Askari Bank Report Original

Internship Report of Askari Bank Ltd.

INTERNSHIP REPORT ON ASKARI COMMERCIAL BANK LIMITED

Syeda Mariam Nida

Submitted in partial fulfillment of the requirements for the degree of Master / Bachelor of Business Administration At National University of Modern Languages Islamabad, Pakistan June 2010

© Copyright by Syeda Mariam Nida, 2010 NUML NUML Page Page 1


DEDICATION "I owe immense sense of gratitude to my beloved Parents & family members who not only support me financially throughout my career and also gave confidence to me. I also dedicate the project to my teachers and friends who remained the source of encouragement throughout. At the last very humbly raising my hands to pray for success in world, good health and long life of my parents and teachers whose encouragement and prayers enable me to complete my studies".

NUML NUML Page Page 2


ACKNOWLEDGEMENT By the Grace of Almighty Allah, the most Merciful, the most Beneficial, I'm today submitting my internship report; I have the pearls of my eyes to admire the blessings of the compassionate, omnipotent, the Merciful and the beneficent Allah who is the entire source of knowledge and wisdom. Further more, I would like to acknowledge the help on this as well as many other writing projects over the years that I received from my teachers who taught me over the whole of my course in this university. Second, 1 want to give special thanks to two of my teachers who specially helped me in making this project i-e Madam Hina Shahab. Next, I would like to acknowledge the interaction that I have had with my colleagues, Sir Abid, Sir Sajjad Haider, Sir Rizwan Malik, Miss Uzma, Sir Aftab Iqbal, and Sir Tahir Jamil during my internship in the Askari Commercial Bank (G.T Road Branch, Kharian.) and helped me to learn a lot. In particular I would like to acknowledge the total support and standards of excellence provided by my teachers and long time Management

Sciences

staff.

I

can

never

forget

the

education,

encouragement, and scholarly values that I received from all the teachers when starting out in my academic career. Over the course, I would have been been very very luck lucky y to have have been been asso associ ciat ated ed with with exce excell llen entt mana manage geme ment nt students; I would like to thank them all for teaching me as much as I have learned from them.



EXECUTIVE SUMMARY The banking structure in Pakistan comprises of the following types. State Bank Bank of Pakist Pakistan, an, Comme Commerci rcial al Bank Bank of Pakist Pakistan; an; Exchang Exchange e Banks, Banks, Saving Saving banks, Cooperative banks, specialized , credit institutions. The state bank of Pakistan is the Central bank of the country and was established on July 01, 1948. The network of bank branches now covers a very large segment of national economy. The State Bank of Pakistan issues the shares of these periodically. Bank employees and other common peoples can also purchase these shares and earn profit. This internship report is based on the job, which I did in Askari Commercial Bank as Internee in the Different departments from June 9th 2008 to July 26th 2008. In remittance department like any other bank NBP also have instruments for transferring of money, Telegraphic Transfer, Mail Transfer, cash department both deposits and withdrawals go side by side. This department works under the accounts department and deals with cash deposits and payments. This department maintains the following sheets, books, and ledger of account cash received voucher sheet. Cash paid voucher sheet, Paying-in-slip, Cheque Book, Cash balance book. Bank provides this facility to the people who need advance money to meet their their requir requireme ement. nt. Party Party dealin dealing g with with other other banks banks financ financial ial condit condition ion of borrower business and as a first step credit proposal is being made. Demand Demand Financ Finance, e, Cash Cash Financ Finance, e, Forei Foreign gn bills bills purchas purchased. ed. Finance Finance agains againstt imported goods, Finance against foreign bills, Export Refinance Part I (Pre Shipment) & others. In foreign exchange, ACBL is dealing Foreign Currency Accounts, Foreign Remittances, and Foreign Bills for Collection, Imports & Expo Export rts. s. Lett Letter er of cred credit it faci facili lity ty is bein being g prov provid ided ed by ACBL ACBL in fore foreig ign n exchange. NUML NUML Page Page 4

Internship Report of Askari Bank Ltd. SWOT & PEST Analysis prepared primarily for decision-making. They play a dominant role in setting the framework of managerial decisions.



TABLE OF CONTENTS Title page Approval Page Dedication Acknowledgement Executive Summary Table of Contents Chapter-1 Introduction

1.1 Definition and purpose of Bank

09

1.2 History of Askari Commercial Bank

09

1.3 Vision statement

10

1.4 Mission Statement

10

1.5 Goals of Askari Commercial Bank

11

1.6 Objectives of Askari Commercial Bank 11 1.7 Organization Structure

11

1.8 Level of Customer service, Rating & Achievements 12 Chapter-2 Product & Services Services of Askari Commercial Commercial Bank

2.1 Products

15

2.1.1 Deposits

15

2.1.1 (a) Local currency deposits

15

2.1.2 Advances

16

2.3

Products

16 2.3.1 16 NUML NUML Page Page 6

Ask

card

Internship Report of Askari Bank Ltd. 2.3.2

Ask

power

16 2.3.3

Ask

Smart

Cas h

Master

Card

17 2.3.4

Askari

17 2.3.5

Askari

Traveler's

Cheques

18 2.4 Services

18

2.4.1 Foreign Remittances

18

2.4.2 Telegraphic Transfer

19

2.4.3 Demand draft & Pay Order

19

2.4.4 Mail Transfer

19

2.4.5 Bank Draft

20

2.4.6 Letter of Credit

20

2.4.7 Askari Commercial Bank ATM

20

Chapter - 3 Departmentalization

3.1 Cash Department

24

3.2 Clearing Department

26

3.3 Advances Department

27

3.4 Foreign Exchange Department

28

3.5 Deposit Department

30

Chapter No-4 ACBL SWOT Analysis

4,1 Strengths

35

4.2 Weaknesses

36

4.3 Opportunities

36

4.4 Threats

37

Chapter-5 PEST Analysis of ACBL

5.1 Political & Legal Environment

40

5.2 Economic Trends

41


Internship Report of Askari Bank Ltd. 5.3 Socio Cultural Environment

41

5.4 Technological efforts

42

Chapter-6 Human Resource Analysis of ACBL

6.1 Recruitment and Selection

45

6.2 Training and Development

46

6.3 Performance and Evaluation

47

6.4 Compensation

48

Chapter – 7 Internship Experience

7. Introduction 1st week

50

2nd week

51

3rd week

51

4th week

51

5th week

51

6th week

52

Experience and Learning

52

7.1 Worked In Different Department 52 Dynamic and Advanced Approach

52

Customer Orientations and Personalized Service 52 Professional Style of Management

53

Healthy, Competitive Working Environment 53 Modern Banking Policies

53

7.2 Negative Dimensions of Experience and Learning

53

Chapter-8 Conclusion and Recommendation Recommendation

8.1 Recommendations NUML NUML Page Page 8

56

Internship Report of Askari Bank Ltd. 8.2 Conclusion 8.3 References


57 59


CHAPTER 1 ORGANIZATION OVERVIEW



Introduction of Askari Commercial Bank Limited- ACBL 1.1 Definition and purpose of Banks

Banking is the business of providing financial services to consumers and businesses. The basic services a bank provides are checking accounts, which can can be used used like like mone money y to make make paym paymen ents ts and and purc purcha hase se good goods s and and serv servic ices es;; savin savings gs accou account nts s and and time time depo deposi sits ts that that can can be used used to save save mone money y for for futu future re use; use; loans loans that that consu consume mers rs and busi busine nesse sses s can can use use to purchase goods and services; and basic cash management services such as check cashing and foreign currency exchange. A broader definition of a bank is "Any financia financiall institut institution ion that receives, receives, collects collects,, transfer transfers, s, pays, pays, exchanges, lends, invests, or safeguards money for its customers."

Banking services serve two primary purposes: First, First, by supplying supplying customers customers with the basic mediums-of-exc mediums-of-exchange hange (cash, checking accounts, and credit cards), banks play a key role in the way goods and services are purchased. Without these familiar methods of payment, good goods s coul could d only only be exch exchan ange ged d by barter, whic which h is extr extrem emel ely y time time-consuming and inefficient. Second Second,, by accept accepting ing money money deposi deposits ts from from savers savers and then then lendin lending g the money to borrowers, banks encourage the flow of money to productive use and investments. This in turn allows the economy to grow by letting people to purchase cars or houses, and businesses to expand and build the new fact factor orie ies s that that the the econ econom omy y need needs s in orde orderr to prod produc uce e more more good goods s and and serv servic ices es.. Enab Enabli ling ng the the flow flow of mone money y from from saver savers s to inve invest stor ors s is calle called d financial intermediation and this is what banks are established for. 1.2 History of Askari Commercial Bank

The banking sector has witnessed a dramatic change during the last ten years with the


Internship Report of Askari Bank Ltd. development ofAskari Bank, which is not only redefining priorities and focus of the banks, but also threatening the domination of traditional players. Askar Askarii Bank Bank Limi Limite ted d (ACB (ACBL) L) work works s as a Unit Unit of Army Army Welf Welfar are e Trust Trust was was established for the Welfare of Army Officials. The office of Army Welfare Trust is situated at AWT Plaza, Rawalpindi. AWT offers the "AWT Saving Scheme" to the army officials only. AWT has itsunits as under: Askari Associates Askari Leasing Askari General Private Business Textile Mills Cement Industry Askari Commercial Bank The story begins with the incorporation of Askari Commercial Bank limited in Pakistan on October 09, 1991, Askari Bank Commenced (begin) to operations in April 1992, as a public limited company. The bank is listed on the Karachi, Lahore and Islamabad Stock Exchanges and the initial public offering was over subscribed by 16 times. While capturing the target market share amongst the view banks, Askari has provided good value to its shareholders. Its share price has remained approximately 12% higher than the average share price of quoted banks during the last four years. Askari Bank has expanded into a nation wide presence of 140+ Branches, and an Offshore Banking Unit in Bahrain. A shared network of over 800 onli online ne ATMs ATMs cove coveri ring ng all all majo majorr citi cities es in Paki Pakista stan n supp suppor orts ts the the deli delive very ry channels for customer service. As on December 31, 2004, (he Bank had equity ofRs. 6.016 billion and total assets ofRs. 107.168 billion, with over 475,000 banking customers, serviced by a total staff of 2,118. Askari Bank is the only bank with its operational head office in the twin cities of Rawalp Rawalpind indi-I i-Isla slamab mabad, ad, which which have have relati relativel vely y limit limited ed opport opportuni unitie ties s as NUML NUML Page Page 12

