Atlas Bank Internship Report - Faizaan Khan

Faizan Safdar
Registration No.
CIIT/SP09-BBA-037/LHR
Comsats Institute of Information

Technology.
M.A. Jinnah Campus, Lahore
Internship Report
Atlas Bank Limited

(P-12 Kotwali Road, Faisalabad)
3rd August to 12th September
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Atlas Bank Limited Internship Report
ONE BANK, ONE TEAM, ONE SPIRIT
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“In the name of Allah, the most beneficent, the most Merciful”
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ACKNOWLEDGEMENT
All the praise is for Allah, the most merciful and beneficent, who blessed me
with the knowledge, gave me the courage and allowed me to accomplish this
task. I am especially indebted to all my teachers for instilling in me enough
knowledge to be able to carry myself efficiently during my internship.
Secondly, I am bound to thank all the staff of Atlas bank Limited. In
particular, I am grateful to Mr. Ajmal Sheikh (Area Manager), Mr. Abdul-
Rauf Anjum (Branch Manager), Mr. Gulam Mustafa (Operation Manager),
Mr. Manzoor Ahmad (Customer service Manager), Mr. Arshad Bhatti, Mr.
Usman Arshad, Mr. Hammad Abid, Mr. Ali Raza and Mr. Shahzada Adnan.
Their inspiring guidance, remarkable suggestions, constant encouragement,
keen interest, constructive criticism and friendly discussion helped me to
learn and enabled me to complete this report efficiently.
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DEDICATION
I dedicate this report to my parents and friends in recognition of their worth

and to my teachers who are the guiding force for me and it is their effort and
hard work that showed me the path of success and prosperity which would
be there for me for the rest of my life. My regards to all those who have
generously contributed their theoretical knowledge for this report including
my teachers. Without their indulgence and support, completion of this work
would not have been possible.
“Keep your dreams alive. Understand to achieve anything requires faith and
belief in yourself, vision, hard work, determination, and dedication.
Remember all things are possible for those who believe.”- Merlin Olsen
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Prologue
Banking sector owes a pivotal importance in the economy of

any country through its vibrant functions. This is the deep
seated motivator that geared up me to join any bank for
internship. Moreover, the practice and familiarity learned
during this tenure would also attest very helpful and alleviating
in the awaiting proficient life.
This report is an upshot of my six weeks internship in Atlas

Bank Limited, Kotwali Road, Opposite Shell Pump Faisalabad
– Pakistan. Atlas Bank Limited Bank posses an imperative
importance in the banking sector of Pakistan. It always
endows with great covenant of rally round in terms of funds
and services at all epochs of its dynamism.
Although, a derisory period of six weeks is not enough to learn

the complex operations of Atlas Bank Limited, yet I made
industrious efforts to converse them comprehensively in this
report. Particularly, I have remunerated more accents on study
of distinguishing features and services of Atlas Bank Limited. I
have made maximum venture to elaborate this report with the
material read, listened and observed.
I have strong belief that this report will guide and ease the
readers to understand the operations of banking system and
more prominently have good knowledge about Atlas Bank
Limited, one of the most trusty and leading banks in Pakistan.
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Table of Content
Chapters Page
No.
Progress Through Transparency .…………………………………….… 01

Vision, Mission, Core Values …….……………………………………… 02
Overall Strategic Objectives ……….……………………………………. 03
Background And Environment ……….………………………………….. 04

What Is Bank? ………………………….……………………………........ 06
Types of banks …………………………………………………………….. 07
Service & Quality Department .………………………………………… 09

Tasks & Functions………………………………………………………… . 09
Test Calls……………………………………………………………….……. 10
Mystery Shopper………………………………………………………...... . 10
Customer service Department………….……………………………….. 12

Cash officers …………………………………………...…………………. 12
Receipt counter ……………………………………………………….…….. 12
Payment Counter…………………………………………………………….. 13
Cheque encashment procedure ………………..…………………………. 13
Additional tasks of CO …………..…………………………………………. 15
Customer service Manager ……………………………..…………………. 15
Types of Cheques……………………………………………………………. 16
Sales & Distribution

Department………………………………….………. ……………………… 18
Types of Accounts………………………………………………………...... 18
Saving plans....………..……………………………………………………… 21
How to open an Account?…………………………………………………… 24
Account Opening Form………………………………………………........... 24
Kinds of Accounts………………………………………………………....…. 29
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What is Sale?……………………………………………………………….. 34
Personal Lockers……………………………………………………….. … 34
Term
Deposit……………………………………………………………………… 35
Indicative profit rates on Term Deposit of Local
Currency…………………………………………………………………….. 36
Indicative profit rates on Savings Deposit of Foreign
Currency……………………………………………………………………… 38
Indicative profit rates on Term Deposit of Foreign
Currency…………………………………………………………………….... 38
Conditions for Closing an Account………………………………………… 39
Operation Department………..………………………………………….... 40
Operation Manager (OM)…………………………………………….... ...... 40
Operation Officer (OO………………………………………………............ 40
CBC………………………………………………………………....……….... 41
Remittance ……………………………………………………....………....... 41
Kinds of Remittance………...…………………………………..………....... 42
Cheque Clearing……………………………………………....…................. 44
NIFT………………………………………………………………....………....
. 46
Stamps used In Clearing .....………………………………………………... 48
Transfer of funds to Banks in foreign countries.…………………………. 49
Foreign Exchange Department ……………………………………….. 51
TRADE………………………………………………………………………… 51
Sales Contract (Performa Invoice)…………………………………………. 52
L.C (Letter of Credit) …………………………………………………….... .. 52
Types of L.C………………………………………………………………..… 53
Advising Letter…………………………………………………………….... . 54
Intermediatory Banks………………………………………………………… 54
Shipment Process………………………………………………………….… 54
Bill of Lading: ……………………………………………………………….... 54
Shipment Documents …………………………………………………...….. 55
FINANCE………………………………………………………………………. 57
Exporters Refinance (ERF) Scheme……………………………………..... 57
FAPC I (Finance Against Packing Credit I )…...……………………........ 58
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How Bank Process FAPC I?………………………………………………... 59
FAPC II (Finance Against Packing Credit II) ………………………….… 60
Foreign Exchange Return ………….………………………………………. 61
Credit Department …………….………………………………………….... 63

Evaluation of Client.…………….………………………………………….... 63
Various types of Credit products, Nature of advances ………..……….... 65
Processing of a credit line proposal form.………..………………............. 65
Primary Evaluation of Credit Proposal…..……………………………….... 65
Principle of Lending ...………….………………………………………….... 67
Five C’s Of Credit .…..………….………………………………………….... 67
Forms of Lending ...…………….………………………………………….... 69
Documents required for loan.……….…………………………………….... 71
Creation of Charges ………..……….…………………………………….... 71
Monitoring/renewal of credit facility…….……………………………..….... 72
Application of Mark-up ….……….………………………………………...... 72
Shipping Gurantee ……….……….……………………………………....... 73
How do bank earn money? ..………………………………………….….… 73
I.T Department ……………..………………………………………….….… 75

Conclusion …………………………….…………………………………… 77
Recommendation……….…………….……………………………………… 79
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Background and Environment
Envisioned to operate as a progressive and dynamic banking entity, Atlas

Bank today stands as a firm reality with a futuristic approach to help manage
personal and commercial finances with ease and convenience.
Atlas Bank, having a futuristic approach, is positioned to improvise with the

changing trends of the modern day financial market. Operating through a
growing network of branches across Pakistan, the entire retail network is
real-time online, providing banking convenience, especially for those on the
move. Enjoying the privilege of having diverse groups as its valued
customers, Atlas Bank serves through its strong network of branches, backed
by advanced computerized and control system, positioning its priorities in
accordance with the needs, convenience and satisfaction of its customers and
stakeholders.
From a diverse four decades of excellence, to a dynamic group geared to

provide customers with state-of-art innovation solutions, this is the heritage
of Atlas Group. Their presence in engineering, manufacturing, power,
trading and financial services equips them to serve you better in numerous
dimensions under the Atlas umbrella.
'With equity of over Rs.3.41 billion and assets base of over Rs.30.40 billion,
Atlas Bank is determined to expand within and contribute aggressively to the
growing economy of Pakistan and its flourishing banking sector. To stand
out in the market through competitive positioning as its prime objective,
Atlas Bank is always be committed to deliver consistent quality services and
customer satisfaction.
Atlas Bank Limited is supported by the trusted equity of Atlas Group, a

leading manufacturing, financial services and trading group that has been at
the forefront of country’s economic development since 1962. With a long-
term credit rating of A- and a short-term credit rating of A2 by PACRA,
Atlas Bank began its journey back in year 1990, when Atlas Group and
Bank of Tokyo Mitsubishi Limited entered a joint venture as Atlas
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Investment Bank Limited. In 2002, Atlas Lease was subsequently merged
with Atlas Investment Bank.
In 2005, the group acquired Dawood Bank Limited and merged it with Atlas
Investment Bank to form Atlas Bank limited. In present, Atlas Bank is now
operating as a full commercial bank.
Owing to Atlas Group’s strong credibility and progressive business outlook,

Deutsche Investitions (DEG), one of the largest European financial
institutions, has recently entered into an equity participation arrangement
with Atlas.
DEG has been financing and structuring the investment of private enterprise
in developing countries for more than 40 years. The agreement will enable
DEG to become a minority shareholder with a 24.9 per cent stake and a seat
on the bank’s Board. For DEG, this is the first equity investment in a
commercial bank in Pakistan.
Under the new management team, Atlas bank is fast transforming into a
dynamic institution committed to providing maximum convenience and
innovation financial solutions to growing customer based.
Today Atlas Bank is expanding its network in every corner of the country; it
is due to successful management and team spirit of Atlas Bank that in a very
short time they have their 40 branches in 17 cities nationwide.
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What is Bank?
It has not so far been decided as to how the word ‘Bank’ originated. Some
authors opine that this word is derived from the words ‘Bancus’ or Banque’
which mean a bench. Other authorities hold the opinion that the word ‘Bank’
is derived from the German word ‘Back’, which means ‘joint stock fund’’. It
is therefore, not possible to decide as to which of the opinion is correct, for
no record is available to ascertain the validity of any of the opinions
The term bank is being used for a long time yet it has no precise definition.
The basic reason is that the banks perform not just one but many types of
functions originally the banks were supposed to make short term loans to the
traders only. The banks now not only make short term loans to the formers,
traders, industrialist etc. But also invest in a wide variety of long term
earning assets.
The commercial banks also undertake and execute trust, deal in stock, shares
and debentures, issue guaranties and indemnities underwrite and sell new
securities, and deal in foreign exchange etc.
Banking industry acts as life-blood of modern trade and commerce acting as

a bridge to provide a major source of financial intermediation.
However some of the definitions of bank from different authors are as

follows.
Depository financial institution: a financial institution that accepts deposits

and channels the money into lending activities; "he cashed a check at the
bank"; "that bank holds the mortgage on my home"
According to Dr. Hart
“Banker or bank is a person or company carrying on business of receiving

money and collecting drafts for the customers subject to the obligation of
honouring cheques drawn upon them from time to time by customers to the
extends of the amounts available on their currents accounts”
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“A banker is a dealer in capital or more properly a dealer in money. He is an
intermediate party between the borrower and lender. He borrows one party
and lends to the another” --- G W Gilbert
Types of Banks
 Central Bank or State Bank

 Commercial Bank
 Exchange Bank
 Industrial Bank
 Agriculture Bank
 Investment Bank
 Saving Bank.
CENTRAL BANK: Every country has its central bank or state bank. Its
major function is to carry out a country’s monetary policy with an aim to
safeguard its financial and economic stability. It has the monopoly of note
issue. It is also the custodian of money market. State bank is the Banks bank
and lender to the government.
COMMERCIAL BANK: Commercial banks are profit earning concerns.

