Internship Report of Askari Bank Ltd.


Syeda Mariam Nida

Submitted in partial fulfillment of the requirements for the degree of Master / Bachelor of Business Administration At National University of Modern Languages Islamabad, Pakistan June 2010

© Copyright by Syeda Mariam Nida, 2010
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Internship Report of Askari Bank Ltd.

"I owe immense sense of gratitude to my beloved Parents & family members who not only support me financially throughout my career and also gave confidence to me. I also dedicate the project to my teachers and friends who remained the source of encouragement throughout. At the last very humbly raising my hands to pray for success in world, good health and long life of my parents and teachers whose encouragement and prayers enable me to complete my studies".

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Internship Report of Askari Bank Ltd.

By the Grace of Almighty Allah, the most Merciful, the most Beneficial, I'm today submitting my internship report; I have the pearls of my eyes to admire the blessings of the compassionate, omnipotent, the Merciful and the beneficent Allah who is the entire source of knowledge and wisdom. Further more, I would like to acknowledge the help on this as well as many other writing projects over the years that I received from my teachers who taught me over the whole of my course in this university. Second, 1 want to give special thanks to two of my teachers who specially helped me in making this project i-e Madam Hina Shahab. Next, I would like to acknowledge the interaction that I have had with my colleagues, Sir Abid, Sir Sajjad Haider, Sir Rizwan Malik, Miss Uzma, Sir Aftab Iqbal, and Sir Tahir Jamil during my internship in the Askari Commercial Bank (G.T Road Branch, Kharian.) and helped me to learn a lot. In particular I would like to acknowledge the total support and standards of excellence provided by my teachers and long time Management Sciences staff. I can never forget the education, encouragement, and scholarly values that I received from all the teachers when starting out in my academic career. Over the course, I would have been very lucky to have been associated with excellent management students; I would like to thank them all for teaching me as much as I have learned from them.

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NUML Page 4 . Demand Finance. In remittance department like any other bank NBP also have instruments for transferring of money. specialized . This department works under the accounts department and deals with cash deposits and payments. Mail Transfer. Export Refinance Part I (Pre Shipment) & others. Exchange Banks. cash department both deposits and withdrawals go side by side. Cash balance book. Paying-in-slip. State Bank of Pakistan. Foreign bills purchased. Letter of credit facility is being provided by ACBL in foreign exchange. Party dealing with other banks financial condition of borrower business and as a first step credit proposal is being made. Bank provides this facility to the people who need advance money to meet their requirement. Finance against foreign bills. 1948. Commercial Bank of Pakistan. and ledger of account cash received voucher sheet. EXECUTIVE SUMMARY The banking structure in Pakistan comprises of the following types. Cash paid voucher sheet. The State Bank of Pakistan issues the shares of these periodically. The network of bank branches now covers a very large segment of national economy. This department maintains the following sheets. Finance against imported goods. Cash Finance. The state bank of Pakistan is the Central bank of the country and was established on July 01. books. Cheque Book. Telegraphic Transfer. ACBL is dealing Foreign Currency Accounts. Imports & Exports. and Foreign Bills for Collection. In foreign exchange. This internship report is based on the job. which I did in Askari Commercial Bank as Internee in the Different departments from June 9th 2008 to July 26th 2008. Saving banks. Cooperative banks. credit institutions.Internship Report of Askari Bank Ltd. Bank employees and other common peoples can also purchase these shares and earn profit. Foreign Remittances.

NUML Page 5 . They play a dominant role in setting the framework of managerial decisions.Internship Report of Askari Bank Ltd. SWOT & PEST Analysis prepared primarily for decision-making.

6 Objectives of Askari Commercial Bank 11 1.4 Mission Statement 1.3 Vision statement 1.7 Organization Structure 1.5 Goals of Askari Commercial Bank 1.2 Advances 2. TABLE OF CONTENTS Title page Approval Page Dedication Acknowledgement Executive Summary Table of Contents Chapter-1 Introduction 1.1.2 History of Askari Commercial Bank 1.3 16 2.1 Deposits 2.1.1 Definition and purpose of Bank 1.3.1 Products 2.8 Level of Customer service. Rating & Achievements 12 Chapter-2 Product & Services of Askari Commercial Bank 2.1.1 (a) Local currency deposits 2.Internship Report of Askari Bank Ltd.1 16 NUML Page 6 09 09 10 10 11 11 15 15 15 16 Products Ask card .

4.1 Foreign Remittances Askari Commercial Bank ATM Chapter .2 Economic Trends NUML Page 7 Ask Ask Askari Askari Smart Master Traveler's power Cash Card Cheques 18 18 19 19 19 20 20 20 24 26 27 28 30 35 36 36 37 40 41 .3 Demand draft & Pay Order 2.2 Clearing Department Opportunities 4.4 17 2.3 Advances Department 3.4 Mail Transfer 2.2 16 2.5 Deposit Department Chapter No-4 ACBL SWOT Analysis 4.4.1 Political & Legal Environment Departmentalization 3.4.2 Telegraphic Transfer 2.6 Letter of Credit 2.1 Cash Department 3.4 Threats Chapter-5 PEST Analysis of ACBL 5.Internship Report of Askari Bank Ltd.3 17 2.4 Services 2.5 18 2.5 Bank Draft 2.4.4 Foreign Exchange Department 3. 2.1 Strengths 4.2 Weaknesses 4.3.

