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ACBL Multan

ACBL Multan

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Sections

  • PREFACE
  • ACKNOWLEDGEMENT
  • Author
  • INTRODUCTION OF ASKARI COMMERCIAL BANK
  • FORMAL DEFINITION OF BANK
  • Evolution of Banking
  • First Stage of Evolution
  • Second Stage
  • Third stage of Evolution
  • Fourth Stage of Evolution
  • Growth of Banking in Pakistan
  • Time of Independence
  • Establishment of State Bank
  • Development of Commercial Bank
  • Specialized Financial Institutions
  • Nationalization of Commercial Banks
  • Privatization of Commercial Banks
  • COMMERCIAL BANKS
  • ASKARI COMMERCIAL BANK
  • CORPORATE FLOW
  • DEPARTMENTS
  • TYPES OF ACCOUNTS
  • CURRENT ACCOUNT
  • SAVING ACCOUNT
  • ASKARI SPECIAL DEPOSIT ACCOUNTANT
  • ASKARI BACHAT ACCOUNT
  • TERM DEPOSITS
  • ACCOUNT OPENING PROCEDURE
  • INDIVIDUAL'S ACCOUNT
  • DOCUMENTATION REQUIREMENT
  • OPERATION
  • JOINT ACCOUNT
  • DOCUMENTATION
  • PROPRIETORSHIP ACCOUNT
  • DOCUMENTATION REQUIRED
  • PARTNER SHIP ACCOUNT
  • DOCUMENTATIONS
  • LIMITED COMPANY ACCOUNT
  • LETTER OF THE THANKS
  • RECEIVING INWARD CHEQUES
  • ENCASHMENT OF CHEQUE
  • Closing of Accounts
  • PROCEDURE
  • EVERYDAY POSTING
  • ATM- CARDS DEPARTMENT
  • ATM CARD
  • ASKARI BACHAT CERTIFICATE
  • ACCOUNTS DEPARTMENT
  • CHECKING BANK’S DAILY ACTIVITY
  • INSTRUMENTS OF BILLS & REMITTANCE DEPARTMENT
  • CRITERIA FOR OPENING FOREIGN CURRENCY ACCOUNT
  • FEATURES OF FOREIGN CURRENCY ACCOUNTS
  • CREDIT CARD DEPARTMENT
  • PROCEDURE FOR ISSUANCE OF CREDIT CARD
  • ASKARI MASTER CARDS
  • ISSUING PROCEDURE
  • PROFESSIONALS
  • BUSINESS MAN
  • Land Lord
  • PAYMENT PROCEDURE
  • TODAY’S POSITION OF BANK

Internship Report Bank

Askari Commercial

Table fo Contens
PREFACE..........................................................................................................4 ACKNOWLEDGEMENT....................................................................................5 Author...............................................................................................................5 INTRODUCTION OF ASKARI COMMERCIAL BANK......................................6 FORMAL DEFINITION OF BANK.....................................................................6 Evolution of Banking. ........................................................................................7 Bank Origin........................................................................................................7 There are different views about origin of the world “Bank”. According to some people the word “Bank” is derived from the world “Bancus” which means a “Bench”. They argue their point by this transacted their business of money exchange on the benches. If the business of any businessman failed, his bench was destroyed by the people. Due to this practice the word “Bankrupt” was also used. ..................................................................................................7 On the other hand some people say that the world “Bank” is derived from German time the word “Bank” was replaced by the word “Bank” which is called “Banco” in Italian language. ...................................................................7 Evolution of Banking .........................................................................................7 First Stage of Evolution. ...................................................................................8 Second Stage. ..................................................................................................8 Third stage of Evolution. ...................................................................................8 Fourth Stage of Evolution..................................................................................9 Growth of Banking in Pakistan. ......................................................................10 Time of Independence. ...................................................................................10 Establishment of State Bank...........................................................................11 Development of Commercial Bank..................................................................11 Specialized Financial Institutions....................................................................11 Nationalization of Commercial Banks.............................................................12 Privatization of Commercial Banks.................................................................12 COMMERCIAL BANKS...................................................................................13

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Internship Report Bank

Askari Commercial

COMMERCIAL BANKING SCENARIO IN PAKISTAN ..................................14 ASKARI COMMERCIAL BANK.......................................................................14 CORPORATE FLOW......................................................................................15 ASKARI COMMERCIAL BANK LIMITED MULTAN........................................15 DEPARTMENTS .......................................................................................................16 TYPES OF ACCOUNTS.................................................................................17 CURRENT ACCOUNT....................................................................................18 SAVING ACCOUNT........................................................................................18 ASKARI SPECIAL DEPOSIT ACCOUNTANT................................................18 Interest Rate....................................................................................................19 ASKARI BACHAT ACCOUNT.........................................................................19 TERM DEPOSITS...........................................................................................19 ACCOUNT OPENING PROCEDURE.............................................................21 INDIVIDUAL'S ACCOUNT..............................................................................21 DOCUMENTATION REQUIREMENT.............................................................21 OPERATION...................................................................................................21 JOINT ACCOUNT...........................................................................................22 DOCUMENTATION.........................................................................................23 OPERATION...................................................................................................23 PROPRIETORSHIP ACCOUNT.....................................................................23 DOCUMENTATION REQUIRED....................................................................23 OPERATION...................................................................................................24 PARTNER SHIP ACCOUNT...........................................................................24 DOCUMENTATIONS......................................................................................24 OPERATION...................................................................................................25 LIMITED COMPANY ACCOUNT....................................................................25 DOCUMENTATION REQUIRED....................................................................25 OPERATION...................................................................................................25 LETTER OF THE THANKS ............................................................................26 ISSUING PROCEDURE.............................................................................................26 RECEIVING INWARD CHEQUES................................................................27

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Internship Report Bank

Askari Commercial

Another responsibility and function of account Opening Department is to receive Inward cheques for collection of other Banks as well as of ACBL. Then these cheques are sent to clearing official who clears these checks at SBP from other banks. Inward bills from collection opposite are IBC number, their OBC number. Lodge in clearing cheques pending on realization. Cleared cheques are credited in the bank account. ....................................................27 ENCASHMENT OF CHEQUE ........................................................................27 Closing of Accounts. .......................................................................................29 PROCEDURE..............................................................................................................30 EVERYDAY POSTING....................................................................................30 ATM- CARDS DEPARTMENT........................................................................31 ATM CARD......................................................................................................31 ISSUING PROCEDURE..................................................................................31 ASKARI BACHAT CERTIFICATE ..................................................................32 ACCOUNTS DEPARTMENT..........................................................................34 CHECKING BANK’S DAILY ACTIVITY...........................................................34 INSTRUMENTS OF BILLS & REMITTANCE DEPARTMENT.......................35 CRITERIA FOR OPENING FOREIGN CURRENCY ACCOUNT...................46 FEATURES OF FOREIGN CURRENCY ACCOUNTS .................................46 CREDIT CARD DEPARTMENT .....................................................................71 PROCEDURE FOR ISSUANCE OF CREDIT CARD.....................................72 ASKARI MASTER CARDS..............................................................................73 ISSUING PROCEDURE .................................................................................74 PROFESSIONALS .........................................................................................74 BUSINESS MAN ............................................................................................75 Land Lord .......................................................................................................76 PAYMENT PROCEDURE ..............................................................................76 TODAY’S POSITION OF BANK......................................................................77

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Internship Report Bank Askari Commercial PREFACE Internship is an integral part of MBA programme. First of all I will tell you about Bank then I will tell operations of different department. For the sake of internship the most initial thing is to have a practical experience. This effort may get a student to get a practical experience if right organization is selected. 4 . Here I come to know a different and very interesting experience of learning and working with people. a student comes to particle knowledge. During this internship. As an MBA student I have also done my internship in Askari Commercial Bank Limited Multan. He/she learns what he has so far studied.

Ahasan Iqbal. I also wish to tender grateful acknowledgements with profound respect and gratitude to respected Dr. Sir Zubair Marketing manager of Macdonald Lahore. We are highly indebted to Mr. Author 5 ..Internship Report Bank Askari Commercial ACKNOWLEDGEMENT First and foremost all praise be to Almighty Allah to gave me the courage and patience to carry out this responsibility successful.Muhammad Zaffarullah director of Institute of management Science for affording us an excellent opportunity to explore ourselves in the case study of Macdonald. I also feel indebted to all the respected staff of Macdonald who gave me very effective guidance to make this work successful.