They receive deposits and advance loans to the borrows. They greatly help
in financing for internal and external trade of the country.
EXCHANGE BANK: The main function of the exchange bank is to finance

the foreign trade by the purchase and sale of foreign currencies in the form
of drafts, bills of exchange, telegraphic transfers. They also perform the
function of commercial bank. Receiving deposits and advancing loans.
INDUSTRIAL BANKS: Commercial bank cannot afford to block their

funds in long term investments. The industrial banks receive long term
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deposits and finance the industries by providing them long term credits. In
Pakistan the Industrial bank named as Industrial Development Bank of
Pakistan (I.D.B.P) was established in 1961 for this purpose.
AGRICULTURAL BANK: Agricultural bank provides short and long

period loans for financing agriculture. The agriculturists need short and long
term loans for meeting their day to day and long term requirements for
making permanent improvement in the land. In Pakistan Agricultural Bank
is named as Agricultural Development bank of Pakistan (A.D.B.P) and it
was established in 1961.
INVESTMENT BANK: The main function of investment bank the

merchandising of shares and other securities, managing and distributing the
issue of shares and other securities.
SAVING BANKS: These are the institutions which are sponsored by the
government for having facilities to the people and small means. These bank
collect small saving of people and allow them to withdraw in small amounts.
Also another institution i.e. National Savings is working in the same
capacity.
I have been in different areas of the Atlas Bank Limited, Faisalabad for six
weeks where I learnt about various operations in different departments.
Departments in which I spent my six weeks are
 Service & Quality Department

 Business Development Department
 Customer Service Department
 Operations Department
 Trade & Finance Department
 Credit Department
 IT Department
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Service & Quality
Department
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Service & Quality Department
When we enter the bank, first thing we notice is clean atmosphere and
quality of services by the bank. Customers always demands for good attitude
and a warm welcome by bank staff. Atlas Bank always welcome their
customers whole heartedly and ensure quality of service and a warm
welcome which made them feel just like they are in their family.
Tasks & Functions
I spend four days of my internship in Service & Quality Department of Atlas

Bank with Mr. Shahzada Adnan. I came to know that in this department
there are two officers which at the same time perform as Receptionist and
Telephone Operator. They have following functions to perform. I’ve learnt
about how to:-
 Welcome the customers on the reception and provide them with every
single information they need.
 Direct them to the respective officers.
 Ensure good service to the customers by cash counter.
 Receive Incoming calls and provide customer with full details of the
product they ask for.
 Transfer Incoming calls to the officers in the bank.
 Receive all kind of telephonic messages and pass them to respective
officers and employee of the bank.
 Make calls to different customers for any kind of notification or to
other branches. of the bank or to other banks as required by bank for
various reasons.
 Write & and receive e-mails on the behalf of bank.
 Send and receive mails and keep record of inward and outward mails.
 Also works as an office administrator.
 Maintenance cleanliness in office.
 Internal services maintenance.
 Collect feedback from customers and make improvements in services
keeping in front the suggestion and feedback of customers.
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Atlas Bank always trying to improve their Service and Quality Department
and for this reason, they test their employees through two ways
1. Mystery Shopper
2. Test Calls
Test Calls:
In this test an officer assigned for taking test make a sudden call to
the bank without informing them and act as a customer. He/she ask several
questions about the products and other question about bank services and
notice following thing about the telephone operator
o Tone of voice
o Courtesy
o Information provided
o Awareness with the products and services
After the call he/she evaluate the marks of the operator and send it to the
operator at the end of the month.
Mystery Shopper:
Just like test calls a mysterious person who is from head office
of the Atlas Bank and is completely unknown for any employee of the
particular branch came to the bank and go to various departments and ask
various questions from bank staff as a customer and carefully take notice of
each and everything about the atmosphere and staff behaviour with
customers. He/ she then evaluate marks and make report about the ethical
performance of the bank staff and send it to that bank branch along with
comments and suggestion for improvements.
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Customer Service
Department
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Customer Service Department
(CASH DEPATMENT)
The cash department is the most important department of the bank. It

receives cash from customers and then deposits it into the accounts of the
customers and maintained their balances.
In Fsd branch of Atlas Bank Limited from where I am completing my

internship, I remained under the kind guidance of the Mr. Manzoor Ahmed,
Manager of customer service department (CSD) for seven days. Under his
kind guidance I learnt about all the functions performed in CSD. According
to what I’ve learnt this department, the officers in this department are called
Teller or Customer service officers. In Atlas Bank Faisalabad, there were
o Three COs (Cash officers).

o One CM (Cash Manager)
This department involves in two activates:-
1. Deposit cash in customer’s account
2. Make payments from customer’s account
COs (Cash officers):

They control the main counters of the bank. There are
three counters in every Bank, one for Receipts and two for Payments.
Receipt Counter:
The officer at the receipt counter deals with all kind of utility
bills as Atlas Bank Limited accept bills payment from the year 2008
including gas bills by Sui Northern Gas, FESCO, PTCL and other bills. This
makes Atlas Bank Limited one of the banks in Pakistan that accept utility
bill payments.
The CSO receives the bill, check its due date, collect payment, and make
entries in to the system through computer in the accounts of PTCL, FESCO
and SUI NORTHERN GAS. Stamp them to be received and keep it as a
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record and return a part of the stamped bill to the customer as a customer
copy for proof of customer that bill is paid to the bank.
At the end of the working day he/she counts all the cash check it to make
sure it is accurate according to the entries in the computer. Separate each
kind of currency note to make its bundles. They make report of their all day
entries, and after verification from CSM they keep it into their record and
also send a copy of this report to that particular company whose entries they
made in the system.
Payment Counter:
The officer at the payment counter has a main role in
payments. He/she deals with all kinds of cheque receiving and payment of
cheques. Cash officer perform following functions.
Deposit Cash In Customer’s Account:
When the customer want to deposit amount in his account at opening of

account or after that then he has to fill a deposit slip that shows the amount
and the account in which the cash will be deposited. Then teller will receive
amount and credit the customer’s account that shows increase in customer’s
bank account.
Make Payments From Customer’s Account:
When the customer draws a cheque on the bank to pay a

certain amount then teller will debit the customer’s account that shows
reduction in his account balance.
After receiving cheque the Cash officer follows the following process for
cheque encashment
Cheque encashment procedure:

Cheque Encashment are made in four steps, these are :
1. Receiving Of Cheques
2. Verification Of Signature
3. Computer Terminal Process
4. Payment Of Cash
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Receiving Of Cheques:
The cash is paid against the cheque of the client. The following points are
important.
 Cheque is drawn on ABK

 Cheque is not post dated.
 Amount in words and figure are same.
 It should be a bearer cheque so the word bearer should not cross.
Verification Of Signature:
After receiving the cheque the cheque the officer verify the signature of the
account holder and the signature on the cheque. If the signature is not same
it is returned back otherwise forward to computer terminal.
Computer Terminal Process:
The cheque is received in computer terminal, where the computer operator

checks the balance of the account holder. The operator also sees the stop
payment instructions are received from account holder or not. After
considering these points computer operator post the cheque in account
holder ledger and returned back to the officer.
Payment Of Cash:
After posting the cheque the officer cancelled the cheque and returned back
to cashier. The cashier enters the cheque in cash paid registered and pays
against the second signature of receiver on the back of the cheque.
Additional Task of Cash officer:

Cash and cheques of other banks are also deposited at payment counter.
These cheques and cash are deposited along with a deposit slip of Atlas bank
Limited. The CO at payment counter accepts the cheque and stamp the
customer copy as received and take the other part of slip for bank’s record.
CO then stamps these outward cheques for clearing if the cheque is of other
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bank, or transfers the cheque if it belongs to Atlas Bank Limited. Then CO
sends these cheques to operation department for further process.
CO has an authority to verify the cheques which are no more than 25,000.
0.3% withdrawal tax is deducted on every transaction which is equal to or
more than Rs. 25,000. or a total transaction of Rs. 25,000 within a same day.
Cash has per day limit of 10 million PKR, which is insured. If the need rises
then they have to take Access cover insurance.
Payment counter officer also have to look after cash condition in ATM.
They have to check balance either it is sufficient enough for that day or not.
If not, then it is their job to load money into ATM.
CO on payment counter receive all the bills of money used on internal

services from Sales & Quality Department, keep it as a record and pay
money to Sales & Quality Department. They then put these bill entries in the
system as there are certain codes of accounts for every category of internal
services. For instance, 65 for PTCL bills of bank, 70 for electricity, 89 for
stationary etc etc. They then recover this money by sending the copy of
these bills to Head Office of Atlas Bank Limited in Karachi and receive the
amount used on internal services by Head office. The Head Office then
evaluates the monthly expenditure of the Bank and monthly income by the
bank and evaluates that either the branch is going in profit or loss.
CSM (Customer service Manager):

Cash Manager (CM):
Customer service manager is the head of CSD and he have to

monitor all the activities and entries by CO at Receipt Counter and payment
Counter. He checks all the entries made by CSO and he verify and authorize
all the documents related to cash. He authorizes all the cheques which are
above Rs. 25,000 and less than equal to 500,000.
Types Of Cheques:
There are two main types of cheques that are
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 Open Cheques
 Crossed Cheques
Open Cheques:
Open Cheques are those cheques, which are paid across the counter of the
bank. Open cheques may be
o Bearer Cheques
o Order Cheques.
Bearer Cheque: If the drawer orders the bank to pay a stated sum of money
to the bearer, it is called a bearer cheque. Any person who lawfully
possesses a bearer cheque is entitled to receive payment of that cheque.
Order Cheque: The amount of this cheque is payable to the person whose
name is written on the face of the cheque. The amount is paid at counter
after identification of that person.
Crossed Cheque:
The amount of this cheque is not paid at counter. The amount of this cheque
is transferred to the person’s account whose name is specified on the cheque.
Two parallel transverse lines are drawn across the face of the cheque.
Kinds of Crossing:-
Legally there are two kinds of crossing
o General Crossing
o Special Crossing
General Crossing: In case of General Crossing the payment can only be

deposited into the payee’s account only.
Special Crossing: In case of Special Crossing the payment can only be

made to bank named therein the cheque.
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Sales & Distribution
Department
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Sales & Distribution Department
In this department I spend six days with Mr. Hammad Abid and Mr.Salman
Yaqoob, Business Development Officers at Atlas Bank, Fsd Branch. With
their full support and guidance I’ve come to learn all the work which is to be
done in this department. In Atlas Bank Limited, Fsd Branch there are
o Two Business Development Officers (also known as Relationship

officers)
Business Development Officer:

The main function that a Business
Development Officer has to perform is to sale or we can say attract people to
open their accounts in Atlas Bank Limited. They also open account of new
customers. Excellent communication skills, full knowledge of bank policies,
good confidence, speaking style, and good attitude are the most essential
personal requirements for being a BDO.
Types of Accounts (products):

Atlas Bank Offer two kinds of Accounts for its customers, each Account
have its own features. Two types of Accounts are
 Current Account
 Saving Account
Saving account has further two types.
o BONUS PLS
o ROZANA Profit
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Types of
Accounts
Current Saving
Account Account
Businessman Basic Banking Rozana PLS Bonus PLS

Current Account Account Profit
1 - Current Account:
There are two types of current accounts.
 BBA (Basic Banking Account)