Internship Report of Askari Bank Ltd. comp compar ared ed to Karac Karachi hi and and Laho Lahore re.. This This crea create ted d its its own own chal challe leng nges es and opportuniti opportunities, es, and forced as to evolve an outward-lo outward-looking oking strategy in terms terms of Askari market emphasis. As a result, Askari developed a geographically diversified assets base instead of a concentration and heavy reliance on business in the major commercial centers of Karachi and Lahore, where most other banks have their operational Head offices. 1.3 Vision Statement

"To be the Leading Bank in the Region" 1.4 Mission Statement

"To be the leading leading private private sector bank in Pakistan with an international presen presence, ce, deliv deliveri ering ng qualit quality y servi service ce throug through h innova innovativ tive e techno technolog logy y and effe effect ctiv ive e huma human n reso resour urce ce mana manage geme ment nt in a mode modem m and prog progre ressi ssive ve orga organi niza zati tion onal al prof profes essi sion onal al

cult cultur ure e

stan standa darrds, ds,

of

meri merito tocr crac acy, y,

whil hile

prov proviiding ding

main mainta tain inin ing g enhan nhanc ced

high high

ethi ethica call

value alue to

all all

and and our

stakeholders, and contributing to society". 1.5 Core Values / Strategic Strategic Goals Goals of ACBL ACBL Commitment:

To delive deliverr quality quality servic services es throug through h innova innovati tive ve techno technolog logy y and effect effective ive resource management. Integrity:

To create relationship with the customers based on trust, and to be a reliable organization for the customers. Fairness:

To be fair with the customers, to make fair dealings, and to create fair relation, and to be fair the job. Team Work:

To work with the organization and to achieve the goal by mutual efforts. 1.6 Objectives of Askari Commercial Bank

The following are the outlined objectives of the Askari bank limited. • To build & sustain a high performance culture, with a continuous improvement NUML NUML Page Page 13

Internship Report of Askari Bank Ltd. focus. • To develop a customer-service customer-service oriented culture with special emphasis on customer care and convenience. • To build build an enabli enabling ng enviro environme nment, nt, where where employ employees ees are motiva motivated ted to contribute to their full potential. • To effe effect ctiv ivel ely y mana manage ge and miti mitiga gate te all all kind kinds s of risks risks inhe inhere rent nt in the the banking business. • To maxi maximi mize ze use use of tech techno nolo logy gy to ensur ensure e cost cost-e -eff ffec ecti tive ve oper operat atio ions, ns, efficient management information system, enhanced delivery capability and high service standards. • To mana manage ge the the bank' bank's s port portfol folio io of busi busine ness sses es to achi achiev eve e stro strong ng.. and and sustainable shareholder returns and to continuously build shareholder value. 1.7 Organizational Structure

Organizations cannot function without proper arrangements for its specific tasks asks

and and

duti dutie es.

For For

this his

pur purpose pose orga organi niz zati ations ons

are are

divi divide ded d

into nto

depar departm tmen ents ts.. "The "The proc proces ess s of grou groupi ping ng jobs jobs acco accord rdin ing g to some some logi logica call arrangements"

is

called

departmentalization.

The

basis

of

departmentalization is commonly product, customers, function and location. Askari Bank has done its departmentalization forming a matrix structure. Following are the main divisions of the organization. 1.7.1 Organizational Chart;

Organizational chart shows the linkage of employee to employee infect it covers every single individual who is working in one specific organization for common goal. Organizational chart of Askari bank shows the step by step relation from president to senior vise president then in branch hierarchy it shows the step bye step relation from vise president to peon. Organizational is shown in appendix. 

Army welfare trust was established mainly for the welfare

of army officials.


Internship Report of Askari Bank Ltd. The office of army welfare trust is situated at AWT PLAZA



Rawalpindi. 

AWT offers the "AWT Saving Scheme" to the army officials

only. AWT has further as units.



1. Askari Associates 2. Askari Leasing 3. Askari General Insurance 4. Private Businesses a) Textile Mill b) Cement Industry c) Petroleum 5. Askari Commercial 

Askari Association deals with the share holding.



Askari General Insurance & Askari Leasing are registered at stock exchange.



Cement Industry, Firstly produced "Nizam Cement".



Recently AWT invested their capital with Mobil named as "Askari

Mobil. 1.8 Level of Customer Service, Rating & Achievements • Customer Services:

Knowing your customer and their needs is the key to any business and success. Their products and services are structured to touch and improve the quality of lives of all segm segmen ents ts of soci societ ety. y. It's It's thei theirr const constan antt ende endeav avor or to prov provid ide e the the most most efficient and personalized service to customers.


Internship Report of Askari Bank Ltd. The Their ir prod produc ucts ts are are as dive divers rse e as thei theirr mark market et segm segmen ents ts.. They They have have structured and syndicated financing arrangements working capital finance, Bala Balanc ncin ing g

Mode Modern rniz izat atio ion-R n-Rep epla lace ceme ment nt

(BMR (BMR))

faci facili liti ties es,,

finan financi cing ng

of

international trade, customer credit, small business loans, ' credit cards and investment products for the individual saver. Askari Bank is proud of the pioneering role in providing the most modern technological 'service to its customer based, which today exceeds 350,000 relationships. • Credit Rating:

During the year, the Pakistan Credit Rating Agency (PACRA) maintained both our long term and shot term ratings at 'AA' and 'A+', respectively (the late being the highest possible in this category). These ratings signify a very high cred credit it qual qualit ity y and and very very stro strong ng capa capaci city ty for for time timely ly paym paymen entt of finan financi cial al commitments. • Awards & Achievements :

Over the years, ACBL have received several awards for the quality of our banking service to individuals and corporate. ACBL have been declared "The Best Bank in Pakistan" by the Global Finance magazine for the years 2001

& 2002. Also, ACBL have been given the "Best Consumer Internet Bank" award for Pakistan by the same magazine for the year 2002. In 1994,1996 and 1997, ACBL received Euro money and Asia money awards. Askari has A1+ rating for short-term obligations - the highest possible for the category, while the long-term rating stands at AA. Askari Bank won the prestigious "Best Presented Annual Accounts" awards for 2000 and 2001 from the Institut Institute e of Chartered Chartered Accounta Accountants nts of Pakistan Pakistan and the Institute of Cost and Management Accountants of Pakistan, for the services sector.

For the past four years, ABL have received prizes from the South Asian Federation of Accountants for "The Best Presented Annual Accounts"

for the financial sector, in the ASSRC region. Over the years, Askari Bank has proved its strength as a leading banking sector entity, by achieving the following firsts in Pakistani banking. NUML NUML Page Page 16

Internship Report of Askari Bank Ltd. 

Fir First Pak akiistan stanii Bank ank to offer ffer on-l on-liine real tim time bank bankiing on a countrywide basis.



First Bank with a nation-wide ATM network



First Bank to offer Internet Banking Services



First First Bank Bank to offer offer E-Comm E-Commer erce ce

solutions



CHAPTER 2 PRODUCTS & SERVICES OF ASKARI BANK



Products and Services:

The product & services of Askari commercial bank limited are developed keeping in view the customers needs & wants, & the expectation that the customer attaches with its financial institutions. A product ACBL includes all those services which customer normally required for effectively managing his business. ACBL offers the following financial services to its customers. 1) Deposits 2) Advances 3) Products 4) International banking services

2.1.1 Deposits One of the basic functions of commercial banking is to receive deposits. ACBL accepts deposits in both local & foreign currency 2.1.1 (a) Local currency deposits: •

Current Account

•

PLS Saving Account

•

Term Deposit

•

Notice Deposit

•

Askari Faida Account

•

Askari Special Deposit Account

•

Value Plus Saving Account

•

Askari Advantage

•

Askari Faida Account

•

Installment account

•

Compound advantages



2.1.2 Advances:

Advances are major sources of earning of income for commercial banks. Banks attracts surplus balances from the customers at low interest rates & makes advances at higher interest rates to the individuals or business firms, ACBL offer these facilities in two forms: •

Funded facilities

•

Non-Funded facilities

2.3 Products;

1. Personal finance 2 Mortgage finance p. Business finance 4, Askcar (car finance) 5. Askcard 6. Value plus 7. Traveler cheques 8. Askpower 2.3.1 ASKCARD:

"ASKCARD" is an Askari Bank's Debit Card. ASKCARD has been introduced as a shopping companion. It lets the customer do shopping, dine at restaurants, pay their utility bills, transfer funds, withdraw and deposit cash through ATM anywhere, anytime. 2.3.2 ASKPOWER:

ASKPOWER is the name for Askari Bank's Pre-paid Card. Although, it is a "stored value" card, but unlike an ATM or debit card, ASKPOWER is not connected to any account. It is an instant cash card that can be used at any ACBL ATM or other ATMs carrying 1-Link symbol, 1-Net Banking and at all designated Point of Sale terminals. The card offers remarkable convenience for: • Everyday purchases


Internship Report of Askari Bank Ltd. • Payment of bills •Safe alternative for carrying cash during traveling, special occasions, and emergency back up. • Easy transfer of money from one ASKPOWER card to other ASKPOWER card. • The ideal accessory for students • As a pre-paid card, ASKPOWER has its own built-in spending limit; the customer can set how much money is loaded to it and how frequently it is topped up. • Money can be conveniently loaded to any card either by depositing cash at any ACBL Branch or through the ATM • I-Net Banking from another ASKPOWER Card. Key Features:

• Issued to ACBL / Non-ACBL customers.(NIC Card holders) • Minimum Issuance Limit: Rs. 500/-. • 100% customer acceptance. • Card can be reloaded anytime. • Transfer of money from one card to another card. • Payment of Utility Bills through ATMs and Internet. • Instant access to money; 24 hours a day, 7 days a week. • Easy cash withdrawal through ACBL ATMs or ATMs carrying 1-Link or Orix Leasing network symbol. • Fast, private, safe and secure option for cash transfers. • Replacement of card in case of loss, theft, damaged or defective card. 2.3.3ASK SMART CASH