Internship Report Bank Askari Commercial INTRODUCTION OF ASKARI COMMERCIAL BANK FORMAL DEFINITION OF BANK Bank is an institution which revives money from one party and lends to another party. These are the following types of banks      Central Bank Commercial Bank Industrial Bank Exchange Bank Saving Bank 6 .

People started to search the custodians of wealth. The evolution of banking started and it has crossed the following stages. 7 . In the early ages human like and wealth was not secure. Due to fear of lootmar and theft people buried their wealth under land but this method was not satisfied.Internship Report Bank Askari Commercial Evolution of Banking. On the other hand some people say that the world “Bank” is derived from German time the word “Bank” was replaced by the word “Bank” which is called “Banco” in Italian language. Due to this practice the word “Bankrupt” was also used. If the business of any businessman failed. According to some people the word “Bank” is derived from the world “Bancus” which means a “Bench”. Bank Origin. There are different views about origin of the world “Bank”. his bench was destroyed by the people. They argue their point by this transacted their business of money exchange on the benches. Evolution of Banking The history of banking evolution is very interesting.

Goldsmiths charged something for this purpose and they returned the depositors their money whenever they needed banking evolution and goldsmith were the early bankers. People purchased the various things from the traders against their receipts against the payments. During this period those receipts which were issued by the goldsmiths against the valuables goods were being used as a medium of exchange by the merchants. After a great struggle people succeeded in finding the reliable persons to deposit their money and valuable goods for safety. These were considered the most trusted persons due to their sounds financial position. Second Stage. money and other valuable items. Third stage of Evolution.Internship Report Bank Askari Commercial First Stage of Evolution. On the other hand they had a very strong iron safes for keeping gold. So the receipts were used like the bank cheque of the modern age. These people were goldsmiths. This period started at that time when goldsmiths came to know by the experience that people are using their receipts as medium 8 . People started depositing their gold and cash in the safe of goldsmiths.

Fourth Stage of Evolution. They also started paying interest to attract the depositors of net cash. Now to maintain the good will of the banks perform their duties. Now this business became very profitable. It was started at that tie when people were tempted to deposit more and more cash to the traders. In the present age bank is modernized shape of those institutions. Keeping in view the above discussion about the evolution of bank we can say that it is the result of the different activity of goldsmiths. Goldsmith started the business of lending. money lenders and goldsmiths to earn maximum interest. Now with the changing 9 . So for the borrowing and lending business regular institutions came in to being. On other hand number of borrowers also increased borrowing the money. so the traders and money lenders also jumped in this field. merchants and money lenders. All the commercial banks perform their duties keeping in view the instructions of the Central Bank. All the basic functions of modern bank like accepting are similar with the founders.Internship Report Bank Askari Commercial exchange and very few people demand their deposits. They are the real founders of modern banking business. But to earn more profit every bank started issuing overdraft facility without maintaining adequate cash reserves to meet the demands of the depositors. This inability created the financial crises. So they reach to the conclusion that they may lend some pro9tion of their total deposits to some other people and they can earn profit.

Internship Report Bank Askari Commercial business requirements the secondary functions of banks have been changing with the passage of time. The funds and other valuables were transferred to India. Hindues migration from Pakistan to India also caused drain on the bank deposits. Pakistan had 631 branches of scheduled banks and 411 of no-scheduled banks. the non-scheduled banks number reduced from 411 to 106 over the same period. At the time of independence there were only two Pakistani banks. Growth of Banking in Pakistan. Hindues closed down most of the head offices and branches of the scheduled and non scheduled banks in Pakistan. When Hindues became sure about the divisions of the sub continent. they secretly began to transfer their capital to the safe places in India. In order to ruin the economy of Pakistan. of Pakistan took various steps to provide all kinds of facilities to they non-Muslim 10 . The mass scale withdrawal of deposits closure of branches and migration caused a deadlock in the banking business in Pakistan. At the time. The total deposits of Pakistan banks were Rs. Time of Independence. that is Habib Bank and Australasia Bank. 800 million and advances were 198 million. Keeping in view the above situation government. The entire banking business was controlled buy the non-Muslims before the partition of the sub-continent.

1948 But it could not protect the interests of Pakistan. HBFC. To remove the financial difficulties and to establish sound banking system Govt. In the development. to banking system it played very important role as a Central bank of the country.Internship Report Bank Askari Commercial bankers for restoring normal banking facilities but response was not encouraging. 11 . The Reserve Bank of India acted as a Central Bank of Pakistan till 30th September. Specialized Financial Institutions. NDFC. established the State Bank on 1st Julv 1948. IDBP. These financial institutions financed the particular sectors like agriculture. Government of Pakistan established the specialized financial institutions like ADBP. These banks also extended their branches to foreign countries. PICIC. Development of Commercial Bank New branches were opened in the country with the development of banking system. Establishment of State Bank. After independence it was not possible Sc-r Pakistan to set up the Central Bank immediately. industry and housing.

Privatization of Commercial Banks. Mehran Bank. The weaker banks were merged with the strong banks. Now new like Askari Bank. So after privatization private banks will not accept the political pressure and loans will be issued on merit. It was also argued that loans were used as a political bribe and it destroyed our banking system. Union Bank and Al-Habib 12 . 1991. Now government has decided to privatize the Commercial Banks. People are not willing to repay the loans despite of all Govt. The banks are in the process of privatization like other units of the economy since 1990. Indus Bank. a privatization Commission was set up and two Commercial banks namely MCB and ABL were transferred to private sector. In January. In August 1991 government has also allowed the establishment of new private banks. Platinum Bank.Internship Report Bank Askari Commercial Nationalization of Commercial Banks In 1974 Government of Pakistan nationalized all the banks. It was argued that these were nationalized So provide fair distribution of Credit to all the classes of people and remove the monopoly of few Capitalists over the banking industry. This step is taken to provide better banking facilities lo the public.. efforts. Soneri Bank. While other banks like HBL and UBL are under the process of privatization.

13 . COMMERCIAL BANKS Commercial banks are companies “which transact business of banking in Pakistan Commercial banks have constituted the most important source of institutional credit in the economy of Pakistan.Internship Report Bank Askari Commercial Bank are established. These banks have established their branches in all the important cities of the country.

The Mall. ASKARI COMMERCIAL BANK The government approved and the established private scheduled bank in 1990. It has total 30 Branches and spread all over the Pakistan. The commission transferred many banks to the private sector i.233 offices all over Pakistan and 74 offices in the foreign countries. there were 38 scheduled banks with 195 offices in "Pakistan. But by December 31. 1973 there were 14 scheduled Pakistani Commercial Banks with 3. It is a branch of Army Welfare Organization. Its registered office or head office is at AWT Plaza. 1974 under the Nationalization Act 1974 due to certain objectives. The main cause of its success is its main concern on quality of services not quantity of service. It provides a lot of facilities to its honorable customers. (AWT).e. Now it is no. Nationalization of Banks was not done 1st January.Internship Report Bank Askari Commercial COMMERCIAL PAKISTAN BANKING SCENARIO IN At the time of independence in 1947.in 1992. 14 . It is so successful only due to its safe portfolio of lending. But it had negative effects on the efficiency of the banking sector. MCB and ABL. Rawalpindi Pakistan. 1 private commercial bank.

2. 4.Internship Report Bank Askari Commercial CORPORATE FLOW It the corporate body consists of 12 Board of director including one chairman 1. 3. Multan City is linked to many big cities. They are dedicated their work. It is a prosperous branch streaming towards great achievements.1994. The location is connected to all the main trade centers in Multan. President Chief Executive Secretary NIT Nominees ASKARI COMMERCIAL BANK LIMITED MULTAN Askari Commercial Bank Limited Multan was inaugurated on December 28. Under the 15 . The branch is progressing rapidly. At the time of its establishment the factored who were considered are as follows Multan is zone covering a large population. Agro based area constituting growers and gainers Army Offices & Fort Colony Educational Institution      The total strength of staff in ACBL Multan is 35. It is located on Abdali Road Opposite to PIA Office.

