Askari Bank Limited

Acknowledgements
First of all I am thankful to Almighty Allah who gave me knowledge and power to make me able to complete my internship successfully.
I am also thankful to Facility of Allama Iqbal Open University Islamabad which provide me this opportunity to have an experience in a reputed organization and groom myself for the future professional responsibilities.
I offer my heartiest tribute and cordial gratitude to present my thanks to Mr. Manger of ABL Johar Town Branch, Operation Manager and Mr.Wajih-ul-hassan accounts Incharge of ABL Lahore for their kind support and cooperation in this project
Table Of Contents
1 ALLAMA IQBAL OPEN UNIVERSITY
Page No. Acknowledgements Executive Summary Definitions Banking in indo- Pak sub Continent Establishment of the State Bank of Pakistan Types of banks Function of Bank OBJECTIVES OF STUDYING THE ORGANIZATION 1 OVERVIEW OF THE ORGANIZATION 1.1 About Askari Bank Limited 1.2Awards & Achievements 1.3 Branches detail 1.4The Vision 1.5The Mission 1.6Core Values
1.7Corporate philosophy
1 4
1.8Inspiring Relationships
1.9Code of Business Principles
1.2 BUSINESS VOLUME 1.21 Revenue 1.2.2 DEPOSITS 1.2.3 ADVANCES 1.3 Corporate Information
1.31 Staff Strength
ALLAMA IQBAL OPEN UNIVERSITY
1.4 Askari Bank Product line 1.41 CONSUMER BANKING
1.5 BRANCH BANKING

1.6 AGRICULTURE BANKING 1.7 ISLAMIC BANKING 1.8 CORPORATE BANKING 1.8.1 CORPORATE BANKING DIVISION 1.9 INVESTMENT BANKING DIVISION 1.10 Services 1.11.ORGANIZATION STRUCTRUCE Organogram
Br a nc h o r g a ng r am
REVIEWOFVARIOUSDEPARTMENTS
ASKARI BANK LIMITED LAHORE CREDIT DEPARTMENT
CREDIT MANAGEMENT CYCLE DEPOSITS DEPARTMENT REMITTANCES DEPARTMENT TELEGRAPHIC TRANSFER Bills department Account department ACCOUNTING SYSTEM OF THE ORGANIZATION:
Meaning of clearing: Advantages of Clearing Clearing House: Working of clearing house: Procedure of Settlement: Outward Clearing At The Branch: Inward Clearing Of The Branch: FOREIGN CURRENCY ACCOUNTS: 1. STRUCTURE AND FUNCTIONS OF THE ACCOUNTS / 2. FINANCE DEPARTMENT . FINANCE & ACCOUNTING OPERATIONS THE ROLE OF FINANCIAL MANAGER: FINANCIAL MANAGER 1 Structure of finance department (Branch Level ROLE & DUTIES OF FINANCIAL MANAGER: Branch Managers ACCOUNTING OPERATIONS USE OF ELECTRONIC DATA IN DECISION MAKING SOURCES & GENERATION OF FUNDS MOBILIZATION OF FUNDS Critical analysis of the theoretical concepts relating to practical experience Organizational Departments Cash Department Clearing Department Credit Department Bills Department
FINANCIAL ANALYSIS 4 ALLAMA IQBAL OPEN UNIVERSITY
BALANCE SHEET OF FIVE BALANCE SHEET OF FIVE PROFIT & LOSS ACCOUNTS OF FIVE YEARS RATIO ANALYSIS: ABBREVIATION USED IN CALCULATIONS FINANCIAL ANALYSIS (Ratio analysis, Horizontal & Vertical analysis of the organization for the last five years) RATIO ANALYSIS FINANCIAL RATIOS
GRAPHICAL REPRESENTATION OF RATIOS:

PROFITABILITY RATIOS EXPLANATION OF FINANCIAL RATIOS HORIZONTAL ANALYSIS HORIZONTAL ANALYSIS OF FIVE YEARS BALANCE SHEET VERTICAL COMMON SIZE (%) ANALYSIS OF PROFIT AND LOSS ACCOUNT HORIZONTAL ANALYSIS VERTICAL COMMON SIZE (%) ANALYSIS OF BALANCE SHEET VERTICAL COMMON SIZE (%) ANALYSIS OF PROFIT AND LOSS ACCOUNT BALANCE SHEETS VERTICAL ANALYSIS FUTURE PROSPECTS OF THE ORGANIZATION - SHORT-FALLS/WEAKNESSES OF THE FINANCE DEPARTMENT SWOT ANALYSIS Conclusion ANALYSIS, SUGGESTIONS & RECMMNDTIONS 5 ALLAMA IQBAL OPEN UNIVERSITY
Annexure
List Acronyms
Portion A Section I
INTRODUCTION TO ABL
Awards & Achievements The Mission Core Values Corporate Philosophy Code of Business Principles 7 9 9 9 9
Portion B Section II REVIEW

Credit Department Deposit Department Remittance Department Clearing Department
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12 12-15 15-19 21-23
Section III ANALYSIS

SWOT Analysis 6
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Strength Weaknesses Opportunity Threat
26 26 26-27 27
Section IV
FINDINGS AND RECOMMENDATION

Findings Recommendation List of Person Interviewed Reference 29 30 31 32
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EXECUTIVE SUMMARY
On the very first day of my internship I reported to Human Resource Manager / Operation Manager Mr .Awais Ahemd Sheikh. He gave me small introduction of the bank and introduced me to the staff of the bank. Every internee is rotated among the banks departments and so was I. This rotation is done in order to have general concept regarding banks functions, operations and policies. In this rotation the stay in department is usually a week. I have learned more about the Bills and Foreign Trade department and have given below the caption of activities I was involved in during the period of six weeks. In this 12 weeks (3 Months) internship program I have worked in Regional Credit Administration Departments (MIS section, Processing section, Documentation section) Of this high class bank of Pakistan where I have learned about banking from experienced managers running these sections. This report contains the information and learning about ASKARI BANK that I learnt during the 12 weeks internship period in ASKARI Bank limited. This report deals with History & Nature (Business) of the ASKARI BANK its Products and Services, information about main offices and also the review of various departments of the Bank. This report also contains Finance & Accounting operations of the ASKARI BANK role of Financial Manager (Branch Manager), Use of Electronic Data in core decision making and the Sources, Generation and Allocation of funds used in the banking operations of the ASKARI BANK
At the end of this report, on basis of my observation, financial analysis and SWOT analysis of ASKARI BANK is provided. Suggestions are also recommended as per learning from analysis. This report will provide a better and brief learning about ASKARI BANK.
DEFINITION OF BANK
According to Peter, S Rose A Financial Intermediary that accepting deposits and granting loans called Bank. Bank is reliable financial institutions which receive the money from one group of people and lend to other group of people. So bank performs the duty of financial intermediary among the people and creates the credit money
Banking in indo- Pak sub Continent

The Indian society was quite familiar with banking right from the beginning ever since, money became the medium of exchange in Indian society; the banks existed in one from or the other. During the fifth century people were accustomed to use Hindis as a credit instrument. the ancient Indian bankers were also transferring the funds of their customer from one place to other with the help of Hindis. Loans were given to the people against personal securities such as gold ornament goods and immovable properties. Bankers and customers had very cordial relation.
Muslims rulers did not establish bank during Muslim rule in India, Yet they revolutionized the entire financial structure in India whereby old scholar and Mohegan were eliminated.
The English traders came to India in 17th century. The Indian Govt did not take any notable step towards establishment of banks till 1809. When bank of Bengal was given the charter with a capital of Rs 50 laces. A number of foreign banks with their heads offices abroad were carrying their businesses in India through their branches network mainly financing foreign trade and discounting foreign bills of exchange. In the year 1840 bank of Bombay was established followed by bank of Madras in 1843.The loan of 1906-13saw the establishment of a number of Indian banks.In1920 govt promulgated the imperial bank of India act reserve bank of Indian started functioning in 1935, taking over all the responsibilities as central bank of India. The Second World War had a very profound effect on the growth of Indian banking. A large number of new banks came in to being and the old schedule banks opened new branches all over the country. The number of scheduled banks increased from 51 in 1939 to 93 in 1946 and the number of branches rose from 1328 to 3106. How ever after the partition, condition started deteriorating in 1948
Establishment of the State Bank of Pakistan

At the time of independence Pakistan did not have its central bank and reserve bank of India was to serve as central bank for Pakistan also until 30th
September1948. So the Indian rupee contained to be legal tender in Pakistan until the establishment of an independent central bank for Pakistan.
The Reserve Bank of India acted as a Central Bank of Pakistan till 30th September. 1948 But it could not protect the interests of Pakistan.
To remove the financial difficulties and to establish sound banking system Govt. established the State Bank on 1st July 1948. In the development, to banking system it played very important role as a Central bank of the country.
Types of banks
These are the following types of banks Central Bank Commercial Bank Industrial Bank Exchange Bank Saving Bank Mortgage Bank Merchant bank Investment bank Development bank Exip bank Consumer goods bank
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FUNCTIONS OF BANK
Acceptance of Deposit Lending Investing Collecting the Cheque on the Behalf of Customer Receive Valuable (lacquer Available) Buying and Selling Foreign Exchange Remodence of Money e.g. (D.D) Issue Letter of Guaranty Issue Letter of Credit Dealing in Stock Exchange Act as Agent Acting as Trusty Underwriting Travel Cheque Issue ATM Card Debt Card Utility Bill Collection Haj Deposit Facility Advisory Service Dealing with Property
CHAPTER # 2 - OBJECTIVES OF STUDYING THE ORGANIZATION

This internship offers me an incredible opportunity to gain real-world experience in the high-stakes finance industry. Most importantly this internship allows me to distinguish myself from my classmates, as I gain a competitive advantage by connecting my coursework with industry experience
I have a comprehensive knowledge about different section of Finance department. I have a great opportunity to make critical analysis of this theoretical concept relating to practical experience. Practical study of the accounting and financial system. Understanding / Comprehension of the role played by a bank in economy at micro and macro level.
Learn interaction of a bank with other financial institution and local and foreign trade.
To learn the various steps and procedures of credit risk management & Administration Categorize the different products and services offered by the financial institution and note how to most efficiently match those products and services with the needs of customers. Analyze the companys financial condition through the financial statements (compute financial ratios and compare to the industry averages). Finding out the weaknesses, short comings, strengths and beauties of the credit administration department
OVERVIEW OF THE ORGANIZATION
Askari Bank Limited

Askari Bank Limited (ABL) works as a Unit of Army Welfare Trust 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 its units as under: 1. 2. 3. 4. 5. 6. Askari Associates. Askari Leasing. Askari General. Private Business. Textile Mills. Cement Industry.
7. Askari Commercial Bank
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Askari Bank Ltd (formerly Askari Commercial Bank) was incorporated in Pakistan on October 9, 1991, as a Public Limited Company. It started its operations during April 1, 1992. The bank principally deals with banking, as defined in the Banking Companies Ordinance, 1962. The Bank is listed on the Karachi, Lahore & Islamabad Stock Exchanges and its shares are currently the highest quoted from among the new private sector banks in Pakistan. Askari Bank has expanded into a network of 226 branches, including 31 dedicated Islamic banking branches, and a wholesale bank branch in Bahrain. A shared network of 4,173 online ATMs covering all major cities in Pakistan supports the delivery channels for customer service. Askari Bank achieved planned growth in business and operations during 2009. The total assets of the Bank amounted to Rs.254 billion as at December 31, 2009, registering an increase of 23 percent over December 31, 2008.Customer deposits reached Rs.206 billion by December 31, 2009, an increase of 23 percent over December 31, 2008. Profit after taxation showed an increase of 187% at Rs.1.11 billion, when compared with last years Rs.386 million. The banking spread registered slight improvement over last year, despite absorbing the adverse impact on net mark-up income due to increased nonperforming advances. The Banks NPLs stood at Rs.17.73 billion as of December 31, 2009 compared to Rs.11.69 billion at the end of previous year, an increase of 52 percent.
Askari Bank Limited

Type Industry Founded Headquarters Private Money Center Banks October 09, 1991 Rawalpindi, Pakistan Lt. Gen. Waseem Ahmed Ashraf, Chairman Key people & M. R. Mehkari Products Revenue Net income Total assets Banking Rs 1.10 billion PKR (2009)[1] Rs 9.03 billion PKR (2009)[1] Rs. 254,32 billion PKR (2009)[1] 7,279 (2009)[1] CEO
13 Employees
Askari Bank is the only bank with its operational Head Office in the twin cities of Rawalpindi-Islamabad, which have relatively limited opportunities as compared to Karachi and Lahore. This created its own challenges and opportunities, and forced us to evolve an outward-looking strategy in terms of our market emphasis. As a result, we developed a geographically diversified assets base instead of a concentration and heavy reliance on business in the major centers of Karachi and Lahore, where most other banks have their operational Head Offices. Model town Lahore Branch is the new born branch of Askari bank in this residential area. In a short span of time of one year this branch increase their business remark
Awards & Achievements
Best Retail Bank in Pakistan by The Asian Banker 1st Consumer Choice Award" by the Consumer Association of Pakistan. 2004 Corporate Excellence Award" by the Management Association of Pakistan (MAP). 2002, 2003 & 2004 The Best Bank in Pakistan by Global Finance magazine. 2001 and 2002 Best Consumer Internet Bank Global Finance magazine. 2002 and 2003. Euro money and Asia money Awards" 1994, 1996 and 1997. Best Presented Annual Accounts by (ICAP) and (ICAMP). 2000, 2001and 2002. The Best Presented Annual Accounts by South Asian Federation of Accountants (SAFA), in the SAARC region The Best Consumer Banking Award 2006 by the Consumer Association of Pakistan. 2007 The Best Retail Banking Award 2008 by Pakistan Guarantee Export Corporation Ltd. 2008 "Best Corporate Report Award for the year 2008" by ICAP & ICMAP. 2008
Over the years, Askari Bank has proved its strength as a leading banking sector entity, by achieving the following firsts in Pakistani banking. I. First Pakistani Bank to offer on-line real time banking on a countrywide basis. II. First Bank with a nation-wide ATM network 14 ALLAMA IQBAL OPEN UNIVERSITY
III. First Bank to offer Internet Banking services IV. First Bank to offer E-Commerce solutions
Branches detail North Region

