 0.1% of face value of RTC.

Lending Product Rates

Particulars Markup Rates

Personal FinanceUpto 3 Years 18%

Upto 5 Years 22%

Smart Cash

1 Year (Renewable) 22%

Business Finance1 Year 1 Year Kibor + 3% to be

reviewed on yearly basis

Mortgage Finance20 years maximum 1 Year Kibor + 3% to be

reviewed on yearly basis.

Auto Financing 13% to 15%

Islamic Banking Services,

95

askari bankIslamic Banking was launched under the brand 'Askari Islamic Banking',

by opening 6 dedicated Islamic Banking branches in major cit ies of the

country. Further expansion is planned with improved capabil i t ies for

offering products conforming to the Shariah principles.

Askari Islamic Banking opens the doors for Halal banking solutions. Our

objective is to put in place an efficient banking system support ive to

economic just ice and welfare of society in l ine with Shariah standards.

A comprehensive range of Islamic Banking products and services is

being offered, in order to meet customer's demand of Shariah

Compliant Banking, in the following areas:

Islamic Corporate Banking Islamic Investment Banking Islamic Trade Finance Islamic General Banking Islamic Consumer Banking

Islamic Banking products have been approved by the Bank's Shariah

Advisor. As per Shariah requirements, funds and products of Islamic

Banking are managed separately from the Conventional Banking side.

All funds obtained, invested and shared in Halal modes & investments,

under supervision of the Shariah Advisor.

Profit Rates for the Month of December - 2009

Local Currency

96

askari bankAccount Category Profit Rate

Ahsan 10,000-99,999 3.04%

Ahsan 100,000-999,999 4.00%

Ahsan 1,000,000-9,999,999 5.09%

Ahsan 10,000,000-49,999,999 6.36%

Ahsan 50,000,000-99,999,999 9.20%

Ahsan Masrafi 100,000,000 & Above 8.35%

Ahsan Masrafi COI 1 Month 8.95%

AHCAAM 1 Month (100M & above) 10.20%

AIIC- 3 Months ( Profit at maturity) 8.40%

AIIC- 6 Months ( Profit at maturity) 8.50%

AIIC - 1 Year (Profit on monthly basis) 8.15%

AIIC - 1 Year maturity (Profit at Maturity) 9.50%

AIIC - 3 Years monthly (Profit on monthly basis) 8.40%

AIIC - 3 Years (Profit on quarterly basis) 8.65%

AIIC - 5 Years monthly (Profit on monthly basis) 8.91%

AIIC - 5 Years quarterly (Profit on quarterly basis) 9.16%

Foreign Currency

USD Ahsan 3,000-999,999,999 1.59%

Note: Rates are declared on a monthly basis

97

askari bank

ASKARI BANK LIMITED

ISLAMIC BANKING SERVICES DIVISION

Declared Weight ages Date: 31.12.2009

The following will be the declared weight ages, for the Month of

January, 2010.

PKR Accounts:

Account Category

Profit Distribution Period/ Tier group(s)

