Professional Documents
Culture Documents
The first modern bank was founded in Italy in Genoa in 1406; its
name was Banco di San Giorgio (Bank of St. George).
The word bank can be traced down to the ancient Roman Empire,
when money lenders would set up their stalls in the middle of an
enclosed courtyard called macella on a long beach called bancu
Banking is one of the most sensitive businesses all over the world
and play important role in the economy of a country and Pakistan is
no exemption and in a contemporary world of money and economy.
The banking system of any economy is an undeniable determinant
of its growth as it provides an efficient channel that routes funds
from surplus sectors in the economy towards deficit ones. Banks
are custodian to the assets of the general masses.
The commercial banks are classified into various types on the basis
of their spheres of activities, ownership, domicile etc. The main
types of banks are: -
Central Bank
Commercial Banks
Exchange Banks
Saving Banks
Agricultural Banks
Industrial Banks
Domestic Banks
Foreign Banks
Privatized Banks:
Private Banks:
Foreign Banks:
Till the end of 1980s Pakistan banking sector was heavily regulated
in most of the areas of activities. The regulated and nationalized
banking system created an industry structure where competition
was unknown to management of the banks, Forced by the
structural reforms agenda and the desire to strengthen its financial
system. Pakistan moved towards liberalization and financial sector
In the mean while western banks started entering into the business.
They with the support of ruling elite, concentrated on the big
business, leaving the routine business to local banks. This reduced
the profitability of the local banks. Banking industry has grown and
still growing as numbers of banks are increasing and other new
entrants are coming to Pakistan.
Consumer Financing
1. House financing
2. Auto financing
Micro credit financing
Islamic Banking
Large loans imply few beneficiaries and similarly if big loans default
their losses can be equally hazardous. Converse is true for Micro
Credit Loans.
Islamic Banking:
Mission
Branches
Finance department
Marketing department
Customer services department
IT department
Operations department
Finance Department
Reporting line:
Payables
Reconciliation
IP (Item processing)
Settlement
B.T.F
Marketing Department
Customer Services
Operations Department
Survival and success of any organization requires its operations to
be tightly monitored and performed well. Askari Bank believes in
handling its operations in an efficient way. A department has been
specially designed to carry the operations held. The operations
department has a hawk’s eye over all the departments working for
the bank but certain departments are made a part of the operations
department because of their well known importance. The
departments under the Operations department are;
Embossing Department
Mailing Department
Recovery Department
Collection Department
Authorization
Designing Department
IT department.
- Mailing Department;
Mailing department has a very vital role in the structure their basic
tasks are listed below
Bills Mailing; The payment of and for the bank also follow the path
which pass the mailing department
Besides the above mentioned tasks though they are pretty tedious
them self, the mailing department is also responsible for the
inventory caretaking for the bank.
- Collection Department;
These are the people who are always being “CURSED” by the
customers because to pay an amount from your very own pocket is
not an easy thing. Plastic money is just like honey when we use it.
It gives us a yummy taste because we are not using our own
money, but when we receive our bills we feel like having chilly taste
with lots of black pepper of this yummy honey. So people in
- Authorization;
This department monitors all transactions being made on the
accounts through the system. This department also looks for any
fraudulent activities.
Contract Renewals.
Performance Appraisals
Increment in salaries
Bonuses Decisions
Leaves
Greeting employees are there to greet walk in customers and guide
them.
IT Department
IT is one of the most important sectors these days, no organization
is complete without the aid from IT department similar is the case
GENERAL BANKING
Name of employer
Designation of the customer
Approximate salary
Area of residence
Residence status whether owned, rented etc.
Expected inflow/ transfer of funds in the account
Overall background
Source of funds
Accounts with other banks
Any other information
For self-employed:
For an organization:
Introduction of an account
Regulation:
Status of customer
RESIDENT:
TYPES OF ACCOUNTS
1) Current Account
It is an account in which profit is paid on the balances.