Internship Report Bank Askari Commercial dynamic leadership of Vice President Mr. Tariq Mahmood and Operational Manager Mr. Zubair Sheikh DEPARTMENTS The bank has following department:  Account Opening department  ATM Department  Credit Card Department  Account Department  Credit Department  Remittance Department  Foreign Trade Department  Cash Department 16 .

17 . But in the case of a bank borrowing funds from outside parties is al l the more vital because the entire banking system is based on it .Internship Report Bank Askari Commercial ACCOUNT OPENING DEPARTMENT Borrowing funds from different sources has become an essential feature of today's business enterprises. These deposits are lent out to different parties. there are the following types of accounts: • Current account. Banks borrowing is mostly in the form of deposits. • Askari Bachat Certificate. • Saving Account. The borrowed capital of a bank is much greater their own capital. • Term Deposit. • Askari Special Deposit Account. Such deposit creation is done through opening an account in the Bank. Asif Awan is operating the account opening department along with performing some auxiliary functions of Cheque Book Issuing and receiving IBC’s (inward Bills for Collection). TYPES OF ACCOUNTS In ACBL. In ACBL Multan Mr.

50. It is necessary for this account that the client must maintain a minimum balance of Rs.5% per 6 month. The profit is on the basis of 8. When a banker accepts a demand deposit.Internship Report Bank Askari Commercial CURRENT ACCOUNT In current account there is no interest on it. ASKARI SPECIAL DEPOSIT ACCOUNTANT ASDA account is an interest bearing current account interest is paid. They are paid on demand.100/. The minimum deposit for opening the account is Rs. where as the rate of return with aspect to the amount of minimum deposit clear from deposit schedules in following table). he incurs the obligation of the paying all cheques drawn against him to the extended of the balance in the account. It is also checking account because cheques can be drawn on it.(as obvious in the Annexure). Though individuals open such accounts for saving purpose. Current account is mostly opened for business. persons belonging to Armed forces and different military institutions are free to use this account on current basis. It is for only transaction purposes. SAVING ACCOUNT The purpose of this account is to induce the habit of saving individuals in the neighborhood. As there is no profit paid on this account it is also called chequing account because cheques can be drawn on it. The payment of return is monthly.000 at the 18 .

the rate of return for 3-years is 12% if ABCs is for 5-years the rate of return is 13%.0 Million.999 8% 500. Because in such account the balance is kept for either '3' or '5' years within the bank no cheque is drawn on it. That is why it is not a checking account. The customer is allowed to with draw the principle amount .000 – 499. Interest Rate 50. Amount in Rs.99 9% million 5 million – 20 million 10% ASKARI BACHAT ACCOUNT ABCs are long term fixed deposit for 3 and 5 years.and maximum balance requirement is Rs. Return is made monthly. One of them is "Askari" Advantage one month. TERM DEPOSITS A term deposit is a deposit that is made for a certain periods of time at the end of the specific period. The minimum balance requirement is Rs. ACBL Term deposits are of types clear in the deposit scheme in the table).000 – 4. If ABC is for 3-years. It is mostly opened by Business but individuals too open this account. That’s why it is similar to current account. 1. The rate 19 . 25000/. Theses are not term deposits because payment of return is on monthly basis rather than on maturity of deposits.Internship Report Bank Askari Commercial end of the month.

5% 9.5% 13% The amount of profit is given to depositors in three ways: • By cash • By sending a bank Draft to depositors Home address or Officers or whichever is specified as mailing Address.Internship Report Bank Askari Commercial of return on this account is 9.5% 11% 11. • The amount is credited in any one of the checking Accounts of the depositor. Period One month 2nd 3rd 6th month One year 2 year 3 year Interest Rate 9. The term deposit account vary one month to 5 years and the min balance requirement is Rs.5000/.for all following accounts (as clear from Deposit Scheme in the table ). 20 .75% 10% 10.75%.

The operation /procedure requirement that is needed for " Individual Account " differ greatly from " Joint account " proprietorship "Partner ship “. a fix his /her either two or four similar signature (or thumb expression in the signature space and get it introduced and signed by a person who already has an account with the bank and write his account no in the specific rows in a specific space. For illiterate person and Veiled Women. SAVING). OPERATION • The person place a "Check Mark " in the type of account and type of operation required • He/She fills in part-I of the form . INDIVIDUAL'S ACCOUNT When a single man or women opens an account in his/her own name and has the right to operate it is called individual Account. there are different types of account holders are required for all these types of account holders. "Limited Company" and "Club society or Association " as explained below. DOCUMENTATION REQUIREMENT For literate person copy of National Identity Card is required as a primary requirement.Internship Report Bank Askari Commercial ACCOUNT OPENING PROCEDURE For the checking accounts (C/A. ASDA. 21 . along with the copy of National Identity Card requirement he or she must come in person for opening the account.

One the back of S. husband/wife or any other relative's name. This requirement is needed because in his/her absence bank can have correspondence with the specific person. The person put his signature on form -A (check book requisition) on two places in "authorized signature" and fills in the "Title of Account space by writing his name. nor trustees. • The person put her /his signature (" or thumb expression) on the signature Specimen Card (SS CARD) similar in the area on the form.S card mailing address. 22 . he signed a "Vernacular form" where under take that affixed signature are original and his own signature and two postal size photos are needed.Internship Report Bank Askari Commercial • The person fills in "next of Kin " position where he/she father. phone no and affix his/her signature to certify this requirement. telephone no. mother. his /her address. Person to contact and introducer space is filled in. Husband and wife or two persons of same sex can open joint account. The next day is the opening of account. JOINT ACCOUNT When two or more persons. All these requirement are necessary for future • The person deposits the initial amount for opening account on to the cash counter. open an in their name is called joint Account. • If the person put his signature in Urdu or any language other than English. neither partners.

• In the title of account space names of all the persons are mentioned. an application for opening the account on the firm letter -pad (having the firm name) is required along with the N-I-C. DOCUMENTATION REQUIRED For this kind of account. opens an account in his firm name. Card.Card of proprietor. this account is called a proprietorship Account the proper himself liable for all his acts. OPERATION • The person checks the type of account and type of operation required in the respective box on the form. 23 . • The persons fill in the Part-I and part-II in the form.S.Internship Report Bank Askari Commercial DOCUMENTATION For joint account copy of National Identity Card of all the persons is obtained other things remaining same as in individuals account. PROPRIETORSHIP ACCOUNT When an owner of a firm operating singly. • Accounts holder specified in the form that they will operate the form singly or jointly. • Signatures of both persons are obtained on the form in the area specified for signature and S.

I. address of all partners is written on the pad. Every partner has in a firm has an implied authority bind his co. card of all partners • Application to open the account on the firm letter pad. Card and the area specified for signatures on the form. • Partner ship deed in case registered partnership firm. • In case of non -registered partnership firm. PARTNER SHIP ACCOUNT The account is opened in the firm name and all partner designate one two persons to act on behalf of the partner ship firmer all acts on behalf of firm. The partners in the partnership firm are liable for the acts of the firm jointly and severely. DOCUMENTATIONS • Copy of N. partners by drawing and enclosed cheques.S. understanding on behalf of the firm to remain liable for all acts of the firm. • Letter showing the implied Authority of one or more partners to act on behalf of the firm. 24 .Internship Report Bank Askari Commercial OPERATION Al l operation remains the same except that the firm name is written in the "Title of the Account" area and signature of the proprietor are affixed in the S. • Name.

S Cards. Next of kin "requirement "is not need in case of a Limited Company.Internship Report Bank Askari Commercial OPERATION All other requirement remain same except that the form is dully signed by all partners cards are signed by all those partners who will act on behalf of the firm and along filling part-I . Part-Iv is also filled. • Articles of the Association • Resolution of the Board of Director. • Certificate of commencement of business • N-I-C OPERATION The persons authorized in the Resolution of the Board of Directors put their signatures on S.S card are 25 . bank provides many facilities.S card and is stamped "Verified" customer signatures are admitted by stamping "Admitting" near signature and again signatures on S. DOCUMENTATION REQUIRED • Memorandum of Association. LIMITED COMPANY ACCOUNT This account is for limited companies. After completing each and every formality. In order to facilitate their transaction with outside parties. introducer signature is verified by S. • Certificate of Incorporation.

