CHAPTER 1

INTRODUCTION
1.1 Introduction to the report
The internship report is compiled and submitted in the accomplishment of an
academic requirement for the degree of Bachelors' in Business Administration to be
rewarded by COMSATS Institute of Information Technology, Abbottabad.
The core objective of this report is to present a detailed insight of the internship,
carried out in the respective organization. I will be sharing my understanding and
experience being a Marketing student and the findings and learning that took place
during the six week period.
The report broadly covers the Marketing Strategies and practices being followed in
Askari Bank Limited and services and products being offered by the Islamic banking.

1.2 Purpose of the study

Banks plays a vital and very significant role in the economic life of a country, that's
why considered as the lifeblood of the modern economy. In this era, no one can
disagree with the value of banking in economy. They assist and advance trade and
provide a diversity of services that can't be imagined without banks. AKBL works
round the clock to deliver services that are matchless in the region.
The main apparent purpose of this study is to make students familiar of the marketing
practices being followed in different organization is Pakistan and to provide them
with the opportunity to do practical work in the relevant departments by applying the
required knowledge in real scenarios. It helps the students to grab the opportunity of
developing attitudes conducive to effective interpersonal relationships.
Another important and key feature of this practice is that the internee is rotated in
nearly all the departments within the organization. It presents a glimpse of every
department and its working procedures, as the time was limited for the duration of
internship to learn and study the bank in detail. It also offers students the chance to
analyze experiment and evaluate their interest in a particular career before enduring
commitments are made.

1.3 Objectives of the study

To explore marketing practices and gather and interpret appropriate

information in a productive way

To identify and explain various functions of the bank
To underline the products and facilities offered by AKIBB to its customers
To analyze the existing practices in the bank and find out new opportunities

through different techniques like SWOT

To get exposure and to develop the interpersonal communication skills
To apply the knowledge in the practical field

1.4 Background of study

These days, no one can contradict with the banking importance and is considered as
the lifeblood of modern economy. They accelerate and facilitate trade and commerce
providing range of services that is not possible without banks.
I have chosen the Askari Islamic bank Abbottabad for my internship because since
1991 Askari Bank has played an essential role in the development of Pakistan. Like
other multinational banks, it has followed a customer-oriented approach, in order to
provide quality products according to needs of the customers and stands as a role
model for other banks.

1.5 Research methodology

The methodology I have adopted relies on both primary and secondary data.
1.5.1 Sources of primary data

Formal discussions with Management of the Bank

Personal desk work and observations
Oral interviews of respective staff

1.5.2 Sources of secondary data

Annual reports
Manuals
Various relevant documents studies
Official bank Website
Previous internship reports

1.6 Limitations

For a corporate level organization, like Askari Bank Limited, where the operation
span is too wide, six weeks time is very limited to observe and research completely
the specialized and sensitive institutions. It does not let is to fully analyze and
understand the entire functionality of the bank, also the privacy policy limits access to
the organizational data and information that is termed as confidential. Because of the
bank tight and busy schedule and of the required staff complete information could not
be collected easily. During the study, I tried to include only the relevant material. This
study was conducted according to the objectives of the study.

1.7 Schedule of work

In the first and second week I worked in the account opening department observing
mainly the process for opening the account. I also examined the requirements
necessary for opening account and how the information is collected and analyzed.
During third and fourth week, I became aware of how to deposit and withdraw cash
from accounts and how mainly the cheques are written down. Also I worked in the
banking software, filling up KYC (Know Your Customer) forms containing
information of the account holder. Entry of school fees in banking system keeping
records of the transactions. In the last two weeks I worked on the completion of the
account opening forms of the cadets from Pakistan Military Academy. Checking of
the necessary stamps and signatures and completing the documents was also part of
the last two weeks task.

CHAPTER 2

INTRODUCTION TO BANK
2.1 Evolution of banking in Pakistan
On August 14 1947, the partition of the sub-continent came into reality and a Muslim
country namely Pakistan came into being. At this crucial time, country was facing a
number of problems including the shortage of financial institutions.
At the time of independence, Pakistan was very rich in producing various crops and
other agriculture products. There were few industries but working in a bad form but as
far as the commercial banking facilities are concerned, they were fairly well.
For a new country like Pakistan, having limited resources, it was not easy to
immediately run a banking system of its own. Therefore in accordance with the
provision of Indian Independence Act 1947, a specialist committee was selected to
study the issue.
The committee recommended that Reserve Bank of India should carry on functioning
in Pakistan until 30th September, 1948 to settle down the problem of time and demand
liability, homage, currencies, exchange etc between Pakistan and India. It was also
decided that Pakistan would capture the supervision of exchange control and public
debt from Reserve Bank on April 1 1948, and that Indian notes would be maintained
as a the legal tender in Pakistan till September 30 the same year. By June 30 1948,
number of scheduled banks offices in Pakistan turned down from 487 to only 195
because of the transferring of assets to India after partition by Hindus.
At that time there were 19 foreign banks having category of small branch offices and
only 2 Pakistani institutions, Australasia Bank and Habib Bank. To rebuild the
confidence of the people in these banks, Government then revealed the banking
companies ordinance, 1947.
Pakistan was further pushed into problem when the Imperial Bank of India closed
down most of its offices in Pakistan and refused to accept the token amount of
Government of Pakistan securities. Such conditions called for the control and
management of banking and currencies in Pakistan.
Government of Pakistan established the State Bank of Pakistan on 1st July, 1948, after
the order was promulgated on May 12, 1948. In order to make the situation
controlled, SBP addressed itself with the equally urgent task of creating and
developing the banking system of the country. To achieve this goal, it provided every
help and encouragement to Habib Bank to expand its network of branches and also

recommended Government for the establishment of a new bank, which could work as
an agent of SBP in areas where its branches are not present. As a result, National
Bank of Pakistan established in 1940 and by 1952 it became strong enough to take
over the agency functions from the Imperial Bank of India. In order to develop sound
banking, the Banking Company (control) Act was propagated in 1949, authorizing the
State Bank to manage the functions of banking companies in Pakistan. Addition to
this, SBP limited the opening of fresh branches by the foreign banks in big cities or in
coastal towns from where trade was being done with foreign countries, while
Pakistani banks were encouraged to open possibly as many branches within the
country.

2.2 Historical Background

Askari Bank Limited in Pakistan was incorporated as a public limited company on
October 9, 1991. It became operational in April 1992 and has since extended into a
nation-wide existence of 98 branches, support by the network of online ATMs. The
bank is listed on the Lahore, Karachi and Islamabad Stock Exchange. While capturing
the major market share amongst new banks, AKBL has provided superior value to its
shareholders. Its share price stayed roughly 12% higher than the average share price
of other banks during the last four years.
AKBL is the bank having its Operational Head Office in the twin cities that are
Rawalpindi & Islamabad, which have comparatively limited options as compared to
Lahore and Karachi. This has created its own disputes and opportunities, and required
to develop an apparent looking strategy in the area of marketing and human recourse.
Since commencement, the bank has determined on growth all the way through
improving service quality, technology and HR investment, exploiting its widespread
branch network including Islamic and Agricultural banking.
Corporate Social Responsibility is a fundamental part of the system the bank does
business. In order to accomplish CSR objectives, AKBL attempts to support public
concern by encouraging community growth and expansion through sponsoring
education, environment and sports, social service events and contributing in sociocultural activities.