Any individual, firm, charitable institution, corporation, association
etc, and residents as well as non-residents can open and operate a
current account.
Deduction of Zakat
Zakat would be deducted @ 2.5% on the credit
balance over and above the declared NISAB for the year. PLS
account holders would be required to furnish a Zakat Exemption
Certificate on the prescribed format to be exempted from this
Silent features:
It is not negotiable
It is not transferable
Rates applicable on the original Term Deposit would be applied on
the whole completed period in case of late encashment
i. Current
ii. Saving
iii. Fixed Deposit
Additional requirements and exceptions are outlined hereunder:
No Zakat is deducted
Interest on Saving account and Fixed Deposit are circulated by the
International Division
Prior approval of International Division would be sought for deposits
of 3 months and above
Deposit in cash should be avoided if the retention period is less
than 2 weeks
All deposits and withdrawals in all types of foreign currency
accounts along with balances in each foreign currency are to be
communicated to the Treasury Division on a daily basis as per the
cut off time.
Deposits in cash would be subject to cash handling charges as per
Schedule of Charges in force.
Banker Customer
Bailee Bailor
Bailment:
Receipt of securities:
Sealed Boxes:
Delivery of securities
Banker Customer
Lessor Comsats Institute of Information Technology
Lessee
Lockers cabinets are installed in separate rooms
Each locker has only one key to be used by the customer
The number of the key and the locker to which it relates are not the
same
2nd key is known as master key it is applied by the banker while
opening the locker along with the key of the customer
Operations of locker
Licensing of lockers
Products:
DEMAND DRAFT
Written Order
To pay Money
Drawn by one office of a bank upon another office of same bank
Eligibility Criteria:
Should not be a:
Minor
Illiterate Persons
Insane Persons
Can be issued to:
Individuals
Joint Names
Business Concerns
Can be issued against:
Issuance of DD
Payment of DD
On receipt of IBCA
Scrutiny of IBCA
Verification of signatures of officers of issuing branch
Entry in the system
Vouchering
Payment through suspense account
Special care must be exercised
Entry in system
Intimation to drawee branch
Payment through suspense account should be authorized by the
Manager Operations
Cancellation of DD by authorized officers
Issuance of Duplicate DD
Written Request
Verification of Signature
Marking in the System
Intimation to Drawee Branch
On receipt of reply from Drawee branch
Noting in DD system
Intimation to drawee branch
Dr: Bills
payable a/c DD payable
Crossing
Where a cheque bears across its face an addition of the words and
company or any other abbreviation between two parallel transverse
lines simply, either with or without words not negotiable the addition
shall be deemed to be a crossing and cheque shall be deemed to
be crossed generally.
Special crossing
Sec 124:
Development of crossing
A bank clearing clerk named Irvin originated the idea which finally
led to the establishment of the London Clearing House at Lombard
Street in 1775.
Role of SBP
Clearing Membership
Receipts of Instrument
Instrument must be accepted on the Bank’s pay-in-slip
Deposit slip should contain
Instrument number
Name of drawee bank and branch
Signature of depositor
Immediately on receipt on instrument
Affix bank crossing & clearing stamp on the face of the
instrument
Proper discharge on the reverse of instrument
Depositor account number on the reverse for ease of any
subsequent reference
Organizational chart
1) Product
“Earn Rs. 925/- per month on investment of every Rs. 100,000/- for
one year!"
Features:
Features:
P
r
o
d
u
c
Term Deposit
t
T
y
p
e
:
E
l
i
g
i
b Individuals
i Only
l
i
t
y
:
B M I
a i n
u
p
t
o
5
0
,
0
0
0
/
-
T
e
n
10 Years (5 +
u
5)
r
e
:
P Monthly – on
r completion of
o first 5 years
f
i
t
p
a
y
m
L
i
m
i
t
s
:
Features:
Term
Product
Depos
Type:
it
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.
