Internship Report

INTERNSHIP REPORT
Lahore Garrison University
Askari Bank Limited
Supervised by
Ms Saba Farooq
Naseem Ashraf
FA14-MBA-11
Lahore Garrison University DHA Phase VI Sector C,

Lahore
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PREFACE
Now a day the business environment keeps on changing everywhere. New dimensions of
business are coming before us. These dramatic and dynamic changes in business world
require the specialties about the all aspect of business of today. Because of these
requirements business knowledge became important and business education becomes the
need of time. The person with latest knowledge can survive in this vast field.
But practical knowledge is also necessary along with the theoretical knowledge. This made
the internship an integral part of MBA Degree. One can see how the theories and knowledge
are being practically implemented. I completed my internship in Askari Bank Limited. This
report carried the information about history, organizational structure, departments, strengths
and weaknesses etc. of Askari Bank Limited. In this report I tried my best efforts to
encompass and elaborate the necessary information about the Askari Bank Limited. This
internship report includes a complete introduction, performance, financial reviews and my
working experience at Askari Bank Limited.
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ACKNOWLEDGEMENT
Praise is to Allah Almighty, the one testing us all at all times and making decisions about what
we don’t know and can’t know. I pay my gratitude to my parent and teachers for their kind
support and guidance in every field of life .Writing this report on my internship, appeared to
be a great experience for me. It added a lot to my knowledge while I was working as an
internee at AKBL.
I owe profound gratitude to Ms Aiza Hussain Rana for stimulating our creative abilities by
assigning this report to us. I am thankful to my supervisor Ms Saba Farooq who help me in
an efficient way I am immensely obliged to all Management of AKBL who guided me in an
efficient way which helps me in making this report, without their considerate attention and
interest, it would be difficult for me to complete this. It is my conviction that this learning
experience will always be a source of help in my practical life and professional career.
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DEDICATION
To
My loving parents
&
Respectable Teachers
Whose endless support and kindness is beyond expression and words may
not just be enough to express my gratitude.
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TABLE OF CONTENT
EXECUITIVE SUMMARY ..................................................................................................... 9

1 INTRODUCTION TO THE ORGANIZATION ................................................................10
1.1 Introduction ....................................................................................................................................... 10
Objective of studying the organization ..................................................................................... 10
History ....................................................................................................................................... 11
1.2 Vision ................................................................................................................................................. 11
1.3 Mission .............................................................................................................................................. 11
1.4 Corporate objectives ......................................................................................................................... 11
1.5 Core values ........................................................................................................................................ 12
1.6 Strategic planning .............................................................................................................................. 12
1.7 Credit Rating ...................................................................................................................................... 12
1.8 Distribution of branches .................................................................................................................... 13
1.9 Corporate profile ............................................................................................................................... 13
1.10 Awards and achievements ................................................................................................................ 15
1.11 Corporate social responsibility .......................................................................................................... 16
Education ................................................................................................................................... 17
Sports ......................................................................................................................................... 17
Health ........................................................................................................................................ 17
Cultural and social Development .............................................................................................. 18
1.12 Hierarchy of the branch..................................................................................................................... 19
................................................................................................................................................................... 19
2 PRODUCT AND SERIVICES .......................................................................................20
2.1 Branch banking .................................................................................................................................. 20
Askari Mahana Bachat Account ................................................................................................. 21
Askari Paishgi Munafa Term Deposit ......................................................................................... 21
Askari little champs Account ..................................................................................................... 21
Investment Certificates ............................................................................................................. 22
Askari waqaar account .............................................................................................................. 22
ASK sona card ............................................................................................................................ 22
Value Plus Current Accounts ..................................................................................................... 22
Rupee Traveler Cheques ............................................................................................................ 23
Bancassurance ........................................................................................................................... 23
2.2 International banking ........................................................................................................................ 23
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Askari aasaan money transfer ................................................................................................... 24

2.3 Agricultural banking .......................................................................................................................... 24
Agriculture Finance Solutions .................................................................................................... 24
Kissan Ever Green Finance......................................................................................................... 24
Kissan Tractor Finance ............................................................................................................... 25
Kissan Abpashi Finance.............................................................................................................. 25
Kissan Livestock Development Finance ..................................................................................... 25
Kissan Farm Mechanization Finance ......................................................................................... 25
2.4 Corporate banking ............................................................................................................................. 26
2.5 Investment banking ........................................................................................................................... 26
2.6 Consumer banking ............................................................................................................................. 27
Master credit card ..................................................................................................................... 27
Askari world master card........................................................................................................... 28
Personal Finance........................................................................................................................ 28
Mortgage Finance ...................................................................................................................... 28
Ask 4 car..................................................................................................................................... 28
2.7 Islamic banking .................................................................................................................................. 29
Askari Ijarah Bis Sayyarah .......................................................................................................... 30
Askari Home Musharakah ......................................................................................................... 30
Askari Islamic Deposit Schemes................................................................................................. 30
2.8 Services .............................................................................................................................................. 30
Internet (I.net) banking ............................................................................................................. 30
Mobile banking .......................................................................................................................... 31
Call center .................................................................................................................................. 31
Automated teller machine (ATM).............................................................................................. 31
Askari visa debit card ................................................................................................................. 31
Askari PayPak debit card ........................................................................................................... 31
Cardless cash withdrawal .......................................................................................................... 32
Online shopping ......................................................................................................................... 32
3 CRITICAL ANALYSIS ..................................................................................................33
3.1 Operational risk analysis.................................................................................................................... 33
3.2 Organizational structure.................................................................................................................... 33
Organizational chart .................................................................................................................. 34
3.3 SWOT ................................................................................................................................................. 35
STRENGTH.................................................................................................................................. 35
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WEAKNESSES ............................................................................................................................. 38
OPPORTUNITIES ......................................................................................................................... 39
THREATS .................................................................................................................................... 41
3.4 PESTEL analysis .................................................................................................................................. 42
Political Analysis ........................................................................................................................ 43
Economic Analysis ..................................................................................................................... 43
Social analysis ............................................................................................................................ 44
Technological Analysis ............................................................................................................... 45
Environmental analysis .............................................................................................................. 45
Legal analysis ............................................................................................................................. 45
3.5 Marketing Strategy ............................................................................................................................ 46
Marketing Mix ........................................................................................................................... 46
Segmentation strategy .............................................................................................................. 48
Target market strategy .............................................................................................................. 47
Positioning ................................................................................................................................. 49
Pricing Strategy .......................................................................................................................... 50
Distribution strategy .................................................................................................................. 51
Promotion Strategy ................................................................................................................... 51
3.6 Competitive strategy ......................................................................................................................... 53
Competitors ............................................................................................................................... 53
3.7 Porter’s Five Forces Analysis ............................................................................................................. 54
Entry Barriers - High .................................................................................................................. 54
Rivalry among the Existing Competitors ................................................................................... 54
Bargaining Power of Suppliers................................................................................................... 54
Bargaining Power of the Customers - Stable & Increasing ........................................................ 55
Threat from Substitutes - Low ................................................................................................... 55
3.8 Business Process Analysis .................................................................................................................. 55
Profit .......................................................................................................................................... 55
Deposits ..................................................................................................................................... 56
Earnings per share ..................................................................................................................... 56
Return on assets ........................................................................................................................ 57
Non-performing loans ............................................................................................................... 57
4 INTERNSHIP EXPERIENCE ........................................................................................58
4.1 WEEK 1............................................................................................................................................... 58
Account Opening Form (AOF) .................................................................................................... 58
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National Identity Card ............................................................................................................... 58

Specimen Signature Card (SS Card) ........................................................................................... 58
Individual Accounts ................................................................................................................... 58
Accounts of literate ladies and gentlemen ................................................................................ 59
Minor Accounts ......................................................................................................................... 59
Joint Accounts............................................................................................................................ 59
Partnership Firm Account .......................................................................................................... 59
Know your customers (KYC form).............................................................................................. 59
4.2 WEEK 2............................................................................................................................................... 60
Instruments of the remittances departments ........................................................................... 61
4.3 WEEK 3............................................................................................................................................... 62
Statement of condition report .................................................................................................. 62
Daily non-financial transaction report....................................................................................... 63
4.4 WEEK 4............................................................................................................................................... 63
NIFT - National Institutional Facilitation Technologies ............................................................. 64
Outward clearing at the branch ................................................................................................ 64
Inward clearing of the branch ................................................................................................... 65
Inward cheques returned unpaid .............................................................................................. 66
Out ward cheques retained unpaid ........................................................................................... 66
4.5 WEEK 5............................................................................................................................................... 66
Factors involved in consideration of Credit Proposals .............................................................. 67
4.6 WEEK 6............................................................................................................................................... 69
Foreign Currency Accounts........................................................................................................ 70
Foreign Remittance ................................................................................................................... 70
Foreign Telegraph Transfer ....................................................................................................... 71
Travel Related Services .............................................................................................................. 71
Trade Related Services .............................................................................................................. 72
5 CHAPTER 5 ..................................................................................................................76
5.1 Conclusion ......................................................................................................................................... 76
5.2 Recommendations............................................................................................................................. 77
5.3 Limitations ......................................................................................................................................... 78
6 Bibliography ................................................................................................................79
7 References ...................................................................................................................80
8 Glossary.......................................................................................................................81
9 List of Abbreviation ....................................................................................................99
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EXECUITIVE SUMMARY
The internship report is being compiled and submitted for the requirement of an academic
obligation for the Degree of Master of Business Administration to be awarded by
Lahore Garrison University. The purpose of this internship is to enable students who are
about to pass out from the institute to get a taste of practical life, of how life would be and
how we would handle the challenges it throws at us once we walk out from these gates. The
purpose of this report is to present the experience gained during my tenure with Askari Bank
and also provides an overview of the performance of Askari Bank. Those six weeks were a
wonderful experience full of learning and understanding and putting the knowledge we
learned into perspective. I learned a lot about the working of the organization and how it plans
to maximize profits. The information that I have gathered in the limited time as an intern is
briefly described in this report.
Askari Bank has aggressive growth plans in Pakistan. Its name is generally considered for
quality and reputation. It offers a broad range of products to target different market segments.
My working experience with the company was informative. This report starts with an
introduction and from there on follows the pattern that was kindly provided to us by our
honorable institute covering the objectives, operational details, products and services and
lastly, what I learned as an intern at Askari Bank Limited. As an intern I worked in different
important sections of the bank namely account opening, clearing, bills and remittances,
foreign exchange and credit.
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CHAPTER 1
1 INTRODUCTION TO THE ORGANIZATION
1.1 Introduction
Banking is the business of providing financial services to consumers and businesses. The
basic services a bank provides are checking accounts, which can be used like money to
make payments and purchase goods and services; savings accounts and time deposits that
can be used to save money for future use; loans that consumers and businesses can use to
purchase goods and services; and basic cash management services such as check cashing
and foreign currency exchange. A broader definition of a bank is any financial institution that
receives, collects, transfers, pays, exchanges, lends, invests, or safeguards money for its
customers. Askari Bank remains committed to providing people with innovative and integrated
financial solutions to all your day to day and one time financing needs, as well as offering
various products and services to maximize returns on investments.
Askari Bank provides a complete array of tailored financing solutions like Term Loans, Letters
of Credit, Letters of Guarantee, Bill Discounting, Working Capital Facilities, etc. The Bank
also focuses on origination and execution of a full range of financial advisory and capital
raising services to corporate and institutional clients as well as actively managing the bank’s
proprietary investments in the local equity and debt capital markets. Askari Bank has gained
strength with improved and efficient delivery and control mechanism for meeting increased
demand for credit by farmers in easy, accessible and affordable manners. Askari Bank is also
improving life standard of farmers through its distribution network. Askari Bank has expanded
into a nationwide presence of 500+ Branches, and an Offshore Banking Unit in Bahrain. A
shared network of over 5000 online ATMs covering all major cities in Pakistan supports the
delivery channels for customer service.
Objective of studying the organization
Being a student of Finance (MBA) need to know how a bank works and how theoretical
knowledge relates the practical in the banking sector. As theoretical knowledge is not enough
to run a bank or business therefore practical knowledge has its important not for only
experience it also disclose the answers of the questions remain in the theoretical study.
Understanding of Financial Operation is another objective to study. How working take place
in the bank to handle financial matters. How Information generated and recoded and it is
used for decision making purpose. What kind of reports are producing in the bank for various
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purposes. To understand the organizational structure in term of reporting line: who is

reporting to whom and know what are responsibilities and authorities of different
designations. What are products lines of the bank offers to the customer.
History
Askari bank was incorporated in Pakistan on October 9, 1991, as a public limited company.
The registered office of the Bank is situated at AWT Plaza, The Mall, and Rawalpindi. The
Bank obtained its business commencement certificate on February 26, 1992 and started
operations from April 1, 1992.Army Welfare Trust directly and indirectly holds a significant
portion of the bank's share capital at the period end. The bank is listed on Pakistan Stock
Exchange and its share is currently the highest quoted among the new private sector banks
in Pakistan.
Askari Bank Limited is a Pakistan-based commercial bank engaged in the provision of
general banking services. Its segments include corporate financing which includes corporate
and investment banking activities, trading and sales which includes the Bank’s treasury and
money market activities, retail banking which provides services to small borrowers,
commercial banking which provides services related to project finance, trade finance, lending,
bills of exchange and deposits from corporate customers, payment and settlement which
includes income from payments and collections, agency service which includes income from
rent of lockers provided to customers and subordinated loans which represents term finance
certificate issued by the bank.
1.2 Vision
“To be the bank of first choice in the region”
1.3 Mission
“To be the leading private sector bank in Pakistan with an international presence, delivering
quality services through innovative technology and effective human resource management
in a modern and progressive organization culture of meritocracy, maintaining high ethical and
professional standards, while providing enhance value to all the their stakeholders and
contributing to society”
1.4 Corporate objectives
 Sustainable growth and profitability
 Kaizen approach
 Customer oriented strategies
 Motivate employees by appreciation and monetary incentives
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 Optimize usage of human and technological resources

 Cost effective strategies
 Effective and efficient risk management
 Effective management of other portfolio businesses
1.5 Core values
 Integrity
 Teamwork
 Services
 Fairness
1.6 Strategic planning
 To comprehensively plan for the future to ensure sustained growth and profitability.
 To facilitate alignment of the Vision, Mission, Corporate Objectives and with the business
goals and objectives.
 To provide strategic initiatives and solutions for projects, products, policies and procedures.
 To provide strategic solutions to mitigate weak areas and to counter threats to profits.
 To identify strategic initiatives and opportunities for profit.
 To create and leverage strategic assets and capabilities for competitive advantage.
1.7 Credit Rating
Credit ratings represent the Bank’s ability to effectively implement its various planned
measures to manage the steadily increasing competition in the banking sector, thereby
helping to protect its relative standing in the sector. Askari Bank has been assigned long term
rating at ‘AA+’ and short term rating at ‘A1+’ by the Pakistan Credit Rating Agency (Pvt)
Limited (PACRA). The ratings reflect the Bank’s strong capital structure supported by sound
profitability. Taking a note of the fast changing banking dynamics, the management has put
in place a well-conceived strategy to improve the Bank’s performance and strengthen its risk
management framework, ensuring its strong standing within the sector. According to PACRA
“these ratings reflect sustained ability of revenue growth from core operations while
maintaining a low risk profile and also dynamic as well as efficient fund deployment strategy.
Going forward, given the strong technological platform and enhanced geographical outreach,
the Bank is well positioned to maintain its competitive edge despite an increasingly
competitive operation environment.”
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1.8 Distribution of branches

Our presence in all corners of Pakistan is more than just being there.
Baluchistan 23
Federal Capital Territory 43
Gilgit Baltistan 4
Khyber Pakhatunkhwa 37
Azad Kashmir 9
Punjab 246
Sindh 138
Wholesale bank branch (Bahrain) 1
China (Representative office) Beijing 1
Total Conventional Branches 406
Total Islamic Branches 94
Total branches and sub branches= 501
1.9 Corporate profile