Weight age

Assigned

AHSAN Account 10,000 to 99,999 0.50

AHSAN Account 100,000 to 999,999 0.75

AHSAN Account 1,000,000 to 9,999,999 1.00

AHSAN Account 10,000,000 to 49,999,999 1.25

AHSAN Account 50,000,000 to 99,999,999 1.40

AHSAN Account 100,000,000 & Above 1.75

AHSAN MASRAFI 10,000,000 to 99,999,999 1.00

AHSAN MASRAFI 100,000,000 & Above 1.40

AHSAN MASRAFI

COI – 01 Week

Maturity

10,000,000 and above 1.00

AHSAN MASRAFI

COI – 02 Weeks

Maturity

10,000,000 and above 1.25

AHSAN MASRAFI

COI – 01 Month

10,000,000 and above 1.40

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askari bankMaturity

AHSAN MASRAFI

COI – 03

Months Monthly

10,000,000 and above 1.60

AHSAN MASRAFI

COI – 06

Months Monthly

10,000,000 and above 1.75

AHCAMM-01

Month

50,000 to 9,999,999 1.30

AHCAMM-01

Month

10,000,000 to 49,999,999 1.50

AHCAMM-01

Month

50,000,000 to 99,999,999 1.60

AHCAMM-01

Month

100,000,000 & above 2.00

AIIC- 3 Months 3 Months 1.50

AIIC- 6 Months 6 Months 1.55

AIIC- 1 Year Monthly 1.60

AIIC- 1 Year Quarterly 1.65

AIIC- 1 Year Maturity 1.70

AIIC- 3 Years Monthly 1.65

AIIC- 3 Years Quarterly 1.70

AIIC- 3 Years Maturity 2.10

AIIC- 4 Years Monthly 1.70

AIIC- 4 Years Quarterly 1.75

AIIC- 4 Years Maturity 2.15

AIIC- 5 Years Monthly 1.75

AIIC- 5 Years Quarterly 1.80

AIIC- 5 Years Maturity 2.20

AKIDA-3 Months Maturity 1.70

AKIDA- 6 Months Maturity 1.75

AKIDA- 1 Year Maturity 1.80

AKIDA- 2 Years Maturity 2.10

99

askari bankAITQAD- 3 Years Six monthly 1.85

AITQAD - 3Years Maturity 2.15

AITQAD -5Years Six Monthly 1.90

AITQAD - 5Years Maturity 2.25

AITQAD- 7 Years Six Monthly 2.00

AITQAD- 7Years Maturity 2.40

HO Mudarabah

Account

0.50

HO Draw Down

facil i ty on

Mudarabah

Account

2.00

Equity/ Bank 1.00

Profit sharing ratio in respect of special pools will be as per agreement

between the Bank and Depositor (Rab-ul-Maal).

PROFIT SHARING RATIO FOR GENERAL POOLAskari Bank Ltd-Islamic Banking 50%

Depositors 50%

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askari bank

Agriculture Finance Solutions

The role of agriculture in Pakistan

economy is of pivotal nature. Due to

diverse geographical and cl imatic

conditions the country has tremendous

potential for growth and development in

agriculture. However, adequate and

timely financial assistance to the farmers

wil l improve production potential of agriculture sector in the country.

The modern concept of agricultural credit envisages establishment of

an eff icient institutional credit system to serve as a package of credit,

supplies and knowledge for the overall strength of the farmers who at

present suffer from low productivity and financial insecurity. A

successful credit evaluation system, therefore, should have the basic

ingredients to provide adequate amount at the right t ime and in the

right form to help farmers in making a productive use of loan funds.

ASKARI KISSAN AGRICULTURE FINANCE PROGRAM

The Askari Kissan Agri Finance Program (AKAFP) has been designed

to meet ON FARM / OFF FARM credit requirements of farmers on the

most convenient, f lexible, easy terms and condit ions. The program

features:

A broad array of credit l ines designed to meet farming

requirements.

Repay and borrow at your convenience on revolving credit basis

at lowest mark-up rates renewal able after three years.

Convenient repayment terms based on cash flow abil it ies.

Availabil ity of leased Tractors / Transport without Land /

Collateral.

101

askari bank No Hidden Cost.

Availabil ity of interest free package for inputs and tractors etc.

No Pre-adjustment penalt ies.

Earn prompt payment Bonuses and reduce f inancial costs.

Insurance cover of leased assets, animals, crops and li fe

assurance of borrowers.

AGRICULTURE FINANCE PROGRAM Kissan Ever Green Finance

Kissan Tractor Finance

Kissan Aabpashi Finance

Kissan Livestock Development Finance

Kissan Farm Mechanization Finance

Kissan Transport Finance

Kissan Ever Green Finance

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

dignity, prosperity and freedom to the ti l ler of the land. The program is

designed to help small, medium and large farmers in meeting their

short-term input requirements against one t ime sanction and

automatically renewable upto 3 years subject to

its stipulated uti l ization/periodical

adjustment. The credit l ine is sanctioned in

the l ight of available cash f lows and input

requirements i.e. Seeds, Ferti l izer &

Pesticides etc.

Salient Features of the Program are given as:

Farmer open a profit earning "Askari Ever Green Account" with

the branch. A special cheque book is issued to the farmer.

102

askari bank Revolving credit l imit as "Ever Green Agri Finance" is available to

the farmer against security i .e mortgaged charge on agri land

through Zari Pass Book.

Hassle free, automatic renewal upon adjustment of entire

principal amount with mark-up once in a year. rmers both ways. If

the account is in credit, i t earns profit , otherwise it provides is

eds.

The mark-up is charged for the actual

days the finance is uti l ized.

Profit on credit Askari Bank ances wil l be

paid on half yearly basis as declared by

the bank on PLS savings accounts.

Salient Features of the Program are:

ed water resources.

Salient Features of the Program are:

To facil i tate the farmer, to overcome the

scarcity of water.

To develop mechanical water resources,

sprinkler and drip system etc.

To avoid traditional / ineff icient modes of irr igation and waste of

available water.

