EXECUTIVE SUMMARY

The comprehensive study of Askari bank helps to suggest the organizational wide plans
that determine the long run success of the organization, finding new ways to add value,
flexibility, and developing unique skills and ideas to manage people. After analyzing one
can explain that how a bank can provide diversified products & services to the
customers in order to provide them maximum utility. The purpose of Askari bank is to
provide professional integrity, customer satisfaction and teamwork. To achieve
sustained growth and profitability in all areas of business.

This report is a comprehensive study to know the potential of Askari bank. Askari
Commercial Bank is one of the leading banks in Pakistan, which is growing rapidly.
Economy of Pakistan specially banking sector is developing very fast, so there are
opportunities in banking sector. Askari bank was incorporated in Pakistan on October 9,
1991, as a public limited company. It commenced its 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 the KARACHI, LAHORE AND ISLAMABAD
Stock Exchanges and its share is currently the highest quoted from among the new
private sector banks in Pakistan.

Askari Bank has expanded into a nationwide presence of 98 Branches, and an Offshore
Banking Unit in Bahrain. A shared network of over 1,100 online ATMs covering all major
cities in Pakistan supports the delivery channels for customer service. As on December
31, 2005, the Bank had equity of Rs. 8.6 billion and total assets of Rs. 145.1 billion, with
over 600,000 banking customers, serviced by our 2,754 employees.

Askari Bank is committed to develop and enhance each employee’s skills and
capabilities through extensive in-house and external training programs and job rotation.
Productivity of service firm is providing the best service to their customer at low cost.
ACBL (Present name: Askari Bank Limited) tend to attain the maximum share of the
market.

This report includes the brief details about the bank. The major purpose of this report is
to find out the performance, details of all the departments, functions of the Askari bank,

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role of Askari bank in the economy of Pakistan and to prepare a comprehensive report
which covers all the aspects of the bank. In this report, I did the same thing which is
required to study the organization on the whole.

It was a great experience to work at the Askari bank; the things happening were totally
different from what we read in the books. In the period of 6 weeks internship at Askari
Bank Township Branch, Lahore (0056), I had a chance to have the exposure of how a
bank undergoes its functions. I tried my best to gain a practical exposure and an
experience to plan, develop, present and report and to seek a challenging career
oriented position in the field of general banking by using the potential of hard work and
professional skills. It was a large size branch consists of 1 branch manager, 1 operation
manager, 1 in charge general banking, 3 OGIII officers, 8 OGII officers, 5 OGI and
some other clerical staff. As internee I have to help the different employee in the Branch
in their daily work. I was asked to work on the entire general banking except cash
dealings.

First I found out the brief history of the Askari bank to know about the past of the bank
then I found the details about the present functions, its professional out look to attract
the customers and to increase the business. During my internship I was sent to different
departments including Accounts, Credits, customer dealing Account opening, Clearing,
Remittances and Foreign exchange/Trade.

Account opening department gave a chance to know about the account opening
process and requirements. In customer dealing, I learnt how to satisfy the customers.
Remittance department explains the different kind of services provided by the Askari
bank. I tried to explain the (D.D, Pay Order, M.T, T.T) opening, clearing and
encashment process. Accounts department shows all the working of the bank during the
whole period. This department prepares the balance sheet, income statement, salary
slip of the employees and disburses the salary to the employees.

The foreign exchange department provides the detail about the trade of the country the
foreign exchange covers imports, exports and foreign currencies. I learnt about LC
opening, lodgment and retirement and other ways of making an import. The foreign

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currency department shows the currency come in and goes out of the country. Credit
department covers all the schemes which the bank offers to benefit the people of the
country.

At the very end I performed the financial ratio & SWOT analysis of Askari bank to show
the actual position of the bank and to find out the strength, weakness and advantages of
the bank. By analyzing the overall performance I can say that the bank has improved its
working. And it links to be getting better in profit earning sector and it is expected that
the Profitability of the bank will be improved in the future year.

After the analysis I give suggestions to bank which I feel during my internship program
the bank can make rapid progress and can increase its business and performance. So
at the end we can say in the modern era it has achieved a destination where other
competitive modern banks can simply reach.  For the year 2006, Askari bank has won
the Best Consumer Banking Award 2006 from the consumer Association of Pakistan,
the Best Retail Banking Award 2008 from Pakistan Guarantee Export Corporation Ltd.
and The Best Corporate Report Award for the year 2008 from the Institute of
Chartered Accountants in Pakistan (ICAP), and the Institute of Cost and Management
Accountants in Pakistan (ICAMP). That is why people have more trust in askari bank
and they are willingly depositing their money in it without any threat. 
All in all, it was a very good learning; which will be helpful in my career.

INTERODUCTION

18 YEARS OF BANKING HISTORY

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

company. It commenced its 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 the KARACHI, LAHORE and ISLAMABAD Stock Exchanges and its

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share is currently the highest quoted from among the new private sector banks in
Pakistan.

Askari Bank has expanded into network of 226 Branches/ subsidiary branches including
31 dedicated Islamic banking and a wholesale bank branch in Bahrain. A shared
network of over 4,173 online ATMs covering all major cities in Pakistan supports the
delivery channels for customer service. As on December 31, 2009, the Bank had equity
of Rs. 14.95 billion and total assets of Rs. 25433 billion, with over 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 VISION to be the bank of first choice in the region demands continuous strive for
creation of business opportunities with innovation while maintaining the core values to
meet the commitment to all bank’s stakeholders. The range of the products aims to
serve the diverse customer base that comprises of corporate, SMEs, individual savers,
households and, farmers. At the same time, the people are constantly engaged in
assessing customer needs and market dynamics to realign the products and the
priorities to attain brand recognition and competitive edge. ACBL are reshaping its
portfolio of businesses by investing in higher growth areas, extending and developing
the core competencies and moving out of weak and non– core segments.

VISION STATEMENT

To be the bank of first choice in the region

MISSION STATEMENT
To be the leading private sector bank in Pakistan with an international presence,
delivering quality service through innovative technology and effective human

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 resource management in a modern and progressive organizational culture of
meritocracy, maintaining high ethical and professional standards, while providing
enhanced value to all our stakeholders, and contributing to society.

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 maximize use of technology to ensure cost-effective operations, 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 those best meet the customers’ financial needs.
To explore new avenues for growth and profitability.

STRATEGIC PLANNING

To comprehensively plan for the future to ensure sustained growth and

profitability.
To facilitate alignment of the Vision, Mission, Corporate Objectives and
Corporate Philosophy, with the
Business Goals and Objectives.
To provide strategic initiatives and solutions for projects, products, policies and
procedures.

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 To provide strategic solutions to mitigate weak areas and to counter threats to
profits.
To identify strategic initiatives and opportunities for profit.
To create and leverage strategic assets and capabilities for competitive
advantage.
BUSINESS 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
persons 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 principals are adhered by
obtaining sufficient information about the customers to reasonably satisfy ourselves
as to their reputation, standing and the nature of their business activities.
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 an 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.

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 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.

REGULATORS OF ASKARI BANK

The bank firmly believes in regulatory discipline and harmony of the corporate
objectives with regulatory framework. The business methodologies are designed to
ensure compliance with the directives of all the bank’s regulators.

COMMITMENT TO SOCIAL REPONSIBILTY

The bank fully recognizes the corporate social responsibility and contributions to
different areas of the social sector are aimed to help improve the quality of life in the
Country.

INSPIRING RELATIONSHIPS

INSPIRING CUSTOMER RELATIONSHIP

Knowing the customers and their needs is the key to the business success. Askari
bank’s products and services are as diverse as the market segments. Bank’s client
relationship with the 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.

INSPIRING EMPLOYEE RELATIONSHIP

The bank strongly believes that the interest of the Bank and the employees are
inseparable. ACBL try to create a ‘we’ culture where there is mutual trust and respect

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for each other. The bank encourages ownership behavior so that everyone feels
responsible for the performance and reputation of the Bank. The bank is 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,
the appraisal system is purely performance based.

INSPIRING TECHNOLOGICAL INNOVATION

Technology has played a pivotal role in meeting customer expectations, particularly with
respect to speed and quality of service. The bank has fully automated transaction–
processing systems for back–office support. The branch network is connected on–line
real–time and its customers have access to off–site as well as on–site ATMs, all over
Pakistan. The bank’s phone banking service, Askari Tele Care, and internet banking
facility allows customers to enjoy routine banking service from anywhere, anytime in the
world. The bank also pioneered an e–commerce venture in Pakistan. Its mobile ATMs
are the first in Pakistan. To further strengthen and enhance the technology platform, the
Bank is in the process of replacing the existing technology with comprehensive state-
of-the-art solutions. This initiative will greatly improve bank’s product delivery and
service abilities.

