Dedication

Our Earth hangs on nothing,

The moon has enigmatic intoxication,
The beautiful mountains,
And singing streams and valleys,
Magical clouds and shinning rainbow,
Infinite stars and burning sun,
Apparent calm mighty seas,
The charming winds and endless skies…….

But why do they exist………?

Did we ever try to observe their beauty
and reality………..?
Did we ever try to find purpose of our
creation……..?

This report
is dedicated to the
beauty & Reality
of Universe
Acknowledgements

First of all , I am very thankful to Almighty Allah ,who blessed me with

skills,talent,energy and confidence that let me to successfully perform this
internship.
Internship is a massive task .Though it is not a job ,but even then it needs
committed efforts , study ,devotion and most of all ,guidance to be
accomplished successfully.Among all these elements , guidance is of maximum
importance.Because banking activities are much different from what we study
at campus,so I need guidance at every stage.

So first of all ,I am very thankful to my respected teachers Sir Shahid Yaqub

and Sir Tariq for their guidance at many stages particularly while making
internship report.
When I joined Askari bank as an Internee, I knew very little about the banking
operations.but I found huge guidance at every step that enabled me to
successfully do my internship.I oblige the contributions of all the employees
there.

I am very thankful to Mr Imran Ul Haq (Credit department) for his massive

guidance at every stage.I spent most of time of my internship in credit
department and he did his best to understand me everything about all activities
in credit department.He not only gave me opportunity to sit by him and observe
his working but also he gave me many tasks to perform .Obviously I have learnt
a lot from him specially interpersonal and negotiation skills for which I am very
thankful to me.

Then I am very thankful to Mr Rao Naeem ( Leasing Department) for his huge
guidance to me .At many occasions ,I used to spent my leisure time with me
and he used to comprehend me about the important information about banking
industry for which I am very thankful to him.

Finally I am thankful to Sobidar (Rtd) Ashraf for serving and assisting me in

many matters.

Muhammad Ahmad
Internee ,Second batch,2010.
Askari Bank Ltd.
PREFACE
Business Administration study is much different from traditional studies.here
unlike the tradition of cramming , the students are encouraged to learn skills
,talents and confidence that let them to perform successfully in practical
career.For this purpose ,the whole study of MBA is embedded with many
assignments ,presentations and projects that garnish such skills of students and
help them in gaining idea about the practical business world.The internship
program is also intended for such purpose.However , as it takes at the end of
studies ,it revises the majority of MBA study concepts and as students have
become much aware and mature about business world,so it gives them a final
touch in their boomed shaping.

Keeping this fact at focus, Department of Management Sciences

organizes Comprehensive internship program to enable its students
to learn and gain most of needed skills and knowledge that further
assist them in getting good job and start a booming career.The
Department not only assists in posting students in leading
organizations but also guide them about various matters at any
stage of internship.

Though I have already some practical exposure,but doing internship

at Askari bank proved to be very important for me.I learnt a lot about
the importance of communication , interpersonal skills there.The
reason for Chosing Askari bank is very simple ,having superb
affection with the military.As Askari bank is powered by Army
Welfare Trust that is a military led business organization ,so I had
decided long time ago that I will chose this bank for internship.The
bank ,its level,its offering and its operations eventually proved that
I have did internship in a very good bank.

I learnt and enjoyed my work there so much that I spent an extra

week there.This is indeed the success of any company that it has
won the heart of a person serving it in some manner. Now whenever
nostalgically I recall those moments, I indeed get gloom and miss those learning
and challenging moments.

After the completion of internship ,its report making is also

mandatory .That will let my teachers and internship team to
understand what I did and how did I perform there. So here is my effort
to accumulate my workings and contributions that I made at Askari Bank ,RYK
Branch.
 I have done my best in compiling this report and I hope that It will be
liked and appreciated by all the readers.

Executive summary

Banks play very important role in the economy of any nation. According to many
analysts ,the economics health of any country can be checked by having a look at its
banking sector. Although banks create no new wealth but their principal activities like
borrowing, lending and related activities facilitate the process of production,
distribution, exchange and consumption of wealth.Also the banks mobilizes the
savings of the people into other projects ,thus such series of further investments
brings boom to economy and opens more jobs.For this reason, many economic
icons term bank as the blood of economy.

The similar is the case with Pakistan.The present decade may be termed as the
golden era for banking sector in Pakistan in which many private sector banks have
rapidly boomed up and diversified .The banking sector offered some of the very
demanding offerings specially car leasing , ATM’s ,credit cards that took huge
appreciation and demand from public.The huge success of banking sector also
attracted foreign investment in this sector and therefore we saw massive foreign
investment in our banking sector specially from the Arab States.

Askari Bank is one some banks that covered milestones in very brisk era and have
raised flags of their success ,quality,reliability in the industry. It was founded in 1992
and in its journey of about eighteen years, its growth and success patterns have far
outgrown the industry standards.History is evident that change is inevitable and who
has realized this reality and get consistently modified according to coming change,
has survived even in the tough and intense competition. Askari bank realizing this
fact, has always given keen foucs at innovation ,improvement and flexibility
according to the customer , market and economic environment change.Its shorter
,smart name ,sober colors and fresh outlook depicts its views and ideology of
banking as well as its importance as strongest financial institutions in the country.

As mentioned earlier in preface the worth of internship project , when I came to me

to commence my internship ,obviously there came no other choice in my mind but
Askari Bank.My time there was very good .In that learning environment , I observed
and gained many new things.Internship normally requires six weeks duration ,that is
very negligible to fully comprehend the banking operations and routine activities .but
even then, my managers paid special attention and guidance to me and also I tried
my best that let me to learn much about the banking sector.Like a traditional bank,
there are various departments in Askari bank ,RYK branch and sometimes internees
are rotated in all departments for few days in each department but I was confined by
 my manager to some departments only and not in all the departments.This report
comprises of first introduction of bank ,then about its branch in Rahim yar khan ,then
a brief introduction of all of its departments and then my working as internee.

Being a subsidiary business unit ,

Askari Bank Limited is powered by
Army Welfare Trust.
So before proceeding to bank’s introduction,
We first take a quick glance of

Army Welfare Trust.

 Army Welfare Trust

Introduction

Army Welfare Trust enjoys a unique and proud history. The Pakistan Armed
Forces have established several organizations for running industrial and
commercial enterprises. These organizations provide employment for ex-
servicemen, besides creating job opportunities for others. These organizations
include Army Welfare Trust (AWT), Fauji Foundation and Shaheen Foundation.

Army Welfare Trust has established a reputation as a leader in the corporate

sector.Its story is that of perseverance, innovation, business acumen and going
beyond the frontiers in agriculture, cement, pharmaceuticals, leasing, insurance,
banking, energy, information technology and many other diverse fields.

Vision
To be one of the leading business houses employing best business practices.

Mission
To undertake safe and profitable commercial activities in a manner that portrays
AWT's image as a respected market leader while generating maximum funds for
meeting the welfare requirements of the Army.

Core Values
 We have an unwavering commitment of being a good partner,
focused on building productive, collaborative, trusting and beneficial relationships with
governments, other companies, customers, communities and each other

Milestones

- 1984 …Askari Sugar Mills was established in district Badin, province Sindh .

- 1990
• Askari Woolen Mills started its operations in March 1990.
• Askari Shoe project was established in May 1990.
• Askari Real Estate unit was established in 1990.

- 1992 ..
Askari Bank Ltd. commenced its operations in April 1992.

- 1993 .
.Askari Leasing Ltd. was established in September, 1993.

- 1995
• Askari Aviation Pvt. Ltd. was established in July 1995 .
• Askari General Insurance Company Ltd. was established in October 1995.

- 1996
• Askari Guards Pvt. Ltd. was raised in May 1996.
• AWT acquired two Cement Plants at Wah and Nizampur in 1996.
• Askari Pharmaceuticals was found in 1996.
• Mobil Askari Lubricants Ltd. started operations in December 1996.

- 1997
Askari College for Entrepreneurs was established in July 1997 at Rawalpindi.

- 1998
Askari Information Systems Ltd. was established in 1998.
- 2002
Askari Compressed Natural Gas Project was launched in 2002.

Current Business Units

Army Welfare Trust runs these business units

1: Public Listed Companies

• Askari Bank Ltd

2: Public Unlisted Companies

• Askari Cement Ltd Wah

• MAL Pakistan Ltd

• Askari Securities Ltd

• Askari Investment Management Ltd

3: Private Limited Companies

• Askari Aviation Pvt Ltd

• Askari Guards Pvt Ltd
• Askari Enterprises Pvt Ltd

4: Other Business Units

• Askari Cement Nizampur

• Askari Real Estate

• Askari Projects (Woolen & Shoes)

• Askari CNG
• Askari Farms and Seeds

• Army Welfare Sugar Mills

• Blue Lagoon & Army Welfare Mess

• Askari Cement Marketing

Askari
Bank
Limited
 Askari Bank Limited

Introduction

Askari Bank was incorporated in Pakistan on October 9, 1991, as a public

limited company. It commenced operations on April 1, 1992, and is principally
engaged in the business of banking, as defined in the Banking Companies
Ordinance, 1962. The Bank is listed on Karachi, Lahore and Islamabad Stock
Exchanges.Askari Bank has expanded into a network of 226 branches / sub-
branches, including 31 dedicated Islamic banking branches, and a wholesale
bank branch in Bahrain.

A shared network of 4,173 online ATMs covering all major cities in Pakistan
supports the delivery channels for customer service. As at December 31, 2009,
the Bank had equity of Rs. 14.95 billion and total assets of Rs. 254.33 billion,
with 984,485 banking customers, serviced by our 6,159 employees. Askari
Investment Management Limited and Askari Securities Limited are
subsidiaries of Askari Bank engaged in managing mutual funds and shares
brokerage, respectively.
 The bank’s policies, vision , flexible approach ,financial strength , strong back
and firm foundation ,all these elements have already put the bank on its journey
to marvelous success .It has proved its value and strength in a very brief span
of time and yet it has a long way to go ahead.The commitment ,teamwork and
fairness of bank’s employees and the integrity of all of its activities are focused
at efforts driven towards success ,customer satisfaction and eventually long
term profitable relationships.

Mission Statement

To be the leading private sector bank in Pakistan with an international

presence, delivering quality service through innovative technology and
effective human resource management in a modern and progressive
organizational culture of meritocracy, maintaining high ethical and professional
standards, while providing enhanced value to all our stake-holders, and
contributing to society.

Vision

To be the bank of first choice in the region.

Askari Bank’s vision to be the bank of first choice in the region demands
continuous strive for creation of business opportunities with innovation while
maintaining core values to meet its commitment to all stakeholders.The range
of products aims to serve diverse customer base that comprises of
corporates, SMEs individual savers, households and, farmers. At the same
 time, its people are constantly engaged in assessing customer needs and
market dynamics to realign its products and its priorities to attain brand
recognition and competitive edge. It is reshaping portfolio of businesses by
investing in higher growth areas, extending and developing our core
competencies and moving out of weak and non–core segments.the existing
technology with a comprehensive state-of-the-art solutions. This initiative will
greatly improve its product delivery and service abilities.

Our thinking

Creating opportunities with innovation and technology

Our values

• Commitment : Passionate about our customers’ success,

delighting them with the quality of our service.
• Integrity : A distinctive investment, delivering outstanding
performance, return and value.
• Fairness : Exemplary compliance, governance and business
ethics.
• Team-work : Caring for our people and helping them to grow.
• Service : Dedication towards social development and improvement
in quality of life.

Our customers
 Knowing our customers and their needs is the key to our business success.
Our products and services are as diverse as our market segments. Our client
relationship managers are well equipped and well trained to provide the most
efficient and personalized service to the customers. Askari Bank is proud of
its pioneering role in providing the most modern and technologically advanced
services to its 984,485 relationships.

Our investors
We believe that the bottom line of any business is creating shareholder
value. To gain their trust and confidence, we believe in providing our investors
timely, regular and reliable information on our activities, structure, financial
situation, and performance.

Our employees

We strongly believe that the interests of the Bank and the employees are
inseparable. At Askari we try to create a ‘we’ culture where there is mutual
trust and respect for each other. We encourage ownership behavior so that
everyone feels responsible for the performance and reputation of the Bank.
We are committed to develop and enhance each employee’s skills and
capabilities through extensive in–house and external training programs and job
rotations. In order to ensure meritocracy, our appraisal system is purely
performance based.