Islamabad
Rawalpindi I Rawalpindi II Peshawar Azad Kashmir Corporate Islamic Banking
15 16 11 13 8 1 8
Central Region
Lahore I Lahore II Sahiwal Faisalabad Gujranwala Multan Corporate Islamic Banking Karachi I Karachi II Karachi III Karachi IV Hyderabad Quetta Corporate Islamic Banking Wholesale Bank Branch (Bahrain) 12 11 7 11 11 11 1 12 10 10 11 11 14 9 1 11 1
South Region
Total branches /sub-branches 226
Registered & Head Office

AWT Plaza, The Mall, P.O. Box No. 1084
15
Rawalpindi- 46000, Pakistan. Tel: (92 51) 9063000 Fax: (92 51) 9272455
Website
www.askaribank.com.pk
E-mail
webmaster@askaribank.com.pk
The Vision
To be the Bank of First Choice in the Region
The Mission
To be the leading private sector bank in Pakistan with an international presence, delivering quality service through innovative technology and effective human resource management in a modern and progressive organizational culture of meritocracy, maintaining high ethical and professional standards, while providing enhanced value to all our stakeholders, and contributing to society.
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Core Values
The intrinsic values, which are corner stones of our corporate behavior, are:
Commitment Integrity Fairness Team-work and Service
Corporate philosophy
Inspiring Relationships
From knowing our customer requirements to understanding employee needs, from utilizing modern technology to making responsible social contributions, from enhancing stake-holders value to practicing corporate ethics We are continuously and consistently striving to address newer challenges with a single motivation:
the power to inspire and be inspired
Code of Business Principles

Our Code Of Business Principles is to:
Deliver solutions that meet customers financial needs; Build and sustain a high performance culture; 17 ALLAMA IQBAL OPEN UNIVERSITY
Build trusted relationships with all stakeholders; Build and manage the Banks portfolio of business to achieve strong and sustainable shareholders returns; and Create and leverage strategic assets and capabilities for competitive advantage
Customers
Fixed deposits
Saving deposits Current account -non-remunerative Special exporters account Margin account Other
2009 47689401 110297787 44340561 21743 1853597 268063
2008 39675699 80428214 43245593 30562 1983653 257099
2007 29997574 81605907 28465592 90474 1640800 415904
2006 40,349,941 64,698,318 23,925,338 24,306 1,375,381 290,634
2005 37,999,587 57,854,949 20,089,228 304,924 1,076,511 125,010
Financial Institutions
Remunerative deposits Non-Remunerative deposits TOTAL 1494658 268063 206233873 2047388 8364 167676572 818132 2324 143036707 1,175,365 131,839,283 1,344,481 118,794,690
particulars deposits
In local Currency In foreign currency TOTAL
of
174,277,597 31,692,630 205,970,227 141885129 25791443 167676572 123505671 19531036 143036707 110,008,367 21,830,916 131,839,283 98,378,918 20,415,772 118,794,690
ADVANCES
in 000 Loans, cash credits, running finances, etc. In Pakistan Outside Pakistan
Rupees
2009 125,995,317 2,106,040 128,101,357 1,635,158 281,514 9,582,481 8,027,833 17,610,314 147,628,343 147,628,343 -11,658,161 -585,642 -350,041 -12,593,844 135,034,499 139,014,592 8,613,751 147,628,343 119,371,026 28,257,317 147,628,343
2008 120,029,501 2,993,878 123,023,379 2,092,884 5,737,310 8,865,648 14,602,958 139,719,221 111,752 139,830,973 -10,025,157 -585,642 -414,184 -11,012,731 128,818,242 130,774,111 9,056,862 139,830,973 111,043,245 28,787,728 139,830,973
Ijarah Financing - In Pakistan Net book value of assets / investments in Ijarah under IFAS 2 in Pakistan Bills discounted and purchased (excluding treasury bills) Payable in Pakistan Payable outside Pakistan
Financing in respect of continuous funding system Advances - gross Provision against non performing advances Specific provision General provision General provision against consumer financing Advances - net of provision Particulars of advances In local currency In foreign currencies Short term ( for upto one year) Long term ( for over one year) TOTAL
Annexes
Corporate Information
Board of DirectorsDirectorss
1.Lt.Gen.javed zia Chairman 2.Lt. Gen. (R) Imtiaz Hussain 3.Maj. Gen. (R) Saeed Ahmed Khan 4.Mr. Zafar Alam Khan Sumbal 5.Mr. Muhammad Riyazul Haque
6. Mr. Shahid Mahmud 7. Mr. Ali Noormahomed Rattansey, FCA 8. Dr. Bashir Ahmad Khan 9. Mr. Tariq Iqbal Khan, FCA
President & Chief Executive

1. Mr. M. R. Mehkari
Audit Committee
1. Dr. Bashir Ahmad Khan(Chairman) 2. Mr. Ali Noormahomed Rattansey, FCA 3. Mr. Tariq Iqbal Khan, FCA
Company Secretary
1. 1. 1. Mr. M. A. Ghazali Marghoob, FCA Mr. Saleem Anwar, FCA F. Ferguson & Co
Chartered Accountants
Chief Financial Officer Auditors Legal Advisors

1. 1. Rizvi, Isa, Afridi & Angell Dr. Muhammad Tahir Mansoori
Shariah Advisor
Staff Strength
STAFF STRENGTH
Permanent Temporary / on contractual basis Daily wagers Commission based 20 2009 4,393 1,646 1 120 2008 4,252 1,703 541 2007 3,834 1,273 789 2006 3,241 687 657 2005 2,754
Banks own staff strength at the end of the year Outsourced Total staff strength at the end of the year
Staff retirement benefits
6,159 1,111 7,270
6,496 1,064 7,560
5,896 912 12,704
4,585 641 9,811
2,754
The Bank operates an approved funded gratuity scheme for all its regular employees. Contributions are made in Accordance with the actuarial recommendation. The actuarial valuation is carried out periodically using Projected Unit Credit Method. The actuarial gains / losses in excess of corridor limit (10% of higher of present value of obligation and fair value of plan assets) are recognized over the expected remaining working life of its employees.
Askari Bank Product line

Askari bank offers a full range of banking products and services to its customers across the country. The elegantly designed product centers at its branches offer to the customers the ease and convenience of conducting banking transactions in full confidentiality & privacy in a first class way, the personalized and professional services of dedicated relationship managers, committed to meeting all financial needs of the customers not only help the customers in their investment plans but also save them from the hassle of waiting in queues.
Product lines CONSUMER BANKING

2. 3. 4. 5. 6. 7. ASK 4 CAR PERSONAL FINANCE Mortgage Finance VISA DEBIT CARD CREDIT CARD MASTER CARD
BRANCH BANKING
1. Askari Deposit Multiplier Account 2. Askari Mahana Bachat Account: 3. Askari Paishgi Munafa Account 4. Value Plus Deposit Account 21 ALLAMA IQBAL OPEN UNIVERSITY
5. Investment Certificates 6. Askari Rupee Traveler Cheques 7. Askari Roshan Mustaqbil Deposit 8. Askari Paishgi Munafa
AGRICULTURE BANKING
1. KISSAN EVER GREEN FINANCE 2. KISSAN TRACTOR FINANCE 3. KI 4. KISSAN LIVESTOCK DEVELOPMENT FINANCE 5. KISSAN FARM MECHANIZATION FINANCE 6. KISSAN AABPASHI FINANCE
ISLAMIC BANKING
1. Ijarah Bi Sayyarah 2. Home Musharakah 3.
Deposit Schemes
CORPORATE BANKING
1.
1. 2. 3. 4. 5. 6. 7. 8. 9.
CORPORATE BANKING DIVISION
FACILITIES
Working Capital Facilities Term Loans Structured Trade Finance Facilities Letters of Guarantee Letters of Credit Fund Transfers / Remittances Bill Discounting Export Financing Receivable Discounting
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INVESTMENT BANKING DIVISION
Services
Electronic Bill Payment Service
Electronic banking
2. 3. 4. 5. 6.
CASH MANAGEMENT SERVICES INTERNET BANKING SERVICES CALL CENTER ATM NETWORK
CONSUMER BANKING
Alternative term for retail banking.( Savings accounts, consumer loans, credit cards, etc., and other such services provided to individuals. Also calledconsumer banking. See also corporate banking andwholesale banking. Our consumer finance is focused on expanding target market and enhancing our portfolio through new and improved initiatives and products. Special attention is being given to business opportunities involving strategic alliances to earn sustainable returns, with greater emphasis on secured form of consumer lending and an aim to increase product offerings while improving and maintaining a quality of its risk asset portfolio..
ASK 4 CAR
The Askari bank also provided the service of Ask 4 car
Features Product Type: Mark-up: Down Payment: Charges: Insurance: Mark-up: Down Payment: Charges: Insurance:
Makes: Suzuki, Honda, Toyota & Hyundai (Please note 800 CC used vehicles are not allowed) Vehicle Age: Ownership Status: Year of manufacturing not older than 5 years at the time of loan Third Registration in the name of AKBL (Registration in the cities where Askari Branches are located)
Details Financing for New & Used Vehicles 18% p.a for 3 Year, 19% p.a for 4 Year & 20% p.a for 5 Year Minimum 15% & Maximum 60% As Per "Schedule of Bank Charges" Built in Insurance 20% p.a for 3 Year, 21% p.a for 4 Year Minimum 30% & Maximum 60% As Per "Schedule of Bank Charges" Built in Insurance
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PERSONAL FINANCE
One can avail unlimited opportunities through Askari Banks Personal Finance. With unmatched financing features in terms of loan amount, payback period and most affordable monthly installments, Askari Banks Personal Finance makes sure that you get the most out of your loan. No matter what your need is, Askari Bank has more ways to serve you than ever before.
Features
Detail
pplicant/ Borrower: Age: Salary/ Income:
Pakistani Resident (SEB/SEP cases are not entertained currently) Salaried: 21-61 years (maturity of loan at 61 yrs.) Rs. 30,000/-per month
Employment Status: Debt Burden: Credit Limit: Tenor: Mark up : Secured Mark up : Unsecured Reference: Processing / Others Charges:
1 Year Maximum 50% of the net disposable income Upto Maximum of Rs. 500,000/- (Subject to maximum of 50% DBR & Industry benchmark is maximum Rs. 1.000 M) 1 - 5 years Salaried: 19% p.a Salaried: 21% p.a & Contract Employees 24.2% p.a Two (2) references with complete details (one should be relative) As per "Schedule of Bank Charges"
Mortgage Finance
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Ever since the inception of life, shelter has been rated among the primary needs of mankind. Owning a home for oneself still remains an exclusive dream for many. Askari Bank has made the realization of your dream to have a house of your very own possible. Whether you plan to build a house, tailor made to your requirements or buy a constructed house, Askari mortgage finance enables you to pursue your goal without any problems. Mortgage is a premium home financing product for customers aged between 23 65 years belonging to the upper, upper middle and middle income groups, residing in the urban areas of Pakistan Build a Home: Buy a Home Buy a Plot and Construct: Renovation Balance transfer facility
Feature Age Detail Primary Borrowers age Salaried Minimum age: 23 Years Maximum age: 60 Years at maturity SEB/P Co-borrower Minimum age: 23 Years
Maximum age: 65 Years at maturity Only Son and Spouse are allowed as Co-borrower. However, a blood relative is allowed in case of joint ownership in property:
Minimum age: 18 Years Maximum age: 65 years Income Rs. 35000/- per month
Additional / Income Source
Surrogate
1. Rent Agreement has become a major source of additional income of our applicants. Therefore, to authenticate, all rent agreements will have to be supported by the title documents of that particular property.
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2. The title has to be in applicants name (primary or co-borrower).
3. Any other source of Income which can be verified through documents.
a) Salaried Employees with a minimum service length of 2 years including present employer. )Self Employed Professionals Architects, Doctors/ Dentists, Engineers, Chartered Accountants and Consultants. Minimum 2 years in profession. c) Self Employed Business Individuals Length of Employment 1. Minimum 3 years in same line of business 2. In family businesses only, where a Director was engaged in the business prior to being elevated to Director, or was made Director at least a year ago due to educational responsibilities/ engaged in other family related business, the same will also be considered. The business in such case must be 3 year old at least, and the Director applying for loan must have been in the same post for minimum of 1 year.
RODUCT CATEGORY Build a Home (Tranche Loans) Buy a Home Buy a plot + Construction Renovation
MINIMUM LIMIT Rs. 300,000 Rs. 300,000 Rs. 300,000
MAXIMUM LIMIT Rs. 30,000,000 Rs. 30,000,000 Rs. 30,000,000
Loan amount calculation not to exceed the 50% of the total asset value OR 60% of Assets value, whichever is lower.
Askari Debit Card
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Askari Bank is committed to provide you innovative and competitive solutions to your banking needs in a more efficient and personalized manner. Your Bank enjoys a strategic competitive advantage over all domestic players by virtue of its leadership, large network and technological advancement. In line with our tradition of innovation, Askari Bank takes pride in announcing launch of Askari Bank's Debit Card. Askari Debit Card means freedom, comfort, convenience and security, so that you can have retail transactions with complete peace of mind. Askari Debit Card is your new shopping companion which enhances your quality of life by letting you do shopping, dine at restaurants, pay your utility bills, transfer funds, withdraw and deposit
VISA DEBIT CARD