To manage natural / available resources through water

KISSAN LIVE STOCK DEVELOPMENT FINANCE

In order to supplement the income of the farmer, Askari Bank has

launched a program enabling the farmer to purchase Milch Animals,

Goats, Sheep, Poultry and Fisheries without incurring extra expenditure

because of availabli l ity at his farm. He wil l be able to get milk, meat

and eggs etc., which normally do not form part of his diet. This program

103

askari bankhas the added advantage that besides fulf i l l ing his own family’s

consumption needs he wil l be able to market the surplus and earn

additional income. This wil l further improve their cash flows to repay

their other Loans / Revolving Credit on due date.

Salient Features of the Program are: The program will provide regular day to day income to the farmer

to meet his own consumption and surplus to be marketed.

This will revive / accelerate and supplement the income

generating capacity.

It wil l enhance the repayment capacity of the farmer.

KISSAN FARM MECHANIZATION FINANCE

Beside Power at the farm i.e. Tractor, the benefits / advantages of

power are maximized with the use of Mechanical Support i.e. modern

and improved equipments which essential ly complement one another

due to their cost effectiveness and t ime efficiency. Askari Bank has

launched an Askari Kissan Farm

Mechanization Finance for the assistance of the

small farmers and provide finance for farm

equipment, trai ler, thresher, dril ls &

rotavators etc.

Salient Features of the Program are:

104

askari bank Under this program the farmer wil l get benefit of use of modern

agricultural tools, implements and equipments which are cost and

time effective.

Improves per acre yield of agri crops and quality of agriculture

produce to get good price in the market.

Helps to match / compete with international standards for

exportable agriculture produce.

KISSAN FARM TRANSPORT FINANCE

A grave handicap that affl icts our farmers is their inabil ity, due to lack

of proper facil i t ies, to take their produce to the market through eff icient

means of transportat ion. This adversely affects the freshness, quality of

the product and denies them the desirable Price-Fetching opportunity.

Conversely, they lack mobil i ty to acquire much needed inputs essential

for their farming needs. One can safely conclude that i f provided with

appropriate and speedy transport, the farmer can benefit by enhancing

his sell ing abil i ty and thus increase his income / cash flow. i t is

pert inent to mention that a number of Banks, Leasing Companies and

Private Agencies have geared their marketing efforts to concentrate on

and have mainly captured the urban markets. There is no support

provided to cater to the transport needs of deserving rural farmers

community. Askari Bank true to its commitment, has taken the lead to

launch Askari Kissan Farm Transport Finance

Salient Features of the Program are: To increase mobil i ty and access of the

farmer to the markets.

To lower the burden / cost of transportation

against hired transport.

To create awareness of market movements

in order to obtain maximum price of their produce.

105

askari bank This will also supplement the income of the farmer which wil l

ult imately enhance the repayment capacity of the borrower.

Additional income can be generated if used for hired services to

the fel low farmers.

Corporate & Investment Banking Group (CIBG)

As Askari Bank, we understand the unique business requirements of

our corporate and institutional cl ients, and accordingly, strive to meet

their expectations through the provision of a customized, relat ionship

based banking approach, through the Corporate and Investment

Banking Group (CIBG).

CIBG is a one-window operation that provides all requisite banking

services for our corporate cl ientele in an eff icient, dependable,

consistent, and competit ive manner – the objective being to become

your “bank of f irst call” for al l your f inancial needs.

CIBG is specifically structured to provide dedicated banking services

and products to its corporate customers through two key divisions.

Corporate Banking Division Investment Banking Division

Corporate Banking Division (CBD)

CBD is your long-term business partner that is geared to help you in

meeting your business growth objectives. The business is managed by

a team of professionals who understand your requirements and can

firmly stand by your side.

Dedicated relat ionship managers for each of our corporate cl ients

ensure your satisfaction, which is our top priority. Our relationship

oriented outlook focuses upon providing a complete array of tailored

106

askari bankf inancing solutions, that are practical and cost effective, some of which

include.

Working Capital Facil it ies

Term Loans

Structured Trade Finance Facili t ies

Letters of Guarantee

Letters of Credit

Fund Transfers / Remittances

Bil l Discounting

Export Financing

Receivable Discounting

Investment Banking Division

IBD provides value-added, special ist services and products through a

dedicated team of professionals, with world-class skil ls, to provide

customized solutions to help our cl ients meet their strategic objectives.

IBD is responsible for seamlessly originating, executing and distributing

all forms of investment banking transactions ranging from syndicated

loans to complex structured and project f inancing transactions. Some

examples of products offered by IBD include:

Strategic Advisory

Privatization Advisory

M & A Advisory

Askari Bank ance Sheet Restructuring

Syndications

Project Finance

Structured Finance

Islamic Finance

Private Placements of Debt and Equity

107

askari bank Issuance and distribution of Term Finance Cert if icates, Sukuk

Bonds, and Commercial Paper

Underwrit ings

Capital Market Hybrid Products

International Division

International Division strives to place at the disposal of our branch

network, efficient correspondent banking arrangements on gloAskari

Bank basis, thereby catering the needs of our client diaspora. In short,

this is made possible through a variety of arrangements with various

banks which, amongst other benefits, ensures placement of suitable

Credit l ines at our disposal by our counter-party banks to facil i tate

Foreign Trade and Treasury related activit ies.

