Escolar Documentos
Profissional Documentos
Cultura Documentos
On
ASKARI Bank Ltd. KHANEWAL
Compiled By:
Imran Mehmood
Mc070200390
MBA (Finance)
Session 2007-2009
Cell # 0333-5585694
Date of Final Report
Jun 29, 2009
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Dedication
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ACKNOWLEDGEMENT
First of all I praise to Almighty Allah who gave me the strength and
courage and patience to complete this report.
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I am highly thank full to Mr. Rehmat Ali Sheikh (Manager
Operations), Miss Farhana Ali (In charge General Banking Officer) and
Mr. Mehmood Ali Siddiqui (Head Cash Department).
Executive summary
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First of all I will tell you about Bank then I will tell operations of different
department. In preparing this report Mr. Muhammad Arif Waseem Manager
Khanewal branch and all staff members help me about all topics, I have put
all of my best efforts and tried my level best to give maximum knowledge.
Ghgh
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Table of Contents
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Brief introduction of the organization’s business
sector
There are at present 20 domestic banks with 7,590 branches and 21 foreign
banks with 71 branches in operation in the country. Total Paid-up capital of
scheduled banks amounted to Rs. 33.82 billion as on 1st April, 1993 as compared to
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Rs. 29.29 billion on 2nd April, 1992. Their total assets amounted to Rs. 1089.76
billion on 1st April, 1993 as compared with Rs. 864.92 billion on the corresponding
date last year. Their assets increased by 13.1 per cent during the first nine months of
the current year up to 1st April, 1993 compared to an increase of 12.0 per cent during
the corresponding period a year earlier.
During this period their credit showed a rise of Rs. 55.54 billion or 20.3 per
cent as compared with a rise of Rs. 30.54 billion or 13.0 per cent during the
corresponding period last year. They mobilized deposits aggregating to Rs. 46.74
billion during the first nine month period of the current year as compared with an
increase of Rs. 40.01 billion recorded during the same period last year, indicating a
rise of 16.8 per cent. Their investment in government securities, treasury bills and
other investment in shares and securities increased by Rs. 13.00 billion as compared
with an increase of Rs. 24.84 billion in the comparable period last year.
PRIVATE BANKING
Pakistan's private banks seem to have made deeper inroads in the saving
habits of people as the promising working results published by half of them for last
year alleyed fears about their commercial viability in a tight liquidity market and a low
savings rate. Most of them have completed the first year of their operation
successfully, showing profits and in some cases good payouts too. Many financial
analysts felt that years to come could be much better if the current pace of growth
was maintained. What seem to have impressed them are economics of scale at all
levels and an efficient management of the financial affairs. "If the maiden year is any
yardstick to the future, they have snatched away their due share with skill and
professional efficiency, "says a leading financial analyst. But most of them have
transferred big amounts to reserved fund or special reserve funds, a tendency might
be good or bad at the same time for a new bank, he added.
In some cases they did not share profits with the share holders but made it a
point to transfer certain amounts to the reserve funds. What is important for us is to
maintain a strong liquidity position at least for the initial few years as a cushion
against high borrowing costs and other allied compulsion of the situation, another
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banker said and added it was also necessary to meet the central bank's
requirements.
Some two years ago Pakistan government allowed the private sector to set up
commercial and investment banks and soon after more than a dozen banks were
established. Pakistan had five banks in the public sector, out of which two Muslim
Commercial Bank (MCB) and Allied Bank Limited (ABL), have been sold to the
private sector.
Most of the new banks were owned by powerful industrial groups including
Saigols, Habibs, Dawoods and Nishat groups, some of them have stake in more than
one bank. Banking sources said though some of the banks catered to the needs of
their group business, they are as open to others as to their own group.Banks in
Pakistan have been catering basically to the needs of the Government
Organizations, subsidizing the fiscal deficit, serving a few large corporations and
engaging in trade financing. There was no lending to small and medium enterprises,
to the housing sector or to the agricultural sector, which create most of the growth
and employment in Pakistan. Most important, the financial system suffered from
political interference in lending decisions and also in the appointment of managers.
The middle class which is the backbone of any Reproduced from Blue Chip – The
Business People’s Magazine - January 2005 economy was not given due attention
by the banking sector. There were legitimate reasons for such an errant behavior.
First, the government’s fiscal deficit was so high that most of the deposits the banks
used to get, were loaned to the government and government corporations. This was
safe lending which fetched good returns and the banks made good profit out of it.