Features Details
Product Type: Distinctive Features: Classic Gold
Debit Card Cash withdrawal Limit is 50,000, Shopping Limit 200,000 & Funds Transfer Limit 250,000. Cash withdrawal Limit is 100,000, Shopping Limit 250,000 & Funds Transfer Limit 300,000.
MASTER CADR
. Card
Account" means the Askari MasterCard Account opened by the bank for the purpose of entering debits incurred by or for the amount of, and credits received by or for, the Cardholder and Supplementary Cardholder, if any, under these terms and conditions and includes, without limitation, all debits incurred resulting from any Charges and/or Liabilities arising out of or in connection with any Card Transaction or otherwise. "Card Transaction" means any Cash Advance or the amount charged by the Bank or any Merchant for any goods, services. benefits or reservations obtained by the use of the Card or the card numbers or in any other manner by the Cardholder and/or Supplementary Cardholder, including without limitation, mail, telephone or facsimile orders or reservations authorized or purported to have been authorized or made by the Cardholder and/or Supplementary Cardholder, regardless of whether a sale or other voucher or form is signed by the Cardholder or Supplementary Cardholder
CREDIT CARD
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Features Eligibility:
Details Resident Pakistanis Basic Salaried: 21-61 years Min 18 Yrs.- No Max Age limit Supplementary Min 18 Yrs.- No Max Age limit
Age:
SEB/SEP: 21- 65 years Approved Cat. A B C NAC Silver Perm. 30,000/30,000/35,000/40,000/Cont. 35,000/35,000/38,000/45,000/Gold Perm. 50,000/50,000/55,000/60,000/Cont. 60,000/60,000/70,000/80,500/-
SEB/SEP Platinum Card Salary/ Income per Month: Employment Status: References: Debt Burden: Charges: Salaried 150,000/-
Avg. Bal. Rs. 30,000/- 119,999/- (For last 6 mth. statement)
Avg. Bal. Rs. 120,000/- 400,000/- (For last 6 months bank statement)
Businessman 200,000/-
Salaried: 1 year & SEB: 1 year 1 relative + 1 associate not working in the same organization Maximum 50% of the net disposable income. (Including all facilities appearing in ECIB) As per schedule of charges Salaried Basic/Supply Balance Transfer 3.2% per month 2.15% per month SEB/SEP 3.45% per month 2.15% per month
Mark-up Rates:
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BRANCH BANKING
Engaging in banking activities such as accepting deposits or making loans at facilities away from a bank's
home office. Branch banking has gone through significant changes since the 1980s in response to a more competitive nationwide financial services market. Financial innovation such as internet banking will greatly influence the future of branch banking by potentially reducing the need to maintain extensive branch networks to service consumers .
Askari
Deposit
Multiplier
Account
Aim higher with the Askari Deposit Multiplier account. This account is especially designed for individual investors whose aim is to invest their funds for a longer term with higher returns. This Term Deposit has a 10 years tenure and offers a competitive rate of return paid on maturity. It is an ideal option for investors who wish to start saving for their future today. Mentioned Below are some of the Salient Features of the account
atures Product Type: Eligibility: Balance Requirement: Tenure: Profit payment: Profit Rates: Servicing: Financing Limits:
Details Term Deposit Pakistani Resident (Individuals Only) Minimum Rs. 10,000,000/10 Years On Maturity Competitive Available at all Askari Bank branches Upto 90% of the principal amount. 50,000/& Maximum Upto Rs.
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Askari Mahana Bachat Account
Askari Mahana Bachat Account is a Term Deposit designed for individual customer with a short to medium term investment appetite. It offers customers the option of investing for 1 or 3 Year tenures and has been designed keeping in view savings needs of customers who want profit on a monthly basis. With competitive rates of return paid monthly on the 1st of every month and the option of getting a financing facility up to 90% the Askari Mahana Bachat Account caters to your saving needs without blocking your funds for a longer duration. Some of the salient features of the account are mentioned below
tures Product Type: Eligibility: Balance Requirement: Tenure: Profit Amount: Profit payment: Profit Rates: Servicing: Financing Limits: Details Term Deposit Pakistani Resident (Individuals Only) Minimum Rs. 50,000/- & Maximum Up to Rs.10,000,000/- (In multiples of Rs. 25,000/-) 1+3 Years Earn Rs. 842/- per month on investment of every Rs. 100,000/- for one year!" Earn Rs. 917/- per month on investment of every Rs. 100,000/- for three years! Monthly - 1st of every month Competitive Available at all Askari Bank branches Up to 90% of the principal amount
Askari Paishgi Munafa Account
Askari Paishgi Munafa Account is a unique term deposit designed to meet the immediate financial needs of Individual investors who want to invest funds for a medium term. Now you dont have to wait the entire term to receive your profit. The most significant feature of this product is that the customer receives 30 ALLAMA IQBAL OPEN UNIVERSITY
the entire profit upfront at the time of placement. So you can fulfill your financial needs today without depleting your savings. Salient features of the account are mentioned below:
Features Product Type: Eligibility: Minimum Amount: Profit Amount: Tenure: Details Term Deposit Pakistani Resident (Individuals) Rs. 100,000/- or in multiples of Rs. 100,000/Rs. 12,000/- on a deposit amount of Rs.100,000/15 Months 1. Financing Facility up to 80% of Principal amount.
2. Free Visa Debit Card issuance.
3. No Minimum Balance requirement in checking account.
4. 2 Free Pay Orders in a month. (Withholding Tax and other Government charges will be applicable as per Law) Benefits: 5. No maximum limit for investment.
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Value Plus Deposit Account
Askari Bank leads the way, yet again with the introduction of Askari Value Plus Rupee Deposit Accounts, which promise greater financial freedom and security, in an un-matched way.Now you can open a "Value Plus Account" while enjoying the flexibility of a normal checking account
atures Types of Value Plus Account: Details
Value Plus Current, Saving & Time Deposits 1. Free issuance of Debit Card 2. Free global accidental insurance coverage against debit card irrespective of balance in the account or age of the cardholder
3. Free ATM Cash Withdrawal insurance 4. Free online funds transfer facility 5. Free internet banking services
6. Free of cost 24 hours global accidental insurance coverage up to Rs. 2 million 7. Facility of Supplementary Debit Cards 8. Monthly returns on saving deposits 9. Partial encashment facility for time deposits 10. Automatic roll over facility for time deposits 11. Our un-matched service quality
Why Askari Value Plus Account?
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Investment Certificates
Askari Bank's Investment Certificates not only provide the added security, investment and monthly return to the customers. These certificates are negotiable and can be transferred to third party. Investment Certificates can be issued for a period of 3 months and profit is payable on monthly basis through pre-printed tear-off coupons
Features Facility: Details Investment Certificates 1. Free issuance and free encashment 2. Account relationship with Askari Bank is not mandatory 3. No penalty on pre-mature encashment 4. Negotiable and payable in Pakistan in Pak rupees only 5. No purchasing limit 6. Valid until encashed 7. Encashable at all Askari Bank Branches 8. Profit is payable on monthly basis through pre-printed coupons 9. In case of loss / theft or damage, there is replacement / refund to the original purchaser Important Features: 10. Encashment by third party 11. There is no penalty on pre-mature redemption, except that profit coupon shall be valid only for completed month
Askari Rupee Traveler Cheques
Askari Bank Limited has always remained at forefront in introducing innovative and unique products in banking sector. Our financial instruments provide greater financial freedom and security in an unmatched way to our valued customers. Askari Bank offers you its "Rupee Traveler Cheques" eliminating all financial risks while traveling. So avoid risk of carrying cash through Askari Bank's Rupee Traveler Cheques
eatures Product Type
Details
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Eligibility: Denominations Validity
Any Literate individual customer (Account is not mandatory) Rs. 10,000/Until encashed Issuance Desirous customer will submit the Application Form (duly filled/ signed) in any branch of Askari Bank Limited. After verification, branch will forward the form to Investment Products Unit. IPU will keep the record of the customer and system will automatically update that customers transaction. Encashment Original purchaser will approach the nearest branch. Purchaser will sign RTC on the face and branch will verify his signatures with the signature mentioned on CNIC before encashment of the same.
Processing
Charges
Refund processing charges are Rs. 1,000/- and Issuance/Encashment are free.
Commission With Holding Tax
Rs. 30 per RTC on holding the same for 30 days or more
0.3% on Issuance & Encashment in excess of Rs. 25,000/-
Askari Roshan Mustaqbil Deposit
The Askari Roshan Mustaqbil Deposit is a saving plan created for individual investors who wish to invest now for a regular return at a later stage while keeping their principal amount intact. Now you can invest a substantial amount without having to block your entire savings like a regular Term Deposits. With Askari Roshan Mustaqbil Deposit you can invest in the form of monthly deposits for a period of five years and get paid back the same monthly deposit amount every month for the next five years while receiving their principal amount in full at the end of the tenure. With Askari Roshan Mustaqbil Deposit you can double your investment in a time period of ten years. An ideal account for customers who wish to plan for their retirement.
Features Product Type: Details Term Deposit
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Eligibility: Balance Requirement: Tenure: Profit payment: Profit Rates: Profit Rates: Servicing:
Pakistani Resident (Individuals Only) Minimum Rs. 5,000/- & Maximum Upto Rs. 50,000/- (In multiples of Rs. 5,000/-) 10 Years (5 + 5) Monthly on completion of first 5 years Monthly - 1st of every month Competitive Available at all Askari Bank branches
Financing Limits:
Upto 90% of the principal amount after completion of first 5 years
AGRICULTURE BANKING
The production of food through the raising of crops and/or animals. The development of agriculture approximately 9,000 years ago is considered to be one of the most important revolutions in human thinking, one that made civilization possible. The trade of agricultural products, such as wheat or coffee, gave rise to the first exchanges. Even now, agricultural products are among the most important commodities that are traded.
Agriculture Finance Solutions

The role of agriculture in Pakistan economy is of pivotal nature. Due to diverse geographical and climatic conditions the country has tremendous potential for growth and development in agriculture. However, adequate and timely financial assistance to the farmers will improve production potential of agriculture sector in the country. The modern concept of agricultural credit envisages establishment of an efficient institutional credit system to serve as a package of credit, supplies and knowledge for the overall strength of the farmers who at present suffer from low productivity and financial insecurity. A successful credit evaluation system, therefore, should have the basic ingredients to provide adequate amount at the right time and in the right form to help farmers in making a productive use of loan funds
KISSAN EVER GREEN FINANCE

Askari Bank has launched this program with the sole motive to provide dignity, prosperity and freedom to the tiller of the land. The program is designed to help small, medium and large farmers in meeting their short-term input requirements against one time sanction and automatically renewable up to 3 years subject to its stipulated utilization/periodical adjustment. The credit line is sanctioned in the light of available cash flows and input requirements i.e. Seeds, Fertilizer & Pesticides etc.
eatures Product Type: Eligibility: Security: Profit Amount: Tenor: Markup: Details Profit Earning Account Pakistani Resident (Individuals) Mortgaged charge on agri land through Zari Pass Book. Profit on credit balances will be paid on half yearly basis as declared by the bank on PLS savings accounts. Yearly Basis The mark-up is charged for the actual days the finance is utilized. 1. A special cheque book is issued to the farmer. 2. Automatic renewal upon adjustment of entire principal amount with mark-up once in a year. 3. The account is farmer friendly which benefits the farmers both ways. If the account is in credit, it earns profit, otherwise it provides instant finance, to the farmer for his agriculture needs.
Benefits:
KISSAN TRACTOR FINANCE
Traditional modes of cultivation viz Bullocks, Camels, horses etc can no longer keep pace with the demands of present times due to manifold increase in the population. Power in the form of modern technology is therefore the need of the hour. To meet this emergent requirement, Askari Bank has launched a Askari Kissan Tractor Finance to bring power to the fields.
Feature Details
Product Type Eligibility : Tenure:
Profit Earning Account Pakistani Resident (Owner as well as non-owner farmers.) 5 Year. The farmer will have privilege of availing non-funded facility at a reduced cost under this program on account of more equity participation. Good farmer bonus will be available to the borrower in case the loan is repaid as per terms of sanction. The farmers life & tractor will be insured against contingencies, which will provide comfort and piece of mind. Priority in delivery of tractor will be given by manufacturer as per arrangements with the bank.
Benefits
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KISSAN LIVESTOCK DEVELOPMENT FINANCE

In order to supplement the income of the farmer, Askari Bank has launched a program enabling the farmer to purchase Milch Animals, Goats, Sheep, Poultry and Fisheries without incurring extra expenditure because of availablility at his farm. He will be able to get milk, meat and eggs etc., which normally do not form part of his diet. This program has the added advantage that besides fulfilling his own familys consumption needs he will be able to market the surplus and earn additional income. This will further improve their cash flows to repay their other Loans / Revolving Credit on due date.
eatures Product Type: Eligibility:
Details To purchase Milch Animals, Goats, Sheep, Poultry and Fisheries without incurring extra expenditure because of availability at his farm Pakistani Resident (Owner Farmers) The program will provide regular day to day income to the farmer to meet his own consumption and surplus to be marketed. This will revive / accelerate and supplement the income generating capacity.
Benefits:
It will enhance the repayment capacity of the farmer.
KISSAN FARM MECHANIZATION FINANCE