 Businessman Current account
BBA (Basic Banking Account):
Features of BBA account are:
 Minimum Initial Deposit Rs.1000/-

 No profit paid
 No requirement of minimum balance
 No fee charged for maintaining account
 Maximum of two deposits and two chequing withdrawals allowed free
of charge, through cash/clearing per month
 Unlimited free of charge ATM withdrawals
 Account statement issued at year end.
Businessman Current Account:
Businessman Current account is an account in which

customer can make regular transactions and no profit is offered on amount in
his account
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Current account has following features which are only offered by Atlas Bank
limited
 Free cheque books

 Free ATM card
 6 free pay orders every month
 No minimum balance charges
 Complimentary insurance* of 500,000
 Free billing* through ATM card
 Free inner and inter city transactions
 Free ATM transactions from any bank in Pakistan
 Toll-free Call Centre Service
* Bills of LESCO, KESCO, GEPCO, IESCO, Sui Northern Gas and ufone only
* Insurance through AIG (American International Group)
2 – Saving Account:
Saving Account has further two types
o Rozana Profit
o Bonus PLS
Rozana Profit Bonus PLS

 Free 1st cheque book  Free 1st cheque book
 Free ATM card  Free ATM card
 No minimum balance charges  No minimum balance charges
 Free billing* through ATM card  Free billing* through ATM card
 Free inner and inter city  Free inner and inter city
transactions transactions
 Free ATM transactions from any  Free ATM transactions from any
bank in Pakistan bank in Pakistan
 Balance credited after 1 month  Balance credited after 6 months
based on profit calculated daily based on profit calculated every
 Toll-free Call Centre Service month
 Toll-free Call Centre Service
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Rozana Profit PLS
Saving Account Bonus PLS Account
Account
99.99K and Below 5.00% 5.00%
100K 499.99K 5.50% 5.75%

500K – 999.99K 6.50% 6.75%
1M – 4.99M 7.50% 7.75%
5M and Above 8.00% 8.25%
If we take a overview of people’s interest toward these types of accounts, we

came to know that people are more interested in Current Account Due to its
salient features that are much attracting than that of Saving Account’s
features.
*Profit is paid to customer after deduction of 10% tax.
SAVING PLANS:
Atlas Bank Limited, not only value its customers but also care about their
family as it is just their own family.
For this, Atlas Bank Limited recently introduces two types of saving plans.
 MY STAR CHILD
 MERA SAHARA.
My STAR CHILD:
Atlas Bank recently introduced a saving plan for children. It is a saving plan
for parents for the better future of their child. Required information about
this saving plan is as follows:
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My StarChild - Education Saving Plan
NJI Life Managed Fund or Meesaq Fund or

Investment Fund
Capital Value Fund
Minimum/Maximum Age at
18 - 65 Years
Entry
Available Term Range 10 - 47 Years
Minimum Annual Premium PKR 24,000
Year 1 - 30%
Year 2 - 80%
Unit Allocation as % of Basic Year 3 - 90%
Plan Premium Year 4 & 5 - 100%
Year 6 & Onwards - 103%
Ad-hoc - 100%
Rs. 200,000 + {return of premium OR cash
Sum Assured on Death value}
(whichever is higher)
Premium Payment Mode Annual, Semi-Annual, Quarterly or Monthly
Allowed, after two annual premiums are
Policy Surrender Option
received
Maturity Benefit Accumulated Cash Value
Family Income Benefit: Will provide for an
extra stream of continuous income to the
beneficiaries in case of an untimely death of
Optional Rider the policy holder. This benefit will be in
excess of death benefit amount which will be
paid as lump sum. Will be offered as PKR
2,500 or PKR 5,000.
MERA SAHARA:
Atlas Bank Limited provides a Retirement planning for its customer that
brings them the colours of happiness even after retirement. Retirement
planning can help you remain financially independent beyond your working
years and allow you to just rest and relax in peace.
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The Mera Sahara plan provides its customers with a smart solution to save
wisely today and have a happy retirement. Required information about this
saving plan is as follows:
Mera Sahara - Retirement Saving Plan
NJI Life Managed Fund or Meesaq Fund or

Investment Fund
Capital Value Fund
Minimum/Maximum Age at
18 - 65 Years
Entry
Available Term Range 10 - 47 Years
Minimum Annual Premium PKR 24,000
Year 1 - 30%
Year 2 - 80%
Unit Allocation as % of Basic Year 3 - 90%
Plan Premium Year 4 & 5 - 100%
Year 6 & Onwards - 103%
Ad-hoc - 100%
Sum Assured with flexible cover multiple
Sum Assured on Death from 1 to 10 with maximum Sum Assured
will be capped at 2 million
Premium Payment Mode Annual, Semi-Annual, Quarterly or Monthly
Allowed anytime after completion of two (2)
Partial Withdrawal years, subject to a minimum of PKR 24,000
remaining in the fund.
Allowed, after two annual premiums are
Policy Surrender Option
received
Ad hoc Premium (Interim
Allowed anytime during a policy year
Fund Injections)
Cash Value as Lump Sum or Pension for
Life
Maturity Benefit
(Annual, Semi-Annual, Quarterly or
Monthly)
30
How to open an Account??
Atlas Bank Limited opens free accounts for customers. No account opening
fee is charged.
To open an account, the customers must meet Relation Officer. RO ask

some questions relating to the customer’s job description his possible
monthly average balance and some other basic questions to create a
comfortable and friendly atmosphere with customer.
The most basic requirement of opening an account is the original N.I.C
(national identity card) of the customer.
Account Opening Form
After this the RO ask the customer about all the information required for
filling an account opening form.
Account Opening Form has following spaces to b filled.
 Types of Accounts ( as mentioned above)

1- Current Account 2- Bonus PLS Account 3- Rozana PLS
Account
 Currency:
There are four kind of currency in which Banks are regulated to deal
in. This regulation is imposed by STATE BANK OF PAKISTAN.
1- PKR (Pakistani Rupee)

2- USD (United State Dollar)
3- GBP (Great Britain Pound)
4- EURO
 Single / Joint:
In joint there can be two to four applicants for a same account. For them
there is an option for applicants either all of them can sign or any one of
them can sign.
31
 Applicant’s Job Description:
It contains many options like Employee, Sole Proprietorship, Partnership,
Company, Joint Stock any many more.
For each kind of Job, different documents are required.
For Sole Proprietorship, an account opening request on the letter head of the
sole Proprietor is required.
For Partnership the same documents are required in addition with stamp
papers of authorizing each other.
For Company, NTN (National Tax Number) certificate is required along

with the documents mentioned above.
 Applicants Personal Description:

It includes the personal information of applicant like his date
of birth according to his NIC, Mother’s maiden name, home address, office
address, contact number etc.
 NOK (Next of Kin):

It is the involvement of third person. In this box the applicant
can mention the name and details of person whom he authorizes to receive
his payments from bank.
 ATM Card Requisition Form:

It is a request form for the issuance of ATM card.
 Cheque Book Request Form:

It is a request form for the issuance of cheque book.
 Specimen Signature Card, Cheques Book Requisition:

The signatures of the client are obtained on a specimen
Signature card Cheque book requisition and online form. These specimen
signature cards are obtained in duplicate with two signatures on each card
from the customer. Every time a Cheque is received for a payment from the
client, the signature on the Cheque are verified by comparing them with the
Specimen Signature Card.
32
 Stamp Paper for Zakat:
A Rs.20 stamp paper is attached only with Saving Accounts,
in which is mentions that 5% zakat is to be deducted by the bank from
applicant’s account each year on 1st of Ramadan.
If applicant don’t want the bank to exempt Zakat from his Account as he/she
wants to pay zakat all by himself then a stamp paper of Rs.100.
The STATE BANK OF PAKISTAN sets a limit of account each year just 4
days before Ramadan, on which zakat is must to pay.
Last year the limit was Rs.10,000. Every Account which has funds equal to
Rs.10,000 or more than that, zakat was must on them
 Extra Stamp Paper:

An extra stamp paper is attached with the form in case of signatures in Urdu
language or in case of very simple signatures in English.
 E-Banking Form: ( 24 SE7EN)

It is one of the best services I have ever seen in any
Bank. This E-banking facility is a milestone in collaboration of Baking with
Mobile technology in order to facilitate customers. The credit goes to Atlas
bank that is working hard by leaps and bounds to provide its customers with
each and every facility to get access to banks without stepping out of their
homes.
I asked a lot about this new facility because it really appeals to my heart, and
not just only me but every customer who came to know about it. The
facilities through e-banking are following
Through E-banking customers can pay utility bills (KESCO, IESCO , LESCO,
GEPCO and SUI NORTHERN GAS), mobile phone bills, mobile top-ups (ufone
only) bill through any channels such as ATM and Internet Banking
It also allows the Customer with IBFT (Inter Bank Fund Transfer) between
accounts of different 1link Banks.
Another service is e-statement. Its features are

1- It looks same as paper statement.
2- It is in secure PDF format.
33
3- It can be accessed any time and from anywhere.
4- It can be subscribed for daily, weekly, fortnightly, monthly or yearly
frequency.
Atlas Bank is recently going to start his SMS alert service for his customers.
This service allows the customers to secure him from fraudulent
transactions.
He/she can track his inflows and outflows of funds through cash, cheque and
funds transfer based transaction. Also track account activities through any
channel like over the
 Round The Clock Banking:

Atlas Bank Limited is pleased to introduce its Round the
Clock Contact Centre for their valued customers.
This is an easy way introduced by Atlas Bank for their valuable customers to
save their precious time and keep them away from hectic formalities of bank
related to different problems.
Customers are provided with a TPIN code on filling up the E-Banking Form.
To get the Account Information on Help Line, customers must tell their PIN
code to the operator, so that he/she finds your account easily. It acts as a
password to identify customer and enable it to conduct various financial and
non-financial transactions at the contact centre.
Customers without this TPIN code can’t get Phone banking facilities.
All it needs is the customer to call Atlas Bank Toll-free call centre 0800-24-
365 and get and easy access to their account.
 Through Phone banking customers can get detailed information about

Atlas Bank products & services.
 Customers can get Account information, Balance Inquiry, Profit
calculation and Interest accruals.
 It is an easy way to get details of your transaction history regarding
withdrawals, deposits and payments.
 Using automated PIN (personal Identification code) Management
System customers can generate or change their TPIN (Telephone PIN)
34
and ATM PIN at anytime just by making a call to Customer Service
Centre.
o ATM PIN works as password through which customer can
access his account on more than 2000 ATMs in the country.
 Customer can get their chequebook and can activate ATM card at any
time of day and night.
 In event of losing chequebook or ATM card customer can block their
chequebook and ATM card at any time of day and night.
 Following service are also offered through Contact Centre
o Chequebook ordering
o Pay Orders/ Demand Drafts
o Balance Certificates / Reference Certificates
o Account Statements
o Funds Transfer – Own and Third Party
Verification Form:
This is a form which is signed by B.M (branch manager), OM
(operation manager), OO (operation officer) and CSM (customer service
manger). This is verification and acceptance of the customer as an account
holder.
Business Development officer then authorize all documents by Branch