Corporate Objectives
• To achieve sustained growth and profitability in all areas of business.

• To build and sustain a high performance culture, with a continuous

improvement focus.

• To develop a customer–service oriented culture with special emphasis on

customer care and convenience.
 • To build an enabling environment, where employees are motivated to
contribute to their full potential.

• To effectively manage and mitigate all kinds of risks inherent in the banking
business.

• To optimize use of technology to ensure cost–effective operations,

strengthening of controls, efficient management information system,
enhanced delivery capability, and high service standards

• To manage the Bank’s portfolio of businesses to achieve strong and

sustainable shareholder returns and to continuously build shareholder value.

• To deliver timely solutions that best meet the customers’ financial needs.

• To explore new avenues for growth and profitability.

Code of Ethics and Conduct

Askari Bank seeks to maintain high standards of service and ethics enabling it to be
perceived as impartial, ethical and independent. In addition to the general guidelines,
the following are the salient features of the Bank’s code of ethics and conduct.

• Presence of a corporate culture that seeks to create an environment where all

employees are treated equitably and with respect.

• Employees must carry out their responsibilities in a professional manner at all

times. They must act in a prudent manner and must avoid situations that could
reflect unfavorably on themselves, the Bank or its customers.

• Employees must commit to the continued development of the service culture in

which the Bank consistently seeks to exceed customers’ expectations. Fairness,
Truthfulness and Transparency govern our customer relationships in determining
the transactional terms, conditions, rights and obligations.

• Employees must safeguard confidential information which may come to their

possession during the discharge of their responsibilities. Respect for customers’
confidential matters, merits the same care as does the protection of the Bank’s
own affairs or other interests.
 • Employees must ensure that ‘know your customer’ principles are adhered to by
obtaining sufficient information about the customers to reasonably satisfy
ourselves as to their reputation, standing and the nature of their business
activites.

• Employees must avoid circumstances in which their personal interest conflicts, or

may appear to conflict, with the interest of the Bank or its customers. Employees
must never use their position in the Bank to obtain personal advantage or gain.

• Employees must not enter into an agreement, understanding or arrangement

with any competitor with respect to pricing of services, profit rates and / or
marketing policies, which may adversely affect the Bank’s business.

• Employees must not accept gifts,business entertainment or other benefits from a

customer or a supplier / vendor, which appear or may appear to compromise
commercial or business relationship.

• Employees must remain alert and vigilant with respect to frauds, thefts or illegal
activities committed within the Bank premises.

Corporate Information

A : Director’s Profile
 Lt. Gen. Javed Zia HI (M) …..Chairman

 Lt. Gen. (R) Imtiaz Hussain HI (M) …….Director

 Maj. Gen. (R) Saeed Ahmed Khan…Director

 Mr. Zafar Alam Khan Sumbal…Director

 Mr. Muhammad Riyazul Haque….Director

 Mr. Shahid Mahmud…Director

 Mr. Ali Noormahomed Rattansey…Director

  Dr. Bashir Ahmad Khan…Director

 Mr. Tariq Iqbal Khan ……..Director

 Mr. Muhammad Rafiquddin Mehkari …President & Chief Executive

 Mr. M. A. Ghazali Marghoob….Company Secretary

 Mr. Saleem Anwar…Chief Financial Officer

B: Audit Committee
 Dr. Bashir Ahmad Khan…. Chairman

 Mr. Ali Noormahomed Rattansey…. Member

C: Auditors
 KPMG Taseer Hadi & Co.Charted Accountants.

Legal Advisors : Rizvi, Isa, Afridi & Angell

D: Registrar & Share Transfer Office

M/s THK Associates (Private) Limited,
Ground Floor, State Life Building # 3,
Dr. Ziauddin Ahmad Road,
Karachi - 75530 P.O.Box No. 8533, Karachi.
Tel : (021) 5689021, 5686658, 5685681
Fax: (021) 5655595 UAN: 111-000-322

E: Registered Office /Head Office

AWT Plaza, The Mall,
P.O.Box 1084, Rawalpindi.
Tel : (051) 9063000 Fax: (051) 9272455
Website: www.askaribank.com.pk
Awards & Achievements

"Askari Bank has won the first position in the "Best Corporate Report
Award for the year 2008" by ICAP & ICMAP."

Askari Bank continues its success in competition. Recently we have once

again been given the “Best Retail Bank in Pakistan” by The Asian Banker
for the 2nd consecutive year. Askari Bank has been given the 1st Consumer
Choice Award 2004 for the Commercial Banking Category by the Consumer
Association of Pakistan. We have also received the Corporate Excellence
Award for the financial sector from the Management Association of Pakistan
(MAP) for the years 2002, 2003 and 2004.

We have been given “The Best Bank in Pakistan” award by Global Finance
magazine twice i.e. for the years 2001 and 2002. We have been given the
“Best Consumer Internet Bank” award by Global Finance magazine for the
years 2002 and 2003. We won the Euromoney and Asiamoney awards as
early as 1994, 1996 and 1997. We have A1+, the highest possible credit
 rating, for short-term obligations, and our long-term rating stands at AA. We
won the prestigious “Best Presented Annual Accounts” award from the
Institute of Chartered Accountants in Pakistan (ICAP), and The Institute of
Cost and Management Accountants in Pakistan (ICAMP), for the Services
Sector, for the years 2000, 2001and 2002. We have also received ranking
prizes during the last six years from the South Asian Federation of
Accountants (SAFA) for “The Best Presented Annual Accounts” for the
financial sector, in the SAARC region. In 2007 Askari bank won “The Best
Consumer Banking Award 2006” for the third consecutive year from the
consumer Association of Pakistan. In 2008, Askari Bank has been given “The
Best Retail Banking Award 2008” by Pakistan Guarantee Export Corporation
Ltd.

Organogram
Principal Foreseen Attributes
Implementation of the new core banking system is planned in phases. In the first phase
most products and services in our conventional branches are being addressed while in
the second phase Treasury and Islamic Banking services will be covered. In view of the
old system being decentralized and its reliance on branch based servers, roll-out of the
new system will be gradual over the entire branch network with all branches of the Bank
planned to be converted to the new system within two years of the first branch going
‘live’ during the first quarter of 2010.

Amongst the other applications, the Supply Chain Management System is expected to
transform the procurement process using electronic workflow over the Bank’s data
communication network. This system will also provide an Enterprise GL for the Bank
and will be able to integrate information from various sources to compile the overall
position of the Bank for reporting to the regulators as well as for the management. This
system will also be maintaining an up-to-date inventory of Bank’s fixed assets in a
central database.

The Human Resource Management System will enable the Bank to maintain an
elaborate database of its workforce. It will enable the human resource function to
manage its work in a highly efficient manner with functionalities such as employees
recruitment, payroll management, performance appraisal, training, etc. This system will
consolidate and upgrade many functions, currently carried out through the use of
disparate systems and procedures. Line managers will also be able to view relevant
information about their respective staff through the data communication network and
thereby manage their staff more efficiently.

The Risk Management System will enable the Bank to achievecompliance with the
central bank’s directives in this area and will help the Bank’s management to be able to
manage risk in a scientific andorganized way. It will help the Bank to achieve Basel-II
compliance in line with the Bank’s policy and regulatory directives.

The Customer Relationship Management System acquired by the Bank has vast
capabilities and will be absorbed into the Bank’s working in phases. In the first phase it
will be deployed to achieve workflow based credit approval in the consumer banking
area and also provide single view of the customer to the call center agents as well as
branch staff and relationship managers.
Branch network
New Name & Logo Interpretation
The management and board of directors of the bank
decided to change the name of the bank from Askari
Commercial Bank Limited to simply Askari Bank Limited.
This was for multiple reasons - firstly, the bank was
generally referred to as "Askari Bank". Secondly, in the
current scenario, the word "commercial" has become
redundant since all banks are commercial banks.
The change of name presented an excellent opportunity for a fresh new look for the
bank, which would be a reflection of the bank's desire to continue to evolve with and
adapt to the changing environment and dynamic consumer needs.

A: Simplicity in Design

The typefaces used for the logo are simple yet elegant. Without being overly stylish,
they make a solid statement about the bank, its approach to business while maintaining
the most critical aspect of any logo's design: readability. This is loosely defined as the
ability of any text to be readable and recognizable at first glance. The new "Askari bank"
logo is distinctive and can be recognized instantly on sight. The use of all lower case
letters and the use of "Askari" and "bank" as one word gives the logo a unique identity,
enabling it to stand out from the crowd

B:The colors

Change and evolution being the key driving elements of the new brand identity, the
colors of the bank have been revisited completely. The new colors are blue and grey,
with a touch of orange/yellow. Understanding this selection needs a basic
study of color psychology. Blue is the color of peacefulness, loyalty,
productivity and strength (or solidity). It is a color that induces positive
emotions in the human body and its effects on productivity, even human
strength, have been documented. Body builders work in blue rooms to be able to lift
heavier weights.

The second color used is a dark grey. This is the color of elegance, respect, wisdom
and balance. Darker shades of grey are said to be more representative of the
properties of the color black, which are modernity, power, sophistication
and wealth. However, by being grey and not black, it avoids the
connotations of death, fear, etc.

The last two colors, orange and yellow, are used in a combination which is
representative of a rising sun. The colors themselves, aside from the positive
connotations of a rising sun, carry the joint properties of sunlight, joy,
happiness, hope, wealth, energy, enthusiasm.

C: The stylized "AB"

Evolution, not revolution, is key in the development of a brand. The

stylized AB, presented in 3D and in the new brand colours, is a
solemn nod to the outgoing logo design, which has served the bank
very well for the first 15 years of its existence. Retaining this icon
maintains the recognition of the old logo, while also creating a positive
link between the past, present and future of Askari bank.

Askari Bank Limited,Rahim Yar Khan

Branch
Being recognizing the worth and value of Rahim yar khan as the rapidly and briskly
growing city of southern and as the future industrial empire of the province,Askari Bank
kept in view the very worthy concept of right action at right time and opened a branch at
Rahim yar khan in 1999.

The current branch of Askari bank is situated at Ashraf Complex near the central town
hall.It works in a rented two storey building that is presented in the middle of the
Complex.This unique corner location gives adequate outlook garnish to the bank.Being
more visible and attractable to the general public..Also it is located in the heart of city
and thus easily approachable from all venues within the city.

The present location of the bank gives it some remarkable benefits also.One of the most
important is that it offers ample and wide parking lot to its employees and
customers.Also being at the main road where the main traffic streamline of city
flows,one can easily approach using rickshaw etc.

The Askari Bank is in this building right from its launching of Rahim yar khan
branch.However now it is massively felt that present site and building are becoming
insufficient to meet and handle larger and growing customers .Therefore the branch
management is also looking for some site to fabricate bank own’s building.This will not
let bank to build building according to own’s design and map but will also get relief of
the massive amount that is paid monthly in name of rent.

Like a normal bank,there are several general and routine operational departments in
the Askari bank limited. However it lacks all the departments and operations that are
being offered by the bank as a whole.for example ,currently it is not offering any
products of Islamic banking.

The branch code of Rahim yar khan branch is 31.

Its competitors here are

 • Bank Alfalah Ltd.

• MCB bank Ltd.

• United Bank Ltd.

• Allied bank Ltd.

• Soneri Bank Ltd.

• Standard Charted Bank Ltd.

• NIB Bank Ltd.

• Emirated Global Bank Ltd.

• Faysal Bank Ltd.

• Habib Metropolitan Bank Ltd.

• Silk Bank Ltd.

• My Bank Ltd.

• JS bank Ltd.

• Habib Bank Ltd.

Organogram of RYK branch

 Branch
Manager

Mehboob
Hussain

Incharge Manager
BDO
Credit Operations
Dilshad
Salman Shakeel
Ahmed Ahmad
Manzoor

Remittance
Relationship Head ,online bills
BDO Incharge Account
Officer Teller
Argi opening
Imran Yousaf
Muhammad Wasim u
Aslam Ali Ahmad Jamil Shiraz
Imran Din

Relationshi
p Officer Accounts,
Assistant Clearance
Teller HR
Officer
Ammara Rehan
Rasheed M Saddiqui Maiha
Rana Tariq Lucky
sarwar

IT
Cashier
Incharge
M jamil
Khurram

First of all ,we go at a brief glimpse of various departments that are in operation at
Askari Bank Limited Rahim Yar Khan Branch.
Operational Banking Departments

The general banking department is the one which deals with the general banking
operations and activities that are mostly routine work on daily bases. It can be further
sub divided into the following departments.