Board of Directors BOARD OF DIRECTORS
 Nawaz Khan, HI (M), Sitara-i-Esar (Retd)
Chairman - Non-Executive Director
 Lt Gen Shafqaat Ahmed, HI (M) (Retd)
Non-Executive Director
 Lt Gen Javed Iqbal, HI (M) (Retd)
 Mr. Qaiser Javed
 Dr. Nadeem Inayat
 Mr. Manzoor Ahmed
Non-Executive Director - NIT Nominee
 Mr. Asif Reza Sana
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Independent Director
 Mr. Zaffar Ahmad Khan
 Mr. Tariq Hafeez Malik
 Mr. Muhammad Ghous
 Syed M. Husaini
President & Chief Executive - Executive Director
Board committees
Audit & compliance
 Mr. Asif Reza Sana (Chairman)
 Mr. Manzoor Ahmed
Human resource & remuneration
 Mr. Zaffar Ahmad Khan (Chairman)
Risk management
 Mr. Manzoor Ahmed (Chairman)
 Mr. Asif Reza Sana
 Syed M. Husaini
Information technology
 Mr. Tariq Hafeez Malik (Chairman)
 Mr. Zaffar Ahmad Khan
 Syed M. Husaini
Shariah board
 Mufti Muhammad Zahid (Chairman)
 Mufti Ismatullah (Member)
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 Dr. Muhammad Tahir Mansoori (Resident Shariah Board Member)

Auditors
 F. Ferguson & Co.
 Chartered Accountants
Legal advisors
 RIAA, Barker Gillette
 Advocates & Corporate Counselors
Company secretary
 Mr. Umar Shahzad
Registered office
AWT Plaza, the Mall, P. O. Box No. 1084
Rawalpindi – 46000, Pakistan.
Tel: (92 51) 9272467 & 9063752
UAN: (92 51) 111 000 787
Fax: (92 51) 9272455 & (92 51) 9272445
E-mail: ir@askaribank.com.pk
Registrar & share transfer office
Central Depository Company of Pakistan Limited
2nd Floor, 307 – Upper Mall, Opposite Lahore Gymkhana,
Near Mian Mir Bridge, Lahore - 54000
Tel: (92 42) 35789378-87, (Direct) 35789367, 0800-CDCPL (23275)
Fax: (92 42) 35789340
Email: info@cdcpak.com
Website: www.cdcpakistan.com
Website
www.akbl.com.pk
Social media
fb/askaribankpakistan
Twitter/askari_bank
1.10 Awards and achievements
Over the years Askari bank has received many awards for quality services not only to its
customer but also to corporate sector and its employees as well, which include:
 The Best Annual Report
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1st Prize awarded for 2008. 2010 and 2011 for the financial sector, instituted jointly by
The Institute of Chartered Accountants of Pakistan and The Institute of Cost and
Management Accountants of Pakistan.
 Best Commercial Bank
Consumer Choice award 2005 by The Consumers Association of Pakistan
 Best Retail Bank in Pakistan
Award 2004 & 2005 by the Asian Banker
 Best Corporate Report
1st prize awarded for 2000, 2001, 2003 & 2004 by Institute of Chartered Accountants of
Pakistan (ICAP) and institute of Cost & Management of Accountants of Pakistan (ICMAP)
 Corporate Excellence
Awards for 2002 & 2003 by the Management Association of Pakistan (MAP)
 Best Corporate / Institutional Internet Bank in Pakistan
Award for 2004 by Global Finance magazine
 Best Consumer Internet Bank in Pakistan
Award for 2002, 2003 & 2004 by Global Finance magazine
 The Best Bank in Pakistan
Award for 2001, 2002 and 2003 by Global Finance Magazine
 Best Presented Accounts
Ranking prizes awarded from 1997 to 2002 By South Asian Federation of Accountants
(SAFA)
 Commercial Bank of the Year
Award for 1994 & 1996 By Asia money magazine
 Best Domestic Bank in Pakistan
Award for 1995 by Euro money
1.11 Corporate social responsibility
Askari Bank recognizes its obligation to society as a strategic imperative as reflected in its
mission statement. As a socially responsible corporate entity, the Bank believes in taking
initiatives which add value to peoples’ lives and the environment around them. During 2016,
the Bank continued to support various initiatives and projects in the areas of education,
sports, health and social development as a means of bringing about a positive change in the
lives of people around us. In addition to social sector development, certain initiatives were
implemented through the involvement of stakeholders within the Bank. To this end, Askari
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Bank’s program of providing banking training to the children of employees in low income
group is running successfully for the second year. Under this program, family members of
such employees are given free banking training, thereby enabling them to become gainfully
employed and pursue a career in banking.
Some of the other initiatives / events supported by Askari Bank during 2016 are as under:
Education
Investing in education is investing in the future of our nation. The Bank contributes for the
education sector by supporting educational programs aimed at providing learning
opportunities to the youth. Following are some of the educational events supported by the
bank during the year:
 Junior Model United Nations at Roots Ivy School, Islamabad
 Film and Drama Festival at NUML, Islamabad
 Out loud Pakistan Business Week Extravaganza at FAST University, Islamabad
Sports
The significance of sports is vital for physical and mental well-being and it also inculcates
discipline and perseverance. Some of sporting events sponsored by Askari Bank were:
 COAS Polo Cup, Show Jumping and Dressage, Rawalpind
 5th All Pakistan Golf Championship, Mangla
 6th Chief of Naval Staff Golf Championship, Lahore
 Cricket match between Pakistan Army and Australian Army, Rawalpindi
 Inspector General Frontier Corps Polo 1qqqCup, Peshawar
 Heavy Industries Taxila Olympiad 2016, Taxila
 Gwadar Coastal Highway Cycle Rally 2016
 Asian Tennis Tour by Islamabad Tennis Association
Health
Askari Bank has always contributed generously for health related projects and initiatives with
the objective of promoting a healthier Pakistan. Some of the notable contributions were made
to:
 Patients Aid Foundation, Karachi
 Pakistan Red Crescent, Islamabad
 Fatimid Foundation, Multan
 Pakistan Thalassaemia Welfare Society
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 Hamza Foundation Welfare Hospital

 The Kidney Center, Post Graduate
 Training Institute, Karachi
Cultural and social Development
To uphold our traditions and participate in the social development of our community Askari
Bank plays an active role in various initiatives aimed at promoting our culture and investing
in societal causes. Some of these are listed below:
 Eid Milan Party at GE (Army), Tarbela
 14th August ceremony - PAF Academy, Risalpur
 Food and Shopping Festival - DeSom, Lahore
 Floral demonstration - Floral Art Society of Pakistan, Karachi
 Diwali Show 2016, Karachi
 Monument construction at Shuhada-e- Warsak Park and Chowk, AJK
 5th Islamic Finance Expo and Conference, Karachi
 SBP SME Mela (Lahore, Multan, Gujranwala, Sargodha, Quetta, Hyderabad)
 CPEC Summit and Expo, Islamabad
 2nd Pakistan Edible Oil Conference (PEOC) 2017, Karachi
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1.12 Hierarchy of the branch
Branch Manager
Saeed Ahmed Cheema
Operation Manager
Imran Mehmood Qureshi
In charge of Departments
Umar Farooq
Account Stock and Cash Clearing and

Opening Trade Remittances
Ms Mussarat Mr Sajjid Raza Mr Asad Javed

Mr M Shareef
Mr Raja kamran Mr Karamat Ali
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CHAPTER 2
2 PRODUCT AND SERIVICES

Askari Bank offers Corporate and investment
banking to full fill business requirements through one window problems solution.
Continuous business need analysis for new products augmentation is taking place
under corporate and investment banking.
Consumer
banking
product
Islamic Brand Agriculture

portfolio of
banking the finance
services organization solution
Corporate
&
Investment
Banking
There are some basic divisions in the bank according to the services that are offered which
include:
2.1 Branch banking
In branch banking there are a number of accounts which are offered to the general public
and the employees of Armed forces and then the choice is made on the basis of the
customer’s individual needs. The accounts that are offered are categorized as:
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Askari Mahana Bachat Account

This particular type of account is offered to the individual looking for a short term investment
account. It offers investment options from 1 to 3 years and is particularly aimed at customers
who want monthly profit from their savings. It is a term deposit account in which the money
has to be placed for a certain period of time and is offered only to Pakistani citizens. The
balance requirements of this particular type of account range from a minimum of Rs.50, 000
and can go as far as up to Rs.10, 000, 000. The payments are made at the 1st of every month
and the profit rates are 7.6% per annum for 1 year term investments and up to 8.5% per
annum o 3 year term investments.
Askari Paishgi Munafa Term Deposit

This unique type of account is there to cater to the investment needs of individuals who need
profits right away on their medium term investments and in doing so the customer receives
the entire profit of their investment straight away at the time of placement. This account too
is made strictly for Pakistani nationals. It requires a minimum deposit of Rs.100, 000 or in
multiples of 1 million for a tenure of 15 months and the return rate on this account is 7.5%
per annum while this type of account offers the additional advantages of free VISA Debit card
and no maximum limit for investment.
Askari little champs Account
Askari Little Champs Account is designed specifically for minors (individuals below the age
of 18 years). It introduces the concept of saving to the children and helps them understand
the value of money at an early age. The account offers two variants i.e. current and savings
accounts. Little Champs Account comes with a money box as a welcome gift, along with a
Visa Debit Card and cheque book. It offers high returns, free education insurance plan and
surprise gifts on birthday.
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Investment Certificates
Like investment certificates from any reputable institution, the investment certificates from
Askari Bank not only offer added security and the option of monthly profits but are also
completely transferable and can be transferred to any third party. These are issued for a
period of three period and the profit is paid on a monthly basis. These are issued and
encashed free of cost while an existing account is not mandatory. While there is no penalty
on pre-mature encashment there is no maximum limit on the purchase of these certificates
and these can be encashed at any branch of Askari Bank anywhere in Pakistan and they
also offer great security because in case of theft or loss there is always the option of
replacement/refund to the original purchaser. The expected rates of return for the three month
in that order are 6, 6.10 and 6.25% for the life of the certificate.
Askari waqaar account
Askari Waqaar Account caters to the banking needs of senior citizens (55 years and above)
looking for monthly profits, high returns and short term investment opportunities. Askari
Waqaar Account offers two variants; Term deposit (one year) and Savings account. The
customer has the option to choose any or both of these variants.
ASK sona card
Ask Sona Card is a joint venture of Askari Bank Limited & Fauji Fertilizer Company Limited
(FFC). It is especially designed to create convenience and cater to the business needs of
FFC and its dealers. It is an innovative, electronic cash management solution that replaces
the existing conventional collections system. It is a transaction-specific debit card with plastic
money features which has replaced the conventional transfer of funds.
Value Plus Current Accounts

This particular account is a current account which although does not offer any monetary
return but offers a number of other useful options for both an individual investor as well as
small businesses or corporations for that matter. Some of the salient features of type of
account for an individual investor are free issuance of ATM/VISA Debit card and very reliable
insurance coverage for all of cards and additional facility of On-line fund transfer facility, i-Net
banking facility, duplicate account statements and issuance of cheque books meanwhile the
individual has to ensure a minimum balance of Rs.25, 000 at all times.
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The same type of account also offers various advantages to businesses as well in the form
of several free facilities such as on-line fund transfer facility, issuance of cheque books,
issuance of pay orders / demand drafts and a 24/7 access to account statement through
internet banking with duplicate account statements available whenever required. The
minimum level of balance for businesses is Rs.100, 000. The same type of account also
offers various advantages to businesses as well in the form of several free facilities such as
on-line fund transfer facility, issuance of cheque books, issuance of pay orders / demand
drafts and a 24/7 access to account statement through internet banking with duplicate
account statements available whenever required. The minimum level of balance for
businesses is Rs.100, 000.
Rupee Traveler Cheques

These cheques are issued to eliminate the risk of carrying cash while travelling. These are
for an amount of Rs.10, 000 and are completely valid until encashed. These can be
purchased and encashed at any branch of Askari Bank Limited and are enchased after the
original purchaser signs the front of the RTC while a commission of Rs.30 is charged per
RTC for holding it for 30 days or more.
Bancassurance
The Bank offers innovative insurance solutions by fusing together banking, wealth
management and insurance products. In partnership with EFU Life Assurance Limited and
Jubilee Life Insurance Company Limited (JLI), the Bank offers its customers with value-added
life insurance and wealth management products tailored to suit their long term financial
requirements and protection plans.
2.2 International banking

AKBL has correspondent banking relationships with 473 banks in 85 countries around the
world. The business in Asian region in particular continues to grow and delivers excellent
results in terms of balance sheet growth and bottom line contribution. Concentrated efforts
are being made to promote business from China, leveraging on positive spill-over of the
Chinese investment in Pakistan, especially under CPEC. We carry out regular due diligence
exercises to ensure that we deal with only those financial institutions which are able to meet
the prescribed standards and criteria.
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Askari aasaan money transfer

Role of Home Remittance segment is pivotal in promoting remittances through its state-of-
the-art web based portal “Askari Aasaan Money Transfer”. This service is completely free of
cost and is available for all citizens across the country. The remittances are received through
our arrangements with correspondent banks and exchange companies globally. We have a
dedicated team of customer service officers who are available to respond to the queries of
remitters and beneficiaries of the remittances.
2.3 Agricultural banking

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

This is a profit earning account available only to Pakistani residents in which land is
mortgaged against the financing provided. This account benefits the farmer in both ways
because if it stays credit it earns profit for that farmer otherwise it is a source of immediate
finance fulfilling the farmer’s agricultural needs. A special cheque book is issued to the farmer.
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The tenure of account is a yearly one and the profit on credit balances is paid on a half yearly
basis. Also the markup is charged for the actual days the finance is utilized.
Kissan Tractor Finance
This is a profit earning account which can only be opened by a Pakistani resident for a tenure
of 5 years. On account of more equity funding the farmer in this account can avail non-funded
facility at a reduced cost. A bonus is paid to the farmer as a result of their good credit history
at the end of the program if all the terms of sanction are met. Also the farmers as well as the
tractor are insured against any possible contingency in this program providing a peace of
mind. Also the propriety of the tractor will the given by the manufacturer after an agreement
with the bank.
Kissan Abpashi Finance
This type of financing is used to help farmers in the installation of tube wells, water channel
developments and water management equipment and the farmer must be a Pakistani citizen
to avail this type of financing. This financing helps farmers make the optimum use of the
limited water resources and overcome the scarcity of water. A lot of water is wasted in the
traditional sources and mechanized irrigation makes the optimum use of water making more
area cultivable and helps farmers tap the natural water resources through water management
practices.
Kissan Livestock Development Finance
This particular type of financing is made available to the farmers to help them purchase
livestock such as milk animals, goats, sheep, poultry and fisheries without having to incur
additional expenditure and the said farmer must be a Pakistani resident to avail this type of
financing. This sort of a program helps farmer earn on a daily basis to meet his own needs
any pay off any liabilities. This revives and accelerates the earning capacity of the farmer and
also enhances their repayment capacity.
Kissan Farm Mechanization Finance
This financing option helps farmer’s purchase farm machinery such as tractors, trailers,
threshers, drills and rotators etc. and to avail this financing the farmer must be a Pakistani
resident. Due to this type of financing the farmer is able to purchase modern farming
machinery that is both cost saving and also increases the per acre yield and in doing so also
helps the farmer to increase the quality of their crop to match or compete with international
standards prevailing elsewhere that helps them in the export of their agricultural products.
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2.4 Corporate banking

CBD is long-term business partner that is geared to help in meeting business growth
objectives. The business is managed by a team of professional who understand
requirements and can firmly stand by side. Dedicated relationship managers for each
of corporate clients ensure satisfaction, which is our top priority. Relationship oriented
outlook focuses upon providing a complete array of tailored financing solutions, that
are practical and cost effective, some of which include:
 Working Capital Facilities
 Term Loans
 Structured Trade Finance Facilities
 Letters of Guarantee
 Letters of Credit
 Fund Transfers / Remittances
 Bill Discounting
 Export Financing
 Receivable Discounting
2.5 Investment banking