Manager and send them to OO. OO (operation officer) scan these documents
and e-mail them to their Central Branch. Within a 1 day our branch receives
the account number of the customer and customer is asked to deposit funds
into his account for activation. After 3 days chequebook along with ATM
card is issues to the customer.
Business Development officer then persuades the customer to bring more

deposit in our bank than other banks as he has more facilities in our bank
than any other bank.
Form QA-22:
Form QA-22 is used in Foreign Currency Account.
35
It is a form taken from foreign nationals who are residents in Pakistan or
companies and firms whose Head Offices are outside Pakistan yet wish to
open an account in a bank in Pakistan.
If any Pakistani national is living in Foreign Country than only his NIC of
Overseas Residential of Pakistan by NADRA is required, But if a foreign
national whose is not a Pakistani NIC holder wishes to open an account then
his passport will be required for Account opening purpose.
KINDS OF ACCOUNTS
1. Accounts Of General Customers
Individual Account
Joint Account
2. Accounts Of Special Customers
Individual Account
Proprietorship Account
Partnership Account
Limited Company’s Account
Account of Club Societies and Association
 Individual Account
When a single man or woman opens an account in his or her own name and
has the right to operate, it is called individual A/C.
Account Opening Procedure
Title of Account
36
Title of Account should mention the name of the person who operates the
account.
Required Documents:
Computerized national Identity Card
 Joint Account
These are the account of two or more persons who are neither partners nor
trustees.
Account Opening Procedure:
Title of Account:
Title of account holder should mention the names of all the joint account
holders.
Special Instruction:
At the time of opening the account clear and specific instructions should be
obtained regarding operation of the account and payment of the balance at
the death of one or more joint account holders in the following manner:-
o The account shall be operated by any joint account holders singly.

o By either or survivor singly
o By any two or more joint account holders or by any two or more
survivors jointly.
o By all the joint account holders jointly
o By all the survivors jointly.
These instructions as far as possible should be obtained in handwriting of the

parties concerned, under the signature of all the joint account holders.
Documents:
Computerized national Identity Card of all the joint account holders.
37
Mode of Signature:
 All joint account holders are required to sign as applicant and in the
column of special instructions.
 Specimen Signature of only those joint account holders are required
who are authorized to operate the account.
 Proprietorship Account
“It is an account in which the owner of the firm operating singly, open an
account in his firm name”
Title of Account:
Title of account must be in the name of the proprietorship concern.
Special Instructions:
In case of proprietorship concern, the special instruction should cover the

style of the account and the name of the person who will operate the account
as sole proprietor. For example, if the account to open is in the name of
“Faisalabad Cloth Store”, the person who is the sole proprietor should
declare as such.
Documents:
 Computerized National Identity Card (CNIC) of proprietor.

 Declaration for proprietorship concern.
 Proprietorship Stamp
 Letter of request to open the account on the letterhead of
proprietorship.
 Third party Mandate, in case any other person has been authorized by
the proprietor to operate the account.
 National Tax Number (NTN) but it is optional.
38
 Partnership Account
“Partnership” is a relationship between persons who have agreed to share

profits of a business carried on by all or any of them acting for all.
Title of Account:
Title of account must be in the name of the firm as declared by the partners.
Documents:-
 Copy of Computerized National Identity Card of all the

partners.
 Copy of registration Certificate (if a registered firm).
 Letter of request to open the account on the letterhead of
partnership.
 Partnership Stamp.
 Partnership Deed.
 Third Party Mandate, if third party is authorized to operate the
account. NTN (optional)
 Limited Companies Account

“An association of individuals for the purpose of profit, possessing a
common capital contributed by the members constituting it, such capital
being commonly divided into shares, of which each possess one or more and
which are transferable by the owners.”
Title of Account:
Title of account should be exactly in the same name and style as mentioned
on the memorandum and article of association.
39
Special Instructions:
All the special instructions should be given to the bank in the form of
Resolution of Board of Director.
Documents:
 Computerized National Identity Card (CNIC).

 The entire Director attested by company CEO.
 Resolution of Board of Director passed under Company’s seal to open
account.
 Memorandum and Article of Association.
 Certificate of Incorporation Form 29 (B) (Lasted Copy). Company
secretary will certify all these copies.
 List of Directors and authorized signatories.
 Certificate of Commencement of Business (for Public limited
company’s only).
 Clubs, Societies and Associations Account

These are non- trading / non- profit organization and are formed for the
promotion of culture, education, recreational activities and charitable
purpose etc.
Title of Account:
Account must be opened in the name of organization in the following

manner:-
e.g. Faisalabad Cricket Association
Operational Instructions:
All the parties must be in accordance with the clauses of the resolution. In
case of death of office bearer, account should be blocked until new
resolution is received.
40
Documents:
 Copy of bye- laws / regulations.

 List of members of managing / executive Committee.
 Copy of certificate of Registration (if registered).
 Copies of CNIC of the members of Executive Committee.
 List of names of officials authorized to sign on behalf of the
organization along with the Specimen Signature under the signature of
the Secretary of the club/society.
What is Sale?
Other than opening account of customers, Sales is another task that RO
has to do to increase their branch balance which develops the performance
of the branch. This is why they are also called Business Development
Officer.
Business Development Officer looks for strong and rich parties, groups and
people in the city and persuades them to be a customer of their bank. This
may take no time or sometimes it takes months to persuade them.
Sometime it happens that people agree and open their accounts in our bank
but then don’t deposit funds into it. Then Business Development Officer
again has to persuade them to deposit their funds into their branch by telling
them the free and exclusive offers and unique services (mentioned above) for
customers.
Personal Lockers:
The Atlas Bank also provides the customers with personal
locker facility. Locker is a facility for customers who want to put their
personal stuff of any kind like Jewellery, money, documents or anything.
But any kinds of explosives are prohibited.
Bank has no authority to open the locker without the owners permission no
matter what happens. However the owner of the locker may authorize and
permit another person for opening his locker. This is done by filling up an
authority letter of locker.
Atlas Bank offers his Customers with lockers in three sizes. The size along
with the yearly fee for lockers are mentioned below
41
 Small Rs. 2500/-
 Medium Rs. 3500/-
 Large Rs. 4500/-
Locker can be unlocked by using two keys. One key is for Bank and other
key is given to the customer. Note that both these keys are not same. A
locker can only be unlocks if both keys are available, otherwise locker
couldn’t be opened by anyone. Key charges/Security for these lockers is
Rs. 1500/-
Term Deposit:
Term deposit is fix deposit in the bank by the customer for

different duration, offered by the bank. It is not like saving account in which
u can make transactions as well as receives profit. In term deposit customer
cannot take out any amount of money from his fix deposited amount. He
receives a profit on that amount according to the percentage defined by
STATE BANK OF PAKISTAN.
The customer gets the profit after one month, three months and six months.
One year, three years and five years and gets percentage profit depending on
the duration of fix deposit and the amount of money.
The fix deposit can be both in local currency and foreign currency. However
the profit percentage is different for Foreign Currency.
Note: Profit is paid to customer after deducted of 10% tax on profit as SBP
rules and regulation
Bumper Profit:
Unlike other term deposit packages on which profit is paid monthly,
quarterly, semi-annually, yearly on fix deposit. The profit of bumper profit is
paid after exact time period for which it is fixed/reserved. For instance if
100,000 rupees is deposited for 1 year fix deposit, then instead of monthly,
quarterly, semi-annually or yearly, bumper profit will be paid after exact 1
year.
42
Note: Mininmum balace for all ter deposits should be minimum rs. 50,000
Indicative profit rates on Term Deposit of Local Currency:
Bumper
1 Month 3 Month 6 Month 1 Year 3 Years 5 Years
profit
50K –
5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
99.99K
100K -
6.50% 7.00% 8.00% 9.00% 9.50% 10.00%
499.99K
1M – 4.99M 8.00% 8.50% 9.00% 10.00% 10.50% 11.00%
5M and
8.50% 9.00% 9.50% 10.50% 11.00% 11.50%
above
Regul
ar 1 Year 3 Years 5 Years
Profit
Payme
Semi Semi
nt Quarterl Quarterl Semi Quarterl
Monthly Annuall Monthly Monthly Annuall
freque y y Annually y
y y
ncy
50K -
99.99 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
K
100K -
499.99 8.65% 8.70% 8.80% 9.10% 9.20% 9.30% 9.60% 9.65% 9.75%
K
1M –
9.60% 9.65% 9.75% 10.00% 10.10% 10.25% 10.50% 10.60% 10.70%
4.99M
5M
and 10.00% 10.10% 10.25% 10.50% 10.60% 10.70% 10.95% 11.00% 11.20%
above
43
Special Notice Deposit 7 Days 30 Days
100K and Above 5.00% 5.00%
This Special Notice Deposit facility is another attracting offer by Atlas

Bank. People doing business who cannot reserve their money for fix deposit
as they know they have to make transactions, they then use this exciting
offer. They fix their amount for short time period like 7 days and at the end
of 7th day get their profit.
Note: Profit is paid to customer after deducted of 10% tax on profit as

STATE BANK PAKISTAN’s rules and regulation.
Indicative profit rates on Savings Deposit of Foreign Currency
Tier Amount USD GBP EURO
0 – 999.99 0.00 % 0.00 % 0.00 %
1000 – 9999.99 0.75 % 1.00 % 0.85 %
10000 - 49999.99 1.00 % 1.20 % 1.10 %
50000 and above 1.30 % 1.50 % 1.40 %
Indicative profit rates on Term Deposit of Foreign Currency
44
Tier Amount USD GBP Euro
7 Days 0.25 % 0.50 % 0.50 %
1 Month 0.50 % 0.75 % 0.75 %
3 Months 1.00 % 1.20 % 1.10 %
6 Months 1.10 % 1.35 % 1.25 %
1 Year 1.50 % 1.60 % 1.50 %
Conditions for Closing an Account:
For closing an account there must be following conditions.
o There must not be a single penny left in the bank account. If there is
small amount even in decimals like Rs. 0.10 is left in account, the
account will not be closed until it is nil. Documents required for
closing an account are as under
o Request for closing an account

o Copy of NIC
o Chequebook
o ATM card and every thing that belongs to bank.
45
Operations Department
46
OPERATION DEPARTMENT
This is the most important department of the Bank. I spend twelve days in
Operation Department with the operation officer Mr. Ali Raza during my
internship in Atlas Bank. This department has two officers which are
o Operation Officer (OO)

o Operation Manager (OM)
Operation Manager (OM):

They have a major role in bank. All the operations in the bank are controlled
by Operation Manager. None of the document is acceptable for the bank
until it is approved and verified by Operation Manager.
Operation Manager has to look after the whole operations in the bank and to
see if they are going accurately fine according to rules and regulation of the
bank.
He also has to cheque all entries made by CSOs and Operation Officer in the
record and only he is the one who has the authority to verify and authorize
cheques which are above the limit of CSM say Rs. 500,000.
He is responsible for each and everything happening in operations. After

B.M (branch manager) he is the most authorised and only man in charge.
Operation Officer (OO):