A: Account opening department.

B: Clearing department
C: Remittance department
D: Accounts department.
E: Cash Department.

A : Account Opening Department

This is the fundamental department that not only performs the fundamental and basic
operations but also deal the new as well as the retained clients of the bank.

Main Duties:

• It opens the accounts.

• Various information regarding account opening and account type are also given
here.
• It deals in the lockers issuing and regarding information.
• It issues the Cheque Book and regarding issues.
• It deals in issuing and handling various matters regarding ATM ,Debit cards and
Credit cards.
• Very often,customers are given little services like assisting in filling form ,filling
various deposit slips etc.
• It also engages in record keeping of all the above mentioned activities.Some of
these activites are quickly updated at the bank intranet.
The various accounts in this regard are

 Current Account

The current account is the most common and most

widespread.Normally it is preferred by most of the customers. It
important feature is that it enables the customer to make
transactions in more,customized,effective and efficient manner.

 can be opened with atleast Rs.5,000/-

 No Profit
 No deduction of Zakat
 Account closing charges Rs.150
 Online Charges Rs.100

 Saving/ PLS Account

This account type is basically intended for profit making or in

other sense, for investment on the customer’s point.Any person
who wish to invest their money in order to get profit normally
have this account.

 minimum balance requirement is Rs.10,000.

 There can be profit or loss on the investment of the
Customer’s funds deposited with the bank and this amount
shall be acceptable to the Customer. The profit is paid half
yearly.
 Deduction of Zakat
 With holding tax on profit @ 10%
 No Service Charges to close the account
 Service Charges for maintaining minimum balance Rs.50
 Online Charges Rs.150

 Term Deposit Account

This is somewhat similar to Saving account

with the exception that in term deposit , deposit is made for a
certain period of time. And only at the end of specific period, the
 customer can withdraw its principal amount.The profit is given
according to pre-defined terms and conditions.

 Fixed Profit
 The longer the period for amount keeping,higher is rate of
interest.And thus more will be the profit.
 Term Deposit usually for the period of three months, six
months, One year, and five years.
 Deduction of Zakat and withholding Tax @ 10%.

 Basic Banking Account

This account is normally intended for students .The minimum

amount requirement in this case is very less that is Rs 1000.

 Minimum Deposit amount is Rs. 1000

 Initial two withdrawns (every month) via cheque is free of cost.
 However customer can make as many with drawn as it intends
by ATM.
 Bank can close the Account after six month if balance is zero.

As the opening of account is like contractual agreement between

bank and the customer ,therefore for a person to open any
account,the following conditions are mandatory to be fulfilled.

• He must be at or above age of maturity that is 18 years.

• He must be mentally sound and healthy.
• He must not be insolvent and bankrupt.
• He must not be debarred under any law from entering into any
contract.

B: Clearance Department
The clearance system can be best described 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 House at specified time in an efficient way.”

To clarify this in simple words ,we can say by stating example that an
account holder of askari banks presents cheque of some other bank.Now
such cases are to be dealt by clearing department.the department gathers
all such cheques and later on verify the account and clears the amount
from the correspondent bank.This overall process is termed as clearing.
The clearing house is place where different ambassadors of various banks
exchange the instruments .Initially the bank used to perform this activity
themselves.But now, National Institutional Facilitation Technologies
(NIFT) is performing this operation among about 40 different Banks, 5571
Bank branches in 185 cities of Pakistan.
The NIFT has made the operation much easier and quick.Here at this
branch,normally the representative of NIFT comes daily near 2 pm and not
only collects all instruments that are accumulated in this branch but also
assign the instruments to the branch that are delivered by other
banks.This process is made very safe and secure by taking the assistance
of Seal tags.

The instruments that are normally cleared via this department include

 Cheques
 Demand Drafts
 Pay Orders

C: Remittance Department
First we have a look at definition of remittance that is given below
“Remittance is transfer of funds from one place to another or from one person to
another.”

This is important service provided by banks both to its account holders as well as non-
account holder. It is also income generating source for bank.

The unique distinction of this department is that it works for the clearance of outside the
city instruments presented by the clients or any bank’s branch from outside the city.
Then it makes the relevant remittances.

In broad sense ,we can divide that involved parties into four classes,which are as
follows

1) Remitter

The remitter is the person who initiates the request for remittance. He /
She comes to issuing bank,requests for a remittance to be made, and
pays the money to be remitted.This is not a free service and the customer
has to pay its charges.Also it is not necessary to be account holder of that
bank for utilizing this service.

2) Remittee

A remittee is also called the payee. It is the person in whose name the
remittance is made.or in other words,we can say that remittee is the
person who receives the payment
.
3)Issuing Bank

The bank that sends or makes the remittance order on the request of
customer in termed as the issuing bank.For example if a person goes to
the Askari bank RYK branch and requests for a remittance,then this Askari
bank branch will be the issuing bank.

4) Paying Bank

Paying Bank is also called the drawee branch.It is the branch from where
the instrument is drawn by the remittee. It is usually located in a different
city.
Instruments Used In Remittances

Following are the instruments that are used in remittances

 Payment of Remittances
 Pay Order (PO)
 Pay Slip
 Call Deposit Receipt (CDR)
 Telegraph Transfer
 Rupees Traveler Cheque (RTC)
 Cancellation of PO, DD & CDR
 Advance Tax against Remittances

D: Account Department
The most important task of this department is the maintaining and keeping eye at
records of past day activities that are taken place in the bank .An important thing that
takes place here is the daily verification and matching of various transactions from their
physical slips against the computer generated reports.These reports are continuously
updated by the bank intranet and finally at the end of banking day,they are printed. their
physical prove are match to the computer generated report and save it as a physical
that these transaction are take place in the bank. It is for this reason that accounts
department is sometimes termed as the backbone of bank.

A Second very important function of account department is that it is responsible for

budgeting and also record daily expense incurred by the bank and its employees.

The account department is also engaged with correspondence with head office and
other branches.Also it is responsible for making statements like expenses ,taxes
etc.The reports generated by this department may be daily,weekly ,monthly ,quarterly
,semi annually as well as annually .It depends upon the nature of activity.however
mostly simple activities required daily reporting.
In the Askari Bank Rahim yar khan branch , the Human Resourse Department also
works together alongwith the account department and by the same employees.Though
most of the human resource related policies and activities are centralized in Askari
Bank,yet this department perform some activities like performance evaluation report
making of bank employees ,feedback /complains from employees, any conflict or
problem resolution with the bank or its employees.This department also monitors and
handles matters relevant to internship and internees.Obviously it is this department that
clarify any candidate for internship approval ,then makes its placement and finally
evaluate its performance and task performed and grants the Internship Letter.

E: Cash Department

This is the most important department. It deals with the physical movement of cash in a
bank.Cash is either deposited by customers in the bank or is withdrawn by them. It
also has to balance the debit side with credit side at the end of the day.

When a person wants to deposit amount in his account ,then he has to fill a deposit
slip.The deposit slip is very simple in its format.The customer has to fill his name
,account number and finally the amount to be deposited is to be mentioned both in
numbers and words.In some cases, the customer is said to narrate his address,national
identity card number and cell number at the back of slip.Often the customers are given
assistance in slip filling either by internees or relevant employees.The deposit slips in
Askari Bank vary to bit extent for current and saving accounts.

In case the customer gives cheque to draw certain amount ,then the
customer’s account will be debited and money is paid to the customer.The
Cheques are of two classes.which are as follows

1.Open Cheques

Open Cheques are those cheques, which are paid across the counter of
the bank. Open cheques may be

Bearer Cheques : In this case, any person who lawfully possesses a bearer
cheque is entitled to receive payment of that cheque.
Order Cheques.: In this case,the cheque amount is paid only to that person
whose name is mentioned at the cheque.

2.Crossed Cheque

In this case,the amount of this cheque is not paid at counter to the

customer. Rather amount of this cheque is transferred to the person’s
account whose name is specified on the cheque. Two parallel lines lying
across in a crosswise direction lines are drawn across the face of the
cheque to devote cross cheque tag.

Foreign Exchange Department

The silent features of this department are as follows.

• It deals in the foreign currency.

• It is directly under the supervision of the branch manager and branch is
responsible directly to the treasury department or head branch.
• Foreign amount currency is sent through SWIFT. Askari Bank Limited has the
contact with American Express, America for cross the boundary transactions.

Credit Department
The credit department is the most important and the most income generating
department of the bank.And thus it is of utmost value.Because of its broadness and
necessity to fulfill specific needs of customers ,the credit department may be
categorizes into the following two departments.

A: Agri-Credit Department

As we know that Rahim yar khan is basically an agricultural based district in which agri
operations play a key and principal role in business economics,the agri credit
department enjoys offering its services right from the start of banking operations here.

To a lot of extent,this department is in direct supervision of branch manager and well as

credit manager.It deals in both running as well as term financing.

it offers the following services,

 Kissan Ever Green Finance

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

B: General Credit Department

This department is intended to satisfy general public needs who want to take loan from
bank for their particular purpose or for business.Askari bank offers wide and unique
package to their customers.They are very attracting as well as worthy for the customers.

The products offered by this department are

• Personal Finance
One can avail unlimited opportunities through Askari Bank’s Personal Finance. With
unmatched financing features in terms of loan amount, payback period and most
affordable monthly installments, Askari Bank’s Personal Finance makes sure that
you get the most out of your loan. No matter what your need is, Askari Bank has
more ways to serve you than ever before.

Borrower: Resident Pakistani Nationals.

Facility: Term Finance
Financing Limits: Maximum upto Rs. 500,000/. (Clean)
Maximum upto Rs. 1 Million. (Secured)
Tenor: Maximum upto 5 Years
Repayment: Monthly Installments
Markup Rates: Competitive
Servicing: Available at all Askari Bank branches
Balance Transfer Facility: Available

Eligibility :

Age: Between 21 to 65 years

Income: Minimum gross monthly income of Rs. 10,000/- only.
Employment:
Salaried: Minimum length of confirmed service with present
employer is 6 months with a total length of 1 year service.
Self Employed: Minimum 1 year in business.
Charges/Fees: As per current schedule of charges.

The personal finance is much flexible in its approach.For example , Askari bank
offers financing of huge range of electronic appliances and motorbikes against
consumer financing.This is very beneficial for those people who can afford quality
home appliances at affordable installments.For this purpose,Askari bank has signed
agreements with the leading manufacturers and companies like Samsung , Philips ,
LG ,Dawlance, Honda ,Dawood Yamaha Limited. This flexible approach makes this
offer very unique and attracting.

• Smart Cash
Borrower: Resident Pakistani Nationals
Facility: Personal Line of Credit
 Financing Limits: Maximum upto Rs. 500,000/-(Clean)
Maximum upto Rs. 1 Million (Secured)
Tenor: One year (renewable).
Repayment: Monthly debt servicing on the outstanding balance.
Markup Rates: Competitive.
Servicing: Available at all Askari Bank Branches
Balance Transfer Facility: Available

• Mortgage Finance
Ever since the inception of life, shelter has been rated among the
primary needs of mankind. Owning a home for oneself still remains an exclusive
dream for many. Askari Bank has made the realization of your dream to have a
house of your very own possible. Whether you plan to build a house, tailor made to
your requirements or buy a constructed house, Askari mortgage finance enables you
to pursue your goal without any problems. Mortgage is a premium home financing
product for customers aged between 23 – 65 years belonging to the upper, upper
middle and middle income groups, residing in the urban areas of Pakistan.
 • Business Finance

Borrower: Resident Pakistani Nationals.

Facility: Running Finance/Term Finance.
Financing Limits: Maximum upto Rs.50.0 Million
Primary Security: Residential & Commercial / Built up Properly & Land.
Mode of Financing: Running Finance: One year line of credit (renewable)
Repayment: Running Finance: Monthly debt servicing on the outstanding balance.
Markup Rates: Competitve
Servicing: Available at all Askari Bank Branches.
Balance Transfer Facility: Available.