Beside Power at the farm i.e. Tractor, the benefits / advantages of power are maximized with the use of Mechanical Support i.e. modern and improved equipments which essentially complement one another due to their cost effectiveness and time efficiency. Askari Bank has launched an Askari Kissan Farm Mechanization Finance for the assistance of the small farmers and provide finance for farm equipment, trailer, thresher, drills & rotavators etc.
tures Product Type Eligibility: Details Finance for farm equipment, trailer, thresher, drills & rotavators etc. Pakistani Resident (Individuals) Under this program the farmer will get benefit of use of modern agricultural tools, implements and equipments which are cost and time effective. Improves per acre yield of agri crops and quality of agriculture produce to get good price in the market. Benefits: Helps to match / compete with international standards for exportable agriculture produce.
KISSAN AABPASHI FINANCE Agriculture farming is impossible without adequate water. We can combat the prevalent water scarcity by harnessing more natural resources. Increased use of mechanical means thus provides a ready alternative. Keeping in view the scarcity of water, which is the lifeblood of arable lands, Askari Bank has started a program for farmers, to finance installation of Tube-Wells (electric, diesel and solar energy units) water management equipments and water channel development etc., which will help farmers to make optimum use of limited water resources. 37 ALLAMA IQBAL OPEN UNIVERSITY
oduct Type Eligibility:
Benefits:
To finance installation of Tube-Wells (electric, diesel and solar energy units) water management equipments and water channel development etc., Pakistani Resident (owner of farmers) 1. Help farmers to make optimum use of limited water resources. 2. To facilitate the farmer, to overcome the scarcity of water. 3. To develop mechanical water resources, sprinkler and drip system etc. 4. To avoid traditional / inefficient modes of irrigation and waste of available water. 5. To manage natural / available resources through water management practices.
ISLAMIC BANKING
Islamic Banking Services
Islamic Banking was launched under the brand 'Askari Islamic Banking', by opening 6 dedicated Islamic Banking branches in major cities of the country. Further expansion is planned with improved capabilities for offering products conforming to the Shariah principles. Askari Islamic Banking opens the doors for Halal banking solutions. Our objective is to put in place an efficient banking system suuportive to economic justice and welfare of society in line with Shariah standards. A comprehensive range of Islamic Banking products and services is bieng offered, in order to meet customer's demand of Shariah Compliant Banking, in the following areas:

Islamic Corporate Banking Islamic Investment Banking Islamic Trade Finance Islamic General Banking Islamic Consumer Banking
Islamic Banking products have been approved by the Bank's Shariah Advisor. As per Shariah requirements, funds and products of Islamic Banking are managed seperately from the Conventional Banking side. All funds obtained, invested and shared in Halal modes & investments, under supervision of the Shariah Advisor. Ijarah Bi Sayyarah((IJARAH
CAR FINANCING))
Ijarah is a rental agreement, under which the usufructs of an asset is transferred to the client on pre-agreed terms and conditions. It is a Shariah Compliant mode of finance, adopted by Askari Islamic Banking to meet the Car Financing needs of its valued customers. e are Shariah Compliant and market competitive. Askari Islamic Banking deals in all kinds of new, locally assembled, as well as imported vehicles. Terms and conditions we offer are most flexible, with prompt processing time. Moreover, in order to enhance, customers convenience, we offer family income evaluation plan, where our valued clients can also avail Ijarah Bis Sayyarah facility for more than one vehicle.
Home Musharakah
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Everyone wants to live in the best place that is comfortably affordable. This means being able to cope with other financial commitment, while still having money left over for extras and unexpected expenses. Askari Islamic Banking is pleased to offer Shariah Compliant Home Financing. We facilitate you to Purchase, Construct, Improve and Transfer of the property through Diminishing Musharakah
Deposit Schemes
Askari Bank are also provided the deposit schemes .In Islamic country may of people are to take the definite for this deposit scheme.
Islamic Banking Services Askari Bank Limited - Islamic Banking opens the doors for Halal banking solutions. Our objective is to put in place an efficient banking system supportive to economic justice and welfare of society in line with Shariah standards. The Bank has expanded its Islamic Banking network to 29 branches and 02 sub-branches in the major cities of Pakistan, covering the Capital and the four provinces. Further expansion is planned with improved capabilities for offering products conforming to Shariah principles. All Islamic Banking Products are approved by the Shariah Advisor of the Bank. As per Shariah Requirements, funds and products of Islamic Banking are managed separately from the Conventional banking side. All funds obtained, invested and shared in Halal Most& investment.
CORPORATE BANKING
CORPORATE & INVESTMENT BANKING GROUP At Askari Bank, we understand the unique business requirements of our corporate and institutional clients, and accordingly the Corporate and Investment Banking Group (CIBG) strives to meet their expectations through provision of customized and relationship based banking approach. CIBG approach to provision of Askari Banks comprehensive and integrated, multi-product services is based upon a client-centric and distribution-focused business model, supported by a culture that prioritizes client relationships and economic returns. CIBG is specifically structured to provide dedicated banking services and products to its corporate customers through two key divisions.
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CORPORATE BANKING DIVISION
The Corporate Banking Division (CBD) works on a long-term relationship based business model to provide a single point within the bank for meeting all business requirements of its corporate and institutional customers, including public sector enterprises, with the primary objective of enhancing customer service. Askari Banks Corporate Banking Division, we remain committed to providing you with innovative and integrated financial solutions to all your day to day and one time financing needs, as well as offering various products and services to maximize returns on your investments..
10. 11. 12. 13. 14. 15. 16. 17. 18.
SERVICES
Working Capital Facilities Term Loans Structured Trade Finance Facilities Letters of Guarantee Letters of Credit Fund Transfers / Remittances Bill Discounting Export Financing Receivable Discounting
INVESTMENT BANKING DIVISION
The Investment Banking Division (IBD) at Askari focuses on origination and execution of a full range of financial advisory and capital raising services to corporate and institutional clients as well as actively managing the banks proprietary investments in the local equity and debt capital markets. Whether your company is seeking to access the local or cross border syndications and debt capital markets, project financing needs, advisory services related to M&A or the local equity capital markets for raising capital, we are well positioned to provide due assistance. We can create and tailor the right structured solutions for your business needs in order to enhance shareholders wealth and your market competitiveness Our investment banking team consists of highly qualified and experienced individuals from the local and international financial markets, ably supported by over 30 relationship managers out of 3 regions in the country, with well established execution experience and distribution capability.
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1.10 Services
InternetBankingServices In pursuance of our quest to provide the most modern service to our customers, we offer banking through internet. Askari Bank is the first bank in Pakistan to provide such service to its valued customers which is absolutely FREE.
Electronic Bill Payment Service The way of electronic bill payment are in which include through ATM card and I-NET bannking 3CASH MANAGEMENT SERVICES
Askari Cash Management Services, aimed to effectively manage the accounts receivable portfolio of medium and large corporate entities. While this service helps the corporate entities to improve their liquidity, due to our well diversified branch network. The service primarily aims at providing clearing, collection and cash / transfer facility to corporate, under one resource center, which will handle the process through the branches and provide adequate reporting to the corporate clients, on various aspects of their accounts receivable portfolio, every month.
InternetBankingServices In pursuance of our quest to provide the most modern service to our customers, we offer banking through internet. Askari Bank is the first bank in Pakistan to provide such service to its valued customers which is absolutely FREE.
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Facility
Important Features
I-net (Internet Banking Services) 1. Balance enquiry 2. Funds transfer 3. Statement of accounts 4. Change of password 5. Free payment of utility bills 6. Payment of school fee
CALL CENTER
askari Bank has been one of the leading banks in the country for over a number of years now and has constantly come up with new services for its valued customers; being one of the first to start ATM and Internet Banking services. Striving for further customer satisfaction Askari Bank launched its Call Centre which became an efficient and effective medium to put information at their customer's fingertips. The Call Center provides a single point of contact for all of its customers, yet offer unique and individualized services on real time information for its time-conscious customers, as it will be available anytime-day or night. Following are the services available at Call Center: 1. 2. 3. 4. 5. Accounts or Cards that the customers choose themselves. Balance Inquiries, Account Statements (read out and fax), Complaint Handling for all sorts of complaints related to the bank. Funds transfer from one account to the other. Utility Bill payments for all utility companies listed with the Bank. Cheque statuses and the facility to block or cancel a card (Debit or Pre-Paid) at any time; to name a few.
ATM NETWORK AUTOMATIC TELLER MACHINE ASKARI BANK ARE USE THE 233 TOTAL MACHINE IN ALL PAKISTAN.WITH THE HEELP OF THIS MACHINE WE ARE TRANSFER THE MONY WITHDRAW THE MONY MORE THE DEPOSIT THE MONY
Organogra(ORGANIZATIONAL STRUCTURE)
this diagram in annual report askari bank 2009 page no 19
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ASKARI BANK LIMITED
Lahore
This branch has highest deposits and advances as compare to other banks working in lahore. This branch gets the trophy of highest business for the month of July 2007 as compare to all the branches of Askari Commercial Bank working in Pakistan. It is located on M.A johar Town 473,block G111 lahore. The location is connected to all the main biggest hospital of Lahore and new concentration area are here. It is a prosperous branch streaming towards great achievements. At the time of its establishment the factored that were considered are as following
Lahore is zone covering a large population. Lahore City is linked to many big cities. Agro based area constituting growers and gainers Army Offices & PIA Colony Educational Institution Hospitals Different Offices, Under developing Area
CREDIT DEPARTMENT
To give credit is to finance directly or indirectly the expenditure of others against future payment. Lending or financing is one of the basic functions of banks of all categories, through which they gain major part of their profits. A bank accepts deposits of money and repays cash to its depositors on demand. But this is not to say that; bank gives this service for nothing. Bank borrows money at a lesser rate of interest and lends to the borrower at higher rate of interest. And the difference between these two is the profit of the bank. Credit department deals with all the activities related to giving credit to customers.
CREDIT MANAGEMENT CYCLE:

Credit Management is composed of six steps: 1. Proposal 43 ALLAMA IQBAL OPEN UNIVERSITY
2. 3. 4. 5.
Processing Decision Documentation Disbursement
DEPOSITS DEPARTMENT
Deposit is the functional unit of a Commercial Bank. No bank can run its operations without deposits. Main function of a commercial bank is to channelize saving from the savers to the ultimate users of funds. The process of collecting saving is called Deposit Mobilization. Two board categories of deposits with reference to time period are:
Demand Deposit:
These are payable on demand. They include current account, sundry deposit (e.g. margin account) and call deposit receipt. No profit is given on demand deposits.
Time Deposit:
Payable on demand with certain maturity. Attracts profit with respect to time.
TYPE OF ACCOUNTS:
PLS Saving Bank Account: Saving deposits were introduction to inculcate and encourage the of saving among people of small means in order to achieves of Islamisation of the banking system in the country, the government authorized the banks to accept Saving Deposit on profit and loss sharing basis. Deposits received under this scheme are invested in non-interest bearing advances and other avenue so as to eliminate the element of interest. Current Account: A current account is a running account, which is continuously in operation, by the customer on all working days of the bank. The customer deposits without the current deposits without previous notice to the bank. PLS Term Deposit: Fixed or term deposits are the major source of funds of a commercial bank. Term deposits, as the name implies, are deposits kept with a bank for a certain period of time. They are not payable on demand like the current deposit. The depositor can only withdraw them after the specified period of time. The persons or firms trust, religious bodies, which have surplus keep the money in fixed deposits with bank..
INDIVIDUAL'S ACCOUNT
When a single man or women opens an account in his/her own name and has the right to operate it is called individual Account.
JOINT ACCOUNT
When two or more persons, neither partners, nor trustees, opens account in their name is called joint Account. Husband and wife or two persons of same sex can open joint account.
PROPRIETORSHIP ACCOUNT When an owner of a firm operating singly, opens an account in his firm name, this account is called a proprietorship Account the proprietor himself liable for all his acts Partnership Account The account is opened in the firm name and all partner designate one two persons to act on behalf of the partnership firm all acts on behalf of firm. The partners in the partnership firm are liable for the acts of the firm jointly. Every partner has in a firms has an implied authority behalf of his co-partners by drawing and enclosed cheques.
The following documents are required for the partnership account. Copy of National Identity Card of all partners Application to open the account on the firm letter pad. Partnership deed in case registered partnership firm. Letter showing the implied Authority of one or more partners to act on behalf of the firm. In case of non -registered partnership firm, understanding on behalf of the firm to remain liable for all acts of the firm. Name, address of all partners is written on the pad.
LIMITED COMPANY ACCOUNT

This account is for limited companies. In order to facilitate their transaction with outside parties, bank provides many facilities. Required Documents Memorandum of Association. Articles of the Association Resolution of the Board of Director. Certificate of Incorporation.
Certificate of commencement of business N-I-C
LETTER OF THE THANKS

ASKARI BANK LIMITED issue letter of thanks to "Account Opener" and "Account Introducer" for the trust they have on ASKARI BANK LIMITED.
REMITTANCES DEPARTMENT
Through the remittance department customer of the bank is able to meet its day to day financial requirements. And by providing this service to the customer bank also earns a lot of income. The need of remittance is commonly felt is commercial life particularly and in everyday life generally. The main function of the remittance department is to transmit money from one place to another.
Modes of Remittances
Demand Draft(DD) Pay Order(PO) Telegraphic Transfer (TT)
Demand Draft
Demand Draft is an instrument issued to pay certain amount to the certain person. There are three parities involved: Drawer: Issuing bank Drawee: The bank in which the draft is drawn. Payee: The name of person to whom the payment is to be made.
ISSUANCE PROCEDURE
A demand draft application (Annexure--) to given to the customer, he fills in a relevant information and signs it.
The Officer in charge then checks the information form. The charges such as commission, postage is charged as per effective schedule of charges. Tax is exempted if he is taxpayer & knows his No. In case of cash deposit the cashier counts the amounts & signs the DD application and enters it in the register. The cash received equals the amount of remittance 275 charges would also be get by the customer on cash as commission. Then the officer of the bills & remittance department signs it and operation manager counter or attorney signs it. The entry is made in the DD issuing register. It is given to the customer. Vouchers are passed. Commission charges Cr
The vouchers and the DD form given for posting at the computer. The DD advises are printed at the computer and mailed to the respective branch.
Payment order A banker payment order is an instrument drawn by a banker in him self implicit in a payment order is an undertaking on the part of banker to pay a certain sum of money on the presentation of the instrument.
The payment order generally issues:

For sake of inland and foreign remittance in case where the beneficiaries do not maintain account with the bank. For all local payments under instruction of the customer for sundry purpose like payment of insurance premium, payment to the third party and club bills etc. To facilitate all locally payable expenses on account of a bank for the reason
that such payments are not executed through cheques.
ISSUANCE
The standard form is given to the customer; he fills in the detail and signs it. The concerned staff checks the form. Charges as per effective schedule are applied. The cash of the pay order is received. A cash memo is signed, stamped and handed over to the applicant as a receipt. Then the pay order receipt is filled accordingly. Counter foil is also filled.
An entry is made in the pay order issued register. Then the authorized office after checking the pay order signs it. The pay order is then handed over to the application after obtaining his signature on the P.O form. A voucher is also made and posted at the computer Cr bills payable account P.O issued.
PAYMENT
On representation of the pay two authorized officers of the branch sign order receipt the receipt. The P.O entry is made in the P.O issued register. Then the amount is credited to the account of the customer or paid in cash. The P.O is posted at the computer.
Dr
bills payable A/C P.O issued.
TELEGRAPHIC TRANSFER
A fastest & safest way to transfer money is telegraphic transfer. The message is fixed. It is the quickest way of transfer of funds from one place (Branch) to other place (Branch) of the same bank. Generally, a mail transfer advice reaches the drawer branch the next day through courier services. But sometimes, a customer demands that his funds should be transferred through the quickest means. In such cases, transfer of funds message is passed through telephone or telegram. This is the mode of transfer before the Online system. Online system is very effective for this purpose now-a- days. In Askari Commercial Bank online system is used.
Bills department
This department basically deals in bills which come in bank for collection. The bills are cheques, call deposit, draft and pay order. These bills are form outstation
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branches of UBL or of other banks. This department provides services to customer at low charges to get their amounts from the nearest branch.
There are two main heads of the bills i.e.

Outwards Bills for Collection (OBC) Inward Bills for Collection (IBC)
3.8 Account department
ACCOUNTING SYSTEM OF THE ORGANIZATION Account is an art of recording classifying summarizing business transaction and making the information available to the business user. Askari Bank is following the double entry system of accounting. This system is helpful in maintaining the proper books of accounts according to prudential accounting system. It segregates the entries according to their proper allocated account heads. The accounts department of Askari Bank is performing its function computerized. Through computer software different books of accounts relating with other departments are maintained. With the help of these books of accounts, accountant prepares daily, weekly, monthly, quarterly, semi-annually and yearly financial statements.
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Report Preparation Reports are prepared for financial reporting purpose and for the internal control in the account department. There are many different types of reports. These reports vary from each other depending upon the information reported and the period for which these reports are prepared. These reports are prepared by using the general Ledger that is updated by the system during the EOD (end of day) process. Some of the reports are as follows:
Daily Reports:
Summary Sheet: This report is sent to the reconciliation unit. It summarize the all the heads that have been credited to the Central Branch Control (CBC) Account. It is prepared on branch wise basis Balance Sheet: This report also summarizes the balance sheet heads of the bank up to the last working day. Daily Position: This report summarizes the daily position of all the main heads of the bank I. Advances:
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This report summarizes the figures of the deposit accounts as well as the loan accounts of the customer with the bank. Statement of Financing: This report summarizes the amount of financing extended to the customers. Detailed trial balance This report summarizes all the balances in the different heads in the income, expenses, deposits, financing and other related heads.
Daily expense vouchers: This report summarizes the daily expenses. e. different deposits, TDR/NDR, cash etc Reconciliation Reports: This is prepared in order to reconcile any outstanding and exceptional entry reported by the other branches through the reconciliation unit made by any of the functional department of the bank. Treasury Reporting: This report summarizes the exchange deals made for the foreign currency with the customer and the head office for reporting the head office the stock of such currencies and the balances of the Nostro and vostro accounts. SBP Reconciliation Statement:
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This report is used in order to report the balance of the UBL with the SBP in the current account with SBP. As the banks have to keep liquid cash with the SBP so this report list any increase/decrease of the balance with the SBP. .Weekly
Reports:
Daily Statement of Deposits: It states the retail deposits (current account, margin account, and foreign deposits), hot deposits (deposits of security on loaning in big amount in current account), and cash in hand in both local and foreign currency
Deposit Comparative Position: This report summarizes the comparative position of the different deposit accounts category, TDR/NDR, and foreign currency accounts. Balance sheet: The balance sheet is prepared on the basis of the whole week activity by using the General Ledger of the weekend. Trial Balance: This is same as of the daily trial balance but is prepared with the span of one week by using the General Ledger of the weekend. Deposit Comparative Position:
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This report summarizes the comparative position of the different deposit accounts category, TDR/NDR, and foreign currency accounts. Risk Assets Liabilities Statement: This statement summarizes the status of liabilities of the bank, status of risk assets ( short term and long term), status of risk assets ( consumer finance) like net lease value, net deposit, net financing amount, financing against FE 25 and SBP refinance position.
.Monthly statements Profit and loss statement: This statement is the income statement prepared for the month summarizing the revenue generated and the expenses incurred during the month. General Ledger: This ledger has the detailed information of all the heads in deposit, financing, TDR/NDR, expenses, income and other related accounts. Reconciliations
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Reconciliation of Inter Branch is done by matching ledger entries to the statement entries. When an entry is properly matched, the date under which it is appearing in the ledger is noted against the entry in the statement and ledger or vice versa. The matching, investigation, and reconcilement of all accounts entries are done as frequently as the statement is received.
Vouchers
Each and every transaction in the bank is made through vouchers; the final place is accounts department for recording these vouchers. Officer in the accounts departments arranges these vouchers according to heads of accounts. vouchers are of two types: These
Debit Vouchers Credit Vouchers
These two vouchers are again classified into three following types of vouchers:
Cash Voucher Clearing Voucher Transfer Vouch All the daily transaction in cash, transfer and clearing is done through these vouchers. A sheet is prepared on which all the vouchers, passed during any one working day are consolidated and summarized. This sheet is called supplementary sheet. It provides help in preparing Cash Book. There are two types of supplementary sheets: DEBIT SUPPLEMENTARY SHEET:
In which all debit Cash Voucher, Clearing Voucher, Transfer Voucher are included. CREDIT SUPPLEMENTARY SHEET: In which all credit Cash Voucher, Clearing Voucher, Transfer Voucher are included. CASH BOOK It is maintained to keep the record of daily receipts and daily paid vouchers. Cashbook is consisted on the opening balance and the closing balance of the day. For correct balance of the cash book there is a need to arrange all the vouchers. LEDGER FOR TERM DEPOSITS One of the functions of accounts department is to maintain and update the term deposit ledgers and books manually. Term deposit receipt or TDR ledger is updated after every month for estimation of profit on customer accounts. Accountant has to prepare different ledger for all schemes of term deposit. With the help of TDR the accountant prepares provisional ledger/Summary ledger and also statement of provisional expenses. The profit after every six-month will be the expense of the branch. UPDATING GENERAL LEDGER When vouchers are recorded in cashbook then the balance of each head of account is posted to its ledger account. There are two main heads of the general ledgers, Income account & Expenditure account. All the accounts fall under one of these two main heads. Separate ledger is maintained for every head of account. In Askari Bank all the daily transactions in
deposits, cash, clearing, transfer remittance, foreign exchange; advances are performed through these daily computerized ledgers. Accounts department Maintains and prepares the following ledgers and books of accounts: Daily General Ledger Expenses Daily General Ledger Incomes/Receipts Monthly General Ledger Assets Monthly General Ledger Liability Daily General Ledger Zonal Expenses Daily General Ledger Inspection expenses. Daily General Ledger Regional Expenses
ON LINE TRANSACTION:
Askari Bank has provided the facility of on line transaction. In this case the accounts and their details in the other branches of ACBL can be displayed on computer which is connected through server to the computer at the other end. Commission is charged on providing this service this is beneficial as it takes very little time in the transference of funds. This facility is available all the branches of Askari Bank except Bhai Pheru Branch. Following charges are deducted in online transaction: Table 1
Amounts
Up to Rs. 25001 Rs. 200001 Rs. 500001 Rs. 2000001 Above Rs. 25000/Rs. 200000/Rs. 500000/Rs. 2000000/-
Charges
Rs. 50/Rs.100/Rs. 250/Rs. 500/Rs.750/-
57
ATM:
Automated Teller Machine (ATM) is facility provided by the Askari Commercial Bank Limited at Model town Branch Lahore Branch. There are certain requirements, which are to be fulfilled, buy the person before he can have ATM card. There is a need of primary account number and then the secondary account number. The primary account number is the regular account number as maintained with the bank of the person and the bank on which the card is issued gives the secondary account number. Apart from this there is Personal Identification Number (PIN) without which ATM cannot be operated. The person can change the PIN from time to time so that there is no chance of fraud in his account. If someone gets to know the PIN of the ATM of a certain person he can operate that easily so the PIN should not be disclosed to anyone. In case the card of a person is damaged or the person loses his card, then charges of Rs.100/- are taken and a new card is issued by the Head Office. In case of replacement, the charges are Rs.100/- and in case of faulty card means when the card is inserted in machine and on the screen the caption faulty card is written then no charges are taken by the bank for the issuance of new card. This branch has issued almost three thousand five hundred cards. This beneficial because if a person wants to draw some amount he can easily do it after banking hours.
CLEARING:
Meaning of clearing: The word clearing has been derived from the word Clear and is defined as a system by which banks exchange cheques and other negotiable instruments draw on each other within a specified area and thereby secure payment for their client through the clearing house at specified time in an efficient way. Advantages of Clearing: 1. Since clearing does not involve any cash etc and all the transaction take place through book entries, the number of transactions can be unlimited. 2. No cash is needed as such the risks of robbery, embezzlements and pilferage are totally eliminated. 3. As major payments are made through clearing, the banks can manage cash payment at the counters with a minimum amount of cash in vaults. 4. A lot of time, cost and labor are saved. 5. Since it provides an extra service to the customers of banks without any service charger or costs, more and more people are inclined and attracted towards banking. Clearing House:
58
It is a place where representatives of all scheduled banks sit together and interchange their claims against each other with the help of controlling staff of State Bank of Pakistan. But now with the mutual collaboration of private banks a clearing house firm was established as a name of NIFT which collects cheques and DDs and clears in one day time period. Working of clearing house: All the bank which are the member of clearing house maintain accounts with State Bank of Pakistan by debit and credit to which the clearing settlements are made. If on a particular day, a bank delivers cheques and other negotiable instruments worth more than the total amount of Cheque received by it that banks accounts with State Bank of Pakistan will be credited with the differential amount. If on the other hand the total amount of cheques and other negotiable instruments draw on a certain bank by other bank is more than the total amount receivable by it from other banks, then this banks account will be debited on that day. The cheque delivered to the representatives of other banks for clearing are called outward clearing, whereas cheques received from the representatives of other banks for payment are called inward clearing. Same case with NIFT. Procedure of Settlement: Presume that ACBL got the cheques which are drawn on HBL, NBP and MCB for amounts Rs. 50,000/-, Rs. 15,000/- respectively, its total being amounts Rs.95,000/-, it means that this amount is to be credited to ACBL A/C with S.B.P. on the other hand the cheques drawn on ACBL are from HBL, NBP and MCB of Rs.15,000/-, Rs.75,000/- and Rs.30,000/- respectively, its total being Rs.1,20,000/-, it means that this amount is to be debited from ACBL account. The difference between Rs.95,000/- credit and debit Rs.1,20,000/- debit is Rs.25,000/- debit which means the house is against ACBL for Rs.25,000/-. If we separately show it them. 1. ACBL has to receive Rs.50,000/- from HBL and to pay Rs.15,000/- to HBL so difference is Rs.35,000/- credit. 2. ACBL has to receive Rs.30,000/- from NBP and to pay Rs.75,000/- to NBP so difference is Rs.45,000/- debit. 3. ACBL has to receive from MCB Rs.15,000/- and to pay Rs.30,000/- to MCB so difference is Rs.15,000/- debit. GRAND TOTAL: 35000-45000-15000 = -25000 i.e. Rs.25000 debit. Hence ACBL A/C with State Bank of Pakistan will be debited with Rs.25,000/- and the contra will be other banks accounts respectively. This called as Debit and Credit Rule.
59
Outward Clearing At The Branch: The following points are to be taken into condsideration while an instrument is accepted at the counter to be presented in outward clearing: 1. The name of the branch appears on its face where it is drawn on 2. It should not be stale or post dated or without date 3. Amount in words and figures does not differ 4. Signature of the drawer appears on the face of instrument 5. Instruments is not mutilated 6. There should be no material alteration if so, it should be properly authenticated 7. If order instrument, suitably endorsed and last endorsees account being credited 8. Endorsement is in accordance with the crossings if any 9. The amount of the instrument is same as mentioned on the paying-in-slip and counterfoil 10. The title of account on the paying-in-slip is that of payee or endorsee (with the exception of bearer cheque). If an instrument is in order then out banks special crossing stamp is affixed across the face of the instrument. Clearing stamps is affixed on the face of the instruments, paying-in-slip and counterfoil (The stamp is affixed in such a manner that half appears on paying-in-slip and half on counterfoil). The instrument is suitably discharged, where a bearer cheque does not required any discharge and also an instrument in favor of a bank need not be discharged. The instrument along with paying-in-slip is retained while the counterfoil is given to the customer duly signed. Then the following steps are to be taken:1. The particulars of the instruments and the and the pay-in-slip or credit vouchers are entered in the Outward Clearing Register. 2. Serial number is given to each voucher 3. The register is balanced, the credit voucher are separated form the instrument and are released to respective departments against instrument and are released to respective departments against acknowledgement in the register 4. The schedules are arranged bank-wise 5. The schedules are prepared in triplicate, two copies of which are attached with the relevant instrument and the third is kept as office copy 6. The house page is prepared from schedules in triplicate 7. The schedules and house pages are signed by the officer incharge with branch stamp 8. The grand total of the house page is taken and agreed with that of the outward clearing register 9. The instruments along with duplicate and house page are sent to the Main Office Inward Clearing Of The Branch: 1. The particulars of the instruments are compared with the list 2. The instruments are detached and sort out department wise 3. The entry is made in the Inward Clearing Register (serial number, instrument number, account number, amount of the instrument is written).
4. The instruments are sent to the respective departments against acknowledgement in the Inward Clearing Register. 5. The instruments are scrutinized in each respect before honoring the same
FOREIGN CURRENCY ACCOUNTS:

A depositor can open account in US Dollar, Pond, Japanese Yen and Euro with nominated branches. For opening of account a Form is provided to the person/party, introduction of the new account holder or by the Officer of the Bank. Procedure of opening foreign currency accounts is same as other accounts. No Zakat is deducted on these accounts, no income tax deductions, no wealth tax deduction will be there, these incentives reinforce and motivate the people to invest in foreign currency accounts rather to keep foreign currency idle. 3. Foreign remittance: Bank also operates in Foreign Currency accounts. In accordance with instructions of SBP, foreign currency accounts are opened in these currencies: US Dollar, Pond, Japanese Yen, Euro. Funds are transferred abroad by Foreign Telegraphic Transfer Swift MT-100 is used for this transfer. Askari Commercial Bank has its agency arrangements in those countries, where its own branches are not established. Its agency arrangements with Citi Bank, American Express, ABN Amro, Standard Chartered Bank.
SUBMISSION OF MONTHLY RETURNS:

It includes reporting of Form-M and Form-E to SBP. Reporting of Form-E: Every Exporter is required to submit a declaration to custom authorities for goods exported. This declaration is submitted on prescribed Form-E in quadruplicate, which is certified by authorized dealer. Four copies of Form-E are maintained. Form-E is reported to SBP at the end of the month, in which the amount is realized. There is a prescribed Performa used for the reporting of Form-E. It includes the reporting period, currency, Serial No. of Form-E, amount, Code No. of country and commodity. Reporting of Form-M: Every foreign bank deducts some charges form the value of goods. It is for miscellaneous purposes like foreign bank charges or foreign agent commission. Form-M is used to declare this outflow of foreign currency. At the end of the month of realization of the amount, Form-M is reported. It includes the list of Serial No. amount and purposes of every Form-M.
.13 Agriculture Department

It is very unfortunate that this profession does not provide much to the farmers and cultivators to meet even their basic necessities of life. The uneconomic holding, primitive method of cultivation, natural calamities such as floods and drought, illiteracy of the cultivators and lack of infrastructure including organized ware-housing have adversely affected the repaying capacity of the agriculturists.
Therefore financing of agriculture is much more complex as compared to commercial lending and industrial financing. ASKARI BANK LIMITED agricultural loans on easy terms and conditions to small-scale land owning farmers boost the country's economy and yield greener harvests. ASKARI BANK LIMITED enables farmers to buy good quality seeds, fertilizers and pesticides. Kinds of Loans: Farmers generally need three types of Loans: 1. Short-term Loans 2. Medium-term Loans 3. Long-term Loans Short-Term Loans Short-term loans are normally taken at the most for one crop period, and are fully recoverable from the proceeds of same crop after its harvest. These loans are needed for seeds, pesticides, fertilizers and wages of hired labor, which are meant for input for a particular crop. Medium-Term Loans
Medium term loans are usually taken for a maximum period of three years, and they are usually taken for the purchase of tractors, tube-wells, agricultural implements, cattle and live-stocks, dairy farming and poultry farming etc. Long-Term Loans Long-term loans are generally taken for the period above three years, and amount is used for buying land, constructing embankment, improvement of land or for arranging damages etc. The only security farmer can offer is the charge on agricultural land and hypothecation of his stocks.
STRUCTURE AND FUNCTIONS OF THE ACCOUNTS / FINANCE DEPARTMENT
Organizational Chart of the Finance Department
President 63 ALLAMA IQBAL OPEN UNIVERSITY
Vice President Finance Treasurer Tax Manager Controller
Cash Manager
Credit Manager
Financial Accounting Manager Data Processing Manager Cost Accounting Manager
Capital Expenditure Manager Portfolio Manager
64
. FINANCE & ACCOUNTING OPERATIONS:

Every branch has its own Accounts Department which is responsible to record and process each & every business transaction taking place during the working day. This Department consolidates the position of the branch at the day end in the shape of Assets, Liabilities, Revenues and Expenses This position is daily sent to the Finance Department of Head Office which consolidates all these Statement of Affairs bank wise. This position is sent to the State Bank of Pakistan (SBP) and SBP publishes on weekly basis overall consolidated Statement of banks in business news papers like Business Recorder (BR). The main function of Finance Department of Head Office is to maintain smooth liquidity of bank by arranging funds from SBP and other banks if required. This Department is also responsible for making physical investment on behalf of bank into government securities and other corporate securities.
THE ROLE OF FINANCIAL MANAGER:

FINANCIAL MANAGER:
The pserson which manages the financial resources of a business is called financial Manager
4.1 Structure of finance department (Branch Level)
Regional Manager Assistant Manager OG-111 Operational Staff
1 2 4 8
65
ROLE & DUTIES OF FINANCIAL MANAGER:

The duties of financial managers vary with their specific titles, which include controller, treasurer or finance officer, credit manager, cash manager, and risk and insurance manager. Controllers direct the preparation of financial reports that summarize and forecast the organizations financial position, such as income statements, balance sheets, and analyses of future earnings or expenses. Controllers also are in charge of preparing special reports required by regulatory authorities. Often, controllers oversee the accounting, audit, and budget departments. Treasurers and finance officers direct the organizations financial goals, objectives, and budgets. They oversee the investment of funds, manage associated risks, supervise cash management activities, execute capitalraising strategies to support a firms expansion, and deal with mergers and acquisitions. Credit managers oversee the firms issuance of credit, establishing credit-rating criteria, determining credit ceilings, and monitoring the collections of past-due accounts. Managers specializing in international finance develop financial and accounting systems for the banking transactions of multinational organizations.
Branch Managers: of financial institutions administer and manage all of the functions of
a branch office, which may include hiring personnel, approving loans and lines of credit, establishing a rapport with the community to attract business, and assisting customers with account problems. The trend is for branch mangers to become more oriented toward sales and marketing. It is important that they have substantial knowledge about all types of products that the bank sells. Financial managers who work for financial institutions must keep abreast of the rapidly growing array of financial services and products.
ACCOUNTING OPERATIONS It is said that accounts department is the backbone of the bank. It plays a vital role in performing different banking functions. The accounts department of Askari bank is performing its function computerized. The working in accounts department mainly depends upon voucher system USE OF ELECTRONIC DATA IN DECISION MAKING
In todays banking new devices have been introduced for efficient & courteous service to the client. Like Online Banking, Net Banking, Mobile Banking, Auto Teller Machines (ATMs) & Electronic Cashiers
There is a special designed software, which fulfill the entire accounting requirement of the Askari Bank according to international standard. The network used by the Askari Bank is LAN (Local area network) while other branches are also using WAN (wide area network). In addition to this signature verification software is there, online report browser is there, exchange server software etc. All the transactions occur through this system. SOURCES & GENERATION OF FUNDS:
Without Funds it is impossible to carry out any business. Funds are remain necessary for the business of the banking sector and also the main element for carrying out the operations business concern. The following are the main sources of funds for Askari Bank
Main sources and generation of funds for the bank are as under
MAJOR SOURCES OF FUNDS

1. DEPOSIT ACCOUNTS TRANSACTION DEPOSITS SAVINGS DEPOSITS TIME DEPOSITS MONEY MARKET DEPOSITS BORROWED FUNDS FED FUNDS FEDERAL RESERVE BORROWING REPOS EURODOLLAR BORROWING LONG-TERM CAPITAL BONDS BANK CAPIT
2.
3.
Deposits from Customers
DEPOSITS
Rupees in 000
67
Customers
Fixed deposits
2009
Saving deposits Current account -non-remunerative Special exporters account Margin account Other
2008 3967569 47689401 9 8042821 110297787 4 4324559 44340561 3 21743 30562 1853597 1983653 268063 257099 165620820 142216251
2007 2999757 4 8160590 7 28465592 90474 1640800 415904
2006 40,349,94 1 64,698,31 8 23,925,338 24,306 1,375,381 290,634
2005 37,999,587 57,854,949 20,089,228 304,924 1,076,511 125,010
Total
204471152 130,373,284 117,450,209
4. Borrowings from Financial Institutions

1.
2.
3.
4. 5. 6. 7.
CASH LOANS - MAIN USE WORKING CAPITAL LOANS TERM LOANS LINE OF CREDIT REVOLVING CREDIT LOAN CONSUMER LOANS HIGHLY LEVERAGED TRANSACT. REAL ESTATE LOANS DIRECT LEASE LOANS LOAN PARTICIPATIONS SECURITIES INVESTMENTS TREASURIES AGENCIES TAX EXEMPTS CORPORATE BONDS FED FUNDS SOLD REPOS EURODOLLAR LOANS FIXED ASSETS
MOBILIZATION OF FUNDS The commercial banks are the most efficient organs of the economy in the mobilization of resources and making a profitable pool of these resources. Taking the money from the savers and lending it to the investors is the most prominent job of the bank. Askari Bank limited mobilize its funds through Bonds
Shares Deposits Borrowings
Assets Advances net Investments Cash, short term funds and statutory deposits with SBP Operating fixed assets Other assets Total assets Non-performing loans Provisions for non-performing loans
2005 85,977 25,708 27,489 3,193 2,733 145,100 2,373 2,419
2006 99,179 28,62 30,605 3,810 3,813 166,034 3,656 3,546
2007 100,780 39,431 31,297 5,128 5,535 182,172 6,908 7,409
2008 128,818 35,678 24,464 8,266 8,965
2009 135,034 67,046 32,364 9,846 10,036
206,191 254,327 11,689 17,725 11,013 12,594
Critical analysis of the theoretical concepts relating to practical experience