1 Worked In Different Department 52 Dynamic and Advanced Approach Customer Orientations and Personalized Service 52 Professional Style of Management Healthy.1 Recruitment and Selection 6. 5.2 Negative Dimensions of Experience and Learning Chapter-8 Conclusion and Recommendation 8.Internship Report of Askari Bank Ltd.4 Compensation 45 46 47 48 41 42 Chapter – 7 Internship Experience 7.4 Technological efforts Chapter-6 Human Resource Analysis of ACBL 6. Introduction 1st week 2nd week 3rd week 4th week 5th week 6th week Experience and Learning 7. Competitive Working Environment 53 Modern Banking Policies 7.3 Socio Cultural Environment 5.3 Performance and Evaluation 6.2 Training and Development 6.1 Recommendations NUML Page 8 50 51 51 51 51 52 52 52 53 53 53 56 .

3 References 57 59 NUML Page 9 .2 Conclusion 8.Internship Report of Askari Bank Ltd. 8.

CHAPTER 1 ORGANIZATION OVERVIEW NUML Page 10 .Internship Report of Askari Bank Ltd.

which can be used like money to make payments and purchase goods and services. This in turn allows the economy to grow by letting people to purchase cars or houses. loans that consumers and businesses can use to purchase goods and services. Enabling the flow of money from savers to investors is called financial intermediation and this is what banks are established for. and credit cards). lends. savings accounts and time deposits that can be used to save money for future use. which is extremely timeconsuming and inefficient. collects. and businesses to expand and build the new factories that the economy needs in order to produce more goods and services. by accepting money deposits from savers and then lending the money to borrowers. or safeguards money for its customers. banks encourage the flow of money to productive use and investments. banks play a key role in the way goods and services are purchased.ACBL 1. goods could only be exchanged by barter. invests.1 Definition and purpose of Banks Banking is the business of providing financial services to consumers and businesses. Second. The basic services a bank provides are checking accounts.2 History of Askari Commercial Bank The banking sector has witnessed a dramatic change during the last ten years with the NUML Page 11 ." Banking services serve two primary purposes: First. pays. Without these familiar methods of payment.Internship Report of Askari Bank Ltd. Introduction of Askari Commercial Bank Limited. A broader definition of a bank is "Any financial institution that receives. 1. transfers. by supplying customers with the basic mediums-of-exchange (cash. exchanges. checking accounts. and basic cash management services such as check cashing and foreign currency exchange.

which is not only redefining priorities and focus of the banks. The office of Army Welfare Trust is situated at AWT Plaza. with over 475.000 banking customers. AWT has itsunits as under: Askari Associates Askari Leasing Askari General Private Business Textile Mills Cement Industry Askari Commercial Bank The story begins with the incorporation of Askari Commercial Bank limited in Pakistan on October 09. Askari Bank has expanded into a nation wide presence of 140+ Branches. (he Bank had equity ofRs. and an Offshore Banking Unit in Bahrain. AWT offers the "AWT Saving Scheme" to the army officials only. Askari Bank Limited (ACBL) works as a Unit of Army Welfare Trust was established for the Welfare of Army Officials. While capturing the target market share amongst the view banks. 107.168 billion.118. The bank is listed on the Karachi. Its share price has remained approximately 12% higher than the average share price of quoted banks during the last four years. A shared network of over 800 online ATMs covering all major cities in Pakistan supports the delivery channels for customer service. Rawalpindi.016 billion and total assets ofRs. which have relatively limited opportunities as NUML Page 12 .Internship Report of Askari Bank Ltd. serviced by a total staff of 2. 1991. as a public limited company. 2004. but also threatening the domination of traditional players. Askari Bank Commenced (begin) to operations in April 1992. As on December 31. development ofAskari Bank. Askari Bank is the only bank with its operational head office in the twin cities of Rawalpindi-Islamabad. 6. Askari has provided good value to its shareholders. Lahore and Islamabad Stock Exchanges and the initial public offering was over subscribed by 16 times.

where most other banks have their operational Head offices. Integrity: To create relationship with the customers based on trust. Team Work: To work with the organization and to achieve the goal by mutual efforts.3 Vision Statement "To be the Leading Bank in the Region" 1. Askari developed a geographically diversified assets base instead of a concentration and heavy reliance on business in the major commercial centers of Karachi and Lahore. As a result. and forced as to evolve an outward-looking strategy in terms of Askari market emphasis. This created its own challenges and opportunities. • To build & sustain a high performance culture.5 Core Values / Strategic Goals of ACBL Commitment: To deliver quality services through innovative technology and effective resource management. 1. compared to Karachi and Lahore. Fairness: To be fair with the customers. delivering quality service through innovative technology and effective human resource management in a modem and progressive organizational professional culture standards. 1.6 Objectives of Askari Commercial Bank The following are the outlined objectives of the Askari bank limited. with a continuous improvement NUML Page 13 .Internship Report of Askari Bank Ltd. and to create fair relation. 1. providing maintaining enhanced high value ethical to all and our while stakeholders.4 Mission Statement "To be the leading private sector bank in Pakistan with an international presence. and to be fair the job. to make fair dealings. and to be a reliable organization for the customers. and contributing to society". of meritocracy.

• To maximize use of technology to ensure cost-effective operations. NUML Page 14 . customers. and sustainable shareholder returns and to continuously build shareholder value. where employees are motivated to contribute to their full potential. departmentalization is commonly product. Organizational is shown in appendix. "The process of grouping jobs according to some logical arrangements" called departmentalization. • To develop a customer-service oriented culture with special emphasis on customer care and convenience. • To effectively manage and mitigate all kinds of risks inherent in the banking business. efficient management information system. 1.7 Organizational Structure Organizations cannot function without proper arrangements for its specific tasks and duties.7. Askari Bank has done its departmentalization forming a matrix structure. Following are the main divisions of the organization. • To build an enabling environment. Organizational chart of Askari bank shows the step by step relation from president to senior vise president then in branch hierarchy it shows the step bye step relation from vise president to peon. is For this purpose organizations are The divided basis into of departments. • To manage the bank's portfolio of businesses to achieve strong. 1. function and location.  Army welfare trust was established mainly for the welfare of army officials.Internship Report of Askari Bank Ltd. focus. enhanced delivery capability and high service standards. Organizational chart shows the linkage of employee to employee infect it covers every single individual who is working in one specific organization for common goal.1 Organizational Chart.