This personal line of credit is set up with a specified credit limit agreed upon by customer and ACBL. • The customer can withdraw cash from his credit line as and when they require. • The markup is charged only on the utilized amount and for the number of days the credit is used. NUML NUML Page Page 21

Internship Report of Askari Bank Ltd. • The markup is lower than a credit card. • Personal loan and balance transfer facility. • Finance Amount up to Rs 1 Million revolving credit line 2.3.4 ASKARI MASTER CARD:

The distinguishing characteristics are: • No joining fee • Worldwide acceptability: This card is acceptable all over the world. It provides services at thousands of locations in Pakistan and over 14 million establishments all over the world. The customer can receive their monthly billing in Pak Rs, regardless of the currency of purchase. • Traveling safety net In case the travel tickets are purchased on Askari master card, they are automatically covered under the travel insurance plan for up to Rs.8 million on a gold card and Rs.4 million on silver card. 2,3,5 ASKARI TRAVELER'S CHEQUES: available e in the denomi Askari Askari Bank's Bank's Travel Travelers ers Cheque Cheques s are availabl denominat nation ion of

Rs.l0,000/-.the distinguishing feature of these travelers cheques are: •

Light and safe

•

No service charges for purchasing Askari traveler's cheques. They can be brou brough ghtt agai agains nstt cash cash or debi debitt to the the pers person onal al acco accoun untt of the the customers

•

The The custom customer ers s are are charge charged d only only 0.10% 0.10% commis commissio sion n whenev whenever er the traveler cheque is encashed after 30 days of holding

• High security lithograph • Ultra violet printing

\

• Special thread • Anti scanner pyramid design • Unique micro lines


Internship Report of Askari Bank Ltd. • Easily refundable in case of loss and theft 2.4 Services of Askari Commercial Bank 2.4.1 Foreign Remittances: Remittances:

Remit Remittan tance ce depart departmen mentt perfor performs ms the functi function on of remitt remitting ing funds funds i.e. i.e. to transfer funds for customers from one location to another. The transfer of funds may be from one branch to another or from one bank to another Remittances mean "the transfer of money or fund from one place to another place through bank". It may be "inland remittance" or "Remittance" Inland remittance may be classified as: 1) Within locality. 2) Outside locality. Within Locality:

When a branch situated in Islamabad is required to send the draft to any other branch situated in the same locality, the process will say to be within locality. I.e. ACB main branch Islamabad, send any draft to ACB Apara branch, this is known as within locality. 2.4.2

Telegraphic

Transfer:

Telegraphic transfer is an important mode of remittance. It is the quickest mean of transferring the funds from one place to another place by the use of telephone or telegraphic. Now a day, new technology is used for this purpose i.e. fax, e-mail. The big traders and businessman use this method of remittance in this method of remittance the purchaser is not responsible for the dispatch. How One Can Apply:


Internship Report of Askari Bank Ltd. The purchaser fills an application form in which he mentioned the sum of (T.T) name of payee, accounts number of payee and place of payment etc. The The pur purchase haserr sign signs s the the appli pplica cati tion on for form and and the the ban bank char charge ge the the commission for this purpose. 2.4.3 Demand Draft & Pay Order:

For safe, speedy, and reliable way to transfer money, ACB Demand Drafts and pay orders are available for customers at very reasonable rates. Any pers person on whet whethe herr an acco accoun untt hold holder er of the the bank bank or not, not, can can purc purchas hase e a Demand Draft from a bank branch. A demand draft is an order drawn by a bank on its branch or on another bank in a different place requiring the later to pay on demand the sum of money specified in the draft. Pay order is just like demand draft except the pay order is made for local transfer of money whereas demand draft is meant for remittances of funds from one city to another. 2.4.4 Mail Transfer:

Mail transfer draft is one of the bank modes of remittance. Mail transfer is issued by one branch of bank to another branch of the same bank by inst instru ruct ctin ing g to bran branch ch to pay pay the the othe otherr branc branch h by issui issuing ng mail mail tran transfe sferr receipts. In M.T the purchaser is not responsible for dispatch, but the bank will be responsible for dispatch. How to Apply:

The purchaser fills application forms, which includes the amount of M.T name of payee, account number of payee, name of the bank branch. Place of payment and signature of purchaser. Bank charges the commission for this service. 2.4.5 Bank Draft:

Bank draft is the most important type of remittance. Draft is an instrument issued by a bank. Draf Draftt is issu issued ed by one one bran branch ch to anot anothe herr bran branch ch out out of the the city city.. The The difference branches of same bank can issue the bank draft to each other and NUML NUML Page Page 24

Internship Report of Askari Bank Ltd. it is also called the banker cheques i.e. the main branch of ACB in Islamabad issued the draft to the ACBL Daska. 2.4.6 Letters of Credit

ACBL is committed do offering its business customers the widest range of options in the area of money transfer. If you are a commercial enterprise then then our our lett letter er of Cr Cred edit it serv servic ice e is just just what what you you are are looki looking ng for. for. With With competitive rates, security, and ease of transaction, ACBL Letters of Credit are the best way to do your business transactions. 2.4.7 ATM;

Automated Teller Machine is a hi-teq. Invention in the field of the banking, it facilitate that a depositor can withdraw money at any time without the need of banking personnel. We can also deposit money with the help of this machine. But it is not so much practiced here because of sonic drawbacks. In these terms and conditions, "Cardholder" means the individual to whom the ATM Card is issued, issued, "Bank" means Askari Commercia Commerciall Bank Limited Limited and "Bank Account" means the account of the Cardholder maintained with the Bank. 1. The issue issue of ATM card card (ASKCA (ASKCARD) RD) entitl entitles es the Cardhold Cardholder er to avail avail the facilities of the Bank's Automated Teller Machines (ATMs) also referred to as machines. 2. It is a cond condit itio ion n of issu issue e and and use use of the the Card Card that that the the Card Cardho hold lder er maintains a Current or PLS-SB Account with the Bank at one of its branc branche hes s in Paki Pakist stan. an. In the the even eventt of the the stop stoppe ped d for for any any reas reason on,, whatsoever the Card shall immediately be returned to the Bank by the cardholder and its validity shall cease to have any effect on the date of such closure of A\C henceforth. 3. The card card shall remai remain n the propert property y of the Bank Bank at all times times.. The bank may, at its sole discretion and without prior notice, cancel or refuse to re-issue or renew the card or suspend its use for the time being and


Internship Report of Askari Bank Ltd. call call for for its its retu return rn at any any time time,, in whic which h case case the the Card Cardho hold lder er shall shall immediately return the Card to the Bank. 4. The cardholder shall be responsible for the payment of any taxes,

duties, levies, which may be attracted, to payments related to the issuance and use of the card by the cardholder. The he 5. T

car cardhol dholde derr

unde underrtak ake es

not not

to

disc disclo lose se

his/ his/he herr

Perso ersona nall

Identification Number (PIN) to any other person. In the event of the PIN becoming known to someone other than the cardholder, that person may be treated by the Bank as an acting agent of the cardholder. The Cardholder indemnifies the bank against all losses or damages which may occur as a result of the PIN becoming known to anyone else from any source whatsoever. 6. The The bank bank shal shalll not not be resp respon onsi sibl ble e for for any any loss loss or damage damage aris arisin ing g

directly or indirectly from any malfunction of the Card or ATM or any technical technical or non-techni non-technical cal defect or breakdown of the machine and/or any part thereof or the temporary temporary non-availabili non-availability ty of case in such machines. 7. Except

as

otherwise

prescribed

by

law,

ACBL

shall

have

no

responsibility or liability for any act or omission or inability to perform any of its obligations hereunder which results from any cause beyond ACBL's control. 8. The The Card Cardho hold lder er agre agrees es to acce accept pt that that any any cash cash or inst instru rume ment nt(s (s)) delivered through ATM with the use of Card shall be, for the all the purposes, at the entire risk and sole responsibility of the Cardholder. The bank would hence be assuming no responsibility whatsoever in this behalf. The Cardholder understands and accepts that the crediting of account, as specified on the frontal side of the envelope, designed for the purpose, will be subject to: I.

In the case case of Cash Cash Delivery Delivery:: Upon physical physical checki checking ng and verific verification ation of the currency note(s) that would be found contained in the envelope,


Internship Report of Askari Bank Ltd. and confirmation of the correctness of the particulars mentioned on envelope. II .

In the case of Delivering the Instr strument(s): Upon checking and confirmation of the correctness of the particulars of instrument(s) that woul would d be foun found d cont contai aine ned d in the the enve envelo lope pe and afte afterr its its clea cleara ranc nce e and/or realization of its proceeds through lodgments in collection as per procedure.

III. III.

The The phys physic ical al check checkin ing g and and veri verifi fica cati tion on of cash cash so deliv deliver ered ed shall shall be carried out by the Bank through its two officials, whose count, checking and findings will be accepted by the Cardholder as correct and final. The Cardholder also expressly waives its rights to, in any way, question or challenge the same.

IV. IV.

The The amoun amountt state stated d on the the ATM scre screen en or on the prin printe ted d tran transa sact ctio ion n record/slip shall not for any purpose whatsoever be takes as conclusive of the status of the Cardholder's account with the bank.

V.

The Cardholder further undertakes to accept full responsibility for all transactions made by the use of the Card whether or not made with his/her knowledge/authority or consent and he/she shall accept the Bank's record of transactions as binding for all purposes.

VI. The The Card Cardho hold lder er shal shalll take take ever every y possi possibl ble e due due and and prop proper er care care to

prevent the Card from being lost, mislaid or stolen and shall not pass the Card to any other person. He shall notify the Bank immediately if the Card is lost, mislaid or stolen or if it comes into the hands of a third party.