Naturally, there was little incentive for them to do anything else except lend to the
Government which was both risk free and highly remunerative. Secondly, the
government owned most of the banks. In the government banks the staff worked like
typical government employees, coming to office at 9:00 a.m., checking files; having
nothing important to do and leaving at 5.00 p.m. without doing much work. These
banks suffered from a high bureaucratic approach, overstaffing, unprofitable
branches and poor customer service. Administrative costs were high reducing profits
of depositors. Thirdly, recovery rate was so low that almost 25% of the loans were
stuck up as a large number of loans to the private sector borrowers were not given
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on the merit of the proposal but on political considerations. These influential
borrowers hardly repaid their loans. Fourth, banking industry faced a high tax rate of
58 percent while the rest of the corporate sector paid only 35 percent. This high
punitive rate along with the burden of stuck loans and inefficiency of the staff was
passed on to the customers in form of high lending rates and low deposit rates. The
banking industry was not attractive for new entrants who could foster competition and
improve efficiency. Because of these factors, i.e. high administrative costs, burden of
stuck-up loans and excessive tax rates, the average interest rate for lending was
about 21% per annum. The middle class borrowers could not afford to get credit on
such high interest rates and pay it back. Banking sector reforms were thus needed
badly to address these and other constraints so that the banks could play their due
role in the economic development of the country. Although, there is no room for
complacency and a lot still needs to be done, even the worst critics of this
government do concede that if there is one sector which has undergone basic
transformation that is the banking sector. The IMF and the World Bank who are not
always very generous or effusive in their praise had this to say about the Banking
sector in Pakistan after completing a comprehensive and thorough review in early
2004. Quote: “far reaching reforms have resulted in a more efficient and competitive
financial system. In particular, the pre-dominantly state-owned banking system has
been transformed into one that is predominantly under the control of the private
sector. The legislative framework and the State Bank of Pakistan’s supervisory
capacity have been improved substantially. As a result, the financial sector is
sounder and exhibits an increased resilience to shocks”
Increased Merger & Acquisition activity in the banking sector with local private
banks having made several domestic acquisitions
Large expansion of branch network and deposits by private and some foreign
banks
Rationalization of branches by nationalized banks
Increased focus towards consumer finance
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Increased focus on attracting local rupee deposits
Increased emphasis towards automation and customer service
Reduction in the increase in non performing loans as a result of better
governance of banks and greater accountability process initiated by the
government
Significant increase in inward remittance business as a result of governmental
clamp down on unofficial remittance channels following September 11.
Overview of Organization
Brief History
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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 nationwide presence of 150 branches, and
an offshore banking Unit in Bahrain. A shared network of over 1,100 online ATMs
covering all major cities in Pakistan supports the delivery channels for customer
service. As on December 31, 2007, the bank had equity of PKR 12.27 billion and
total assets of PKR 182.17 billion, with over 800,000 banking customers, serviced by
our 6,808 employees.
Smart Cash
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Product Featuring:
Eligibility to Apply:
Personal Finance
Product Featuring:
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Maximum up to Rs. 1 Million. (Secured)
Tenor: Maximum up to 5 Years
Repayment: Monthly Installments
Markup Rates: Competitive
Servicing: Available at all Askari Bank branches
Balance Transfer Facility: Available
Eligibility to Apply:
Mortgage Finance
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.
Product Featuring :
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Eligibility to Apply :
Business Finance
You always wanted to put in that extra money into your business, which makes it
grow... and grow!. Now you can stop worrying about your daily cash requirements,
and start enjoying our unique Askari Business Finance facility.
Product Featuring:
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Facility:
Eligibility to Apply:
Age: 21 to 65 Years.
Borrowers: Resident Pakistani Nationals.
Business Requirements:Maximum up to Rs. 500,000/. (Clean)
Employment: Minimum one year's business or
professional experience in the present
business
Charge/Fees: As per current Schedule of charges
Investment Products
“Earn Rs. 925/- per month on investment of every Rs. 100,000/- for one year!"
“Earn Rs. 1,000/- per month on investment of every Rs. 100,000/- for three years!”
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Salient Features
Askari Bank has launched the Askari Roshan Mustaqbil Deposit, a saving plan
specially designed for individual investors who wish to invest now for a regular return
at a later stage while keeping their principal amount intact. With Askari Roshan
Mustaqbil Deposit you can double your investment in a time period of ten years.
Invest now in the form of monthly deposits for five years and get paid back the same
amount for the next five years while receiving your principal amount in full at the end
of the tenure.
Salient Features
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Askari Deposit Multiplier Account
“Value of initial investment of Rs. 100,000/- will increase to Rs. 265,000/- at maturity!”
Aim higher with your investments with Askari Deposit Multiplier account. This account
is for individual investors whose purpose is long term savings with high returns. With
a tenure of 10 Years and a competitive rate of return on maturity this account is ideal
for investors who wish to start saving for their future today.