They are not issued for other fixed and term deposits because of their Long term Accounts “nature.” ISSUING PROCEDURE  Signatures on cheque – book requisition are verified by matching with signatures on SS. A/C Number etc. address. OTHER RESPONSIBILITIES CHEQUE BOOK ISSUING Check books are issued only for checking account such as current Account. 26 . account holder’s name are mentioned in the cheque.book is made by mentioning the and the total of sum of excise duty and provincial tax. account number.Internship Report Bank Askari Commercial admitted in the same way.  Cheque – book leaves number. LETTER OF THE THANKS At the start of the letter 2nd day. Accountant is open in the computer by writing name. saving Account and ASDA Account. The same process of verification and admission of the signatures is repeated on Form-A and next of Kin area. ACBL issues letter of thanks to "Account Opener" and "Account Introducer" for the trust they have on ACBL. After completing each and every formality.

Then these cheques are sent to clearing official who clears these checks at SBP from other banks. ENCASHMENT OF CHEQUE Issuance of Token After scrutinizing the apparent tenor of cheque a token is issued to the account holder. Lodge in clearing cheques pending on realization. Inward bills from collection opposite are IBC number.Internship Report Bank Askari Commercial  The name of A/c holder and date of cheque – book issuance is written on cheque – book requisition the account-opening officer puts his initials on requisition leave. RECEIVING INWARD Another responsibility and CHEQUES function of account Opening Department is to receive Inward cheques for collection of other Banks as well as of ACBL.  A/c number is stamped over the leaves of cheque – book and finally authorized person affix his signature over the debit voucher and cheque book is handed over to the customer. their OBC number. Cleared cheques are credited in the bank account. Verification of Signature 27 .

a cheque Is sent to the accountant for the verification of signature from signature specimen card.e.e.Internship Report Bank Askari Commercial After affixing the two stamps i. After authentication a cheque is sent to cash department Encashment of Cheque Cashier pays the amount to token holder after getting back the token from him. paid stamp and branch stamp.5 % .annually on the outstanding balance of accounts on the first day of every valuation dale i. first day of Ramzan. 2. The accounts of the followers of Fiqah-e-Jafria sect are also exempted from the deduction of Zakat after the submission of affidavit on a legal stamped paper. The Central zakat Authority (CZA) fixes minimum balance for the deduction of zakat before the valuation date Exemption from Zakat The accounts of foreigners (including Muslims of other nations) and Pakistani non-Muslims arc exempted from (lie compulsory deduction of Zakat. Withholding Tax 28 . Deduction of Zakat Form the profitable accounts zakat is deducted at the rate of Rs.

29 .in his account. In first case account holder’s request the manager of the Bank to close his account in black and white. An account is .Internship Report Bank Askari Commercial Whenever a profit is paid on any deposit it is subjected to the withholding tax @ 10% annually. Some of the more common reasons are as follows: 1234Account holder's own request Death of account holder Bankruptcy of account holder Closing of account due to bad demeanor of account holder etc. 100/.closed at the request of an account holder or as a result of improper conduct of the account holder or because of nil balance of the account. Account is closed on the written request of the customer ACBL debits Rs. The account holder with draws the amount by writing a cheque and just leaves Rs. Closing of Accounts.as charges for closing the customer account from that account. 100/. But to surrender the cheque book yet if some leaves are yet to be write to the bank as a necessary requirements for closing the account. There are many reasons for closing of account.

5.Internship Report Bank Askari Commercial PROCEDURE 1.” EVERYDAY POSTING Following transaction of cheque book is posted:Dr_____________ party A/c 25(for 10 leaves) Cr______________ excises duty on cheque book 20 Cr______________ provincial tax on cheque book 5 30 . The account opening form of the account holder is taken from the account-opening file. 6. and resolution of board of directors in case of limited company account are attached with the form. it is written in “Red Ink on the form that account closed” and “Date of account closing. Lastly. Company account resolution of the board of directors is also obtained to attach it with the application. 3.proprietor firm and company surrender the cheque book to the bank. The individual or in case of other type. The customer for individuals account write an application to the manager of the bank an a simple paper about the closing of his account with the bank (In case of proprietor ship partnership and limited company account the application should be written an firm or company letter –head) 2. In case of Ltd. cheque book. The cheque book is then torn from one side and is attached with the application. and the application. 4.

Then on the same application form bank officer guides branch code. 31 . Maximum limit of daily cash withdrawal is Rs. Mr. After completing this process. ATM CARD ATM – Cards are only issued to Account Holder. Then he fills the ATM application form in which name of account holder. ACBL head office takes a period of 3-4 weeks for preparing and processing of ATM – cards. The card and list are not sent simultaneously in order to avoid any mishandling. Bank manager puts his signatures. application number and signatures are verified by the bank. account number.CARDS DEPARTMENT This department deals in issuing ATM-Card. the application package is sent to card centre. 5. Any account holder of ACBL (current “Saving Value plus Saving Account”) can obtain ATM card from ACBL with in 15 days. First. phone number are mentioned. 10000. term deposits and Askari Bachat Certificate. first open the account within the blank. The person. 2. Card along with pin code is sent to the branch from the head office. 4. 3.Internship Report Bank Askari Commercial ATM. Kamran deals this department. address. list of card holder is issued and then after 15 days cards are sent to ACBL issuing branch. ISSUING PROCEDURE 1.

The entry is made in the ABC register. 200/per year or Rs. PROCEDURE • The customer comes to the bank and specifies the number of days for which he wants to Deposit hid money in term deposit. All the requirements are properly fulfilled. ACBL takes Rs. The certificate is filled according to the specification. The application is then posted in the file. The presence of account is not necessary. He needs not have an account in the bank. 32 . TERM DEPOSIT Any person can open a term deposit. You can deposit money “withdraw” get balance inquiry “transfer the fund” 24 hours a day at any branch of ACBL which has ATM facility. The credit voucher is made against the cash that the customer deposits to the bank. 100/semi annual as charges for a card. The certificate is then handed over the customer. • The credit voucher is made for the amount of cash to be deposited. ACBL ha shared ATM network with ABN AMRO and HBL. The details are written. ASKARI BACHAT CERTIFICATE The ABC application form is filed and signed.Internship Report Bank Askari Commercial 6.

• The number of the term deposit form and term deposit is noted receipt is then given to the customer.Internship Report Bank Askari Commercial • The term deposit form is then filled by the officer. it is posted in the term deposit file.2% tax on the provincial amount is taken while issuing the receipt. All the requirements are carried out. The date of opening. • The term deposit Receipt is then given to the customer. • The number of the term deposit form and term deposit receipt is noted in the term deposit Register. the name of the customer. the period. • A 0. the stamp of the bank etc. the signature of the customer and the authorized officer. • A credit voucher made and the amount is credited to the tax on TD. • After completion of the form. 33 . the signature etc is all written on the form. • The term deposit Receipt is filed according.

All the vouchers and instruction are checked individually are checked individually against the computer printouts. Then next day activity separated some statements from the “End of Day”. The vouchers are matched with the entries in the statements. Mr.Internship Report Bank Askari Commercial ACCOUNTS DEPARTMENT Accounts department is a department which deals and checks all the activity of all the department . Any abnormality if occurs. Shafiq. all the vouchers that have been posted at the computer are scrutinized in accounts department. After checking they are signed by Mr. The next day the activity is separated some statements from the “End of Day”. Salary payment is also one function of the bank.It also deals in expression of finance of the bank. computer print is also received from the computer. CHECKING BANK’S DAILY ACTIVITY Accounts department deals and checks the entire working of the Branch. The vouchers are sorted out head wise. The “End of Day” i. Shagufta deal this department. OTHER ACTIVITIES  Preparation of daily bank positions statement  Payment of salaries  Preparation of the statements  Depreciation calculation 34 . is immediately dealt with. Kamran and Miss. Kamran and the internal auditor Mr.e.

Incharge of the department is Mr. INSTRUMENTS OF BILLS & REMITTANCE DEPARTMENT The instruments that are handled in the B & R department are as follows:  Demand Draft. 35 . then one banks sends a DD to another bank. But in customer .  Pay order.  OBC. which is drawn by one bank upon another bank for a specific sum of money payable on demand.  Mail transfer. The main function of this department is transfer of funds. If two banks are involved.  IBC.  Telegraphic transfer.  Pay slip. Ahmad Feroz. It is made by the bank and given to the purchaser against cash or cheque.Internship Report Bank Askari Commercial REMITTANCES DEPARTMENT Remittance department provides services to the customer of the bank.Bank case the customer sends his DD to the receiver. DEMAND DRAFT A demand draft is an instrument.