Today International Division boasts of mult i-faceted correspondent

banking relationships with over 200 Banks in 77 countries around the

world thereby improving the capacity of our branches in serving their

clients.

Alongside, International Division is entrusted to arrange

evaluation/approval of exposure limits favoring various local/overseas

banks and Non-banking Financial Institutions with whom our Treasury

and branches deal on day-to-day basis. Within the context comes the

Country exposure, which is managed and monitored at this division,

whereas our l iaison with State Bank of Pakistan, in respect of Foreign

Trade related issues, helps us to provide timely directions and efficient

advisory to our branch network.

Optimum monitoring of business reciprocity with banks compliments our

efforts to manage the business flows and ensure greater profitabil ity

and Askari Bank anced distribution of business amongst our

correspondents.

In addition and as a part of the ongoing exercise of Know Your

Customer (KYC) compliance with regard to our correspondents,

108

askari bankInternational Division carries out regular Due Diligence exercises to

ensure that our bank deals only with financial institutions that are able

to meet the prescribed standards and criteria.

Standard settlement instructions for commercial payments through our major correspondents

are appended below:

Standard Settlement Instructions for commercial payments

Curr Bank Swift/BIC Account No

ACU American Express Bank Ltd ,

Chennai

AEIB IN DX MAS 510280058

ACU Bank of Ceylon , Colombo BCEY LK LX 125 111-250400-021

ACU Bank Saderat Iran , Tehran BSIR IR TH 216-1-1-6400

ACU Standard Chartered Bank , Dhaka SCBL BD DX 15-2000938-01

ACU Standard Chartered Bank ,

Mumbai

SCBL IN BB 22205306892

ACU State Bank of India , New Delhi SBIN IN BB 172 09046/031044

AED MashreqBank PSC , Dubai City BOML AE AD 0195510502

AUD Commonwealth Bank of

Austral ia , Sydney

CTBA AU 2S 10000 7701 AUD

112601

CAD Royal Bank of Canada , Toronto ROYC CA T2 201-383-7

CHF Credit Suisse , Zürich CRES CH ZZ

80A

919989-53

DKK Danske Bank A/S , Copenhagen DABA DK KK 3996035360

EUR American Express Bank GmbH ,

Frankfurt am Main

AEIB DE FX 424-007396907

EUR Bayerische Hypo-und

Vereinsbank AG , Munich

HYVE DE MM 69105173

EUR Citibank NA , London CITI GB 22 8562059

EUR Commerzbank AG , Frankfurt am COBA DE FF 400-88-07190-00

109

askari bankMain

EUR Dresdner Bank AG , Frankfurt am

Main

DRES DE FF 8 127 815 00

GBP Habibsons Bank Limited , London HSBL GB 2L 21003198

GBP Lloyds TSB Bank plc , London LOYD GB 2L 01001583

GBP National Westminster Bank Plc ,

London

NWBK GB 2L 04461843

GBP Standard Chartered Bank ,

London

SCBL GB 2L 01-249443401

JPY American Express Bank Ltd ,

Tokyo

AEIB JP JX 313001707

JPY Askari Bank , Tokyo ASKARI BANK A

JP JT

21057

SAR The National Commercial Bank ,

Jeddah

NCBK SA JE 555 653 15000 101

SEK Svenska Handelsbanken AB

(publ) , Stockholm

HAND SE SS 99-40-956-709

SGD ABN AMRO Bank NV , Singapore ABNA SG SG 10-0044-115

USD American Express Bank Ltd , New

York

AEIB US 33 000718577

USD Citibank NA , New York CITI US 33 3607 9507

USD Habib American Bank , New York HANY US 33 2072-9550

USD Habib Bank Limited , New York HABB US 33 0021-507008-091

USD MashreqBank PSC , New York MSHQ US 33 70119455-1067

USD Askari Bank , New York ASKARI BANK A

US 33

005580-4563

USD Standard Chartered Bank , New

York

SCBL US 33 3582-025923-001

 

110

askari bankAskari Debit Card

Askari Bank is committed to provide you innovative and competit ive

solutions to your banking needs in a more efficient and personalized

manner. Your Bank enjoys a strategic competit ive advantage over all

domestic players by virtue of i ts leadership, large network and

technological advancement. In l ine with our tradition of innovation,

Askari Bank takes pride in announcing launch of "Askari Debit Card"-

Askari Bank's Debit Card. Askari Debit Card is tai lored to your

shopping needs and is another valuable financial solut ion ref lect ing our

commitment to build last ing relat ionship with you.