Salient Features
“Value of initial investment of Rs. 100,000/- will increase to Rs. 265,000/- at maturity!”
Aim higher with your investments with Askari Deposit Multiplier account. This account
is for individual investors whose purpose is long term savings with high returns. With
a tenure of 10 Years and a competitive rate of return on maturity this account is ideal
for investors who wish to start saving for their future today.
Salient Features
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Minimum Rs. 50,000/-
Balance requirements:
Maximum up to Rs. 10,000,000/-
Tenure: 10 Years
Profit payment: On maturity
Profit Rates: Competitive
Servicing: Available at all Askari Bank branches
Financing Limits: Up to 90% of the principle amount
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.
Askari Bank offers you its "Rupee Traveller Cheques" eliminating all financial
risks while traveling. So avoid risk of carrying cash through Askari Bank's
Rupee Traveler Cheques.
ASKCARD
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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 cash through ATM anywhere, anytime.
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
Important Features
1. Balance enquiry
2. Funds transfer
3. Statement of accounts
4. Chage of password
5. Free payment of utility bills
6. Payment of school fee
It has always been our endeavour to introduce products and services tailor made to
the requirements of our valued customers. Now you can pay your Utility Bills through:
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2. Askari bank's ATMs Nationawide
3. Internet Banking Services
4. Call Center.
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
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
Product Features
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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
10. Encashment by third party
Commission being paid to customers on retention of RTC for a period of One Month, @ 0.1%
of face value of RTC.
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Islamic Banking Services
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• 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.
The Askari Kissan Agri Finance Program (AKAFP) has been designed to meet ON
FARM / OFF FARM credit requirements of farmers on the most convenient, flexible,
easy terms and conditions. The program features:
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• Convenient repayment terms based on cash flow abilities.
• Availability of leased Tractors / Transport without Land / Collateral.
• No Hidden Cost.
• Availability of interest free package for inputs and tractors etc.
• No Pre-adjustment penalties.
• Earn prompt payment Bonuses and reduce financial costs.
• Insurance cover of leased assets, animals, crops and life assurance of
borrowers.
• This program has been designed to benefit the owner as well as non-owner
farmers.
• The farmer will have privilege of availing non-funded facility at a reduced cost
under this program on account of more equity participation.
• Although the facility is available for a period of five years. However, good
farmer bonus will be available to the borrower in case the loan is repaid as per
terms of sanction.
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• Priority in delivery of tractor will be given by manufacturer as per
arrangements with the bank.
• The farmer’s life & tractor will be insured against contingencies, which will
provide comfort and piece of mind.
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his diet. This program has the added advantage that besides fulfilling his own family’s
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
• The program will provide regular day to day income to the farmer to meet his
own consumption and surplus to be marketed.
• This will revive / accelerate and supplement the income generating capacity.
• It will enhance the repayment capacity of the farmer.
• 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.
• Helps to match / compete with international standards for exportable
agriculture produce.
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A grave handicap that afflicts our farmers is their
inability, due to lack of proper facilities, to take their
produce to the market through efficient means of
transportation. This adversely affects the freshness,
quality of the product and denies them the desirable
Price-Fetching opportunity. Conversely, they lack
mobility to acquire much needed inputs essential for their farming needs. One can
safely conclude that if provided with appropriate and speedy transport, the farmer
can benefit by enhancing his selling ability and thus increase his income / cash flow.
it is pertinent to mention that a number of Banks, Leasing Companies and Private
Agencies have geared their marketing efforts to concentrate on and have mainly
captured the urban markets. There is no support provided to cater to the transport
needs of deserving rural farmers community. Askari Bank true to its commitment, has
taken the lead to launch Askari Kissan Farm Transport Finance.
Competitors
In the success story of ASKARI BANK, one of the most important factors, apart from
its dynamic management and prudent approach, is the QUALITY of its SERVICES,
which gives it a great edge over its competitors. ASKARI BANK has always strived to
facilitate its customers by introducing various high quality hi-tech services for the first
time in Pakistan.
