INTERNSHIP REPORT ON ASKARI BANK LIMITED

BY

WAQAR AHMED

Submitted in partial fulfillment of the requirements For the Degree of Master of Business Administration

Hazara University Haripur Campus [2010-2012]

Certificate of Approval
It is hereby certified that the report has been thoroughly and carefully read and recommended to the faculty of Management Sciences for acceptance of Final Internship Report by Waqar Ahmed Roll No 2180, Session (2010-2012) in partial fulfillment of the requirements for the degree of Master of Business Administration of Hazara University Manshera

Supervisor

Name: ________________ Designation:_______________ Signature: ________________

Coordinator of Business Administration Department

Name: ________________ Signature: ________________

Dedication

I dedicate this report to my parents who have continuously given moral support and encouraged me. They gave me mental strength to fight and deal with the hurdles of the daily routine I faced during my studies. At this stage I can say that today what I am and where I stand is just because of them.

Acknowledgements

First of all I am really thankful to Almighty Allah Who gave me the strength to write this report and complete it in time. Many people have contributed in the successful completion of this internship report. My great appreciation goes to the whole team of Askari Bank Ltd (Accounts Department), who provided me every kind of help in completion of this report. I would like to thank all my respected teachers and specially my supervisor who helped me and guided me well in making of my internship report. This report gave me the opportunity to put into practice of what I had learnt during the internship. It gave me a better idea of how things work practically and how important it is to deal with different aspects of finance.

Executive Summary

The purpose of this study is to experience real life banking practices in order to bridge the gap between the theoretical and the actual for better comprehension and knowledge of the different aspects of this vast field of profession. The main purpose of this report is to critically analyze and comprehend banking operations and suggest measures in the form of concrete recommendations. Besides, the report also aims to inculcate amongst the students the method of collecting relevant material and shaping it in the forms of formal report writing. The word Bank itself is derived from the Latin word Bancus and French word Banque that means a bench. The Lombard Jews transacted their business on benches in the market place. When a banker failed his banco was broken up by the people so the word bankrupt originated in practice from this. Askari Bank Ltd was incorporated in Pakistan on Oct. 09, 1991. The bank obtained business commencement certificate on Feb. 26, 1992 and started operations from April. 1, 1992, as public limited company, and has since expanded into a nation-wide presence of 160 branches, handled by a human capital of 6000 employees and lowest turnover in Pakistani banking sector. The bank is listed on the Karachi, Lahore and Islamabad stock exchanges and the initial public offerings was over subscribed by 16 times Askari bank is principally engaged in the business of banking as defined by the Banking Companies Ordinance, 1962.

Every department of the bank has its own functions. The remittance department deals with the transfer of money from one place to another. This department deals with the local currency transfer only. Askari Bank provides these services to both customers & non-customers. Term deposit department accepts deposits it is one of the most important functions of a bank. Deposits are as necessary to the bank as blood to the human body. It is backbone of the bank. The banks receive surplus income of the individuals, companies in the form of deposits. These deposits are

useful in many ways as they provide source of earning for the bank and help in meeting the consumption and business needs of community.

The bank has the potential to sustain the growth rate but in this modern era one has to keep pace with the technology. Askari Bank should give special emphasize on bringing and using new technology in its operations as well as in its products. The bank has a centralized structure that should be modified so the employees can produce better output.

The rates for the various charges provided by the bank should be brought down a bit, as it would result in increase in the number of customers of the bank. The bank should also give a good rate of profit to its customers on their saving accounts by doing this they would increase their customers The number of allowances and perquisites for the employees should be increased to ensure that they put their body and soul in the jobs assigned to them. The bonuses since the last two years were given once in the year where as it use to be twice or thrice previously. Askari Bank needs to focus on these areas that will bring positive change, which will be helpful for a prosperous future.

Table of Contents
Sr. No Introduction Definition of Bank--------------------------------01 Baking Companies Ordinance------------------01 Commercial Bank--------------------------------01 History of Banking in Pakistan-----------------02 Company Background History---------------------------------------------03 Present situation----------------------------------05 Vision----------------------------------------------06 Mission--------------------------------------------06 Core Values---------------------------------------06 Corporate Philosophy----------------------------06 Organogram---------------------------------------07 Corporate Information---------------------------08 Departments & Products Accounts Opening department-----------------09 Remittance department.-------------------------11 Cash department---------------------------------12 Term deposit department-----------------------14 Clearing department-----------------------------15 Credit department--------------------------------18 OBC department---------------------------------.21 Internships Experience.24-31 Duties and Responsibility32 Contents

Skill Gained.33 Strategic and Financial Analysis Swot Analysis..34 Financial Analysis.37 Competitive Analysis.. 55 Conclusions And Recommendations Conclusions61 Recommendations .63 References .65 Annexure66