Eligibility

Age: 21 to 65 Years.
Borrowers: Resident Pakistani Nationals.
Employment: Minimum one year's business or professional experience in the present
business
Charge/Fees: As per current Schedule of charges

Lending Product Rates

 Particulars Markup Rates
Personal Finance
Upto 3 Years 18%
Upto 5 Years 22%
Smart Cash
1 Year (Renewable) 22%
Business Finance
1 Year 1 Year Kibor + 3% to be reviewed on
yearly basis
Mortgage Finance
20 years maximum 1 Year Kibor + 3% to be reviewed on
yearly basis.
Auto Financing 13% to 15%

CONSUMER BANKING SERVICES

1: Askari Finance / Loans :

A: smart cash
B: personal finance
C: mortgage finance
D: Business finance.

2: Investment Products.

2.A: Askari Paishgi Munafa Term Deposit :

Askari Paishgi Munafa term deposit account is an innovative addition in the

wide range of bank’s products and value added services. This unique product
will meet the immediate financial needs of individual investors who want to
invest funds for a medium term. The most significant feature of this product is
that the customer will receive the entire profit upfront.

Salient Features
 Tenure: 15 Months.
Rs. 100,000/- or in multiples of Rs.
Minimum Amount:
100,000/-
Rs. 12,000/- on a deposit amount of
Profit Amount:
Rs.100,000/-
Profit Payment: Upfront at time of placement of funds.

Additional Benefits for Customers:

• Financing Facility up to 80% of Principal amount.

• Free Visa Debit Card issuance.
• Free Accidental Life Insurance coverage up to Rs. 500,000.
• No Minimum Balance requirement in checking account.
• 2 Free Pay Orders in a month. (Withholding Tax and other Government charges
will be applicable as per Law)
• No maximum limit for investment.

It is subject to applicable Zakat and Govt. levies and changes in the Banks policies from
time to time.

2.B: Askari Mahana Bachat Account (1 + 3 Years Term)

“Earn Rs. 842/- per month on investment of every Rs. 100,000/- for one year!"

“Earn Rs. 917/- per month on investment of every Rs. 100,000/- for three years!”

Askari Mahana Bachat Account is a Term Deposit facility available to individual

customer with the option of 1 and 3 Years tenure. It has been designed keeping in view
savings needs of individual investors who don’t want to block their funds for longer
terms, with a competitive rate of return paid monthly on the 1st of every month. A
financing facility up to 90% will be available for customers if required.

Salient Features
 Product Type: Term Deposit
Eligibility: Individuals Only
Minimum Rs. 50,000/-
In multiples
Balance requirements: of
Maximum upto Rs.
Rs. 25,000/-
10,000,000/-
Tenure(s): 1 + 3 Years
Profit payment: Monthly - 1st of every month
Profit Rates: Competitive
Servicing: Available at all Askari Bank branches
Financing Limits: Upto 90% of the principle amount

2.C: Askari Roshan Mustaqbil Deposit

Askari Bank has launched the Askari Roshan Mustaqbil Deposit, a saving plan specially
designed for individual investors who wish to invest now for a regular return at a later
stage while keeping their principal amount intact. With Askari Roshan Mustaqbil Deposit
you can double your investment in a time period of ten years. Invest now in the form of
monthly deposits for five years and get paid back the same amount for the next five
years while receiving your principal amount in full at the end of the tenure.

Salient Features

Product Type: Term Deposit

Eligibility: Individuals Only
Minimum Rs. 5,000/-
Balance In multiples of
requirements: Rs. 5,000/-
Maximum upto Rs. 50,000/-
Tenure: 10 Years (5 + 5)
Profit payment: Monthly – on completion of first 5 years
Profit Rates: Competitive
Servicing: Available at all Askari Bank branches
Upto 90% of the principle amount after
Financing Limits:
completion of first 5 years

2.D: Askari Deposit Multiplier Account

“Value of initial investment of Rs. 100,000/- will increase to Rs. 265,000/- at
maturity!”

Aim higher with your investments with Askari Deposit Multiplier account. This account is
for individual investors whose purpose is long term savings with high returns. With a
tenure of 10 Years and a competitive rate of return on maturity this account is ideal for
investors who wish to start saving for their future today.

Salient Features

Product Type: Term Deposit

Eligibility: Individuals Only
Minimum Rs. 50,000/-
Balance requirements:
Maximum upto Rs. 10,000,000/-
Tenure: 10 Years
Profit payment: On maturity
Profit Rates: Competitive
Servicing: Available at all Askari Bank branches
Financing Limits: Upto 90% of the principle amount

2.E : Askari value plus deposits

Askari Bank leads the way, yet again with the introduction of Askari Value Plus Rupee
Deposit Accounts, which promise greater financial freedom and security, in an un-
matched way.

Now you can open a "Value Plus Account" while enjoying the flexibility of a normal
checking account.

Types of Value Plus Account

1. Value Plus Current Account

2. Value Plus Saving Account
3. Value Plus Time Deposits

Why Askari Value Plus Account ?

 1. Free issuance of Debit Card
2. Free global accidental insurance coverage against debit card irrespective of
balance in the account or age of the cardholder
3. Free ATM Cash Withdrawal insurance
4. Free online funds transfer facility
5. Free internet banking services
6. Free of cost 24 hours global accidental insurance coverage up to Rs. 2 million
7. Facility of Supplementary Debit Cards
8. Monthly returns on saving deposits
9. Partial encashment facility for time deposits
10. Automatic roll over facility for time deposits
11. Our un-matched service quality

2.F: askari rupee traveller cheques

Askari Bank Limited has always remained at forefront in introducing innovative and
unique products in banking sector. Our financial instruments provide greater financial
freedom and security in an unmatched way to our valued customers.

Askari Bank offers you its "Rupee Traveller Cheques" eliminating all financial risks while
traveling. So avoid risk of carrying cash through Askari Bank's Rupee Traveler
Cheques.

"Your Best Travelling Companion"

Why Askari Bank's Rupee Traveler Cheques ?

1. Free issuance
2. Free encashment
3. Profit will be offered at the time of encashment*
4. Nationwide acceptability
5. Facility of encashment in cash to the purchaser
6. Facility of encashment through clearing
7. No purchasing limit
8. Valid until encashed
9. Easily transferable
10. Account relationship not mandatory
11. Fastest refund procedure in case of loss / theft
12. Safe & secure mode of funds transfer
13. Available in Rs. 10,000 Denomination at all branches of Askari Bank
14. Perfect subtitute of your cash

3: ASKCARD ( Askari Debit Card)

Askari Bank is committed to provide you innovative and competitive solutions to your
banking needs in a more efficient and personalized manner. Your Bank enjoys a
strategic competitive advantage over all domestic players by virtue of its leadership,
large network and technological advancement. In line with our tradition of innovation,
Askari Bank takes pride in announcing launch of Askari Bank's Debit Card.

Askari Debit Card means freedom, comfort, convenience and security, so that you can
have retail transactions with complete peace of mind. Askari Debit Card is your new
shopping companion which enhances your quality of life by letting you do shopping,
dine at restaurants, pay your utility bills, transfer funds, withdraw and deposit cash
through ATM anywhere, anytime.

"Convenience at its best"

Why ASKCARD?

• Free of Cost (24) hours Global Accidental Life Insurance upto Rs. 500,000/- for
every cardholder irrespective of balance in the account
• Free ATM Cash Withdrawal Insurance upto daily cash withdrawal limit of the
cardholder against snatching, armed hold-up or forced deprivation of money
• Free issuance of Debit Card for new Value Plus Accountholders
• Umrah Tickets for 2 lucky cardholders (Each year)
• Home insurance of 10 lucky cardholders (Each year)
• No hidden charges
• Free from carrying cash or cheque books
• Free Funds Transfer Facility
• Free Utility Bills Payments through ATM’s
• Shopping Facility at POS terminals
• Maximum daily cash withdrawal limit
• Balance Inquiry, Mini Statement
• Supplementary Cards
• Un-matched Online Real-time Services
4: Investment Certificates

Askari Bank's Investment Certificates not only provide the added security, investment
and monthly return to the customers. These certificates are negotiable and can be
transferred to third party. Investment Certificates can be issued for a period of 3 months
and profit is payable on monthly basis through pre-printed tear-off coupons.

Product Features

1. Free issuance and free encashment

2. Account relationship with Askari Bank is not mandatory
3. No penalty on pre-mature encashment
4. Negotiable and payable in Pakistan in Pak rupees only
5. No purchasing limit
6. Valid until encashed
7. Encashable at all Askari Bank Branches
8. Profit is payable on monthly basis through pre-printed coupons
9. In case of loss / theft or damage, there is replacement / refund to the original
purchaser
10. Encashment by third party
11. There is no penalty on pre-mature redemption, except that profit coupon shall be
valid only for completed month

Rates of Profit Paid to Value Plus A/C Holders & on ABIC

Particulars Profit Rates

Value Plus Saving Deposits
Rs. 10,000/- to Rs. 24,999/- 2.50%
Rs. 25,000/- & above 3%
Value Plus Time Deposits
Three months 5%
Six Months 5.50%
One Year 6%
Investment Certificates
First Month 4%
Second Month 4.50%
Third Month 5%

I.T department
 This department is also of much importance in daily banking
activities.As we know that this is the era of information technology, so having up-to-date
and state-of-the-art technological infrastructure is of keen importance for banking
sector.To meet and face the challenging competition and to make competitive
edge,Askari Bank has renovated its infrastructure with the latest technological
equipments and tools.

The main activities of IT department are

 Maintain and ensure the proper working of LAN .

 Keep maintenance and ensure proper working of all computers within the branch

 Verification of N.I.C online for the purpose of account opening.

 Computerize record keeping of Accounts.

 Generate report of daily transaction in the bank.

Commencement of My Internship
 Credit Department

Agri Credit

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.

The Askari Kissan Agri Finance Program (AKAFP)

It has been designed to meet ON FARM / OFF FARM credit requirements of

farmers on the most convenient, flexible, easy terms and conditions. The
program features:

• A broad array of credit lines designed to meet farming requirements.

 • Repay and borrow at your convenience on revolving credit basis at lowest
mark-up rates renewal able after three years.
• Convenient repayment terms based on cash flow abilities.
• Availability of leased Tractors / Transport without Land / Collateral.
• No Hidden Cost.
• Availability of interest free package for inputs and tractors etc.
• No Pre-adjustment penalties.
• Earn prompt payment Bonuses and reduce financial costs.
• Insurance cover of leased assets, animals, crops and life
assurance of borrowers.

As we know that Rahim yar khan is basically an agricultural based district in which agri
operations play a key and principal role in business economics,the agri credit
department enjoys offering its services right from the start of banking operations here.
To a lot of extent,this department is in direct supervision of branch manager and well as
credit manager.It deals in both running as well as term financing.

Askari Bank Offers the following Agricultural solutions,

1 : Kissan Ever Green Finance

Askari Bank has launched this program with the sole motive to provide dignity,
prosperity and freedom to the tiller of the land. The program is designed to
help small, medium and large farmers in meeting their short-term input
requirements against one time sanction and automatically renewable upto 3
years subject to its stipulated utilization/periodical adjustment. The credit line is
sanctioned in the light of available cash flows and input requirements i.e.
Seeds, Fertilizer & Pesticides etc.

Salient Features of the Program are given as:

• Farmer open a profit earning "Askari Ever Green Account" with the branch. A
special cheque book is issued to the farmer.
• Revolving credit limit as "Ever Green Agri Finance" is available to the farmer
against security i.e mortgaged charge on agri land through Zari Pass Book.
• Hassle free, automatic renewal upon adjustment of entire principal amount with
mark-up once in a year.
• The account is farmer friendly which benefits the farmers both ways. If the
account is in credit, it earns profit, otherwise it provides instant finance, to the
farmer for his agriculture needs.
• The mark-up is charged for the actual days the finance is utilized.
• Profit on credit balances will be paid on half yearly basis as declared by the bank
on PLS savings accounts.
2: Kissan Tractor Finance

Traditional modes of cultivation viz Bullocks, Camels, horses etc can no longer keep
pace with the demands of present times due to manifold increase in the population.
Power in the form of modern technology is therefore the need of the hour. To meet this
emergent requirement, Askari Bank has launched a Askari Kissan Tractor Finance to
bring power to the fields.