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• National Bank of Pakistan
• Emirates Global Islamic Bank
• Meezan Bank Limited
• Allied Bank Limited
• MCB Bank Limited
• NIB Bank Limited
• United Bank Limited
• Habib Bank Limited
• House Building Finance Corporation
• Khushhali Bank Limited
• Askari bank Limited
Organizational structure
President
(CEO)
Senior Vice
President
Vice President
Assistant Vice
President
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Branch Manager
Assistant Manager
Operations Manager
Officers Grade I,
II, III
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Corporate Information
Lt. Gen. Javed Zia (HIM) Chairman
Audit Committee
Auditors
A.F.Ferguson & Co. Chartered Accountants
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Legal Advisors
Number of employees
Permanent 4,834
Temporary / on contractual basis 1,273
Commission based 789
Bank's own staff strength at the end of the year 5,896
Outsourced 912
Total staff strength at the end of the year 7,808
Main offices
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Address : ASKARI BANK LIMITED AWT PLAZA BRANCH RAWALPINDI
City: Rawalpindi Region : North
Manager: 9063200 / 9273178 Manager (Ops) : 9063198 / 9273177
PABX #: 9063158 Fax No: 9273175 / 9273180 /
9273181
E-Mail: b0001@askaribank.com.pk Tlx:
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Address : 24-D, Rasheed Plaza, Jinnah Avenue, Blue Area, P.O. Box 1499
City: Islamabad Region : North
Manager: (051) 2871144 Manager (Ops) : (051) 2271801
PABX #: (051) 2271794-6 Fax No: (051) 2271797
E-Mail: b0008@askaribank.com.pk Tlx: 54683 ASKRI PK
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Account Opening department
Cash Department
Account Department
Remittance Department
Clearing Department
Foreign Trade Department
Credit Department
Credit Card Department
Borrowing funds from different sources has become a crucial feature of today's
business enterprises. But in the case of a bank, borrowing funds from outside parties
is all the more vital because the entire banking system is based on it. The borrowed
capital of a bank is much greater their own capital. Banks borrowing is mostly in the
form of deposits. These deposits are lent out to different parties. Such deposit
creation is done through opening an account in the Bank.
In Askari bank khanewal Miss Farhana Khan is operating the account opening
department along with performing some auxiliary functions of Check Book Issuing.
ATM CARD
Issuance of ATM card is carried out by same account opening department. ATM
Cards are only issued to Account Holder
ISSUING PROCEDURE
The person, first opens the account within the blank.
Then he fills the ATM application form in which name of account holder,
Fathers name account number and national identity card number are
mentioned.
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A copy of C.N.I.C is also attached with the application form.
After completing this process, the application package is sent to head office
Askari Head office branch takes a period of 15 working days for preparing and
processing of ATM cards. First, list of card holder is issued and then after 15
days cards are send to Askari bank issuing branch. The card and list are not
sent simultaneously in order to avoid any mishandling.
Askari bank takes Rs. 300/- per year as maintenance charges for a card
CASH DEPARTMENT
Cash department of Askari bank works under the operation department. This
department is given the complete responsibility of cash, as result of transaction in
touch local and foreign currencies. It is also responsible for the book keeping of these
transactions and the safe custody of cash.
This department performs the main function.
Cash receipts
Cash payments
Cash Receipts
In cash department depositors use deposit slips for depositing the amount
in their accounts. The officer checks if the deposit slip is properly filled up containing
title of account, Account number, date and amount in words and figures. Detail on
both counter file and cash receipt voucher should be the same. The cash details are
written on the back of the deposit slip and are also entered in cash receiving register.
Cash received stamp is affixed on the face of the deposit slip along with the signature
of the cash receiving officer. Cash receiving officer, after twice counted and matched
with the deposit slips will handover cash to the customer.
Cash Payments
First the cheque is presented by the customer or holder to cash payment
officer. He confirms particulars of cheque are properly filled in. Two signature of the
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drawer is taken on the back of the cheque. Cheque is handed over to the officer cash
department for inspection where officer checks the date, amount in words and
amount in figures, payee’s name, crossing if any, account number, cheque serial
number, any material alterations / endorsements and signature of the customer.
Account is debited and then the officer cancels cheque. It is posted in the system and
posting stamp and number is affixed on it. Cheque is handed over to the cash
payment officer for payment, then cash is paid to the cash detail is written on the
back of the cheque. Cash paid stamp is affixed on the face of the cheque. Entry is
passed in the cash payment register and system.
ACCOUNTS DEPARTMENT
Accounts department is a department which deals and checks all the activity of all
the department .It also deals in expression of finance of the bank. Salary payment is
also one function of the bank. These are responsibilities of accounts department.
OTHER ACTIVITIES
REMITTANCES DEPARTMENT
Remittance department provides services to the customer of the bank. The main
function of this department is transfer of funds. The instruments that are handled in
the B & R department are as follows:
I. Demand Draft.
II. Traveler’s Cheque
III. Telegraphic transfer.
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IV. Mail transfer.
V. Pay order.
VI. OBC.
VII. IBC.
CLEARING DEPARTMENT
“The process by which cheque exchanged between the collecting and paying bank
and the ensuing financial settlement is called “clearing”. This facility is provided by
the state bank of Pakistan for offsetting of cross obligations between the different
banks. Clearing is of two types.