IBD provides value-added, specialist services and products through a dedicated team
of professionals, with world-class skills, to provide customized solutions to help clients
meet their strategic objectives. IBD is responsible for flawlessly originating, executing
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and distributing all forms of investment banking transactions ranging from syndicated
loans to complex structured and project financing transactions. Some examples of
products offered by IBD include:
 Strategic Advisory
 Privatization Advisory
 Balance Sheet Restructuring
 Project Finance
 Structured Finance
 Islamic Finance
 Private Placements of Debt and Equity
 Issuance and distribution of Term Finance Certificates
 Bonds, and Commercial Paper
 Underwritings
 Capital Market Hybrid Products
2.6 Consumer banking
Consumer banking provides financing facilities to individuals through prudent, customer-
centric policies and quality services that aim to make our customers’ experiences more
interactive and intuitive. Under consumer banking services following products are offered:
Master credit card

Askari Bank offers a competitive suite of Classic, Gold, Corporate and Platinum Master Credit
Cards that provide superior services, travel privileges, exciting discounts, and online payment
facility along with reward points and transactional alerts through SMS as an enhanced
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security feature. The option for Flexible Credit Plans (FCP), Extended Payment Plan (EPP)
and Balance Transfer is also available to customers at discounted mark-up rates.
Askari world master card
Askari Bank pioneered Pakistan’s first ever “World MasterCard” in collaboration with
MasterCard International. This credit card is specifically designed for customers seeking
high-class service standards and travel privileges worldwide.
Personal Finance
These financing options are only available to Pakistani residents at the moment and the
person applying for the loan must be at least 21 years of age and a maximum of 61 years of
age with a minimum monthly salary of Rs.30, 000 with their employment having at least a
tenure of 1 year remaining. The markup for secured personnel is 19% and that for unsecured
personnel is 21% in which the debt burden is a maximum of 50% of their net disposable
income. This is a very easy and secure loan option for salaried individuals who are willing to
secure short term loan for relatively small expenditures.
Mortgage Finance
A home of one’s self is a dream of any individual and Askari Bank has made the realization
of this dream very easy with rather flexible home loans available for individuals in urban areas
of Pakistan aged between 23-65 years of age. The bank helps in the purchase and
construction of the house as well as renovation of old houses with balance transfer facility
also available. Houses plus apartments are covered under this particular type of financing.
Ask 4 car
Askari Ask4Car is an auto financing product for new, used and imported vehicles. It offers
competitive mark-up, flexible repayment plan and quick processing without any hidden costs.
The product is offered to the customers for a maximum tenure of 7 years.
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2.7 Islamic banking

Islamic Banking was launched under the brand 'Askari Islamic Banking', by opening 6
dedicated Islamic Banking branches in major cities of the country. Further expansion is
planned with improved capabilities for offering products conforming to the Shariah principles.
Askari Islamic Banking opens the doors for Halal banking solutions. Objective is to put in
place an efficient banking system supportive to economic justice and welfare of society in line
with Shariah standards.
A comprehensive range of Islamic Banking products and services is being offered, in order
to meet customer's demand of Shariah Compliant Banking, in the following areas:
 Islamic corporate Banking
 Islamic Investment Banking
 Islamic Trade Finance
 Islamic General Banking
 Islamic Consumer Banking
Askari Bank is striving hard to satisfy customer needs in regard to Islamic practices and
needs. The efforts in this regard are put into practice a completely efficient banking system
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that not only meets the economic justice but also the Sharia standards. There are currently
29 branches in major cities in Pakistan that provide only Islamic banking solutions. The
products and services that are offered in this division are as follows:
Askari Ijarah Bis Sayyarah
This is auto financing offered by the Islamic banking division. It is a rental agreement of sorts
in which the cost of an automobile is transferred to the user under a pre-settled agreement
and it is a Sharia compliant mode of financing which is completely halal. Under this there is
no insurance from the bank and any risk to the vehicle or the owner themselves is borne by
the owner. This can only be availed by Pakistani residents between the ages of 21 to 60.
Askari Home Musharakah
This is a house financing facility offered by the Islamic banking division that enables
customers to visualize the dreams of owning a house without having to pay interests. Under
this type of financing customers can purchase, transfer, renovate or improve their houses or
apartments and under the rules of Musharakah a joint ownership is formed between the bank
and the customer. After the down payment or the share of the customer that has been paid
the share of the bank is divided in to multiples of rent which are then paid by the customer.
Furthermore an existing interest base financing can be converted into Islamic housing
financing with the guarantee of prompt processing.
Askari Islamic Deposit Schemes
There is an Islamic advisor at every Askari Islamic Banking branch who guides about the
various types of accounts that are present in this form of banking and the types that are
available in Islamic banking are AHSAN accounts which are savings accounts and offer
profit on monthly basis which are made with the concept of risk bearing. Then there are
AHSAN Munafa accounts which offer profit on monthly basis which is made on a daily
product basis and lastly there is the AHIA account which is primarily an investment account
which offers investment certificates.
2.8 Services
Internet (I.net) banking
Askari Bank’s I-Net banking assures convenient banking from the comfort of your home as
customers are no longer required to wait in long and worrisome queues for a financial
transaction, balance inquiry, statement of accounts, funds transfer, utility bill payment, etc. In
addition to these services, our I-Net banking also offers:
 Online Banker’s Cheques delivery at your doorstep
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 Online Investment in Mutual Funds managed by Askari Investment

Management Limited (a wholly owned subsidiary)
 Online Insurance premium payment of EFU & JLI
 Online payment for the purchase of Shaheen Airline Tickets
 Online LUMS fee payment
Mobile banking
Askari mobile banking solution provides customers with convenient access to their accounts
from their mobile phones, anytime, anywhere. We offer three types of mobile banking
solutions to our customers:
 Askari Lite Mobile Banking – browser based solution
 Askari USSD Mobile Banking – available to all mutual customers of Askari Bank
and Ufone
 Askari Mobile Application – for Android, IOS and Windows
Call center
Our Call Center provides a single point of contact to all callers and offers real-time information
on products and services. It also attends customers’ requests and handles their queries
around the clock.
Automated teller machine (ATM)
Askari Bank is a member of two electronic ATM inter-bank connectivity platforms i.e., MNET
and 1-link. Through this shared network of more than 11,000 online ATMs, including more
than 500 Askari Bank ATMs, we provide services in all major cities of Pakistan.
Askari visa debit card
You can manage your account, withdraw cash, make purchases and transfer your funds
through Askari Visa Debit Card, which offers the convenience of a credit card without the
hassle of monthly bills and interest charges. There are no minimum balance requirements for
the issuance or retention of the VISA Debit Card, which is available in Classic and Gold
categories.
Askari PayPak debit card
Askari Bank is the first bank to introduce PayPak – Pakistan’s first domestic payment scheme
powered by 1LINK (Guarantee) Limited. This payment solution provides access to all ATMs
and POS terminals across Pakistan. Currently, PayPak debit card is available in Classic and
Gold categories.
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Cardless cash withdrawal

Cardless Cash Withdrawal is a unique and value added feature of Askari Mobile Banking.
The facility aims at providing further convenience to our valued customers’ cash requirements
without requiring a Debit Card.
Online shopping
In our endeavor to introduce innovative services and products, Askari bank has introduced
payments for online shopping through I-Net banking. This innovative cardless service
facilitates customers to pay directly & safely from their Bank Account for online purchases
without having to leave the comfort of their home or office.
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CHAPTER 3
3 CRITICAL ANALYSIS
The company analysis of a firm comprises of many factors and revolves around all the internal
activities, which refer to the operations carried out, strategies that are a part of the marketing
mix and the environment in which the firm or company has to survive. All these factors are
linked to one another in some form and make a chain of necessities for the achievement of
a successful status in the market. Askari Bank is no different than any other firm and faces
the same challenges on its face ahead.
3.1 Operational risk analysis
The operational risk analysis specifies the risk of loss to the bank resulting from failed or
inadequate people, process, systems and external events. The techniques used by the bank
in this regard are Risk and Control Self-Assessment (RCSA), Key Risk Indicators (KRIs),
Loss Data Analysis and Scenario Analysis. This tools enlighten the effectiveness of
procedures and methods that a firm adopts to carry out and perform its work. Different
departments are accordingly formed and tasks are specified properly.
3.2 Organizational structure
Askari Bank Limited, Baghbanpura Branch is fruitfully meeting all its objective. Software
programs that are installed for each department has increased their efficiency and they can
take any information quickly and their branches/clients are getting quick response due to their
efficient network. Systems are completely secured by password controls. To further
strengthen and enhance technology platform, the Bank is in the process of replacing the
existing technology with comprehensive state-of-the-art solutions. This initiative will greatly
improve their product delivery and service abilities. At Askari Bank, Baghbanpura Branch
there exist “WE” Culture where there is mutual trust and respect for each other. And appraisal
system is purely performance based.
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Organizational chart
BOARD OF DIRECTORS
Executive Committee Internal Audit
President and Chief

Executive
Corp. Banking Operating and Retail Credit Cards

& Fin. Inst. credit group Regions Banking
Group Group
Rawalpin Planning and

International Credit di/Islama Asset Corporate
bad Products affairs
North Human
Electronic Investment
Treasury Resource
Technology products
Corporate and Systems and

Lahore Finance
Merchant Operations
Banking
East
Data Reporting
South I
Legal Affairs
South II
West
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3.3 SWOT
SWOT analysis is one of the most expedient technique or tool used in the Strategic
Management process for conducting the situation analysis of an organization. The proper
analysis of the firm is given in the form of Strengths, Weaknesses, and Opportunities and
Threats the company presently facing or can be forecasted for the future. It is a common
approach to make assessments in terms of internal and external environment of the
organization, and to formulate strategies analyzing its internal strengths and weakness,
external opportunities and threats, coming up is the SWOT analysis for the AKBL. Such an
analysis is very important for the management in retaining the strength, overcoming the
weaknesses, capitalizing over the emerging market opportunities, and carving ways to
successfully tackle with the threats and ultimately converting them in the strengths for the
organization. AKBL image and reputation in the market is its major strength. AKBL has strong
ownership structure. Their motto is “inspiring relationships” which shows their positive
relationship and care for their customers and employees, providing them with diversified
portfolio of products. Major strengths of AKBL has been given below:
STRENGTH
Computerization
The main strength of AKBL Limited is that all of its branches are fully computerized and
they have latest software’s 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.
Well-knitted branch network
AKBL has a well-knitted and adequately equipped branch networking system that efficiently
covers both the domestic and international markets. ABL has the largest branch networking
in Pakistan comprising of more than 500 branches/sub branches.
Largest private bank
AKBL is one of the largest private banks with deposit base of Rs.472, 811 MILLION /-
showing constant growth over the period 1999 till day and with many online branches in
major cities of Pakistan.
Customer’s feedback
Customers are allowed to give suggestions regarding banking services. If there is any
complaint by the customer the bank authorities investigates the reasons for complaint.
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Complaint monitoring system is excellent at AKBL that shows bank values more to its
customers.
International markets
AKBL is actively participating in international markets and has recently introduced credit
cards in UAE, Bahrain and Qatar, being backed by 24 hours call center out of UAE.
Information system
AKBL has also invested heavily in information technology resources, which has now allowed
bank to develop one of the most comprehensive and advanced system available. With the
help of this system AKBL has now achieved an “online” status via real time facilities and
features available through nationwide network. With the team of highly qualified
professionals, AKBL is able to use its real time system resources to provide customers with
comprehensive account of their transaction on a daily basis. AKBL is one of those few banks
who are reaping the benefits of electronic transaction.
Leadership in ATM’s
With over 5,319 online ATMs network AKBL is again an undoubted industry leader with
connectivity extended to above than twenty five cities of Pakistan. AKBL ATMs not only serve
24 hours cash convenience but also improve on the counter services and turnaround time
at cash counters.
Worldwide master card
The AKBL ATMS Master Card has become a global service furthering the convenience to
the customers. Traveling customers can access their accounts from a large number of
internationally deployed ATMs and point of sale unit.
Strong repute
AKBL is a subsidiary of ARMY WELFAE TRUST (AWT) so it has a strong army background
and it definitely adds to its prestige and provides it an edge over the competitors.
Easy access
AKBL has a widespread network providing easy access to its customers where ever they
are. AKBL has a network of 501 branches extended throughout Pakistan. AKBL branches
are located in the commercial area, so that the customers face no problems in reaching to
the bank.
Transparency of accounts
AKBL has won several national awards in recognition to the transparency with which it
presents its annual reports. The annual financial statement are prepared by the bank in
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accordance with the international accounting standard and are also published quarterly and
half yearly accounts to provide information to their stakeholders for taking well informed
decisions.
Incorporating new it practices
AKBL management is quite prepared to adopt the latest advancements in technology
resulting in revolution in the banking operations such as check clearing process, computer
based teller equipment and electronic funds transfers among the others.
Phone banking service
In order to save their customers’ time, AKBL provides the good Phone banking service that
is very attractive especially for those customers who don’t have time to personally visit to the
bank.
Social responsibility
The organizations showing concern for the people, ethics, and environment enjoy good
public reputation and are able to reap the benefits in the long run. AKBL management is quite
sensitive to this issue.
Personalized services
AKBL offers personalized services of the staff to the employees. The management of the
bank believes in customer oriented banking rather than the product oriented banking. The
products and services designed by the bank are specifically tailored to the individual needs
of its customers.
Customer oriented banking
AKBL’s vision is “to be the bank of first choice.” In order to achieve its vision, AKBL offers the
very highest levels of personalized banking to match customer’s unique status. The
priority banking centers of the bank offer an unmatched where the customer receives highly
privileged services in a highly elegant environment. It gives the chance of experiencing new
standards in banking. Designed especially for those who appreciate only the finest things in
life.
Internet banking
AKBL is the first bank to introduce I-banking which provides convenience to our customers
by enabling them to gain access to their account and carry out any transaction sitting at home.
Mobile ATM bus service
AKBL has launched its Mobile ATM Bus Service, which is the Pakistan’s First Mobile ATM
Bus Service. No other bank has taken initiative of mobile ATM Bus yet.
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WEAKNESSES
Although Askari Bank is one of the leading banks of Pakistan but it still has some areas for
improvement. During my internship I found following weaknesses in AKBL:
Irrevocable debts
Due to risks such as political economy and legal the bank has suffered losses the main
reason was piling up to of large amount of irrevocable debts.
Traditional ways of recording transactions
The bank has still some of the traditional ways of operations in this advanced technological
environment. AKBL has use computerized accounting system but, still the bankers use to
make their entries in the accounting register also. For example account opening registers,
manual checking of vouchers.
Individual differences
In Askari Bank the individual difference has strong impact on the organization’s performance
due to wrong criteria of selection of employees. So with the passage of time individual
differences start increasing which undermine the goodwill of the organization.
Poor marketing campaign
Bank’s marketing department is not very strong. Accumulated losses pushed the bank to
cut down its promotional activities in order to reduce expenses for last few years. The
advertising media used by Askari bank for publicity include mostly newspapers and journals.
But the most powerful and effective media is of television through which people in Pakistan
as well as outside Pakistan can have instant information about new products and
developments of ABL.
Job rotation
The employees of AKBL are constantly subjected to job rotation. It keeps back from
gaining complete know-how about a particular department.
Centralized management practices
The management system in AKBL is quite centralized leaving all the decision-making
activities to the upper management only. Employee empowerment is also over looked due to
such management policy. I personally observed that delay occurred in the operations of the
employees only due to the fact that they had not got any instructions from the head office.
Lack of training programs
There is no specific training program arranged for the new recruiters. They have to learn
based on their observations and also their mistakes. It takes a bit time for the fresh one
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to learn the banking the result is huge amount of blunders, mistakes etc. resulting in monetary
and non-monetary losses for the bank. There is pressure not only on the new learner but also
on the person placed upon with this responsibility.
Low job satisfaction
Understanding and the effective management of the human resources is the most difficult
challenge faced not only by the bank but by all the organizations. Even though the people
have been sacrificed in the new organizational developments, it is becoming clear that the
true lasting competitive advantage comes through human resources and how they are
managed. AKBL seems to not focusing on this highly critical issue as the job satisfaction level
of the employees working at AKBL, was quite low.
IT information security section
AKBL also needs to improve its IT Information Security Section as fire walls need to be built
to secure the system to avoid hoax mail. Service quality and marketing efforts at the branch
level also needs improvement for mobilization of CASA deposit.
OPPORTUNITIES
These are positive external environmental factors affecting the AKBL:
Expansion opportunities
AKBL growing business requires further expansion of branch network which would, in
return, open great opportunities for AKBL for the expansion of its business. AKBL can also
extend its network in other countries. Increasing 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. AKBL as a largest Pvt. Bank can
also increase its market share by producing good, market oriented and customer needs
satisfying products.
New modes of banking services
Askari Bank is now looking into new ways of providing banking services to its customers.
New concept of mobile banking has been introduced by the bank, which will prove to be
remarkable success in the field of consumer banking.
Opportunities in loan business
Askari bank is an active player in the loan business. Its strength in loaning stems from its
ability to forge strong relationships not only with borrowers but also with bank investors. Bank
can capture more markets by introducing new products for business community, as it is the
only group, which can contribute more towards increasing the assets of the bank.
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Foreign remittances and trade