Salient Features of the Program are:

• This program has been designed to benefit the owner as well as non-owner
farmers.
• The farmer will have privilege of availing non-funded facility at a reduced cost
under this program on account of more equity participation.
• Although the facility is available for a period of five years. However, good farmer
bonus will be available to the borrower in case the loan is repaid as per terms of
sanction.
• Priority in delivery of tractor will be given by manufacturer as per arrangements
with the bank.
• The farmer’s life & tractor will be insured against contingencies, which will
provide comfort and piece of mind.

3: Kissan Aabpashi Finance

Agriculture farming is impossible without adequate water. We can combat the

prevalent water scarcity by harnessing more natural resources. Increased use
of mechanical means thus provides a ready alternative. Keeping in view the
scarcity of water, which is the lifeblood of arable lands, Askari Bank has
started a program for farmers, to finance installation of Tube-Wells (electric,
diesel and solar energy units) water management equipments and water
channel development etc., which will help farmers to make optimum use of
limited water resources.

Salient Features of the Program are:

• To facilitate the farmer, to overcome the scarcity of water.

• To develop mechanical water resources, sprinkler and drip system etc.
• To avoid traditional / inefficient modes of irrigation and waste of available water.
• To manage natural / available resources through water management practices.
4:Kissan livestock development finance

In order to supplement the income of the farmer, Askari Bank has launched a
program enabling the farmer to purchase Milch Animals, Goats, Sheep,
Poultry and Fisheries without incurring extra expenditure because of
availablility at his farm. He will be able to get milk, meat and eggs etc., which
normally do not form part of his diet. This program has the added advantage
that besides fulfilling his own family’s consumption needs he will be able to
market the surplus and earn additional income. This will further improve their
cash flows to repay their other Loans / Revolving Credit on due date.

Salient Features of the Program are:

• The program will provide regular day to day income to the farmer to meet his own
consumption and surplus to be marketed.
• This will revive / accelerate and supplement the income generating capacity.
• It will enhance the repayment capacity of the farmer.

5: Kissan farm mechanization finance

Beside Power at the farm i.e. Tractor, the benefits / advantages of power are
maximized with the use of Mechanical Support i.e. modern and improved
equipments which essentially complement one another due to their cost
effectiveness and time efficiency. Askari Bank has launched an Askari Kissan
Farm Mechanization Finance for the assistance of the small farmers and provide
finance for farm equipment, trailer, thresher, drills & rotavators etc.

Salient Features of the Program are:

• Under this program the farmer will get benefit of use of modern agricultural tools,
implements and equipments which are cost and time effective.
• Improves per acre yield of agri crops and quality of agriculture produce to get
good price in the market.
• Helps to match / compete with international standards for exportable agriculture
produce.
•

6: Kissan farm transport finance

A grave handicap that afflicts our farmers is their inability, due to lack of proper
facilities, to take their produce to the market through efficient means of
transportation. This adversely affects the freshness, quality of the product and
denies them the desirable Price-Fetching opportunity. Conversely, they lack
mobility to acquire much needed inputs essential for their farming needs. One
 can safely conclude that if provided with appropriate and speedy transport, the
farmer can benefit by enhancing his selling ability and thus increase his income /
cash flow. it is pertinent to mention that a number of Banks, Leasing Companies
and Private Agencies have geared their marketing efforts to concentrate on and
have mainly captured the urban markets. There is no support provided to cater
to the transport needs of deserving rural farmers community. Askari Bank true to
its commitment, has taken the lead to launch Askari Kissan Farm Transport
Finance.

Salient Features of the Program are:

• To increase mobility and access of the farmer to the markets.

• To lower the burden / cost of transportation against hired transport.
• To create awareness of market movements in order to obtain maximum price of
their produce.
• This will also supplement the income of the farmer which will ultimately enhance
the repayment capacity of the borrower.
• Additional income can be generated if used for hired services to the fellow
farmers.
Requirements for Agri Loans

Following are the requirements for to make an Agri Loan.

1.Zari Pass book.

This is a little booklet.It is issued by government and is legal
insignia of land and its owner.

2.Jamabandi.
It comprises of the record of property in hands of a government official
which is usually Patwari.

3.Khasra Gardawari.
It is the verdict and proof that the person himself is cultivating that
land.

4.NEC ( Non Encomperss Certificate)

It is verdict and proof that no loan has already been taken at
that land.

5.Aks-e-Shajra
It is some sort of map.It compiles complete scenario
of the land.It displays the directions of land.

6.Average Bae (3 yr)

It is the average of sale price of land .The average of last
3 years in considered .it tells about the worth of the land.

7. Passport size pictures.3 pictures.

8.Computerized National Identity Card.4 Copies.

(All the above requirements are on the behalf of customer.)

Once these requirements are satisfied ,The agri committee considers the case of that
particular client.The committee comprises of Agri Manager , Credit Manager and Branch
Manager.Then it is forward for further processing to the Area Main Branch.It then further
moves to Regional Branch.They considers the case and if found adequate,the loan is
allocated.The State Bank of Pakistan also applies a regulation for agriculture credits .Its
requirements,terms and conditions are in the form of check-list.and they must be fulfilled
in order for a load to be made successfully.
Askari Bank offers services for these facilities to the farmers,

 Zari Credit Card

 Fertilizers,pesticides and seeds
 Farm Mechanisation
 Tractor
 Modes of transport
 Irrigation purposes
 Cattle
 Poultry farm
 Dairy farm
 Green house
 Gardening
 Fish farm
 Storage house
 Paved Streets

Mark up

• Current markup on Agri-term finance is about thirteen percent.

• However it varies depending on amount of loan , and attributes of customer.It is
also dependant at bank policies and economical circumstances. So, markup rate
on finance is varying with the variation and borrower has to buy according to
assigned markup percentage.

Insurance

• Of crops / fields, 2% of total loan as insurance is charged. Askari bank has the
contract with the united insurance,East West Insurance,Metropolitan Insurance
Company .
• On life following provisions are made.
- Less 55 years----------0.3% of total loan amount.
- 55 to 65 years---------0.5% of total loan amount.
Health certificate is required.
- Above 65 years-------1.15% of total amount.
General Credit Department

The word Credit is derived from the Latin word "creditus" which
means, "to believe." Taking Credit lets us to buy any desirable
commodity ,or do any desirable action which we are unable to
do at our own because of huge amount of money needed.The
attracting thing is that we can repay it in small and affordable
installments that are simple in nature and easy to comprehend
by the customer.As this is a mutual sort of agreement between
that bank and the customer where the basic channel is trust and
to believe ,so we term it as credit.

So it can be easily understood that this is the department that

provides the loans for various needs.The general credit department is one of the
most important in any bank and is a major source of income . So we can
understand that it is one of primarily function of all banks of all categories.It
sanctioned the business loans, house loans and SME loans also.

I started my internship in General Credit Department .And most of my time was

spent in this department.I found a huge variation in customers for credit ,ranging
from industrialists to ordinary public and business men.

Because of Special guidance and task assignment by my managers ,I learnt a lot

in this department.i performed many tasks relevant to record keeping and
maintaince, data input in computer , data sheets typing and printing and such
other tasks.As Credit department deals with all the activities related to giving
credit to customers ,so there I also learnt a lot regarding negotiating skills,
interpersonal skills.i also found the worthwhile importance of communication by
working.Overall ,whenever I nostalgically recalls my experience there ,I indeed
feel that I learnt much from there and been there.
Before proceeding to the procedures and documentations ,we initially have a look at the
important terminologies and concepts relevant to this department.

Commercial Credits are if two types,these are

1.Funded Based

It is called funded based because in this type of loan, funds from

bank are directly involved.It may be categorized into three classes which are

1- A: RUNNING FINANCE: (R/F)

It is offered for one year ,however it can be renewed after end of one
year if clients intends to do so. It is offered for working capital
requirement of the customer . This facility is normally issued against
mortgage of immovable property and Pledge of movable items. It is
allocated under predefined terms and conditions and pre-sanctioned
limit. In this case, which markup is charged on the amount which the
borrower use. This facility is issued on revolving basis and repayment
should be completed by the maturity date. Repayment in monthly
installments is not required.It is at the ease of the customer.Askari Bank
normally offers about 60-70 % loan against the value of pledged
valuable item.It is purely in accordance of the bank management policies
and there is not restriction at it by the State Bank Of Pakistan.

1-B: CASH FINANCE: (C/F)

It is also offered for the working capital requirement of the

customer. It is the type of loan in which client is given cash in lump
sum .it is offered against the pledge of moveable property or stock
.Again in this case,repayment is not necessary in monthly installments
and it depends at the will of customer.Goods are depledge when the
payment is done on delivery order of the bank. Askari Bank normally
offers about 60-70 % loan against the value of pledged valuable item.It is
purely in accordance of the bank management policies and there is not
restriction at it by the State Bank Of Pakistan.
1.C: TERM FINANCE: (T/F)

Term finance is normally intended for salaried people that offer them easy
installments.assists a person in investing or advancing in his business or
project.However ,its gives ease and simplicity by offering payments in easy
installments that can be monthly,quarterly or semi annually .It solely depends
at customers consent .Also it is issued for fixed time period. The amount of
finance is credited to borrowers personal account by debiting the Term
Finance Account.Also in this case,interest has to be paid,either the loan
amount is used or not.

2: Non fund based

It can be classified in two categories ,which are

2-A: letter of Guarantee

A type of contract issued by a bank on behalf of a customer who has entered a

contract to purchase goods from a supplier and promises to meet any financial
obligations to the supplier in the event of default. It is of two types,

• Financial Guarantee

Bank guarantees the fulfillment of a financial commitment on behalf of the

customer.

• Performance guarantee

The bank guarantees the due fulfillment of a contract or

other work as specified in the guarantee, by the customer.

2-B :Letter of Credit:

 A binding document that a buyer can request from his bank in order to guarantee that
the payment for goods will be tranferred to the seller. Basically, a letter of credit gives
the seller reassurance that he will receive the payment for the goods. It is often used in
international trade to eliminate risks such as unfamiliarity with the foreign country,
customs,orpoliticalinstability.

Lien

Lien is the right of an individual or party to retain the property of the borrower
until a debt talen from it is repaid by the borrower. In case of banker’s lien, as a
it is an implied pledge and the banker has the right to sell the securities under
lien after giving a reasonable notice to the borrower in case of his default.

Pledge

The bailment of goods as security for payment of a debt is called pledge. The
relationship of a customer and a banker is this case is that of a pledger
(customer) and a pledgee (banker). The ownership of the goods pledged
remains with the borrower, while the possession is with the banker.However
strict control is there from bank and client has to take permission from bank
before using pledged stock for any purpose or in any quantity.

In case that client uses pledged stock without permission of bank,the case is
called Force Lifting.It is against the predefined terms and conditions.To restrict
it,a third party is appointed for security of pledged stock.That party or person is
termed as Muqadam and is paid by client for his services.

Mortgage

A mortgage is the transfer of an interest in specific immovable property for the

purpose of security for the payment of money advanced or to be advanced by;
way of loan, and existing or future debt, or the performance of an engagement,
which may rise to a pecuniary liability. The transfer is called a mortgagor, the
transferee a mortgage.
 Loan is made against immovable properties or assets or in other words
against fixed assets .The mortage does not transfer the ownership of the
property and the actual possession of the property is also not transferred.
However the mortgagor transfers some of his rights as an owner e.g. He now
cannot sell the property without the consent of the mortgagee that is the bank.

Hypothecation

Hypothecation is an agreement to give a charge to goods or documents of

title without conferring possession of goods . The goods are charged as
security for a loan form the bank but ownership and possession remains with
the borrower. The security is granted by the borrower to the lender by a letter
of hypothecationThis letter also depicts the predefined terms and conditions
for the transaction.

As in hypothecation , physical possession of goods remains to the borrower,

therefore the bank maintains and checks periodical stock reports from the
borrower .These reports contains full current description,value and further
relevant information regarding goods.Also the credit officers make regular and
untold inspections of the stock to ensure the quality and value of stock or
goods.To prevent a possible loss of stock by fire, theft,or any other accident of
any type, and the borrower is bound to get his stock insured. The bank has
the right to take possession of the hypothecated goods as and when required.
Requirements for Loan

Following are the requirements for requesting a loan to the bank

1: business profile

the basic information about the business.The general nature of business and
strengths ,weaknesses and risks involved in it .About the industry and the
number of competitors .from how long the customer is doing this business.