1) Inward clearing
2) Outward clearing
Inward Clearing
When cheque drafts, etc, of our branch presented to us for clearing by the SBP.
Cheque to be honored by bank.
Outward Clearing
The cheque of other banks, which the account holder deposit in their accounts is,
sends for collection.
CLEARING procedure
Here the local cheques are received that are drawn on Askari bank. All the cheques
are received on one counter along with the paying slips duly filled in properly
containing particulars of cheque and account holder. Counter folio of paying slip is
handed over to the customer by putting stamp for cheque received for collection for
Askari bank on it duly signed by officer. These cheques are scrutinized and cheques
for local clearing are separated from OBC. These are then entered in clearing
register and cheques for collecting are entered in OBC register and handed over the
bills department of collection. Clearing officer checks and verifies title of all the
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cheques deposited by the customer to confirm the good title of the cheques.
Cheques are scrutinized properly and paying slips are separated from cheques.
Special crossing, endorsement and clearing stamps are affixed on the cheques.
Cheques of each bank are sorted and arranged branch wise. All the cheques are
then entered into the clearing system of bank. Print out of the clearing is taken and
details are attached.
With the cheques of each bank. Details of these banks are then entered into
the clearing schedule containing number of cheques presented and their total
amount against the name of each bank. Then total number of cheques presented to
all banks and their total amount is written on the foot of that schedule, which is tallied
with the clearing register.
Next morning, these cheques are delivered to the respective banks in clearing
house of SBP between 9:00 to 9:30 AM. In the same manner, other banks present
their clearing drawn on Askari bank. Total number of cheques and their amount
delivered to other banks are received from them are written on the clearing house
schedule and handed over to the officer clearing house SBP. Cheques / DD received
in clearing are given to the officer cash department of the branch for their repayment.
After I proper scrutiny of cheques, verification of signatures and confirmation of
balance in the account, officer cash department pays these cheque by canceling and
posting them in the system.
If any cheque is not passed due to insufficient balance or any other reason,
officer cash department returns the same cheque by attaching a cheque return
memo containing reason for return. This cheque is entered into the cheque returned
register and bank charges are deducted according to the schedule of charges.
Second clearing is called at 2:30 PM to check the fate of the Cheques presented to
other banks in the morning. If any cheque is to return, that is delivered to the same
bank in second clearing. In the same manner, if any cheque presented by Askari
bank in first clearing is returned, they receive it and once again give schedule of
clearing figure to the officer-clearing house SBP containing number of cheques and
their amount delivered and received unpaid.
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FOREIGN TRADE DEPTARTMENT
Nature has distributed its wealth un-evenly. Some countries are rich in human
resources other have mineral wealth in abundance and yet other have arable land
and favorable climate conditions for agricultural production. This un-even distribution
of resources basically determines the productive efficiencies of different countries.
This is the point where different countries come together to exchange their
competencies and efficiencies. The countries, which lack in any of the resource, start
importing those resources from the country that is having excess of it. In this way the
trade starts between different countries.
CREDIT DEPARTMENT
Credit department is also one of the most important departments of the bank. It is
called the mind of the bank. This department controls the affairs of bank related with
the finances or loans.
The credit department of askari Bank also performs the functions relating to the credit
administration and credit accounts. It performs following functions. Our Credit and
Department aims at providing complete financial solutions for its customers. Skilled
professionals deliver contemporary corporate banking services in a personal manner.
Committed to maintaining stable and long term relationships with our customers,
Askari Commercial Bank combines personalized services with technological
capabilities to deliver sophisticated banking solutions.
I. Trade finance
II. Short Term Working Capital Finance
III. Local Currency Syndication Finance (Foreign Currency Syndication can also
be arranged)
IV. Medium Term /Long Term Finance
V. Term Finance Certificates
VI. Offshore Loans
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VII. Advisory Role (Balance Sheet Restructuring).
OBJECTIVES OF LENDING.
In the modern economics, more than 90% business concern raises their funds from
various financial institutions to meet their multifold transaction. Actually it is very
difficult for the modern businessman to run his business on a huge scale solely. He
has to float his shares to the public or knock the doors of financial institutions, for
example the banks.
Miss Muneeb deals this department. He told me that the bank is authorized to issue
the credit card of two companies, which are under bank of America.
I. Master Card
II. Visa Card
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Plan of internship program
I got a golden chance of internship in Askari bank khanewal branch. It was the first
step of my professional life. Day before I have not got the experience of professional
taste. Askari bank khanewal branch is situated at DAHA plaza on Markazi Jamia
Masjid Chowk. The site is situated in very busy area of the city. That is why this
branch has a competitive advantage over the other branches.