On the other hand, operation officer has to make all the clearing of cheques,
Make D.D and P.O, issue chequebook and ATM card to customers. He also
has to send CBC request and to keep record of daily transactions and
account activity reports and cleared cheque.
Keep full record of all the bills and pass them to CSO (customer service
officer) for verification along with real receipts.
CBC:
CBC stands for Call Back Confirmation. It is a process in which CSO
send those self cheques to operation officer which are more than equal to
47
300 thousand. Operation officer fills an online application of CBC and sends
it to Central Office of Atlas Bank in Karachi. The Head office, when receive
the application request, calls the person whose cheque request they received
from our branch and ask him if he has send this cheque for transaction.
This is a security process through which bank ensures funds safety of
customers from any kind of fraud. After confirmation the head office send
back the CBC status online that either CBC is confirmed or not. If the CBC
is confirmed then operation officer sends the cheque to CSM for verification
and after verification, bank accepts the cheque and make the payment to the
person otherwise bank don’t accept the cheque. This whole CBC process
takes not a minute more than 15.
Remittances
“Remittance is transfer of funds from one place to another or from one
person to another.”
A Remittance is an important service provided by banks to customers as

well as non-customers. Since it is not a free service it is a source of income
for the bank.
Parties involve in remittances
Four parties involved in remittance:
 Remitter
 Remittee
 Issuing Bank
 Paying Bank
Remitter:
One who initiates, or requests for a remittance. The remitter comes to

the issuing or originating branch, asks for a remittance to be made, and
deposits the money to be remitted. The bank charges him a commission for
this service. He may or may not be the branch’s customer.
Remittee:
48
A Remittee is also called the beneficiary, or the payee. The person in
whose name the remittance is made. A remittee is also the one who receive
the payment.
Issuing Bank:
The bank that sends or affects the remittance, through demand

drafts, telegraphic transfers, or Mail Transfers.
Paying Bank:
Paying Bank also knows as the drawee branch. The branch on

which the instrument is drawn. It has to make the payment (usually located
in a different city country).
Kind of remittances
 Transfer within the branch. (clearing)
 Transfer from one branch to another. (clearing)
 Transfer from one bank to another bank in the same city. (clearing)
 Transfers from one bank to another bank in two cities. (clearing)
Instruments used in remittances
 Demand Draft (DD)

 Pay Order (PO)
 Telegraph Transfer Rupees
 Cancellation of PO, DD & CDR
P.O (Pay Order):
Pay order is a negotiable instrument made by the bank, on account of a

customer, to pay on order the specified amount to the directed person
(payee).
49
It is used for inner city transactions. The customer attaches the cheque with
an application form of P.O in which is mentioned the beneficiary name and
account no. and account details of customer itself. Then it is authorized and
verified by OM and CSM.
Operation Officer then gives one slip to the customer, keep one for banks
record and send one to the bank of the beneficiary.
The advantage of P.O is that it can’t be dishonoured due to some objection

by bank. No matter that customer had money in its account or not, bank have
to pay the money to beneficiary. The only reason due to which a pay order
could be cancelled is the stop payment or cancellation by the customer itself.
D.D (Demand Draft):
Demand Draft is a negotiable instrument, which is drawn by one branch to

another branch of the same bank. In case of agency arrangement Demand
Draft can also be issued by one branch of the bank payable to other branch
of the other bank e.g. DD issued by the ABK payable by UBL.
It is used for Intercity and for foreign countries. The customer attaches the
cheque with an application form of D.D. Then it is processed in the same
way as with P.O.
Telegraph Transfer:
It is just a shape of Demand Draft. The difference is that it is not drawn on

the specified branch. It can be drawn on any branch of the same bank.
The paying bank has to verify the signatures and after verification payment
is made.
Cancellation of PO, DD and CDR:
After issuance of Pay Order, Demand Draft or Call Deposit Receipt by Atlas
Bank Limited, if any one of these has to be cancelled by the customer, it is
returned in the bank. Then, after deducting the cancellation charges, the
remaining (net) amount is paid to the customer. Cancellation charges are Rs
200.
50
CHEQUE CLEARING:
There are two type of clearing.
 Inward Clearing
 Outward Clearing
Inward Clearing:
In inward clearing, bank receives its own cheques from
other banks where these cheques were deposited for transfer of funds into
their customers account. Those banks send those cheques to our branch to
know that either there is any problem in these cheques or not. The operation
officer check following things
 Account balance of the account holder

 Signature
 Amount in figure
 Amount in digits
 Date of the Cheque
If all the above things are accurate, then operation officer made an online
transfer of the money to that bank. Then he takeout a print of memo in
which is mentioned the transaction from the account and keep the cheque
along with the memo for bank record.
In case if there is any problem, bank return the cheque along with a print of
memo in which is mentioned the reason of returning cheque. The bank made
an entry into its account so that cheque returning charges are exempted from
that account. The cheque returning charges of Atlas Bank Limited is Rs.
300. Every bank has its own cheque returning charges. Bank has a register
in which it keeps record of all the cheques returned.
Then operation officer make a copy of cheque and the memo for his own
record and send the cheque back to that bank from where it came.
Outward Clearing:
In outward clearing our customers deposit cheques of other
banks into our bank for transaction of money. We then send these cheques to
51
those branches of banks where these cheques belong to for clearing. This is
called outward clearing. There are two types of transaction
o Inner city:
These are all those cheques which are from the Local banks
(within the city branches).
o Inter city:
These are all those cheques which are from the banks outside
the city or in other cities.
Customer that has an account in our bank deposit cheques. These cheques
are deposited along with a deposit slip of Atlas bank Limited. The CSO at
payment counter accepts the cheque and stamp the customer copy as
received and take the other part of slip for bank’s record. CSO then stamp
these outward cheques for clearing. If the cheque is of Atlas Bank then CSO
check the account and transfer money from one customer’s account of Atlas
bank to the other customer’s bank account and stamp the slip as transferred.
Then CSO send these cheques to operation department for further process.
Operation officer then separate all the Inner city, Inter city and OBC
cheques. After it he enter their cheque no, cheque amount, account title, date
and other information into the computer and takes out a detailed list of his
entries, check it list to make sure he didn’t miss any cheque and then send it
to other banks for clearing through NIFT(National Institution Facilitation
Technology).
NIFT (National Institution Facilitation Technology):

It is a service which transfers cheques from one bank to other. Inter city
cheques of each city are attached with a bundle cover on which is mentioned
the total amount of all cheques to that particular city, and that bundle cover
is stamped with intercity stamp. Then each bundle to cheques is packed in a
particular envelop on which the city name is already printed by NIFT.
NIFT cover 19 cities of Pakistan
 Faisalabad  Multan
 Lahore  Sialkot
 Karachi  Sukkur
52
 Hyderabad  Islamabad
 Bahawalpur  Rawalpindi
 D.I Khan  Muzaffarabad
 Peshawar  Abbotabad
 Quetta  Jhelum
 Multan  Sahiwal
 Gujranwala
.
Same Day:
Clearing the cheques that are presented in same day clearing are the local
cheques and these cheques are clear in same day. Basically it is the benefit
that is provided to customer. For same day Rs. 200 is charged from
customer.
OBC (Outward Bill Collection):
“When an instrument is drawn on a bank, which is located outside

the city, its proceeds can be collected through a mechanism called Outward
Bills for Collection (OBC).”
OBC are those cheques which belong to those branches of banks in

different cities where NIFT is not available. These cheques are sent by a
courier service. Along with OBC cheque, our bank sends a letter to that
bank; letter is actually a request for issuance of a demand draft of same
amount of the cheque in favor of any of their branch in Faisalabad.
As our bank receives the demand draft by that bank, we send this demand
draft to that bank branch for further processing of their side.
IBC (inward Bill Collection):

IBC are those cheques which belong to our bank, it
is an OBC by other bank to our bank. The other bank receive our cheque and
sends it to us along with a letter which is actually a request for issuance of a
demand draft of same amount of the cheque in favour of any of our branch
in that city.
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As our bank sends the demand draft to that bank, they then send this demand
draft to our bank branch in that city for further processing of our side for
clearing.
Send Report To The Bank:
After delivering the cheques to different banks NIFT send report to ABK
Kotwali Road Branch Faisalabad, then the bank’s staff tally the amount of
that report for its own record.
Delivered Cheques to Respective Banks:
Next morning, these cheques are delivered to the respective banks between
8:30AM to 9:00AM. In the same manner, other banks present their clearing
drawn on Atlas Bank. Total number of cheques and their amount delivered
to other banks and received from them are written on the Clearing House
schedule branch for their payment. After proper scrutiny of cheques,
verification of signatures and confirmation of balance in the account, the
Officer Clearing Department Debit the customer Account. If any cheque is
not passed due to insufficient balance or any other reason, operation officer
returns the same cheque by attaching a cheque return memo containing
reason for return.
Credit the Customer Account:
If the cheques are clear then the ABK Kotwali Road Branch, Faisalabad
credit the customer Account. If the bank receives the outward return due to
any reason then this cheque is entered into the cheque returned register and
bank charges are deducted according to the schedule of charges.
O.D (Over Draft):

It is a kind of loan. In O.D customer submits money for fix
deposit and ask bank to give him loan against the amount he has submitted
for fix deposit. Atlas Bank gives a maximum loan of 70% of the amount that
the customer has deposited for term deposit. The advantage of over draft is
that the customer doesn’t have to pay full mark up of 12%. For instance, if
the mark up is 12% and the profit he is earning from term deposit is 8%,
then bank deducts most of the mark up from his profit and mark up he has to
pay is very low, i.e. 12% - 8% = 4%, it means the customer only have to pay
a mark up of 12%.
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Stamps Used In clearing
Stamps Put On the Cheques:
When the cheques are presented in ABK Kotwali road branch, to be

deposited in their respective payee’s accounts, different stamps are put on
cheques before their lodgment in outward clearing.
Crossing the cheques:
Crossing means two parallel lines, drawn across the face of the cheques with
or without words written in between them. Crossing may be general or
special. In clearing, cheques are crossed specially. Cheques are stamped with
bank’s name between two parallel lines to constitute special crossing. After
the cheques have been crossed specially, the holder cannot receive payment
except through the banker named on the cheques crossing saves the
instrument to go it in illegal hands. If, crossed cheques is lost or stolen, there
is no risk involved. So it is an effective means of minimizing the risk of loss.
Clearing Stamp:
After the cheques have been crossed specially, clearing stamp is put on the
cheques and other instruments, with the next date, so these cheques would
have to be presented in their concerned drawee banks on the subsequent day.
Endorsement Stamp:
The word endorsement means anything written or printed on the back of an

instrument. So endorsement stamp has to put with words “Payee’s account
Credited in Atlas Bank Limited, Kotwali Road Branch, Faisalabad”.
National Institutional Facilitation Authority:
After putting these three stamps on cheques & other negotiable instruments,
they are sent to NIFT. NIFT after segregating the cheques of different banks
delivers them to their concerned banks.
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Transfer of funds to Banks in foreign countries:
When a customer wants to transfer his funds to some bank in

another country. He fills up a D.D request form along with the cheque. The
operation officer prepares a memo of that amount in which is mentioned the
name of beneficiary and beneficiary’s bank name. Then Operation Manger
verifies the memo and faxes it to Head Office for further verification. After
verification the head office fax back the memo and operation officer transfer
the funds to the head office account.
Head office makes a D.D of that amount and sends it to an international
bank which have a branch in Pakistan and with which Atlas Bank have a
contract for transferring of funds to other countries. Atlas Bank transfers
those funds to that bank. Then that international bank transfers those funds
to their branch in that particular country where money is to be sent. Then
those banks transfer that money to the beneficiary’s bank. This whole
process takes no more than 2 hours.
Bank in Pakistan are directed by STATE BANK OF PAKISTAN to deal

only in four currencies USD, GBP, Euro and PKR.
For transfer of funds to America in USD, Atlas Bank deals with Mashreq
Bank in New York, and Habib American Bank in New York.
For transfer of funds to Great Britain in GBP, Atlas Bank deals with
Mashreq Bank in London.
For transfer of funds to EUROPE in EURO, Atlas Bank deals with Mashreq
Bank in London and HSBC Bank in London.
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Foreign Exchange
Department
57
Foreign Exchange Department
(Trade & Finance)
I worked for ten day under the supervision and teaching of Mr Usman
Arshad for week, where he taught me all about Trade and Finance issues
/transactions and rules/regulations.
The main requirement for being a part of world trade is to be a member of
SWIFT. SWIFT (Society for Worldwide Interbank Financial
Telecommunication) provides the member bank with a code called Swift
code. Every bank must have a Swift code in order to be eligible for having
Trade and Finance department.
Swift code of Atlas Bank is DBHDPKKA.
Bank gets the L.C through SWIFT, very few people in a bank has a direct
online access to SWIFT. They logon to network by entering SWIFT code
and password. Our bank gets its L.C through SWIFT from Lahore office
where The Foreign Exchange manager has a direct access to SWIFT.
TRADE
How Importer and Exporter begin their business relation??