2: Property legal documents

the legal document of property or asset that will be deposited as security.

3: Valuation report

a valuation report made by third party recognized by the state bank of Pakistan
is also needed.it normally includes the snaps,location of site,map of site ,value
of resale.The fee of evaluation report to third party is to be paid by the
customer.Normally a bank official personnel in also present at the time of
evaluation.

4:Company stamp and letter head paid

5: bank statements of last three years.

6.financial statements of business.

Steps Of credit management

1. Proposal
The process of credit management starts with receiving a credit request from
the customer.Each customer has a purpose for borrowing either for their
working capital needs or for some other purpose.. The customer presents his
idea to the banker and wants the information on bank’s facilities. The
proposal is usually made at the business letter head and paid.

2. Processing ,Analysis and evaluation

The next step is the processing of the request.This is a complex and of utter
importance process.and consists of a series of activities to be performed in a
systematic order.

First we have to identify the purpose of taking loan. The possible purpose
may be as according,

 Export Financing .

 Import Trade Financing.

 Working Capital need for Trade and industry.

 Fixed Investment for Industry (Project Financing).

 Purchase of Industrial or Commercial Vehicles.

 Construction of Residential, Industrial and Agricultural

 Buildings.

 Finance for movement of Goods / Crops within the country.

Different financing Facilities are offered according to the purpose of borrowing. Some
facilities may be used for specific purposes because of their nature.
 Then comes the knowing of business prospects of borrower .It may fluctuate
with the changing trends and vary from industry to industry.So it is important
to know the complete business prospects that manifests a complete depiction
of past,present and future of that business and let us to have full idea of all
the controllable and non controllable forces that may effect the business

Then the risks associated are also kept under consideration .All these are on
the side of customer.These risks may be of following categories as follows:

A. Management risk

associated with the managerial capability of owners/managers, their

attitudes, organizational hierarchy, business practices and knowledge of the market.

B: Market risk

it is because of continuing changes in demand-supply relationships

in the market and is caused by any number of factors many of which are uncontrollable.

C:Fluctiontion risk

it is due to significant variations in cost and expenses of the borrowers

operations .It is mostly due to nature of operations and technological equipment being
used in the business.However the extent of flexibility the borrower has in altering its
sales prices accordingly to shift the burden on the consumer is also important.

D: Default risk:

is the risk of the borrower not being able to repay on time .It may be
either because of adverse business circumstances or because of bad intentions of
customer.

E.Marketability risk :

is the risk associated with major fluctuation in the values of collateral

securities pledged to the bank

Also the analysis of financial statements and financial ratios of the client’s business are
kept under consideration.The ratios used in this regard are

• Current ratio ,Acid Test Ratio ( liquidity ratios)

• Debt to Equity Ratio, Fixed Assets to Net-worth, Interest Coverage Ratio.

( leverage ratios)
 • Total Assets Turnover Ratio, Inventory Turnover Ratio, Accounts Receivable
Turnover Ratio. ( activity or turnover ratios)

• Net Profit Margin, Return on Assets, Return on Equity.( Profitability ratios)

• Earning per Share, Dividend per Share, Price Earning Ratio, Yield per Share.
( Common stock ratios)

While processing a loan proposal, bank has to do a detailed ,continous and

ongoing negotiation with the customer.It let the customer to have important
terms and conditions and knowledge about certain things and then confirm
them from customer. The negotiation phase is very important and usually here it
is decided that whether funded based or non funded based credit are more
worthy for customer.Also it clarify the mode of charges upon assets taken as
security.Some other prospects like period of financing or maturity period are
also settled.

3. Decision
After the complicated process of analysis ,if the customer’s business
level and activities and his nature and value of assets as securities fulfill the
banks standard,then the case it considered by Branch Credit Committee.It
may moves to Area Credit Committee,Regional Office Credit Committee and
Head Office Credit Committee.

4. Documentation
The maintenance, timely updating and monitoring the documents of
customers is also a major function that credit department has to perform. These
documents carry a substantial value and create a great problem if any dislocation
occurs.So for this reason,even the photo copies of original documents are also kept in
custody.

As soon as a person submits proposal for loan,his separate file Is compiled and all
documents are kept in it.Here we discuss the ingredients of a typical credit file of any
customer.Most of them are general but few specifications exists.These common items
are divided by separtors and are as follows,

4-A. Correspondance

The correspondence section of credit file comprises of any type of

correspondence that is made with the client.Eg correspondence relevant to
banking facilities ,Request for renewal ,Request for enhancement of facility
etc.It usually comprises of borrower basic fact sheet , any kind of inter office
memos , request letters ,loan application form , personal financial statements
etc.

Among these documents ,the borrower basic fact sheet is the most important
and comprehensive.It depicts a very wide picture of the customer.

The initial section of the sheet comprises of simple data about customer like
Name , address,phones number ,email , CNIC, national tax number
,import/export registration number ( if applicable).The second section tells
about details of directors /owners/partners .here their percentage share
holding and share holding in amount is also mentioned.Then next section is
about management that asks about executive directors/partners or non
executive directors/partners.Further section asks about corporate status
( proprietorship/partnership/public or private limited company) and nature of
business that may be industrial ,agricultural,commercial,services or any
other.next section shows the requested limits.next section asks the business
handled by customer with all financial institutions in last 1 accounting year.The
eight section asks the details of prime assets that are to be taken as securities
and finally the details of personal guarantees are mentioned.

4-B..Financial and credit reports

This section of credit file consists of financial and credits reports.The

most important of them are

• Auditors report : recognized balance sheet of client by any charted firm.Profit &
loss account ,projected balance sheet , projected profit and loss account
,projected cash flow statement etc are included.

• State bank of Pakistan report: report by the customer protection department of

state bank of Pakistan.the consumer credit information report tells whether the
 person has already taken loan or not and in case if he has taken,then also tell its
record.

• Credit risk rating: Risk is rated at many attributes by the credit managers.The
lower is the risk,higher are the scores allocated.

• Financial highlights: It consists of Profit & Loss account ,,balance sheets, various
ratios like current ration ,debt to equity ratio ,leverage ratios ,and return on equity
ratios ..All these are present at a single page.In other words ,we can say that it
summarized the financial level of business.

4-C. Approvals/Renewals

This section of credit file normally consists of

• Credit Approval Face: it shows the branch name,branch code ,credit approval
number ,credit approval level ( BCC,AOCC,ROCC,HOCC), review
(initial,interim,annual) and also the existing and proposed limits of clients.

• Business /Performance statistics : its shows the summary of business activity for
the last several years.

• Basic information report: its first portion tells about management ,history ,main
business activities,operational facilities ,major buyers,distribution and selling
teams, key buyers and buying teams ,major competitors ,business growth
prospects and key success factors.

The second portion asks for management assessment form ,rating at various
attributes like market repute,experience,influence,qualification,financial
controls,efficiency ,risk management etc.

4 D..Credit Memo

This section of credit file defines the relationship strategy and marketing
profitability for next twelve months with the customer.also the strategy needs to be
justified on many qualitative attributes.
4 e. Financials.

The final section of credit file holds the financial statements of customer’s
business.

5.Disbursement
All legal documents are obtained and Credit sanction advise is prepared
which consists of Date of opening, Date of maturity, Nature of the business,
Type of facility, Purpose of facility,Securities, Source of repayment.

Once these things are cleared, New account is opened. The Drawing Power
(DP) is issued to borrower. Drawing Power depends on the amount of loan
and the period of financing.There are two accounts maintained for each
borrower, Credit Account and the borrowers account. In the start, the credit
account has a credit balance equal to the amount of loan. After all other
requirements are fulfilled; the loan is actually transferred to the borrower by
debiting the credit account and crediting the customer account. Now the
borrower can draw the amount from his account according to his allotted
Drawing Power (DP).After a fix time period, on each installment date, borrower
has to repay the principal and mark-up. Loan repayment installments are
deducted by debiting the customer account and crediting the credit account.

6. Review

Its comprises of controlling and monitoring the whole process until the loan
is fully repaid by the customer.
Leasing department

Previously there Askari Leasing Corporation was a separate company but now
it has been merged with the Askari Bank.The Askari bank rahim yar khan
branch does only capital leasing.The bank is involved in car ,CNG
machinery,medical mechinary ,power generators and others leasing.
The leasing process is very simple.After sharing by customer,a little portion in
equity of desirable commodity, the bank shares its fund and purchases and
gives that commodity to the customer.The customer freely uses that commodity
and repays the bank fund in easy installments.In Askari Bank,the customer can
have an initial equity of 25-50%.
The components of leasing are leasee, which is the user or customer and the
second component is the leaser which is the bank.

Stages of leasing

It consists of three stages which are

Head Office,
1.Documentation
Multan
Its further comprises of two sections which are

1-A: Pre Approval:

Incharge Assistant
• CNIC Rao Naeem Ahsan
• Passport size pictures.
• Utility bill photo copy
• Proof of income.( letterpad for
businessmen,salary slip for holder,jamabandi for Inspection
agricultural related person)
• National tax number (if exists) Sobydar (R) Ashraf
• Two references and photocopy of CNIC of
referees.
• CIB report
• Verification by bank special employee

1-B: post approval

• Lease agreement
• Post dated cheque book
• Personal guarantee
 • Borrower basic fact sheet.
• Down payment

2: Calculation

These calculations are mostly computer generated and are according to

predefined terms and conditions.
The calculation sheet comprises of cost of that item that is purchased by the
customer.Then the equity of customer is there.And then the insurance
percentage.Below them ,are the calculated values of total monthly rental
(monthly insurance,monthly rentel) that is to be paid upto pre decided period
either 3,4 or 5 years.Then it shows the equity participated amount,first year
insurance amount,first month rental,documentation charges,and tracker
charges(in case of car).

3.Policy Parameters

These are the banks policies,terms and conditions regarding leasing of

various items.
Accounts Department

The basic responsibility of this department is to keep the

record of each and every transaction and prepare reports
about the amount of deposits and advances and sent to
Head office or State Bank of Pakistan on monthly,
quarterly and yearly basis.

Activities

The accounts department deals with many important

activities.Some of these are,

 Budgeting
Its prepares the budget of the branch.the
budget is then continuously checked,maintained and
controlled.

 Vouchers sorting
Its comprises of sorting , checking
and clearing all vouchers like cheques ,deposit slips ,online
slips,credit card slips etc.This is very time consuming job and
needs full concentration to be done.
First you have to separate the deposits slips into
current,saving account or basic banking account type.then
they have to be arranged in ascending order.and finally they
are checked against the computer generated reports.Similar
treatment is done with cheques and other vouchers.

 Reporting
The account department has to
prepare various reports like sorted and arranged vouchers
report ,statement of affairs,Outstanding receipt report,currency
wise deposit reports ,income and expenditure reports, Assets
& Liabilities ,Budget Review Report Monthly Monitory
Statement ,Monthly Performance Review Report
Monthly fixed investment reports.
These reports vary in their duration and may be
daily,weekly,monthly,quarterly ,semi annually or annually.
 Maintenance & depreciation of fixed assets

Account department holds the records

of all assets present within the branch.Each and every asset
present in the branch is assigned computer generated number
slip that acts as its identity.Then the assets are also
depreciated under the straight line depreciation method.

 Closing entries

The closing entries are also passed on

daily,weekly,monthly,semi annually and yearly bases to
calculate the profit and analyze the overall performance for a
certain period.