The training schedule was divided weekly. Followings are the departments in
which I got training during the internship.
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Account Opening Department
Clearing Department
Second was the clearing department.
Responsibilities
There are two types of clearing.
1. Inward clearing
2. Outward clearing
I entered the cheques lodged for inward clearing in clearing register as their cheque
number account holder name cheque amount and bank name amount to be paid.
Secondly I prepared (O/W) clearing for next day. Same as entered cheque number
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account holder name amount and Bank name. In this week I also entered cheque
return in cheque return register and put cheque return slip on cheque.
CLEARING PROCESS
State Bank of Pakistan is a main clearing house. In those cities SBP is not
available; SBP has assigned this duty to National Bank Of Pakistan. In clearing
process the local cheques are received that are drawn on askari bank. All the
cheques are received on one counter along with the paying slips duly filled in
properly containing particulars of cheque and account holder. Counter folio of
paying slip is handed over to the customer by putting stamp for cheque
received for collection for askari bank on it duly signed by officer. These
cheques are scrutinized and cheques for local clearing are separated from
OBCs. These are then entered in clearing register and cheques for collecting
are entered in OBC register and handed over the bills department of collection.
Clearing officer checks and verifies title of all the cheques deposited by the
customer to confirm the good title of the cheques. Cheques are scrutinized
properly and paying slips are separated from cheques. Special crossing,
endorsement and clearing stamps are affixed on the cheques. Cheques of each
bank are sorted and arranged branch wise. All the cheques are then entered
into the clearing system of bank. Print out of the clearing is taken and details
are attached.
With the cheques of each bank, details of these banks are then entered into the
clearing schedule containing number of cheques presented and their total
amount against the name of each bank. Then total number of cheques
presented to all banks and their total amount is written on the foot of that
schedule, which is tallied with the clearing register.
Next morning, these cheques are delivered to the respective banks in clearing house
of SBP between 10.00 AM. In the same manner, other banks present their clearing
drawn on Askari bank. Total number of cheques and their amount delivered to other
banks are received from them are written on the clearing house schedule and
handed over to the officer clearing house SBP. Cheques / DD received in clearing
are given to the officer cash department of the branch for their repayment. After I
proper scrutiny of cheques, verification of signatures and confirmation of balance in
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the account, officer cash department pays these cheque by canceling and posting
them in the system.
If any cheque is not passed due to insufficient balance or any other reason, officer
cash department returns the same cheque by attaching a cheque return memo
containing reason for return. This cheque is entered into the cheque returned register
and bank charges are deducted according to the schedule of charges.
Second clearing is called at 2:00 PM to check the fate of the cheques presented to
other banks in the morning. If any cheque is to return, that is delivered to the same
bank in second clearing. In the same manner, if any cheque presented by askari
Bank in first clearing is returned, they receive it and once again give schedule of
clearing figure to the officer-clearing house SBP containing number of cheques and
their amount delivered and received unpaid.
REMITTANCES DEPARTMENT
Remittance department provides services to the customer of the bank. The main
function of this department is transfer of funds.
The instruments that are handled in the B & R department are as follows:
Demand Draft.
Traveller’s Cheque
Telegraphic transfer.
Mail transfer.
Pay order.
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Finance DEPARTMENT
Car finance
Benefits and Features
• Quickest processing
• No hidden charges
• Minimum down payment
• Complete repayment at any point of time
• Balance transfer facility {BTF} for existing as well as new clients from other
Banks
• Tenure period ranging from 1 to 5 years.
• Financing of all brand new locally assembled vehicles and used cars.
• Financing limit ranging b/w Rs. 200,000/- to Rs. 2000,000/- for brand new cars
Corporate and individual car leasing
Askari bank recently introduced car leasing facility for individuals and corporate
sector has set new dimensions for the product. Now you are provided with the option
of either to get the vehicle leased or financed.
insurance
Renowned and reliable Insurance company EFU are offering the competitive rates of
Insurance. Pay year insurance premium in advance { at the time of down payment }
and remaining in the subsequent equal monthly installment.
how much extra money being paid? {Mark-up}
Askari bank mark-up rates are as follows
Pak Suzuki Cars 15 %
All other local assembled Cars 15.5 %
Repayment
Easily affordable installments on monthly basis in the form of postdated cheques will
set you free of depositing your rental cheques every month.
Security
Hypothecation of vehicle in the name of the askari bank ltd.
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YOU CAN ACT AS A CO BORROWER
Acting as a co borrower, will enables your family members {spouse, children- 18 year
and above} to avail the financing facility and can get the car registered in their names
as well.
Documents required
• Two passport size photographs.
• Copy of National ID card.
• Bank statement for the last six months.
• Salary certificate {for salaried individual}.