2.2.1 Vision

To be the bank of first choice in the region

2.2.2 Mission
To be the top private sector bank in Pakistan with an international presence,
conveying quality service using innovative technology and efficient human resource
management in a modern and progressive organizational traditions of meritocracy,
upholding high ethical and professional principles, while providing improved and
superior value to all of our stakeholders contributing to society
2.2.3 Core values

Commitment- Passionate about customers success and delighting them with

quality of our service

Integrity- A unique investment, proving outstanding performance, return and

value
Fairness- Exemplary compliance, governess and business ethics
Teamwork- caring for our people and helping them in growth
Services- Dedication towards societal development and enhancement in the
quality of life

2.2.4 Corporate information

Lt. Gen Muhammad Mustafa Khan, HI (M) (Retd) Chairman - Board of

Directors
Syed Majeedullah Husaini - President & CEO
Lt Gen Naeem Khalid Lodhi, HI (M) (Retd) Director
Lt Gen Muhammad Haroon Aslam, HI (M),S Bt (Retd) Director
Mr. Qaiser Javed Director
Dr. Nadeem Inayat Director
Mr. Manzoor Ahmed (NIT) Director
Mr. Asif Reza Sana Director
Mr. Zaffar Ahmad Khan Director
Mr. M. A. Ghazali Marghoob - Company Secretary

2.3 Askari Islamic Banking Services

Islamic Banking was initiated under the brand 'Askari Islamic Banking', by opening 6
committed branches of Islamic Banking in key cities in the country. Askari Islamic
Banking unlocks the doors for Halal banking solutions. The goal is to build a wellorganized banking structure, supportive to economic integrity and wellbeing of
society associated with Shariah standards. Further development is intended with
enhanced capabilities for presenting products in compliance to the Shariah ideology.

An inclusive range of Islamic Banking products and services is being put forward in
the following areas, to meet the customer's demand of Shariah compliant banking.
It includes, Islamic

Corporate Banking
Investment Banking
Trade Finance
General Banking
Consumer Banking

Islamic Banking products have been supported and approved by the Shariah Advisor
of the bank. As per Shariah necessities, products and funds of Islamic Banking are
handled separately from the Conventional Banking side. All finances and resources
are attained, invested and shared in Halal approaches of investments, under the
management and supervision of Shariah Advisor.
2.3.1 Vision
Establish Islamic banking as banking of first to facilitate implementation of an
equitable economic system, providing a strong foundation for establishing a fair and
just society for mankind.
2.3.2 Mission
To be an Islamic banking, that offers a one-stop platform for innovative and valueadded products and services to the customers within the boundaries of Shariah, while
optimizing and enhancing the stakeholders value through an organizational culture
based on learning, equality, respect for individual enterprises.
2.4 Major Modes of Islamic Banking

Murabaha

Murabaha actually means a sale on mutually settled profit. Technically, it is a sales

agreement in which a seller declares his cost and profit. Both the parties negotiate on
the profit margin or rate on the cost. Islamic banks now have been adopting this as a
mode of financing.

Ijarah

Ijarah is a type of leasing in which a property is rent or leased by the leaser (seller) to
the lessee (buyer) in a manner that at the end of the agreed lease time, the lessee turns
out to be the owner of the property by acquiring it from the leaser during the lease
period or at the end of it at an approved sale price. In other terms, Ijarah or leasing is

the transfer of authorized and legal right for a concern that is rent in the case of
engaging of assets and wages in case of hiring people.

Musharakah

Musharakah means a relationship that is established under an agreement between the

parties by their mutual approval on the distribution of profits and losses in the shared
business. It is a contract in which Islamic bank makes available the funds, that are
merged with the funds of business enterprises. The profit is circulated amongst
associates in pre-agreed ratios, where the loss is to be accepted by every partner, fairly
and strictly, in the percentage to their individual capital contributions.

2.5 Introduction to AKIBB Abbottabad

To provide the banking facility to people of Abbottabad Askari Islamic banking
branch Abbottabad was established in 2008 supply bazaar Abbottabad. Mr. Syed
Amjad Bokhari is the manager of branch. AKIBB Abbottabad branch started its
operations smoothly and profitable and with the passage of time, management
improved its efficiency and reputation. The branch is accessible to all remote villages
and as well as the posh colonies of Abbottabad. The structure of AKIBB consists of a
branch manager, remittances, clearing and verification, bills department and cash
department.
(Shakeel Gohar (2010), employee Askari
Islamic)

2.5.1 Departments

Account opening department

The department is responsible for the opening

and closing of bank accounts. In the concern of
AKIBB, opening and enduring to retain any
account, the account Holder or the investor
would be clear by the terms and conditions
mentioned on the form of account opening. The diverse choices being offered in this
regard are

Current Account
Saving/ PLS Account
Basic Banking Account

1.

Current Account

Current account is the most regular account that is more preferred amongst business
concerns. There is no constraint or limit on the amount of withdrawal. Current
account facilitates the client to carry out cash transactions in a more competent
manner.
Features:

Current Accounts can be opened in with the minimum figure of Rs.1000/No Profit
No deduction of Zakat
Account close charges Rs.150
Online Charges Rs.100

2.

Saving / PLS Account

In Pakistan (PLS) saving account was commenced in January 1982. Individuals

wishing to invest their cash to get profit, continue to use this account.
Features

The minimum balance required to open the account is Rs.1000.

The profit on consumer savings will be paid half yearly.

Zakat Deduction

10%withholding tax on profit

No Service Charges for closing the account

Service Charges for keeping lowest Balance is Rs.50

Online Charges Rs.150


3.

Basic Banking Account

Basic Banking Account is opened in AKIBB with comparatively small amount

deposited in this account as compared to other accounts.
Features:

lowest amount to be deposited is Rs. 1000

First two transactions are free of cost

If balance is zero even after six months, the bank can close the Account.

2.5.2 Askari Islamic Deposit Products

Askari Islamic Bank continually and consistently strives to expand new Islamic
Banking Deposit Products to accommodate the growing requirement and needs of its
customers. Deposit Products include

AHSAN: Askari Halal Saving and Notice Account

AHSAN Munafa: Monthly profit payment on every day product base
AHIA: Askari Halal Investment Accounts- investment certificates with profit

payment options monthly, quarterly, semi annually and at maturity

AKIDA: Askari Khas Islamic Deposit Account
AITQAD: Askari Islamic Term Quality Deposit
AHCAMM: Askari Halal Certificates of Aasaan Monthly Mudarabah

2.5.3 Askari Islamic Consumer Products

Askari Ijarah Bis Sayarah for financing of new or used cars

Askari Home Musharakah for buying, building and renovating home
Investment certificates

2.6 Financial Information

AKBL's diversified infrastructure requires effective management, allocation of vast
financial resources along with long term strategic planning and annual budgeting.
Finance department controls the procedures designed to guarantee complete and

accurate accounting for financial operations and to limit the potential exposure to loss
of assets. Measures taken include physical controls, review by management,
segregation of duties and internal and external audit to the extent necessary.
AKBL has provided good worth to its shareholders. Its share price stayed
approximately 12% higher than the other banks average share price during the last 4
years. Year 2005-2006 witnessed development in business activities; this had
dynamically impacted the Balance sheet and Profit & Loss account. As on December
31, 2006, the bank was having total assets of 11,053,230 Pak Rupees, with more than
600,000 banking customers.
The profit during 2006 was before taxation was 3,346,855 and after taxation it was
2,249,974 as compare to the 2005 it was 2,021.996.
In the last 2 years, the Bank had Rs. 9.2 billion of equity and total assets of Rs. 155.1
billion, having more than 800,000 banking customers, serviced by 3,754 employees.