 The Officer in charge then checks the information form.  Then the officer of the bills & remittance department signs it and operation manager counter signs it. excise duty. postage is charged as per effective schedule of charges.  In case of cash deposit the cashier counts he amounts & signs the DD application and enters it in the register. he fills in a relevant information and signs it.  The charges such as commission. Commission charges Excise duty computer. Cr Cr  The vouchers and the DD form given for posting at the 36 .  Vouchers are passed.Internship Report Bank Askari Commercial ISSUANCE PROCEDURE A demand draft application (Annexure--) to given to the customer.  The cash received equals the amount of remittance & the cheques there on.  The entry is made in the DD issuing register.  It is given to the customer. Tax is exempted if he is taxpayer & knows his No.  The DD advises are printed at the computer and mailed to the respective branch.

i. the procedure is as follows. 37 .e. Dr Cr  The DD credit is attached with the vouchers and given for the TELEGRAPHIC TRANSFER A telegraphic transfer is a fastest & safest way to transfer money.T is taken on the standard printed form. The Branch DD payable posting at the computer.e.  The DD credit advice is received through mail.Internship Report Bank Askari Commercial NOTE On the contra. ISSUANCE  The request for maintenance through T.  An entry is made on the DD payable register. DD payable is Nil. The No’s are checked & signatures are verified. and the vouchers are made.  The customer fills it & signs it. the test No’s are checked.  The vouchers are given for posting. and the payment is made. The message is fixed. a customer comes to us with the DD.  When DD is received. And the entry that was made in register is closed. when a DD is received i.

Cr Cr Cr  When commission bill is received. the charges such as commission.T receipt needs revenue stamps and then the payment is made.T is made on the white slip. telex as per effective schedule and signs it. one to the Head Office and one is kept as record.T office PAYMENTS  When a T. 38 . it is attached to the T. Commission Charges Fax charges W. Party A.  The following vouchers are posted. The original faxed to the Branch.T Pay able T. Dr Cr Dr Cr  If there is no a/c then the T. Tax.Internship Report Bank Askari Commercial  The Head & remittance department checks it.T pay able register.  Then a neat T.T arrives. the test numbers are checked and the signatures are verified. tax.T receipt is strictly non negotiable./C. There are 3 copies.  The entry is made in the TT issuing register.  If he fills the tax exemption from then no tax is levied.  The following vouchers are prepared & given for posting.H.  The entry is done in the T. copy in the file. The T. Head Office T.T Payable.

 The pay order is then handed over to the application after obtaining his signature on the P.  An entry is made in the pay order issued register.  Then the pay order receipt is filled accordingly. stamped and handed over to the applicant as a receipt. Bodies.  Charges as per effective schedule are applied.  Counter foil is also filled.Internship Report Bank Askari Commercial PAYORDER It is a cheque drawn by a bank on itself. It is usually made by govt.O issued. A single bank is included in this case. It can he purchased by any customer. the bank and the receiver. he fills in the detail and signs it. 39 .  A cost memo is signed.  Then the authorized office after checking the pay order signs it. ISSUANCE  The standard form is given to the customer. A voucher is also made and posted at the computer Cr bills payable account P. Pay order is an instrument in which the parties are involved the purchase.  The cash of the pay order is received.O form.  The concerned staff checks the form.

Internship Report Bank Askari Commercial 40 .

Dr bills payable A/C P. 41 . 1.O issued register.O for issuance and payment is followed for payment is followed for pay slips with the following expectations.  The P. The slips are issued to the employees of the banks their bills & invoices. In this case only one bank is involved. Pay slips are the issued by the bank for the settlements of this own payment. No excise duty is applicable on P. The bills are transferred payments. 2. He is the issuer as well as the payer.S.O entry is made in the P.  The P.  Then the amount is credited to the account of the customer or paid in cash.O issued. Procedure prescribed for P.O is posted at the computer.Internship Report Bank Askari Commercial PAYMENT  On representation of the pay two authorized officers of the branch sign order receipt the receipt. PAY SLIP It is an instrument used by the bank s for its payment.

If Askari branch is in that city. are called outward bills for collection. Otherwise it is particular Branch to whom the cheque belongs. register.S books is taken out & filled according to the credit voucher. the OBC forwarding schedule in sent to that Askari Branch. Bills payable P.S. is posted at the computer. to the b debt.S.S.  It is signed by.  The P.  Dr. is received on the counter. According to the b debt. if it is transferred in the P. 42 .O register. /P. an authorized officer.Internship Report Bank Askari Commercial ISSUANCE  A credit voucher is sent from the accounts dept. addressed to the OUTWARD BILLS FOR COLLECTION The bills. clearing or transfer.O. Zubair Sheikh. issued.  The pay slips is handed to the customer.  It is entered in the P.  On receiving the P.S.  A voucher made and posted payment. Operational Manager Mr.S.  The payment is made and the P.  The P. which are sent to their cities banks for the local clearing in that city.

 Charges i.  On clearance the respective banks send back the OBCS along with IBCA.  The OBC no are checked for the OBC register and the received any entry is made.  The office copy is filled and the original schedule is mailed.Internship Report Bank Askari Commercial PROCEDURE  The cheques that are banks in other cities are separated. Party A/C Postage charges At the end of the day the contra vouchers are. commission charges and postages charges are deducted from the A/C.  Two authorized officers sign the schedule.e. Vouchers of following entries are made.  The OBC forwarding schedules / (Annexure) are prepared for the different branches.  They are entered in the OBC register. the number is written on the stamps. Inter branch credit advice.  The respective cheques are attached with the schedule. OBC collection OBC lodged OBC collection OBC lodged Dr Cr Dr Cr Dr Commission Charges Cr Cr 43 .

 At the end of the day two contra vouchers are made & posted.  After realization.Internship Report Bank Askari Commercial INWARD BILLS FOR COLLECTION The bills are received from other banks out of city for the local clearing are called inward bill for collection. The IBC numbers are allotted to them. an IBCA is prepared and mailed to the branch.  The cheques are entered in the IBC register. IBC collection IBC logged IBC Collection IBC lodged Dr. PROCEDURE  The OBC of the other branches will be the IBC’s of this branch. Cr Dr Cr 44 . So an OBC forwarding schedule is received by mail.  The cheques are lodged for clearing.

 OBC Collection.Internship Report Bank Askari Commercial OTHER FUNCTIONS BALANCING THE REGISTER At the end of the day.  MT payable.O. The heads and checked are as follows.S.  IBC lodged.  Bills payable P. P. a reminder is sent to the respective branches.  OBC lodged.  TT payable. issued. If the payables are not cleared for a lot of days.  DD payable  IBC collection. 45 . all the registers are balanced with the computer balances.  Bills payable. issued.

well and good. Foreign trade department deals in:  Foreign currency account  Exports  Imports FOREIGN CURRENCY ACCOUNT Mainly this account deals in individual. According to foreign exchange rules and regulation every citizen of Pakistan.Internship Report Bank Askari Commercial FOREIGN TRADE DEPARTMENT Incharge of the department is Mr. either within the Pakistan or outside the Pakistan. Bank wants only introduction of the Client and very little about the background. if someone has. can open the foreign currency account. personal and companies account CRITERIA FOR OPENING FOREIGN CURRENCY ACCOUNT There are not hard and fast rules for becoming the Foreign Currency Account holder. otherwise no restriction will be there for him. FEATURES OF FOREIGN CURRENCY ACCOUNTS There will be legal protection for the account holders. 46 .D card is also not necessary. Resident firms and Resident Companies including investment Banks can open Foreign Currency Accounts. Noor. I.

Foreign currency Accounts can be used for payment of purchases at Duty Free shops. FACILITIES This account provides following facilities: 1) 2) Traveling quota Out ward remittances 47 . The account holder can transfer the funds freely. No Zakat will be deducted on these accounts. Foreign Currency can be deposited by:  Remittance received from abroad  Foreign Currency Notes There will be no restriction and questioning to him about the currency. one place to another. with in the ACBL Branches or in other Bank. in any currency to any part of the world.Internship Report Bank Askari Commercial All foreign nationals and foreign Companies in Pakistan or abroad can open Foreign Currency Accounts. no Wealth Tax deduction will be there. no Income Tax deduction. Foreign currency accounts can easily be transferred from one person to another. Opening of Foreign Currency Accounts in the joint names of residents/non-residents is permissible. These incentives reinforce and motivated the people to invest in foreign currency accounts rather to keep the foreign currency idle. which he wants to deposit that from where he got that money.