• Business proof {for a business person}.
• N.T.N Certificate.
• Co borrower’s NIC copy {if the car is to be in the name of the co-borrower}.
Eligibility
Yes you get a car loan form askari bank to purchase a brand new car if you are:
Pakistani National Identity Card holder.
Over 20 years of age (Maximum 60 years in case of salaried and 62 in case of a
For a bank like askari its biggest source of generation of funds is from
deposits in form of current and PLS accounts by the clients of the banks.
Funds deposited by the clients of the banks are allocated to different forms of
financing and investing activities. For example funds are allocated in the form of Auto
Finance leasing and crediting funds to agriculturists.
FINANCIAL ANALYSIS
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The importance of financial statements lies in their utility to satisfy the
questions in the mind of different stakeholders. Different classes of people are
interested in the financial statements analysis with a view to assessing the economic
and financial position of any business or industrial concern in terms or profitability,
liquidity or solvency etc. for example, the commercial banks are mainly interested in
short term liquidity and profitability while prospective investors may be interested in
long terms profitability and solvency. Financial statements, among other things,
include balance sheet and income statement. Balance sheet presents assets and
liabilities of the business at a given date. Beside, showing the ability or the business
to servic3e the loans on the strength of its financial structure and on the history of its
profitability, it helps in judging the impact of financial and fiscal support and in
evolving secured basis for extending such support. Likewise, apart from showing the
progress and profitability or a business, income statements disclose, how the
business has been conducted and determines factors behind a rise or decline in the
net worth. The purpose of analysis of financial statements is to examine past and
current financial data so that a company’s performance and financial position can be
evaluated and future risk and potentials can be estimated. The analysis can yield
valuable information about trends and relationship, the quality of a company’s
earning, and it financial strengths and weaknesses.
Is the business expanding or contracting?
Is it more profitable than last year or less profitable?
How efficiently is the capital employed in the business being utilized?
Does the business have any financial problem?
And much more
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i. Ratio analysis
The ratio analysis and industry analysis tools below are very useful for individuals
to instantly assess a company or industry by making two basic types of
comparisons. First, the analyst can compare a present ratio with past (or
expected) ratios for the organization to determine if there has been an
improvement or deterioration or no change over time. Second, the ratios of one
organization may be compared with similar organizations or with industry
averages at the same point in time. This is a type of "benchmarking" so that one
may determine whether the organization is "average" in performance or doing
better or worse than others. For the professional, conducting such in-depth
analyses is critical, allowing an analyst to make an informed business or
investment decision.
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2008 2007 2006
461,382 / 5,915,615 2,299,785 / 4,801,587 3,346,855 / 3,283,494
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2008 2007 2006
2,531,035 4,480,991 / 182,171,885 3,867,571 / 166,033,588
/206,191,138
Working
2008 2007
Current Ratio 16,029,635 1.124302446 13,356,055 0.835115
3,954,814 3,497,054
19,984,449 16,853,109
2,584,828 2,627,051
15,190,148 17,553,525
17,774,976 20,180,576
Working Capital 2,209,473 -3,327,4
Time Interest 461,382 0.077993919 2,299,785 0.4789635
Earned
5,915,615 4,801,587
Debt Ratio 15,190,148 0.08820092 17,553,525 0.112810
2,996,100 2,997,300
18,186,248 20,550,825
206,191,138 182,171,885
Debt Equity Ratio 18,186,248 1.511126437 20,550,825 1.698465
12,034,895 12,099,645
Return on Assets 2,531,035 0.012275188 8,370,382 0.0459477
206,191,138 182,171,885
Return on 2,531,035 0.012275188 4,480,991 0.0245975
Investment
206,191,138 182,171,885
ii. Horizontal & vertical analysis of the organization for the last three
years
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a. Organization analysis in comparison with its industry (or with
its competitors)
b. Future prospects of the organization.
SWOT analysis means to analyze the threats and opportunities that are part of
external environment and strengths and weaknesses of the organization, which are
part of the internal the environment. Based on this environmental analysis company
formulates the strategies to find out the target customer’s designs objectives and
mission statements to fulfill the needs of the target customers and strategies to
respond to the competitive environment.
Strengths
Vast Network
It is another strength of askari bank. Askari bank has extensive and integrated global
network of its branches to facilitate its kind customers. Its upgraded global
infrastructure provides unique services system with higher and efficient to the
customers.
Internation Branches
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The international branches of askri bank n the world make it unique and outstanding
in the banking sectors e.g, UK Europe, Middle East etc.
1. ASKARI BANK is one of the leading institutions of Pakistan with high share of
customer.
2. ASKARI BANK one of the largest financial institutions of Pakistan with high share
of customer.