2.7 PACRA Rating

Askari Bank has the following rating from the Pakistan Credit Rating Agency Limited
(PACRA)
Short Term

A1+

Long Term

AA

Definitions by PACRA:
A1+: Obligations carried by the highest capacity for well-timed repayment.
AA: Indicates a very low expectation of credit risk. They specify very strong ability
for timely payment of financial dedication. This capacity is not considerably
defenseless to anticipated events.

2.8 CSR
At Askari Bank, Corporate Social Responsibility is an essential part of the mode it
does business, and is a crucial element of the bank strategy. As a responsible corporate
body, Askari bank always attempts to contribute to the culture and society in which it
functions and believes in generously giving back to the society by capturing initiatives
with the aim to offer the service that will help customers in meeting their financial
targets. In order to carry out the banks CSR objectives, it attempts to encourage

public interest and concern by promoting community growth and development

through the sponsoring of a large number of diverse events. Askari Bank takes part in
a variety of CSR initiatives that includes conferences/conventions, educational
proceedings musical evenings, sports events like squash, golf and other international
sports events.
Being a society conscious organization, Askari Bank actively donates to the less
fortune through different charity works for the wellbeing of the society. The bank
believes in the cause of a better environment and charitably sponsor events involving
tree plantations, flower fairs and festivals, spring social events and galas as well as
other development scheme for greener and clean Pakistan. Askari Bank also
habitually contributes to non-government associations that work on community
development and welfare and interest of the general public.

CHAPTER 3
FUNCTIONS OF THE MARKETING DEPARTMENT
3.1 Introduction

Marketing is social and managerial processes by which groups and individuals attain
what they want and need by producing and exchanging products and values with
others. The objective of every enterprise is to attract the customers, retain and grow
them. Enterprises first spots what creates value for each customer and then delivers
that value to him. Enterprises promoting relationships with customers develop a way
towards profitability. Increasing value for the customers by focusing and treating them
individually and differently will benefit the firm and this concept is at the heart of
CRM (customer relationship management).
"Satisfied customers are more likely to be loyal customers and loyal customers are
more likely to give the companies a larger share of their businesses".

3.2 Marketing Management at Askari Bank

The marketing strategies at Askari Bank are considerably in sync with the modern
Marketing strategies in the world today. Askari Bank is competing efficiently with its
competitors through the competent management.
The belief at Askari Bank is that
"The customer is the king".
The bank aspires to give innovative financial solutions to its customers, with the
protection that they are dealing with one of the well-built and strongest financial
institutions in the country.

3.3 Market Analysis

Askari Bank has stretched out into a nationwide presence having 98 branches,
including an Offshore Banking unit in Bahrain. A joint network of above 1,100 online
ATMs wrapping up all main cities in Pakistan supports the delivery channels for
customer service.
Branch manager and operational manger are partially involved in the marketing
efforts and get grant from head office to promote their promotional activities such as
social marketing, banner advertisement and public relations because there is no
separate marketing department in Abbottabad branch. When I see at the branch in
Abbottabad I see that the operational department follows the marketing activities,
supervised by the operational manager Mr. Shakeel Gohar. Every employee on its part
is responsible to meet the clients to convince them to open the account in the bank and

tell customers the details of different type of accounts and to apply the principle of
customer relationship management to attract the customers. There are following
functions performed by the banks marketing department

Focus on customers
Monitoring competition
Owning the brand
Finding and directing outside vendors
Creating innovative ideas
Communicating internally
Managing budget
Recognizing ROI
Setting, planning and executing the strategies

3.4 STP strategy

3.4.1 Segmentation strategy
Askari bank divides its market in geographical, demographic and Niche segments.
Niche segment of Askari bank belongs to Pakistan Army, and the volume of this target
market is too small as compared to the other markets. Because of the services being
provided by the bank, they are facing less competition.
In geographical segment the Askari bank splits its market, religion wise and in
different cities. As majority of residents of Pakistan are Muslims so it has started
offering both commercial and Islamic banking services for the target. Islamic banking
is being offered, free of interest rate.
In demographic segment it divides the market on the bases of different factors like
age, income, occupation, education and nationality.

Segmentation

Niche Market

Army

Geographic
Segmentation
Geographical
unit
Religious

Demographic
Segmentation
Age

Income

Occupation

Education

Nationality

Askari Bank offers numerous products for different target segments. In demographic
segment market is separated on the basis of age like students of 12-30 years and
retired people or pensioners of age ranges in 40-65 are offered with different kinds of
products. For students Askari Bank provides Askari special deposit account. With
respect to occupation, market is treated differently with several products like if
segmentation is based on agriculture then diverse kind of scheme is made available
that contains

Kissan Ever Green Finance

Kissan Tractor Finance
Kissan Aabpashi Finance
Kissan Livestock Development Finance
Kissan Farm Mechanization Finance
Kissan Transport Finance

3.4.2 Target marketing strategy

The focal point of marketing effort is people. The aim is to approach a subset of the
people who might be concerned in having the particular product that is the target
market. The target market of Askari bank is based on the objectives defined by the
organization that are desired to be achieved. Target market includes

All Army related institution

Kissan
Customer having deposit

Financial invertors
Religious groups interested in Islamic Banking
Customers who desires to purchase vehicle
All agriculture associated communities
Customers desiring for loans
Schools, colleges and business industries
Consumers interested to acquire on lease

3.4.3 Positioning
In marketing, positioning means the practice by which marketers try to build an
identity or image of its product brand, or organization, in the minds of the target
market. It is the 'relative competitive contrast,' a product occupies in a market as
supposed by the target.
Askari Bank has well-built positioning in the intellect of their target customers due to
its products matchless attributes, characteristics, features and better-quality service.
Top administration always makes an effort to distinguish their products and services
using diverse promotional schemes to communicate and correspond with the audience
and to form strong identity.
AKBL new slogan reflects customer service philosophy and provide them 24/7
information through online system and call centers and listen to the customer
complaints providing them with the solutions regarding bank issues (e.g. account,
credit or debit card). A well-crafted and finely made business positioning approach
can be utilized as an instruction for reviewing the suitability of all marketing plans
and programs, especially for endorsement, advertising and public relation events. It
will make sure that business image is reliable to the targeted end users and aids to
construct an enduring, outstanding significance to sell and promote business products.
The positioning of Askari bank towards the customers is that it is one of the renowned
banks that provides convincing and dynamic environment to their customers
maintaining a unique image. For example Askari rupee traveler cheque is considered a
secure way to transfer the money from one particular place to a further location and
keeping strong identity in the customers mind that a product has some quality
attribute with security that creates superior value.
To create a well reputed positioning of the organization and its products and services,
AKBL uses different marketing strategies to clearly and effectively convey their

message to customers that includes advertisement through several media channels,

sale promotion, personal selling and publicity.

3.5 Marketing mix

Marketing mix consists of 4 Ps product, price, place and promotion. In context of the
marketing strategies followed by the bank, these 4 marketing mix tools will be
discussed separately.
3.6 Product
According to the firms objectives and goals defined, it selects the segment that fits
well with their mission of promoting their business to the audience interested in their
services and products.
Whenever any fresh product is initiated and launched by the Askari bank, scheduling
and planning and development process is executed from the of head quarter located in
Rawalpindi and then after making conclusions about the value added features
considered necessary to sell their products and services to increase the profitability,
the selected scheme is launched in all the branches of the bank throughout the
country. Before the launch or update of any new product or, the upper management
continuously observes the market needs and requests and plans the product that can
achieve the organizational goals and objectives.