INSPIRING ETHICAL VALUES

Integrity is the most valued standard in whatever one do. ACBL understands that the
commitment to satisfy customer’s needs that must be fulfilled within a professional and
ethical framework. ACBL subscribes to a culture of high ethical standards, based on the
development of right attitudes. The intrinsic values, which are the corner stones of the
corporate behavior, are:
Commitment
Integrity
Fairness
Teamwork
Service

INSPIRING THE INVESTOR’S CONFIDENCE

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

AWARDS AND ACHIEVEMENTS

Askari Bank continues its success in competition. Over the years, ACBL has received
several awards for the quality of its banking service to individuals and corporate.
These include:

Best Commercial Bank

Consumer Choice award 2005
By The Consumers Association of Pakistan
Best Retail Bank in Pakistan
Award 2004 & 2005
By The Asian Banker
Best Corporate Report
1st prize awarded for 2000, 2001, 2003 & 2004
By Institute of Chartered Accountants of Pakistan (ICAP) and institute of Cost &
Management of Accountants of Pakistan (ICMAP)
Corporate Excellence
Awards for 2002 & 2003
The Management Association of Pakistan (MAP)
Best Corporate / Institutional Internet Bank in Pakistan
Award for 2004
By Global Finance magazine
Best Consumer Internet Bank in Pakistan
Award for 2002, 2003 & 2004
By Global Finance magazine
The Best Bank in Pakistan
Award for 2001 & 2002
By Global Finance Magazine
Best Presented Accounts
Ranking prizes awarded from 1997 to 2002

9|Page
By South Asian Federation of Accountants (SAFA)
Best Presented Annual Accounts
Award for 2000, 2001and 2002
By the Institute of Chartered Accountants in Pakistan (ICAP), and the Institute of Cost
and Management Accountants in Pakistan (ICAMP)
Commercial Bank of the Year
Award for 1994 & 96
By Asia money magazine
The Best Consumer Banking Award 2006
Award for 2006
By the consumer Association of Pakistan
The Best Retail Banking Award 2008
Award for 2008
By Pakistan Guarantee Export Corporation Ltd.
The Best Corporate Report Award
For the year 2008
By ICAP & ICMAP
Best Domestic Bank in Pakistan award for 1995by Euro money
Over the years, Askari Bank has proved its strength as a leading banking sector
entity, by achieving the following firsts in Pakistani Banking:
First Bank to offer on-line real-time banking on a country-wide basis.
First Bank with a nation-wide ATM network.
First Bank to offer Internet Banking Services
First Bank to offer e-commerce solution

CREDIT RATING
Askari bank has following credit rating by Pakistan Credit Rating Agency (PACRA)
Long term: AA
Short term: A1+
AA represents very high credit quality. AA ratings denote a very low expectation of
credit risk. Also show very strong position of timely payments
A1+ shows obligations supported by the highest capacity for timely payments.

COMPETITORS

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Banking industry is growing much fast. So Askari bank is facing a lot of competition in
the market. There are following competitors:
ABN Amro
Bank al Falah (Pvt) Ltd
Union Bank Ltd
Soneri Bank Ltd
Prime Commercial bank
The bank of Punjab
Bank Al-Habib Ltd
My bank Ltd
Silk Bank Ltd
NIB Ltd

ORGANIZATIONAL STRUCTURE

Board of Directors
 Lt. Gen. Waseem Ahmed Ashraf Chairman
 Lt. Gen. (R) Zarrar Azim Chairman Executive Committee
 Mr. Shaharyar Ahmad President & Chief Executive
 Brig (R) Muhammad Shiraz Baig Director
 Brig (R) Asmat Ullah Khan Niazi Director
 Mr. Muhammad Najam Ali Director
 Mr. Muhammad Afzal Munif Director
 Mr. Tariq lqbal Khan Director (NIT Nominee)

Company Secretary
 Mr. Saleem Anwar

Audit Committee
 Brig (R) Asmat Ullah Khan Niazi Chairman
 Brig (R) Muhammad Shiraz Baig Member
 Mr. Kashif Mateen Ansari Member

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Auditors
 A.F.Ferguson & Co. Chartered Accountants

Legal Advisors
 Rizvi, Isa, Afridi & Angell

Shariah advisor
 Dr. Muhammad Tahir Mansoori

MANAGEMENT

MAIN OFFICES

Registered \Head Office

AWT Plaza, the MALL
P.O. BOX. NO: 1080
Rawalpindi: 46000
Pakistan.
Tel: 92-51-9063000
Fax: 92-51-9272455
E-mail:Webmaster@Askaribank.com.pk

Registrar\share transfer office

THK Associate (PVT) Limited
Ground Floor. State Life Building 3
Dr.Ziauddin Ahmad Road, Karachi 75530
P.O. box 8533, Karachi.

Wholesale Bank Branch, Bahrain

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 ORGANOGRAM

BOARD OF DIRECTORS

Executive Committee Internal Audit

President and Chief Executive

rp. Banking & Fin. Inst.Operating

Group and credit group Retail Banking Group Credit Cards
Regions

Rawalpindi/Islamabad Planning and Corporate affairs

International Credit Asset Products

North Human Resource

Treasury Electronic Technology Investment products 13 | P a g e
 Systems and Operations
rporate and Merchant Banking Lahore Finance

East
Data Reporting

South I
Legal Affairs

South II

West

HIERARCHY AT THE TOWNSHIP BRANCH

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 BRANCH MANAGER

FOREIGN CREDIT
EXCHANGE\TRADE DEPT
DEPT

OPERATIONS CLEARING

MANAGER CASH
DEPARTMENTNT

CUSTOMER INCHARGE ACCOUNT REMITTANCE

SERVICE GENERAL OPENING S
BANKING

NON-CLERICAL STAFF

FUNCTIONS OF ACBL
There are following functions that Askari Bank performs:

Acceptance of deposits
Advancing of loans

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 Agency services
General utility services
Investment
Overdraft facility
Transfer of money
Creation of credit
Facilitates foreign trade
Executor of the standing orders
Acting as a trust

PRODUCTS &SERVICES OF ACBL

A product ACBL includes all those services which customer normally required for
effectively managing his business. ACBL offers the following financial services to its
customers.

Mahana Bachat Account

Roshan Mustaqbil Deposit
Deposit Multiplier Account
Personal Finance
Islamic banking services
Agricultural finance solution
Corporate & investment banking
Mortgage Finance
Debit/Visa Card
International banking services

ASKARI MAHANA BACHAT ACCOUNT: (1 + 3 YEAR TENURE )

 Multiples of 25,000 should be deposited.

 Earn Mark up of 11.1% p.a on investment of Rs.100, 000 for every month.

 Earn mark up of 12% p.a on investment of every Rs. 100,000/- for every month.

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Askari Mahana Bachat Account is a Term Deposit facility available to individual
customer with the option of 1 and 3 Years tenure. The deposits are

ROSHAN MUSTAQBIL ACCOUNT

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. 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.

DEPOSIT MULTIPLIER ACCOUNT

 Value of initial investment of Rs. 100,000/- will increase to Rs. 265,000/- at

maturity”

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.
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.

Islamic Banking services

Islamic Banking was launched under the brand 'Askari Islamic Banking', by opening 6
dedicated Islamic Banking branches in major cities of the country. Further expansion is
planned with improved capabilities for offering products conforming to the Shariah
principles.
There are following Islamic banking services:

 Islamic Corporate Banking

 Islamic Investment Banking
 Islamic Trade Finance

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  Islamic General Banking
 Islamic Consumer Banking

Agricultural Finance Solutions

 Kissan Ever Green Finance

 Kissan Tractor Finance
 Kissan Transport Finance
 Kissan Aabpashi Finance

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.

Corporate & investment Banking

 Corporate Banking Division
 Term Loans
 Fund transfers/Remittances
 Project Finance

PRODUCTS OF ACBL
There are following features of this account:
DEMAND DEPOSIT IMPORT RELATED FINANCE
 Current Account Payment Against document
 Call Deposit Receipt Finance Against imported Merchandise
Finance against Trust receipt
TIME DEPOSIT
 PLS saving Deposit EXPORT RELATED FINANCE
 Askari special Deposit account Pre-shipment Finance

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  Askari FISDA Account Post shipment
 Askari FAIDA Account Finance Finance Against Packing Credit
 Value Plus Saving Deposit
 Notice Deposit MISCELLANEOUS PRODUCTS
 Askari Advantage Demand draft
 Term Deposit Telegraphic transfer
Pay order
LOCKERS Online banking
 Small Size Lockers Internet banking
 Medium Size Lockers Travelers cheque
 Large size lockers Foreign TT
Askari master credit card
Fund Based Loan Askari debit card
 Running Finance
 Cash Finance
 Term Finance
 Staff Finance
 Askari Personal Finance
 Trade Finance
Non-Fund Based Loan
 Letter of Credit (LC)
 Letter of Guarantee (LG)

GENERAL BANKING DEPARTMENT

Account opening
Remittance Department
Cash Department
Clearing Department

PRIVILEGE BANKING DEPARTMENT

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 Online banking
Lockers

FOREIGN EXCHANGE DEPARTMENT

Import Department
Export Department
Foreign Currency Department

CREDIT DEPARTMENT
ACCOUNTS DEPARTMENT
IT DEPARTMENT

ACCOUNT OPENING DEPARTMENT

FUNCTIONS
 Providing account opening form according to the customer's requirements ,
 Guide the customer about the requirements of the account opening and form
filling
 Check the forms whether they are correctly completed or not
 Preparing checklist
 Stamping on the form
 Maintaining account opening register

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  Pasting of forms in register after release from general banking in charge
 Issuance of cheque books
 Issuance of accounts maintenance certificate
 Closure of account
 Verification of signature in case of cheque presented before releasing of account
opening from SS card is not yet scanned

TYPES OF ACCOUNTS
The customer can open his bank account in order to deposit or withdraw amount.
The bank offers different types of accounts which are as follow:
Current account
Saving account
Askari special deposit account (ASDA)
Basic banking account (BBA)

ACCOUNT OF GENERAL CUSTOMERS

Minor account
Illiterate person account
Individual account
Joint Account

ACCOUNTS OF SPECIAL CUSTOMER

Sole Proprietorship Account

Partnership Account
Limited Company’s Account
Agent’s Account
Joint Stock Company Account
Agency Account
Clubs, Societies /Association Accounts Trusts Local Bodies Etc.
Executor’s & Administrator’s Account
CURRENT ACCOUNT (CD)
The current account is also called “CD” account and the Code used for this account is
“0101”.Current account can be opened by an individual, jointly, and also by the

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company. The initial deposit in order to open this account is Rs.5000.The account
holder does not bear any loss and no profit is given on this account. There are three
options which are given to customer like
Any one:
Any one of the account holder can made transaction
Jointly:

All the account holders need to be there for making transaction

Either or survivor:
If one person died than the other can made transaction

In case of company partnership account, if one partner died than the partnership is
dissolved, than the account was operate as per court order and for this new resolution
was passed by the court.