CHAPTER 3 DEPARTMENTALIZATION



The Askari Commercial Bank is having more than thousand branches in the coun countr try. y. Main Main bran branch ch of Askar Askarii Comm Commer erci cial al Bank Bank in Daska Daska deal deals s with with following departments. 3.1 Cash Department 3.2 Clearance Department 3.3 Advance Department 3.4 Remittance Department 3.5 Foreign Exchange Department 3.6 Deposit Department 3.1 CASH DEPARTMENT

Cash department performs the following functions 3.1.1 Receipt

The money, which either comes or goes out from the bank, its record should be ke kept pt.. Cash Cash depa depart rtme ment nt perf perfor orms ms this this func functi tion on.. The The depo deposi sits ts of all all customers of the bank are controlled by means of ledger accounts. Every customer has its own ledger account and has separate ledger cards. 3.1.2 Payments

It is a banker's primary contract to repay money received for this customer's account usually by honoring his cheques. 3.1.3 Cheques and their Payment

The Negotiable Instruments Act, 1881 "Che "Chequ que e is a bill bill of exch exchan ange ge draw drawn n on a sp spec ecif ifie ied d bank banker er and and not not expressed to be payable otherwise than on demand".

Since a Cheque has been declared to be a bill of exchange, it must have all its characteristics as mentioned in Section 5 of the Negotiable Instruments Act, 1881. Therefore, Therefore, one can say that a Cheque can be defined as an: NUML NUML Page Page 29

Internship Report of Askari Bank Ltd. "An unconditional order in writing drawn on a specified banker, signed by the drawer, requiring the banker to pay on demand a sum certain in money to, or to the order of, a specified person or to the bearer, and which does not order any act to be done in addition to the payment of money".

3.1.4 The Requisites of Cheque

There is no prescribed form of words or design of a Cheque, but in order to fulfill the requirements mentioned in Section 6 above the Cheque must have the following. a) It should be in writing b) The unconditional order c) Drawn on specific banker only d) Payment on Demand e) Sum Certain in money 3.1.5 Parties to Cheque

The normal Cheque is one in which there is a drawer, a drawee banker and a payee, or no payee but bearer, 3.1.6 Types of Cheques

Bankers in Pakistan deal with three types of cheques a) Bearer Cheques

Bearer cheques are cashable at the counter of the bank. These can also be collected through clearing. b) 0rder Cheque

These types of cheques are also cashable on the counter but its holder must satisfy the banker that he is the proper man to collect the payment of the cheque and he has to show his identification. It can also be collected through clearing. c) Crossed Cheque

These cheques are not payable in cash at the counters of a banker. It can only be credited to the payee's account. If there are two persons having NUML NUML Page Page 30

Internship Report of Askari Bank Ltd. accounts at the same bank, one of the account holder issues a cross-Cheque in favour of the other account holder. Then the cheque will be credited to the account of the person to whom the cheque was issued and debited from the account of the person who has actually issued the cheque. 3.1.7 Payment of Cheques

It is a banker's primary contract to repay money received for his customer's account usually by honouring his cheques. Payment of money deposited by the customer is one of the root functions of banking. The acid test of banking is the receipt of money etc. from the depositors, and repayment to them. This paying function is one, which is the distinguishing mark of a banker and differ different entiat iates es him from from other other instit instituti utions ons,, which which receiv receive e money money from from the public. However the bankers' legal protection is only when payment is in 'Due Course'. The payment in due course means payment pa yment in accordance with the apparent tenor of the instrument, in good faith and without negligence to any person in possession thereof under circumstances, which do not afford a reasonable ground of believing that he is not entitled to receive payment of the amount therein mentioned. It is a contractual obligation of a banker to honor his customer's cheques if the following essentials are fulfilled. 3.2 Clearing Department

In clearing department, clearinghouse is a device, which enables banker to settle check and other instruments, drawn on each other. Askari Commercial Bank Limited is the member of SBP Clearing House and rece receiv ives es chec checks ks The The easy easy,, safe safe and and most most effi effici cien entt way way is to offs offset et the the reciprocal claims against the other and receive only the net amount owned by them them.. This This faci facili lity ty of net net inte interr bank bank paym paymen entt is prov provid ided ed by the the clearinghouse. The representatives of the local commercial banks meet at a fixed time on all the business days of the week. The meeting is held in the office of the bank that officially performs the duties of clearinghouse. The repre represen sentat tative ives s of the commer commercia ciall banks banks deliv deliver er the cheque cheques s payabl payable e at other local banks and receive the cheques drawn on their bank. The cheques are then sorted according to 'he bank on which they are drawn. A summary NUML NUML Page Page 31

Internship Report of Askari Bank Ltd. sheet is prepared which shows the names of the banks, the total number of cheques delivered and received by them. Totals are also made of all the cheques presented by or to each bank. The difference between the total represents the amount to be paid by a particular bank and the amount to be received by it. Each bank then receives the net amount due to it or pays the net amount owed by it. 3.2.1 In-Word Clearing Books

The bank uses this book for the purpose of recording all the cheques that are being received by the bank in the first clearing. All details of the cheques are recorded in this book. 3.2.2 Out-Word Clearing Books

The bank uses outward outward clearing register register for the purpose of recordin recording g all the details of the cheques that the bank has delivered to other banks. 3.3 Advances Department

The The Credit Credit Manage Managemen mentt Divisi Division on of Head Head Office Office direct directly ly contro controls ls all the advances. As we known bank is a profit seeking institution. It attracts surplus balances from the customers at low rate of interest and makes advances at a high higher er rate rate of inte intere rest st to the the indi indivi vidu dual als s and and busi busine ness ss firm firms. s. Cr Cred edit it exte extens nsio ions ns are are the the most most impo import rtan antt activ activit ity y of all all finan financi cial al inst instit itut utio ions ns,, because it is the main source of earning. However, at the same time, it is a very risky task and the risk cannot be completely eliminated but could be minimized largely with certain techniques. 3.3.1 Procedure of Advances:

Following are the steps regarding the sanction of advantages: I. First the application comes in the branch. II. After filling up the application the signature of the party has to be confirming from their deposits or accounts they have. III. III. Afte Afterr that that prop propos osal al of adva advanc nces es is cons consid ider er whic which h incl includ udes es all all particulars about the party such as their name, business, how much advance they need? Why? Securities, margin etc. NUML NUML Page Page 32

Internship Report of Askari Bank Ltd. IV. Now this proposal of advance is forward to H.O., which scrutinize proposal, and if the request is legal then H.O. make it approved for further processing otherwise cancel the proposal. V. After the approval the H.O. set some conditions regarding advance. 3.3.2 Credit Worthiness

The following five C's are pillars of credits management for determination of credit worthiness of a borrower. 3.3.2.1 Character

The expected borrower must be selected as a 'good citizen' in all respects. Banker's opinion regarding the character may be establishing on the basis of following source of information: a) Past credit history showing willingness and ability to pay. b) Character reference forms other valued customers. c) Market reputation 3.3.2.2 Capacity

The The ascer ascertai tainin ning g of the capaci capacity ty of the borrow borrower er to repay repay its obliga obligatio tion n carries a great importance to a banker. Following are three sources of loan repayments. 3.3.2.3 Capital

What is the volume of the wealth put into business by proprietor or partner of shareholders in case of limited companies? What is the ability of these entrepreneurs to meet up emergency losses? 3.3.2.4 Collateral

Securities may be in the name of borrowers or in the name of third parties. Usually securities against which the finance as allowed are called "Primary" whether in the name of borrower or third partners that are offered by the borrow borrower er in additio addition n to primar primary y securi security/ ty/sec securi uritie ties s are called called collat collater eral al securities. 3.3.2.5 Conditions


Internship Report of Askari Bank Ltd. Terms and conditions must be properly assessed before allowing any finance and especially in case where the transactions involve more than one country like opening of letter of credits or issuance of letter of guarantees. 3.4 Foreign Exchange Department

Askari Commercial Bank is providing services of foreign currencies through fore foreig ign n

exch exchan ange ge

depa depart rtme ment nt..

Fore Foreig ign n

exch exchan ange ge

depa depart rtme ment nt

in

all all

prominent branches like city branch, Airport branch, Chamber of Commerce branch and many others branches engaged in foreign exchange demand draft and other negotiable instruments for the presentation of its payment and also provides excellent services for clearing checks and other inter bank obligations between the banks. In this this way way diff differ eren entt bank banks s get get chec checks ks draw drawn n by the the cust custom omer ers s on one one another. So, to off set the inter-bank claims 14 branches of SBP are providing clearing facility for scheduled of banks whose accounts and services are mainta maintaine ined d with with it. It is easie easierr for member member banks banks to adjust adjust their claims claims agai agains nstt each ach othe otherr in the the book books s of the the stat state e bank bank.. serv servic ices es.. Fore Foreig ign n exchang exchange e servic services es includ includes es accept accepting ing deposi deposits, ts, issuin issuing g foreig foreign n curren currency cy trav travel eler ers s cheq cheque ue,, prov provid idin ing g impo import rts/ s/ex expo port rts s serv servic ices es,, fore foreig ign n curr curren ency cy remittance, foreign exchange bearer certificates.