New Product Development Process

The management is concerned with few stages when initiating any new product or
service

The foremost two stages, new product development strategy and idea
generation, provide a focal point for making new-product ideas and a base for

assessing them.
Screening and evaluation stage enables the top management to screen out the
idea that are feasible and fits with the financial resources and the organization

objectives.
The next three stages, business analysis, development and market testing, deal
with the analysis of the business and market needs and then development and

test marketing of the generated idea as a product.

Last stage is of the commercialization that includes how the newly developed
product is to be introduced in the market using different marketing tools and
strategies designed by the marketing department of the Askari bank from the
head quarter.

The product

must persuade the key financial standards of the bank

must be well-suited with environmental and cultural values
must match the companys marketing makeup and objectives
should furthermore be well-matched with the production potential, satisfy the
legal necessities, and fit with company goals and objectives

Product management
Product management is an executive lifecycle task within a company, dealing with the
setting up of a product or products and its development and marketing at every stage
of product life cycle. Product management and product promotion are different yet
balancing and complementary efforts with the objectives of maximizing sales
revenues, profit margins and market share. The function of product management
wraps many actions from strategic to operational level and fluctuates based on
organizational structure. When a product reaches the maturity stage of the product life
cycle, the management tries to maintain this level as it provides the peak of sales and
returns. The branch manager of Askari Bank tries to manage the product by
continuous innovation according to the customer needs and provide their best to their
customers with a product environment to achieve their goals and objectives.

3.6.1Askari Islamic Consumer Products

Askari Ijarah Bis Siyarah for financing of new or used car

Askari Home Musharakah for buying, building and renovating home

Investment certificates

Askari Ijarah Bis Siyarah

Ijarah is a rental contract, under which the right, to use an asset, is transferred to the
user on pre-agreed provisions and conditions. It is a Shariah compliant approach of
finance, implemented by Askari Islamic Bank to meet the desires of car financing by
its respected customers.
Askari Islamic Banking deals in all sorts of new and locally assembled, as well as
imported cars. Terms and conditions being offered are elastic, with rapid processing
time. Moreover, in order to boost up the customers ease and convenience, the bank
offers family income assessment plan, where its esteemed clients can get benefit from
Ijarah Bis Siyarah facility for more than one vehicle.
In Ijarah, supposed added charges are taken by the Bank if caused by any delay in
rental payment(s) by the purchaser, that are exercised for charity intentions, rather
than adding into the profits and earnings of the bank, as done in case of conventional
lease. This impression of charging penalty is officially approved by the modern
Shariah scholars to permit the banks to shield themselves against the habitual
defaulters.
If the vehicle gets stolen or damaged in any mishap or calamity, contrasting from
conventional lease, Ijarah rentals or buying party will not be charged, and security
will be funded back in such case. Once the client productively pays off the whole
Ijarah payment, bank gives him/her the certainty to turn out to be the holder of the
vehicle, against the security deposited already with Askari Islamic Banking.
Salient features:

Timely processing
Facility for buying more than one vehicle
Facility of income valuation plan
Low security deposit
Competitive profit charges
No hidden charges

Basic Eligibility Criteria

A Pakistani National between 21- 60 years

Getting at least two times more than the banks monthly Car Ijarah rentals
Being in business for at least one year

Askari Home Musharakah

Askari Islamic Banking puts forward Shariah compliant home financing that
facilitates the purchasing, constructing, improving and transferring of the property
through Diminishing Musharakah. Bank offers a well-situated system to buy ones
own home with the financing of 85% of property cost, up to Rs. 50 Million.
Working

Joint possession is formed in the assets between Bank & customers on the root

of the Musharakah Agreement.

The share of the Bank is divided into parts or units that are then given to the

client/consumer on rent.
Client assures to buy banks share over the term of transaction.
Client then purchases the units monthly and ultimately becomes the possessor

of the property.
Rental sum is adjusted in accordance with the banks share left behind in the
property.

Features and benefits

Shariah compliant
On time processing
Competing rentals
Highest financing limit: Up to Rs. 50 million
3 to 20 years as financing tenure

Eligibility criteria

A Pakistani National between 21 to 65 years.

Earning atleast twice more than bank monthly Ijarah rentals.
A self employed entity with atleast 3 years of business track verification.
Income authentication/documents mandatory.

Investment Certificates

A S KAR I I SLA MI C IN VES TMEN T C ERTI FI C ATES

Features
Details
Product name
Askari Islamic Investment Certificates (AIIC)
Product type
Term Deposit
Investment amount
Rs.50, 000/- &
above
Tenor
One Year
Last declared profit rate Rs 50,000 999,999 @
8.04% per annum
Rs 1M - 99.9M
@ 8.05% per
annum

Period of profit rate

announcement and
distribution
Target customers
Unique Features

Monthly

Periodicity of Profit
Distribution

Individuals, Business projects, Government entities etc

One year maturity with profit payments per month

Profit rates declared on monthly basis

Finances invested in Halal means under Shariah advisors

management

Premature withdrawal decision available

Issuance of ATM or Visa debit card (only for individual

account)

I-Net Banking service ( only for individual account)

SMS alerts for cash withdrawal through ATM and I-Net

Banking transactions ( only for individual account)

Online funds transfer

Local payments

Same day clearing and Inter-city clearing

Outward cheque returned un paid in clearing

Free Value Added Services

Duplicate account statements

Askari Islamic Bank's Investment Certificates not just provides the additional security

on investment and monthly return to the customers and these are flexible and
negotiable and can be moved to some third party. Investment Certificates are able to
be issued for a phase of 3 months and profit is to be paid on monthly basis through
pre-printed coupons.
(www.askaribank.com.pk)
3.6.2 Askari Islamic Deposit Products
Askari Islamic banking continuously and consistently with time endeavors to build up
new Islamic Banking Deposit Products to provide according to the rising needs of its
customers. Deposit Products includes the following list

AHSAN: Askari Halal Saving and Notice Account, with a monthly profit

payment
AHSAN Munafa: Monthly profit payment on day by day product basis
AHIA: Askari Halal Investment Accounts- investment certificates with

profit payment options monthly, quarterly, six monthly and at maturity.

AKIDA: Askari Khas Islamic Deposit Account
AITQAD: Askari Islamic Term Quality Deposit

Product Name

Type

Tenors

Profit Calculation

(AHSAN)

Saving

NA

Average Monthly

Saving

NA

Profit payable on
monthly balance from
6th till last date of each
month

Business
Enterprises and
Individuals

Curren
t

NA

NA

Business
Enterprises

Curren
t

NA

NA

Low income
individuals

(AIIC)

Term

3 month5 years

Monthly

(AKIDA)

Term

3 month5 years

Monthly

(AITQAD)

Term

3-7 years

Monthly

(AHCAMM)

Term

1
monthsNo limit

Average Monthly

Individuals

Special
Musharakah
Certificate

Term

6 months

Average Monthly

Large size deposits

Askari Halal
Saving Account
Askari Islamic
Current
Account
Askari Basis
Banking
Account

Target market
Business
Enterprises and
Individuals

Individuals,
business
enterprises, Govt.
entities
Individuals,
business
enterprises, Govt.
entities
Pensions Funds
and Individuals

AHCAMM: Askari Halal Certificates of Aasaan Monthly Mudarabah

3.6.3 Services
Internet Banking Services

In pursuance of the mission to present the most up to date service to the customers,
the bank offers banking through internet.
Important Features

Balance inquiry
Transferring of funds
Password modification
Payment of school fee

1.