SAVING ACCOUNT
The saving account is also called “PLS” account. The saving account can also be
opened individually, jointly, and by company but mostly this account was opened by
individual and jointly. This account can be opened with the minimum deposit of Rs.10,
000. Profit was given on this account is semiannually and the profit rate is 5%. The
profit was automatically adjusted by the electronic data division (EDD) on the amount of
deposit. The code which is used for this account is “0110”.

The things which are required in order to open this account are
 Computerized national identity card (CNIC)
 Letter from the company where the person is currently working
 In case of thumb sign also require passport size photographs
 Source of income
 Number of dependents
 National tax number (NTN)
And other general information, effect all these information is required in all the accounts

The state bank of Pakistan gives facility to different people by giving different feature in
current account like introduce BASIC BANKING ACCOUNT “BBA”.

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BASIC BANKING ACCOUNT (BBA)
The basic banking account is also called “BBA” account and the code which is used for
this account is “01021”. This account can be opened individually or jointly. This account
was mostly opened by the
Pensioner
Lower income people
House wife
Students
Salaried person

Maximum two deposits and two withdraw can be made by the account holder in a
month. The bank does not deduct any extra charges even if the amount is less than
Rs.5000, but if the transaction exceeds its limit than the bank charge Rs.25 for every
transaction. This account can be opened with the minimum deposit of Rs.1000. No
profit was given on this account.

ASKARI SPECIAL DEPOSIT ACCOUNT (ASDA)

The askari special deposit account is also called “ASDA”. This account can also be
opened individually, jointly, and by the company. The code which is used account is for
this account is “01165”.The account was offered specially by the bank by its name and
the features’ that it maintains which are:
 The account holder can only share the profit not the loss.
 There is no limit on the transactions
 The profit was given at the rate of 5% on monthly basis.
 It can be opened with minimum deposit of Rs.10, 000 but profit was given on the
amount exceeding Rs.50, 000.

ACCOUNT OPENING REQUIREMENTS

FOR PROPRETORY COMPANY
 copy of CNIC
 original letter head and rubber stamp of proprietor
 NTN no

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FOR PARTNERSHIP COMPANY
 copy of CNIC of all partners
 Resolution on original letter head of company & rubber stamp of partner on which
operation of account clearly mention.
 Partnership deed dully attested by company registrar/notary public
 Registration certificate if required
 Introduction

PUBLIC & PRIVATE COMPANY

 Copy of CNIC of all directors & authorized signatories attested by company
Sectary
 Resolution of board of directors on original letter head of company with rubber
stamp & embossed common seal of company in which operation of account
clearly mentioned.
 Memorandum & Articles Of Association attested by SECP
 FORM 29 attested by SECP
 certificate of incorporation/ commencement of business attested by SECP
 List of directors on company’s letter head
 Company embossed common seal on AOF

ACCOUNT OPENING PROCEDURE

The general procedure of account opening is same but the document required to open
the account is different according to type of account. Information at the time of opening
of account, the bank officer must assure that customer has the following characteristics:

 The customer must have the age of majority, it means he must be the age of
18 according to law.
 The customer must be of sound mind.
 The customer must not be insolvent and bankrupt.
 The customer must not be debarred under any law from entering into any
contract.
 Also the bank officer must take proper information from the customer about
his means, line and place of business.

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Account Opening Form (AOF)
The bank officer must assure that the customer fills each and every column of account
opening form correctly with all necessary details. The specific information about the
business or occupation of the customer is recorded in the form.

Introduction of Accounts

It is a most important column of AOF. Without the proper introduction, the new account
cannot be opened. The bank officer consider following precaution in this respect.

 The introducer should come with the prospective customer to the bank so
there will be no doubt about the identity of customer.

 If the introducer does not come then bank officer must take extreme care
about his signature verification.

 Introducer having doubtful dealing with the bank should be discreetly

declined.
 Current account holders can be introducer of both types of deposits but
saving bank account holder cannot be the introducer of current account
holder. But in exceptional cases they can introduce when saving account
holder maintain substantial balance and they are old and operative accounts.
 The staff member can become introducer if they personally known to the
prospective customer.

NATIONAL IDENTITY CARD

The bank officer check that number of national identity card is correctly recorded in the
AOF and a copy of national identity card is kept in record by the bank.

SPECIMEN SIGNATURE CARD (SS CARD)

The bank officer takes signature of customer on AOF and specimen signature card.
Latterly, this card is scanned in the computer and whenever customer makes any
transaction in this account then his signature is verified by it.

UNDERTAKING FORMS
There is different type of undertaking which are taken by the bank at the time of opening
the account, two of them are:

25 | P a g e
  Sign differ form
 Vernacular form
SIGN DIFFER FORM
This form was filled by the client at the time of opening the account, if the initial which
was made on the computerized identity card is different from the one which is made on
the account opening form. This is actually the declaration which is given by the client
that the client used different signature for operating account from the one that was
made on CNIC.

VERNACULAR FORM
This form was filled by the customer, if the client used the thumb impression in order to
operate account and also in case if the initials was shaky, mean there is slightly
difference every time in signature. This is also the sort of undertaking which was taken
by the bank in order to protect itself. It was clearly mentioned on this that in such cases
if any fraud occurs than banker is not responsible for this.

LETTER OF THANKS
After the opening of account, the bank sends this letter to the account holder address.
There are different purpose of this letter, some of them are
 To create goodwill
 To make sure that all the problems are solved efficiently and effectively
the most basic purpose is to verify the account holder address, the bank send
this letter to the account holder address and if the result was not accurate the
letter was again received by the bank and then again verify the address from the
account holder and again send till that the account holder not receive that letter.
The bank is not issued the cheque book till the address was not verified.

HIGH RISK ACCOUNT

There are some accounts which are declared by the bank as high risk account, mean in
this account there are more chances of fraud etc. These accounts are needed to be
monitored very closely. High risk account includes:

Lawyers account

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 Real estate account
Politicians
Staff of askari bank
Staff of money exchanger
Beaurocates

ISSUANCE OF CHEQUE BOOK

The customer fills the “Form A” for issuance of cheque books along with the AOF. The
requisition slip is duly signed then bank officer enters cheque book series on it. The
officer enters the issuance of cheque book in register. To minimize the misappropriation
bank stamps the account number on each leaf of cheque book. Bank Charges Rs.2 per
leaf. ACBL issue 25 t0 100 leaves cheque books. If cheque book is lost then customer
fill the “From B” for resonance of cheque book. Bank Charge Rs.100 for resonance.

ACCOUNTS NOT IN USE

INOPERATIVE ACCOUNTS
Accounts which are not in use for 1 year are considered as inoperative accounts
DORMANT ACCOUNTS
Accounts which are not in use for 6 months are considered as dormant accounts

INACTIVE ACCOUNT
If there is no transaction in any account within 6 months then account will become
inactive. Now the account will be active only by crediting some amount.

CLOSURE OF ACCOUNT
In order to close the account, the account holder needs to fulfill the form by the name of
“closure of account”. With this form the client also need to give back his cheque book
that he holds due to his account. After collecting the cheque book and verifying all the
things, the bank cancel the cheque numbers and close the customer account on his
request. The bank will charge Rs.100 for closure and remaining balance in the
applicant’s account will be paid to account holder.

REMITTANCE DEPARTMENT

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 The remittance department deals with the transfer of money from one place to another.
This department deals with the local currency transfer only. ACBL provides these
services to both customers & non-customers

Functions
 Managing issuance of demand drafts
 Pay orders
 Travelers cheque
 Mail transfer
 Managing Call deposit receipts CDR
 Intercity clearing
 Outward bills for collection (OBC)
 Credit card advance
 Cancellation of pay order & demand draft

INSTRUMENTS OF THE REMITTANCES DEPARTMENTS

 DEMAND DRAFT
A demand draft is an instrument, which is drawn by one bank upon another bank for a
specific sum of money payable on demand. It is made by the bank and given to the
purchaser against cash or cheque. If two banks are involved, then one bank sends a DD
to another bank. But in customer - Bank case the customer sends his DD to the receiver.
Charges of DD are taken from the system according to the amount.

Customer’s a/c………………………..Dr

DD during day……………………………….Cr

DD during day…………………………Dr

M.O…………………………………………..Cr

 PAY ORDER
Pay order issued from one branch only be payable from the same branch. It is normally
issued for payment in the same city.