Askari General Insurance & Askari Leasing are registered at stock exchange. Askari Commercial   Askari Association deals with the share holding.8 Level of Customer Service. Askari Leasing 3. It's their constant endeavor to provide the most efficient and personalized service to customers.  1. Recently AWT invested their capital with Mobil named as "Askari  Mobil.  only. Rating & Achievements • Customer Services: Knowing your customer and their needs is the key to any business and success. Rawalpindi. 1.Internship Report of Askari Bank Ltd.  The office of army welfare trust is situated at AWT PLAZA AWT offers the "AWT Saving Scheme" to the army officials AWT has further as units. NUML Page 15 . Firstly produced "Nizam Cement".  Cement Industry. Private Businesses a) Textile Mill b) Cement Industry c) Petroleum 5. Askari Associates 2. Askari General Insurance 4. Their products and services are structured to touch and improve the quality of lives of all segments of society.

ACBL received Euro money and Asia money awards. Askari has A1+ rating for short-term obligations .Internship Report of Askari Bank Ltd. ABL have received prizes from the South Asian Federation of Accountants for "The Best Presented Annual Accounts" for the financial sector. • Awards & Achievements : Over the years. • Credit Rating: During the year. ACBL have received several awards for the quality of our banking service to individuals and corporate. respectively (the late being the highest possible in this category). For the past four years. They have structured and syndicated financing arrangements working capital finance.000 relationships. financing of international trade. customer credit. ' credit cards and investment products for the individual saver. Askari Bank has proved its strength as a leading banking sector entity. ACBL have been given the "Best Consumer Internet Bank" award for Pakistan by the same magazine for the year 2002. while the long-term rating stands at AA. by achieving the following firsts in Pakistani banking. for the services sector. which today exceeds 350. Askari Bank is proud of the pioneering role in providing the most modern technological 'service to its customer based. NUML Page 16 .1996 and 1997. These ratings signify a very high credit quality and very strong capacity for timely payment of financial commitments.the highest possible for the category. ACBL have been declared "The Best Bank in Pakistan" by the Global Finance magazine for the years 2001 & 2002. the Pakistan Credit Rating Agency (PACRA) maintained both our long term and shot term ratings at 'AA' and 'A+'. Balancing Modernization-Replacement (BMR) facilities. small business loans. Their products are as diverse as their market segments. In 1994. Askari Bank won the prestigious "Best Presented Annual Accounts" awards for 2000 and 2001 from the Institute of Chartered Accountants of Pakistan and the Institute of Cost and Management Accountants of Pakistan. in the ASSRC region. Over the years. Also.

Internship Report of Askari Bank Ltd.  First Pakistani Bank to offer on-line real time banking on a countrywide basis.  First Bank with a nation-wide ATM network  First Bank to offer Internet Banking Services  First Bank to offer E-Commerce solutions NUML Page 17 .

Internship Report of Askari Bank Ltd. CHAPTER 2 PRODUCTS & SERVICES OF ASKARI BANK NUML Page 18 .

1 (a) Local currency deposits: • Current Account • PLS Saving Account • Term Deposit • Notice Deposit • Askari Faida Account • Askari Special Deposit Account • Value Plus Saving Account • Askari Advantage • Askari Faida Account • Installment account • Compound advantages NUML Page 19 . Products and Services: The product & services of Askari commercial bank limited are developed keeping in view the customers needs & wants. ACBL offers the following financial services to its customers.1 Deposits One of the basic functions of commercial banking is to receive deposits. ACBL accepts deposits in both local & foreign currency 2.Internship Report of Askari Bank Ltd. & the expectation that the customer attaches with its financial institutions. 1) Deposits 2) Advances 3) Products 4) International banking services 2.1. A product ACBL includes all those services which customer normally required for effectively managing his business.1.

ASKCARD has been introduced as a shopping companion. Business finance 4. Value plus 7. It lets the customer do shopping. 2. The card offers remarkable convenience for: • Everyday purchases NUML Page 20 . it is a "stored value" card. Askcar (car finance) 5. Although.1. Askpower 2. 1-Net Banking and at all designated Point of Sale terminals.Internship Report of Askari Bank Ltd. anytime.3. transfer funds.3. It is an instant cash card that can be used at any ACBL ATM or other ATMs carrying 1-Link symbol. Traveler cheques 8. but unlike an ATM or debit card. ACBL offer these facilities in two forms: • Funded facilities • Non-Funded facilities 2.1 ASKCARD: "ASKCARD" is an Askari Bank's Debit Card. 1. dine at restaurants. ASKPOWER is not connected to any account. Personal finance 2 Mortgage finance p. 2.2 ASKPOWER: ASKPOWER is the name for Askari Bank's Pre-paid Card. pay their utility bills.3 Products.2 Advances: Advances are major sources of earning of income for commercial banks. Banks attracts surplus balances from the customers at low interest rates & makes advances at higher interest rates to the individuals or business firms. Askcard 6. withdraw and deposit cash through ATM anywhere.