Foreign remittances are another area as present worldwide control system over transfer of
currencies through illegal channels has facilitated the area for the banks. Foreign Trade is
the focus of quite a lot banks. It has become an ideal bank for the importers and exporters
but still a lot of opportunities are yet to be discovered.
Recruiting professionals
There is a large pool of free MBA graduates who can be hired to achieve professionalism
on its organizational culture.
Targeting the computer literate segment
Now computer literacy rate is increasing and its really big opportunity for Askari Bank that
when public will have more knowledge about computers than they will be more attractive to
the innovative products of Askari bank.
Growing demand in leasing business
Increasing need and potential of leasing in Pakistan provide ABL an opportunity to utilize its
skills and efficiencies in leasing business as well.
Technological advancements
IT has become the future of many organizations in this 21st century. AKBL also has an
opportunity to expend its new technological advancement like, Tele banking and Internet
banking facilities in order to serve the customers more efficiently.
Foreign investment
Due to efficient and experienced management group, AKBL can also improve well and
expend its foreign operation successfully. It is external opportunity for Askari commercial
bank to avail it and take a competitive edge and create a strong identity worldwide.
Branches in remote areas
AKBL can expand its market segmentation geographically by extending its banking
services to remote areas where the banking needs of people have not been previously met.
Offering Islamic banking in all branches
Currently, AKBL entertains Islamic Banking in only a few of its branches. By offering its
Islamic Banking services in all of its branches, AKBL can definitely have an edge over its
competitors.
Increasing customer deposits
It is opportunity for Askari commercial bank to steady increase customer deposit by adopting
new marketing and promotion scheme and lunch new scheme for their customer.
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Use of ATM as a credit card

It can be an opportunity for AKBL to introduce ATM also as a credit card which will invite a
different segment and which will improve profitability. They can also cut costs in this way.
E-banking
AKBL should emphasize on E - Banking. In which Bank can design a universal account like
other foreign banks, to enhance online facilities.
International presence
International presence should be taken as an opportunity to get more business and to be
known all over the world. The network within Pakistan should be expanded since the industry
is growing and flourishing.
Branchless banking
The bank has recently started branchless banking. However, full potential has not been
capitalized as there are unbanked sectors to which the bank needs to increase its outreach
and financial inclusion.
THREATS
Political instability
Political instability is also threat for the bank because instability leads to lower business.
The same situation is prevailing in Pakistan.
Inflation
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.
Competition by foreign banks
Increase in competition due to increasing number of foreign banks offering highly specialized
and attractive services.
Promotional activities of competitors
Extensive promotional campaigns run by competitors are another threat for AKBL.
Competition by local banks
As the AKBL leading in the domestic commercial banking sector in Pakistan, as such there
are no close competitors of AKBL but every commercial bank is the competitor for each
other. But mainly these are Habib Bank Limited, Bank Al-Falah, MCB etc. they are threats for
AKBL. At any time they can capture the clients of AKBL by providing any benefit more than
that.
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Low attraction for investors

As the banking procedures are complicated that is why general public takes interest into other
options of investments like in shares of companies and in Term Finance Certificates.Being a
commercial bank, AKBL faces considerable competition in attracting deposits from
individuals or small investors.
High employee’s turnover
Employee satisfaction level is very low in AKBL due to stiff managerial policies. Thus, its
employees shift to other organizations whenever they get an opportunity resulting in high
turnover which is not a healthy sign for the bank. If this continues in the long run, then
AKBL may lose its repute.
Recruitment procedures
AKBL high employee turnover creates a need for fresh recruitment. Recruitment is a quite
expensive, time-consuming and complicated procedure.
High charges
The charges of the services that the bank receives from the customers are higher than their
competitors. So it loses many customers for this reason. The schedules of charges indicate
that the fees charged by the bank on the various services it provides are extremely high. It
may result in decrease in the number of its existing customers.
Less experienced staff
AKBL is short of experienced and well trained staff owing to high turnover. Majority of the
staff working in the bank branches is quite young and inexperienced. If the bank fails to bring
down its high employees turnover, then it would be lacking the most important resources of
any organization i.e. the experienced staff.
Legal regulation
Frequent change in government policies creates new challenges for the top management.
AKBL also faces such threats particularly when policies regarding taxation are subjected to
changes. It is always threat for commercial banks. Because SBP is the role authority of
Government, which monitors all commercial banks affairs, whenever it feels any regulation,
it imposes without consideration of commercial banks plans etc.
3.4 PESTEL analysis
PESTEL is an acronym that stands for Political, Economic, Social, Technological,
Environmental and Legal. It is used to describe an analysis that is used for determining the
opportunities and risks of global expansion. Sometimes it is described as a PEST or PESTLE
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analysis. Askari bank identified sustainability as a means of recognizing and managing the
economic, social and other environmental issues across the groups and at the same time,
contributing to the wellness of society. PESTEL analysis helps in identifying the external
factors that are or may affect the operations of an organization.
Political Analysis
Askari Bank is operating in one of the world’s most volatile political environment. On one side
there is a very week and unpopular government and on the other there is war against terror
going on. Since Askari bank was a part of Army Welfare Trust which is run by Pakistan Army
so it has the advantage of not being interfered directly by the government but political forces
impact Askari’s business through consumers and businesses which are affected directly by
political instability. Over past 10 years, Pakistan has been a victim of political instability. The
main reasons behind it are war on terror, martial law, American interference in Pakistan and
corruption. Operating in such a volatile political environment, AKBL is facing numerous
challenges.
AKBL has been surrounded by political factors such as
 Unpopular and weak government

 High level of corruption at all political levels
 Intense political activities throughout the country
 Violence in Karachi
 Military operation in SWAT And FATA
 Militancy affect Pakistan repute in the world
 High tax rates
 Frequent changes in taxation policies
However, AKBL has been successful in meeting all these political challenges as it has the
advantage of a strong army background and also because it is considered as the most
safe bank in the eyes of the customers.
Economic Analysis
The outlook for the Pakistani banking sector remains relatively downbeat despite the
potentially vast consumer market in the country. The purchasing power of the customers is
seriously hampered because of the weak economic indicators such as high inflation,
unemployment, etc. Pakistan has several characteristics that make for a favorable banking
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sector outlook for instance buoyant demographics, a domestic economy geared towards
private consumption and an extremely under-banked population. However, we should not
expect rapid sector development over the medium term as these positive factors are
neutralized by an unstable security/economic outlook , effecting the repayment capacity of
the borrowers , a below-potential growth path for the economy , and domestic/international
recession that has put a lot of pressure on the economy. Due to these facts AKBL, like other
banks has been bombarded with frequent economic loops and bounds namely:
 High rate of inflation

 Substantial decrease in foreign direct investment
 Fluctuating interest rates
 High cost of living
 Huge gap between different income groups
 A decrease in disposal income
 Immense increase in government debt
 Energy crisis
 High rate of interest
Due to high rates of inflation, people have been driven away from the culture of savings as
the cost of living has increased and thus customers have few or no savings to deposit with
bank. The gap between different social classes has also grown strong and vast thus it has
become quite a challenge for AKBL to meet the needs of all income groups. Energy crisis on
the other hand has negatively affected many businesses who are also the customers of AKBL
Loans accepted from the World Bank by our government have led to huge national debt,
which is the cause of many economic ills, particularly the depreciation of Pak rupee and stiff
tax policies. Thus AKBL is forced to increase its prices charged for the services and products
that it offers. Credit department of AKBL has also experienced a slight decrease in its
business as a reaction of high rates of interest that the customers have to pay for the loan
that they advance from the bank.
Social analysis
Being a socially responsible bank, AKBL takes a keen interest in analyzing and then
anticipating social changes taking place in the society. In the past few years, customers have
become more conscious about Islamic modes of banking and therefore, AKBL has introduces
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Islamic banking in some of its branches. Also as mentioned earlier, saving culture has
somewhat faded in Pakistan so AKBL has taken initiatives to offer other products as well in
order to keep its business going. There has been a marked increase in the use of credit cards
in Pakistan but the usage is currently limited to educated middle class only. At the same time
accelerated by the spread of internet in the country people are more inclined to use the net
to do banking transactions specially bill payments and within the bank transactions. Since
Askari bank has the reputation of being a conservative bank some consumers are quite loyal
and will stay with the bank even under tough economic situation or in the presence of
alternatives.
Technological Analysis
Technology makes it possible to empower the system and establish a competitive advantage.
Pioneering the new ideas, adding the skills and operational excellence are part of the guiding
principle of the organization. Askari has recently been investing heavily in information
technology. They use state of the art software “Flex cube” for branch banking which captures
almost all the requisite details of the customer and various MIS reports for senior
management analysis and decision making can be facilitated from the said software.
Environmental analysis
As Pakistan is an agro-based economy, so the operations of AKBL also affected by the way
agricultural products are affected by environmental factors such as climate and weather
conditions. The product of Askari bank named “agricultural loans” is specially affected by it.
People have now also become more conscious about green products so they value the
organizations taking active part in it. AKBL has launched many awareness programs in this
regard. Recently when floods hit many parts of Pakistan, AKBL was again seen active in
helping the victims.
Legal analysis
AKBL has also been facing challenges as the legal priorities shifted time to time due to
changes in government policies. Although the procedure of preparing financial reports has
been the same but taxation policies, security concerns and legal papers regarding trade
business have been changing due to trade legalities. Increase in minimum wage rate, rights
given to minorities in Pakistan has also impact on AKBL’s operations.
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3.5 Marketing Strategy

Before discussing marketing operation of Askari commercial bank I want to clarify Marketing
and the Marketing Department are two different things. Marketing might best be defined as
all organized efforts, activities and expenditures designed to, first, acquire a customer and,
second, maintain a customer. The Marketing Department is a unit of organization,
traditionally charged with carrying out specific tasks that are deemed to be "marketing" (such
as advertising, market research).
Marketing Mix
Marketing involves a range of processes concerned with finding out what consumers want,
and then providing it for them. This involves four key elements, which are referred to as the
4P's (the marketing mix). A useful starting point therefore is to carry out market research to
find out about customer requirements in relation to the 4Ps.
Marketing operation of Askari commercial bank is to identify the needs and wants and provide
the right product at right price at right place. Askari commercial bank use different marketing
strategies to avail the opportunity to full fill the consumer demand and it lunch different kinds
of scheme. Askari Bank is financing products of different companies, which would benefit
those people who can only afford to buy home appliances on installments due to limited
resources. In addition to this, bank has also signed agreements with other top manufacturers
of automobiles for financing of motorcycles to the general public at most competitive rates.
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The top management must continuously Focus on the Customer, Monitor the Competition,
Find & Direct outside Vendors, Create New Ideas to attract customer and Set the Strategy,
Plan the Attack, and Execute To attract the customer Askari commercial bank offer different
types of product and service according to customer need Wants and expectation
Marketing operation are performed by the employees working in these departments like auto
finance department, agriculture department, consumer financing department and customer
service department. The target of this bank is to increase in the deposit of the bank as
compared to competitors. The employee is very talented and knows the value of customer
for example in agriculture department the head and junior officer provide detail about the
agriculture products and they do marketing in the shape of banners new ad and try to create
the attraction of the customer toward the organization and the auto finance department the
employees there providing information about the auto financing and in the consumer
financing department the employee there are responsible to do the marketing operations for
consumer financing. The marketing operation is done through the use of media like on TV
people see the Ad of different types of accounts the Askari bank offer to its customers. The
main media the Askari bank used for advertisement of their products and services is the
internet. The Askari bank has very attractive website any person can go on this website and
collect all the details about the products and services the Askari bank offer to its customers.
Target market strategy

The focus of marketing effort is people. The goal is to reach a subset of the population who
may be interested in your particular product. That group of people is your target market. The
target market of Askari commercial bank is given below which is based on
Objective of the organization which it want to achieve target market of askari commercial
bank is
 All Army related institution

 Customer having deposit
 Kissan
 Customer who wants to purchase vehicle
 All agriculture related communities
 Customer desires different loan
 Kissan
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 School college and business industries

 Financial invertors
 Consumer having interested to purchase on leasing
 Religious group interested in Islamic Banking
 Group of people needs to get banking services such as utility bills collector
The term target market is used because that market is the target at which you aim all your
marketing efforts. The markets you are trying to reach are people with common
characteristics that set them apart as a group. The more we know about a target market, the
more precisely we can develop our marketing strategy. The reason you need to identify a
target market is because it makes strategies for designing, pricing, distributing, promoting,
positioning and improving our product, service or idea easier, more effective, and more cost-
effective. Two important factor to consider when selecting a target market segment are:
 Attractiveness of the segment

 Fit between the segment and firm’s objective
Segmentation strategy
Askari commercial bank segment their market geographical demographic and Niche
marketing Askari bank belongs to Pakistan Army, and the size of the this market is very small
as compares to other markets so the niche market for Askari Bank is Pakistan Army and
there is competitor belong to this segment. Askari commercial bank offer different product for
different segment and target customer in demographic segment it divide the market into age
wise for example student 12-30 and retired or pensioner 40-65.In geographical segment the
Askari bank divide their segment religion and cities the most population of Pakistan is Muslim
so it offer both Islamic banking and commercial banking for religious group it offer Islamic
banking free of interest rate and for secular group it offer the commercial banking In
demographic segment it divide the market into age income education occupation and
nationality. For student Askari commercial provide Askari special deposit account Askari
commercial bank has also segment their market in occupation the target audience that are
related to agriculture provide them different kind of schemes.
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Positioning
In marketing, positioning has come to mean the process by which marketers try to create an
image or identity in the minds of their target market for its product, brand, or organization. It
is the 'relative competitive comparison' their product occupies in a given market as perceived
by the target market.positioning is how you want to be known it must reflect reality. How the
company really is known. Or how it can believably be known
Askari commercial Bank has strong positioning in the mind of their customer or target market
due to its product unique attribute characteristic feature and superior service. Top
management always try to different their product and service using different Promotion
scheme to communicate their audience and create strong identity AKBL shorter, smarter
name, crisper new colors and fresh new look are an insight to our views on banking. The aim
to provide innovative financial solutions to customers, with the security of knowing they are
dealing with one of the strongest financial institutions in the country.
AKBL new slogan reflects customer service philosophy and provide them 24/7
information through online and call center and listen customer complaint
and provide them For submitting an online complaint regarding bank related issues (e.g.
account, credit card, debit card) A carefully crafted business positioning strategy can be used
as a guideline for judging the appropriateness of all marketing programs, especially for
promotion, advertising, and PR events. It will ensure that our business image is consistent to
your target buyers/end users and help to build an enduring, memorable (and hopefully
unique) message to sell your business products
Positioning is based on idea that customer keep in mind the positioning of Askari commercial
bank toward the customer is that it is only bank which provide convince and dynamic
environment to their customer each product of AKBL has its own positioning in the mind of
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the customer for example Askari rupee traveler cheque is consider secure way to transfer the
money from one particular place to another and it has a strong identity in the mind of customer
It is necessary to create a strong identify in the mind of customer that product has some
quality attribute that create superior value in customer mind
Askari commercial Bank has strong positioning in the mind of their customer or target market
due to its product unique attribute characteristic feature and superior service It has necessary
to keep in the mind that each product and service has its own positioning in the mind of
customer .To create strong positioning of organization and its product and service the AKBL
limited use different marketing strategies such as advertisement sale promotion personal
selling and publicity to create the strong image and convey their message to customer.
Pricing Strategy
Pricing is one of the four Ps of the marketing mix. The other three aspects are product,
promotion, and place. Price is the only revenue generating element amongst the 4ps, the rest
being cost centers. Askari commercial bank use different price strategy for different products
and service to Achieve the organization Financial goals for each product it use different
strategy when any new product is lunched by the Askari commercial bank the top
management of the organization must the see the marketing objective Before selecting a
suitable price for a product, the marketer is needed to review the company's objectives. The
more clearer the company's objectives the more easily to set a price.Following are the
possible pricing objectives:
 Survival
 Maximum current profit,
 Maximum market share,
 Maximum market skimming,
 Product quality leadership.
When the management set its marketing objective its position in the market and the product
nature where it is innovative product and create monopoly in the market when the top
management set its pricing objective then stage of setting the price of the product come
Following are the steps in setting price for a product:
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 Selecting the pricing objectives;

 Determining the consumers' demand;
 Estimating costs;
 analyzing the competitors' costs, prices and offers;
 Selecting a pricing method;
 Selecting the final price.