ASKCARD
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)
Askari Bank offers you its "Rupee Traveler Cheques" eliminating all
financial risks while traveling. So avoid risk of carrying cash through
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
Smart Cash
Product Featuring:
Reside
nt
Borrow Pakista
er: ni
Nationa
ls
Person
al Line
Facility: of
Credit.
Financi Maximu
ng m upto
Limits: Rs.
Eligibility to Apply:
Age: Betw
een
21 to
65
Years
.
Income: Minim
um
gross
mont
hly
incom
e
Rs.
25,00
0/-
only.
Employm a)
ent: Salari
ed:
Minim
um
lengt
Personal Finance
Product Featuring:
Reside
nt
Borrow Pakista
er: ni
Nation
als.
Facility Term
Eligibility to Apply:
Age: Betwe
en 21
to 65
years.
Income Minimu
: m
gross
monthl
y
income
of Rs.
10,000
/- only.
Financi Maxim
ng um
Limits: upto
Rs.
500,00
0/.
(Clean)
Product specification:
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
You always wanted to put in that extra money into your business,
which makes it grow... and grow. Now you can stop worrying about
your daily cash requirements, and start enjoying our unique Askari
Business Finance facility.
Product Featuring:
Borro Residen
wer: t
Pakista
ni
Eligibility to Apply:
2) Price
1) SBP
2) Head Office, Rawalpindi
The markup or price paid for services mainly includes:
3) Promotion
Above the line promotion: Promotion in the media (e.g. TV, radio,
newspapers, Internet, Mobile Phones, and, historically, illustrated
songs) in which the advertiser pays an advertising agency to place
the ad
Below the line promotion: All other promotion. Much of this is
intended to be subtle enough for the consumer to be unaware that
promotion is taking place. E.g. sponsorship, product placement,
endorsements, sales promotion, merchandising, direct mail,
personal selling, public relations, trade shows
Brochures
Banners
Billboards
Ad in the newspaper
Comsats Institute of Information Technology
Direct marketing
Public relations
4) Place
Competitive strategy
As Askari more on to device a strategic plan for coming years for
Askari bank, it need to constantly remind itself that the margins are
shrinking. The number of financial players in the market has gone
up several times since the early 90’s. Not only the number of
players has increased many folds but they are also much better
equipped with much stronger capital bases, reach and competent
managements.
Analysis
Segment
HRD (human resource division)
Staff
Candidate’s Supervisor
Step 1:
Step2:
Step3:
Step4:
Step5:
Step6:
Step7:
IF SELECTED:
Step8:
Step9:
Step10:
IF REJECTED:
Step8:
Segment
HRD (human resource division)
Step1:
Step2:
Step3:
Step4:
Step5:
IF DECLINED:
Step6:
Process is closed.
IF RECOMMENDED:
Step6:
Step7:
Note:
3: Job advertisement:
Step 2:
Step 3:
Step 4:
Step 5:
Step 6:
Services:
Reward system:
Analysis
Analyzing the training and development practice of ACBL and
comparing it with T & D of Bank Alfalah it is concluded that
currently ACBL is effectively meeting its targets, but to encounter
with future demands, ACBL needs to overcome some short
comings in order to maintain and gain competitive edge.
Financial performance:
The scenario of the NPLs does not seem very favorable for the
bank. The NPLs have consistently seen an increase, indicating that
the bank is either not very efficient at collecting the outstanding
loans or has a very liberal loan distribution policy. Their pace of
growth has outdone the rate of increase in advances. The bank
may face considerable credit risk from its loan defaulters. In FY06,
bank s advances witnessed marginal increases in consumer
finances, especially Ijara financing, corporate financing while they
observed a slight decline in the shares of SME and agriculture.
Askari Bank was able to maintain its liquidity condition with keeping
its ratios in line with previous year of FY08. The earning assets to
assets remained at 81% as much of the percentage was due to the
fact of a high increase of investments in the government securities.