3.4.1 LETTER OF CREDIT

Letter of Credit is very useful instruments in facilitating commercial relations between businesses at various places in the world. Letter of credit state the limit of credit and the time during which it id held at the disposal of grantee but they are neither negotiable nor transferable. Before issuing the letter of credit the bank demands the following documents: 1. Invoice 2. Purchase Order 3. Import/export license 4. Installation/operating /maintenance manual. NUML NUML Page Page 34

Internship Report of Askari Bank Ltd. 5. Insurance 3.4.2 Documentary Letter of Credit

Parties to a letter of credit: 1. Applicant/Importer 2. Issuing Bank 3. Advising Bank 4. Confirming Bank (if any) 3.4.3 Mechanism of Letter of Credit

Import Importer er and Export Exporter er enter enter into into a contr contract act throug through h Perfor Performa ma invoic invoice e to export and import goods from one country to another. They agree to certain terms to be incorporated in the letter of credit. Importer applies to his band of opening of LC, and hence after is called opener or applicant. After going through their internal procedure, importer's bank opens a Letter of Credit, in favors of the exporter, who shall, hence after be called as beneficiary. Opening bank sends letter of credit their correspondent bank in beneficiary's country for advising to beneficiary such bank is called Advising Bank. Advising bank, after establishing its authenticity, forwards the letter of credit to beneficiary under their covering letter. On receipt of letter of credit the beneficiary ships the goods and prepares documents in terms of the LC for submission to bank nominated in the LC, as negotiating bank. Beneficiary submits documents for negotiation to negotiating bank. Negoti Negotiati ating ng bank bank after after having having determ determine ined d that docume documents nts are strict strictly ly in terms of LC negotiates the documents. (Negotiation means giving value of docume documents nts to benefi beneficia ciary ry). ). On negoti negotiati ation on the negoti negotiati ating ng bank bank claims claims reimbursement from the bank mentioned in the LC as reimbursing bank and forwards negotiated documents to opening bank. Opening bank on receipt of docume documents nts,, exami examines nes the docume documents nts to ascert ascertain ain that that these these confor conform m to terms of the LC. If found in order, documents are lodged and presented to opener for payment Opener makes payment for the documents and gets the documents from opening bank duly endorsed in his favors, for release of goods. NUML NUML Page Page 35

Internship Report of Askari Bank Ltd. 3,5 DEPOSIT DEPARTMENT

It controls the following activities: a) A/C opening. b) Issuance of cheque book. c) Current a/c 3.5.1 Account opening

The The open openin ing g of an acco accoun untt is the the esta establ blis ishm hmen entt of bank banker er cust custom omer er rela relati tion onsh ship ip.. Befo Before re a banke bankerr open opens s a new new acco accoun unt, t, the the banke bankerr shoul should d determine determine the prospectiv prospective e customer' customer's s integrit integrity, y, respectabi respectability lity,, occupation occupation and the nature nature of business by the introductory introductory references references given at the lime of account opening. Preliminary investigation is necessary because of the following reasons. I. Avoiding frauds II. Safe guard against unintended over draft III. Negligence IV. Inquiries about clients. There are certain formalities, which are to be observed for opening an account with a bank. • Formal Application • Introduction • Specimen Signature • Minimum Initial Deposit • Operating the Account 1. Pay-In-Slip Book 2. Pass Book 3. Issuing Cheque Book

3.5.2 Qualification of Customer NUML NUML Page Page 36

Internship Report of Askari Bank Ltd. The relation of the banker and the customer is purely a contractual one, however, he must have the following basic qualifications. Type of Accounts: 

Current Account.



Saving Account.



Askari Special Deposit Account.



Askari Bachat Certificate.



Notice Deposit.



Term Deposit.

Current account:

In curr curren entt acco accoun untt ther there e is no inte intere rest st on it. it. It is for for only only tran transac sacti tion on purposes. They are paid on demand. When a banker accepts a demand deposit, he incurs the obligation of the paying all cheques drawn against him to the extent of the balance in the account. As there is no profit paid on this account it is also called chequing account because cheques can be drawn on it. Current account is mostly opened for business. Saving account:

The purpose of this account is to induce the habit of saving individuals in the neig neighb hbor orhoo hood. d. The The prof profit it is PLS PLS savi saving ng and and ASDA ASDA Acco Accoun unts ts in ACBL ACBL are are chequing accounts paid on the basis of profit and loss sharing at the rate of 8.5% six monthly. The minimum deposit for opening the account is Rs.100/Askari special deposit accountant (ASDA ACCOUNT):

ASDA account is an interest bearing current account interest is paid on it at the rate of 8.00%. The payment of return is monthly, where as the rate of return with aspect to the amount of minimum deposit clear from deposit schedules in annexure. It is also chequing account because cheques can be drawn on it. It is nece necess ssar ary y for for this this acco accoun untt that that the the clie client nt must must main maintai tain n a mini minimu mum m balance of Rs.0.05 million at the end of the month, no interest is paid. That’s why it is similar to current account. a ccount. NUML NUML Page Page 37

Internship Report of Askari Bank Ltd. Asian Bachat Certificate: Certificate:

ACB's are long term fixed deposit for 3 and 5 years. These are not term deposi deposits ts because because payment payment of return return is on monthl monthly y basis basis rather rather than on maturity of deposits. The minimum balance requirement is Rs.25000/- and maximum balance requirement is Rs.1.0 million. If ACB is for 3 years, the rate of return for 3 years is 12%; if ACB is for 5 years the rate of return is 13.00%. Because in such account the balance is kept for either '3' or '5' years within the bank no cheque is drawn on it. That's why it is not a chequing account, but only payment of return is made monthly. Notice deposits:

Noti No tice ce depo deposi sits ts are are

kind kind of fix fixed

depo deposi sitts. The The

minim nimum bal balanc ance

requirement for opening the account is Rs.5000/- and payment is drawn on maturity of the specific period. Notice deposit is of the two kinds: •

One for which a prior notice of 30 days and above is required from the customer before with drawing deposited amount and for which rate of return is 8%

•

Second for whom a prior notice of 30 days and above is required from the customer before with drawing the deposited amount and for which rate of return is 10%.

Term deposits:

A term deposit is a deposit that is made for a certain periods of time. At the end of the specific period, the customer is allowed to with draw the principle amount. ACBL ACBL term term depo deposi sits ts are are of type types s clea clearr in the the depo deposi sitt sche scheme me in the the Annexure. One of them is "Askari" Advantage one month. The rate oftetum on this account is 12.0% for 4 years. The term deposit account varies from one month to 5 years, and the minimum balance requirement is Rs.5000/-. 3.5.4 Issuing of Cheque Book:

Thi This s depa depart rtme ment nt cheq cheque ue book books s to acco accoun untt hold holder ers. s. Requ Requir irem emen ents ts for for issuing cheque book a) The account holder must sign the requisition slip NUML NUML Page Page 38

Internship Report of Askari Bank Ltd. b) Entry should be made in the cheque book issuing book 3.5.5 Current account

These are payable to the customer whenever they are demanded. When a banker accepts demand deposit, he incurs the obligation of paying all cheq cheque ues s etc. etc. draw drawn n agai agains nstt him him to the the exte extent nt of the the bala balanc nce e in the the account. Because of their nature, these deposits are treated as current liabilities by the banks. Bankers in Pakistan do not allow any profit on thes these e depo deposi sits ts,, and cust custom omer ers s are are requ requir ired ed to main maintai tain n a mini minimu mum m bala balanc nce, e, fail failin ing g whic which h inci incide dent ntal al char charge ges s are are dedu deduct cted ed from from such such accounts. This is because the depositors may withdraw Current Account at any time, and as such the bank is not entirely free to employ such deposits. 3.5.6 Saving account

Savi Saving ngs s Depo Deposi sits ts acco accoun untt can can be open opened ed with with very very smal smalll amou amount nt of money, and the depositor is issued a cheque book for withdrawals. Profit is paid at a flexible rate calculated on six-month is under the Interest-Free Banking System. There is no restriction on the withdrawals from the sit accounts but the amount of money withdrawn is deleted from the amount to be taken for calculation of products for assessment of profit to be paid to the accoun accountt holder holder.. It discou discourag rages es necess necessary ary withd withdraw rawals als from from the deposits. 3,5,7 Cheque cancellation: cancellation:

This department can cancel a cheque on the basis of; a) Post dated cheque b) Stale cheque c) Warn out cheque d) Wrong sign etc



CHAPTER 4 ACBL SWOT ANALYSIS



SWO SWOT

is

an acro acrony nym m

for for

an orga organi niz zati ation’s on’s

str strength ngths, s, weakn eaknes esse ses, s,

opportunities and threats. A SWOT analysis consists of sizing up a firm’s internal strengths and weaknesses and its external opportunities and threats in order der to get get an ove overvie view of the the orga organi niz zatio ation ns str strateg ategiies and and its environment. The basic purpose of such an analysis is to develop strategies along with exploiting opportunities and strengths and neutralizing threats and removing weaknesses. The SWOT analysis ofACBL as follows: 4.1 STRENGTHS: 4.1.1 E. Banking:

The The revo revolu luti tion on in the the bank bankin ing g in the the form form of elec electr tron onic ic bank bankin ing g oper operat atio ions ns have have open opened ed aven avenue ues s of exce excell llen ent, t, effi effici cien entt and quic quick k services saving the time and costs of the customers |aid fortunately ACBL is among those few banks who are already reaping the benefits of electronic transactions. 4.1.2 Askari Atm:

The bank has the largest ATM Network across the country. Customers of ASKARI ASKARI BANK. can withd withdraw raw and access access their their accoun accounts ts at any time time through ATM Sites with one link. 4.1.3 Customer Centered Banking:

The priority banking centres are established in every branch of the bank, where where custom customers ers receiv receives es highly highly privi privileg leged ed servic services es in a highly highly elegan elegantt environment. It gives the chance of experiencing new standards in banking. Priority Banking offers the very highest levels of penalized banking to match customer's unique status. 4.1.4 Automatic Operations:

The operations performed by the bank are highly automated that result in assurance for the customers that their transactions are completed reliably, efficiently and securely. NUML NUML Page Page 41

Internship Report of Askari Bank Ltd. 4.1.5 Tele Phone Banking:

Phone banking service is very attractive for those classes of customers who don't have time to personally come to the bank i.e. banking on the phone line thus saving the precious time of the customers. 4.1.6 Eight Hours Banking:

One can avail the benefit of the services provided at the bank till 5:00 P.m. which is highly useful for those customers who find it difficult to leave their officers in the morning. 4.2 WEAKNESSES:

In my opin opinio ions ns thes these, e, are are the the poin points ts that that migh mightt be detr detrim imen enta tall to the the efficiency and profitability of the bank. 4,2.1 Manual Banking:

Although the bank has computerized accounting system but, still the bank ers use to make their entries in the accounting register 4.2.2-Generalizaiton:

This famous and useful concept given by Adam Smith in 1776 seems to be missin missing g in the bank. bank. Employ Employees ees are constantl constantly y rotate rotated d from from one job to another another job for for the the sake sake of havi having ng the the comp comple lete te know know-h -how ow of all all the the

depa depart rtme ment nts. s. But But I thin think k this this is not not a very very good good tact tactic ics s used used by the the manage managemen ment. t. Other Otherwis wise e the situat situation ion might might be like like this this 'Jack 'Jack of all an4 master of none. 4.2.3-Centralization:

There is a high degree of centralization in the bank. Almost all the decisionmaking making is in the hands hands of the upper upper manage managemen ment. t. But centra centraliz lizati ation on is effective up to a certain level otherwise it becomes inefficient and at times costly too. I personally observed that delay occurred in the operations of the employees only due to the fact that they had not got any instructions from the head office, NUML NUML Page Page 42

Internship Report of Askari Bank Ltd. 4.2.4 Less Training Facilities:

Presently there is no specific training given to the newly hired employees. Only on the [job training is given to the new employee. 4.2.5 Not Highly Automated:

The bank has still some of the traditional ways of operations in this advanced technological environment. 4.3 OPPORTUNITIES;

Apart from the ones discussed in External Factors Evaluation Matrix, the bank is facing the following threats and opportunities currently: These are positive external environmental factors effecting the organization. 1. 1 Army accounts: accounts: Generall Generally y army persons persons prefer prefer Askari Askari bank.