Distribution strategy
Distribution or place is one of the four elements of marketing mix. An organization or set of
organizations (go-betweens) involved in the process of making a product or service
available for use or consumption by a consumer or business user. AKBL has 220 branches
through which it offers services to its clients. The distribution channels are its employees
who deal with customers Distribution strategy of banking sector is different from consumer
consumable product Askari commercial bank use its own distribution channel to promote
their product when any product is lunched by Askari commercial bank to make the product
available to final user it is distributed to its all branches Askari commercial bank has one
fifty branches where customer can avail product and service and also gain information
related to product and service Askari Bank has expanded into a nationwide presence of 220
branches, and an offshore banking Unit in Bahrain. A shared network of over 5000 online
ATMs covering all major cities in Pakistan supports the delivery channels for customer
service.
Promotion Strategy
Promotion is a form of corporate communication that uses various methods to reach a
targeted audience with a certain message in order to achieve specific organizational
objectives. Nearly all organizations, whether for-profit or not-for-profit, in all types of
industries, must engage in some form of promotion. Under the concept of Integrated
Marketing Communication ACBL attempt to develop a unified promotional strategy involving
the coordination of many different types of promotional techniques. The objective of
promotion strategy is to getting customers to buy an organization’s product and, in most
cases, to remain a loyal long-term customer. Through following ways AKBL is promoting their
business:
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3.5.7.1 Advertising
The main source is used by AKBL is advertisement it involves non-personal, mostly paid
promotions often using mass media outlets to deliver the marketer’s message. While
historically advertising has involved one-way communication with little feedback opportunity
for the customer experiencing the advertisement, the advent of computer technology and, in
particular, the Internet has increased the options that allow customers to provide quick
feedback. Advertising in News Papers and Television is used as a marketing tool by AKBL
However it is often used when a new product is introduced
3.5.7.2 Bill Board

Another source used by AKBL to convey message is billboard the main areas of urban era
near the school/college airport and high traffic areas the bill board are placed to convey
message
3.5.7.3 Broachers
The Bank publishes various brochures for the general guidance of the customers. These
include the Schedule of Bank Charges, VISA Card Information, and Savings & Term Deposit
Information etc.
3.5.7.4 Personal Selling

Personal selling is also a norm at the Bank. The branch has well learned sales executives
i.e., Business alumnae. Personal selling is used both for attracting individual and corporate
clients
3.5.7.5 Internet
Askari commercial bank use internet as a promotion tool to convey the message to the target
audience all the information related to product and service and the organization is available
on the internet.
3.5.7.6 Social marketing

AKBL has made generous contribution in the area of sport culture poverty woman & child
care health & medical science human development and scientific research AKBL sponsored
international squash tournaments were professional from all over the world participated
Askari commercial has also sponsored other sports tournament include Golf at both amateur
and professional level the bank has also contribute toward awareness program for AIDS
water conservation and blindness and has promoted the country 's cause on international
forum by cosponsoring the first interactive encyclopedia of Pakistan
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3.5.7.7 Public Relations

The most popular tool use by the banker and manger to increase their deposit crate
awareness and loyalty public relation s also tool of promotion
3.5.7.8 Publicity
This type of promotion uses third-party sources, and particularly the news media, to offer a
favorable mention of the marketer’s company or product without direct payment to the
publisher of the information. For example media cover any Tournament that is sponsored by
AKBL.
3.6 Competitive strategy

As Askari more on to device a strategic plan for coming years for Askari bank, it need to
constantly remind itself that the margins are shrinking. Although Askari Bank is subsidiary of
Fuji fertilizer fund and initially it was owned by army welfare fund and it’s a great edge for it
.The number of financial players in the market has gone up several times since the early 90’s.
Not only the number of players has increased many folds but they are also much better
equipped with much stronger capital bases, reach and competent managements. One thinks
which make it superior and better to competitor it has fully automated operation if we see
other bank suck like National bank of Pakistan the procedure to receipt or payment to bank
is very difficult and time consuming. Because the use old and traditional method and Askari
bank use new computerize technology. The environment of Askari commercial bank is good
dynamic and attractive as compare to other banks.
Competitors
3.6.1.1 Public Sector bank
 National Bank of Pakistan 1219

 The Bank of Punjab 255
3.6.1.2 Local Private Banks
 Allied Bank Ltd

 Bank Al-Falah Ltd.
 Bank Al-Habib Ltd.
 Faysal Bank Ltd.
 Habib Bank Ltd.
 Meezan Bank Ltd.
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 MCB Bank Ltd.

 United Bank Ltd.
3.6.1.3 Foreign Banks

 Standard Chartered Bank Ltd
3.6.1.4 Specialized Banks
 Zarai Traqiati Bank Ltd.
3.7 Porter’s Five Forces Analysis

Askari is attempting to expand their business and services. Through the investigation of the
competition and entry in these markets, the sustainability of the bank can be identified. The
Porter’s analysis is used to measure the ability of the firm in performing in the Pakistani
market.
Entry Barriers - High
 Very high investment required

 Many large banks in the market
 Strong Regulator
 High capital reserve requirement
Rivalry among the Existing Competitors
 Very high Rivalry
 High operational costs

 Public and Micro Finance institutions
 Strong regulator
Bargaining Power of Suppliers
There is a medium power among the suppliers of the bank who are definitely the people from
whom the banks raise funds. The major source of funds of Askari comes from the customers
or depositors that are transformed to be their suppliers. In order to attract the larger funds,
the private banks offer high interest rate which is important for the continuous sustainability
of the bank. In addition, the Askari Card is introduced to attract more clients and increase the
volume of funds.
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Bargaining Power of the Customers - Stable & Increasing

Retail clients do not demand higher interest rates and do not move accounts frequently
corporate clients seek highest return on their deposits and move accounts. There is a high
power among the people in terms of utilizing the products such as their cards, loans and other
services. The high power on the customers is gained because of the number of banks
operating in the market that offer similar services. However, Askari is in advantage because
of the e-banking and ATM network.
Threat from Substitutes - Low
 Highly developed capital market.

 Mutual Funds, Bonds, on-line trading and investment.
3.8 Business Process Analysis
Profit
Operating profit i.e. profit before provisions and taxation for 2016 declined by 16.0 percent
over last year as revenues sustained and administrative costs increased due to additional
expenses of strategic branch expansion being pursued by the Bank. Net interest income
slightly increased due to the offsetting impact of decline in rates with the growth in funded
business. Non-interest income increased by 6.2 percent as compared to last year, while the
operating expenses increased by 16.5 percent. A net reversal of provision against
nonperforming assets amounting to Rs. 659 million enabled the Bank’s profit before tax to be
maintained at last year’s level. Profit after tax for the year 2016 amounted to Rs. 5.22 billion,
registering an increase of 3.5 percent over Rs. 5.04 billion in 2015.
Profit in Millions
10000
8000
6000
4000
2000
0
2014 2015 2016
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Deposits
During the year 2016, growth of 9.2 percent was achieved in customer deposits. The pattern
of deposit mix improved; current accounts increased by 18.7 percent; saving deposits by 8.2
percent; while term deposits remained at almost last year’s level. The average deposit per
depositor improved by 4.3 percent depicting improvement in deposit concentration and
expansion of core deposit base.
Deposits in Millions
500000
450000
472811
400000 433172
350000 387587
300000
250000
200000
150000
100000
50000
0
2014 2015 2016
Earnings per share

EPS reflects profit after taxation generated during the year for each share. EPS of the Bank
for the year 2016 was recorded at Rs. 4.14 against Rs. 4.00 for last year. This was mainly
due to increased volumes of earning assets and a net reversal of provisioning against non-
performing assets, during the year.
Earning per share in PKR

4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
2014 2015 2016
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Return on assets
The ROA of the Bank for the year 2016 has decreased because of increase in average assets
by 17.5 percent while profit after taxation increased by only 3.5 percent.
ROA in Percentage
1.05
0.95
0.9
0.85
0.8
2014 2015 2016
Non-performing loans
NPLs of the Bank as on December 31, 2016 reduced by 9.4 percent as compared to the last
year. This mainly represents the outcome of Bank’s recovery strategy against bad loans. On
the other hand, gross advances grew by 14.8 percent, from Rs. 228 billion at end 2015 to Rs.
262 billion at end 2016, thus NPLs to gross advances ratio improved from 13.8 percent to
10.9 percent in 2016.
NPLs in Millions
32000
31500
31000
30500
30000
29500
29000
28500
28000
27500
27000
2014 2015 2016
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CHAPTER 4
4 INTERNSHIP EXPERIENCE
4.1 WEEK 1
My internship started in the Account opening department where Ms Mussarat guide me
about the work related to the accounts section which is primarily doing the work of checking
all the financial activity going on in the bank and it is done on both the customers and the
banks expenditure level. The daily activity that happens on one day is matched to the reports
generated by the bank’s central information system on the other day and proof of the
transactions in the shape of Cheques, deposit drafts or online vouchers are checked for the
information that is provided in the report and then if cleared they are saved to be inspected
by all the auditors and in case there is a problem and some record is missing, the bank staff
goes to tremendous lengths to recover the missing articles and then move the reports
because besides affecting their personal performance it also has a bad effect on the bank’s
and the branch’s overall performance in the shape of an objection from the audit team.
Account Opening Form (AOF)
The bank officer must assure that the customer fills each and every column of account
opening form correctly with all necessary details. The specific information about the business
or occupation of the customer is recorded in the form. It is preferred that the customer in the
presence of introducer fills account opening form.
National Identity Card
The bank officer check that number of national identity card is correctly recorded in the AOF
and a copy of national identity card is kept in record by the bank.
Specimen Signature Card (SS Card)
The bank officer takes signature of customer on AOF and specimen signature card. Latterly
This card I scanned in the computer and whenever customer make any transaction in this
account then his signature is verified by it.
Individual Accounts
Individual accounts are classified as:
 Accounts of illiterate ladies and gentlemen
 Minor Accounts
 Joint Accounts
Documents required to open individual account are:
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 Account Opening form (AOF)

 Specimen Signature Card
 Copy of CNIC
Accounts of literate ladies and gentlemen
In case of illiterate ladies and gentlemen, two photographs are required. One is pasted on
AOF and other is pasted n SS card. Instead of signature, left-hand thumb impressions are
obtained on specimen signature card from gents and right hand thumb impression from
ladies. At the encashment of Cheques, these customers are advised to attend bank
personally and put their thumb impression on the Cheques. If the Cheques is presented
through clearing then it will also only pay to the customer.
Minor Accounts
The minor can only open the saving account and only jointly with their guardian. And guardian
will also sign the AOF and SS card.
Joint Accounts
The bank will fulfill the stop payment instruction of any cheque lodged by any member of joint
account but removal of these instruction must be signed by all the member. If any member
dies then there will be no transaction is the account and balance in the account will be paid
according to instruction recorded at the time of account opening. The member of joint account
can delegate authority to any third party to operate the account. Al the members Sign such
mandate but it will be cancelled if any of the member dies, insolvent or insane.
Partnership Firm Account
The documents required for these accounts are:
 Account Opening Form
 SS Card
 Copy of CNIC of all Partners
 Copy of registration certificate
 Copy of partnership Deed
Know your customers (KYC form)
The objective of knowing a customer is to have a fair idea about the identity, financial
resources, and general information about the customer at the time when the relationship is
established. A banker must have following information about the customer:
Customer name
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Enter complete name as mentioned in original ID card /other business documents.

Nature of business /profession: if customer is of salaried class enter his employer name. If
the customer is a businessman, traders, sole proprietor, enter the business name, for
example “ABC Traders” etc. Also enters the customer’s title/position and address of the
business/employer.
Address
Enter the complete business/residential address. Within the brackets you may also provide
prominent address identification marks for ease of physically locating the address.
Contact Numbers
Enter home, official, mobile, fax number and e-mail address (if available). Banker can verify
the number by giving the customer a courtesy call or by sending him an e-mail.
Change Contact Numbers
After Opening A/C contact can be change by receiving an application from customer with
specify new contact.
Other/ secondary/ mailing address
Some customer may volunteer their parents or siblings’ addressor second home address or
a mailing address other than a permanent address.
Special instructions
Clear-cut special instructions must be obtained from customers. If the customer has not given
any special instruction specified column must be cancelled by drawing a line, as this column
must not be left blank in any circumstance.
4.2 WEEK 2
In 2nd week of internship I was placed in Remittances Department where Sir Karamat told
me the instrument and the working of the department in very polite and informative way.
Askari commercial bank provides this service to their customer, as well as general clients.
The functions of remittance departments are to handle with the following instruments:
 Pay Order
 Demand Draft
 Foreign Demand Draft
 Pay slip
 Telegraphic Transfer
 Foreign Telegraphic Transfer
 Payment of Remittances
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 Cancellation of pay order & demand draft

The remittance department deals with the transfer of money from one place to another.
Remittance can be made through:
 Instrument transfer
 Electronic transfer
 Mail transfer
Instruments of the remittances departments
4.2.1.1 Pay order
Pay order is issued for payment in the same city because it is issued form one branch can
only be payable form the same branch. All the procedure of pay order is same as in the DD.
The only difference is that in pay order the distinction is not specified, i.e. the issuing and
paying end of pay order is same branch. Pay order issued from one branch only be payable
from the same branch. It is normally issued for payment in the same city. It is normally
referred as banker's cheque. Following procedure is followed for pay order:
 Get the application form.
 Issue pay order after recovering Cheques/ Cash
 Do necessary vouchering.
 Make entry in PO issue register.
 All pay order shall be crossed" payees account only".
4.2.1.2 Duplicate Pay Order
Check the record to insure that payment has not been effected. Procedure of duplicate pay
order is given below:
 Get application for issuing of duplicate PO.
 Recover charges.
 Issue duplicate pay order.
4.2.1.3 Demand draft
It is an instrument on demand for which value has been received, issued by the branch of the
bank drawn i.e. payable at some other place (branch) of the same bank. Demand draft can
also be issued by one branch of the bank payable to other branch of the other bank e.g. DD
issued by AKBL payable by MCB.
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4.2.1.4 Telegraphic transfer or telex transfer

Telegraphic Transfer OR Telex Transfer is swift way for remittances from place to place.
Simply a request received from a customer to make TT either account debit or Cash received.
TT sends to the beneficiary Bank. In case of branch is not present then other Bank or financial
institution make payment to the beneficiary.
4.2.1.5 PAY SLIP
It is used by the bank for the settlement of its own payment of expenses. The contractor in
favor of agencies makes call deposit receipts. After the approval of the bid, when the
contractor complete their work then release of security letter is issued by the agency. If the
contractor has no account then its cash payment is made by the pay slip. No excisable duty
and commission is charges on pay slip.
4.3 WEEK 3
In 3rd week of internship there was audit in branch and I was placed in General banking
department where I come to know about the reports which are being prepared in daily basis
in the branch which has been given below:
 Daily Non-Financial Transaction Reports
 General Ledger Reports
 Subsidiary Ledger Reports
 Statement of Secured Over Drafts Allowed Reports
 Reports of Pricing Calculation
 Daily Security Transaction Reports
 Transfer Register Reports
 Statement of Condition
Above mention reports having different information for management use some of which are
mention as follows:
Statement of condition report
This report having information of liabilities & Assets along with G/L Head.
Liabilities items:
 Current deposits
 Unique Deposits
 Value plus Current Deposit
 Call Deposits
 PLS Term Deposit
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 Value plus Saving Deposit