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  Fill the application form.
 Issue pay order after recovering cheques.
 Do necessary vouchering.
 Make entry in PO issue register.
 All pay order shall be crossed" payees account only".
AMOUNT CHARGES

Up to 1million Rs.65 (for admission fee Rs.25)

Above 1million Nil
PO ISSUE
Entries in the uni system:
Customer’s a/c………………………Dr
PO during day…………………………Cr
At day end:
PO during day………………………..Dr
B/P……………………………………...Cr
After presentation:
B/P……………………………………..Dr
M.O……………………………………..Cr

 INTERCITY CLEARING
In intercity clearing, clearing between cities are done. For example in Karachi, branch
of Askari bank exists, ASKARI branch Lahore sends the cheque through NIFT to main
branch which will further sends to Askari bank Karachi branch for clearing and at the
same process they send back the advice. If it returns, Rs.65 will be charged.
 OUTWARD BILLS FOR COLLECTION
If in any city, Askari branch doesn’t exist, then we stamp ‘OBC’ and directly send it to
that bank’s branch for clearing.
 CALL DEPOST RECEIPT
CDRs are used for the purpose of tendor notice, zakat deduction, taking part in the
bidding, for getting Govt. tendor in favor of customer ‘name. In this process, payment is
secured and if approved then lodged in clearing.

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For participating in the bidding process, deposit Rs. 5,000 and the following
entries will be passed:
Customer’s A/c…………………………Dr
CDR………………………………………...Cr
On approval of contractor’ request
CDR……………………………………..Dr
M.O………………………………………….Cr
On rejection of CDR
CDR………………………………………Dr
Customer’s A/c…………………………….Cr

TRAVELERS CHEQUES

Askari traveler’s cheques are a valuable financial service of ACBL. They are issued to
settle all your business transaction and customer can travel without any pocket load. It
is safest substitute for cash, easily refundable in case of theft and loss. Askari bank
issues the traveler cheques denomination of Rs. 10,000.

Askari traveler cheques are issued against cash cheque or debit to customer
account. It is issued on purchase agreement form and 3 copies are prepared. One is
sent to head office, the second one for record of bank and third one for the custom. No
service charges are taken on it. Any branch of ACBL can make payment of Askari
traveler cheque. It can be drawn by another bank through collection. It can be encased
form the issuing branch but not on issuing date. If these cheques are enchased within
seven days then customer will receive 0.2% commission.

CASH DEPARTMENT

All physical movement of cash in the bank is made through the cash department.
Normally cash department performs following functions:

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  Receipt
 Payments
 Act according to any standing instructions
 Transfer of funds from one account to another
 Handling of ATM
 Verification of signatures
 Posting
 Handling of prize bonds.

CLEARING DEPARTMENT
Bank collects payment of cheques on behalf of its customer within city.

FUNCTIONS
 Accepting transfer delivery and clearing cheques.
 Arranging receipt of cheques payment.
 Posting of clearing cheques in the system
 Maintaining register for inward and outward clearing cheques
 Prepare the return summary
 Charges for returns
 Amount collections on drawn checks for members and sub-members of local
clearing house

INWARD CLEARING
Cheques and other negotiable instruments (PO, CDR, dividend warrants etc.) drawn on
Askari Bank township branch, lhr, sent by other banks, constitute the inward clearing of
ACBL.

Other points to remember in inward clearing:

 We are paying amount of cheque

 Customer’s Account will be debited
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  In case of return charges will be Rs. 250

After having all the stamps and dates of Cheques confirmed, the following entries will be
passed in the system:

Customer account………….Dr

Suspense clearing a/c …………………..Cr

At day end when returns are received:
Suspense clearing a/c……….. ………..Dr
M.O…………………………………………. Cr

OUTWARD CLEARING
When Cheques are drawn upon other banks of the same city (as Lahore) are presented
in Askari Bank to deposit them in the respective payee’s accounts, these instruments
are lodged in outward clearing of Askari Bank.

Other points to remember in outward clearing:

 We receive payment of cheque

 Customer’ account will be credited
 In case of return charges will be Rs. 50. Return memo will be attached with
cheque.

The following entries will be passed in the system for outward clearing:
Suspense clearing A/c……………… Dr
Customer A/c…………………………….. Cr
At day end:
M.O A/c…………………………. Dr
Suspense clearing A/c…………………… Cr

PREVILDGE BANKING DEPARTMENT

ONLINE BANKING

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Online banking means that if a person is sitting in one city like Lahore can easily
transfer/deposit and withdraw his fund from any other branch of Askari Bank in any city
or location. For this purpose the person needs to complete the online funds transfer slip,
which includes the information of that person and the account to which the transaction is
made.
If the funds are transfer with in a city no extra charges are made but in case of out of
city some charges are applied like

Case Charges (Rs.)

Cash deposit 320
Cash withdraw 120
Funds transfer 185
LOCKERS
Askari bank offers locker facility to its customers. The application form was filled by the
customer as well as specimen signature card (S.S) need to be filled. While fulfilling the
form, there are three options regarding the operating of locker, these are
 Anyone can operate
 Jointly
 Either or survivor

In order to get a locker the bank gives two options

On Rent
Purchase
Rent
If the person wants to get an account on rent the security fees which need to be
deposited is Rs.1175 which is refundable. The monthly charges for different lockers are
mentioned below

Size charges (Rs.)

Small 1300
Medium 1800
Large 3200
On rent the entry which is passed by the bank is:

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 Customer’s A/c for rent…………………………Dr.
Customer account key deposit…………………Dr.
Key deposit………………………………………Cr.
Rent………………………………………………Cr.
PURCHASE
If the person want to purchase the locker than the annual charges for different lockers
are mentioned below
Size charges (Rs.)
Small 25,000
Medium 30,000
Large 45,000

On purchase the entry passed by the bank is:

Customer’s A/c……………………………..........Dr.
Key deposit…………………………………..Cr.

FOREIGN EXCHANGE/FOREIGN TRADE DEPARTMENT

Foreign Exchange Department works like the general bank departments with the difference
that it deals in foreign currency.
FUNCTIONS
Foreign remittances.
Foreign currency accounts
Non-resident accounts maintenance
Foreign bills for collection(FBC)
Foreign telegraphic transfer(FDD)

FOREIGN CURRENCY ACCOUNT

A depositor can open account in US dollar, pond, Japanese Yen and Euro with
nominated branches. For opening of account a form is provided to the person/party,
introduction of the new account holder or by the officer of the bank. Procedure of
opening foreign currency accounts is same as other accounts. No zakat is deducted on
these accounts, no income tax deductions; no wealth tax deduction will be there.

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FOREIGN REMITTANCE
The procedure of foreign remittance is same as in local remittance. The only difference
is that it deals in foreign currency.
Most of the times, following modes are used in foreign remittance.
Foreign Demand Draft (FDD)
Foreign Telegraph Transfer (FTT)

FOREIGN DEMAND DRAFT

When bank receive foreign demand draft then bank will debit to unsupervised account
of the customer and credit to treasury bank because all the foreign currency accounts
are maintained in treasury, the bank will send debit advice to treasury. In return,
treasury will send the credit advice and branch officer will debit the treasury and credit
to customer account.

FOREIGN TELEGRAPH TRANSFER

When a customer wants to transfer funds to foreign country through telegraph transfer
then he will deposit the amount.
LETTER OF CREDIT (L/C)
Letter of credit is a commitment by the buyer bank to make the payment to the exporter
bank that it assumes the responsibility of payment if the goods are according to terms &
conditions.
PARTIES INVOLVED
Importer/buyer/opener
Exporter/seller/beneficiary
Importer bank/ issuing banks
Exporter bank/advising bank/negotiating bank

TYPES OF L/C
 IRREVOCABLE L/C
Under this L/C, amendments or cancellation of lc can be done with the mutual consent
of all the parties involved.
 CONFIRMED L/C
A letter which is confirmed by the exporter bank, where it takes the liability of making
the payment without consulting the importer bank.
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 SIGHT L/C
In this type of L/C, on spot payment is made as the importer bank receives the bill of
lading from the exporter.
 USANCE L/C
In this L/C, time period is involved. The importer bank will make payment at defined
days after the shipment. The shipment period may be 60, 90 or 120 days.

PROCEDURE FOR OPENING OF L/C

Customer request for opening L/C

Request letter + insurance + Performa invoice+IB8+certificate of import of goods

Bank-risk analysis & credit history of importer

Approval by the bank/area/region/H.O (Within their limits)

RCAD + CFTU

RCAD (Regional credit administration department)

It feeds the limit.

CFTU (centralized foreign trade unit)

It controls the transmission of L/C. Calculate margin, commission and mark up on L/C.

L/C LODGEMENT
L/C is registered in the PAD.
Customer’s liability………………………Dr.
To bank’s liability…………………………….Cr.

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PERFORMA INVOICE
It is the document which is sent by the exporter to the importer about the description of
the goods like quality, quantity and price of goods.

INDENT FORM
The agent (for e.g., USA parent company and its agent in PAKISTAN) authorizes on
behalf of its parent company that the goods have been received.
IB8
It’s the application of irrevocable l/c. it’s the legal document which contains terms &
conditions of the opening of L/C. It contains the details of country of origin. Amount,
date of initiation, date of expiry and the name of the insurance company. Bath parties
signed on it.

COUTRY OF ORIGIN
It contains the information about who has manufactured the goods, country of
manufacture. It tells about in which country goods are ready for sale.