ASKPOWER has its own built-in spending limit. private. • Money can be conveniently loaded to any card either by depositing cash at any ACBL Branch or through the ATM • I-Net Banking from another ASKPOWER Card. Key Features: • Issued to ACBL / Non-ACBL customers. special occasions. damaged or defective card. • Payment of bills •Safe alternative for carrying cash during traveling. the customer can set how much money is loaded to it and how frequently it is topped up. • The customer can withdraw cash from his credit line as and when they require.(NIC Card holders) • Minimum Issuance Limit: Rs. • Easy cash withdrawal through ACBL ATMs or ATMs carrying 1-Link or Orix Leasing network symbol. • 100% customer acceptance. theft. NUML Page 21 . 24 hours a day. and emergency back up. • Instant access to money. 7 days a week. • Card can be reloaded anytime.3ASK SMART CASH This personal line of credit is set up with a specified credit limit agreed upon by customer and ACBL. safe and secure option for cash transfers. • Payment of Utility Bills through ATMs and Internet. • Transfer of money from one card to another card. 2. • The markup is charged only on the utilized amount and for the number of days the credit is used. • The ideal accessory for students • As a pre-paid card.3. • Replacement of card in case of loss.Internship Report of Askari Bank Ltd. 500/-. • Easy transfer of money from one ASKPOWER card to other ASKPOWER card. • Fast.

Internship Report of Askari Bank Ltd. • Traveling safety net In case the travel tickets are purchased on Askari master card.3. • Finance Amount up to Rs 1 Million revolving credit line 2.5 ASKARI TRAVELER'S CHEQUES: Askari Bank's Travelers Cheques are available in the denomination of Rs. They can be brought against cash or debit to the personal account of the customers • The customers are charged only 0. they are automatically covered under the travel insurance plan for up to Rs.10% commission whenever the traveler cheque is encashed after 30 days of holding • High security lithograph • Ultra violet printing • Special thread • Anti scanner pyramid design • Unique micro lines \ NUML Page 22 . The customer can receive their monthly billing in Pak Rs. It provides services at thousands of locations in Pakistan and over 14 million establishments all over the world. 2. • The markup is lower than a credit card.000/-.8 million on a gold card and Rs.l0.4 million on silver card. • Personal loan and balance transfer facility. regardless of the currency of purchase.3.the distinguishing feature of these travelers cheques are: • Light and safe • No service charges for purchasing Askari traveler's cheques.4 ASKARI MASTER CARD: The distinguishing characteristics are: • No joining fee • Worldwide acceptability: This card is acceptable all over the world.

ACB main branch Islamabad. Now a day.4. fax. the process will say to be within locality. this is known as within locality.e. send any draft to ACB Apara branch. It may be "inland remittance" or "Remittance" Inland remittance may be classified as: 1) Within locality. I. Within Locality: When a branch situated in Islamabad is required to send the draft to any other branch situated in the same locality.1 Foreign Remittances: Remittance department performs the function of remitting funds i.4 Services of Askari Commercial Bank 2. The big traders and businessman use this method of remittance in this method of remittance the purchaser is not responsible for the dispatch. new technology is used for this purpose i.e. e-mail.e. • Easily refundable in case of loss and theft 2. It is the quickest mean of transferring the funds from one place to another place by the use of telephone or telegraphic. to transfer funds for customers from one location to another.Internship Report of Askari Bank Ltd. 2) Outside locality. The transfer of funds may be from one branch to another or from one bank to another Remittances mean "the transfer of money or fund from one place to another place through bank". How One Can Apply: Telegraphic NUML Page 23 .4. 2.2 Transfer: Telegraphic transfer is an important mode of remittance.

Internship Report of Askari Bank Ltd.
The purchaser fills an application form in which he mentioned the sum of (T.T) name of payee, accounts number of payee and place of payment etc. The purchaser signs the application form and the bank charge the commission for this purpose. 2.4.3 Demand Draft & Pay Order: For safe, speedy, and reliable way to transfer money, ACB Demand Drafts and pay orders are available for customers at very reasonable rates. Any person whether an account holder of the bank or not, can purchase a Demand Draft from a bank branch. A demand draft is an order drawn by a bank on its branch or on another bank in a different place requiring the later to pay on demand the sum of money specified in the draft. Pay order is just like demand draft except the pay order is made for local transfer of money whereas demand draft is meant for remittances of funds from one city to another. 2.4.4 Mail Transfer: Mail transfer draft is one of the bank modes of remittance. Mail transfer is issued by one branch of bank to another branch of the same bank by instructing to branch to pay the other branch by issuing mail transfer receipts. In M.T the purchaser is not responsible for dispatch, but the bank will be responsible for dispatch. How to Apply: The purchaser fills application forms, which includes the amount of M.T name of payee, account number of payee, name of the bank branch. Place of payment and signature of purchaser. Bank charges the commission for this service. 2.4.5 Bank Draft: Bank draft is the most important type of remittance. Draft is an instrument issued by a bank. Draft is issued by one branch to another branch out of the city. The difference branches of same bank can issue the bank draft to each other and
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Internship Report of Askari Bank Ltd.
it is also called the banker cheques i.e. the main branch of ACB in Islamabad issued the draft to the ACBL Daska. 2.4.6 Letters of Credit ACBL is committed do offering its business customers the widest range of options in the area of money transfer. If you are a commercial enterprise then our letter of Credit service is just what you are looking for. With competitive rates, security, and ease of transaction, ACBL Letters of Credit are the best way to do your business transactions. 2.4.7 ATM; Automated Teller Machine is a hi-teq. Invention in the field of the banking, it facilitate that a depositor can withdraw money at any time without the need of banking personnel. We can also deposit money with the help of this machine. But it is not so much practiced here because of sonic drawbacks. In these terms and conditions, "Cardholder" means the individual to whom the ATM Card is issued, "Bank" means Askari Commercial Bank Limited and "Bank Account" means the account of the Cardholder maintained with the Bank. 1. The issue of ATM card (ASKCARD) entitles the Cardholder to avail the facilities of the Bank's Automated Teller Machines (ATMs) also referred to as machines. 2. It is a condition of issue and use of the Card that the Cardholder maintains a Current or PLS-SB Account with the Bank at one of its branches in Pakistan. In the event of the stopped for any reason, whatsoever the Card shall immediately be returned to the Bank by the cardholder and its validity shall cease to have any effect on the date of such closure of A\C henceforth. 3. The card shall remain the property of the Bank at all times. The bank may, at its sole discretion and without prior notice, cancel or refuse to re-issue or renew the card or suspend its use for the time being and