Electronic Bill Payment Services

It has been the banks effort at all times to set up the products and services custommade according to the requirements of its valued customers. Now customers can pay
their utility bills all the way through:

2.

ASKCARD (Askari Debit Card),

Nationwide Askari bank's ATMs
Internet banking facility and call center
Cash Management Services

Askari Cash Management Services aims to competently direct the accounts receivable
collection of middle and large corporate bodies. While this service lends a hand to the
corporate beings to develop their liquidity, due to the banks well broadened and
extended branch system and network.
The service at first and foremost aspires at giving clearing, assortment and
cash/transfer ability to corporate, under one asset focus, that will handle the course of
action through the extensions and gives enough exposure to the business clients, on a
variety of features of their accounts receivable portfolio, consistently.

3.7 Price
Pricing is another P amongst the marketing mix including product, promotion and
place. Price is the single income generating constituent among the 4Ps, the rest being
the expanse focused.
Askari bank applies diverse pricing strategies for dissimilar newly developed products
and services to attain the organization monetary goals. Before opting for an
appropriate price for a product, the marketer reviews the objectives and discuses with
the top management. The more apparent the company's objectives are, the easier it
will be to set price.

3.7.1 Objectives
Listed below are the potential and achievable pricing objectives

Survival in the competitive environment

Maximum present profit
Utmost market share
Product quality leadership

As the management set its marketing objectives to position the product as an

innovative one, then the prices for these products and services are set according to
their initial costs and profit margins.
Following steps are being followed in the head quarter of Askari Bank that ultimately
guides Islamic banking to promote their products with such prices.

Choosing the pricing goals

Shaping the consumers' demand
Approximating costs
Analyzing opponents costs, prices and offers
Selecting a pricing technique
Deciding on the final price

3.7.2 Nature based pricing

AKBL see the nature of the product and charge price accordingly. For an innovative
and updated product involving legalities, it charges higher margin before launching
the new product. The top management observes and analyze the demands of products
and estimate its costs by analyzing the competition i.e. competitors costs, prices and
offers. After noticing the competition, the bank then chooses a pricing strategy
according to company objectives. Askari Islamic bank has different products and
services; each of which is based on Shariah compliance, capturing its own target
market and fulfilling expectations of the customers. Price is the only key which
generates the revenues for the bank to achieve its financial objectives.
3.7.3 Profit rates for different products

Askari Halal US Dollar Savings Account (profit rates % per ann.)

Average Monthly
Balance (USD)

April 2014

March 2014

1 - 999,999,999

0.20%

0.24%

Askari Halal Savings and Notice Account (AHSAN)

Monthly Profit Rates (% per annum)

Average Monthly
Balance (PKR)

April 2014

March 2014

Upto 99,999

4.32%

4.42%

100,000 999,999

4.32%

4.42%

1,000,000 9,999,999

4.55%

4.65%

10,000,000 49,999,999

4.78%

4.88%

50,000,000 99,999,999

4.78%

4.88%

100,000,000 249,999,999

April 2014

March 2014

0.18%

0.19%

Askari Halal Savings Account (AHS)

Profit rates (% per annum)
Average Monthly
Balance (PKR)

Askari Halal Savings and Notice Account (AHSAN) Munafa

Average Monthly
Balance (PKR)

April 2014

March 2014

Upto 9,999,999

7.00%

7.00%

10,000,000 49,999,999

7.28%

7.44%

50,000,000 99,999,999

8.10%

8.10%

100,000,000 249,999,999

8.95%

8.95%

250,000,000 499,999,999

8.19%

500,000,000 & above

9.00%
9.00%
(Askari Islamic Monthly Profit Rate Circular 2014)

3.8 Place (Distribution)

An organization that is concerned with the practice of making a product or service
accessible for use or consumption by an end user or a business customer, applies an
efficient and workable distribution strategy.
AKBL has 150 branches through which it offers services to its clients. The
distribution channels are its employees who deal with the customers directly in any
situation. Whenever a new or updated product is launched by mutual consensus of

Askari bank top management, to make the product available to the end user it is
distributed to its all branches. Askari bank has around 150 branches from where
customers can avail their desired product or service with access to the related
information. A mutual network of larger than 1,100 online ATMs wraps up all the
chief cities in Pakistan supporting the delivery channels for customer service.
3.8.1 Selective distribution
Askari Islamic Bank uses selective distribution strategy having fewer locations
selected for their services. It has only a few outlets in the geographical areas to
provide the facilities as there is only one branch of Askari Islamic Bank in Abbottabad
in Supply area that is near to the main Askari branch as well.
Advantages

Separate identity
Better market exposure than exclusive distribution
More control with less cost than intensive type
Improve products likeness & tolerate high markups
Supports loyalty and enhance forecasting

Disadvantages

May not cover the market sufficiently

Complicated to pick that can go with the requirements

3.8.2 Branches all over Pakistan

Islamic branches north region (KPK and AJ&K)

Abbottabad
Chillas
Islamabad
Kohat
Peshawar
Rawalpindi
Sihala
Wah Cantt

Islamic branches south region (Baluchistan and Sindh)

Karachi
Quetta
Hyderabad

Islamic branches central region

(Punjab)

Faisalabad
Gujranwala
Gujrat
Jalal Pur Jattan
Lahore
Multan
Sialkot

3.9 Promotion
Promotion is a type of business
communication that makes use of diverse means to get in touch with the target
audience through a definite message in order to realize and manage specific executive
objectives. More or less all the organizations, whether working for profit or of nonprofit class, must be involved in some shape of promotion.
Under the impression of Integrated Marketing Communication, AKBL attempts to
grow a united promotional tactic connecting with the combination of numerous
various types of promotional tools. The objective of the promotion strategy is to
attract the clients to buy the banks product and, in nearly all cases, to retain and keep
a loyal and long-term customer.
The purpose and objectives for marketing promotions of AKBL may include

Building responsiveness and awareness

Creating interest
Providing information
Encouraging the demand
Strengthening the brand
Advertising

3.9.1 Promotional strategies

3.9.1.1 Advertising
The main source used by AKBL is advertisement that engages non-personal,
typically paid promotions mostly by means of mass media to convey the marketers

message to the target. Traditionally advertising has caught up as a one-way

communication process with small feedback opportunity for customers experiencing
the advertisement. The introduction and advancement of technology, in particular,
internet has augmented the alternatives that allow the final users to respond with the
quick feedback.
Advertising in News Papers and Television is used as a marketing tool by Askari
Bank. However it is often used when a new product is introduced or if any changes in
the existing products or in the rates is
done.
3.9.1.2 Bill Boards
Another source used by Askari bank to
convey message is billboard placing
provided with the information needed to be communicated. In the main urban areas
near the school/colleges, airport and high traffic spots, the bill boards are placed to
convey message.
3.9.1.3 Broachers
The Bank publishes various brochures for the general guidance of the customers.
These include the Schedule of Bank Charges, information of the major products,
VISA Card Information, and Savings & Term Deposit Information etc
3.9.1.4 Personal Selling
Personal selling is also a norm at the Bank. The branch has well learned sales
executives and officials capable of communicating their product message well with
the clients. Personal selling is used both for attracting individuals and corporate
clients.
3.9.1.5 Internet
Askari bank widely use internet as a promotional tool to
convey the message to the target audience. All the
relevant information related to products and services and
the organization as a whole is available on their official
website that is updated frequently with the new data and information.