I-FORM/IMPORT FORM
It’s the statistical form which will be submitted to SBP by the bank about the imported
goods.

CREDIT REPORT
The report required by the importer from the exporter for 1.5m or above transaction.

SWIFT (society for worldwide interbank financial telecommunication)

Its software that generates messages which is send to the exporter. It’s a network that
exchanges messages in a more secure way and not hold accounts for its customers nor
facilitate fund transfer but sends payment orders between banks and other financial
institution.

HS CODE (Harmonized system code)

Different codes for every requirement of L/C which is worldwide used and accepted.

37 | P a g e
CREDIT LIMIT
The limit which is set by the
bank’s policy
Restriction by the SBP on foreign currency.

TRANSPORTATION DOCUMENT
There are four types of documents.
Bill of lading
Airway bill
Truck receipt
Rail receipt

FORMAT OF L/C
Instruction
Mode of transmission
Name & address of applicant and beneficiary
Total amount with destination
Advising bank
Partial shipment allowed/ not allowed
Transshipment allowed/ not allowed
 Latest shipment date and expiry date
Place of shipment
Destination
Tenor
Description of goods (ref. Performa invoice/ indent form)
Documents required
Commercial invoice
Certifying country of origin
 Mode of transmission by sea/air
Marine insurance company
 Cover note, date of expiry
Packing list required
Any additional condition

38 | P a g e
 HS code
 Time allowed for preparation of documents
Instructions regarding bank charges by opener/beneficiary
Signature of customer
% margin
Approval of manager
Account no. of customer/ phone no.
Signature of witnesses
Reimbursing bank/ negotiating bank/advising bank
Details of charges
Signature at the start and at the end

ENTERIES IN LODGEMENT
After the completion of L/C, The following entries will be passed.
Bank’s liability……………………………..Dr.
To customer liability………………………..Cr.

CREDIT DEPARTMENT
Credit department performs two basic functions:
Credit Administration
Credit Appraisal

CREDIT ADMINISTRATION
The credit department takes the decision about credit sanction after the risk analysis
and collects the extended loans at the maturity of loan.

CREDIT APPRAISAL
The credit department reviews their credit policies and all credit proposals. Also credit
officer report all the data of his activities to credit division Karachi. Credit division
reviews their policies after every six month in the light of this data and also sends the
data to State Bank of Pakistan (SBP) to review its policies.

Askari Commercial Bank provides two types of loan that are:

39 | P a g e
 Funded Facility
Non Funded Facility
A. FUNDED FACILITY
In this type of finance, bank actually deploys its funds and mark up is charged on it.
ACBL provide the following types of fund-based loan.
Running finance
Cash finance
Term finance
Staff finance
Trade finance
Finance against packing credit
Post Shipment Finances
I. RUNNING FINANCE
It is used to meet the running requirement of the capital. It’s the short term finance
normally used for a period 1 year in which payment is made at the end of the period. In
running finance, Bank transfers a particular amount of loan in customer’s account from
where he withdraws the amount as needed. Markup is charged only on the amount
withdrawn not on the whole amount of loan.R.F is used for the purpose of A/R,
purchase of raw material, Salaries payable, utility bills payable, Administration
expenses, Maintenance, Packaging etc.

II. CASH FINANCE

Cash finance is like a running finance but it is extended against the pledged security like
inventory or stock and 25% cash margin is also charged. The pledged stock is also
insured from any insurance company and the customer also pays all the insurance and
any other security expenses. Mark up is charged over the full loan amount and for
whole time period of maturity.

III. TERM FINANCE

The finance in which Mark up is charged on the overall amount of loan whether utilized
or not. It’s a long term finance normally used for a period of 3-5yrs.Personal guarantee
is required in it. Loan will be issued to the person having 25,000 or above salary.
Installment basis pay back.

40 | P a g e
  CATEGORIES OF TERM FINANCE

 Financing
 Leasing

FINANCING
 Title/ownership with the customer
 Bank will pay the amount to customer and customer will purchase the
machinery
LEASING
 Ownership/ title with the bank.
 Bank will purchase the car
 20% markup charged on the principle amount.
 Bank-customer account no. required.
 Tax benefit to customer

IV. STAFF FINANCE

This facility is provided for the staff of ACBL. The purpose is welfare of the employees.
SBP specify the credit limit for the staff of bank. The mark up rate is less than
commercial rate. Trade finance is provided for short time period so it is most suitable for
bank. These generate more income for the bank due to greater revolution of money.

V. TRADE FINANCE
Trade finance is of money. Trade finances are of two types:
Import related finance
Export related finance

 IMPORT RELATED FINANCE

There are three types of import related finance

Payment against document

Finance against imported merchandize
Finance against trust receipt

41 | P a g e
  PAYMENT AGAINST DOCUMENT (PAD)
When the bank receives bill of lading and other commercial document from the exporter
then bank will pay to reimbursing bank of exporter. If the customer will not receive the
document within 7 days then bank issue a letter to the importer and now letter of credit
(LC) is converted into absolute liability. The bank gives the credit period to the importer
to make the payment which is 90 or 120 days. And now bank will charge the mark up
and import service charges from the importer. The reimbursing bank will send all the
documents to ACBL and not directly to the importer .

 FINANCE AGAINST IMPORTED MERCHANDIZE (FIM)

When the importer has no funds to import merchandize then he request the bank letter
of credit along with the finance. In PDA the bank is only responsible to make payment
but in FIM bank makes payment from its own funds these types of finances have
specified rate of mark up and time period. All the value-added expenses like excise
duty, port charges etc are charged by the customer as cash security margin.

 Finance Against Packing Credit

Finance against packing credit is extended for the preparation of goods when the
exporter has confirmed letter of credit from the importer. To improve the economy of
Pakistan and to improve the export, SBP introduce special export finance schemes to
the exporter at cheaper mark up rate and also offer export rebates. It is of two types:

 Pre Shipment Finance Part I

Pre shipment finance part I is extended for one year. Funds of SBP are involved in this
finance. When this finance is extended then bank will debit the SBP account and credit
to customer account. Rate of mark up is 2% from which 1 are for SBP and the bank
charges 1%.

 Pre Shipment Finance Part 2

This facility is for existing exporter. In this way exporter can avail half of the limit of total
export business transacted last year. If the credit history of exporter is satisfactory then
this credit limit can be increased.

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  Post Shipment Finances
This loan facility is provided to exporter after the shipment. Post shipment finance is for
different purposes like when the exporter does not have finance to the payment of credit
raw material.

B. NON-FUNDED FACILITY
In this finance, no cash is involved. It is only a commitment. It is an obligation of bank
and if the customer declares default then bank is liable to make payment. The bank
charges commission in these finances in respect of markup. This facility is provided
against the cash margin and mortgage of property because bank has risk in this type of
finances.

Letter Of Guarantee (LG)

Letter Of Credit (LC)

 LETTER OF GUARANTEE (LG)

Letter of guarantee is contingency liabilities of bank because the funds are not
actually involved in it. So they are classified as off balance sheet items. Letter of
guaranty is mostly given in case of contract. 25% cash margin is charged and also
some collateral is taken.
Three beneficiaries of this non-fund based finance are:
 Government
 Financial Institutions
 Others
 Bid Bound
When the contractor has no funds for the bid of contract then he requests the bank to
issue the guarantee letter. This type of guarantee is called bid bounds guarantee and now
contractor will quote the rate in tender against this guarantee.

 Advance Payment Guarantee

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If the bid is accepted and beneficiary want to make the advance payment to the
contractor because the contractor is away the contract and beneficiary requires
guarantee of bank from the contractor. If bank gives the guarantee of contractor for
advance payment then it is called advance payment guarantee. The contractor is
adjusted this liability by the running bill.

 Performance Bound
When the bid is accepted then bank will give guarantee that contractor will perform
the task assigned within the specific period of time.

 Maintenance Bound Guarantee

This guarantee is issued for the maintenance of work performed by the contractor, so it is
called maintenance bound guarantee.

 Shipping Guarantee
This type of guarantee is very rare and issued against 100% cash margin. When the
shipment is at port but has not any document then bank issue guarantee in favor of
Shipment Company only for 2 days.

 Other Guarantee
If the bank issue any guarantee other than above likes to cove the credit sale, then it is
classified as other guarantee.

ACCOUNTS DEPARTMENT
ACCOUNTS OFFICER: MR. BARAK ULLAH
FUNCTIONS

Daily activity checking

Physical checking of cheques and deposit slips

Reconciliation of cheques with ledger

Preparation of statement of affairs

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 Weekly schedule program

Budget

IT DEPARTMENT

INCHARGE OFFICER: MR. BURHAN AHMED

FUNCTIONS
Managing day to day cash transaction in computer
Maintaining customers’ accounts in computer
Receiving all mails from Head Office
Fax
Keeping ATM in working condition
Printing daily reports
Receiving IBCA

DETAIL DESCRIPTION OF THE SKILLS ACQUIRED DURING INTERNSHIP

In Askari Bank, working as an internee, I learn much which make me confident to work
in any other place as a professional.

I started with the accounts department. Mr. Barak Ullah was the in charge officer. He
guided me about the functions performed in accounts.