 Human resource Department

In the Askari Bank Rahim yar khan branch , the Human Resourse
Department also works together alongwith the account department and by
the same employees.Though most of the human resource related policies
and activities are centralized in Askari Bank,yet this department perform
some activities like performance evaluation report making of bank
employees ,feedback /complains from employees, any conflict or problem
resolution with the bank or its employees.This department also monitors
and handles matters relevant to internship and internees.Obviously it is
this department that clarify any candidate for internship approval ,then
makes its placement and finally evaluate its performance and task
performed and grants the Internship Letter.
 Summarized performance of Askari Bank
At the end of 2009

Operating Profit-------------------------------------Rs 4.557 Billion

Profit after tax---------------------------------------Rs 1.108 Billion ( Up by 187%)

Total Assets-----------------------------------------Rs 254 Billion ( up by 23%)

Deposits----------------------------------------------Rs 206 Billion ( up by 23%)

Deposit Accounts----------------------------------692821

Shareholder fund----------------------------------Rs 14.95 billion

Operating expanse--------------------------------Rs 7030 Million

Equity-------------------------------------------------Rs 14.95 Billion (up by 15%)

Advances--------------------------------------------Rs 148 Billion(up by 6%)

Market price per share---------------------------Rs 27.30 ( up by 87%)

EPS---------------------------------------------------Rs 2.18 (up by 187%)

Permanent employees---------------------------4461

Temporary employees---------------------------1669

Branch network------------------------------------226
Financial Analysis

Statement of Financial Position (As at December 31, 2009)

2007 2008 2009

Rupees in millions
Assets
Cash And balances with 13,356 16,030 19,386
treasury banks
Balances with other banks 3,497 3,955 8,364
Lendings to financial 14,444 4,480 4,614
institutions
Investments 39,431 35,678 67,046
Advances 100,780 128,818 135,034
Operating fixed assets 5,128 8,266 9,846
Other assets 5,535 8,964 10,036
182,172 206,191 254,327
Liabilities
Bills payable 2,627 2,585 2,946
Borrowings 17,554 15,190 19,300
Deposits and other accounts 143,037 167,677 205,970
Sub–ordinated loans 2,997 2,996 5,995
Deferred tax liabilities 472 13 334
Other liabilities 3,220 4,759 4,833
169,906 193,220 239,378
Net Assets 12,266 12,971 14,949
Presented by
Share Capital 3,006 4,059 5,073
Reserves 6,948 7,667 7,183
Unappropriated profit 2,145 309 886
12,100 12,035 13,143
Surplus on revaluation of 166 936 1,806
assets – net of tax
12,266 12,971 14,949
Profit and Loss Accounts (As at December 31, 2009)

2007 2008 2009

Rupees in Millions
Mark–up / return / interest earned 15,143 18,393 22,662
Mark–up / return / interest 8,686 10,651 13,629
expensed
Net mark–up / interest income 6,458 7,743 9,033
Provision against non–performing 3,920 3,825 2,324
loans and advances
Impairment loss on AFS investments – - 431
Provision for impairment in the value 2 1 77
of investments / Rev repo
Bad debts written off directly - 247 -
3,922 4,073 2,915
Net mark–up / interest income 2,536 3,670 6,118
after provisions
Non mark–up/interest income
Fee, commission and brokerage 1,073 1,258 1,308
income
Dividend income 137 174 163
Income from dealing in foreign 656 874 538
currencies
Gain on sale of investments – net 2,361 37 144
Unrealised gain on revaluation of 2 22 (2)
investments
classified as held for trading – net
Other income 337 343 404
Total non–markup / interest income 4,565 2,707 2,555
7,101 6,377 8,672
Non mark–up/interest expenses
Administrative expenses 4,790 5,904 6,996
Other charges 12 11 34
Total non–markup / interest expenses 4,802 5,916 7,030
Profit before taxation 2,300 461 1,642
Taxation – current 99 17 562
‘prior years’ (234) (50) 120
‘ deferred (246) 108 (147)
(381) 75 534
Profit after taxation 2,681 386 1,108
Basic / diluted earnings per share 6.61 0.76 2.18
– Rupees
 Ratio Analysis

Current Ratio

= Current Assets / Current liabilities

2005 2006 2007 2008 2009

(Ruppees in 000’s)
Current
Assets 141907045 162223257 177043457 197924680 244481006
Current
Liabilities 136512477 154980358 169905898 193219775 239378374

Current 1.039 1.04 1.05 1.01 1.03

Ratio

Current Ratio
1.06 1.05
1.039 1.04
1.04 1.03
1.02 1.01
1
0.98
2005 2006 2007 2008 2009

Belonging from Liquidity ratios, this ratio is mainly used to give an idea of the company's
ability to pay back its short-term liabilities (debt and payables) with its short-term assets
(cash, inventory, receivables). The higher the current ratio, the more capable the
company is of paying its obligations. A ratio under 1 suggests that the
company would be unable to pay off its obligations if they came due at that point.

So Askari Bank is currently going adequate at it

Quick Ratio
 = ( Current assets - Receivables ) / Current liabilities

2005 2006 2007 2008 2009

(Ruppees in 000’s)
Current
assets - 55930150 63043885 76263295 69106438 109446507
receivables
Current
Liabilities 136512477 154980358 169905898 193219775 239378374

Current 0.40 0.40 0.44 0.35 0.45

Ratio

Quick Ratio
0.6 0.44 0.45
0.4 0.4 0.35
0.4
0.2
0
2005 2006 2007 2008 2009

Also Belonging from Liquidity ratio, the quick ratio is more conservative than the current
ratio, a more well-known liquidity measure, because it excludes receivables from
current assets. The resulting assets are therefore highly liquidized. Thus gives an idea
of the company's ability to pay back its short-term liabilities (debt and payables) with its
short-term most liquidized assets.

Debt Ratio
 =Total liabilities/Total assets

2005 2006 2007 2008 2009

(Ruppees in 000’s)
Total
Liabilites 136512477 154980358 169905898 193219775 239378374
Total
assets 145099907 166033588 182171885 206191138 254327446

Current 0.940 0.933 0.9326 0.9370 0.9412

Ratio

Debt Ratio
0.945 0.94 0.9412
0.94 0.937
0.935 0.933 0.9326
0.93
0.925
2005 2006 2007 2008 2009

Belonging from solvency ratios,this ratio indicates what proportion of debt a company
has relative to its assets. The measure gives an idea to the leverage of the company
along with the potential risks the company faces in terms of its debt-load.
As the latest figure is less than 1 or 100 % ,this means that Askari Bank has more
assets as compared to its liabilities.

Operating Profit Ratio

 =Operating profit / turnover

2005 2006 2007 2008 2009

(Ruppees in Million’s)
Operating
Profit 3461 4476 6222 4534 4557

Turnover 6055 7759 11024 10450 11588

Op. Profit 57% 57% 56% 43% 39%

Ratio

OperatingprofitRatio
57% 57% 56%
60% 43% 39%
40%
20%
0%
2005 2006 2007 2008 2009

Belonging from profitability ratios , this ratio used to measure a company's pricing
strategy and operating efficiency. Operating margin gives analysts an idea of how
much a company makes (before interest and taxes) on each Currency unit of sales.

Net Profit Margin

 =Net Profit/ Turnover

2005 2006 2007 2008 2009

(Ruppees in Million’s)
Net Profit 2022 2250 2681 386 1108

Turnover 6055 7759 11024 10450 11588

Net profit
ratio 33% 28% 24.3% 3.6% 9.5%

Netprofit Ratio
40% 33%
28% 24%
30%
20% 10%
10% 4%
0%
2005 2006 2007 2008 2009

Also belonging from profitability ratios, Net Profit margin is an indicator of a company's
pricing strategies and how well it controls costs.
The net profit margin ratio tells us the amount of net profit a business has earned. That
is, after taking account of the cost of sales, the administration costs, the selling and
distributions costs and all other costs, the net profit is the profit that is left, out of which
they will pay interest, tax, dividends and so on.

Return on average assets

 = Net income / Total assets

2005 2006 2007 2008 2009

(Ruppees in Million’s)
Net
income 2022 2250 2681 386 1108
Total
assets 145100 166034 182172 206191 254327

ROA 1.40% 1.40% 1.50% 0.19% 0.44%

ROA
2% 2%
1% 1%
2%
1% 0%
1% 0%
0%
2005 2006 2007 2008 2009

Also belonging from profitability ratios ,It is indicator of how profitable a company is
relative to its total assets. ROA gives an idea as to how efficient management is at
using its assets to generate earnings. The assets of the company are comprised of both
debt and equity. Both of these types of financing are used to fund the operations of the
company. The ROA figure gives investors an idea of how effectively the company is
converting the money it has to invest into net income. The higher the ROA number, the
better, because the company is earning more money on less investment.

Return on equity

= Net Income / shareholders equity

 2005 2006 2007 2008 2009
(Ruppees in Million’s)
Net
income 2022 2250 2681 386 1108
Total
equity 8813 11053 12266 12971 14949

ROE 23% 21% 23.3% 3.01% 7.4%

ROE
30% 23% 23%
21%
20%
7%
10% 3%
0%
2005 2006 2007 2008 2009

Also belonging from profitability ratios ,It tells measures a corporation's profitability by
revealing how much profit a company generates with the money shareholders have
invested. amount of net income returned as a percentage of shareholders
equity. Return on equity

Profit before tax Ratio

= Net profit before tax/ Turnover

 2005 2006 2007 2008 2009
(Ruppees in Million’s)
Net profit
before tax 2859 3347 2300 461 1642
Turnover
6055 7759 11024 10450 11588
Profit
before tax 47% 43% 20% 4.41% 14.16%
ratio

Profit before tax ratio

60% 47% 43%
40%
20% 14%
20% 4%
0%
2005 2006 2007 2008 2009

Also belonging from profitability ratios ,this measure looks at a company's profits before
the company has to pay corporate income tax. This measure deducts all expenses from
revenue including interest expenses and operating expenses, but it leaves out the
payment of tax.

Price Earning Ratio

 =Market price per share /Earning per share

2005 2006 2007 2008 2009

Ruppees
Market
price per 126.80 104.95 99.75 14.57 27.30
share
EPS
13.42 7.48 8.92 0.95 2.18
Price
earning 9.44 14 11.18 15.33 12.52
ratio

price earning Ratio

20 14 15.33
11.18 12.52
15 9.44
10
5
0
2005 2006 2007 2008 2009

Belonging to investment ratios ,It is a valuation ratio of a company's current share price
compared to its per-share earnings.

Dividend Payout Ratio

=Dividend per share/ EPS

 2005 2006 2007 2008 2009
Ruppees
Dividend - -
per share 1.5 1 1.5
EPS
13.42 7.48 8.92 0.95 2.18
Dividend - -
payout 11.18% 13.37% 16.82%
ratio

Dividend payout Ratio

20.00% 16.82%
11.18% 13.37%
15.00%
10.00%
5.00% 0 0
0.00%
2005 2006 2007 2008 2009

Belonging to investment ratios, the payout ratio provides an idea of how well earnings
support the dividend payments. More mature companies tend to have a higher payout
ratio

Dividend yield ratio

=Dividend per share/Market price per share

 2005 2006 2007 2008 2009
Ruppees
Dividend - -
per share 1.5 1 1.5
Market
price per 126.80 104.95 99.75 14.57 27.30
share
Dividend - -
Yield ratio 1.18% 0.95% 1.50%

Dividend Yield Ratio

2.00% 1.50%
1.50% 1.18% 0.95%
Dividend Yield
1.00%
Ratio
0.50% 0 0
0.00%
2005 2006 2007 2008 2009

Belonging to investment ratios ,it shows how much a company pays out in dividends
each year relative to its share price. In the absence of any capital gains, the
dividend yield is the return on investment for a stock.

Advance to Deposit Ratio

= Total advances / total deposit

 2005 2006 2007 2008 2009
Ruppees in Million’s
Advances
85977 99179 100780 128818 135034
deposits
118795 131839 143037 167677 205970
Advance
to deposit 72.40% 75.23% 70.46% 76.82% 65%
ratio

Advance to deposit Ratio

80.00% 72.40%75.23% 76.82%
75.00% 70.46%
70.00% 65% Advance to deposit
65.00% Ratio
60.00%
55.00%
2005 2006 2007 2008 2009

Belonging to activity ratio,it is particularly about banks that how much they have coming
in (deposits) vs how much they have going out (loans). The more money the bank has
loaned out generates more interest income provided the loans are to secure borrowers
But they should not exceed 100%. Do not loan out more money than they have on
hand. They have to borrow from the Federal Reserve if they do.