3.9.1.6 Social marketing

AKBL has made charitable contribution and donation in the area of sports, traditions
and society, and scarcity, woman & child wellbeing & medical science, human
development and maturity and technical research. AKBL sponsored different
international sports tournaments like squash and golf including many others, in which
professionals from all over the world participated. The bank has also contributed
towards the awareness programs for AIDS, water conservation and blindness and has
promoted the cause on international forum by co-sponsoring the first interactive
encyclopedia of Pakistan.
3.9.1.7 Public Relations
The most popular tool used by the banker and manger to increase their deposit is to
create awareness among the customers to attract new ones and to draw long term
profitable relationships to retain the existing customers. Keep long term relationships
helps in spreading a positive word of mouth and a positive positioning of the bank in
the consumers minds.
3.9.1.8 Publicity
This style of promotion uses third-party basis, and
mainly the news media, to illustrate a constructive
cite of the company or product without straight
payment to the information publisher like if media
covers any tournament that is sponsored by AKBL is actually the publicity of the
bank.

3.9.2 Customer Service

Customer Service is actually facilitating the customers before and throughout a
product/service purchase. Customer service is a progression of activities considered to
increase the level of customer satisfaction and pleasure that is, the reaction that a
product or service has met the customer perceptions and expectations.
3.9.2.1 Process of developing relations with customers
Customer service department is concerned in developing a sequence of dealings and
actions intended to advance the intensity of customer liking to formulate long term
and profitable relations with the customers. The relation is based on the

product/service quality and features provided by the bank to their customers. Askari
bank follows the principle of customer relationship management that includes some
considerations like
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

Keeping regular communication with customers

Responding rapidly to their needs
Satisfaction on product as well as usage aspects
Avoiding ambiguities in product information
Making products available
Delivering advices
Giving special attention
Protecting customers rights
Being visible and available all the time for customer service
Providing good and dynamic environment
Considering customers a part of the organization and treating accordingly

3.9.2.2 Relation dependence

The relationship between the organization and customer depends on the satisfaction
level by the organization products and services. As the demand of the product or
service comes from the customer side so if the customers expectation exceeds the
performance of the product then it will be resulting in the repeat purchases and
customers loyalty building otherwise customer will be switched to any other feasible
substitute.
3.9.2.3 Techniques of retaining the customers
it is a fact that has been experienced everywhere that if costs five times more to
acquire a customer then to retain a customer as customer is the king and organizations
cannot survive ignoring customers.
Besides making efforts to attract new customers, marketing department of Askari
bank as a whole is striving to retain and build long term profitable relationship with
its existing clients and also trying to attract new customers as well using the existing
ones by spreading positive word of mouth. The key towards successful customer
retention is providing the customers with superior customer value and satisfaction.
Because without this element in the changing demographics, slow-growth economy,
more difficult competitors, and congestion in many industries customers are being lost
with a respective decrease in the market share.
Askari Bank satisfies and fulfills their customers needs and solves their problems by
actually understanding their requirements and expectations from the products. The
bank has provided the users with a toll free number where they can call and register

their complaint online or can get any information needed ranging from activating their
debit or credit cards to account problems etc.
3.9.2.4 Techniques of attracting new customers
To attract a new customer is actually to communicate the message their product or
service is delivering towards the target market. It is always important for every
company to acquire potential customers since the main focus of every organization is
to make maximum profits each month.
The strategy used by AKBL for acquiring new customers by providing their
organizations services information and detail is via advertising that is one of the most
widely used method to constantly keeping themselves alive in the consumers minds
and making them aware. The bank also uses different promotional techniques as
mentioned in the promotion part, to convey their message clearly and effectively so
that no ambiguity can be left.
By getting the feedback and entertaining the complaints by the users, the bank alters
and introduces new products to attract the new customers according to their needs and
expectations.
Now the banking trends has been changed a lot that enables Askari Islamic Bank to
create new dynamic and work-friendly environment that convinces the customers to
use their services. It also is beneficial for the people who want to get hired in the
bank. Askari bank has captured a wide target market ranging within all the sectors
they have targeted in their objectives due to a good working environment and
increasingly taking edge over competitors like National bank of Pakistan and others.
AKBL aims to expand their business worldwide with a strong image in the mind of
consumers, ultimately profiting the organization in monetary terms as well as in the
reputation.

CHAPTER 4
SWOT ANALYSIS
4.1 SWOT Analysis of AKIBB
SWOT is known for Strengths, Weaknesses, Opportunities and Threats. It is a useful
tool, providing support for analysis of organization. It is a familiar approach to
compose considerations in terms of internal and external settings of the organization
and to devise policies by examining its internally identified strengths and weaknesses,
and externally known opportunities and threats.
4.1.1 STRENGTHS

Qualified and Experienced Staff

During the research, it has been observed that the staff/personnel of the organization
is qualified and experienced. Many of the bank officials have got advanced
knowledge and experience in the fields of management, banking law and practice.

Good PR with Customers

The relationship of the manager and other staff in the organization is really good with
the customers, which results in a strong goodwill and loyalty of the customers towards
the organization.

Job Satisfaction at All Levels

Job satisfaction is one of the important factors for the employees to be motivated. The
people in the organization under consideration were found highly satisfied with their
jobs.

Quarterly Performance Appraisal

Performance appraisal is the way by which one can evaluate the employees
performance; it results in the enhancement of the organizations overall performance.
The performance appraisal is done on quarterly basis in this organization, which
results in better performance.

Friendly environment

The environment of the organization is very friendly. People over here are very
cooperative, not only with the customers but among themselves as well.

Competent senior management

The senior management in the organization is very much competent and experienced;
successfully handling different internal and external affairs. The managers are fully
aware of the recent managerial concepts and are able to deal with any type of
scenario.

Computerization

The main strength of Askari Bank is that all of its branches are fully computerized
having latest software available to keep the records of their customers account and
other important information up-to-date. It reduces manual work and provides good
customer services.

Largest Private Bank

AKBL is one of the leading private banks with deposit support of around Rs.167.68
billion/- showing steady growth over the time 1999 and with many online branches in
major cities of Pakistan.

Competent Staff

Strength of Askari Islamic Bank is that it has a well qualified and capable staff of
performing the task because of their expertise and training in the field.

Customers Feedback

Customers are allowed to give suggestions regarding banking services. If there is any
complaint by the customer, the bank authorities consider the reasons for complaint.

Complaint monitoring system is excellent at Askari Islamic Bank that shows bank
values more to its customers.

Information System

The Bank has invested heavily in technology resources, which has allowed bank to
develop one of the most comprehensive and advanced system that helped Askari bank
to achieve an online status via real time facilities and features available through
nationwide network. With the team of highly qualified professionals, bank is able to
use the system resources to provide customers with complete account of their
transaction on daily basis.
4.1.2 WEAKNESSES

No HR department at branch level

Human resource department is one of the foremost requirements of any organization

of this age. The organization under consideration, though contain a HR division at
headquarter but there are no sub divisions at the provincial or branch level. So when
different problems related to HR are raised, they are left unaddressed.

Centralized decision making

The decision making in the organization is completely centralized which results in the
loss of confidence, motivation and sense of empowerment for the employees.
Lengthy recruitment process
The recruitment process is quite lengthy which can discourage the new comers. So,
there is a need to shorten the whole process.

Lack of marketing efforts

The bank does not support its corporate identity and image, services etc in a
competitive way through advertising to create understanding among the potential
customers. Hence it lacks in the necessary marketing effort.