There are two main ways through which Importer and exporter came to
know about each other’s products
1- First way is by use of worldwide internet technology. Marketing

teams of different companies and industries display pictures and
details of their products on their websites and on worldwide marketing
websites. Importers, in search of exporters on internet when find their
product according to their own requirements, they contact those
exporters through internet and ask for more details such as price
quotations and sample of product. Once the importer likes the product,
he then approves it and thus there business relation begins.
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2- Second ways is through setting stalls in Business Expos and industrial
Exhibitions in foreign countries like Germany, Belgium and other
countries where Importers and Exporters from almost every corner of
the world came for the purpose of expanding their business. Importer
took samples and price quotations from different stalls set by different
exporters. They then compare the sample and prices of all these
exporters and selects the one, whose prices suits them.
Sales Contract (Performa Invoice):

After the approval of sample, the importer orders for the
product and send details of types of product required, number of pieces of
product required, size details and colour details.
The exporter prepares a letter containing the whole information of the
product along with it’s per piece and total price. This letter is then signed by
both exporter and importer. This letter is called Sales Contract or Performa
Invoice.
.
As importer and exporter don’t know each other personally so they can’t
trust each other for shipment and payment. To resolve this problem they
contact their banks to help them in their trade and payment. The importer
takes the original sales contract to its bank to open L .C (Letter of Credit)
After L.C has been opened, the L.C issuing Bank (importer’s bank) send this
L.C to the beneficiary’s (exporter’s) bank.
Note: Import and export is based on L.C, and it must be opened by Importer.
Beneficiary’s bank then sends this L.C to exporter with L.C advising charges
which are different in different banks. In Atlas Bank L.C advising charges
are Rs. 1800.
L.C (Letter of Credit):

L.C is a letter by importer to the exporter through bank. It
contains clauses for different information. These clauses are identified by
codes given to them and these codes are used universally for these clauses.
The reason of these codes is to end up the language confusion for these
clauses. These clauses are like
59: Beneficiary Name & Address

44C: Latest Date of Shipment
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45A: Description of goods and services
31D: Date and Place of Expiry
Types of L.C:
There are four categories of L.C which are as follows
 Revocable versus Irrevocable

 Confirmed Versus Advised
 Straight versus Negotiation
 Sight versus Usance
Revocable versus Irrevocable:

o Once an irrevocable L.C is opened, it cannot be changed
without the written consent of all the parties including the
beneficiary.
o A revocable L.C can be changed or withdrawn without
notifying the beneficiary.
Confirmed Versus Advised:

o Confirmed is preferred as confirming bank promises to pay.
o Advised doesn’t guarantee the credit worthiness to opening bank.
Straight versus Negotiation:

o A negotiation letter of credit can be presented to any bank.
o A straight letter of credit can only be paid in the country of the paying
bank.
Sight versus Usance:

o Usance can be between 30 to 180 days after the bill of lading date.
This is a form of delayed payment and should be avoided
o Sight means the beneficiary is paid as soon as the paying bank
determined that all necessary documents are in order
Advising letter:
If any bank other than our bank receives L.C of our customer they
send us an advising letter in which is mentioned that they have L.C our
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customer and we can get that L.C by paying advising charges to that bank.
Our banks make a pay order in favour of that bank along with a letter in
which is mentioned the request to handover the L.C against the payment
through P.O.
Intermediatory banks:
For the transfer of funds, Importer’s bank and Exporter’s
bank contact each other through those international banks with which they
have their contracts, if there is no contact among those banks then bank
contact with intermediatory banks. Intermediatory banks are those banks in
which there is an account of every single bank in world. These accounts are
called NOSTRO ACCOUNTS. Thus through intermediatory banks, money
can be transferred to any bank in world.
For USD, Intermediatory banks are in America.

For GBP, Intermediatory banks are in London.
For EURO, intermediatory banks are in Germany.
Shipment process:
After receiving L.C, exporter exports the products according
to details mentioned in L.C. It is not legal and ethical to make any changes
in the product packing and quantity which is not according to L.C. After
loading the order for shipment the exporter gets the Bill of Lading.
Bill of Lading:
It is a shipment bill. If exporter is in urgent need of money, he gets
the payment of his exported products from bank and handover the bill of
lading to his bank.
The bank only pays him the money if bank has his guarantee (property,
personal assets etc) in case of recovering the bank losses due to that person.
After paying money to the exporter, the bank has to recover the money from
importer.
Bank contacts with Intermediatory bank, hand over the bill of lading to it
and in return gets the money.
Intermediatory bank do the same with Importer’s bank who has Importer’s
guarantees.
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Importer’s bank then takes the custody of imported products and inform the
importer when his order lands at its destination. Bank then only handover the
bill of lading to Importer when Importer pays money to his bank.
It must be noted that Importer cannot get his imported products without bill
of lading.
If importer doesn’t pay money within due date that is mentioned on L.C then
he has to pay a mark up of 22% for each day after due date.
For instance mark up for 6 days is calculated as:
Number of Days x Total amount of imported products x 22%

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6 x Total amount of imported products x 22%

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Shipment Documents:
For shipment, following documents must be submitted by exporter to the

bank.
 Commercial Invoice
 Packing List
 E-Form (Original, Duplicate, Triplicate, Quadrant)
 Bills of Lading
 Shipment Bill / Goods Declaration
 Contract / L.C
 Certificate of Origin
 GSP Certificate
Commercial Invoice:
It is the bill of all the products that are to be exported to
other countries. This bill contain details about colour of product, size of
product, number of products, type of products and weight of products. In the
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end is mentioned the price of per piece of product and total amount of all the
products that is to be paid by the Importer.
Packing List:
This is the packing list of all the products, in which all the packing
details of products are mentioned according to product’s type, colour and
size. Net weight, total no of pieces and total no of cartons are also mentioned
in it.
E-Form (Export Form):

It is a Form by Govt of Pakistan. It is a Declaration to be furnished by
exporters pursuant to section 12(1) of the Foreign exchange Regulation Act,
1947 read with Govt notification no 1(6)-ECS/48 and No 1(7)-ECS/48 both
dated the 1st July, 1948.
It acts as a license for exporter by the authorised dealer (bank). It is printed

by the Authorised dealer according to the specimen given by the Govt of
Pakistan.
Exporter gets the E-Form from bank for shipment of its goods. After filling
in the required details of the products to be exported, and after verification
by the exporter, the E-Form should be submitted back to bank within 21
days after shipment.
It has for copies, Original, Duplicate, Triplicate, Quadruplicate. Original and

quadruplicate is given back to customer after it is verified from the
authorised dealer. It must also be verified by Custom Office. Bank
(authorised dealer) keeps the duplicate and triplicate of E-Form. Triplicate is
sent to SBP at the end of the month along with Foreign Exchange Return.
Bill of Lading:
Its importance and role is mention above. The main details it contains
are as follows.
 Consigner’s name and detail.

 Consigned to the order of (i.e. bank name).
 Notify Address.
 Ship No.
 Port of receipt.
 Port of loading.
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 Place of delivery.
 Port of discharge.
 Ocean vessel.
 Container No.
 Net weight of shipment / products
Certificate of Origin:
Each exporter must be a member of manufacturing societies
of traders, which are approved by the Govt of Pakistan. These societies
provide the exporter with certificate of origin on his every export. All the
details of the exporting products are mentioned in this certificate. Such as,
exporter’s name, importer’s name, total number of products, total no of
cartons in which they are packed and other particulars of export (as far as
known). It certifies and verifies the declaration of export by the exporter and
also the origin of export.
GSP Certificate:
This is also a certificate of origin. It is combined declaration
and certificate. It contains the same information as certificate of origin by
the association contains. It contains the declaration by the exporter and
certification by the Trade Development Authority of Pakistan, Govt of
Pakistan.
FINANCE
Exporters Refinance (ERF) Scheme:
To improve and to meet targets of export for earning revenue in order to

stabilize economy of the country, the Government of Pakistan and Ministry
of Finance Introduced Exporters Refinance scheme in order to facilitate
exporters by charging markup as low as 7.50% on each shipment.
Through ERF scheme exporters don’t have to pay high markups each to
authorize dealer and SBP, such as 12% to SBP and another 6% to bank
which makes total of 18%, it means 18% of total shipment goes only in
markups, whereas in ERF scheme exporter only has to pay a total markup of
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7.50% out to which 1.00% goes to Authorize dealer and rest of the 6.50%
goes to STATE BANK OF PAKISTAN.
Authorize dealers are Banks who are licensed by SBP for ERF Scheme. In
this scheme exporter gets his money of shipment from his authorize dealer
(who has exporter’s guarantees), this is called Finance.
Authorize dealer (Bank) then gets this money from SBP to recover itself, this
is called Refinance.
ERF scheme includes two phases
 FAPC I
 FAPC II
FAPC I (Finance Against Packing Credit I ):
Its has Further two types
o Pre-shipment
o Post shipment
Pre-shipment:
In pre-shipment, exporter takes all the shipment documents, to its
bank and ask for money before shipment (before the departure of the ship),
bank only accept this case if exporter has his guarantees to the bank.
Guarantees are for bank’s own security to avoid any kind of risk to be
caused by the exporter in future.
In pre-shipment, 180 days are always calculated from the day when loan is
granted.
Post Shipment:
It is almost same as pre-shipment, the only differences that, in
post-shipment, exporter ask for money (loan) after shipment (after the
departure of the ship).
In post-shipment, 180 days are always calculated from the date of shipment.
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How Bank Process FAPC I?
There is a rule in banking that whenever there is a debit in some account

than there will also be a credit in that account.
For every facility availed by the customer from bank, there is always be a
separate account for that facility. Customer has no direct/indirect access to
that account, these accounts are for banks own calculations. Opening
balance of these accounts is always NIL. Such accounts are called Liability
Accounts.
When exporter ask for pre-shipment or post-shipment loan, the bank first
investigate that either the bank has guarantees of this customer or not, if not
then bank refuses to issue loan to exporter. If bank avail his guarantees than
bank pay him the money and make two accounts of that person for banks
own calculations. In FAPC I bank opens two accounts which are called SBP
pre-shipment / post shipment account and SBP borrower account.
 SBP pre-shipment / post shipment account:

Opening balance of this account is nil, in case of FAPC I, bank credits
the current account of the exporter with the amount of loan (shipment
money) and debit is amount from SBP pre-shipment / post shipment account.
The amount in this account will be in negative figures.
 SBP borrower account:

Bank after financing FAPC I loan to exporter, recovers this money
from STATE BANK OF PAKISTAN, by sending the shipment documents
to SBP, which then grant that money to the Bank.
Bank than credits the SBP borrower account with this refinance amount into
positive figures.
When bank receives payment of shipment from the Importer, bank has to
transfer this amount to SBP within three days. In case if banks gets late in
transferring this amount, bank itself have to pay markup on that money.
Bank transfer the money directly to SBP debits this amount from SBP
borrower account and then credit it to SBP pre-shipment/post shipment
account, as in SBP pre-shipment/post shipment account and due to opposite
signs they cancel with each other and the account becomes nil, which is the
required target to achieve.
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Bank charges the ERF markup after evaluating the total number of days after
which the amount is returned by the exporter.
Evaluation is through formula
Number of Days x Principle Amount x 7.50%