Assets items:
 Foreign Currency on Hand
 Cash on Hand (PKR)
 Cash In ATM
 MO Account Head Office
 Expenditure Account
 PLS Profit Paid Account
This report is important for management in the decision making which depict the actual
picture of the branch. Deposits are important to increase the branch profit.
Daily non-financial transaction report
Both financial & non-financial transactions are important therefor reports are being produced.
In the non-financial report following information are recorded:
 Account Open / Name & Open date
 Address
 Fixed Date
 Interest information
 Loan interest information
 Loan disbursement / Repayment Cash
 Account Status
 Cheque Book issue
 Cancel Cheque
 Stop Cheque
 Block Amount
 Release Amount
 Claim Limit
Such information included in the non-financial reports which are important for the record and
customer inquiry
4.4 WEEK 4
In 4th week of internship I was placed in Clearing department where Sir Asad Javed
elaborate the whole working of the department in very practical manner by giving me some
small tasks as well. The word clearing has been derived from the word “Clear” and is defined
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as “ a system by which banks exchange Cheques and other negotiable instruments drawn
on each other within a specific area and thereby secure payment for their clients through the
Clearing At specified time” in an efficient way”.
Through NIFT clearing is made either Intercity or within city clearing lets understand what
NIFT is and how it is working:
NIFT - National Institutional Facilitation Technologies
NIFT - National Institutional Facilitation Technologies (Pvt.). Ltd. Was incorporated in
September 1995 as joint venture between a consortium of six banks and entrepreneurs from
the private sector. All commercial banks and all of their branches in major cities avail NIFT’s
services. NIFT has setup elaborate data centers geared to provide automated services for
document processing particularly in the payment arena. Modern image based facilities have
been established at Karachi, Lahore, Islamabad, Peshawar, Rawalpindi, Hyderabad, Multan,
Faisalabad, Quetta, D.I.Khan, Sialkot, Gujranwala, Sukkur, Bahawalpur, Muzaffarabad,
Jhelum, Abottabad, Mirpur, Sahiwal and Sargodha. The services include cheques clearing,
reconciliation, ‘return’ (unpaid) cheques processing, same day clearing (express – 2 hrs.
clearing service), intercity clearing and inter branch & interbank settlement. Services are
provided at individual branch level to over 5571 branches in 184 major cities and smaller
cities.
4.4.1.1 NIFT Rider
NIFT riders come in a bank (Branch) twice in a day for inward and outward clearing Cheques
& instruments for collection and delivery at specified time.
Outward clearing at the branch
The following points are to be taken into consideration while an instrument is accepted at the
counter to be presented in outward clearing:
 The name of the branch appears on its face where it is drawn.
 It should be stale or postdated or without date.
 Amount in words and figures does not differ.
 Signature of the drawer appears on the face of the instrument.
 Instrument is not mutilated.
 There should be no material alteration, if so, it should be properly
authenticated.
 If order instrument suitably indorsed and the last endorsee’s account being
credited.
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 Endorsement is in accordance with the crossing if any.

 The amount of the instrument is same as mentioned on the paying-in-slip
and counterfoil.
 The title of the account on the paying-in-slip is that of payee or endorsee
(with the exception of bearer cheque).
If an instrument is in order than our bank special crossing stamp is affixed across the face of
the instrument. Clearing stamp is affixed on the face of the instruments, paying-in-slip and
counterfoil (The stamp is affixed in such a manner that half appears on counterfoil and paying-
in-slip). The instrument is suitably discharged, where a bearer cheque does not require any
discharge and also an instrument in favor a bank not need be discharged.
The instrument along with pay-in-slip is retained while the counterfoil is given to the customer
duly signed. Then the following steps are to be taken:
 The particulars of the instrument and the pay-in-slip entered in the outward
clearing register.
 Serial no. is given to each instrument.
 The register is balanced; a regular report is generated after entering clearing
instruments in the software (Inward outward clearing system. Balance of
report compare with manual register balance to avoid omission.
 Then a particular voucher is filled with total amount of Clearing.
 All instruments with grand sum voucher put into a bag.
 NIFT rider come and takes bag for out ward clearing.
 For inward clearing bag reached at morning in the branch.
However the amount is kept in float till final status of various instruments is known from
respective paying banks in second dealing. The entry of the instrument returned unpaid is
made in Cheques returned Register. If the instrument is not to be presented again in clearing
then a covering memo is prepared. The covering memo along with returned instrument and
objection memo is sent to the customer who sent the same to his account.
Inward clearing of the branch
 The particulars of the instruments are compared with the list.
 The instruments are detached and check the corresponding account if
balance is available then Debit the account.
 Floating status is now realized at corresponding branch which send
instrument for clearing.
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Inward cheques returned unpaid

These are the cheque returned unpaid by us in inward clearing due to some objections such
as signature problems, name issue, date issue etc.
Out ward cheques retained unpaid
These are the cheques retained unpaid to us which were lodged by other bank because of
some objection e.g. Insufficient balance, improper information.
4.5 WEEK 5
I was placed in the Risk Management Division (Credit Risk Department) in my 5th week of
internship period with Sir Asjad Butt. Credit Risk department basically works to mitigate the
credit risk (Risk of borrower’s default) faced by the bank by evaluating credit proposals on
the basis of State Bank of Pakistan’s regulations and banks risk management policies set by
the senior management. RMD in Askari Bank performs the following basic functions in order
to manage the risks across all business segments.
 Maintaining an effective risk review system that identifies loan with credit
weaknesses.
 Identifying relevant trends affecting collectibles of the loan portfolio and isolate the
problem areas.
 Formulation/review of credit policy and procedures.
 Identification, reporting measurement, monitoring and controlling all major risks
created at all levels through risk quantification based on qualitative and quantitative
factors.
 Recommend in the risk appetite, the tolerance limits in consultation with relevant
authorities for various business segments and industries to ensure minimum
expected and unexpected losses, under Basel 2 accord and establish a risk based
capital framework.
 Periodic reporting to the board of directors and RMC (Risk Management
Committee) about adequate system controls, risk appetite compared to its
exposure Review of credit procedure manual for implementation of the policy in
coordination with credit division.
 Periodical review of financial results to determine if changes need to be made to
the credit risk policy
Following are the general considerations for credit proposal and the procedure adopted by
Askari Bank for the credit approval and review process.
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Factors involved in consideration of Credit Proposals

The bank before granting any credit facility to its customers usually analyzes the following
factors.
4.5.1.1 Four C’s of Credit

The bank makes sure that there is sufficient assurance that the customer can and will pay
back a loan. In this regard the management considers the five “C‟s” of credit each time a loan
is processed. They briefly are the following:
Character
The integrity of the borrower is of paramount importance and can take precedence over the
value of securities offered. The sponsors and management shall be the persons of undoubted
integrity. Information should be obtained as to whether they have been known to keep their
commitments or have been defaulters in respect of any facility allowed in the past by the bank
or any other bank. It shall also be ensured that none of the concerns in which they have been
actively engaged has been liquidated or has not a bad reputation. Independent enquiries
from the market/suppliers, other banks, Government departments may be tapped by credit
officers in this respect.
Conditions
Business and economic conditions such as strikes and acts of God are often outside our
control and hard to quantify. However, the bank shall analyze the possible impacts of worst
case scenario on the business of the borrower.
Capital (Equity Contribution)
The customer should have sufficient funds as his own stake in the business. Prudent bankers
are reluctant to finance borrowers who do not invest enough of their own in the business. A
credit proposal should, among other considerations, be judged from the angle of the
borrowed funds to equity ratio to establish customers‟ stake in the business.
Collateral / Security
To protect the interest of the bank against any risk, the credit facilities should be adequately
secured. Security accepted should be enforced in accordance with the laws and practice of
the country. The security ideally should be readily realizable and to which bank has
unhindered access.
Capital (Equity Contribution)
The customer should have sufficient funds as his own stake in the business. Prudent bankers
are reluctant to finance borrowers who do not invest enough of their own in the business. A
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credit proposal should, among other considerations, be judged from the angle of the
borrowed funds to equity ratio to establish customer’s stake in the business.
4.5.1.2 Borrower analysis

The majority shareholders, management team and group or affiliate companies should be
assessed. Any issues regarding lack of management depth, complicated ownership
structures or intergroup transactions should be addressed to mitigate the risk.
4.5.1.3 Industry analysis

The key risk factors of the borrowers industry should be assessed. Any issues regarding the
borrower’s position in the industry, overall industry concerns or competitive forces should be
addressed and the strengths and weaknesses of the borrower relative to its competition
should be identified thereby giving the Credit Approval authority an in depth analysis and the
power of foresight for any possible circumstance of default.
4.5.1.4 Supplier/ buyer analysis

Any customer or supplier concentration should be addressed as these could have a
significant impact on the future viability of the borrower.
4.5.1.5 Historical financial analysis

An analysis of the minimum 3 years historical audited financial statements of the borrower
should be presented. Where reliance is placed on corporate guarantors, guarantor’s financial
statements should also be analyzed. The analysis should address the quality and
sustainability of earnings, cash flows and the strength of the borrower’s balance sheet.
Specifically cash flow, leverage and profitability must be analyzed.
4.5.1.6 Projected financials

Where term facilities are being proposed a projection of the borrower’s future financial
performance should be provided matching with the term of the loan, indicating an analysis of
the sufficiency of cash flow to service debt repayments. Loans should not be granted if
projected cash flow is insufficient to repay debts.
Account conduct
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For existing borrowers, the historic performance in meeting repayment obligations, obligor’s
previous track record, trade and credit checking, payments behaviors, principal etc. is
assessed.
4.5.1.7 Lending guidelines / prudential regulations

Credit approvals should clearly state whether or not the proposed application is in compliance
with banks’ lending guidelines and other regulatory requirements.
4.5.1.8 Loan structure

The amounts and tenors of financing proposed should be justified based on the projected
repayment ability and loan purpose. The long tenor or excessive amount relative to business
needs may pose the risk of diversion in funds and may adversely impact the borrower’s
repayment ability.
4.5.1.9 Security
Current valuation of collateral should be obtained and the quality and priority of security being
proposed should be assessed. Financing is considered with two ways out first cash flow of
the company and second secured against tangible, easily realizable security in the shape of
land and building etc. loans should not be granted based solely on security. Adequacy and
the extent of the insurance coverage should be assessed.
4.6 WEEK 6
In 6th week of internship I was placed in foreign exchange and trade department of AKBL
where Sir Sajjid Raza and Sir Raja Kamran guide me about the working activities and
instrument used in this department in very efficient and effective way. Askari Commercial
Bank is providing services of foreign currencies through foreign exchange department. This
department provides all kinds of foreign exchange business to boost the international trade
in the country, which is main objective of AKBL.
Functions of Foreign Department
 Foreign Currency Accounts
 Foreign Remittance
 Travel Related Services
 Trade Related Services
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Foreign Currency Accounts

AKBL deals with account opening, withdrawal and deposit in foreign currency.
Types of foreign currency accounts,
 Frozen Account
 Incremental Account
 New Scheme Account
4.6.1.1 Frozen Account
Before 28 may, 1998, all the individuals, firms of local and foreign origin could open foreign
currency account in any currency. Bank has no right to make any query about the source of
earning of any account holder. No limit was imposed on amount of withdrawal. Bank
surrenders all the amount of foreign deposits to state bank of Pakistan against the provision
of forward cover by SBP. All the accounts were exempted from deduction of wealth tax and
zakat. All the accounts were freezed on 28th of May 1998, so it is called frozen account. And
now no new account would be open in the old scheme and no advance would be extended
against these accounts. The amounts frozen could be drawn in Pakistani rupee and also
interest in Pakistani currency.
4.6.1.2 Incremental Account
A new scheme is introduced by state bank of Pakistan after July 1998. In this scheme frozen
accounts are converted in incremental accounts. These frozen accounts can be withdrawn in
foreign currency and interest is paid in foreign currency.
4.6.1.3 New Scheme Accounts
After this, now all the foreign currency accounts are opened in new scheme. These foreign
currency accounts are opened in Euro, Yen, US dollar and UK pound currencies. Now bank
is free in opening and operation of new accounts, because now the banks accepting funds
under this scheme will not be required to surrender the same to SBP nor will SBP provide
forward cover. Banks are free to invest these funds and also determine the rate of interest on
these deposits. All foreign currency is transferred to treasury and treasury pays in interest on
these deposits at the end of month. Bank charges 0.5 % interest expense on it. Now the
customers are free to deposit and withdraw in foreign currencies. In the AKBL foreign
currency deposits are reported in local currency.
Foreign Remittance
The procedure of foreign remittance is same as in local remittance.DD and TT exercise within
country in case of overseas remittances FDD and FTT use (Foreign Demand Draft & Foreign
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Telegraphic Transfer).The foreign remittances department at Askari Bank is fully equipped to

meet the growing needs of the customers for a safe and fast funds transfer system. Bank
offer the customers several ways to conduct foreign remittances through a network of
thousands of correspondent banks around the world.
The only difference is that it deals in foreign currency. Most of the times, following modes are
used in foreign remittance.
 Foreign Demand Draft (FDD)
 Foreign Telegraph Transfer (FTT)
4.6.2.1 Foreign Demand Draft
When bank receive foreign demand draft then bank will debit to unsupervised account of the
customer and credit to treasury b because all the foreign currency accounts are maintained
in treasury, the bank will send debit advice to treasury. In return, treasury will send the credit
advice and branch officer will debit the treasury and credit to customer account.
Foreign Telegraph Transfer
When a customer wants to transfer funds to foreign country through telegraph transfer then
he will deposit the amount.
4.6.3.1 Form-M and Form-E
Declaration of exports to custom authorities is done through form-E. A prescribed Performa
is used for this form. It includes serial number of form, reporting period, currency, country
code and commodity. At the end of the month, form-M is prepared to show that how many
charges have deducted from the value of goods. This form includes serial number, amount
and purpose.
Travel Related Services

AKBL provide traveling related services by issue of ‘’traveling cheques’’ the purpose of
traveling cheque to save the money of client who wants to visit outside the country. Traveling
cheques are issued by two ways.
4.6.4.1 Back to Back