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Internship Report of Askari Bank Ltd.
call for its return at any time, in which case the Cardholder shall immediately return the Card to the Bank.
4. The cardholder shall be responsible for the payment of any taxes,

duties, levies, which may be attracted, to payments related to the issuance and use of the card by the cardholder.
5. The








Identification Number (PIN) to any other person. In the event of the PIN becoming known to someone other than the cardholder, that person may be treated by the Bank as an acting agent of the cardholder. The Cardholder indemnifies the bank against all losses or damages which may occur as a result of the PIN becoming known to anyone else from any source whatsoever.
6. The bank shall not be responsible for any loss or damage arising

directly or indirectly from any malfunction of the Card or ATM or any technical or non-technical defect or breakdown of the machine and/or any part thereof or the temporary non-availability of case in such machines. 7. Except as otherwise prescribed by law, ACBL shall have no responsibility or liability for any act or omission or inability to perform any of its obligations hereunder which results from any cause beyond ACBL's control. 8. The Cardholder agrees to accept that any cash or instrument(s) delivered through ATM with the use of Card shall be, for the all the purposes, at the entire risk and sole responsibility of the Cardholder. The bank would hence be assuming no responsibility whatsoever in this behalf. The Cardholder understands and accepts that the crediting of account, as specified on the frontal side of the envelope, designed for the purpose, will be subject to: I. In the case of Cash Delivery: Upon physical checking and verification of the currency note(s) that would be found contained in the envelope,

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mislaid or stolen or if it comes into the hands of a third party. in any way. The Cardholder also expressly waives its rights to. The amount stated on the ATM screen or on the printed transaction record/slip shall not for any purpose whatsoever be takes as conclusive of the status of the Cardholder's account with the bank. and confirmation of the correctness of the particulars mentioned on envelope. whose count.Internship Report of Askari Bank Ltd. IV. III. V. He shall notify the Bank immediately if the Card is lost. NUML Page 27 . The Cardholder shall take every possible due and proper care to prevent the Card from being lost. II. In the case of Delivering the Instrument(s): Upon checking and confirmation of the correctness of the particulars of instrument(s) that would be found contained in the envelope and after its clearance and/or realization of its proceeds through lodgments in collection as per procedure. VI. The Cardholder further undertakes to accept full responsibility for all transactions made by the use of the Card whether or not made with his/her knowledge/authority or consent and he/she shall accept the Bank's record of transactions as binding for all purposes. checking and findings will be accepted by the Cardholder as correct and final. question or challenge the same. mislaid or stolen and shall not pass the Card to any other person. The physical checking and verification of cash so delivered shall be carried out by the Bank through its two officials.

CHAPTER 3 DEPARTMENTALIZATION NUML Page 28 .Internship Report of Askari Bank Ltd.

its record should be kept.3 Advance Department 3.1. Main branch of Askari Commercial Bank in Daska deals with following departments. The Askari Commercial Bank is having more than thousand branches in the country. 3. 1881. one can say that a Cheque can be defined as an: NUML Page 29 . Since a Cheque has been declared to be a bill of exchange. The deposits of all customers of the bank are controlled by means of ledger accounts. 3. it must have all its characteristics as mentioned in Section 5 of the Negotiable Instruments Act.5 Foreign Exchange Department 3.1 Receipt The money. Therefore. 3. Every customer has its own ledger account and has separate ledger cards.3 Cheques and their Payment The Negotiable Instruments Act.2 Payments It is a banker's primary contract to repay money received for this customer's account usually by honoring his cheques.1.6 Deposit Department 3. Cash department performs this function.1.Internship Report of Askari Bank Ltd.1 Cash Department 3.2 Clearance Department 3. which either comes or goes out from the bank. 1881 "Cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand".4 Remittance Department 3.1 CASH DEPARTMENT Cash department performs the following functions 3.