Askari Debit Card means freedom, comfort, convenience and security,

so that you can have retai l transactions with complete peace of mind.

Askari Debit Card is your new shopping companion which enhances

your quality of l i fe by letting you do shopping, dine at restaurants, pay

your ut il i ty bi l ls, transfer funds, withdraw and deposit cash through ATM

anywhere, anytime.

Entity Ratings

Askari Bank has the following Entity Ratings from the Pakistan Credit Rating Agency

Limited (PACRA):

Short Term A1+

Long Term AA+

Definitions By PACRA :

A1+:

Obligations supported by the highest capacity for t imely repayment.

AA+:

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askari bankVery high credit quality. 'AA' rat ings denote a very low expectation of

credit r isk. they indicate very strong capacity for t imely payment of

f inancial commitments. This capacity is not signif icantly vulnerable to

foreseeable events.

A plus (+) appended to a rating, denotes relative status within major rating categories .

Core Values:

We understand that our commitment to satisfy customers’ needs must be fulf i l led within a professional and ethical framework. We subscribe to a culture of high ethical standards, based on the development of r ight att itudes. We believe in our 'core values' as the essential and enduring tenets of our organization - the very small set of guiding principles that have a profound impact on how everyone in the organization thinks and acts. They have an intrinsic value for us and bear signif icant importance to all our employees. They are the few extremely powerful guiding principles; the soul of the organization - the values that guide all our actions.

The intrinsic values, which are the corner stones of our corporate behavior, are:

Commitment

Integrity

Fairness

Team-work

Service

 

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askari bank

ASKARI BANK BALANCE SHEETAS AT 31ST DECEMBER

(Rupees in 000)

Assets 2009 2008

Cash and Askari Bank ance wi th

t reasury Banks

14,879,231 11,766,928

Askari Bank ances with Other

Banks

7,336,838 5,578,654

Lending to f inance institutions 8,392,950 10,197,242

Investments 28,571,969 25,618,620

Advances 99,179,439 85,998,649

Operating f ixed Assets 3,828,818 3,198,666

Deferred tax assets - -

Other Assets 3,824,105 512

166,013,350 145,095,558

Liabil i t ies

Bi l ls Payable 1,839,077 1,315,680

Borrowings14,964,087 10,562,338

Deposits and other accounts 131,837,230 118,794,151

Sub-ordinate loans 2,998,500 2,999,700

Liabi l i t ies against assets subject to

f inance lease

4,440 3,971

Deferred tax l iabi l i t ies 726,497 564,388

Other Liabi l i t ies 2,608,360 2,047,100

154,978,191 136,287,328

Net Assets 11,035,159 8,808,230

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askari bank

PROFIT AND LOSS ACCOUNT(Rupees in 000)

2009 2008Markup/ return/ in terest earned 12,602,910 8,782,369

Markup/return/ in terest expensed 6,976,704 4,276,130Net markup/ interest income 5,626,206 4,506,239

Provis ion against non-per forming loans and advances-net

1,128,137 638,547

Provis ion for d iminut ion in the value of investments

376 (36,555)

Bad debts wri t ten of f d i rect ly - -1,128,513 601,992

Net markup/ interest income after provisions 4,497,693 3,904,247

NON MARK-UP/INTEREST INCOMEFee, commission and brokerage income 1,027,491 838,588Div idend income 109,326 51,143Income from deal ing in fore ign currenc ies

584,344 356,218

Other income 321,700 206,819Total non mark-up/ interest income 2,154,651 1,552,600

6,652,344 5,456,847NON MARK-UP/ INTEREST EXPENSESAdminis trat ive expenses 3,319,069 2,604,016Other prov is ions/ wr i te of f - -Other charges 6,141 1,832Total non- markup/ interest expenses 3,325,210 2,605,848

3,327,134 2,850,999Extraordinary /unusual i tems --- -- - -- -- - -- - --PROFIT BEFORE TAXATION 3,327,134 2,850,999Taxat ionFor the year –Current 983,944 628,774For pr ior year –Current - (188,247)-Deferred 106,034 193,729

1,089,978 834,256PROFIT AFTER TAXATION 2,237,156 2,016,743

Inappropriate prof it brought forward 1,612,344 1,533,179Prof it available for appropriat ion 3,849,500 3,549,922