DEPARTMENT NAME: ACCOUNTS

I learnt about how to differentiate among cheques. He assigned me the duty of sorting
out of all types of cheques in descending order. I made separate head of current
deposits (CDR), saving account (PLS), Askari Special account (ASDA), basic banking
account (BBA), Value Plus and Foreign Currency (FCY) according to their account
codes and then arranged them in descending order. He gave me an M.O (Main Office)
sheet that includes all entries related to head office or inter branch transfer (IBT). All

45 | P a g e
amounts in a specific ledger of specific account should be known to accounts in charge.
Some amounts in transfer section relates to IBT so they are checked in M.O sheet.

Account codes are as follows:

Current A/c 01010

Saving A/c 01100

BBA A/c 01021

ASDA 01165

Value Plus 01032

FCY 0213

Example ACCOUNT NUMBER: 0056-01-165-0001-3

0056 = Branch Code

01 = Currency Code
165 = Asda Account
0001 = Account Number of the Asda Account Holder

There are three modes of posting in ledger balance

MODES OF POSTING

 Cash
 Clearing
 Transfer

Cash includes ATM entries and cheques in cash payments. Clearing includes cheques
that branch received from NIFT. Transfer includes transfer of amount from one branch
to another or inters branch transfer.

ACCCOUNT OPENING DEPARTMENT

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In the Account Opening Department, MR. ZAFEER KAZMI was the in charge. Firstly, I
have gone through different types of the accounts and the operation of different
accounts. I have opened accounts of so many people myself. There are different
requirements for different account. I perform following activities:

 Providing account opening form according to the customer’s requirements (single,

joint, partnership etc)
 Guide the customer about the requirements of the account opening and form filling,
 Check the forms whether they are correctly completed or not,
 Preparing checklist and Stamping on the form,
 Maintaining account opening register,
 To get the Verification of signature in case of cheque presented before releasing of
account opening from SS card is not yet scanned.

REMITTANCE SECTION

This section deals with the transfer of money from one branch to another. Nearly six to
ten draft issued daily from this department. Here I knew how the amount transfers and
what the procedure is.
I helped the supervisor in following activities:

 Collection of remittances forms

 Guiding the customers
 Filling the forms.
 I was not allowed to do the signatures for final clearance of the instruments.
 I was also shown the online transfer of credit from one account to another
account

REMITTANCE FORM CONTAINS THE FOLLOWING INFORMATION

 Date
 Amount of PO/DD both in words and figures
 Name of beneficiary
 Name of city where this PO/DD will be issued and payable
 Signature and address of applicant

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In the remittance section I learn how to issue Demand draft and Pay orders.

DEMAND DRAFT

DD is a written order given by the branch of the bank on behalf of the customer to other
branch of the same bank to pay the certain amount to the customer. It is issued outside
the local city.

PROCEDURE OF ISSUANCE OF DD

A printed application form is provided for filling in completely and signing by the
applicant. After depositing an amount of draft and commission of the bank, duly
completed and signed by two authorized officers, then it is handed over the applicant
and credit order is dispatched to drawee branch.

CANCELLATION OF DD

 The customer gives the written application for cancellation along with original
demand draft. The bank as cancellation charges Rs. 100.

 Cheque the DD in by drawee branch either unpaid or duplicate has been issued.

 The bank officer verifies the signature of applicant. Cancellation of DD is

recorded in DD issue register.

 only principle amount will be refunded

 If DD is through cash then cash debit voucher is prepared.

PAY ORDER

For this kind of remittance the payer must have the account in the issuing bank. Pay
order are more liquid as compared to cheques because cheques may be dishonored
while PO can’t be dishonored. It is issued within the city.

PROCEDURE FOR ISSUANCE

The party who requires a pay order will get a printed application from the bank. He will
fill it and deposits the amount and commission

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 CLEARING SECTION

In Askari bank Mr. Burhan Niaz was in charge of that section. I learn following activities
while working in that section. When cheque or other instrument is drawn on Askari Bank
which is of the other bank, it comes in the clearing department. Points to remember
while checking a cheque for clearing:
 Date
 Amount in words & Figure
 Clearing stamp with today’s date
 Payee’s account credited stamp
 Within city cheque

REASONS FOR REJECTING A CHEQUE

The following can be the reasons for returning a cheque:

1) Effects not yet clear: please present again.

2) Not arrange for.
3) Payee’s endorsement required.
4) Payee’s endorsement irregular.
5) Refer to drawer.
6) Drawer’s signature differs.
7) Payee’s endorsement requires bank’s guarantee.
8) Alternation requires full signature
9) Cheque is post-dated/stale/ mutilate.(wear and tear)
10)Amount in words and figure differs.
11) Cross cheque must be presented through a bank.
12)Payment stops by the drawer.
13) Payees separate discharge to the bank required.
14) Payees discharge on revenue stamps requires.
15) Not drawn on us.
16) Account close.
17)Insufficient balance
CLEARING STAMPS
 Clearing stamp
It has two parts one is crossing part and other is clearing part

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Crossing part shows that cheque is the ownership of bank. Clearing part shows that
everything is clear and bank has collected payment on behalf of customer
 Payee’s A/c Credited
This stamp will be stamped on individuals and companies accounts only but if cheque is
in the favor of some bank like Askari bank then stamp will be of “cash received”.

I entered the amount, account no. and Drawer’s bank in Outward return register and to
get the signatures of the customer at the time he collects his cheque from the bank.

CUSTOMER DEALING SECTION

In customer dealing section, my duty was to help in issuing cheque book, ATM cards,
lockers, bank statements and TDR to the customer.

CHEQUE BOOK PROCEDURE

The cheque book was issued after the opening of account on the request of customer.
The request for cheque book goes to Karachi office after that they issue that book by
the name and account number of the account holder. This process almost takes 3 to 4
working days. The request for the cheque book was uploaded online by the bank on
NATIONAL INSTITUTIONAL FACILITATION TECHNOLOGIES (NIFT). Procedure of
issuing check book is as follows:

 Form A required
 Requisition slip required
 Form B required
Form A

This form is used when first time new check book is issued

REQUISITION SLIP
This slip is required for issuing check book, for those who already used the cheque
book now it is lost or finished.

FORM B

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In the case when old cheque book or requisition slip is lost then form B is used to issue
new cheque book. It is treated as security stationary.

ATM CARD PROCEDURE

After the opening of the bank account, if the person requires the ATM/Debit card then
again he needs to fulfill the application for ATM card. After the completion of that form
that application was send by bank to Islamabad for approval and for the issuance of
debit card. This procedure almost takes from 10 to 15 working days. The amount limit
which a person can withdraw each day through debit card is not more than Rs.25000.
The annual charges the bank deducts for CLASSIC card is Rs.500 and for GOLD card
is Rs.750.

BANK STATEMENT
If a person needs to get the bank statement of his account again for this purpose he
needs to complete the request form. The application for statement should be submitted
at least 1 day before, in some cases the bank also accommodate their client on urgent
basis and print their statement at the same time. The bank statement contains all the
details of the account holder which shows the amount and all the details when and
where transaction is made.

If the third party want to receive a bank statement on account of a person who actually
hold the account than the third party need to come along with the authority letter issued
by the account holder, in which the account holder mention the name of third party with
his CNIC number, in order to receive the bank statement.
ASKARI MAHANA BACHAT ACCOUNT (AMBA)
It is also called ASKARI MAHANA BACHAT ACCOUNT (AMBA). In this the account
holder can deposit their amount for the fixed period of time. In AMBA,

the profit is given on monthly basis on the basis of amount deposited. For AMBA you
must need to have an account with the Askari bank.

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In AMBA the bank give two options to the account holder

 Deposit their amount for 1 year

 Deposit their amount for 3 years

The amount through which this account can be opened is

 Minimum Rs.50,000
 Maximum Rs.10,000,000

In this one term is used which is called Rollover, it means if the person tick the option of
rollover while opening the AMBA than after the completion of one year the same
process will carry on instead of closing that account.
Two computerized generated receipt is printed, the very next day after opening the
AMBA, one is given to account holder and the second one is maintained by the bank.
This receipt is demanded by the bank at the time of closing the AMBA.

TDR
In TDRs, the profit rate is negotiated that is decided between the manager of the branch
and the valued customer. It is given for 1 month, 3 month, and 6 month and so on, the
rate was decided on basis of number of days.

LOCKERS
First of all the application form is filled by the customer as well as specimen signature
card (S.S). While fulfilling the form, there are three options regarding the operating of
locker, these are

 Anyone can operate

 Jointly
 Either or survivor

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Any one
In this option if there are more than one person who hold the locker, than any one of
them can operate the locker, not all the members are need to be there for the operating
of locker.

Jointly
In this option if there is more than one person who holds the locker, than all the
members need to come to operate the locker, no individual person can operate the
locker.

Either or survivor
In this option if there is more than one person who holds the locker, and any one of
them died than the others have the authority to operate the locker.

SWOT ANALYSIS

An analysis indicating towards the organizations strengths, weaknesses, opportunities

and threat is termed as SWOT Analysis. Such an analysis is very important for the
management in retaining the strength, overcoming the weaknesses, capitalizing over
the emerging market opportunities, and carving ways to successfully tackle with the
threats and ultimately converting them in the strengths for the organization.

During six weeks of my stay at Askari Commercial Bank, I have come across the
following SWOT analysis of the bank.