1. a specified person or to the bearer.Internship Report of Askari Bank Ltd. It can only be credited to the payee's account. "An unconditional order in writing drawn on a specified banker. 3. signed by the drawer. a drawee banker and a payee. c) Crossed Cheque These cheques are not payable in cash at the counters of a banker.1. and which does not order any act to be done in addition to the payment of money". It can also be collected through clearing.5 Parties to Cheque The normal Cheque is one in which there is a drawer. or to the order of. a) It should be in writing b) The unconditional order c) Drawn on specific banker only d) Payment on Demand e) Sum Certain in money 3.1. but in order to fulfill the requirements mentioned in Section 6 above the Cheque must have the following. 3. or no payee but bearer. If there are two persons having NUML Page 30 . These can also be collected through clearing.6 Types of Cheques Bankers in Pakistan deal with three types of cheques a) Bearer Cheques Bearer cheques are cashable at the counter of the bank. requiring the banker to pay on demand a sum certain in money to.4 The Requisites of Cheque There is no prescribed form of words or design of a Cheque. b) 0rder Cheque These types of cheques are also cashable on the counter but its holder must satisfy the banker that he is the proper man to collect the payment of the cheque and he has to show his identification.

which enables banker to settle check and other instruments.7 Payment of Cheques It is a banker's primary contract to repay money received for his customer's account usually by honouring his cheques. This facility of net inter bank payment is provided by the clearinghouse. one of the account holder issues a cross-Cheque in favour of the other account holder. Payment of money deposited by the customer is one of the root functions of banking. The representatives of the commercial banks deliver the cheques payable at other local banks and receive the cheques drawn on their bank. 3. However the bankers' legal protection is only when payment is in 'Due Course'. safe and most efficient way is to offset the reciprocal claims against the other and receive only the net amount owned by them. accounts at the same bank.1. The cheques are then sorted according to 'he bank on which they are drawn. which receive money from the public. in good faith and without negligence to any person in possession thereof under circumstances. Then the cheque will be credited to the account of the person to whom the cheque was issued and debited from the account of the person who has actually issued the cheque. clearinghouse is a device. Askari Commercial Bank Limited is the member of SBP Clearing House and receives checks The easy. and repayment to them. 3. The representatives of the local commercial banks meet at a fixed time on all the business days of the week. The payment in due course means payment in accordance with the apparent tenor of the instrument. This paying function is one. The meeting is held in the office of the bank that officially performs the duties of clearinghouse. The acid test of banking is the receipt of money etc. which is the distinguishing mark of a banker and differentiates him from other institutions. from the depositors.2 Clearing Department In clearing department.Internship Report of Askari Bank Ltd. drawn on each other. which do not afford a reasonable ground of believing that he is not entitled to receive payment of the amount therein mentioned. It is a contractual obligation of a banker to honor his customer's cheques if the following essentials are fulfilled. A summary NUML Page 31 .

3.3 Advances Department The Credit Management Division of Head Office directly controls all the advances. III.3. After filling up the application the signature of the party has to be confirming from their deposits or accounts they have. All details of the cheques are recorded in this book.2 Out-Word Clearing Books The bank uses outward clearing register for the purpose of recording all the details of the cheques that the bank has delivered to other banks. sheet is prepared which shows the names of the banks. 3. NUML Page 32 . the total number of cheques delivered and received by them.2. First the application comes in the branch. Totals are also made of all the cheques presented by or to each bank. business. As we known bank is a profit seeking institution. After that proposal of advances is consider which includes all particulars about the party such as their name. 3. Each bank then receives the net amount due to it or pays the net amount owed by it. 3. how much advance they need? Why? Securities.1 In-Word Clearing Books The bank uses this book for the purpose of recording all the cheques that are being received by the bank in the first clearing. margin etc. It attracts surplus balances from the customers at low rate of interest and makes advances at a higher rate of interest to the individuals and business firms.Internship Report of Askari Bank Ltd. The difference between the total represents the amount to be paid by a particular bank and the amount to be received by it. However. it is a very risky task and the risk cannot be completely eliminated but could be minimized largely with certain techniques. because it is the main source of earning.2. Credit extensions are the most important activity of all financial institutions. at the same time. II.1 Procedure of Advances: Following are the steps regarding the sanction of advantages: I.

3.3. and if the request is legal then H.2 Credit Worthiness The following five C's are pillars of credits management for determination of credit worthiness of a borrower. Now this proposal of advance is forward to H. b) Character reference forms other valued customers. make it approved for further processing otherwise cancel the proposal.O.3. Following are three sources of loan repayments.O.3.4 Collateral Securities may be in the name of borrowers or in the name of third parties. 3.3 Capital What is the volume of the wealth put into business by proprietor or partner of shareholders in case of limited companies? What is the ability of these entrepreneurs to meet up emergency losses? 3. which scrutinize proposal.5 Conditions NUML Page 33 . Usually securities against which the finance as allowed are called "Primary" whether in the name of borrower or third partners that are offered by the borrower in addition to primary security/securities are called collateral securities.Internship Report of Askari Bank Ltd. Banker's opinion regarding the character may be establishing on the basis of following source of information: a) Past credit history showing willingness and ability to pay.1 Character The expected borrower must be selected as a 'good citizen' in all respects.2.O. IV. 3. V.3.2.2. c) Market reputation 3.. set some conditions regarding advance. After the approval the H.3.2.2 Capacity The ascertaining of the capacity of the borrower to repay its obligation carries a great importance to a banker.2. 3. 3.

Letter of credit state the limit of credit and the time during which it id held at the disposal of grantee but they are neither negotiable nor transferable.1 LETTER OF CREDIT Letter of Credit is very useful instruments in facilitating commercial relations between businesses at various places in the world. Foreign exchange department in all prominent branches like city branch. Installation/operating /maintenance manual. In this way different banks get checks drawn by the customers on one another.4. Before issuing the letter of credit the bank demands the following documents: 1. 3. Invoice 2. Chamber of Commerce branch and many others branches engaged in foreign exchange demand draft and other negotiable instruments for the presentation of its payment and also provides excellent services for clearing checks and other inter bank obligations between the banks. NUML Page 34 . services. Terms and conditions must be properly assessed before allowing any finance and especially in case where the transactions involve more than one country like opening of letter of credits or issuance of letter of guarantees. Foreign exchange services includes accepting deposits. 3. foreign exchange bearer certificates. Airport branch. So. foreign currency remittance.4 Foreign Exchange Department Askari Commercial Bank is providing services of foreign currencies through foreign exchange department. to off set the inter-bank claims 14 branches of SBP are providing clearing facility for scheduled of banks whose accounts and services are maintained with it. issuing foreign currency travelers cheque.Internship Report of Askari Bank Ltd. providing imports/exports services. Purchase Order 3. Import/export license 4. It is easier for member banks to adjust their claims against each other in the books of the state bank.