During my internship period I have tried to fully commit myself in the learning process. I kept critically observing the things that I could analyze and the result of the exercise is presented as below.
Organizational The workload is not equally distributed Coordination level among divisions/departments and employees are poor, particularly speaking of between the top and lower levels of management. Due to overlapping nature of duties and jobs there exists chaos and confusion in branches.
Departments 69 ALLAMA IQBAL OPEN UNIVERSITY
During my internship period in ASKARI BANK LIMITED in various departments, I noticed following departmental problems
Cash Department Counting mistakes occur due to overcrowding particularly during the collection of utility bills. Manual counting system also affects efficiency of the bank. Counting mistakes occur due to overcrowding particularly during the collection of utility bills. Manual counting system also affects efficiency of the bank.
SOWFTWERE HAVE ONE OF THE OLD VERSION
Clearing Department Wrong endorsement and stamping causes loss to the customers and extra efforts for the bank to repeat the procedures. Reasons for the return of the cheques at times are not mentioned on the return memos. At times due to lack of training wrong stamps are applied on instruments
Credit Department Timelines in cash disbursement is very important which is compromised due to lengthy processing and documentation requirements
The credit proposal and other documents at times are not properly and sufficiently prepared before taking approval.
Filing and record maintenance of credit related documents are not done efficiently. Lack of infrastructure for carrying out computerized financial analysis of borrowers business.
Bills Department Bills are sent to other cities; therefore, extra care should be exercised in making entries and stamp affixing.
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Proper scrutiny at times is not carried out and it causes loss to the bank or increase procedural timings. Employees at times mismanage their time and fail to forward bills promptly Foreign Exchange Department Problems of bills and remittances departments equally apply to foreign exchange department. There is overlapping of functions and complete separation of function has not been achieved thus leading to a state of confusion and conflict among employees.
FINANCIAL ANALYSIS
BALANCE SHEET OF FIVE BALANCE SHEET OF FIVE
Rupees in 000 Notes 2009 2008 2007 2006 2005
Assets
Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Deferred tax asset s Other assets 19,385,843 16,029,635 13,356,055, 14,879,230 11,766,925 8,364,261 3,954,814 , 3,497,054 7,333,002 5,550,148 4,614,059 4,479,754 14,444,143 8,392,950 10,172,242 67,046,033 35,677,755 39,431,005 28,625,915 25,708,194 135,034,499 128,818,242 100,780,162 99,179,372 85,976,895 9,846,440 8,266,458 5,128,428 3,810,331 3,192,862 10,036,311 254,327,446 8,964,480 206,191,138 5,535,038 182,171,885 3,812,788 2,732,641 166,033,588 145,099,907 1,315,680 10,562,338 118,794,690 2,999,700
Liabilities Bills payable 2,945,670 2,584,828 2,627,051 1,839,077 Borrowings 19,300,163 15,190,148 17,553,525 14,964,087 Deposits and other accounts 205,970,227 167,676,572 143,036,707 131,839,283 Sub-ordinated loans 5,994,900 2,996,100 2,997,300 2,998,500 Liabilities against assets subject to finance lease Deferred tax liabilities Other liabilities Net assets Represented By Share capital Reserves Unappropriated profit 333,925 4,833,489 239,378,374 14,949,072 12,987 4,759,140 193,219,775 12,971,363 4,058,774 7,667,141 308,980 12,034,895 936,468
471,519 736,298 567,217 3,219,796 2,603,113 2,271,393 169,905,898 154,980,358 136,512,477 12,265,987 11,053,230 8,587,430 3,006,499 2,004,333 1,507,018 6,948,336 5,814,754 5,862,074 2,144,810 1,799,979 12,099,645 9,619,066 7,369,092 166,342 1,434,164 1,218,338 12,265,987 11,053,230 8,587,430
5,073,467 7,182,987 886,234 13,142,688 Surplus on revaluation of assets - net of tax 1,806,384
14,949,072
12,971,363
PROFIT & LOSS ACCOUNTS OF FIVE YEARS
2009
2008
2007
2006
2005
71
Mark-up / return / interest earned
22,661,754
18,393,313
15,143,241
12,596,921
8,780,698
Mark-up / return / interest expensed
13,629,096
10,650,719
8,685,624
6,977,313
4,278,374
Net mark-up / interest income
9,032,658
7,742,594
6,457,617
5,619,608
4,502,324
Provision against non-performing loans and advances (Reversal) / provision for impairment in the Impairment loss on available for sale investments value of investments Provision against reverse repo Bad debts written off directly
2,324,377 431,058 76,784 82,674 2,914,893
3,824,778
3,920,240
1,128,137
638,547
508 247,311 4,072,597 3,669,997
1,501 3,921,741 2,535,876
376 1,128,513 4,491,095
-36,555 601,992 3,900,332
Net mark-up / interest income after provisions
6,117,765
Non Mark-up / Interest Income Fee, commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale of securities Unrealised (loss) / gain on revaluation of investments classified as held for trading - net Other income Total non mark-up / return / interest income, 1,307,699 162,537 538,445 143,717 -1,918 404,221 2,554,701 8,672,466 1,257,584 173,621 873,512 36,743 22,384 343,156 2,707,000 6,376,997 1,072,868 137,079 655,761 2,361,251 1,728 336,809 4,565,496 7,101,372 1,013,660 109,326 584,344 112,474 -2,308 321,758 2,139,254 6,630,349 838,561 51,143 356,218 99,825 206,819 1,552,566 5,452,898
Non mark-up / interest expenses Administrative expenses 6,995,857 Other provisions / write offs Other charges Total non-markup / interest expenses 34,368 7,030,225 1,642,241 Extra ordinary / unusual items Profit before taxation Taxation current 1,642,241 562,099 5,904,169 459 10,987 5,915,615 461,382 461,382 17,363 4789536 12051 4801587 2299785 2299785 98535 3,277,353 6,141 3,283,494 3,346,855 3,346,855 983,875 2,591,985 1,832 2,593,817 2,859,081 2,859,081 828,774
prior years' deferred
119,827 -147,478
-50,000 107,794
-233950 -245128
113,006
-188,247 196,558
72
534,448 Profit after taxation Unappropriated profit brought forward Profit available for appropriation Appropriations: Statutory reserve Capital reserves (reserve for issue of bonus shares) Revenue reserves Proposed cash dividend (Rs 1.5 per share; 2004: Rs 2 per share) 1,107,793 308,980 1,416,773
75,157 386,225 2,144,810 2,531,035
-381227 2681012 1799979 4480991
1,096,881 2,249,974 1,617,597 3,867,571
837,085 2,021,996 2,021,996
404,399 497,315 894,229 226,053 2,021,996
Unappropriated profit carried forward Basic / diluted earnings per share - Rupees 2.18 0.76 6.61 7.48
13.42
RATIO ANALYSIS:
ABBREVIATION USED IN CALCULATIONS:
Words Nat Income after Taxs Earning after tax Net Markup income Gross markup income Total income Operating income Operating expenses Total Share holder Equity Net Sales Market price per share Earning per share Earning before tax Total outstanding shares Current Asset Current Liability Annual Dividend Dividend per share Total debt/Deposit Total liabilities Interest Earned Total Assets/Total Equity Dividend by Earning Abbreviation N.A.T EAT NMI GMI T.I OP OE TSE N.S MPS EPS EBT TOS CA CL AD DPS T.D T.L I.E T.A/T.E DE
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FINANCIAL ANALYSIS (Ratio analysis, Horizontal & Vertical analysis of the organization for the last five years)
Financial Analysis: Financial analysis is a process which involves reclassification and summarization of informationn through the establishment of ratios and trend. Financial analysis involves the use of various financial statements. Financial Statements: Financial Analysis involves the use of various financial statements. These statements do several things. 1: Balance Sheet: A summary of a firms financial position in a given date that shows Total assets = Total liabilities + Owner equity It summarizes the assets, liabilities and owner equity of a business at a moment in time, usually the end of a year or a quarter. Income Statement: A summary of a firms revenues and expenses over a specified period ending with net income or loss for the period. Income statement (Profit & Loss Statement) depicts a summary of the firms profitability
RATIO ANALYSIS
Ratio analysis is changing amount comparisons to ratios and then comparing those ratios to a known standard.
The financial analyst check various aspects of a firms financial health to evaluate a firms financial condition and performance. A tool frequently used during these checkups is a Financial Ratio which relates two pieces of financial data by dividing one quantity by the other. We
calculate ratios because in this way we get a comparison that may prove more useful than the raw numbers by themselves. The Ratio analysis of the Askari Bank for the five years from 2005 to 2009 years is given below. FINANCIAL RATIOS
2009 2008 2007 2006 2005 -----------------------------(Rupees in 000)---------------------------Ratio Type Formula

Gross spread ratio NMI/GMI 39.86 % 42.10% Income Expense ratio T.I/O.P 1.07% Return on Equity ratio (ROE) EAT/TSE 7.94% Return on Asset ratio (ROA) EAT/T.A .048% Loan/deposit ratio Loan/Deposits Profit before Tax ratio 7.25% Advance to Deposit (CDR) 65.56% Market Ratios Earning per share(EPS) EAT/TOS Dividend Yield ratio AD/MPS Dividend payout ratio DPS/DE Leverage Ratios Total Equity to Liability ratio TE/TL Capital adequacy ratio(CAR) Return on Assets ratio Shareholder fund Current ratio CS/CL 10.49% 8.48% 10.0% 10.3% 10.1% N.A.T/T.A 2.18% 5.85% 11.75% 0.435% 70.53%
Profitability Ratios
42.64% 44.61% 1.29% 22.60% 1.40% 2.27% 26.57% 75.23% 7.48% 0.95% 13.37% 7.097% 10.90% 1.23% 38.36% 51.28% 1.38% 27.70% 1.60% 2.52% 32.56% 72.23% 13.48% 1.18% 71.15% 5.398% 11.00% 1.39% 43.70% 1.02% 1.13% 3.06% 22.99% 0.20% 1.54% 1.768% 2.09% 2.51% 15.19% 76.83% 70.46% 0.95% 8.92% 1.50% 16.82%
6.211% 6.48% 9.22% 9.35% Financial Ratio, 0.183% 1.47% 65.51% 43.98%
Operating fixed assets to average
GRAPHICAL REPRESENTATION OF RATIOS:

PROFITABILITY RATIOS
75
Market Ratio
76
Leverage Ratio
Financial ratio
77
EXPLANATION OF FINANCIAL RATIOS:

PROFITABILITY RATIOS: These ratios indicate the organizations overall effectiveness of operation. Gross Spread ratio measure profit after deducting cost of goods sold. Gross spread ratio carry out net markup income are divided by Gross markup income .So we found it Gross spread ratio ,In 2005 the ratio 51.28%and 2009 this ratio are decrease. Income expense ratio as shows the percentage of expenses so it should be lower Income expense ratio is increased in 2009 as compared to 2006.
ROE measure the return on owners total investment into the business. It should be maximum. ROE has increased from 2005 to 2007 due to increase in EAT while ROE has decreased in 2009 due to decrease in EAT. ROA measure the return of total investment of business. It should be maximum. ROA has similar increasing trend as the ROE because EAT of the bank has increased from 2008 to 2009 Loan deposit ratio are found of loan are divided by deposit we found the L.D.ratio Loan deposit ratio has been the increasing trend due to increase in the banks deposits and advances portfolio.
Advance to Deposit are continue to change as camper to 20008 to 2009 this ratio Are decrease and changes are also affect the profitability of bank.
Profit before the taxs are continue change due to change the market and deposit position As we are comper2007 to 2008 this ratio are increase but 2008 to 2009 this ratio are decrease
Market Ratios
These ratios are calculated to analyze the market position of a business. EPS means Rupees earned per share by the company. It should be maximum. EPS has an increasing trend from 2005 and2007 because of increasing trend in EAT Slight drop is observed in EPS in 2009
Dividend pay out ratio in which annual cash dividends divided by annual earning alternatively Dividend per share divided by earnings per share. The ratio indicates the percentage of a
Company earning that is paid out to shareholder out to shareholder in cash Dividend payout ratio are depended by the EAT it the value of EAT are increase then The dividend payout are ratio is increased in 2005 the because the value of EAT are So good in market value
Dividend Yield is anticipated annual dividend divided by the market price of the stock The dividend yield in 2006 in decrease as compare 2005 but if we compare to 2007 they are Much batter,
Leverage Ratios
Leverage ratios used to calculate the financial leverage of a company to get an idea of the company's methods of financing or to measure its ability to meet financial obligations There are several different ratios, but the main factors looked at include debt, equity assets and interest expenses.
Total Equity to Liability Ratio The total equity to liability ratio is computed by simply dividing the total Equity of the firm by its Total liability.T.E2L.R=Total equity/Total Liability The total equity to liability ratio in this case for the year 2006 is increased as compare 2005 and This ratio are also change from some different reason. but the total equities of the Askari Bank show the constant growth. Capital adequacy ratio(CAR) are increased time to time in 2005 to 2006 this value Is
decreased but in2009 this value increased
Financial Ratio
Financial ration is an index that relates two accountanting number And is obtained by dividend one number by the other . Financial ratio needed to evaluate financial Condition and performance and various aspects of a firm financial health. Return on Assets ratio we find out net income after tax are divided by total assets for bank Then we know how much increased the bank assets this value or percentage are increased to2005 to 2007 But in 2008 this value are decreased if we compare 2009 this value are increased Operating fixed assets to average Shareholder fund are change time to time when we are see this value 2005to compare2006 decreased but if we see the this value last 3 year value are increased so we say The asset and share holder value are increased . Current Ratio in which if current assets divided by current liabilities we find out the Current ratio .it shows a firm ability to cover its current liabilities with its current assets .The value of
Current ratio are 2005 to 2006 decreased but we see to 2007 to 2009 this value are increased. due to the Deposit and asset value increased.
HORIZONTAL ANALYSIS
HORIZONTAL ANALYSIS OF FIVE YEARS BALANCE SHEET
ASSETS
Cash and balances with treasury banks Balances with other banks Lendings to institutions Investments Advances Operating fixed assets Other assets financial
2009 Rupees in 19,386 8,364 4614
2008 millions 16030 3,955 4480
2007
2006
2005
2009
2008
2007
2006
2005
13356 3,497 14444
14879 733
21% 111% 3% 88% 5% 19% 12% 23%
20% 13% (69%) (10%) 28% 61% 62% 13%
(10%) (57%) 72% 38% 2% 35% 45% 10%
26% 32% (17%) 11% 15% 19% 40% 14%
8393
28626 99179 3810 3813 166033
67,046 135,034 9,846 10,036 254,327
35678 128818 8266 8964 206191
39431 10078 5129 5535 182172
LIABILITIE S
Bills payable Borrowings from financial institution Deposits accounts and other 2,946 19,300 2585 15190 2627 17553 1839 14964 14% 27% (2%) (13%) 43% 17% 40% 42%
205,970
167677
143037
131839
23%
17%
8%
11%
Sub-ordinated unsecured
loans
5,995 334 4,833 239,378
2996 13 4759 193220
2997 472 3220 169906
2999 736 2603 154980
100% 2469% 2% 24%
(97%) 48% 14%
(36%) 24% 10%
30% 27% 14%
Deferred tax liability net Other liabilities
80
NET ASSETS REPRESENTED BY: Share capital Reserves Unappropriated profit
14,949
12971
12266
11053
15%
6%
11%
25%
5,073 7,183 886 13,143
4059 7667 309 12035
3007 6948 2145 12100
2004 5815 1800 9619
25% (6%) 187% 9%
35% 10% (86%) (1%)
50% 19% 19% 26%
33% 30% 11% 27%
Surplus on revaluation of assets net of deferred tax
1,806
936
166
1434
93%
464%
(88%)
18%
14,949
12971
12266
11053
VERTICAL COMMON SIZE (%) ANALYSIS OF PROFIT AND LOSS ACCOUNT
2009
2008
2007
2006
2005
2009
2008
2007
2006
2005
Mark-up return interest earned Mark-up return interest expensed
/ /
22,662
18,393
15,143
12597
23%
21%
20%
43%
/ /
13,629
10651
8686
6977
28%
23%
24%
63%
Net markup / interest income
9,033
7743
6457
5620
17%
20%
15%
100%
Provision against loans and advances
2,324
3825
3920
1128
-39%
-2%
248%
77%
81
- net Provision against lending to financial institutions Bad debts written off directly
77
7600%
--
--
-103%
--
247
--
--
-100%
100%
--
--
2,915 Net markup / return / interest income after provisions
4073
3921
1129
-28%
4%
247%
88%
6,118
3670
2536
4491
67%
45%
-44%
15%
Non Mark-up / Interest Income Fee, commission 1,308 and brokerage income Dividend income 163
1258
1073
1014
4%
17%
6%
21%
174
137
109
-6%
27%
26%
144%
Income from dealing in 538 foreign currencies Gain on sale of 144 securities Unrealized loss on revaluation of investments (2) classified as held for trading
873
655
584
-38%
33%
12%
64%
37
2361
112
289%
-98%
2008%
12%
22
-2
-109%
1000%
200%
-100%
Other income Total non mark-up / return / interest income
404
343
337
322
18%
2%
5%
56%
2,555
2707
4565
2139
-6%
-41%
113%
38%
8,672 Non Mark-up / Interest
6377
7101
6630
36%
-10%
7%
22%
82
Expenses Administrative expenses 6,996 5904 4789
3277
18%
23%
46%
26%
Other charges Total non mark-up / interest expenses Profit before taxation Taxation Current Prior years Deferred -
34
12
12
209%
--
100%
200%
7,030
5916
4801
3283
19%
23%
46%
27%
1,642
461
2300
3347 984 -113 1097 2250
256% 3206% -340% -237% 612% 187%
-80% -83% 79% 144% 120% -86%
-31% -90% -100% -318% -135% 19%
17% 19% 100% -43% 31% 11%
562
17
99
120
(50)
(234)
(147) 534
108 75 386
(246) (381) 2681
Profit after taxation Basic /diluted earning per share--Rupees
1,108
2.18
0.95
6.61
5.54
187%
-86%
19%
11%
HORIZONTAL ANALYSIS
83
BALANCE
SHEET
VERTICAL COMMON SIZE (%)