RATIOS2005 2006 2007 2008 2009

Rerurn on average shareholders

funds

20.3 23.9 34.8 27.7 22.6

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askari bankReturn on average assets 1.1 1.4 2.0 1.6 1.4

Profit before tax ratio 25.6 46.7 63.3 32.5 26.6

Gross spread rat io 37.9 66.1 75.1 51.3 44.6

Income / expense rat io 1.3 1.6 1.9 1.4 1.3

Advances to depositsb76 58.1 72.6 83.9 72.4 75.2

Operating f ixed assets to average

share holders funds

49.3 43.0 46.9 43.7 38.4

Capital adequate rat io 12.0 9.9 8.5 11.0 10.9

Rate of cash dividend 20.0 20.0 20.0 15.0 10.0

Rate of bonus issue 5.0 10.0 20.0 33.0 50.0

Price earning ratio 4.5 5.3 6.1 9.6 9.3

Dividend yield ratio 7.4 3.9 2.1 1.2 1.0

Dividend payout ratio 31.6 20.7 13.1 11.2 8.9

ASKARI BANK LIMITED. PERFORMANCE OF FIVE YEAR.

TOTAL LOAN *100-------------------TOTAL DEPOSIT

LOAN TO DEPOSIT RATIO (RS. 000) (RS.000)

2009 2008

Total loans 13,378 9,778

Total deposits 131,839 118,795

Ratios 10.14723% 8.23099%

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askari bankAnalysis shows an increase in loan and also increase in the deposit but the rate of increase of deposit is greater than that of loans.

TOTOAL EXTERNAL DEBT------------------------------------------

TOTAL INTERNAL DEBTS

DEBT EQUITY RATIO (RS.000) (RS.000)

2008 2009

TOTAL EXTERNAL DEBT 11,053 8,813

TOTAL INTERNAL DEBT 1,507 2,004

RATIOS 7.334 4.3977

This ratio depicts the relationship between equity and debt financing. This current year ratio shows decrease in ratio from above times. Because lesser is equity financing lesser will be the soundness of the bank. The reason behind this decrease is a decrease in external borrowings and increase in internal debt aslso but rate of increase in internal borrowing is greater. It is necessary to keep the bank fund up to 40 % as reserve.

PROFIT AFTER TAX X 100

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askari bank-------------------------------------------TOTAL NO. OF EQUITY SHARES

EARNING PER SHARE (RS.000) (RS.000)

2009 2008

PROFIT AFTER TAX 2,249,974 2,021,996

TOTAL NO OF OUTSTANDING EQUITY SHARE

200,4333 2665455

RATIOS 11.23% 9.42%

This ratio is telling that is in the current year 2009 profit has increased and that is why earning per share has also increased. Its mean that the profit will be directly influence on the earaning per shareThis ratio indicates that what is the earning on each share of the company, which is issued by the company. If there will be more earning, then shareholders will take interest in the company and willing to invest in it. Earning per share is high in both years. It means that shareholders are interested in the company and they would like to invest more and more in the company.

FPROFIT AFTER TAX _____________________ * 100

TOTAL ASSETS

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askari bank

Return on assets (RS. 000) (RS. 000)

2009 2008

Profit after tax 2,249,974 2,021,996

Total assets 166,033 145,099

1.4% 1.6%

.

This ratio shows that the return is greater in 2008 as compared to return in assets in the year 2009. Although interest and discount on loans which is the major source of revenue for bank has increased in 2009 as compared to last year but cost on deposit and borrowing which is the major expenditure of bank has increased more in the current year than the last year.

Return on shareholder fund

PROFIT AFTER TAX------------------------------------- * 100SHAREHOLDER FUND

RETURN ON SHAREHOLDER FUND

(RS. 000) (RS. 000)

2009 2008

PROFIT AFTER TAX 2,249,974 2,021,996

SHAREHOLDER FUND 11053230 11698891

RATIOS 20.35 17.28

This ratio is a further explanation of the above ratio. In 2009 profit after tax has increased and on the other hand its denominator

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askari bankshareholder fund has decreased due to reserve fund and other reserves. Therefore both the factors are responsible for this ratio.

Loan to Assets Ratio

TOTAL LOANS ----------------------- * 100Total assets

Loan to assets ratios

(RS. 000) (RS. 000)

2009 2008

Total loans 3000 2999

Total assets 166,033 145,099

Ratios 1.80% 2.06%

Total assets of bank increased in 2009 as compared to 2008 and have % increase in assets , which has resulted in an increase in loan but to shorter extent. Therefore the net result is decrease in the loan to assets ratio in 2009.