Traditional ways

The bank still has traditional ways of operations in this advance technological
environment. For example account opening registers, manual checking of vouchers.
Although the bank has computerized accounting systems, but still bankers make
entries in accounting registers manually.

Individual differences

In Askari Islamic Bank the individual difference has strong impact on the
organizations performance due to wrong criteria of selection of employees. So with
the passage of time individual differences started increasing which has demoralized
the goodwill of the organization.

Media

The advertising media used by the bank for publicity include mostly newspapers and
journals. The most powerful media to be used is TV through which people around the
world can get instant information about new products and developments in AKBL.

Equipments

There is very less availability of sophisticated and updated equipments in branches

and lengthy credit processing and documentation procedure.
4.1.3 OPPORTUNITIES

More qualified people in the market

Due to the increased interest of people in business field, many business institutions
are established producing a fine lot of qualified and competent business professionals.
So, the organization under consideration can hire more qualified people from market.

Effective utilization of internal human resources

People working in the organization are more aware of the norms and values so these
employees can be utilized within the organization whenever required.

Training can enhance the employees skills

Training and development is one of the important functions of human resource

management. If the staff of the organization are properly trained and developed they
will add to the value of the organization.

Feedback

Customer feedback on a range of diverse products and accounts has in actual fact
enhanced the bank performance and encouraged the environment for added future
policies.

Foreign remittance

Foreign remittance is an additional area as existing worldwide control system over the
transfer of money through unlawful channels has facilitated the spot for the banks to
have a proper check and balance on the functionality.

Hiring graduates

There is a huge set of MBA graduates who can be employed to realize

professionalism on its organizational ethnicity and culture.

Increasing product range

Increase the product range to fulfill customer requirements and ATM network, AKBL
can expand its 24 hours cash facilities to other cities of the country in order to meet
growing market demand.

Foreign operations
Due to competent and well-informed management group, AKBL can in addition
progress well and expend its foreign functions successfully.

Leasing business

Increasing need and potential of leasing in Pakistan provide AKBL a possibility to

take advantage of its proficiencies and aptitude in leasing business as well.
4.1.4 THREATS

Increase in Competition

The increasing competition at local, national and multinational level also lower down
the profitability of the bank and compelling the bank to use a large amount of funds to
meet out competition. Meezan bank and Dubai Islamic are major competitors for
Askari Islamic bank.

Good job opportunities outside

The other organizations of similar nature are offering more salaries and benefit
packages to their employees. So, there is a threat to the organization that their current
employees may leave it for better opportunities and salaries.

Uncertainty about future change

An uncertainty about the future changes has been noticed among the employees of the
organization, it results in dissatisfaction and de-motivation of the employees, which is
a serious threat to the organization.

Better HR techniques

Other organizations of similar nature are using better and recent HR techniques, so
they have got an edge to facilitate their employees whenever they need. It can be a
severe threat to this organization as their employees would not be satisfied of their
own organization which will affect their performance.

Political instability

Political instability is also threat for the bank because instability leads to lower
business. The same situation is prevailing in Pakistan.

Inflation and unemployment

In our county, the rate of inflation is increasing along with the unemployment. So due
to increase in price of the products, the savings of the nation is decreasing with
passage of time. So it is threat for the banking sector. In the future, the deposits of the
bank will decrease.

Advancements

Intensifying of global technological progressions and adaptation of fresh mode of

management in banking area is a threat.

Promotional campaigns

Extensive promotional campaigns run by competitors.

4.2 Major competitive advantage

Askari Islamic bank Abbottabad is majorly dealing in providing services for the army
people. Account openings of the new cadets joining the army and the related facilities
are being provided by the representatives of Askari Islamic bank in Pakistan Military
Academy KAKUL. Rashid Saleem Paul and Hafiz Zulqarnain are the representatives
by the bank as ATM Booth In charge. Askari Islamic bank is the only bank in the
Abbottabad region facilitating the military academy in the major sectors.
They are providing their services in off timings as well as directed by the bank. They
are responsible for the working of the ATM machines and the availability of the cash
for the people using ATM.

CHAPTER 5
CONCLUSION AND RECOMMENDATIONS
5.1 Conclusion
Banking is the business that is directly related to general public and an employee can
be evaluated by the appraisal from the customer. This practice will increase the
precision of performance validity as well as will improve the behavior of employees
with general public.
After spending six weeks observing Askari Islamic bank, interacting with the
employees, getting their views and examining the functionality and structure of the
bank, I have come up with some outcomes and suggestions that I think are needed to
adopt that will definitely improve few weaknesses, in my view, observed in the bank.
Askari Islamic Bank is financially a strong bank providing pure Islamic services to its
customers. It is now extra powerful and confined with better-quality operational
abilities, wider allocation and superior intensity in human resource skills. With
stronger brand image and firmer footings the bank has been competent to influence its

infrastructure to originate new products and services according to the Shariah

standards. Askari Islamic bank is performing well in almost all the areas and has the
ability to make optimal use of the available resources, it is adequately capitalized to
expand its operations, and net interest income earned by the bank on its earning assets
has also been increased with the improved quality of loaning by the bank in 2013. The
staff of the bank is competent and cooperative and helps me in understanding the
functionality of the operations. In spite of their tiring and tough working schedule
they answered every query and let me perform the tasks with them.
On the other hand different shortcomings were also there in the bank and its
management that has somehow de-motivated the employees like centralized decision
making hence leaving very little space for the workforce to draw their suggestions and
proposals, lengthy recruitment process and more external recruitments on the posts
instead of promoting their own people, less promotional activities and efforts that
does not helps in drawing attention of the potential customers towards the bank and its
services and many others shortfalls as well. While considering the present scenario
and observing the departments of the bank very closely, efforts have been made to
give workable recommendations.

5.2 Recommendations
5.2.1 Employee empowerment
Bank identifies its employees as a major talent and key contributor to the act of the
organization and greatly emphasize on the desirability, progress, and enthusiasm of its
employees. Delegating powers within the department in-charges to the possible extent
will reduce the workload on managers and also employees will feel motivated
performing their tasks well.
5.2.2 Generalization of Procedures
The procedure for account opening should be simplified. Account opening form
should be self-explanatory including translation in Urdu for those customers who are
not well educated and do not have a good understanding of English.
5.2.3 Human Resource Department
The significance of human resource cannot be deprived of in any organization. In case
of banks it is the most priceless asset, as bank is the most sensitive organization and to

be in synchronization with this understanding, want for an appropriate and developed

human resource is felt deficiently.
5.2.4 Basis for Promotion
The promotion approach must be rigid but obvious and crystal clear that no one could
be promoted on false standards and must follow the criteria of required qualification,
experience and performance.
5.2.5 Development of Managerial Leadership
The need of administrative skill is to a great extent more important in banks as it
makes affirmative contribution towards efficient consequences. AKBL should also
focus on the development of managerial leadership skills to evade deficiencies in the
management by being appropriate in implementing the modern style of management.
5.2.6 Comprehensive training programs
AKBL-IBB should conduct meaningful courses, workshop and seminars with the aim
to improve the staff knowledge. The present conventional training programs have to
be prepared more wide-ranging and reinforce with addition of computer education
process. Employees using software and management information system in the bank
are also to be trained with the updated knowledge to produce effective results.
5.2.7 Incorporated marketing strategy
As in this branch of Askari Islamic bank in Abbottabad region there is no separate
marketing department so all the employees working in different departments should
be involved in the marketing activities rather than just performing their own
department assigned tasks. This can be done through improving their personal relation
skills of visiting the potential customers and convincing them to use their services
wherever possible.
5.2.8 Change in Appraisal System
A transparent and pure appraisal system desires to be put into practice in true logic in
the bank. The drawbacks that are apparent like favoritism and nepotism etc., needs to
be found and rooted out and the concept and traditions of eventual meritocracy in
evaluating the employees is to be understood and adapted.
5.2.9 Guidance for Risk Management
Exclusive compulsory training in relation to all the possible aspects like financial
administration and managerial regulation is necessary to be planned and developed to
achieve