STRENGTHS
ACBL was organized by Army Welfare Trust (AWT) so it has strong army
background.
Askari Bank has opened all its branches at commercial areas so that the
customers or clients face no problems in reaching to the bank.
Askari bank has got a reliable and easy to use internal computer system. Every
information regarding the transactions in customers’ deposits has been
computerized.

53 | P a g e
 The annual financial statement are prepared by the bank in accordance with the
international accounting standard and are also published quarterly and half
yearly accounts to provide information to their stakeholders for taking well
informed decisions.
All the branches of Askari Bank are online and automated.
Askari commercial bank is the leading private sector bank in the banking network
in Pakistan with many of them online branches in major cities of the country.
Askari bank has the wide range of ATM Network across the country. The
customers can withdraw their funds any time at all the ATM Sites.
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 and electronic funds transfers
among the others.
Askari Bank provide the good Phone banking service that is very attractive for
those customers who don’t have time to personally come to the bank i.e. They
can easily get the information. Thus, saving the precious time of the customers.
The organizations showing concern for the people, ethics, and environment enjoy
good public reputation and are able to reap the benefits in the long run. ACBL
management is quite sensitive to this issue.

WEAKNESSES
In my opinions these are the points that might be detrimental to the efficiency and
profitability of the bank.
Bank’s marketing department is not very strong. Advertising done by the bank is
less than the requirement.
The employees are constantly rotated from one job to another job. The employee
has know-how of the working in all the departments but not master in on work.
But I think this is not a very good tactics used by the management.
Almost all the decision-making is in the hands of the upper management. Only
few decisions are taken at the lower level. Centralization is effective only certain
levels but it is also times costly.
The bank has still some of the traditional ways of operations in this advanced
technological environment.

54 | P a g e
 Askari Bank has use computerized accounting system but, still the bankers use
to make their entries in the accounting register also.
There is no specific training program arranged for the new recruiters. They have
to learn based on their observations and also their mistakes.

OPPORTUNITIES
The bank is facing the following threats and opportunities currently. These are positive
external environmental factors effecting the organization.
Askari bank growing business requires an extensive branch network. There are
great opportunities for ACBL for the expansion of its business.
Askari Bank can extend its network in other countries.
It can enhance its profitability by making use of new technology.
Foreign investors in the banking industry are welcomed in Pakistan as they bring
not only the precious foreign exchange investment but also skills and techniques
of modern banking system, innovative products and services.
Askari Bank has an Islamic Banking system also. But it is not fully Islamic
banking. It has only few branches’ of Askari.
Askari Bank has Branches in Remote Areas.
Foreign Trade is the focus of bank. It has become an ideal bank for the importers
and exporters.

THREATS
Askari Commercial Bank is facing a strong competition by its major competitors;
Union Bank; Faysal Bank; Meezan Bank; My Bank and Bank Alfalah. Business of
these banks is also growing with very high pace.

So Askari Commercial Bank has been performing very well in the presence of
unstable political and economic situation but this uncertainty is a continuous
threat for the bank.

As the banking procedures are complicated that is why general public takes
interest into other options of investments like in shares of companies and in Term
Finance Certificates

55 | P a g e
 In the Bank there are the employees who are not satisfy with their job and there
is high rate of turnover. So the process of recruitment is time consuming and
costly.
The charges of the services that the bank receives from the customers are higher
than their competitors. So it loses many customers for this reason.
Frauds are also a great threat, like recently a great fraud happened with The
Bank of Punjab

FINANCIAL RATIOS
profitability ratios
Market ratios
liquidity ratios
portfolio management
capital gearing ratios

PROFITABILTY RATIOS
EARNING PER SHARE
EPS shows what shareholders earned by way of profit for a period.EPS is closely watched by the
investing public and is considered an important indicator of corporate success.

Profit after taxation

E.P.S 
Weighted average no. of share

Profit after Weighted average Earnings per share

Years taxation number of share
2009 1107793000 507346635 2.18
2008 386225000 507346635 0.76

56 | P a g e
 E.P.S RATIOS
2.5

2
1.5 RATIOS

1
0.5

0
2008 2009

Interpretation
The earnings per share for the year ended December 31, 2009 was Rs.2.18, against
the previous year’s Rs.0.76, The improvements primarily due to reduction in provision /
write-off against NPLs during the year 2009.

Return on Equity
Return on equity revels how much profit a company earned in comparison to the
shareholder equity found in balance sheet. Return on equity of Askari Bank is showing a
changing situation on all given years

Net profit
return on equity  × 100
Share holder’s equity

Return On Equity in
Years Net Profit Shareholder's Equity %
2009 1107793 13142688 8.429
2008 386225 12034895 3.209

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 ROE RATIOS
9
8
7
6
5 RATIOS
4
3
2
1
0
2008 2009

Interpretation
In year 2008 it goes to 3.209% and in 2009 it increases to 8.429% but not too much so
the net profit decreases but the shareholders equity is also decreased. This year bank
has to face additional costs as well as less income due to economic slowdown which is
a bad sign for the bank

Return on Investment
Net profit
return on investment  ×100
Total assets

ROI
Years Net Profit Total Assets
2009 1107793 254327446 0.436
2008 386225 206191138 0.187

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 ROI Ratios
0.5
0.45
0.4
0.35
0.3 Ratios
0.25
0.2
0.15
0.1
0.05
0
2008 2009

Interpretation
In 2008, It is decreased it means that the company decline and its financial position is
week in 2008.But this ratio is same here as return on equity because long term debt is
zero.

Net profit Margin

It measure the percentage of profit earned after all taxes. The higher the firm’s profit,
the better will be the margin.

Net profit earned

net prfit margin  × 100
Interest earned

Interest Net Profit Margin

Years Net Profit Earned (%)
2009 1107793 22661754 4.889
2008 386225 18393313 2.099

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 NET PROFIT MARGIN
6

4
Ratios
3

0
2008 2009

Interpretation
In 2008, the percentage is 2.099% which is low. It is increased in 2009 to 4.89% which
is a positive.

Operating Income Margin

Operating income
operating income margin ×100
Interest earned

Operating
Income
Margin
(%)
Years Operating Income Interest Earned
2009 2554701 22661754 11.27
2008 2707000 18393313 14.717

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 operating income margin ratios
16
14
12
10
ratios
8
6
4
2
0
2008 2009

Interpretation
It indicates that Operating income is decreasing from 2008 to 2009.

MARKET RATIOS
Market price is the price at which people are willing to buy or sell the shares. It provides
information about how investors view the potential return and risk connected with
owning the company’s shares.

PRICE EARNINGS RATIO

Market price
PRICE EARNING RATIO 
EPS

P/E Ratio
Years Market price EPS
2009 27.30 2.18 12.52
2008 14.57 0.76 19.17

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 P/E RATIOS
25

20

15 RATIOS

10

0
2008 2009

INTERPRETATION
The P/E ratio is commonly used to assess the owner’s appraisal of share value.
Investors had greater confidence in the bank’s future performance in 2008 as reflected
in the P/E ratio of 19.17, but in 2009 it reduced to 12.52.This figure indicates that
investors were paying Rs. 12.52 for each Rs.1.00 of earnings. The higher the P/E ratio,
the greater investor confidence.

DIVIDEND PER SHARE

DPS shows how much the shareholders were actually paid by way of dividends.

Dividend

D.P.S 
Weighted average no. of shares

Dividend
Years Dividend No of Shares per Share
2009 825000 507346635 0.016
2008 444404000 507346635 0.876

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 D.P.S Ratios
1
0.9
0.8
0.7
0.6
Ratios
0.5
0.4
0.3
0.2
0.1
0
2008 2009

Interpretation

The Dividend per Share figure is used by investors and analysts as an indicator of a
company's financial health and profitability. The DPS in 2009 is Rs. 0.016 that reflects
shareholder have or will receive Rs. 0.016 for each share they own. DPS rose to
Rs.0.875 in 2008.

DIVIDEND PAYOUT RATIO

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

DPS
DIVIDEND PAYOUT RATIO 
EPS

Dividend
Payout
Years DPS EPS Ratio
2009 0.016 2.18 0.0073
2008 0.876 0.76 1.153

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 D.P RATIOS
1.4
1.2
1
0.8 RATIOS
0.6
0.4
0.2
0
2008 2009

Interpretation
Investors seeking high current income and limited capital growth prefer companies with
high Dividend payout ratio. However investors seeking capital growth may prefer lower
payout ratio because capital gains are taxed at a lower rate. High growth firms in early
life generally have low or zero payout ratios. As they mature, they tend to return more of
the earnings back to investors
Dividend payout decrease in 2009 from 1.513 to 0.0073 Companies that pay higher
dividends may be in mature industries where there is little room for growth and paying
higher dividends is the best use of profits.

Dividend Yield Ratio

This measurement tells you what percentage return a company pays out to
shareholders in the form of dividends. Older, well-established companies tend to payout
a higher percentage than do younger companies and their dividend history can be more
consistent.
DPS
DIVIDEND YIELD RATIO 
SHARE PRICE

Dividend Yield

Years DPS Share Price Ratio

2009 0.016 27.30 0.00059
2008 0.876 14.57 0.060

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 D.Y RATIOS
0.07
0.06
0.05
0.04 RATIOS

0.03
0.02
0.01
0
2008 2009

Interpretation
Dividend yield decrease in 2009 from 0.060 to 0.00059.The AKBL dividend yield has
overall declining trend. When the dividend yield decreases it is unfavorable

LIQUIDITY RATIO
CURRENT RATIO
The current ratio is a measure whether or not a firm has enough resources to pay its
debts over the next 12 months. Acceptable Current ratios vary from industry to industry.