Opening bank sends letter of credit their correspondent bank in beneficiary's country for advising to beneficiary such bank is called Advising Bank. Confirming Bank (if any) 3. They agree to certain terms to be incorporated in the letter of credit. importer's bank opens a Letter of Credit. for release of goods.4. hence after be called as beneficiary. as negotiating bank.Internship Report of Askari Bank Ltd. Importer applies to his band of opening of LC. Advising Bank 4.2 Documentary Letter of Credit Parties to a letter of credit: 1.3 Mechanism of Letter of Credit Importer and Exporter enter into a contract through Performa invoice to export and import goods from one country to another. NUML Page 35 . After going through their internal procedure. forwards the letter of credit to beneficiary under their covering letter. and hence after is called opener or applicant. Beneficiary submits documents for negotiation to negotiating bank. Advising bank. On receipt of letter of credit the beneficiary ships the goods and prepares documents in terms of the LC for submission to bank nominated in the LC. (Negotiation means giving value of documents to beneficiary). Applicant/Importer 2.4. examines the documents to ascertain that these conform to terms of the LC. 5. On negotiation the negotiating bank claims reimbursement from the bank mentioned in the LC as reimbursing bank and forwards negotiated documents to opening bank. Opening bank on receipt of documents. Negotiating bank after having determined that documents are strictly in terms of LC negotiates the documents. documents are lodged and presented to opener for payment Opener makes payment for the documents and gets the documents from opening bank duly endorsed in his favors. Insurance 3. in favors of the exporter. who shall. If found in order. Issuing Bank 3. after establishing its authenticity.

• Formal Application • Introduction • Specimen Signature • Minimum Initial Deposit • Operating the Account 1.1 Account opening The opening of an account is the establishment of banker customer relationship. There are certain formalities.5. Negligence IV.2 Qualification of Customer NUML Page 36 . Issuing Cheque Book 3. I. Safe guard against unintended over draft III.5 DEPOSIT DEPARTMENT It controls the following activities: a) A/C opening. Preliminary investigation is necessary because of the following reasons. the banker should determine the prospective customer's integrity. occupation and the nature of business by the introductory references given at the lime of account opening. c) Current a/c 3.Internship Report of Askari Bank Ltd. which are to be observed for opening an account with a bank. Inquiries about clients. Pay-In-Slip Book 2. 3. respectability. Pass Book 3. b) Issuance of cheque book. Before a banker opens a new account. Avoiding frauds II.5.

 Term Deposit. That’s why it is similar to current account. he must have the following basic qualifications. The minimum deposit for opening the account is Rs.  Notice Deposit.05 million at the end of the month. no interest is paid.  Askari Bachat Certificate. When a banker accepts a demand deposit. It is necessary for this account that the client must maintain a minimum balance of Rs. Current account is mostly opened for business.0. Type of Accounts:  Current Account. It is also chequing account because cheques can be drawn on it.  Saving Account.Internship Report of Askari Bank Ltd. however.100/Askari special deposit accountant (ASDA ACCOUNT): ASDA account is an interest bearing current account interest is paid on it at the rate of 8. where as the rate of return with aspect to the amount of minimum deposit clear from deposit schedules in annexure. Current account: In current account there is no interest on it. The relation of the banker and the customer is purely a contractual one. NUML Page 37 .  Askari Special Deposit Account.5% six monthly. Saving account: The purpose of this account is to induce the habit of saving individuals in the neighborhood. It is for only transaction purposes. As there is no profit paid on this account it is also called chequing account because cheques can be drawn on it. They are paid on demand. The profit is PLS saving and ASDA Accounts in ACBL are chequing accounts paid on the basis of profit and loss sharing at the rate of 8. he incurs the obligation of the paying all cheques drawn against him to the extent of the balance in the account. The payment of return is monthly.00%.

5000/.Internship Report of Askari Bank Ltd. At the end of the specific period. If ACB is for 3 years. One of them is "Askari" Advantage one month. Requirements for issuing cheque book a) The account holder must sign the requisition slip NUML Page 38 . These are not term deposits because payment of return is on monthly basis rather than on maturity of deposits. Asian Bachat Certificate: ACB's are long term fixed deposit for 3 and 5 years. and the minimum balance requirement is Rs. but only payment of return is made monthly. The rate oftetum on this account is 12. Notice deposit is of the two kinds: • One for which a prior notice of 30 days and above is required from the customer before with drawing deposited amount and for which rate of return is 8% • Second for whom a prior notice of 30 days and above is required from the customer before with drawing the deposited amount and for which rate of return is 10%.4 Issuing of Cheque Book: This department cheque books to account holders. the customer is allowed to with draw the principle amount.5.and payment is drawn on maturity of the specific period. the rate of return for 3 years is 12%.25000/. ACBL term deposits are of types clear in the deposit scheme in the Annexure. if ACB is for 5 years the rate of return is 13. Notice deposits: Notice deposits are kind of fixed deposits.5000/-. The term deposit account varies from one month to 5 years. 3.and maximum balance requirement is Rs. The minimum balance requirement for opening the account is Rs.0 million. That's why it is not a chequing account.0% for 4 years. Because in such account the balance is kept for either '3' or '5' years within the bank no cheque is drawn on it.00%. Term deposits: A term deposit is a deposit that is made for a certain periods of time.1. The minimum balance requirement is Rs.