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Bank then deducts the evaluated markup form the payment received from
importer and handover the rest to the exporter. Out of 7.5% markup
deducted, 1.00% goes the authorized dealer9customer’s bank) and rest of
6.5% goes to STATE BANK OF PAKISTAN.
It should be noted that the day on which loan is granted is always included in
evaluation of days for markup, whereas the day when loan is paid back to
bank by customer, is excluded of the count.
FAPC II (Finance Against Packing Credit II ):
FAPC II is Performa based, it includes two types
o E.E (Exporter’s Earning)

o E.F (Exporter’s Finance)
E.E (Exporter’s Earning):

It is actually a record of all the shipment made a single exporter in one
financial year. Last financial year of Atlas Bank started from 1st of July 2008
and ended on 30th of June 2009.
E.F (Exporter’s Finance):

It is same as E.E except of those entries/shipments on which FAPC I
is availed. Then amount of E.F is calculated and the total amount of all the
exports/shipments is divided by 2 and the output of this division is set as a
credit limit for next exporting year of that exporter.
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Total PKR of E.F
= ------------------------
2
Note: FAPC II is for 180 days, not a day more or less than that.
Foreign Exchange Return:
It is obvious that when something is exported out of Pakistan, Our country

obtains Foreign Currency and when something is imported from other
countries then our country pay in foreign currency.
This is how the In-Out of Foreign Currency goes on.
Every Bank has a Foreign Currency Account in its every branch. When
some one exchange Foreign Currency into PKR, or exchange PKR into
Foreign Currency, the cash counter deals it all. Cash Counter pays it from, or
put it into Foreign Currency Account.
Every Entry of Foreign Currency Exchange should be reported to SBP at the

end of every month. These reporting are mentioned on a system ITRS
(International Transaction Reporting System).
By using this system SBP reports the total to the Financial Advisors and
Economists of the country who then make figures that how much IN-OUT
of Foreign Currency is made in that year, Compare it with last year
calculations and make strategies to improve it.
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Credit Department
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Credit Department
A good financial support when officials of this department invest money of
depositors into feasible projects by lending loans to various business
concerns. As the core activity of Commercial bank is to provide short-term
finance, which is mostly for working capital requirements. As business
concerns have money to complete the one production cycle, but it is not
necessary that amount would be received just after sale, but credit sales are
also made. So to finance next production cycle they obtain loans from
commercial banks on short-term basis, for continuity in operations.
Evaluation of client
This is the first requisite for team of credit department, to evaluate the
client's position regarding the financial and business performance concern.
As for as, credit policy of Atlas Bank Limited is concerned, it doesn't given
loan to individuals & business concerns.
i) Financial Statement Analysis:
This is the main source to evaluate the client of business concern, Annual
Reports of last 2 to 3 years are obtained from enterprise, which is requesting
for credit/loan. These are examined by various techniques like; Horizontal
Analysis, trend, ratio analysis are conducted to get true and fair view of the
final statements of that concern.
ii) Nature of Business to be Considered:
Secondly, nature of business should be considered because if business

concern to which we are giving loan related with that industry which is not
growing and declining and we sanction loan to that concern would lead to
definite bad debts. So if we examine the nature of business properly and
make sure about its growing trend, then loans can be sanctioned to that
concern.
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iii) Bank References:
By correspondence ABK makes confirm to send letters to various banks in

order to know about client's record/dealing with them. If they give proper
information about client then decision made for loan becomes more strong
and healthy.
iv) Plant Visit:
This is another source of evaluating client. In this technique credit

department team visit the plant of concern to assure that plant is actually in a
position to get market value as which mentioned in Balance Sheet. To get
real picture of that business is obtained through personal visit.
v) Credit Rating:
From various credit rating agencies reports are obtained which show the past
record of that firm regarding the paying capacity and dealing to discharge
liabilities. If credit rating is good enough then that symptom will also lead to
sanction loan.
vi) Report From SBP:
From State Bank of Pakistan, report is required regarding that client. SBP
has record of every client past and present scenario. So it is essential to
examine that report.
However, some other techniques are also used to evaluate the performance
of business like, credit vetting and information from peer concerns. After
this appropriate examination, credit department makes credit appraisal report
and sends to head office corporate division (Credit Division) for sanctioning
that amount to concern.
vii) ECIB (Electronic Credit Information Bureau):
SBP use ECIB (Electronic Credit Information Bureau).If a bank has some
over dues left unpaid by a customer, the bank report it’s name and related
details in ECIB. Whole banking network in PAKISTAN is connected to
ECIB. Whenever that particular customer applies for loan in some other
71
bank, that bank first check for that person in ECIB. If that person has his
name in ECIB, then bank will not issue loan to that person as he is a
defaulter. If that customer is not listed in ECIB then further process for the
issuance will be performed by bank.
Various types of credit products, nature of advances:

There are various means to provide credit. Credit can be in the form of
lending money, guarantees, letter of credit and against bill of exchange.
Every type of credit product has some features regarding interest/marketing
rates, maturity period and some other things.
In Atlas Bank Limited, all such sort of products are offered which are mostly
provided by other commercial banks of Pakistan.
Atlas Bank Limited usually, gives loans against refinance scheme and letter
of credit transactions. There were various cases which were rejected or not
sanctioned for loan due to some minor risky things involved.
Processing of a credit line proposal form:

When client fills the credit line proposal form for getting loan. Then credit
officer conducts financial statements analysis and with his own views
statement refer to head office for sanctioning credit limit. Businessmen make
arrangement with banks for credit line, which is used for future needs. They
pay some commission on that fixed credit line. In this way, they secure their
money for future working capital requirements.
Primary Evaluation of Credit Proposal:
Following are primary processes to evaluate credit proposal.
i) Purpose of Facility:
- Should be Legally/Morally Valid/Legitimate.
- Should conform to the Bank's Credit Policy guidelines.
- Should conform to the guidelines provided by the State Bank of Pakistan.
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- Should be geared towards meeting national economic priorities.
ii) Amount of Facility:
- Should be within the actual requirements of the borrower.
- Should be such that the principle of maintaining a diversified portfolio is

not sacrificed, without any extra ordinary considerations.
- Customer should not be working on borrowed capital only, there should be

substantial own stake of the customer.
iii) Period of Facility:
- Should match the availability of resources.
- Should conform to the bank's policies/guidelines.
- Should conform to the actual requirements of the customer.
iv) Repayment:
-Period of repayment should be specific and should match the cash flow of
customer's business.
- Primary and secondary sources of repayment should be specifically

identified.
v) Security:
- The facility should be fully secured, in light of security and margin

requirements determined by the bank and the SBP.
vi) Market Reputation:
The customer should have good market reputation & standing.
Principle of lending:
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Now we will discuss on the principles of lending. Based on the
aforementioned considerations, following principles of lending have been
evolved.
1) SAFETY
Covering the elements of character, capacity, capital, and security

offered/held. Security should be identifiable, enforceable, realizable and
valuable, in order to ensure safety of the facilities committed.
i. The borrower should have impeccable character market standing and

reputation. He should be reliable and dependable for meeting his
commitments and the terms of the facility.
ii. The capacity or capability of the borrower to manage his business and
generate enough profits and cash flows to meet his commitments for
repayments and debt servicing is of pivotal importance.
iii. By capital is meant the monetary worth of the customer and his own
resource base.
2) LIQUIDITY
i. Covering the element of capability to liquidate or repay on maturity

and also prior to maturity, in case of need, Ask how "Liquid a loan is,
not just how good".
ii. Does he have an identified primary liquid source of repayment? This
will determine his ability to repay the bank's facilities.
iii. It is also important to determine the amount that can be lent as a one
time transaction or as a continuing credit line, depending upon
customer's requirements, capacity to repay, trade cycle, business
turnover, cash flows and the regulatory guidelines.
The five C’s of Credit

Credit team officials should be known as the five C's of lending. These are
discussed below:
i) Capital:
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- The capital & resources of the borrower.
- The capital structure of the borrower and the gearing ratios.
- Is the borrower Under-capitalized?
- Does the borrower has its own resources to fall back on, in case of need.
ii) Capacity:
- Capacity or the capability of the borrower to manage his business

profitably and the capacity to repay the advances and service the facilities
according to agreed terms.
- Is the borrower in a capacity to borrow? or is there any legal complication?
iii) Collateral:
- The security provided against the facilities.
- Is the security provided: Adequate, Realizable, Marketable, Valuable,

Storable, Non-perishable, Durable, Transferable/with clear Title.
Transportable un-cumbered etc?
iv) Character:
- Is the borrower's personal character, market standing and reputation

impeccable?
- Has he met his part commitments?
- Does he have good bank reference.
v) Conditions:
- Have the conditions of lending been drawn up taking into account all
possibilities or eventualities?
- Is the sector/industry in decline, is growing or it has reached at plateau?
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- Is there a market for the products and the market size to justify production
plans and sales forecasts?
- Are the economic conditions feasible generally and for the business, in
particular?
Forms of lending
In credit department of ABK, various forms of credit are offered to different
clients. Following are the main forms of lending:
i) Cash Credit
ii) Running Finance
iii) Term Finance
iv) Purchase and Discounting of Bills etc.
i) Cash Credit (PLEDGE):
In this form of lending, cash is required to keep as a security. This form is

less risky than others. Because bank is fully equipped with cash. Mostly this
is used for very special purpose like; payment to exporter for the goods
delivered. Below are mentioned core features of the cash finance.
a) Most secure type of finance
b) Stocks are in possession of bank.
c) Whatever amount he may want to release stocks then pay equipment

amount.
ii) Running Finance:
Running finance is most popular sort of credit facility given to clients. This
is mostly obtained for the purpose of working capital requirements. Client
can draw money even daily from the account but not more than the limit
(ABK normal limit was upto 1,000,000/- (one million) that can be drawn by
him). In running finance, it is not necessary that security would be in the
76
possession of bank, but all important documents of stocks, property etc, are
in its possession.
However, the case may be, one limit is for one year, not more than this can
be sanctioned. But on the other way around, if client doesn't repay amount in
one year after making all possible correspondence and personal contacts
then Bank will sue him after 210 days in the court. The amount received by
him would be with the markup. It should be noted that if limit is more than 1
million then proposal would be sanctioned by credit committee of Head
Office.
iii. Term Finance:
This credit facility is also required for working capital requirements. This is
the same like running finance but difference is that in this term finance,
disbursement of amount is in once a time.
Beside, time limit for term finance is 1 year to 10 years, payment is made in
the form of installment which can be on monthly, quarterly, half yearly,
yearly basis. Markup is received on quarterly basis. It is important to note
that markup should be received on that specific time, if principal account is
not paid by him on that date.
iv. Purchase and Discounting of Bills
This is also a unique type of financing. Bank purchases the bills from its
own client at lower value but when bills are discharged, then amount
received will be more than that purchased value. This is mostly happened in
case of export and import transaction. In addition, markup on these bills is
received at the time of purchase or negotiation.
Documents required:
Documents we mean those papers which are essential to provide facility. In
this connection, following are the documents in case three types of business
concerns:
In case of Sole proprietorship
77
 Security/lien paper.
 Collateral.
 Demand promissory note.
 Letter of continuity.
 I.D card
In case of Partnership
 Security/lien paper
 Collateral
 Demand promissory note.
 Letter of continuity.
 Partnership deed.
In case of cooperation (private limited)
 Personal Guarantee (Director)