Subsequently, advances to deposits remain constant at 71%, as
the bank did not increase its advances to consumers due to high
NPLs to advances in the previous year.
In FY09, the market value rose after the nine months ending
showing a late year push towards the recovery of the economy. As
the investors gained confidence in the company, the results were
shown as the EPS surged from Rs 0.95 to Rs 2.18 in FY09.
However the dividend payout remains very low, as low as 0.07%.
Future outlook
With uncertainty still hovering in the economy and the inflation till
Feb 2010 still remains high at 13.8%, the key policy rate is
designed neither to be tight nor to be sluggish. Therefore much can
be expected in the upcoming year, as the pace for economy
recovery along with increase private credit can uplift the economic
cycle.
The only matter of concern would remain the outcome of the new
monetary policy which is said to be designed in a way to boost the
economy.
S.W.O.T. Analysis
SWOT analysis gives a very good analysis of what the firm is, what
it wants and what can it do to get better than it is at the same time
indicating the factors that could lead to a havoc.
Strength
Weaknesses
Opportunities
Threats
Askari Bank has set its firm foot in Pakistan and has gained its
strengths over the period of time an effort of enlisting its strengths
can be done as follow;
The past decade has been the biggest strength because that was
the time when there was not much of the competition and it gave
time for the company to adjust and now it has grown better than the
rest
It has a good reward policy of giving bonuses and incentives for its
customers.
Askari Bank has a flawless Customer services
The MIS they use in the company is always updated well ahead of
time giving the bank an upper edge
Honesty, Equality and fairness prevail throughout the organization
and that is the utmost requirement.
The card division has strong network facilities nationwide
The bank has also started ATM facility in most of its branches. 24-
hour banking is new trend in Pakistan and ACBL has also taken
apart in this trend.
ACBL have strength that most of the imports & exports which are
done are handled by ACBL.
Weaknesses
Opportunities
Comsats Institute of Information Technology
Better and convenient services to employees and business class.
Expansion of their branch network can be very helpful.
Engage qualified professionals for providing specialized banking
products and services to their customers, reorganization of existing
systems as well as Infrastructure with de-centralized work
processes. The human resource factor plays a critical role
maintaining the efficiency and profitability level of the bank in future.
Institutionalization of HRM (best person should be posted for best
assignment), depoliticizing the atmosphere.
Bank can extend its network in other countries.
It can enhance its profitability by making use of new technology.
The plastic money business still has a lot of potential to grow so it
gives the company an opportunity to introduce new products and
services.
They should keep on looking for opportunities in the market because
it’s a first come first served situation.
Threats
LEARNING
One of the most important aims of student’s life is to express
himself correctly and adequately, with this belief in mind, I decided
to go to Askari bank to complete my internship program.
Duties
I performed different duties that were assigned to me
throughout the internship. Duties that I performed during my 6
Accounts department
Account opening
Credits
Remittances
Foreign & international trade
I also perform my duty of operating photocopy machine and fax
machine.
Accomplishments
I worked in different departments, but the knowledge I
gained from accounts department is very valuable. I really liked
working in that department. Working in this department was quiet
tough as compared to other departments but the knowledge I
gained from that department was very helpful to me.
Among the many things that I have learned almost in the last two
months, the most important for me are the general knowledge that I
now have about the field, as well as the tools that I have gained
that will enable me to perform better when working in the industry.
Bank is facing a high tax rate, which affects its profitability and
attractiveness for new entrants.
Middle class and low income group have limited access to bank
credit.
Weak internal controls, non-merit based recruitments
High administrative costs affect the performance of bank.
Continuous maintenance is compulsory
Favoritisms while promoting employees.
Education level of the employees
Recommendations
Conclusion
Askari Bank has been growing both in size and profits for past few
years and is one of the most reputed groups. It has gained a good
repute in the banking sector of Pakistan.
www.askaribank.com.pk
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Askari bank general banking mannual