In this scheme, travel cheques are issued against the customer’s own exchange. Before new
scheme, all the foreign currency accounts are reported to SBP so travel cheques are issued
after the permission of SBP. But now, travel cheques are issued without the permission of
SBP. Now it is compulsory that amount units be debit from the customer’s account. The
branch officer will debit the sundry account of travel cheque and credit to treasury and
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treasury will debit the customer’s account. AKBL issue the travel cheque of AMERICAN
EXPRESS so the all record of travel cheque is also reported the American Express.
4.6.4.2 Private Quota Travel Cheque
If the customer wants to purchase travel cheque from the exchange of Govt. of Pakistan then
it is called private quota travel cheque. It is issued only against visit visa. The customer must
indicate the purpose of travel. This type of travel cheque is not issued to student or immigrant.
The customer has to submit the copy of visa, Passport and confirmed return ticket with the
application form. The customer will sign the T-1 form, which is used to report to SBP. The
limit of travel cheque is 2100$ p.a. for one individual and one percent of the amount markup
is charged in dollar. If the customer has a visit of 8 days then bank will issue travel cheque of
7 days of the amount of 50 $ per day.
Trade Related Services
AKBL provide two types of trade related activities.
 Import
 Export
4.6.5.1 Imports
It means receiving goods and services from the foreign country to the home country. Different
modes of imports are:
 Documentary collection/import on collection basis
 Advance Payment
 Import On Deferred Payment Basis
 LC/ Documentary Credit
Documentary Collection/Import on Collection Basis
In this mode, bank is only an inter-mediator between importer and exporter. As the name
denotes that bank is only responsible for the collection of documents. When the bank receives
the shipment documents than importer bank will pay the exporter bank through the
reimbursing from the importer account. Bank will charge the import service charges and other
documentary charges like SWIFT charges etc.
Advance Payment
In this mode the importer makes advance payment to the exporter and enjoys the benefit of
certain discount from the exporter. This mode of payment is used only by the permission of
SBP.
Import on Deferred Payment Basis
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In this mode, the importer bank will make the payment before receiving the documents of
shipment from the exporter. This mode of payment is used by the mutual; concern of importer
and exporter.
4.6.5.2 Letter Of Credit (LC)
LC means letter of credit .It is a safest mode of payment for both importer and exporter. In
this mode, importer bank gives undertaking to make payment to the exporter and exporter
bank gives guarantee of shipment of demanded goods within the due time. When the importer
and exporter are complete strangers for each other than they prefer the trade through letter
of credit. LC is opened by the request of importer receiving Performa invoice from the
exporter. The importer’s bank on behalf of importer writes letter of credit to the beneficiary.
The beneficiary is the exporter bank. It is only the commitment and not any fund of bank is
involved in it so bank charges only commission, swift charges to send the LC and 10%
security margin. When the LC is negotiated it is converted into fund-based finance and now
bank will take markup charges along with import service charges. Import related documents
required for opening the LC are:
 Request letter
 Import registration certificate
 Premium paid receipt
 Performa invoice
 IB8
Parties involved in LC are:
 Advising Bank
 Negotiations Bank
 Reimbursing Bank
Advising Bank
It is that which confirms the document of LC and transfer it to the exporter. If there is any
amendment in LC then it is also conveyed to the exporter. The exporter pays 4 or 5 %
confirming charges.
Negotiation Bank
It is the bank of exporter from where the exporter receives the payment of LC.
Reimbursing Bank
It is the foreign bank that has the NOSTRO account of the importer’s bank. The duty of
reimbursing bank is to make payment to the negotiation bank.
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Procedure
The importer who wants to open the LC must be account holder of that bank. The importer
submits the request letter with all above documents to the bank. After the risk analysis and
checking the credit history of importer, the bank prepare documents which contains all the
information like name of advising bank, reimbursing bank and negotiating bank, type of LC,
nature of LC description of price and quantity of goods, issuance and expiry date of LC, mode
of transportation and all other necessary information. A specific number is allotted to each
LC, now all these documents are sending to international division in order to take permission
to open the LC. After approval from international division, the bank charges commission of
the LC. Rate of commission of LC is 0.4% per quarter. 10% margin and SWIFT and stamp
charges are deducted from the importer account. And a separate account for the LC amount
is opened.
The bank dispatches all the documents of LC to the advising bank. The advising bank
confirms this LC and handover to the exporter after verification. The exporter takes 4 or 5%
confirmation charges. Now exporter will prepare the order goods and shipping documents
with the help of custom authority. The shipping documents will be in favor of importer bank.
After the shipment of goods, the exporter hand over documents to the negotiating bank for
payment. The negotiating bank will send these documents to the importer bank and make
payment to the exporter. The negotiating bank will send their claims to the reimbursement
bank. Reimbursing bank will pay to the negotiation bank and send their claim to LC opening
bank. The importer’s bank will pay the reimbursing bank on the behalf of importer after
receiving the shipping documents .the importer will pay the LC amount as well as the mark
up of LC, which is charged from the date of negotiation.
4.6.5.3 Export
It means transfer of goods and services from the home country to another foreign country.
Different modes of exports are:
 Foreign Document Bill for Collection
 Foreign Bill Purchase
 Sale Consignment Basis
 Advance Payment
Foreign Document Bill for Collection
In this mode of export, without opening of LC the exporter bank will send the shipping
documents to the importer bank. The importer already signs bill of payment and now importer
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will pay to his bank and take the shipment documents. The importer bank will send the
payment to exporter bank and exporter bank will pay the exporter .It means that exporter
bank is only responsible for the collection of foreign bill from the importer bank and there is
no guarantee or liability of the bank.
Foreign Bill Purchase
In this mode of export, when exporter receive the LC document from the advising bank then
he will prepare the goods and shipping documents. The exporter handover the shipping
documents to his bank for payment. Now exporter bank will negotiate this LC and make
payments to exporter.
Sale Consignment Basis
In this mode of export time period is specified which 120 days is mostly. It is mostly used for
the export of perceivable goods. E-form is issued to exporter in this mode. The exporter will
send the shipment to importer and importer will pay after 120 days as the sale proceeds. The
importer will make payments to exporter bank with the attested sale proceeds receipts.
Advance Payment
In this mode, exporter will receive advance payment from the importer to prepare the goods.
In this mode, inward remittance is transferred to the exporter account from the foreign bank
.the exporter signs voucher and then E-form is issued to the exporter. Rules of Modes of
Payments for Import/Export are mentioned in this form. AKBL follow rules of mode of
payment, which are established by the international chamber of commerce.
URC 525
URC are defined rules for collection of payments.
URR
Uniform rules for reimbursement, defined rules for reimbursing bank.
UCP 500
Uniform custom and practice defined rules for documentary collection.
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5 CHAPTER 5
5.1 Conclusion
Askari Bank is operating very well and competing greatly. It has many competitors but has many
opportunities to progress rapidly as compared to its competitors. Askari Bank is contributing
in industry, exports and in increasing deposits. Askari bank limited brought a great revolution
on our banking system by introducing new products, adopting all the new methods and
technologies requited for an international bank. Askari bank limited is desired to play a vital
role in the development of Pakistan in the 21st century. Its management and workers must
accept the competition and challenge of the new millennium through innovative policies
products and untiring application. According to my point of view, Askari Bank will progress more
rapidly in coming years. Askari Bank is increasing its agricultural facilities. Askari Bank has efficient
staff but there is a bit need of hiring more efficient people. This internship report compiles the
experience gained by me during the course of my internship period with Askari Bank.
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5.2 Recommendations
This is a 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 remain updated with the changing
environment. I recommend the following improvements to Askari bank, which if followed can
improve the efficiency and performance of the bank.
 Marketing department is very active but the feedback or the follow up of the
customers should be improved.
 Complaints handling mechanism must be refined and clear policies and
procedures be set out in order to smooth the process and provide quick relief
to the customer complaining about any product. This will favorably increase the
repute of the organization.
 Further increase their network of branches to capture more business and
increase their market share. Low performing branches suppress overall
network performance and reduce return on invested capacity.
 Appraisals should be linked directly to the performance targets of employees
which automatically assigns them responsibility for the achievement of those
targets. This in turn would increase profitability.
 More social gatherings and annual award ceremonies should be arranged and
managers of different branches of Askari from all over Pakistan should be
invited. This will boost the motivational level of the workforce.
 Employees must cooperate with internees and must explain them important
concepts. I felt difficulty in some departments about knowing important things,
especially in Credits and accounting department.
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5.3 Limitations
The report is limited in nature due to the reason that internship was done for a short period
of time i.e. 6 weeks which is a short period to fully analyze and understand the all functions,
policies and procedures prevailing in bank. Moreover some of the data was confidential and
was not made available. Sometimes due to the busy schedule of the bank, complete
information regarding different activities was not provided to me.
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6 Bibliography
6.1 Source persons

Mr. Imran Mahmoud Qureshi
(Operation Manager at AKBL)
Mr. Asad Javed
(Assistant Operation Manager)
Ms Mussarat
(Assistant Operation Manger)
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7 References
http://www.askaribank.com.pk/financialstatement.php
URL: http://en.wikipedia.org/wiki/AskariJBank/online
URL:http://en.wikipedia.org/wiki/IndustrialJDevelopmentJBank/online
http://www.nbp.com.pk/Publications/index.aspx
URL: http://en.wikipedia.org/wiki/State_Bank_of_Pakistan/online
URL:http://en.wikipedia.org/wiki/Bank_Of_Punjab/online
http://en.wikipedia.org/wiki/Govemor_of_State_Bank_of_Pakistan/online
Askari Commercial Bank, Annual report 2016 /online
http://askaribank.com. pk/index.php?id=156/online
Askari Commercial Bank Limited, organogram, departments, website/online
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8 Glossary
Acquirer Acquirers are banks and financial institutions that collaborate with
businesses to accept credit/debit card payments.
Advance Booking of vehicle with the manufacturer through advance payment.
Booking
Agreement Charges paid by the customer for stamping of financing agreement.
stamping
charges
Amortization Loan payments by equal periodic amounts calculated to pay off the debt at
the end of a fixed period, including accrued interest on the outstanding
balance.
Amortization Information of Equal Monthly Installments (EMI) with breakup of principal &
Schedule markup along with loan outstanding.
Annual Fee / An annual fee typically charged to customers with credit cards/revolving
Renewal Fee line facilities for maintenance of their facilities.
Applicable rate Rate applied on the facility.
Application/Lo A form to be filled in and signed as per the Bank’s requirements to avail
an application Banking facilities. Requirement of details to be filled in will vary for each
form facility. Applications may also require certain specified documents also to
be attached.
Appraisal Agency used for assessing market value of an Asset.
Agency
ATM An automated teller machine or any card-operated machine or device
whether belonging to the Bank or other participating banks or financial
institutions or concerns or to the Visa Card or MasterCard global ATM
Network, or the affiliated networks thereof, as the case may be, which
accepts the Card.
Auto Loan The loans or financing facilities to purchase the vehicle for personal use.
Balance Balance transfer of existing finance facility of borrower from other
Transfer (BTF) banks/DFIs.
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Balance An account in the name of the customer will be opened for the purposes of
Transfer the facility.
Account
Balloon Payment by customer in addition/additional/excess to the installment
Payment amount to reduce the principal outstanding. Excess payment by the
customer to reduce principal outstanding.
Banker's lien Bank's charge on the asset
Base rate Benchmark rate for driving the pricing of loan.
Billing cycle Date of a month when bill/statement is generated.
BOQ Bill of quantity - Break up of amount in construction cases.
Business Individual having his own business.
person
Card The applicable Visa Card, MasterCard and / or any other card including but
not limited to co-branded cards, e-card, debit card the second card as
issued by the Bank, from time to time, to the Card member and shall include
Supplementary and subsequently issued, renewal or replacement Cards.
Card Account Visa/Master Card account or any account pertaining to the Card(s) issued
by the Bank from time to time, as the case may be, opened by the Bank for
the purpose of entering debits / charges incurred by or for the account of,
and credits received by or for the Card member and Supplementary Card
member.
Card Issuer A bank, financial institution, credit union, or agency that issues a card to
public or its members is called a card issuer.
Card member A person to whom the Card is issued by the Bank and shall also include
every Supplementary Card member.
Card Fees to be charged by the bank for replacement of lost/stolen or damage
Replacement card
Fee
Card Any payment made or Cash Advance obtained or any amount to be debited
Transaction from the Card Account or any amount charged by the Bank or any Merchant
for any goods, services and other benefits by or through the use of the
Card.
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Cash Advance Amount of money in any currency availed or lent to the Card member by
the Bank or any participating bank or ATM whether in cash or in any other
form of payment.
Charge back A credit card transaction, which is returned or not honored, is called a
charge back. Usually done by the credit card holder in response to faulty
products, credit card fraud, a dispute or noncompliance with the rules and
regulations, charge back restores the funds back with the credit card.
Charge back it is a time period from a particular credit card transaction within which, the
period credit card holder must initiate a charge back, if the transaction is disputed.
Charges The amount payable by the customer to the Bank under the Terms and
Conditions, including but not limited to any transactions, Annual
Membership , Services Fee, late fee and other fees / charges.
Clean Limit Credit Limit which has been granted by the bank without any
collateral/liquid/non-liquid securities.
Clear title When the property in question is free from any doubt is not disputed and is
not having any encumbrances and it is said to have a clear title.
Closing The amount payable (or available) as of last working day of the certain
Balance period/month.
Co borrower Secondary person applying for the loan with the primary person.
Collateral An asset pledged to a lender to guarantee repayment. Collateral could
include savings, bonds, insurance policies, jewelry, property or other items
that are pledged to pay off a loan if payments are not made according to
the contract.
Collector Bank employee responsible for collection/recovery.
Co-signer A co-signer is a person who signs a loan or credit card with the primary
applicant, pledging to be responsible for repaying the loan or debt in the
event the applicant is unable.
Credit History A financial profile of any person based on how he repays his bills, clears
his debt and the amount a person owes to various banks and other financial
intuitions.
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Credit rating / A credit rating is an evaluation of the credit risk of a prospective debtor (an
Score individual), predicting their ability to pay back the debt, and an implicit
forecast of the likelihood of the debtor defaulting
Cross sell Selling of product to already existing customer.
Current Customer making all the repayments on time.
Current The total amount that customer owes to the bank for availing facility at a
Balance / particular point in time which may include all the charges (mark-up, late
Outstanding payment charges, joining charges) fees (annual, renewal) & other liabilities.
Balance / Total
Outstanding
Customer A person who is availing any facility or products of a bank
Dealership Vehicle is being provided through dealership.
Debt A ration of amount of money customer owe to banks or credit issuers

Ratio/Debt against total monthly income of a customer. It reflects the percentage of
Burden income that goes to paying customer debts every month.
Default/ When a customer fails to make any payment(s) due towards the bank as
Delinquency per the terms and conditions agreed or otherwise is termed as default.
Furthermore, a breach of contract/terms and conditions may also be
categorized as an event of default. Account is classified as delinquent when
loan payments are not paid according to the contractually agreed upon
terms or when due.
Delivery In the context of auto loans, this is a mandatory document which the
Acceptance customer signs acknowledging acceptance and possession of vehicle from
Form the dealer.
Desired Amount required by the customer.

financing
amount
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Desired Tenure required by the customer.

financing
Tenure
Direct Debit / A facility offers by the bank to customer against which monthly full payment
Auto Debt or minimum payment will be debited from his/her account on the due date.
Facility
Disbursement Loan payout in the name of the customer.
Discrepancy Incomplete or missing documents, or alternatively incomplete, illegible or

contradictory information in the customer's loan application or
documentation provided by customer.
Dishonored/Re A cheque which is returned by the payer's Bank due any number of possible
turned Cheque reasons including but not limited "insufficient funds, amounts' mismatch,
illegible signature, overwriting, date-barring etc."
Disputed A cardholder posted transaction which is not accepted by him/her and

transaction requires clarification.
DPD Number of days past the due date after the customer's payment became
due as per the contractually agreed upon terms and conditions.
Due Date Date specified in the statement of account for monthly repayments/
/Payment Due schedule for the payment of the Minimum Payment Amount, the Current
Date Balance or Installment to be made to the Bank for the facility availed by the
/Installment customer.
due date
E-Alerts Electronic Alerts to be sent to customer via email / SMS.
Early Payment of entire loan amount before the normal maturity of loan as per
Settlement repayment schedule.
E-Banking / Banking transactions which can be conducted on internet after accessing

Internet Bank's application with unique password.
Banking
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e-CIB /Credit Electronic Credit Information Bureau-eCIB has been established by the
Bureau State Bank of Pakistan which requires all banks and financial institutions to
report all loans and advances, to the State Bank.
EMI Equal Monthly Installments.
Equity/down Customer's stake in the vehicle, customer pays a vehicle value's part
payment before financing.
Expiry Date The date of expiry specified by the Bank on the Card.
External Agencies providing services to customers which are on Bank's panel.

agencies
Facility rate / Mark up rate charged on the financed amount.

Pricing /
interest rate /
Interest
FCY Foreign Currency Account.
FED Federal Excise Duty
Financing Document used for agreement between the customer and the bank.
agreement
Fixed Rate Facilities where the mark up rate defined at the time of loan disbursement
is fixed for the tenure of the loan or until facility is closed.
Fixed term This applies to products and services, which have a set lifetime. The
customer may be charged if the bank agrees to alter the product or service
before the end of its life.
Floating Rate Mark up rate renewable after certain defined period of time. The markup
rate is linked with KIBOR plus a fixed percentage of profit margin.
FX Conversion Foreign Currency Transactions charges to be borne by customer to convert

Charges into Pakistani Rupees
GCAS Global Customer Assistance Service
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Guarantee A promise given by a person called 'the guarantor' to pay another person's
debts if that person does not pay them.
Hypothecation Process of placing a charge / lien on vehicle financed by the Bank
Income Agency used for assessing customer's income.

estimation
agency
Installment A loan in which the amount of payment and the number of payments are
loan predetermined
Insurance The amount payable to an insurance coverage provider in return for their
premium coverage of an asset at a pre-determined insurance premium rate.
Insurance The products designed to cover the customers’ liability / assets to any
Products unforeseen circumstances which may face by the customer in future.
Interest Free The interest free period applies on retail transactions only. The days begin
Period at the start of your statement period and ends when your payment for that
purchase/ transaction is made.
IVR Interactive voice response (IVR) is a technology that allows a computer to

interact with humans through the use of voice and DTMF (Dual Tone Multi
Frequency) tones input via keypad.
KIBOR Karachi Interbank Offered Rate as directed by SBP on monthly basis.
Late payment Penalty levied on late installment / payments.

charges
Lawyer Agency used to verify and appraise the property document.

appraisal
agency
Lease facility A lease is a contractual arrangement calling for the lessee (user) to pay the
lessor (owner) for use of an asset.
Lease facility Mark up rate charged on the loan amount.

pricing
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Liabilities Any or all amounts payable whatsoever by the Card member to the Bank.
Linked Account opened for making monthly payments/installments.