ANALYSIS OF BALANCE SHEET

Rupees in millions
ASSETS Cash and balances with treasury banks Balances other banks Lendings financial institutions Investments Advances with
2009 19,386
2008 16030
2007 13356
2006 14879
2005
2009 8%
2008 8%
2007 7%
2006 9%
2005
8364
3955
3497
7333
3%
2%
2%
5%
to 4,614 4480 14444 8393 2% 2% 8% 5%
67,046 135,034
35678 128818
39431 100780
28626 99179
26% 53%
18% 62%
22% 55%
17% 60%
Operating assets
fixed
9,846
8266
5129
3810
4%
4%
3%
2%
Other assets
10036 254,327
8964 206191
5535 182172
3813 166033 .
4% 100%
4% 100%
3% 100%
2% 100%
LIABILITIES
Bills payable Borrowings from financial institution Deposits and other accounts Sub-ordinated loans - unsecured Deferred liability net Other liabilities tax 2,946 19,300 2585 15190 182172 17553
166033 14964
1% 8%
1% 7%
1% 10%
1% 9%
205,970
167677
143037
131839
86%
81%
78%
79%
5,995
2996
2997
2999
3%
2%
2%
2%
334 4,833 239,378
13 4759 193220 12971
472 3220 169906 12266
736 2603 154980 11053
-2% 100% 6%
-3% 94% 6%
-2% 93% 7%
-2% 93% 7%
NET ASSETS
14,949
REPRESENTED BY:
85
Share capital Reserves Unappropriated profit
5,073 7,183 886 13,143
4059 7667 309 12035
3007 6948 2145 12100
2004 5815 1800 9619
34% 48% 6% 88%
2% 4% -6%
2% 4% 1% 7%
1% 4% 1% 6%
Surplus on revaluation of assets net of deferred tax
1,806
936
166
1434
12%
--
--
1%
14,949
12971
1226
11053
10%
6%
7%
7%
VERTICAL COMMON SIZE (%) ANALYSIS OF PROFIT AND LOSS ACCOUNT

Rupees in millions
2009
2008
2007
2006
2005
2009
2008
2007
2006
2005
86
Mark-up return interest earned Mark-up return interest expensed
/ /
22,662
18394
15143
12597
100%
100%
100%
100%
/ /
13,629
10651
8686
6977
60%
58%
57%
55%
Net markup / interest income
9,033
7743
6457
5620
40%
42%
43%
45%
Provision against loans and advances - net Provision against lending to financial institutions
2,324
3825
3920
1128
10%
21%
26%
9%
77
--%
--
--
--
Bad debts written off directly
--
247
--
-1129
-13%
1% 22%
-26%
-9%
2,915 Net markup / return / interest income after provisions
4073
3921
6,118
3670
2536
4491
27%
20%
17%
36%
Non Mark-up / Interest Income Fee, commission 1,308 and brokerage income Dividend income 163
1258
1073
1014
5.8%
6.9%
7.1%
8.0%
174
137
109
0.7%
1%
0.9%
0.9%
Income from dealing in 538 foreign currencies Gain on sale of 144 securities
873
655
584
2.4%
4.8%
4%
4.6%
37
2361
112
0.6%
0.2%
16%
0.9%
87
Unrealized loss on revaluation of investments (2) classified as held for trading
22
(2)
--
0.1%
--
--
Other income Total non markup / return / interest income
404
343
337
322 2139 6630
1.8% 11% 38%
2% 15% 35%
2% 30% 47%
2.6% 17% 53%
2,555
2707
4565
8,672 Non Mark-up / Interest Expenses Administrative expenses 6,996
6377
7101
5904
4789
3277
31%
32%
32%
26%
34 Other charges Total non markup / interest expenses Profit before taxation Taxation Current Prior years Deferred 12 12
0.2% 6 3283 31% --32% -32% -26%
7,030
5916
4801
1,642
461
2300
3347 984 --113
7% 2.5% 0.5% -0.7%
3% ---1%
15% 1% -2% -2%
27% -1% 9%
562
17
99
120
(50)
(234)
(147)
108
(246)
534
75
(381)
1097
2.0%
0%
-3%
18%
Profit taxation
after
1,108
386
2,681
2250
4.9%
25
18%
18%
BALANCE SHEETS VERTICAL ANALYSIS
88
5 FUTURE PROSPECTS OF THE ORGANIZATION

Askari Bank will be the leading private sector bank in Pakistan with
an international presence delivering quality service through innovative technology and effective human resource management . Askari Bank have passion for its customer , service and ambitious strategic intentions not only in Pakistan but also in the whole region. Askari Bank expects its strong customer focus to drive the banks future business strategy On the domestic side bank has already launched its consumer banking business. Increased investment is targeted in developing resources; Infrastructure and internal system support the aggressive consumer initiative and explorations of new avenue generation.
Furthermore Askari bank has plans to introduce a full suit of innovative consumer
finance products designed to capture a significant share of the local consumer financing market and tap into the current growth in demand of such financing
CHAPTER # 6 - SHORT-FALLS/WEAKNESSES OF THE FINANCE DEPARTMENT

. .1- SWOT ANALYSIS The SWOT analysis consists of analyzing organizational strengths and weaknesses, and
90
its environmental opportunities and threat. It helps to identify a strategic niche that the organization might exploit. SWOT analysis of ABL is as follows. STRENGTH Over the years Askari bank has proved its strength as a leading banking sector entity by achieving the following firsts in Pakistani banking.
One distinctive feature of the bank is that it is the only bank working for the welfare of army officers, which was established by Army Welfare Trust. The productivity of the bank is very good. Bank is providing a high quality service to its customers. ABL have strength that most of the imports & exports which are done in Model town Branch Lahore are handle by ABL Model town Branch Lahore.
First Pakistani bank to offer online real -time banking in a countrywide basis. First bank in Pakistan with a nation -wide ATM network. First bank in Pakistan to offer internet banking services . First bank in Pakistan to offer e- commerce solutions. First bank in Pakistan to start mobile ATM service.. Remittance department is working very efficiently in transferring the funds to peoples due to this system Bank is providing quick credit services to all the customers at all branches. Because the credit manager cooperates with the borrowers while making a loan request to the bank. Management is well organized.
Services provided by the branches are very good. The bank has stable growth in deposits
Askari bank has financial strength as they are gaining profit from the advances
that they provide to the organizations Because of its quality management, marketing, innovation in products and services they have established a good reputation in the banking sector.
In the bank working environment is very good. Every employee comes
there and works with zeal & heartily. WEAKNESSES

ABL has lesser number of branches as compared to many other branches. Due to this problem, army officers can not avail the benefits of their own bank The human resource department is not performing the function of selection and recruitment very effectively. Selection process is not on merit due to which competent persons cannot be selected. Bank is not introducing new products and new saying schemes. Bank should boost the product development and increase the range of facilities offered for customers
Bank is under staff so absence of members create problem The majority of people are not well aware about the products of Askari Bank It is due to their very low services of promotional activity. Askari Bank Management has adopted reactive approach they respond to the market very slow and are reluctant to take initiative before the problem arise. OPPORTUNITIES
Govt. is taking very bold steps to promote IT in Pakistan. ABL has an opportunity to improve in technology. Stock exchange is very volatile and takes immediate effect. So, in the time of crises, conservative investors return to saving deposits ABL is surrounded by many competitors. It has an opportunity to do aggressive marketing to increase its business.
As the Askari Bank offer to on line real time banking on a country wide basis so management has an opportunity to increase its business There is an opportunity for bank to promote there business because it the first bank that offer internet banking services in Pakistan. An external opportunity exists in efforts to improve the social environment of local communities and society in general by offering innovative, community involvement programs THREATS
ABL has many competitors, which are continuously increasing its products and marketing aggressively . It may cause its customers to shift to competitors Pakistan India relations often create a war danger. This chance of war may cause army officer and their families to increase the frequency of withdrawals, which would decrease deposits.
Continuously increasing banks may
products and marketing aggressively by other
cause to shift the customer of Askari bank to its competitors
93
As old banks have started changes and many new banks are emerging as a strong entity so Askari Bank will face a strong threat from this competition unless adopt pro active approach to handle these threats. The political conditions of the country affect the banks performance
Chapter # 7 Conclusion
conclusion
The analysis of strengths, weaknesses, opportunities and threat as narrated above tells us about the present vital concern. The internship of Askari Bank given me as exposure to the accounting atmosphere. It helped me greatly in understanding the financial system. The experience I got during the internship will help me in understanding the decision-making and how to solve daily problems encountered during the practical working environment.
7.1 - ANALYSIS, SUGGESTIONS & RECMMNDTIONS During my internship at the Askari Bank I find out week areas that require improvements for long-term benefit of the organization.
As such there is no need of any improvement as Askari Commercial Bank is one of the leading bank of the country and upholds its name but still I have a few suggestions in my mind which I think my duty to mention. First of all, in order to make the working environment of the bank better some recommendations are given. In any organization we have to work like a group as a whole. The attitude of the one employee can cause tension in the whole environment so it is suggested that they should work as a team and co-operate with each other as well as with internees for better working environment. For this purpose they should either make a schedule for the internees or the rotation time period be reduced in those department, which have less work for internees. Because during the internship the internees come
her to learn and know about the working of the organization. They should try to tell as much to the internees as possible. So that they can learn how they have to work in an organization when they get the job. Even if they get job in any other organization they know how working in the organization goes on.
Askari Model Town Branch do good progress in Lahore. But the most problem they face is Connection of Internet. All the employees have a computer system. So that this branch must improve the internet connection so that employees can work more efficiently The another important problem ABL Model Town Branch face is the number of employees working in the bank. The number of employees are very low due to this problem the distribution of work is also not right. Some person has more burden of work while some have less burden. So the overall working efficiency of the bank is not good. So the ABL Model Town Branch have need of good, honest, skilled young employees who can increase the efficiency of the bank.
Chapter # 9 Annexure Business volume
95
HIERARCHAL STRUCTURE OF ASKARI BANK AT HEAD OFFICE LEVEL
Board of directors
Executive committee
Treasury & C.M
Corporate
Banking Marketin g Dept
Investmen t Group
Consumer Banking
H.R.M Service & Quality
IT Dept
Audit & Inspectio n
96
Agriculture Loans
Commercial Loans
97
HIERARCHAL STRUCTURE OF ASKARI BANK AT BRANCH LEVEL
Branch Manager, Area Operational Manager
Custome r Deposit
Cash & Clearing

I IT
Bills & Remitt
Marketin g
Advance
Accoun ts
Foreign Exchange
98
STRUCTURE OF THE FINANCE DEPARTMENT
99
A ALLAMA IQBAL OPEN UNIVERSITY
OG- 111
Group Chief Financial Officer Country Head Regional Manager Regional Manager
Regional Manager
Regional Manager
Regional Manager M
Assistant Manager OG-111
Assistant Manager
100
101

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Acknowledgements

1.31 Staff Strength

ALLAMA IQBAL OPEN UNIVERSITY

1.4 Askari Bank Product line 1.41 CONSUMER BANKING

1.5 BRANCH BANKING

ALLAMA IQBAL OPEN UNIVERSITY

FINANCIAL ANALYSIS 4 ALLAMA IQBAL OPEN UNIVERSITY

GRAPHICAL REPRESENTATION OF RATIOS:

Portion B Section II REVIEW

Section III ANALYSIS

Strength Weaknesses Opportunity Threat

FINDINGS AND RECOMMENDATION

Banking in indo- Pak sub Continent

ALLAMA IQBAL OPEN UNIVERSITY

Establishment of the State Bank of Pakistan

ALLAMA IQBAL OPEN UNIVERSITY

ALLAMA IQBAL OPEN UNIVERSITY

CHAPTER # 2 - OBJECTIVES OF STUDYING THE ORGANIZATION

OVERVIEW OF THE ORGANIZATION