,

2. Two more branches in remote areas: The bank can work for formers

more. 3. Islami Islamic c Bankin Banking: g: Bank can work work more more in Islamic Islamic banking banking b/c people peoples s want Islamic banking. 4. It deals deals in bulk busine business ss:: The The bank bank can work work for for big big busi busine ness ss men more. 5. Sharp increase in imports and exports: The banks have to improve its

letter of credit facility. 6. Technol Technology ogy devel developm opment ent and and innova innovatio tion. n. 7. Business and product development. 8. An unfulfilled customer need. 9. Arrival of new technologies. 10. Well established position with a well defined market niche.

4.4 Threats 4.4.1 Reduction in Private Credit Investment


Internship Report of Askari Bank Ltd. The challenges to corporate business in year 2009 were manifold, including reduction in private credit investment as a result of slowing down of economy as well as rising interest rates. The credit investment as a result of slowing down of economy as well as rising interest rates. The increasing pressure on the textile industry reduced the lending to this sector. In addition the bank's corpor corporate ate loans loans yield yields s also also faced faced pressur pressure e as substi substitut tute e form form of fundin funding g source sources s are are availa available ble in the market market in form form of Islami Islamic c financ financing ing,, mutual mutual funds, issuance of debt instruments like TFCs and Bonds and the Capital markets. 4.4.2 Emergence of New Competitors Competitors

The bank is facing threats with the emergence of new competitors especially in terms of foreign banks. These foreign banks are equipped with heavy finan financi cial al powe powerr with with exce excell llen entt and inno innova vati tive ve ways ways of prom promot otin ing g and performing their services. The bank has to take initiative in this regard or will find itself far back in competition. 4,4.3 Political Pressure by ElectedGovernment

The The

ongoin ongoing g shift shift in power in politic political al arena arena in the countr country y effects effects the

performance of the (bank has to forward loans to politically powerful persons which create a sense of insecurity and demoralization in the customer as well as employees. 4.4.4 Downsizing

The bank is currently acting upon the policy of downsizing which threaten the environment of the bank Employees feel insecurity in doing their jobs

and work, hence affecting the overall performance of employees negatively. 4.4.5 Customers Complaints

Ther There e exists exists no regula regularr and specif specific ic system system of the remova removall of custom customer er complaints. Now a day a need for total customer satisfaction is emerging and in their demanding consequences customer's complaints are ignored.



CHAPTER 5 ACBL PEST ANALYSIS



A broad view of market is important when management is interested in introducing better services for customers. Rapid technological change, global competition and the diversity of buyers preferences in many markets require the constant attention of the market vouchers to identify promises business opportunities, see the shifting requirements of the buyers, evaluate changes in competitors positioning and guide the choice of which buyers to target and and clas classi sify fy them them acco accord rdin ing g to respe respect ctiv ive e segm segmen ents. ts. Iden Identi tifi fica cati tion on of external external and macro macro factors factors that influence influence buyers and thus change the size and compos compositi ition on of market market overti overtime me involv involves es initia initially lly buildi building ng custom customer er profiles. These influences include: 1. Political and legal environment 2. Economic trends 3. Socio cultural environment 4. Technological factors 5.1.1-Political 5.1.1-Political and Legal Environment: Political factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate . Banks are strongly affected by the

political and legal considerations. Current political situation of Pakistan is not very encouraging. No one can make plane long term objectives or goals in Pakistan because of political destabilization in Pakistan. Because of political dest destab abil iliz izat atio ion n many many fore foreig ign n and and loca locall inve invest stor ors s are are not not show showin ing g thei theirr interest regarding investment in Pakistan. This environment is composed of regul regulato atory ry agenci agencies es and govern governmen mentt law that that influe influence nce and limit limit variou various s organizati organizations ons and individuals. individuals. Some of main political political factors factors which effects effects banking sector in Pakistan. •

Tax policy

•

Employment laws


Internship Report of Askari Bank Ltd. •

Environmental regulations

•

Trade restrictions and tariffs

•

Political stability

5.1.2-Business 5.1.2-Business legislation legislation has following main purposes:

• To protect banking companies from unfair competition. •To protect consumers from unfair business practices adopted by banking companies • To protect the interest of the society from unbridled business behavior. 5.2 Economic Trends: The World Bank considers Pakistan a low-income country. GDP is around $166 billion at the official exchange rate. The population numbered some 167 million in 2008 with a 1.81% growth rate. No more than 55.0% of adults are literate, and life expectancy is about 64 years. In FY 2008-2009, the GDP growth rate was 3.7%, and unemployment was estimated at 14%. Yearover-year consumer price inflation averaged 13.6% in 2009. Main inflation drivers include food and an d ut util ilit ity y pr pric ices es,, th thee Pak Pakis ista tani ni ru rupee pee’s ’s de depr prec ecia iati tion on ve vers rsus us th thee U. U.S. S. dol dolla lar, r, an and d hi highe gher r inte in tern rnati ation onal al co comm mmodi odity ty pr pric ices es.. Lo Low w le level velss of sp spend endin ing g in th thee so soci cial al se serv rvic ices es an and d hi high gh popul populati ation on gro growth wth have con contri tribut buted ed to per persi siste stent nt pov povert erty y and une unequal qual inc income ome dis distri tribut bution ion.. Pakistan's extreme poverty and underdevelopment are key concerns, especially in rural areas. The cou countr ntry’s y’s economy economy rem remain ainss vul vulner nerabl ablee to int intern ernal al and ext extern ernal al sho shocks cks due to int intern ernal al securi sec urity ty conc concern ernss and the glo global bal fin financ ancial ial cri crises ses.. Accord According ing to bankin banking g market market it

requires requires better consumer market in volume volume along with higher higher borrowing borrowing power. The available borrowing power depends on 

Consumer income



Saving rates



Consumption patrons



Rates of interest



Budget deficit



Exchange rates



Cost of living


Internship Report of Askari Bank Ltd. 

Inflation

5.3 Socio-Cultural Environment: Social factors include the demographic demographic and cultural cultural aspects aspects of the external macroenvironment macroenvironment.. These factors affect customer needs and the size of potential markets. Trends in social factors affect the demand for a company's products and how that company operates. For example, an aging population may imply a smaller and less-willing workforce (thus increasing the cost of labor). Furthermore, companies may change various management strategies to adapt to these social social trends trends (such as recrui recruiti ting ng older older workers). workers). A societ society y is shaped by belief beliefs, s, norms and values. People in a society consciously and unconsciously interact with: 

Themselves



Others



Organization



Society



Nature

Following are the main factors. Which arise because of change in sociocultural environment? 

Consciousness about services



Concern for environment



Improved customer relation 

Health consciousness



Population growth rate



Age distribution



Career attitudes



Emphasis on safety

5.4 Technological Factors: Forces of technological advancement- have played the most dramatic role in shaping the lives of people. The rate of change of technology has greatly affected the rate of growth of economy. New technology is creating deep rooted affects which could be observed in long run. The NUML NUML Page Page 48

Internship Report of Askari Bank Ltd. improvement techniques involved in on line banking. Technological factors can lower barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions. Some technological factors include: 

R&D activity



Automation



Technology incentives



Rate of technological change

In brief PEST analysis affects the overall banking companies and provides us the information about the external macro condition.



CHAPTER 6 HUMAN RESOURCE ANALYSIS OF ASKARI COMMERCIAL BANK



6.1 Human Resource Analysis:

Human resource analysis of ACBL is mainly depends on the following four categories. 1. Recr Recrui uitm tment ent and and Sel Selec ecti tion on 2. Tr Trai aini ning ng and and Dev Devel elop opme ment nt 3. Perf Perfor orma manc ncee and Eva Evalu luati ation on 4. Comp Compen ensa sati tion on

6.1.1 Recruitment and Selection

Recruitment, assessment and selection are the three key steps for hiring employees. Of these, recruitment and selection are typically the most challenging for employers. The keys to finding the right candidates at the right time and hiring them are being strategic and thinking about the organization's future.

ACBL follows two methods for recruitment. 6.1.2 External Recruitment

ACBL develop relationships with guidance and career counselors at colleges and universities and ask for help in recru recruitin iting g for open positions. positions. Reach out to professional professional organizations organizations that are in line with the organization's mission, and ask to them to list open positions in their newsletters and emails to members. ACBL consider working with a recruitment firm in this method of recruitment, especially when the position is at a higher level or requires a specific skill or type of experience. 6.1.3 Internal Recruitment

ACBL also use this type of method of recruitment for hiring potential employees. In this method ACBL ACB L foc focuse usess on ski skills lls and expe experi rience ence an app applic licant ant mus mustt pos posses sess. s. Pos Postt an ope open n pos positi ition on inte in tern rnall ally y AC ACBL BL as asse sess ss qu qual alif ifie ied d ca cand ndid idat ates es wi with thin in th thee or orga gani niza zati tion. on. Con Consi side derr in inte tern rns, s, volunteers, temporary workers or consultants who may have been working in a similar capacity to the open position.