3. ASKARI BANK cash provision as percentage of non performing loans equal to
60%.
4. Highest share price Rs. 418 in month of January , 2009 in Pakistan banking
history.
5. There is a facility of transfer of funds across Pakistan through ATM and payment
of utility bills through ATM makes askari bank prominent.
Weaknesses
Marketing Promotions
Askari bank is not performing it advertising and sales promotions in the marketplace.
It is not also promoting ATM services.
Cash Withdrawal Limit
Askari bank has the limitation on the cash withdrawal of money from ATM.
Furniture and Fixture
The general out look and interior layout of branches are not as required
according to modern banking.
ASKARI BANK bearing up large burden in running those branches,
which are not producing any income but producing on adding expenditure.
ASKARI BANK is relying on its traditional sources of income it has not
taken benefit from innovation in banking like introducing retail banking or
consumer banking and using any type of scheme to generate more
deposits and producing more advances.
ASKARI BANK has only 160 on branches and only 75 branches
working on Symbol (Real online system). While from remaining branches
data gathering is time consuming, and not fool proof. Quantum of
settlement within different branches is pending because of this updating
daily record is becoming very difficult.
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In ASKARI BANK, most of the time merit not has importance in hiring of employees.
Such practices are black spot on the face of bank and resulted big losses and
fraudulent acts by ASKARI BANK own employees
Opportunities
Reorganizing efforts going on in the ASKARI BANK has
open many opportunities for ASKARI BANK to grow. ASKARI BANK current
management has boarder its vision. They have taken steps to improve customer
services, streamline internal procedure and creating a delectating climate for
technology initiative.
Technological Advancement
An introduction of technological advancement in its network branches create an edge
on other banks. This advantage draws the attention of potential customers. Askari
bank has obtained the software based in Linux of amount Rs.2 Billion, Which will be
launched very soon across its branches.
Facility for Illiterate people
Illiterate people which the askari banks customer don’t feel loneliness in the banks.
Because its employees provides guidance in urdu or any other local language. It
creates an edge over the customers.
Threats
• Economic Environment
Economic environment is a major threat to askari bank. For example in 2008
recession shakes every sector of economy , banking sector was one of them.
GDP growth and poverty alleviation in a different economic environment with
continued international sanctions.
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Law and order situation has a direct impact on how frequently or how many
people use banking lockers. Political instability in the country produces threats to
bank and investor seeking profitable transactions in the banks.
CONCLUSION
Organizations exist when two or more people work towards achieving common goals.
An organization can never be better than the people it hires. Hence we have to get
the best to be the best because the performance of the employees reflects the
company’s image and standing in the market. Out of the three M’s i.e. Man, Money &
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Machine, probably the human dimension is of the utmost importance. Hiring
employees is not the sole objective rather the primary goal
is to devise a tool that can help the organization attract, maintain, retain and motivate
them enough to give their best to the organization. Training and development is
therefore the first step towards success. Better the quality of the employees better
the performance of the company. An organization’s ability to meet the training and
development challenges provides an opportunity to make significant contribution to
the company. With better quality people executing the company’s operations the HR
department can create a competitive advantage for the company. Askari Bank views
specialization and service excellence as the cornerstone of its strategy. The people
at bank realize that innovation; creativity, reliability, customized, services and their
execution are they key ingredients for their future growth.
RECOMMENDATIONS
This is the fact that in this universe nothing is perfect. In every field of life there are
some pluses and minuses. But the best institutions are those, which learn from the
changing environment and competition. So it is necessary for them to keep them
update with the changing environment.
After analyzing the Training and Development practice following
recommendations is made;
For time being to share the burden of Training, more instructors should be
hired for the Training Wing.
Like Askari bank, wherever the Training Department is unable to provide
focused training for certain groups of staff, reputable external trainers are
invited to fill the gap, Askari bank should also outsource trainers in such
cases.
Marketing department is very active but the feedback or the follow up of the
customers should be improved.
If possible, bank should arrange externships for some employees in other
reputable banks, to bring up new ideas and more accuracy in Askari bank.
As every thing is computerized in Askari bank, the persons should be properly
trained in the computer systems.
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The ATM service should be provided 24 hours. Because customers feel upset
when most of the times the machine is out of order.
Audit should be held internally, rather there should be an audit department in
the branches to make audit on daily basis. This can become so, helpful as a
different banks are having this department of their own.
In 3600Feedback method, there are chances of errors due biasness and halo-
factor. To avoid this error, ‘Rater Error Training’ and ‘Rater Accuracy Training’
should be given to the employees.
If possible, bank should arrange externships for some employees in other
reputable banks, to bring up new ideas and more accuracy in Askari bank.
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