Current assets
CURRENT RATIO 
Current liabilities

YEAR CURRENT CURRENT CURRENT RATIO

ASSETS LIABILITES
2009 32409546 32409546 0.142

2008 24464203 228158736 0.132

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 CURRENT RATIOS
0.14
0.14
0.14
0.14
RATIOS
0.14
0.13
0.13
0.13
0.13
0.13
2008 2009

Interpretation

For banks in Pakistan 2:1 is ideal one. Askari Bank is facing difficulty in maintaining its
ratio. In 2008 bank has to attract more deposits, so current liabilities increased much
proportion to current assets. However bank has enough strength to pay off its short run
liabilities.

Advance to Deposits

It is the most important ratio for a bank as all the bank profits are major based on loans
and deposits. Because on the deposits they have to pay and on loans they earn and the
difference is the profit of the bank. The higher the ratio, the more is relying on borrowed
which are generally more costly than most of deposits.
Advance
loan to deposit(%)  ×100
Deposit

Year Advance Deposits Advance to deposits

Ratio in %
2009 135034499 205970227 65.56
2008 128818242 167676572 76.82

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 ADVANCE TO DEPOSIT RATIOS
78
76
74
72
RATIOS
70
68
66
64
62
60
2008 2009

INTERPRETATION

The ratio of askari bank is increased in 2008. But in 2009 the ratio suddenly decreases
which is a bad sign for a bank, it ultimately decrease in the bank income.

Admin Expenses to Total Deposits

Admin expenses
Admin Expenses to to deposit  × 100
Total Deposit

Expense on Admin Expense to Total

Years deposit Total deposits Deposits
2009 6995857 205970227 3.396
2008 5904169 167676572 3.521

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 ADMIN EXP TO TOTAL DEPOSIT
3.55

3.5

3.45 Ratios

3.4

3.35

3.3
2008 2009

Interpretation
For banks, this ratio must be less than 3%. Depression in financial system forced
banking system to attract more deposit at higher costs. Bank has to increase Minimum
wage rate to meet government regulations, depreciation and amortization costs also
increased. So overall position lead the management to increase these costs.

Non Interest Income to Total Assets

This ratio shows how much you are earning on the total assets through non-mark up
income.

Non interest income

Non Interest Income to Total Assets
Total assets

Noninterest income to total

Years Non Interest Inco Total Assets
assets in %
2009 2554701 254327446 1.004
2008 2707000 206191138 1.312

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 NON-INTEREST INCOME TO TOTAL ASSETS
1.4
1.2
1
0.8 Ratios

0.6
0.4
0.2
0
2008 2009

Interpretation

This ratio is showing a vital change in the year 2008 and 2009. This ratio reveals that
bank assets has increased but decrease in noninterest income due to Unrealized loss
on revaluation of investment classified as held for trading disturb for this year over all
non markup income is increasing for the Bank.

RISK ASSETS TURNOVER

Net interest income

RISK ASSETS TURNOVER  ×100
Risk assets (advances)

Net mark-up / Risk Assets Turnover

Years interest income Advances %
2009 9032658 135034499 6.689
2008 7742594 128818242 6.010

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 RISK ASSET TURN OVER
6.8

6.6

6.4
Ratios
6.2

5.8

5.6
2008 2009

Interpretation

This ratio is good when it is more. It shows how much you are earning on your risk
assets. This ratio for Askari bank is showing a increasing trend in current year.
Advances have increased. This causes to increase higher interest income for bank. Due
to inflationary trend interest income is also high. So this ratio is in favor of bank

PORTFOLIO MANAGEMENT RATIO

Advances to Total Assets

Advances
Advances to Total Asset 
Total assets

Advances To Total Assets

Years Advances Total Assets
2009 135034499 254327446 0.530 Times
2008 128818242 206191138 0.624 Times

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 ADVANCES TO TOTAL ASSETS
0.64
0.62
0.6
0.58
Ratios
0.56
0.54
0.52
0.5
0.48
2008 2009

INTERPRETATION
It is an indication of ACBL’s funds management policies. The funds allocation to the
financial institutions has increased to a great extent despite the fact that still it holds a
small proportion relevant to the total resources raised by the bank. It is a positive
indicator in the sense that the financing to the banks are the most secure ways of
lending. Considering the economic conditions of the country, it seems to be the best
alternative available to the bank. In the current year this ratio has been reduced to the
little extent. Although it is declining but the situation might not be alarming.
Leverage Ratio
EBIT
leverge ratio  ×100
Interest charged

Time Interest Earned

Years EBIT Interest Charges ( %)
2009 15271337 13629096 112.2
2008 11112101 10650719 104.3

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 TIME INTERST EARNED
114
112
110
RATIOS
108
106
104
102
100
2008 2009

Interpretation
Ratio is decreasing from 2007 to 2008 after that ratio is increasing at 2009 because
EBIT is increasing.
GEARING RATIOS

Debt Equity Ratio

Total debts
debt equity ratio  × 100
Share holder’s equitY

Shareholder's
Debt Equity Ratio
Years Total Debts Equity
2009 239378374 13142688 18.213 Times
2008 193219775 12034895 16.054 Times

DBT EQUITY RATIO

18.5
18
17.5
17 Ratios
16.5
16
15.5
15
14.5
2008 2009

Interpretation
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Debt equity ratio shows a relationship of shareholder equity and total debts of a
company. It is a relationship of internal and external equity of a company. Debt equity
ratio of Askari is showing increasing trend. It means that Askari is not trying to rely on its
own resources and not increasing its Capital by issuing shares. It is a bad sign for
askari bank.
TOTAL CAPITALIZATION
TOTAL ASSETS
total capitalization 
TOTAL LIABILITIES

Years Total Assets Total Liabilities Total Capitalization

2009 254327446 239378374 1.062

2008 206191138 193219775 1.067

TOTAL CAPITALIZATION
1.07
1.07
1.07
1.07
Ratios
1.06
1.06
1.06
1.06
1.06
1.06
2008 2009

Interpretation

It indicates that the total debts remain same in 2009 as compared to 2008

Fixed Asset / Equity Ratio

Fixed assets
fixed asssets/equity ratio  ×100
Share holder’s equity

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 Share Holder’s Fixed Asset/Equity
Years Fixed Assets Equity %
2009 9846440 13142688 74.92
2008 8266458 12034895 68.69

FIXED ASSET/EQUITY
76

74

72
Ratios
70

68

66

64
2008 2009

Interpretation

It indicates that the fixed assets are increasing, for this there is increasing trend.

Operating Assets Turnover

Interest earned
opearing assets turnover
Operating assets

Operating
Markup/return/interest Asset
Years earned Operating Assets Turnover
2009 22661754 9846440 2.302
2008 18393313 8266458 2.225

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 operating asset turnover ratios
2.32
2.3
2.28
2.26 RATIOS
2.24
2.22
2.2
2.18
2008 2009

Interpretation
It indicates the increasing trend in the graph as the ratio increases 2.225 in 2008 to
2.302 in 2009.

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 CONCLUSIONS

After the completion of my overall analysis and studies of Askari Commercial

Bank performance and banking system, I come to the conclusion:

The ACBL is a leading commercial bank of Pakistan. It has won the rewards like:
The Best Retail Banking Award 2008
The Best Corporate Report Award 2008

From the opinion of international organization the overall strong standing of the bank is
very clear. It won a certificate from Pakistan Credit Rating Agency (PACRA) A1 in short
run in and AA long term even in these worst conditions of economy the bank is enjoying
the huge profits of amount Rs. 1,108 Billion. Total assets of the bank are increased up
to 254 billion and Earnings per Share have greatly increased from last year. It has
increased its network from 200 to 226.

The bank is fully equipped with the modern technology and it is also providing all the
latest banking services like online banking, Internet banking, ATM cards, traveler
cheuqe, and credit cards etc.

The bank is trying to introduce latest techniques on regular basis because it is backed
by AWT that’s why people have complete confidence on them. ACBL has won the
confidence of all its customers by providing them the online services within few
seconds. The future of bank is progressive and will be a leading bank of Pakistan even
competing with foreign banks.

RECOMMENDATIONS

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A department should be established that collects feed backs of the customers and
as well as general public.
Charges should be decrease in providing services to the customer that will result
into the increase in the customers.
One way to retain the personal sector customers is to offer a wide range of services
such as tax advice, free life insurance equivalent to amount deposited, shares
portfolio management, fund management facility, etc., complimentary to the core
services. Banks must have a slightly different mix of services and mean of providing
these such that customers can choose the mix that suits them best.
Marketing department’s efforts to market and introduce its product should be
improved.
There should be proper training for the new employees.
Job rotation from one job to another is a big hurdle in the way of getting experience.
Employees have known how about how to work but not master in one work.
Employees are not satisfied with their jobs. The bank should take steps to minimize
it through different incentives for the employees.
The bank may choose to make its existing products distinctive or to introduce new
products. It is often easier to benefit from adverse changes made by other banks
than to attract customers by innovations.
Efficiency in services should be improved to serve and prevent customers from
waiting for too long e.g. by increasing the number of qualified workers or increase in
computers in the bank.
Improvement in the online banking system being currently used especially in the
case of the ATM machines to avoid wasting time of customers and frequent
breakdown of the machines.

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