6.1.3 Selection Methods

Once the applicant pool has been narrowed and candidates have been assessed, it's time to make a selection decision. ACBL think long-term. Is the applicant qualified for the present job as well as future positions? Look for a candidate with solid experience and new ideas and a fresh persp perspect ective ive.. Wei Weigh gh his or her wil willin lingnes gnesss to lea learn. rn. Als Also, o, no mat matter ter the ind indust ustry ry,, mar market ket conditions inevitably will change ACBL selects someone who not only can adapt, but also can flouri flo urish sh und under er tho those se con condit dition ions. s. ACB ACBL L nev never er dis discou count nt can candid didate atess who are mak making ing car career eer changes cha nges.. For exa exampl mple, e, som someon eonee wit with h fiv fivee yea years rs of cor corpor porate ate-se -secto ctorr exp experi erience ence can bri bring ng a strategic view to a nonprofit organization, while someone from a nonprofit who has made the most with limited resources can bring a fresh approach to a corporation. ACBL consider other needs such as diversity, and to follow the guidelines of the Equal Employment Opportunity Commission. 6.2. 6.2.1 1

Trai Tr aini ning ng and and Devel Develop opme ment nt

In general, education is 'mind preparation' and is carried out remote from the actual work area, training is the systematic development of the attitude, knowledge, skill pattern required by a per perso son n to perfo perform rm a give given n task task or job job adequ adequat atel ely y and and deve develo lopm pment ent is 'the 'the grow growth th of the the individual in terms of ability, understanding and awareness. ACBL fuscous these points regarding Training and Development: •

Develop workers to undertake higher-grade tasks.

•

Provide the conventional training of new and young workers.

•

Raise efficiency and standards of performance.

•

Meet legislative requirements e.g. health and safety.

•

Transfer learning from observation of trained workers.

•

Receiving coaching from seniors.

•

Learning via involvement in research, report writing and visiting other works or organizations.

•

Lectures and talks by senior or specialist managers.

•

Discussion group (conference and meeting) activities.


Internship Report of Askari Bank Ltd. •

Briefing by senior staffs.

•

Role-playing exercises and simulation of actual conditions.

•

Video and computer teaching activities.

•

Case studies (and discussion) tests, quizzes, panel 'games', group forums, observation exercises and inspection and reporting techniques.

Evaluation of the effectiveness of training is done to ensure that it is cost effective, to identify needs to modify or extend what is being provided, to reveal new needs and redefine priorities and most of all to ensure that the objectives of the training are being met. The latter may not be easy to ascertain where results cannot be measured mathematically. In the case of attitude and behavioral changes sought, leadership abilities, drive and ambition fostered, etc., etc., achieve achievemen mentt is a matter matter of the judgme judgment nt of senior senior staffs. staffs. Exact Exact valida validatio tion n might might be impossible but unless on the whole the judgments are favorable the cooperation of managers in identifying needs, releasing personnel and assisting in training ventures will cease. In making their judgments senior managers will question whether the efforts expended have produced: •

More effective, efficient, flexible employees.

•

Faster results in making newcomers knowledgeable and effective than would follow from experience.

•

More effective or efficient use of machinery, equipment and work procedures.

•

Fewer accidents both personal and to property;

•

Improvements in the qualifications of staff and their ability to take o n tougher roles.

•

Better employee loyalty to the organization with more willingness to innovate and accept change.

6.3.1

Performance Evaluation

In ACBL Performance appraisal defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identi identifyi fying ng weakne weaknesse ssess and strengt strengths hs as well well as opportu opportunit nities ies for improv improveme ement nt and skill skillss development. NUML NUML Page Page 53

Internship Report of Askari Bank Ltd. In ACBL appraisal results are used, either directly or indirectly, to help determine reward outcomes. That is, the appraisal results are used to identify the better performing employees who should get the majority of available merit pay increases, bonuses, and promotions. By the same token, appraisal results are used to identify the poorer performers who may require some some form form of counsel counseling ing,, or in extrem extremee cases, cases, demoti demotion, on, dismis dismissal sal or decrea decreases ses in pay. pay. (Organizations need to be aware of laws in their country that might restrict their capacity to dismiss employees or decrease pay.) Whether this is an appropriate use of performance appraisal - the assignment and justification of rewards and penalties - is a very uncertain and contentious matter. 6.4.1

Compensa ensati tio on

In ACBL Compensation includes topics in regard to wage and/or salary programs and structures, for example, salary ranges for job descriptions, merit-based programs, bonus-based programs, commission-based programs, etc. (Also see the Related Info (including Benefits). Compensation is payment to an employee in return for their contribution to the ACBL, that is, for doing their job. ACBL associate compensation/pay ranges with job descriptions in the organization. The ranges include the minimum and the maximum amount of money that can be earned per year in that role. Employees have certain monies withheld from their payroll checks, usually including federa fed erall inc income ome tax tax,, sta state te inc income ome tax tax,, FIC FICA A (so (socia ciall sec securi urity) ty) cont contrib ributi utions ons,, and emp employ loyee ee contributions to the costs of certain benefits. Professional, management and other types of skilled jobs are classified as exempt. Exempt jobs get a salary, that is, a fixed amount of money , usually a fixed amount per month. It's not uncommon for exempt positions to receive higher compensation and benefits than non-exempt jobs, although non-exempt jobs often can make more money than exempt jobs simply by working more hours. Unskilled or entry-level jobs are usually classified as non-exempt. Nonexempt jobs usually usually get a wage. Non-ex Non-exempt empt jobs also get paid over-time, over-time, that is, extra pay for hours worked or on certain days of the week or on holidays.



CHAPTER 7 INTERNSHIP EXPERIENCE



Analysis

It is handling government federal and private operation as well. This bank is provid providing ing many many facili facilitie ties s like like submi submissi ssion on of utilit utility y bills, bills, salary salary accoun accounts, ts, current accounts, different kind of loan schemes, overdraft facilities and so on. Other than these benefits it has some weaknesses as well. This bank is not customer oriented especially pensioners really suffer during getting pension. There is no proper guidelines and information for customers. They have to do wait for a long for completion of their desired work. Work load is too high where whereas as staff staff is very very low. low. ATM ATM facili facility ty is not availabl available e in this this respe respecti ctive ve branch. ACBL is suffering from low customer orientation and this is a big marketing marketing threat for it. In this way this can be loose those customers customers which have have curren currentt accoun accounts. ts. Career Career opport opportuni unitie ties s are very very low; low; compen compensati sation on plans are not well planned. Employees want more salary and benefits and they are ready to switch their jobs this can increase ratio of turnover. Jobs are not granted on the basis of merit. Introduction:

During my internship I was involved in the following departments. 1 Costumer Service 2 Agri Finance 3 Account Opening 4 Personal Finance 5 Information Technology

6 Credit Card 7 Remittances 1st Week:


Internship Report of Askari Bank Ltd. In the first week they gave me detail information about whole organization and and resp respec ecti tive ve bran branch ch in whic which h I was was work workin ing. g. They They gave gave me deta detail il introduction about working of ACBL. Scroll sheets: In 1st week I have made scroll sheets of utility bills, traffic challans. One copy of scroll sheet is sent to respective organization e.g.; WAPDA, PTCL and so on and one copy is kept by bank as a record. Manual record keeping of new open Accounts: In 1st week I have also

done manual record keeping of new accounts, in which name of customer, form and account no and date on which account is to be opened is written off. 2nd Week:

Voucher making: In 2" week I have learnt that how to make vouchers of scrolls of utility bills and traffic challans as well. Original copy of branch is sent to respective institute and copy of it is kept by bank. Issuance of cheque books: In 2" week I also issue cheque books to old

customers and j new as well. I also receive requisition for cheque book from very new customers. Entry of pensioners: In 2nd week I learnt how to keep monthly record of

pensioners and how to give monthly, bimonthly, semiannually and yearly pensions. 3rd week: Customer dealing: In 3rd week, I have performed as a front desk person. I

have learnt that how to deal different kind of customer and how to fulfill their requirements and how to give their desired and relevant information. This practice increases my patience and high level of control on my emotions; it enhances my communication skills as well. Account Opening: In 3 1 week I came to know about that how a person will

be able to


Internship Report of Askari Bank Ltd. open an account. I issues 70 account opening form in a day and guide all customer one by one and tell them requirements to fill and submit a form. With Within in week week I rece receiv ive e back back thes these e form forms s and and afte afterr maki making ng nece necess ssar ary y requirements I finalize these forms. Computerized Computerized record keeping: In ^ week, I have also done computerized

record keeping of new opening accounts. I also learnt that how to check the balance of old and new accounts as well. 4TllWeek:

Token Issue: In the start of 4 th week I have worked in cash department and leamt to issue token to the customers who want to withdraw cash. I also cash their cheques and give them their desired amount. 5th Week:

Vouchers of un-issued cheques: When cheques are rejected due to certain reasons these cheques are returned back to their respective departments. One voucher is made for this purpose on which name of cheque holder and account no and amount which is to be drawn is written on the back side of voucher is prepared and sent. In the last of 5th week I issue forms of different services which are offered by Askari Bank. I provide all information regarding specific service to customers. These services include: 1 ACBL rozgar scheme 2 ACBL advance salary scheme 3 ACBL gold scheme 6th Week:

Review of Marketing Practices: In last week I review Marketing practices of ACBL. That on which basis Marketing is hired and compensated. last week week I prep prepar are e Prepar Prepare e medica medicall forms forms for each each employ employee: ee: In last medical form of each employee and its family member. I make report of their last month's visit to doctor and sent it into head office.