Internship Report Bank Askari Commercial 3) 4) In ward remittances receiving To make remittances procedure flexible EXPORT Mainly export deals in:  Negotiation of documents  Sending the documents for collection  Pre-shipment financing  Post-shipment financing  Remittance against agent commission  Forward covered booking  Handling the documents for negotiation according to the UCP 500 (uniform custom and practices)  Handling the documents for collection according to URR (uniform rules for collection)  E form. This section helps the exporters to settle the financial affairs Registration Who so ever desires to export the goods first of all he has to get his name. After getting registration. name of firm. or his limited company registered with the export promotion bureau. the exporter 48 .  Internal transactions are through Nostro and Vostro accounts.

The name and address of the shipper. description. It is essential for the shipping documents to clearly sale the parties. The route must be signed and initials should be appears on it. weight and packing of the goods should agree with the invoices documents must also clearly sale the route that the vessel or airline shall take. showing that the exporter is account holder and have a good dealing with us. Documentation. the name of consignee. The exporter must submit the following documents to the negotiation bank. 49 . In order to get his name registered with EPB. • Bill of exchange • Invoices • Insurance documents • Bill of loading As an evidence of dispatch of goods the shipping documentary bill are indispensable part of documents. The quantity. • Bank certificate. Shipping documents must be drawn out in prescribed from by valid shipping or airlines.Internship Report Bank Askari Commercial will be allowed to export his commodities. he has to submit the following documents. Sometimes the buyer through the documentary credit requests the sellers to certificate of origin and packing list. • Income tax certificate.

The exporter brings all these documents comes from foreign banks either through telex or courier service then the documents are sorted and test is applied and if it is correct. The bank on its part to also duly bound to make the payment however it is only reasonable to allow the bank sufficient time to scrutinize the documents that exporter has submitted. This deceleration is submitted on a prescribed Form-E in quadruplicate which is certified by the authorized Dealers.Internship Report Bank Askari Commercial After submission of the documents to the negotiating bank seller is bound to receive his payment. The necessary documents includes the L/C form normally directly comes to the exporter and not to the bank. 50 . E-Form. Every exporter is required 10 furnish a declaration to customs authorities for goods exported. after certification from the bank the exporter then goes to the custom authorities and makes certify form there and finally goes to the port for shipment. then stamp of test corrected without engagement on our part is affixed. The advising bank certifies From-E after checking the invoices. After examining the documents. the advising bank made a scrutiny sheet to check the amount of L/C as well as amount of bill of exchange etc. L/C and the contract attached with From –E. If the bank finds the documents correct then the bank will make payment to the exporter after confirming with the buyer’s bank.

Certification of E-Form Before lodgment of E-Form to custom authorities is requested to be certified by the authorized dealers. When the quadruplicate set 51 . Issuance of E-Form: Blank 'E' form in quadruplicate is issued to the exporter having an account with the branch against little request. In case the exporter maintains his account at a branch other than the exchange dealing branch. Credit report of the exporter is also obtained to ensure the credit worthiness of the exporter. NTN.I.g. valid export registration corticated. the request is routed through his branch.. Challan Copy of renewal few paid.C. N. Before issue EForm it is ensured that the exporter has tendered the attested photocopies of required documents e. The set of E-Form after completion of all formalities is then entered in the E-Form issuance register and acknowledgement is obtained from the exporter or any authorized person of the exporter.Internship Report Bank Askari Commercial Maintenance of Record of E-Form: The Stock of E form is provided by the authorized dealers Head Office to the Exchange dealing branches and the proper record is maintained in the E-form Stock Register the dealing branches maintained two registers one for the purpose of issuance of 'E' form and the other for certification of E-Form.

Stale Bank of Pakistan permission is also required to be obtained. C+F. . III) IV) V) Value of the: invoice mentioning the currency. Income Tax Circle. It terms is of usance are beyond i20 days. Signatures of the exporters or his authorized signatory are duly verified at the counters.g. firm contract or consignment safe. 3. Israel. Terms of payment e. C1F or FOB. 52 . against Letter of Credit.g. VI) Term of sale e. I) II) Name and complete address of the exporter along with Telephone number. Export registration number is correctly mentioned on the E-Form 2. E-Form should be correctly and properly filled in withiest any overwriting unauthentic corrections etc. The following columns should be properly filled a) NTR NUMBER. Item of export showing quantity and that it is not a banned item. Whether on sight basis or on usance basis.Internship Report Bank Askari Commercial of E-Form is presented for certification the same is very minutely scrutinized and following details are checked 1. NIC number with dale and place of issue. and CCI & E Register number and date. Country of export (destination) to ensure that the country where export is made is not a restricted one e.g.

For such payments which is required to be produced at the time of presentation of documents for negotiation. Bank / branch stamp is filled beneath the duly certified are delivered to the exporter or his authorized person. CERTIFICATION After certifying the correctness of the E-' Form certification register in the folio allocated to each exporter separately. Advance payment voucher.Internship Report Bank Askari Commercial i) j) Mode of transportation. Name and address of the foreign buyer (Importer). A proceed certificate is issued to the exporter. Submission of 'E* Form: After certification of 'E' form all the four copies are submitted by the exporter along with shipping bill to (he customs authorities for clearance (^'consignment. Advance Payment Sometimes the exporter may receive the payment for the item to be exported in advance without waiting for documents in such a case the advance payment received for this purpose is required to be declared by the exporter on the prescribed form. Advance payment is certified on the reverse side of ‘E’ from under the seal and signatures of the authorized dealer which is required for reporting to the state bank of Pakistan. Three copies of ‘E' form are returned by 53 .

the matter is reported to State Bank of Pakistan. Cancellation of form ‘E’ ‘E’ form is canceled is 2 ways. If goods are not exported and ‘E’ form is not presented to the customs the authorities. In case the exporter does not respond to the requests. the same is surrendered to the cancellation which is recorded in the separate file duly marked ‘canceled’. 1. 2. Utilization of ‘E’ Form ‘E’ form should invariably be utilized and received within 21 days from the date of certification for 14 days from the date of shipment failing which the exporter is persuaded to submit without further delay.Internship Report Bank Askari Commercial the custom authorities retaining the original after endorsement of shipment on relative portion on 'E' form. The bank retains the quadruplicate copy for its record while the duplicate coy is surrendered to State Bank of Pakistan or realization proceeds. the exporter 54 . If ‘E’ form has been tendered to customers authorities but the goods could not be shipped due to non – availability of space in shop or due to any other reason. The duplicate copies retained by the exporter while the duplicate and triplicate copies are submitted to the authorized dealers along with other documents for negotiation within 14 days from the date of shipment.

Step 3. The exporter ships goods to the importer’s country. Step 2. Exporter and importer conclude sales contract. COLLECTION MECHANISM Sales Contract Goods Proceeds Credit to exporter’s a/c REMITTING BANK Documents Bill paid/ acceptance and paid IMPORTER Bill Presented EXPORTER Documents Proceeds Remitted COLLECTIONG BANK Collection Mechanism Step by Step Step 1.Internship Report Bank Askari Commercial is required to submit three copes of ‘E’ form along with original. The exporter through a covering letter and lodgment form forwards his bill of exchange along with the 55 . Collection mechanism explained diagrammatically. Shut out notice duly stamped and certified by customs to the bank. The bank submits all the three copies along with shut out notice to the state bank of Pakistan under a covering letter for cancellation and record at their end.

Step 6. The remitting bank credits the proceeds to the exporter’s account. under cover of its collection schedule called the COLLECTION BANK. Step 5. The collecting bank remits proceeds to the remitting bank. 56 . Step 4. as the case may be. The importer pays the sight bill o9r accepts if it is a usance bill.Internship Report Bank Askari Commercial supporting commercial and transport documents to the remitting bank. Step 9. The collecting bank (or the presenting bank if it is other than the collecting bank) presents the accepted bill to the drawee (importer) on the maturity of the bill for making payment. The collecting bank if it is not the importer’s bank will forward the documents to the importer’s bank for presenting them to the importer of payment or acceptance of the bill of exchange. Step 7. The remitting bank forwards the documents to its branch or correspondent bank in the importer’s country called COLLECTING BANK. Step 8.