Account/Repay
ment Account
Litigation Charges which will be incurred at the time of filling a suit by the bank against
charges a defaulted customer.
LOU Letter of understanding between the bank and the customer mentioning
some of the important terms & conditions of the loan.
LTV Loan to value - Ratio of amount of loan sanctioned against value of the
property.
Manufacturer Vehicle manufacturer.
Margin Bank's Profit percentage
Maturity Loans payment completion.
Merchant Any person / entity supplying goods and / or services and / or other benefits
who accepts the Card as a means of payment.
Minimum A certain percentage of current outstanding balance which a customer has

Payment to pay to avoid the delinquency /default.
Amount
Month Calendar month.
Mortgages Mortgage is the transfer of an interest in specific immovable property for

the purpose of securing the payment of money advanced or to be advanced
by way of loan or finance.
Multiple Limit Total credit limit approved for a Card member on all of his / her Credit Cards
collectively.
NCCA/ Non A type of account where a customer can only make deposits but cannot
Checking withdraw funds from the account. As such, no instruments (debit card,
Account
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INTERNSHIP REPORT
cheque book, internet banking etc.) are provided to the customer when
opening this type of account
NOC No Objection Certificate issued in favor of the customer after loan

clearance.
Off Us ATM Transaction conducted on other bank ATM
On Us ATM Transaction conducted on issuer's bank ATM
Outstanding Loans payable.

loans
Overdue Amount of loan and credit card payment(s) which has not been made as of
Payments/ Late its due date (or maturity) date. All financial arrangements become overdue
payments one business day after their due date. A borrower who is past due may be
subject to late fees and other charges.
Partial Customer making a deposit, apart from his regular payment/instalment,

prepayment against his loan to reduce his/her liabilities/monthly instalment.
Payment To pay any amount(s) to any person / party for any purpose settlement of
Facility any bills or for any other purpose approved by the Bank from time to time.
Personal Loans Personal Loans mean the loans to individuals for the payment of goods,
services and expenses and include Running Finance/Revolving Credit to
individuals.
PIN/ ATM PIN The Personal Identification Number issued to a Card member to enable the
Card member or a Supplementary Card member or selected by a Card
member or a Supplementary Card member and generated through IVR
(Interactive Voice Recording) to use the Card at an ATM for a Cash
Advance
Pre-Payment/ A one off payment along with FED charges which customer may be asked
Early to make if customer decide to repay loan early before maturity.
Settlement
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Prepayment Financial charges applied on pre-payment of loan.

charges
Principal The amount of debt, exclusive of interest, remaining on a loan.
Processing Fee Onetime Fee charged on approved amount only for processing.
Progressive The detailed information/events/picture provided by the cardholder for

Letter continuing his/her dispute with the bank against disputed transaction
evidences
Purchase Order issued by the bank to the dealer for confirmation of purchasing the
Order vehicle.
Rate revision Letter for customer when the applicable rate is revised annually
letter
Ready Delivery Vehicle available at the dealer for delivery after payment.
Ready Delivery Used vehicle available at dealer's end for delivery after payment.
used
Registration Amount required for registering the vehicle with Excise and Taxation Office.
charges
Repayment The process of returning of the borrowed loan amount. The repayment has
to be made for the entire tenure of the loan amount. Based on fixed or
floating interest rates on the loan amount, the banks or financial institution
decides on an EMI which has to be paid on or before a date mentioned in
the loan agreement every month.
Repayment Tenure of the facility.

period
Repossession "Duplication of term" It is suggested to retain any one of the definition.
Revolving Loan This is a type of loan which is "evergreen" in nature such that there is no
specified facility maturity date (it may, however, include facility renewals at
a pre-determined frequency). The borrower is typically assigned a credit
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INTERNSHIP REPORT
limit and he / she can withdraw any amount he / she requires up to this
credit limit.
Reward Points Points earned by the customer upon conducting any transaction from
his/her credit card. This facility vary banks to bank.
Right of Set Off In an event of default or otherwise, bank has the right of set off i.e. bank at
its discretion or otherwise and without giving notice to the customer,
reserves the right to recover outstanding amount(s) from any of Customer's
Account(s) maintained with the bank.
Rupee/PKR Pakistani Rupee Currency.
Salaried Person employed on a salaried basis.

individual
Sale Order Confirmation document sent to the customers before delivering Vehicle.
Schedule of The document prescribing Service Fee(s), charges and other fee(s)
Charges applicable to the Card/ BTF, Card Transactions and / or Card Account,
issued by the Bank bi-annually to the Card members.
Secured Limit Credit Limit which has been granted by bank and is secured against
collateral/liquid/non-liquid securities. In an event of default, or otherwise,
bank has the right to recover the amount(s) outstanding against the said
security.
Lease facility A lease is a contractual arrangement calling for the lessee (user) to pay the
lessor (owner) for use of an asset.
Lease facility Mark up rate charged on the loan amount.

pricing
Liabilities Any or all amounts payable whatsoever by the Card member to the Bank.
Linked Account opened for making monthly payments/installments.

Account/Repay
ment Account
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INTERNSHIP REPORT
Litigation Charges which will be incurred at the time of filling a suit by the bank against
charges a defaulted customer.
LOU Letter of understanding between the bank and the customer mentioning
some of the important terms & conditions of the loan.
LTV Loan to value - Ratio of amount of loan sanctioned against value of the
property.
Manufacturer Vehicle manufacturer.
Margin Bank's Profit percentage
Maturity Loans payment completion.
Merchant Any person / entity supplying goods and / or services and / or other benefits
who accepts the Card as a means of payment.
Minimum A certain percentage of current outstanding balance which a customer has

Payment to pay to avoid the delinquency /default.
Amount
Month Calendar month.
Mortgages Mortgage is the transfer of an interest in specific immovable property for

the purpose of securing the payment of money advanced or to be advanced
by way of loan or finance.
Multiple Limit Total credit limit approved for a Card member on all of his / her Credit Cards
collectively.
NCCA/ Non A type of account where a customer can only make deposits but cannot
Checking withdraw funds from the account. As such, no instruments (debit card,
Account cheque book, internet banking etc.) are provided to the customer when
opening this type of account
NOC No Objection Certificate issued in favor of the customer after loan

clearance.
Off Us ATM Transaction conducted on other bank ATM
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INTERNSHIP REPORT
On Us ATM Transaction conducted on issuer's bank ATM
Outstanding Loans payable.

loans
Overdue Amount of loan and credit card payment(s) which has not been made as of
Payments/ Late its due date (or maturity) date. All financial arrangements become overdue
payments one business day after their due date. A borrower who is past due may be
subject to late fees and other charges.
Partial Customer making a deposit, apart from his regular payment/instalment,

prepayment against his loan to reduce his/her liabilities/monthly instalment.
Payment To pay any amount(s) to any person / party for any purpose settlement of
Facility any bills or for any other purpose approved by the Bank from time to time.
Personal Loans Personal Loans mean the loans to individuals for the payment of goods,
services and expenses and include Running Finance/Revolving Credit to
individuals.
PIN/ ATM PIN The Personal Identification Number issued to a Card member to enable the
Card member or a Supplementary Card member or selected by a Card
member or a Supplementary Card member and generated through IVR
(Interactive Voice Recording) to use the Card at an ATM for a Cash
Advance
Pre-Payment/ A one off payment along with FED charges which customer may be asked
Early to make if customer decide to repay loan early before maturity.
Settlement
Prepayment Financial charges applied on pre-payment of loan.

charges
Principal The amount of debt, exclusive of interest, remaining on a loan.
Processing Fee Onetime Fee charged on approved amount only for processing.
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INTERNSHIP REPORT
Progressive The detailed information/events/picture provided by the cardholder for

Letter continuing his/her dispute with the bank against disputed transaction
evidences
Purchase Order issued by the bank to the dealer for confirmation of purchasing the
Order vehicle.
Rate revision Letter for customer when the applicable rate is revised annually
letter
Ready Delivery Vehicle available at the dealer for delivery after payment.
Ready Delivery Used vehicle available at dealer's end for delivery after payment.
used
Registration Amount required for registering the vehicle with Excise and Taxation Office.
charges
Repayment The process of returning of the borrowed loan amount. The repayment has
to be made for the entire tenure of the loan amount. Based on fixed or
floating interest rates on the loan amount, the banks or financial institution
decides on an EMI which has to be paid on or before a date mentioned in
the loan agreement every month.
Repayment Tenure of the facility.

period
Repossession "Duplication of term" It is suggested to retain any one of the definition.
Revolving Loan This is a type of loan which is "evergreen" in nature such that there is no
specified facility maturity date (it may, however, include facility renewals at
a pre-determined frequency). The borrower is typically assigned a credit
limit and he / she can withdraw any amount he / she requires up to this
credit limit.
Reward Points Points earned by the customer upon conducting any transaction from
his/her credit card. This facility vary banks to bank.
Right of Set Off In an event of default or otherwise, bank has the right of set off i.e. bank at
its discretion or otherwise and without giving notice to the customer,
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INTERNSHIP REPORT
reserves the right to recover outstanding amount(s) from any of Customer's

Account(s) maintained with the bank.
Rupee/PKR Pakistani Rupee Currency.
Salaried Person employed on a salaried basis.

individual
Sale Order Confirmation document sent to the customers before delivering Vehicle.
Schedule of The document prescribing Service Fee(s), charges and other fee(s)
Charges applicable to the Card/ BTF, Card Transactions and / or Card Account,
issued by the Bank bi-annually to the Card members.
Secured Limit Credit Limit which has been granted by bank and is secured against
collateral/liquid/non-liquid securities. In an event of default, or otherwise,
bank has the right to recover the amount(s) outstanding against the said
security.
Security Bank's security against the loan
Self-employed Individual having his own professional business.

professional
Semi Vehicles that can be used for individual consumption and for commercial
commercial purpose as well.
Service Merchant acquiring bank who authorize it's merchant to accept card
Establishment transaction as per agreement and able to respond disputes queries.
Service Fee/ Fee as determined by the Bank and prescribed in the Schedule of Charges
Annualized and payable by the customer on the outstanding Liabilities and other
Percentage amounts.
Rate (APR)
SMS Fee SMS - Short Message Service Charges
Standing Specific written (and signed) instructions provided by a customer to debit

Instructions/ his / her account by a specified amount on a pre-determined frequency. In
Auto Debit the context of consumer financing, standing instructions are often
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INTERNSHIP REPORT
requested from borrowers which have another Non checking account which
can be used to service their repayments
Statement of The Bank's monthly or other periodic statement of account send to it's
Account customers showing particulars of the transactions carried out.
Suit Legal case filing.
Supplementary Supplementary card member means the person who is issued a

Card supplementary card with the authorization and consent of the original /
basic card member.
Supplementary The person who is issued a Supplementary Card.

Card member
T PIN The Personal Identification Number issued to the Card member to enable
the Card member a Supplementary Card member or selected by a Card
member or the Supplementary Card member and generated through IVR
to use the telephone banking facilities made available by the Bank.
TAT - Turn Time required for application processing.

Around Time
Temporary A limited period of credit posted by bank into cardholder's card account for
credit disputed transaction.
Tenure The length of time for which a term loan has been approved and is typically
structured in 12-month multiples.
Term Loan This is a type of loan which is disbursed for a specified time duration after
which the loan matures. This type of loan involve reduction of the principal
outstanding as and when the customer pay his / her installments.
Time barred A posted transaction which is disputed after 120 days’ time-limit or
Transactions MasterCard/Visa allowable time-limits by cardholder.
Title of the Documents identifying the owner of the property.

property
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INTERNSHIP REPORT
Title of vehicle Documents identifying the owner of vehicle such as excise file and
registration book in Autos.
Top - Up Top Up means line replenishment/enhancement
Total Cash An amount including down payment, insurance, processing fee etc. which
Outlay (TCO) is paid after Auto loan approval.
Total Monthly Equal monthly amount payable including loan installment (Principal +
Payment (TMP) Markup) and insurance premium amount
Trenches Loan disbursed in parts are called trenches.
Undertaking Indemnity provided by the customer.
Unsatisfactory Customer is not making payments against availed cross sell facility/product
Credit History resulting bank has right to close either temporary or permanently said
product/facility.
US Dollar Currency of the United States of America.
Validity Date The validity date specified by the Bank on the Card.
Withdrawal To withdraw cash either through the Automated Teller Machines (“ATMs”)
Facility or through use of a Debit Card held by the Customer (“Debit Card”).
www.askaribank.com.pk/online
Askari Commercial Bank, Annual report 201
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9 List of Abbreviation
AOF Account opening form

CBD Consumer banking division
FDD Foreign demand draft
IBD Investment banking division
KRIS Key risk indicators
KYC Know your customer
LC Letter of credit
MAP Management association of Pakistan
NIFT National institutional facilitation technologies
PO Pay order
RCSA Risk and control self-assessment
SAFA South Asian federation of accountants
SS Signature specimen card
URC Uniform rules for collection of payment
UCP Uniform custom and practice rules
URR Uniforms rules for reimbursement
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100

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INTERNSHIP REPORT

Lahore Garrison University

Askari Bank Limited

Lahore Garrison University DHA Phase VI Sector C,

EXECUITIVE SUMMARY ..................................................................................................... 9

Askari aasaan money transfer ................................................................................................... 24

National Identity Card ............................................................................................................... 58

1 INTRODUCTION TO THE ORGANIZATION

purposes. To understand the organizational structure in term of reporting line: who is

 Optimize usage of human and technological resources

1.8 Distribution of branches

Total branches and sub branches= 501

1.9 Corporate profile

 Dr. Muhammad Tahir Mansoori (Resident Shariah Board Member)

 Hamza Foundation Welfare Hospital

1.12 Hierarchy of the branch

Account Stock and Cash Clearing and

Ms Mussarat Mr Sajjid Raza Mr Asad Javed

2 PRODUCT AND SERIVICES

Islamic Brand Agriculture

Askari Mahana Bachat Account

Askari Paishgi Munafa Term Deposit

Value Plus Current Accounts

Rupee Traveler Cheques

2.2 International banking

Askari aasaan money transfer

2.3 Agricultural banking

Kissan Ever Green Finance

2.4 Corporate banking

2.5 Investment banking

Master credit card

2.7 Islamic banking

 Online Investment in Mutual Funds managed by Askari Investment

Cardless cash withdrawal

Executive Committee Internal Audit

President and Chief

Corp. Banking Operating and Retail Credit Cards

Rawalpin Planning and

Corporate and Systems and

Foreign remittances and trade

Use of ATM as a credit card

Low attraction for investors

AKBL has been surrounded by political factors such as

 Unpopular and weak government

 High rate of inflation

3.5 Marketing Strategy

Target market strategy

 All Army related institution

 School college and business industries

 Attractiveness of the segment

Following are the steps in setting price for a product:

 Selecting the pricing objectives;

 Selecting the final price.

3.5.7.2 Bill Board

3.5.7.4 Personal Selling

3.5.7.6 Social marketing

3.5.7.7 Public Relations

3.6 Competitive strategy

3.6.1.1 Public Sector bank

 National Bank of Pakistan 1219

3.6.1.2 Local Private Banks

 Allied Bank Ltd

 MCB Bank Ltd.

3.6.1.3 Foreign Banks