 Charge Registration form (form 10).
 Memorandum & Articles of Association etc.
Creation of Charges:
When an asset/property is identified as a security against facility in an

agreement or document creating a borrowing relationship, a charge is said to
have been created. This charge can either be registered formally or remain
unregistered. A registered charge obviously provides a higher degree of
security.
A charge can be further classified according to its ranking, in the event of

default or liquidation. Thus it can be a First Charge, in case a lender's right
of appropriation of the property or its rates proceeds, in the event of
default/liquidation, is prior to any other lender's right. Similarly there can be
second or subsequent charge-holder would be entitled to recover his dues
only after the first charge-holder's dues are settled.
78
Monitoring/renewal of credit facility:
When credit team sanctions some loans to different clients then it becomes
essential for it to monitor the affairs of credit given to them, any during such
period if customer wants to extend his loan by accepting some other
conditions from credit team, then role of credit officer is very important to
monitor such affairs. However, this team looks after the condition of his
business as the repayment with markup amount can be assured to get. If this
feels that such concern is not doing well from certain period, then it would
take some measures to get loan back with markup immediately and restrict
to sanction loan further. Personal visits are also made by credit team as to
know the actual worth of property asset mentioned or deposited for security.
Application of Mark-up:
Markup is like interest rate, but it describes some what different from
interest rate. Entire interest rate was received by borrower either loosing or
gaining but in markup bank purchases goods from borrower by lending
money on the terms of repurchase the goods by banks from customer. In this
way, bank gains some amount on sold goods and makes sure to its receipts.
From following calculation of mark up we can understand the application of

mark up.
Mark up = Principle Amount x Rate x Days
365
Shipping Guarantee:
This is the "Guarantee" given by the bank for the importer's creditability to
show the documents. This sort of guarantee is due to avoiding "Damage"
79
which is incurred by the shipping authorities, if the goods are not released
from port within specific time.
When documents are not received by importer and he wants to resale goods,
then he gets shipping guarantee from bank through equivalent amount of
letter of credit must be in account of the bank.
Bank takes guarantee of importer that original documents will be submitted

at later date. Any discrepancy in documents will be part of the bank, but it
also takes undertaking from importer that discrepancy will be his part.
How do bank earn money?

Most people think that bank gives profit its customers so how can it earn for
itself. I had a personal interest in this question.
While my internship I came to know about that. If bank gives profit to its
customers (on term deposit or saving account) then on other hand bank also
give loan to its customers.
It is a universal rules of banks that markup charged on loan is always higher
than the profit that bank pays to its customers.
For instance a bank offers a profit of 10%to its customers, while at the same
time bank charge a markup of 22% from those who have taken loan facility
by bank.
It means there is a difference of 12% in profit and markup by bank. But bank
face some hidden charges too. The profit that bank gives to its customer
exceeds due to the services and facilities bank provide its customers with.
These services include following
Entertainment ( tea , juice etc)

Staff Salary
Atmosphere (lights, air conditioner etc)
These all makeup about 5%. So if we deduct 5% more from 12% then only
6% remains and this is the actual salary (earning) of the bank.
Bank also earns through other ways like

 Cheque returning charges
80
 P.O, D.D stop payments.
 Markup on Trade.
 Advising letter charges.
 Service charges for Trade.
 Buying and selling of foreign currency.
 Loan markups.
 By investment
After paying profit and giving loans, if bank still had huge amount money,
then bank invest that money in industries and other mega projects in the
country and thus through that, earn profit.
Bank also gives loan to STATE BANKOFPAKISTAN for its use. And
charge markup from SBP. These are the ways which I came to know by
which bank earns profit.
81
I.T Department
82
IT (Information Technology) Department
In Atlas Bank limited, the staff is provided with latest office equipment.
Each and every staff member has a latest computer on his work table.
Instead of typical heavy and spacious CRD monitors and large CPUs, atlas
bank provides its staff with latest HP LCD monitors and Hi-Tec CPUs,
which are slim, requires very low space and gives an executive look to the
table. There are Laser/optical mouse for computers which are easy and
reliable in use. On every floor there is a top class Scanner of Cannon, a well
known electronic brand, furthermore there are four latest HP Laser jet
printers, one on each floor. All the computers on that particular floor are
connected to printer on their floor through bus network, which is most easy
and reliable network.
Latest Photocopy machine and Fax machines of Cannon are also available
for the easiness of bank employees. So that employees don’t have to look for
these facilities out of the bank.
Mr. Khurram Rasheed is the IT manager of Atlas Bank Limited,

Faisalabad. His job is to recommend bank with all the latest software and
machinery .His also has to maintain the online connection among all the
branches that are included in Centerl-2. He also has to provide the branch
with all computer software for banking, which is not pirated. If in case due
to connection break-up of system due to any reason then he has to
repair/solve it in short time so that the online banking should not be affected.
The bank has latest security system including electronic code locked cash
counter doors. Security Alarm, smoke detector fire alarm.
Atlas Bank tries its best to comfort both its employees and customers. For
this, Atlas bank as token Ticket machines so that customers don’t have to
wait in long queues. By this service they only have to wait for their turn
while sitting in the comfortable atmosphere of bank.
“Atlas Bank Limited is one of the best I.T availing institutions. In Atlas
Bank, the staff is provided with latest office equipment including electronic
equipments like LCD Monitors, high speed CPUs, Laser jet printers,
Photocopy and Fax machines and with high speed internet for fast online
83
banking. This not only benefits bank staff but also is secure for customers.
These all play key role in increasing bank efficiency” said Mr. Khurram
Rasheed.
84
CONCLUSION
If I have to express my experience of internship in Atlas Bank Limited

Kotwali Road Branch, Faisalabad, I would briefly say:
Atlas Bank is a good Organization in the way that anybody can join it for
his/ her long-term career. Overall working environment is very comfortable.
Management of branch cares a lot of its employees and considers them as
the Asset of bank. Behavior of senior executive of bank is very polite,
friendly. They are caring and concerned about the individual’s career and
their growth.
However management is very demanding about the targets, but good reward
is awarded on the achievement of assigned targets.
Employees at Atlas Bank are quite efficient. They are struggling by leaps
and bounds to bring their bank among best. Therefore, they spend extra
hours on working than their actual working hours and it is all according to
their will. It also shows their loyalty and commitment to their organization.
Employees are given the benefits like bonus, gratuity funds, loans,
increments, and medical.
All the customers are entertained individually. Same kind of behavior and
attention is given to all the customers. Getting suggestions and feedback for
improvement by customer side is also valued at Atlas Bank. All the
customers are asked to fill a suggestion form in order to improve the
facilities for customers through them.
Prioritizing its product portfolio in line with its corporate and consumer
needs and wants the bank is committed to develop products that give more
value to its customers in both the sectors.
In Atlas Bank, the staff is provided with latest office equipment including
electronic equipments like LCD Monitors, high speed CPUs, Laser jet
printers, Photocopy and Fax machines and with high speed internet for fast
online banking. These all play key role in increasing bank efficiency.
85
I found my internship training at Atlas Bank to be a very rewarding
experience. The training was beneficial as it helps me to be aware of
practical working experience in bank environment.
So far my learning is concerned; all the employees at branch were very

cooperative and guiding. They helped me to understand the activities of a
bank to possible extent. Their polite and friendly attitude gives me
confidence as well as encourages me to learn more and to ask about any
query I have in my mind.
Besides of their ever going tough and hectic routines in bank, they never get
irritant by my more than too much questions. In Atlas Bank I was never
overlooked when I ask for help.
I have made an honest conclusion of what I’ve observed and experienced in

Atlas Bank Limited, Faisalabad in simplest way.
I feel pleased and honoured that I have really gained a lot during six weeks
& benefit from working with experienced, cooperative & intellectual staff.
86
RECOMMENDATIONS
Internship in Atlas Bank Limited was an interesting experience for me as I

was never aware of the complexities of banking system. The staff was highly
cooperated and due to their help I learned big deal about modern banking.
I suggest that such an internship programs are highly integrative for the
students of commerce and business administration, so that students may
come to know how their theoretical knowledge works in practical world. In
short, it would help me a lot in selecting my future career.
I am not even close to that much skill and experience that the staff of Atlas
Bank have, but I do have some suggestions, which in my opinion will enable
the bank to compete with other banks more effectively & efficiently.
 The employees should be signed jobs for specific period and then they
should be shifted to other department so that they get proficient and
skillful in all operations of bank.
 Atlas Bank Limited should properly advertise and communicate to

public about their services, so that more customers will be attracted.
 Audit should be held internally. Infact, there should be an Audit

Department in the branch to make audit on daily basis. It would be
helpful as different banks are having this department of their own.
87

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Atlas Bank Internship Report - Faizaan Khan

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Faizan Safdar

Comsats Institute of Information

Atlas Bank Limited

3rd August to 12th September

I dedicate this report to my parents and friends in recognition of their worth

Banking sector owes a pivotal importance in the economy of

This report is an upshot of my six weeks internship in Atlas

Although, a derisory period of six weeks is not enough to learn

Progress Through Transparency .…………………………………….… 01

Background And Environment ……….………………………………….. 04

Service & Quality Department .………………………………………… 09

Customer service Department………….……………………………….. 12

Sales & Distribution

Foreign Exchange Department ……………………………………….. 51

Credit Department …………….………………………………………….... 63

I.T Department ……………..………………………………………….….… 75

Envisioned to operate as a progressive and dynamic banking entity, Atlas

Atlas Bank, having a futuristic approach, is positioned to improvise with the

From a diverse four decades of excellence, to a dynamic group geared to

Atlas Bank Limited is supported by the trusted equity of Atlas Group, a

Owing to Atlas Group’s strong credibility and progressive business outlook,

Banking industry acts as life-blood of modern trade and commerce acting as

However some of the definitions of bank from different authors are as

Depository financial institution: a financial institution that accepts deposits

According to Dr. Hart

“Banker or bank is a person or company carrying on business of receiving

 Central Bank or State Bank

COMMERCIAL BANK: Commercial banks are profit earning concerns.

EXCHANGE BANK: The main function of the exchange bank is to finance

INDUSTRIAL BANKS: Commercial bank cannot afford to block their

AGRICULTURAL BANK: Agricultural bank provides short and long

INVESTMENT BANK: The main function of investment bank the

 Service & Quality Department

Tasks & Functions

I spend four days of my internship in Service & Quality Department of Atlas

The cash department is the most important department of the bank. It

In Fsd branch of Atlas Bank Limited from where I am completing my

o Three COs (Cash officers).

This department involves in two activates:-

1. Deposit cash in customer’s account

2. Make payments from customer’s account

COs (Cash officers):

Deposit Cash In Customer’s Account:

When the customer want to deposit amount in his account at opening of

Make Payments From Customer’s Account:

When the customer draws a cheque on the bank to pay a

Cheque encashment procedure:

 Cheque is drawn on ABK

Computer Terminal Process:

The cheque is received in computer terminal, where the computer operator

Additional Task of Cash officer:

CO on payment counter receive all the bills of money used on internal

CSM (Customer service Manager):

Customer service manager is the head of CSD and he have to

Legally there are two kinds of crossing

General Crossing: In case of General Crossing the payment can only be

Special Crossing: In case of Special Crossing the payment can only be

o Two Business Development Officers (also known as Relationship

Business Development Officer:

Types of Accounts (products):

Saving account has further two types.

Businessman Basic Banking Rozana PLS Bonus PLS