 Risk evaluation ability

Accepting all authorized matters
Capability to extend and suggest strong strategies when needed
5.2.10 Effective Management
When a company happens to decline, it become incapable to pay back the loans it has
taken that result in such loans, becoming bad debts. To stay away from this, it is the
dependability of AKBL, to make sure that the company to which mortgage is
approved and certified have the benefit of fine management proficiencies and
reputation. This can merely be affirmed, if the bank audits and evaluates the
administration of borrowing party by dealing with

Management style

Financial measures and certification being followed by workforce

SWOT analysis

Duration of influence and accountability

Employees decision making expertise

5.2.11 New features

The bank should plan to improve its Internet Banking Services and ATMs with new
and value added features like inter-branch funds transfer and the payment of utility
bills.
5.2.12 Marketing activities
AKBL should increase media usage like press coverage and advertising to well
market its corporate as well as Brand image and for more promoting their products
and services to attract a wider market. The marketing guidelines and strategies must
be evidently written and communicated to all staff members and also to the clients for
providing them with the accurate information.
5.2.13 Automation
The future and major focus of Askari Islamic Bank should be to improve the
automation and computerization of the accounting processes to enhance the quality
and effectiveness of MIS and to increase the awareness of its effectiveness among
employees.
5.2.14 Islamic banking

Islamic banks need to re-evaluate their communication strategies and increase efforts
to ultimately increase their market share and to educate the community about the
creative understanding and essence of Islamic banking and its usefulness.
5.2.15 Coordination within bank
The coordination among employees of different levels and within different
departments should be improved and encouraged. The coordination and
communication among all the levels of management also needed to be enhanced.
5.2.16 Merit based hiring
All placements and hiring should be on merit, i.e. competence and performance,
without personal bias and external influences and everyone should be promoted on the
basis of work performance, required qualification and experience.
5.2.17 Motivation
Better efforts and performances should be rewarded fairly in order to encourage
schemes and enhance motivation level of employees. This will help in team building
in turn that will encourage employees to perform even better.

Table of contents
Acknowledgement .............................................................................................................
Abbreviations.......................................................................................................................
Executive Summary............................................................................................................
CHAPTER 1.......................................................................................................................
INTRODUCTION.............................................................................................................
1.1 Introduction to the report...............................................................................................
1.2 Purpose of the study.......................................................................................................
1.3 Objectives of the study..................................................................................................
1.4 Background of the study................................................................................................
1.5 Research Methodology..................................................................................................

1.5.1 Sources of primary data.......................................................................................

1.5.2 Sources of secondary data...................................................................................
1.6 Limitations.....................................................................................................................
1.7 Schedule of work...........................................................................................................
CHAPTER 2.......................................................................................................................
INTRODUCTION TO BANK..........................................................................................
2.1 Evolution of banking in Pakistan...................................................................................
2.2 Historical Background...................................................................................................
2.2.1 Vision...................................................................................................................
2.2.2 Mission................................................................................................................
2.2.3 Core Values..........................................................................................................
2.2.4 Corporate Information ........................................................................................
2.3 Askari Islamic Banking Services...................................................................................
2.3.1 Vision ..................................................................................................................
2.3.2 Mission................................................................................................................
2.4 Major modes of Islamic banking...................................................................................
2.5 Introduction to AKIBB Abbottabad...............................................................................
2.5.1 Departments.........................................................................................................
2.5.2 Askari Islamic Deposit Products ......................................................................
2.5.3 Askari Islamic Consumer Products...................................................................
2.6 Financial Information .................................................................................................
2.7 PACRA Rating ............................................................................................................
2.8 CSR .............................................................................................................................
CHAPTER 3.....................................................................................................................
FUNCTIONS OF THE MARKETING DEPARTMENT ............................................
3.1 Introduction..................................................................................................................
3.2 Marketing Management at Askari Bank......................................................................
3.3 Market Analysis...........................................................................................................
3.4 STP strategy................................................................................................................
3.4.1 Segmentation strategy.......................................................................................
3.4.2 Target marketing strategy..................................................................................
3.4.3 Positioning.........................................................................................................
3.5 Marketing mix.............................................................................................................

3.6 Product.........................................................................................................................
3.6.1 Askari Islamic Consumer Products ..................................................................
3.6.2 Askari Islamic Deposit Products.......................................................................
3.6.3 Services .............................................................................................................
3.7 Price ............................................................................................................................
3.7.1 Objectives..........................................................................................................
3.7.2 Nature based pricing..........................................................................................
3.7.3 Profit rates for different products......................................................................
3.8 Place (Distribution)......................................................................................................
3.8.1 Selective distribution.........................................................................................
3.8.2 Branches all over Pakistan ................................................................................
3.9 Promotion ...................................................................................................................
3.9.1 Promotional strategies.......................................................................................
3.9.1.1 Advertising.................................................................................................
3.9.1.2 Bill Boards.................................................................................................
3.9.1.3 Broachers...................................................................................................
3.9.1.4 Personal Selling.........................................................................................
3.9.1.5 Internet ......................................................................................................
3.9.1.6 Social marketing........................................................................................
3.9.1.7 Public Relations.........................................................................................
3.9.1.8 Publicity.....................................................................................................
3.9.2 Customer Service...............................................................................................
3.9.2.1 Process of developing relations with customers........................................
3.9.2.2 Relation dependence..................................................................................
3.9.2.3 Techniques of retaining the customers ......................................................
3.9.2.4 Techniques of attracting new customers ...................................................
CHAPTER 4.....................................................................................................................
SWOT ANALYSIS...........................................................................................................
4.1 SWOT Analysis of AKIBB..........................................................................................
4.1.1 Strengths............................................................................................................
4.1.2 Weaknesses........................................................................................................
4.1.3 Oppurtunities.....................................................................................................
4.1.4 Threats ..............................................................................................................
4.2 Competitive Advantage ..............................................................................................

CHAPTER 5.....................................................................................................................
CONCLUSION AND RECOMMENDATIONS ..........................................................
5.1 Conclusion...................................................................................................................
5.2 Recommendations........................................................................................................
5.2.1 Employee empowerment ..................................................................................
5.2.2 Generalization of procedures.............................................................................
5.2.3 Human Resource Department............................................................................
5.2.4 Basis for Promotion...........................................................................................
5.2.5 Development of Managerial Leadership...........................................................
5.2.6 Comprehensive training programs...................................................................
5.2.7 Incorporated marketing strategy........................................................................
5.2.8 Change in Appraisal System..............................................................................
5.2.9 Guidance for Risk Management........................................................................
5.2.10 Effective Management.....................................................................................
5.2.11 New features....................................................................................................
5.2.12 Marketing activities.........................................................................................
5.2.13 Automation......................................................................................................
5.2.14 Islamic banking...............................................................................................
5.2.15 Coordination within bank................................................................................
5.2.16 Merit based hiring............................................................................................
5.2.17 Motivation.......................................................................................................
References.........................................................................................................................