Equity Ratio:

SHAREHOLDER FUND------------------------------------ * 100TOTAL ASSETS

Equity ratio (RS.000) (RS.000)

2009 2008Shareholder fund 11,053 8813

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askari bankTotal assets 166,033 145,100

Ratios 6.65711% 6.07374%

This ratio explain that participation in the assets by the shareholder funds is limited by outsiders fund when we take year under review. (2009) we see ratio has increased in 2009 as compared to the year 2008. Reason behind this is that increase in assets is financed by outsiders fund rather than the fund provided by the shareholders.

INTEREST INCOME *100----------------------------------------TOTAL LOAN

RATE OF RETURN ON LOAN

(RS.000) (RS.000)

2009 2008Interest income 12,597 8,781

Total loan 2999 3000Ratios 4.20% 2.927%

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askari bankHere we are watching very interesting situation as there is decrease in interest income in 2008 and ratio has also deceased , reason is that interest has decreased but amount of loan has increased resulting in decrease in return on loan.

EQUITY CAPITAL TO ASSETS

Equity capital ------------------------ * 100 TOTAL ASSETS

EQUITY CAPITAL TO ASSETS

(RS. 000) (RS. 000)

2009 2008

EQUITY CAPITAL 2004 1507

TOTAL ASSETS 166033 145,100

RATIOS 1.20% 1.038%

In the current year banks assets have been increased from Rs. 145100 (billion ) to Rs.166033 (bill ion). so, this is the reason that ratio equity to assets has increased in 2009. Denominator total assets have increased substantially during the year 2009 and increase in equity capital resulted in increase in this ratio.

A special batch of qualif ied, energetic, high caliber and qualif ied young with good academic records is also hired as Management Trainee Off icers (MTOs) on annual basis with an aim to nurture high-talented lot of future

 

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askari bank STRENGTHS

ASKARI BANK one of the largest f inancial institutions of Pakistan with eight mill ion of customer base ASKARI BANK holds 24.6% share of t ime and demand deposits in the country. Local currency deposits comprise 67% of bank's total deposits while foreign currency deposits account for the rest.

ASKARI BANK has an extensive domestic branch network of 1200 (according to the latest data) branches located all over Pakistan. The Bank also has a presence in 19 international locations including the USA, United Kingdom, Europe and the Far East.

ASKARI BANK 's total assets stood at Pak Rs.370 bil l ion on December 2004. This included total earning assets of about Pak Rs.268 bil l ion with gross loan portfol io of Pak Rs.140 bil l ion. The bank also has an investment portfolio of Pak Rs.91 bil l ion, which comprises treasury securit ies, corporate bonds, shares and other securit ies.

ASKARI BANK cash provision as percentage of non performing loans equal to 60% this coverage factor for the non performing loans is the highest amongst the nationalized commercial bank.

ASKARI BANK is working as right arm government of Pakistan as it is responsible for al l claims of government for recovery as well as payment. All depositor of ASKARI BANK are in rel ief that their money security is guaranteed by government of Pakistan.

It acts as an agent of the Central Bank wherever the State Bank does not have its own Branch.

WEAKNESSES

ASKARI BANK staff especially at lower considers their work as burden. They usually waste time in other task a part in performing their duty. Using government property for there own need. They are reluctant to accept change brought by latest restructuring efforts.

The general out look and interior layout of branches are not as required according to modern banking

ASKARI BANK bearing up large burden in running those branches, which are not producing any income but keep on adding expenditure.

ASKARI BANK is relying on its traditional sources of income it has not taken benefit from innovation in banking l ike introducing retai l banking or consumer banking and using any type of scheme to generate more deposits and producing more advances. Further, more don’t even continue its credit card due mismanagement and lack of control.

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askari bank ASKARI BANK is far behind in offering modern banking facil ity l ike

automated tel ler machines then other commercial bank in Pakistan as only eighteen branches in all over country have this faci l i ty.

ASKARI BANK has only forty-four on l ine branches. While from remaining branches data gathering is t ime consuming, and not fool proof. Quantum of settlement within dif ferent branches is pending because of this updating daily record is becoming very dif f icult.

Customers have to fal low long lengthy procedure for opening of account as well applying for debt. Which discourage most of the people to invest in ASKARI BANK .

In ASKARI BANK , most of the time merit not has importance in hiring of employees. Such practices are black spot on the face of bank and resulted big losses and fraudulent acts by ASKARI BANK own employees.

OPPORTUNITIES Reorganizing efforts going on in the ASKARI BANK has open

many opportunities for ASKARI BANK to grow. ASKARI BANK current management has boarder vision. They have taken steps to improve customer services, streamline internal procedure and creating a delectating cl imate for technology init iative.

To achieve above mention objective they have created operation group

Starting of the retai l banking init ial working.

Setting of target for of making at least 300 branches country wide on line.