Incharge of the department is Mr. Types of Advances.Internship Report Bank Askari Commercial IMPORT  Opening the letter of credit  For issuing the L/C bank requires sufficient funds in the account of importer. Shaukat Babar. Account to UCP 500 and extending the credit facility to the importer informs FIM (finance against imported merchandise) FATR (finance against trust receipt). securities necessary for fulfilling the requirements which are necessary. i) ii) funded advances non funded advances 57 . for extending advances.  Scrutinize the documents receive from flowing bank under letter of credit. companies etc.  Arrange forward cover booking regarding import payments  Also arrange forward cover booking for letter of credit open other then ACBL  Submission of monthly returns to SBP regarding the import on form I CREDIT DEPARTMENT Credit department deals with the extension of advances to individuals. basic function of credit department is to extend advances by checking carefully all the documents.

Term Finance Clean Secured 58 . two year. Funded Advances Term Finance Revolving Facility Term Finance. and three year. May be of one year. House building finance is including in term finance. Main features of term finance are i) It is for proper time period. ii) Account will be debited only once adjustments are possible further but account will be debited only once.Internship Report Bank Askari Commercial Funded Advances Funded advances are those advances in which funds of banks are involved.

letter of guarantee. Cash Finance. Types of Revolving Facility. Revolving Facilities. It is extended the business community and Govt. These funds are extended against personal guarantee for salaries people. L/G. Clean Finance. Running Finance. Documents Required. demand promissory note. Financing against Govt. salaries personal. securities i. Documents Required. LC of Govt. enterprises. Cash finance against tangible securities. defense saving certificate. i) ii) Running finance Cash finance. price bonds. 59 .Internship Report Bank Askari Commercial Secured Finance.e. L/C. Proper limit is facility is called summing.

Internship Report Bank Askari Commercial Non Funded Advances. L/C. L/G. Non funded advances in which bank funds are not involved e. Credits policies & contract guidelines  Directors determine the commercial credit activity of ACBL  Delegation of authority to credit committee Policies are as follows  Credit principles  Credit portfolio limits  Credit approval  Credit administration  Credit monitoring Objectives  Provision of suitable credit services and products  extension of credit is out compromising the rules and regulations Performance The advancement shall focus on the development enhancement of customer relationship 60 .g.

Exposure against none funds based facilities.  Total facilities They must confirm it to the regulatory requirements.  Financing against shares 61 .  Unsecured facilities Similarly the aggregate of all advances to a single person should not exceed the guideline.Internship Report Bank Askari Commercial Administration Administration should insure compliance that is all laws and regulations of regulatory authorities loans / facilities and related security shall be closely and regularly monitored and reviewed at the branch level. The aggregate of contingent or non-funds based facilities should not exceed ten times paid up capital and open all resources.  Term facilities Aggregate term facilities in excess of one year should not exceed 30% of the total credit portfolio  Exposure to customer group Credit facilities extended any one or group must not exceed the guidelines currently inforce by the regulatory authorities. By a separate unit unconnected it credit approval.

 Conditions Borrowers liquidity ratio.  Credit reviews All limits shall be subject to at least an annual review.  Credit risk assessment  Prevention of criminal use of banking channels. Credit will be extended in accordance to the authority levels.Internship Report Bank Askari Commercial Unsecured credit facilities will not be extended towards floatation of share capital listed companies. The debt to equity ratio should not exceed 60:40. Efforts should be made to determine the true identity of a customer and in case of cash transactions the source of funds is established. The primary individual factor determining the quality of the bank’s credit portfolio is the ability of each individual authority. Approved by the BOD from time to time. Credit Approval.  Credit administrations The principle amount of credit add are as follows • Credit approval • Credit file maintenance 62 . The current ratio of the borrowers must be equal to or less then one.

Internship Report Bank Askari Commercial • Facilities evidence  Credit monitoring and review  Bank ACBL  Capital funds  Credit facilities / extensions It means granting of financial accommodation or considerations to a customer.  Credit committee Head office credit committee only 63 . For example advance allowed against stock in trade. hypothecation. which incur the back in monitory loss in the case of non payment or non performance by the customer.  Security is often an additional security over & above the assets.  Secured Advances Pledges. charges or mortgages on tangible readily realizable assets.  Unsecured / clean Which are not covered by any tangible security.

Guided by three basic principles of profitability. He has to float his shares to the public or knock the doors of financial institutions. Principles of Lending Apart from the instructions and directives sent by the state Bank of Pakistan. and dispersal. The most easy way to make fund available to seek assistance by such agencies including Banks which have got surplus funds and will to come to the assistance of producing units. Actually it is very difficult for the modem businessman to run his business on a huge scale solely. we cannot neglect the second factor profit orientation while running the credit business.Internship Report Bank Askari Commercial Objectives of Lending In the modem economics. Ltd. Muslim commercial Bank. This is the primary factor which toads towards lending of money by Banks. and exchanging units. for example Bank. more than 90% business concern raises their funds from various financial institutions to meet their multifold transaction. and distributing units. No doubt. 64 . safety. the single way for the bank to earn profit lies in lending money to the customer on comparatively higher rate to mark-up that it gives to the depositors.

it must therefore. Liquidity and Disposal In its simple definition liquidity means the easy convertibility of an asset into cash. it is rather different. payment of profit to depositors. salaries of the staff. So bank will prefer to lend at lower rates than to risk his money for higher rates. For making his advances safe.Internship Report Bank Askari Commercial 1. Bank advances are made in such a 65 . Safety also employs the borrower's ability to reply without difficulty. No one will take a risk of losing the principle in order to earn profit. ltd. Safety does not necessarily means the taking of security. Another aspect of safety is the lenders legal right to claim repayment from the borrower. It would be wise. Safety Safety principle is very important. not to lend however. 2. Profitability The management of Muslim Commercial Bank. earn profit. 3. other variable expenditure and to provide a fair return to the share holders. a bank select his borrowers cautiously. But when we speak of liquidity in relation to advances. Bank has to spend huge amounts on establishment. Is very careful to seek advances where advances can generate a higher return. It means the adjustment of advances at a short notices. good the security be if it is clear that it will have to be realized for clearance the debt.

stick up by single or few borrowers. outlining the manner in which a proposal should be put forward for consideration. it affects the proposal as a whole. Dispersing the advances in reasonable amount over a large number and types of borrower is necessary to avoid bid debt. S and 3P's. making it appear weak or inconvenience. Selection of Borrowers The selection of a reasonable and trustworthy borrower is complicated and at the same time very sensitive task which requires decision-making power from the bank employees. To assist the Branch manager in this test. bank provides a performed. it is therefore. which are considered before lending: 66 . It is therefore. 'Bank do not through money away but every application is tested carefully before being sanctioned. Following are 6'C. necessary for credit officers to see that all relevant questions following are. In the words of the manager of a branch of Muslim Commercial Bank. If any specific information that is required is not mention. Ltd. "Good selection of borrowers does the half task in the profit of the Bank. as far as possible completely and exhaustively answered. necessary to advance moderate sums to a large number of customer engaged in different types of industries.Internship Report Bank Askari Commercial manner that they are repaid in reasonable period so that the bank can make new advances.

persons who can be relied upon as regards details of their proposal as will as promise of repayment? What is their reputation in the market place for meeting their commitments in respect to prices & delivers to purchasers and timely payment to their trade creditors? Confidential and tactful inquiries from wholesalers. for the bank shall be entering into a contract with him involving the financing of his business. in the particular line of business for which the finance is required. Do they have the necessary management. along with our share of the profits? This ability can be judge from the trading results. common and business senses to make sure that the other party to this contract will live up to his obligations. A study of the company's audited financial statements for the past few years would real whether 67 . 2. so that repayment is possible. It is. which is seeking finance. therefore.Internship Report Bank Askari Commercial 1. contributes significantly to the safety of the advances. Character The bank get to know the customer we!! and be able to judge his intentions. this factor. to utilize the advance productively and profitably. suppliers and other bankers are necessary to obtain this essential information. Particularly adverse circumstances. accounting and technical skills? And the degree of experience. Are the partners or directors of the business unit. Capacity This factor relates to the ability of the borrower to manage his business successfully. as it relates to the willingness to repay under all circumstances. therefore.