Capital adequacy ratio

= ( 50% of RF limit) + ( 100% of CF limit) +( 50 % of LG- cash margin)

 2005 2006 2007 2008 2009

CAR 11% 10.90% 9.35% 9.22% 11.75%

Advance to deposit Ratio

15.00% 11.00% 10.90% 12%
9.35% 9.22%
10.00% Advance to deposit
5.00% Ratio
0.00%
2005 2006 2007 2008 2009

Capital Adequacy Ratio (CAR) is a ratio that regulators in the banking system use to
watch bank's health, specifically bank's capital to its risk. Regulators in the banking
system track a bank's CAR to ensure that it can absorb a reasonable amount of loss.

Here CF limit is most risky ,so we consider 100%.

SWOT ANALYSIS

Strengths
 Askari Bank has a massive network of 226 branches , including 31 dedicated
Islamic banking branches.This let them to serve a huge segment of customers
from almost every sort of occupation, and make more profitable relationships with
customers by satisfying their customized needs.The bank has not retained here
but is inclining at its journey of success as opening of many new branches in
remote areas as well as in serving areas, is under consideration.

 Askari bank is a subsidiary business unit of Army Welfare Trust.This is one of the
biggest strength for the bank because Army Welfare Trust has established strong
financial,industrial,technological and diversed market matrix.They have a well
furnished logistics infrastructure.This has lead in attracting large number of
customers and also making strong and long lasting relationships with industrial
and corporate level clients.Also now the salaries of military personnels are
dispatched by Askari Bank.All these things have turned Askari Bank as the
fastest growing bank of Pakistan.The many awards that it has received is clear
sign of its brisk progress.

 Askari bank is serving a huge market segments and its market offering are also
diverse and flexible according to the segment needs and specification.However
this has not let the bank to compromise at its quality standards.Supreme and
elegant service is the top most priority of the bank.

 Askari Bank has the largest ATM network in the county that comprises of shared
network of 4,173 online ATMs covering all major cities in the country.These
machines can be used at any time.Askari Bank has installed the technologically
advanced and latest ATM machines that work in optimized way without any
obstacles like jamming etc.

 Askari bank is powered by Army welfare turst.So discipline and time is given the
utmost importance.The employees reach the branch atleast ten minutes before 9
am and the banking activities are launched right at 9 am and its goes non stop
upto 5 am.This thing makes the customers feel very ease to visit the bank.This
finally leads to customer loyalty ,retention and thus profitable
relationship.Disciplines obviously garnishes and boosts the activities and
behaviors of employees.

 Askari Bank believes in customer orientation.It offers huge flexibility in its various
services and thus it becomes very simple,easy ,attracting and affordable for the
customer to chose the desired facility.The bank pays keen attentation at
customer relationship management and special purposely developed softwares
and technological instruments are used for this matter.
  Information technology has revolutionalized the banking industry.Askari bank’s
management believes is embracing the state-of-art and latest technology to
ensure brisk and quality services.This not only provides the quality in offering
services but also saves time,energy and cost. ACBL 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, automatic teller machines, and electronic funds transfers among the
others and also Askari Bank is the first to launch many of these services.

 Askari bank has keen concern for the people, ethics and environment .So it
enjoys good and better public reputation,goodwill as compared to its competitors.
This is one of the greatest strengths that lets bank not only to retain existing
customers but also to attract new customers.The bank has made enough
contributions in sports sponsorships, education ,environmental friendly and other
social activities.

 The human resource philosophy at Askari Bank focuses on multi-talent merit

based hiring, professional grooming, requisite training.the employees are
consistently undergone by various sorts of trainings.These talented ,multi
skilled ,motivated and energetic employees are the assets of Askari Bank.and
the Bank pays special attention to their circumstances.Askari Bank gives
maximum salary to employees among all private banks.In addition to basic
salary,there are many other rewards like insurances ,medical and bonuses
.Employees here feel secure at their position and have maximum job
security.These all elements acts as huge motivational source for employees and
the result is that bank enjoys their maximum output.

Weaknesses
 Though much of the work is computerized but even then at few places ,the
employees do some work at hands and then also record at computer.This dual
recording takes more time.

 There is a high degree of centralization in the bank.Even minute level problems

and matters are sent to higher management for recognition.This results in delay
at work both at the part of employees as well as customers.

 Askari Bank is providing credit facilities mostly in the urban areas but this facility
is much limited and strict in rural areas.

 Askari bank is paying more importance to commercial credits . Pakistan is

agriculture country but agri credits are less favoured.Also their criteria
standards ,terms and conditions are more rigid.

 Small and Medium industries play a vital role in our economy.but the bank is not
offering any peculiar services for them.They can avail the general commercial
credits only.Which is some cases , becomes inadequate for such industries.

 The documentation process specially in credit department is much complex and

time taking.In many cases ,a single sort of information is narrated many times at
different pages.This takes extra time and energy.It can be overcome by full
computerized activities.

 Like many other ,employees here are given targets specially for deposits.This
diverts the attention of employees to fulfill target and they spend their mind and
energy in doing this.This behaviour discourages creativity and innovation.

 In any single city ,Askari Bank has not adequate number of branches as
compared to its competitors like MCB, UBL, ABL,Bank Alfalah etc..It has only
single branch in most of cities including Rahim Yar Khan.This thing may facilitate
its competitors to serve and win more customers.

 Though Askari Bank has central Human resource department but as far I have
observed ,the HRM department at RYK branch is just upto the extent of
existing.No special problem solving unit is there to monitor employees complients
,suggestions and other problems.

 Though Askari Bank is offering locker facility but it is limited and is not offered in
all of its branches.

 The dedicated Islamic Banking Branches offered by Askari Bank are very less as
compared to its competitors.
Opportunities

 Askari Bank has a less branch network as compared to its competitors .Opening
more branches in existing as well as new markets will also be huge opportunity
for the bank.

 Askari Bank has no foreign branches in countries like UK ,USA,Saudi Arabia

,United Arab Emirates etc. A large Pakistani community lives in these
countries.So it can open its foreign branches in these countries.

 A major proportion of population in our country lives in rural areas .but Askari
Bank has negligible branches in Rural areas.Opening more branches in these
areas could be a good growth and progressive opportunity.

 Banking practices in West now enjoy full computerized mechanism.which

completely gets rid of any sort of manual work by hands.Askari Bank should
adopt such practices that will save time ,cost and energy both at the part of
customers and employees.

 Islamic Banking is getting rapid success and repute among Muslim countries.It
has also been charted by some Muslim scholars.Being according to the values
and practices of Islam, it has won more trust of people.Currently Askari Bank has
only 31 branches dedicated to Islamic Banking.Opening more Islamic Banking
branches could be massive opportunity for the bank.

 A large majority of students studying in larger cities use ATM cards.Askari Bank
can attract such customers by offering flexible and appealing packages and
services relevant to ATM and basic banking accounts.

 Small and Medium enterprises are playing a back bone role in Pakistani
Industry.Askari Bank has splendid opportunity by serving peculiarly to such
segments by opening dedicated branches to them that would be specialized in
marketing offers for such segments.

 Askari Bank could focus at specialized money transferring services as being

offered by Western Union.An existing market repute ,goodwill and the back of
Army Welfare Trust will let it to boost it this segment as well.

Threats
  Charges received by Askari bank are higher as compared to its
competitors.Though it is also providing more supreme services,but this thing may
become as their threat.

 Askari bank is suffering many massive expanses that can be avoided.For

example,most of its branches operate at rented building.The higher commercial
rents of such branches accumulate to form a huge expanse that bank has to
suffer.

 The briskly inclining rate of inflation , increasing prices of major commodities like
electricity , gas , phone etc ,unemployment has massively affected the
purchasing power of common people.This is one of the largest threat for it.

 The present economical , political and current circumstances of the country are
very discouraging for the banking industry.There are so many crises , war
against terrorism .These factors ultimately affect the business activities in a very
adverse manner.

 The stiff competition from many competitors in banking industry is also an

alarming factor.Also at present,the bank is facing tough competition and
unfavorable forces specially as it tries to launch operations in new and remote
markets.The bank should regulate special policies to overcome these.

 Askari Bank is powered by Army Welfare Trust.Unfortunately there are some

forces within the country that are against the Army.Thinking Askari Bank to be an
Army based ,organizationSuch elements may prove a big threat.

 Though Askari Bank is paying elegant salaries and other rewards to its
employees but even then there is high rate of employee turnover.This could be a
big threat for the bank.

 Recent flood has massively destroyed many parts of our country.Such natural
disasters are also big threat for the bank.Already Askari Banks is suffering loss of
millions of ruppess because of recent floods in the country.

Suggestions & Recommendations

 Doing internship at Askari Bank was an interesting ,gaining
,grooming and ever remembering experience .The highly cooperative
staff , variety of tasks , dealing and communication with customers
and documentation were some of tasks that made me to gain a lot.
Though there every activity was at its elegance,but I am here giving
some suggestions that in my thinking will be beneficial for the bank.

 Askari Bank must expand its network of branches.Like in Rahim yar khan, it
holds single branches in most of cities.This thing could be very fragile for bank as
its competitors are serving more than one branches in single city as well.

 Pakistan is an agricultural country and most of its population lives in villages and
rural areas .However contrary to this fact,almost all of the branches of Askari
bank are in urban areas.Bank’s management should pay serious attention to
this.Though bank is offering special services in agriculture but clients has to
travel far to urban areas to access its services.So there are much chances that
such customers turn to some other bank.

 Today is the era of electronic media and advertising play a major role in the
success and worth building of any organization.Askari bank’s management
should pay some attention at this side as well .By giving consistent
advertisements in electronic as well as print media to aware, retain,attract and
appeal people.

 There is a high degree of centralization in Askari Bank.It should be bit flexible as

here in this branch,I have seen many simple cases where many matters get late
or pending because the case is being sent to higher authorities for approval.

 Though there exists Human Resource Department in Askari Bank ,Rahim Yar
Khan but it is just upto name of existence.There is no HR specialized personnel
for it and normally accounts department employees also perform its tasks and
activities.This should be removed and HRM department should be trimmed with
specialized persons in order to ensure efficient and effective working of this
department.

 Askari Bank offers higher charges in many of its services as compared to its
competitors.I think they should be bit flexible in this regard.

 The present branch is in a rented place that is not purposely built .The numbers
of customers are growing quickly with the passage of time and now sometimes
there get much rush and no place gets available to sit.This also results in
unwanted noise that disturbs all the people there.So the branch management
should highlight this issue to the higher authorities and branch should be shifted
to some new purposely built venue.
Conclusion

Askari Bank is appearing as a strong financial institution that has recently

celebrated its 18th birthday during these summers.The organizational policies
,vision and mission all depict its essence and ideology of an ideal banking
 institution that delivers elegant services by nourishing supreme ,competitive and
favorable environment.

Overall experience there was very good .Branch management pays keen
attention and concern for all employees.The employees are motivated
,energetic ,well groomed and trained in order to serve the customers in most
effective manner.Special individualized attention is paid to every customer and is
also given guidance in important consultancy.

However due to growing number of customers and over whelming work ,its
becomes very difficult for managers to properly guide internees.And internees
have to put maximum effort and patience to get guidance and knowledge.

All the department have their own importance in bank.And so internees are
sometimes rotated in all departments but this gives them negligible time to get
adequate grip and knowledge in any particular department.Before me,few
internees were given full rotation in bank but at my time and after that, internees
were confined to few departments only.

I started my internship at general credit department, then proceeded to accounts

department ,then to leasing department ,then to agri credit department and finally
again back to general credit department where my tenure of internship ended.
Besides the routine banking activities,the employees also used to enjoy pleasing
occasions like on raining day,they used to enjoy traditional food items like
pakoray etc.This thing is very good because such little pleasing moments and
happiness let employees to get fresh and have sometime to be spent together.
As far as the future of Askari Bank is concerned, I perceive it is very splendid
.The bank’s policies, vision , flexible approach ,financial strength , strong back
and firm foundation ,all these elements have already put the bank on its journey
to marvelous success .It has proved its value and strength in a very brief span of
time and yet it has a long way to go ahead.The commitment ,teamwork and
fairness of bank’s employees and the integrity of all of its activities are focused at
efforts driven towards success ,customer satisfaction and eventually long term
profitable relationships.

References
www.askaribank.com.pk

www.awt.com.pk

www.brecorder.com

www.wikipedia.com

www.google.com

http://www.onepakistan.com/finance/news/

http://www.pakistanbizbuzz.com/articles/business/

http://www.ibp.org.pk/