Closing of all those branches, which are burden on ASKARI BANK .

Management to offer special ized services to major corporate including advisory and debt syndication introduces the concept of relationship manager.

Comprehensive training programs has been develop to up grade the core banking skil ls of the exist ing staff as well as integrate high quality hiring.

To improve the motivation of staff a merit-based culture is being promoted. Through overhauling the manpower recruitment preservation and performance appraisal system.

These actions taken by current management provide a great opportunity for ASKARI BANK for making it future prosper and can

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askari bankmake ASKARI BANK not less than any modern commercialize bank in Pakistan.

THREATS

Following are the major threats which Askari Bank is facing:

Major threats ASKARI BANK facing is from its competitor especial ly from denationalized commercial bank. In which MCB is on the top of the l ist , The Bank provides 24 hour banking convenience with the largest ATM network in Pakistan covering 15 cit ies with over 100 ATM locations.

Retail banking and consumer banking resulting in the products such as credit cards, housing finance and automobile finance lending to small individual consumers, and purchases of automobiles, housing, and consumer goods are generally made on a cash basis. These are causing another threat, i f not counter wil l result in significance loss of customers

Recently banks and other financial institutions have introduced innovative schemes to attract deposits, l ike gift cheque scheme by MCB. These schemes offer prizes on short and long term fixed deposits, through lucky draws.

Now banks are using technology which covers the distance no matter how far away any one, through a satell ite based, on-l ine real-t ime banking system and by offering telephone banking, electronic funds transfer, E-Banking and other modern facil it ies.

RECOMMENDATIONS

It was an interested experience to do internship in Askari Bank . The staff was highly cooperated and due to their help I learned big deal about modern banking.

I suggest that such an internship program highly integrative for the students of commerce education so that the students should be enquired with the knowledge of practice world .I do summarize that i t would be a great help to me in selection of job or future f ield of work.

Here I am putt ing some suggestions, which will enable the bank to compete with other banks more effectively & efficiently.

It is observed that the employees were overburdened so they have to stay at branch ti l l late at night. In this way their efficiency is affected and hiring more employees can reduce their work.

The employees should be signed jobs for specific period and than they should shifted to other department so that they gain knowledge of other jobs.

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askari bank

The Askari Bank should properly advertise and Communicate to public about the services provided by it, so that more customers wil l be attracted.

The bank’s management should give more incentives and pay scale of officers should be revised & improved.

System and operations should be more defined and organized.

IT draw backs should be improved.

Administration drawbacks should be improved by the strict control of general issues.

Some employees waive the bank charges (Statement charges, cheque book charges etc) that decrease the income of the bank.

Lockers, ATM, all these facil i t ies should be provided to attract more customers.

Expenditures must be control, which are very high.

SUMMARY

Askari Bank is a good Organization in the way that anybody can join it for his/ her long-term career. Overall working environment is comfortable. Management of branch cares a lot of its employees and considers them as the Asset of bank. Behavior of senior executive of

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askari bankbank is very polite and they are caring about the individual’s career and their growth.

However management is very demanding about the targets but good reward at the achievement of assigned targets is awarded.

Employees at Askari Bank are quite efficient. Therefore, they work more than their working hours and it is all according to their will . It also shows their loyalty, commitment to organization.

Employees are given the benefits l ike bonus, gratuity funds, loans, increments, and medical.

All the customers are entertained individually. Same kind of behavior and attention is given to al l the customers. Getting ideas for improvement from customer side is a new idea and that is working very well in Askari Bank . All the customers are asked to fi l l a suggestion form and the standards of the bank are improved through them.

Priorit izing its product portfol io in l ine with its corporate and consumer needs and wants the bank is committed to develop products that give more value to its customers in both the sectors.

In bank, al l the work is done on computers. All the entries are made in computer. Askari Bank ance are fed into the computer. This increases efficiency of the bank.

During my internship training I gathered information regarding how a successful bank operational aspects decort icated with the practical.

I found my internship training a very rewarding experience. The training was beneficial because it helpful me to aware a real l i fe working environment.

So far my learning is concerned; al l the employees at branch were quite cooperative. They helped me to understand the activit ies of a bank to possible extent. Their good att itude gave me more confidence to learn more and to ask if I have any query in my mind. Besides their ever going activit ies they never get irr i tant by my questioning. I had made an honest efferent to present the working & operation of Bank in simplest way.

I feel pleasure that I have really gained a lot during 6 weeks & enjoyed working with experienced cooperative & intel l igent staff.

REFERENCES

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askari bank

MALIK RIZWAN HAIDER Branch Manager

FARUKH MEHMOODOperations’ Manager

GHULAM HABIBCD Incharge

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