Internship Report Bank Askari Commercial sales have deep growing. Would 68 . as it sometimes has led to speculative uses of the surplus. 3. bank advances must. As commercial banks. The efficiency of the management can be Judge from the turn-over ratios. be largely confirmed to provide short" term finances to business customer. Cash Flow The source of repayment should be ascertained at the beginning. the trends of gross & net profit margins indicate the profitability or other wise of the business. 4. Under the circumstances. If the amount describe to be borrowed is too large. Hence financing the current assets of traders and manufactures. Is the amount required in proportion to the borrower's capital and contribution to the project? Is it within the powers of the borrower? In the case of a corporate customer. can it be sagely reduced to an acceptable & practicable level? Past experience has taught bank that it is unwise to lend more than is actually required. Similarly. collection of receivable and management of accounts payable. a check on the memorandum & articles of association is necessary to ensure it is within prescribed limits. is the next point to receive the branch manager's attention. stagnating or declining or declining. Capital The proportion of the borrower's own resources to the amount of finance is requested.

Accordingly to nature and prospects of the customers' business need to examine will it continue to prosper.the business. to examine the conditions which the firm is operating.Internship Report Bank Askari Commercial ensure that repayment would normally come from the sale of inventory and the realization of account receivable of our customers. Conditions From quantitative and qualitative information the bank need. at a satisfactory profit. Therefore. If we are confident of the customer's ability to buy the right materials. in a wide market with continued demand? The industry conditions and the firm's place in industry and its market share need to be examined demand? The industry conditions and the firm's place in the industry and its market share need to be examined. at right markets and be able to produce finished goods which can be readily sold. 5. or will additional competitors or new competitors with the latest technology result in reduced profit margins? Is the product essentially required. This requires identification of the factors that have up to now contributed to the success of . cash flow statements and profit projections need to be submitted by the borrower and carefully evaluated by the credit officers. and to Examine factors change has recently occurred or is likely to occur in the near future which will adversely affect the profitability and prospects of the customs. there should be no doubt about repayment. An important quality here is the management's 69 .

therefore. in case of nee. which it has. In case the business plans of the borrower. Purpose Credit resources are scarce but have alternate uses.e. received form depositors. It is the final safe and credit officer should be able to identify appropriate assets.Internship Report Bank Askari Commercial tendency to look and think ahead to anticipate and adapt to change by diversification or otherwise. Finally security be obtained & formalities completed before the finances is disbursed. The qualities which constitutes a good banking security are transferability i. taken as a form of insurance. which will instill confidence in the banker. the bank must ensure that there is a second way out. it is necessary to maintain & update at the time of renewing the advances. in the given circumstances. 7. whether a valid charge should be created by the borrower over his asset in favor of the bank should be such that the bank can obtain a good title with minimum formality and expense. 6. Collateral Since the bank is lending money. which would most suitably serve as security. It should be easily realized. Its value should be easily ascertainable and stable.The unity's needs demand that banks put them to the best possible for which 70 . Security is. due to circumstances or developments beyond his control. For this purpose. do not work out.

they're in need to ensure mat the purpose is conductive & within the borrower's normal sphere of business activities and scale operations. Ali Gardezi deals this department. Period Short-term advances are favored that is for not more than a year.asset financing need industrial customers.Internship Report Bank Askari Commercial the finance will be used. for the fixed. CREDIT CARD DEPARTMENT Mr. 71 . Credit card is also called Plastic Money. Being a developing country. 8. if still justified. One for the existing customers and other for new customers. and seasonal loans for agricultural purposes. EBI do grant medium-term loans but to a limited extent. Accordingly the most usual purpose is to assist manufacturing and trading customers in their need to purchase current assets in line with their production or trading cycle. renewable each year. credit control and exchange control requirements. There are two procedures for issuing credit cards. within the credit policy the bank? In conformity with the country's laws. In modern world it is modern mode of money transaction because it is easy to carry. Is it a desirable one from the economic and banking viewpoint? Is it for productive of emulate purpose? In short.

Internship Report Bank Askari Commercial PROCEDURE FOR ISSUANCE OF CREDIT CARD. 1. Letter of Lien. Three Photographs Hypothecation agreement Prove of income. First is City Bank and second is Bank of America. National ID Card Statement of Accounts of last 3 months. ACBL takes master card from city bank and then issue to the customer. e. 4. American companies are Visa Card and Master Card. master cards certain limit is mentioned. They have to sent their credit cards. h. 3. Customer Guarantee. they have given the authority of master cards to two banks. ACBL takes the yearly fee. City Bank has the authority for the master cards for applying credit cards. credit sale fee for issuance of the card. ACBL also pays certain percentage to City Bank. 2. c. b. 72 . Letter of set off. g. j. f. ACBL has the facility of master card only. i. Direct Debt Authority Latest Financials of the Company. interest fee. d. late payment fee. Essential documents are obtained from the customer which are: a. ACBL has the agreement with City Bank.

Internship Report Bank

Askari Commercial

ASKARI MASTER CARDS.
1. ACBL is incorporated under the companies ordinance 1984. Card means applicable master card, visa card issue by the bank to the account holder. But ACBL is issuing only master cards. 2. 3. 4. 5. Card center means credit division which is in Rawalpindi. Card holder means primary card applicant. Card account means master card and visa card accounts opened by the bank for the purpose entering debt. Credit advances means an include any amount sanctioned and advance by the bank. On the request of card holder the determination of such cash advance shall however be at the discretion of the bank. 6. Credit limit means the maximum limit permitted by the bank on the card account for the applicable card. In ACBL limit is for 40 days and after 40 days the card holder must have to pay 10% of the total expenditures. 5 days are grace period. He told me that the bank is authorized to issue the credit card of two companies, which are under bank of America.  Master Card  Visa Card But due unavailability of visa card machine in Multan, ACBL Multan branch deals n only Master Card. There are following types of master card.
73

Internship Report Bank

Askari Commercial

 Silver card  Gold card These are different due to their credit amount limit. For example for silver card, cardholder can take the maximum amount ranging between Rs. 30,000 to Rs, 200,000. For gold cardholder this limit has been extended to Rs. 300,000.

ISSUING CHARGES
When the card is given to cardholder, there are certain fee charges to by the bank, which is different for different cards.  Local cardholder is charged Rs. 1200 but if the cardholder is Army officer there is special discount for him. And he is special charged Rs. 750.  Silver cardholder is charged Rs. 2500.  Gold cardholder is charged Rs. 3500.

ISSUING PROCEDURE
Credit card is issued to three types of parties.  Professional (Govt & private officers)  Business man  Landlord.

PROFESSIONALS
For professionals bank require  Authorized letter from the concerned organization in which he works. This letter shows all particulars about the person,

74

Internship Report Bank

Askari Commercial

on the basis of these particulars; bank open on account and some feasible amount is required.

BUSINESS MAN
In the case of businessman bank need  Balance sheet of businessman.  Type of business.  Turnover of 5 years. And then when it is sured that the business has the ability to cover the expenses of credit card and to pay it at any time, the bank issues the credit card.

75

so. the bank avoids issuing credit card to that person. For this bank need an account having the amount over and above the credit card limit of that credit card. PAYMENT PROCEDURE The cardholder should have to pay all the amounts what he has consumed. 76 . the person is totally new. and the bank doesn’t know anything about him. If that 5% is not paid then Rs. But in order to facilitate the cardholder.Internship Report Bank Askari Commercial Land Lord In the case. If you paid only 5% then 2% interests will be charged on remaining amount and it is added into the next month payments. there is more chance of default in this case. 5% is the minimum limit that the bank requires and that should be paid monthly. 100 are the additional charges charged to the next month payment apart form the 2% interest. Usually.

Internship Report Bank Askari Commercial TODAY’S POSITION OF BANK 77 .

 The bank is now over staff. So the bank should provide clean and on the merit basis promotion system.Internship Report Bank Askari Commercial RECOMMENDATION During my internship. what I feel should be there are:  Human Resources Department should be there in order to motivate and trained the employees. The building under operation is in adequate for such a large staff. I have noted some dissatisfaction among the employees. due to in efficient promoting system. So the building should be extended LATTER 78 .

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