Internship Report of Askari Bank Ltd. Procedure of Transfer: I have also learnt that how employees are transferred from one branch to another. I review and finalize their papers of transfer. Every employee is transferred right after 3 years. EXPERIENCE AND LEARNINGS

The six weeks long internship at Askari Bank of Pakistan Main Branch Daska has been been a suffic sufficien ientt durati duration on to person personall ally y observ observe e and experi experienc ence e the working and analyze certain factors related to the environment of all the Departments in the Branch. 7.1 Worked In Different Department: Dynamic and Advanced Approach

The Bank employed skilled and professional approach to management, which took took a seri series es of succ succes essi sive ve measu measure res s to make make the the peop people le of Paki Pakist stan an banki banking ng,, and savi saving ng-m -min inde ded. d. The The dyna dynami mic c appro approac ach h and and pers person onal aliz ized ed service met the expectations of the customers. Customer Orientations and Personalized Service

The banker customer relationship attained a new dimension courtesy the politenes politeness s and

efficienc efficiency y of professiona professionally lly trained trained staff staff and fair induction induction

policies of its Human Resource Department.Convenience of the customers has been the sole criterion of this relationship. The introduction of different schemes, good atmosphere, proper guidance and team effort have proven to be the catalyst in not only improving the financial standing of the bank but has also been the source of the prestige it holds today. Professional Style of Management

Although the concept of professional management is still in its transition stage in Pakistan Askari Bank from the very first day employed skilled and professional management, which had the capacity to take quick, decisions, and respond to the changing business conditions. Healthy, Competitive Working Environment

The obligation to give all its employees an equal chance to succeed has been one of the most fundamental fundamental and challengin challenging g responsibi responsibiliti lities es of the bank. It has always provided its employees the scope within which to make the most NUML NUML Page Page 59

Internship Report of Askari Bank Ltd. of their abilities. In Askari Bank survival, growth and expansion demand ta lent and ability. Such a competitive environment environment was full use of one's own talent instrumental in introducing professionalism, which in the ultimate analysis transformed the entire outlook of the industry. Modern Banking Policies

With the entry of Askari Bank and a new era, banking underwent a complete metamorphosis. When Askari Bank challenged the major banks of the time due due to qual qualit ity y serv servic ices es they they began began to eval evalua uate te thei theirr poli polici cies es and and were were surprised to find that they had a lot to change. Before long, they began to change and adopt a more modem and relevant strategy. 7.2 Negative Dimensions of Experience and Learning • Departmental Problems at the Branch

The The follow following ing are some of the problems problems and shortc shortcomi omings ngs that that were were inevitably prominent. • Deposits Department

In order to save time the addresses filled in the required section of the accoun accountt openin opening g forms forms are filled filled withou withoutt confir confirmi ming ng that that they they are appro appropr pria iate te for for usin using g for for corr corres espo pond nden ence ce purp purpos oses es in case case of any any notifications to be sent to the customers. The present format of the account opening forms seems more complicated to the lesser-educated customer and hence he takes it away to be filled with somebody's help, but unfortunately, rarely comes back. • Bills and Clearing Departments

The carelessness of the officers at times result in delay of collection, as the original advice is lost in post and proper filing of the copy is not done. The same officer of the branch does the posting of the bills and cheques, clearing and collection that result in unnecessary delay. The proc proced edur ure e of appl applyi ying ng test tests s is not not know know to all all the the offi office cers rs as it is practiced by only one of them and hence it causes delay when it is appl applie ied d by the the othe others rs in case case the the said said offi office cerr is abse absent nt.. The The test test


Internship Report of Askari Bank Ltd. application officer works manually and there is no other person to assist him that results in spending most of the time in applying these. • Cash Department

Rare instances of fake currency notes result in loss to the branch and the cashier who accepted them, that affects their work negatively. Manual counti counting ng system system by the cashie cashiers rs is a very very time time consum consuming ing exerc exercise ise,, especially if there is a rush of customers. • Advances Department

The filing and record maintenance of the credit related documents is not not done done‘‘ ‘‘Ef Effi fici cien entl tly y due due to lack lack of comp comput uter er skill skills s of the the rela relate ted d officers. Lack of infrastructure for carrying out computerized/ automatic financial analysis of the borrowers' businesses is another shortfall of this Department.



CHAPTER 8 CONCLUSION AND RECOMMENDATION



8.1 Recommendations

The These se are are some some reco recomm mmen enda dati tion ons s & sugge suggesti stion ons, s, whic which h I thin think k will will be helpful in enhancing the image and performance of ACBL. •

Peop People le work workin ing g in the the plan planni ning ng depa depart rtme ment nt,, shou should ld not not only only be qualified but also experienced and familiar with the working of the bank.

•

Scheme should be launching only on the basis of the research work and and shou should ld be disc discus usse sed d befo before re they they are are made made avai availa labl ble e to the the customer.

•

The entire economics scenario should be taken into consideration. The minimum amount of deposit should be increased, in this way ACB will have safer depositors, who will deposit large amount with the bank and will also reduce the number of depositors so that bank can provide better services to its existing clients.

•

Both Both corpor corporate ate bankin banking g and retai retaill bankin banking g should should be combin combined ed to reduce costs. There should be combination between FORIX and retail banking so that those customers, who have defaulted once, are not allowed loan from the bank again.

•

Ever Every y bran branch ch shou should ld be made ade into into sepa separa rate te unit unit and and shou should ld be eval evalua uate ted d indi indivi vidu dual ally ly,, this this way way ACB ACB woul would d know know in whic which h area areas, s, localities, function it is not working up to the standard and give the management a chance to investigate and improve the functions the function for the particular branch.

•

There is and immediate need to make a new recruitment policy so that the bank can get properly trained employees who are suited for the vacant positions. Political interface especially in recruiting should be tolera tolerated ted.. Because Because under under the presen presentt circum circumsta stance nces s of the bank, bank, educ educate ated d and and skil skille led d peop people le are are just just what what the the doct doctor or orde ordere red d to


Internship Report of Askari Bank Ltd. improve the performance of the bank. After all it is the employees who make or break an organization. •

Performance appraisal should be done on a semi-annual basis rather than an annual basis.

•

In this way the employees will be realize his or her short coming and put in more effort.

•

Prom Promot otio ions ns shou should ld not not only only done done the the basi basis s of seni senior orit ity y but but rath rather er performance and the time period spent in a certain position should also also

be

cons consid ide ered

fur further therm more ore,

posi positi tion on

bloc blocka kage ge

shoul hould d

be

eradicated. •

It is recommended that ACB should train its first line and middle line manag anage ers so that they are abl able to build good relat relation ions s with with customers.

•

When I examined the annual report of ACB, their fixed assets were very small in number most of their offices in different cities are on rent. So they have to pay heavy rent, which decreases their profit. ACB should try to buy their own buildings or even it can give it to rent to other companies like "State Life" Head Office of ACB is also in State Life Building.

•

There is no marketing department is should be created in order to cope c ope with future.

•

In ancient days the security of money and money management requirements emerge, the situation for the bank to be established for offering banking function to public and especially to business person. 17th and 18th centuries are witnessed centuries during which banks than were privately owned and were involved in financing activities for merchants, bills collection on behalf of clients.

•

Feeling the importance of banks in economy of the nation most state government started to govern banking and started their interface in this sector so that all financial activities may be monitored. There are various types of banks as per their specialized field of operation.


Internship Report of Askari Bank Ltd. 8.2 Conclusion:

Askari bank limited was established as a semi public commercial bank on November 8, 1949. The primary objective of the setting of the bank was to purchase jute form the growers in the former East Pakistan in the coun counttry. ry. The The ban bank prov provid ides es all all type ypes of ban banking king ser services ces to the the government and private sectors. The overseas branches under a trust deed the bank also provides services as trustee to national investment trust including sage custody of securities on behalf of nit in consideration for annual service charge and commission. Aska Askari ri bank bank limi limite ted d is plac placin ing g high high prio priori rity ty on auto automa mati tion on and and it deve develo lopm pmen ent. t. The The bank bank is shift shiftin ing g its its focu focus s from from rout routin ine e pers person onne nell admini administr strati ation on to human human resour resources ces develo developme pment, nt, with with due emphas emphasis is being being placed placed on the option optional al utiliz utilizati ation on of existi existing ng human human resou resource rces. s. Motivating pay structures and performance based on incentives were also introduced enhance the productivity of employees. Additionally, objective apprais appraisal al system system is being being insti institut tuted ed to facili facilitie ties s transp transpare arent nt rating ratings s / promotion. Askari bank limited is working on the restructuring program to make the bank more attractive with the eventual aim of privatization as the largest bank in the country with a customer base of 8.5 million. The key ke y comp compon onen ents ts of the the rest restru ruct ctur urin ing g prog progra ramm mmer ers s are are redu reduct ctio ionnoperating cost; increased in earnings decrease in non-performing loans, and effective use of information technology. Askari bank limited limited brought brought a great revolution revolution on our banking system by introducing new products, adopting all the new methods and technologies requited for an international bank. Askari bank limited is desired to play a vita vitall role in the dev developm lopme ent of Pak akiistan stan in the the 21st centur century. y. Its management management and workers workers must accept the competiti competition on and challenge challenge of the new millen millenniu nium m throug through h innova innovativ tive e polici policies es produc products ts and untiri untiring ng application.


Internship Report of Askari Bank Ltd. 8.3 REFERENCES

URL:http://www.angelfire.co URL:http://www.angelfire.com/ia/yasir710 m/ia/yasir710/history/histo /history/history.html/onli ry.html/onli ne URL: http://www.pakistanecono http://www.pakistaneconomist.com/issue mist.com/issuel999/issue49/f& l999/issue49/f&m.htm/onl m.htm/onl ine URL: http://en.wikipedia.org/w http://en.wikipedia.org/wiki/State_Bank_ iki/State_Bank_of_Pakista of_Pakistan/online n/online URL: http://en.wikipedia.org/wik http://en.wikipedia.org/wiki/IndustrialJ i/IndustrialJDevelopment DevelopmentJBank/online JBank/online URL: http://en.wikipedia.org/w http://en.wikipedia.org/wiki/AskariJBank iki/AskariJBank/online /online URL: http://en.wikipedia.org/w http://en.wikipedia.org/wiki/MCB_Bank_L iki/MCB_Bank_Liniited/onlin iniited/online e URL:http://en.wikipedia.org/ URL:http://en.wikipedia.org/wiki/Bank_Of_P wiki/Bank_Of_Punjab/online unjab/online URL: http://www.highbeam.com http://www.highbeam.com/doc/lGl-9265528 /doc/lGl-9265528.html/online .html/online URL: http://en.wikipedia.org/wik http://en.wikipedia.org/wiki/Govemor_ i/Govemor_of_State_Ban of_State_Bank_of_Pakista k_of_Pakistan/o n/o nline Askari Commercial Bank, Annual report 2008/online http://askaribank.com. http://askaribank.com. pk/index.php?id=156/online pk/index.php?id=156/online Askari Commercial Bank Limited, organgram, departments, website/online www.askaribank.com.pk/online


Askari Bank Report Original

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