There is no restriction on the withdrawals from the sit accounts but the amount of money withdrawn is deleted from the amount to be taken for calculation of products for assessment of profit to be paid to the account holder. This is because the depositors may withdraw Current Account at any time. 3.6 Saving account Savings Deposits account can be opened with very small amount of money. failing which incidental charges are deducted from such accounts.Internship Report of Askari Bank Ltd. he incurs the obligation of paying all cheques etc.5. and as such the bank is not entirely free to employ such deposits. Because of their nature. It discourages necessary withdrawals from the deposits. a) Post dated cheque b) Stale cheque c) Warn out cheque d) Wrong sign etc NUML Page 39 . Profit is paid at a flexible rate calculated on six-month is under the Interest-Free Banking System.5 Current account These are payable to the customer whenever they are demanded. b) Entry should be made in the cheque book issuing book 3. drawn against him to the extent of the balance in the account. and customers are required to maintain a minimum balance. Bankers in Pakistan do not allow any profit on these deposits. and the depositor is issued a cheque book for withdrawals.5. these deposits are treated as current liabilities by the banks.5.7 Cheque cancellation: This department can cancel a cheque on the basis of. When a banker accepts demand deposit. 3.

CHAPTER 4 ACBL SWOT ANALYSIS NUML Page 40 .Internship Report of Askari Bank Ltd.

4 Automatic Operations: The operations performed by the bank are highly automated that result in assurance for the customers that their transactions are completed reliably. opportunities and threats. Customers of ASKARI BANK. NUML Page 41 .1 STRENGTHS: 4.1 E. 4.1. where customers receives highly privileged services in a highly elegant environment.1.Internship Report of Askari Bank Ltd.2 Askari Atm: The bank has the largest ATM Network across the country. It gives the chance of experiencing new standards in banking. can withdraw and access their accounts at any time through ATM Sites with one link. SWOT is an acronym for an organization’s strengths. 4. A SWOT analysis consists of sizing up a firm’s internal strengths and weaknesses and its external opportunities and threats in order to get an overview of the organizations strategies and its environment. efficiently and securely. efficient and quick services saving the time and costs of the customers |aid fortunately ACBL is among those few banks who are already reaping the benefits of electronic transactions. 4.1. Banking: The revolution in the banking in the form of electronic banking operations have opened avenues of excellent. The basic purpose of such an analysis is to develop strategies along with exploiting opportunities and strengths and neutralizing threats and removing weaknesses.3 Customer Centered Banking: The priority banking centres are established in every branch of the bank. The SWOT analysis ofACBL as follows: 4. weaknesses. Priority Banking offers the very highest levels of penalized banking to match customer's unique status.1.

1. I personally observed that delay occurred in the operations of the employees only due to the fact that they had not got any instructions from the head office.5 Tele Phone Banking: Phone banking service is very attractive for those classes of customers who don't have time to personally come to the bank i.2 WEAKNESSES: In my opinions these.2.2. Employees are constantly rotated from one job to another job for the sake of having the complete know-how of all the departments.m. 4.6 Eight Hours Banking: One can avail the benefit of the services provided at the bank till 5:00 P. NUML Page 42 .1. 4. 4. 4.2. which is highly useful for those customers who find it difficult to leave their officers in the morning. banking on the phone line thus saving the precious time of the customers.1 Manual Banking: Although the bank has computerized accounting system but.2-Generalizaiton: This famous and useful concept given by Adam Smith in 1776 seems to be missing in the bank.Internship Report of Askari Bank Ltd. still the bankers use to make their entries in the accounting register 4. Almost all the decisionmaking is in the hands of the upper management.e. But centralization is effective up to a certain level otherwise it becomes inefficient and at times costly too. Otherwise the situation might be like this 'Jack of all an4 master of none. are the points that might be detrimental to the efficiency and profitability of the bank.3-Centralization: There is a high degree of centralization in the bank. 4. But I think this is not a very good tactics used by the management.

5.1 Reduction in Private Credit Investment NUML Page 43 . 10.5 Not Highly Automated: The bank has still some of the traditional ways of operations in this advanced technological environment. 4. It deals in bulk business: The bank can work for big business men more. Two more branches in remote areas: The bank can work for formers letter of credit facility. 3. Technology development and innovation. 4.4 Less Training Facilities: Presently there is no specific training given to the newly hired employees. the bank is facing the following threats and opportunities currently: These are positive external environmental factors effecting the organization. 6. 4. 1 Army accounts: Generally army persons prefer Askari bank.4. Apart from the ones discussed in External Factors Evaluation Matrix. Arrival of new technologies. 9. Sharp increase in imports and exports: The banks have to improve its . Islamic Banking: Bank can work more in Islamic banking b/c peoples want Islamic banking. Well established position with a well defined market niche.2. 1.3 OPPORTUNITIES. more. 4.2. An unfulfilled customer need.Internship Report of Askari Bank Ltd. Business and product development. 4. Only on the [job training is given to the new employee. 2. 7.4 Threats 4. 8.

2 Emergence of New Competitors The bank is facing threats with the emergence of new competitors especially in terms of foreign banks.4 Downsizing The bank is currently acting upon the policy of downsizing which threaten the environment of the bank Employees feel insecurity in doing their jobs and work.4. including reduction in private credit investment as a result of slowing down of economy as well as rising interest rates. mutual funds. NUML Page 44 . 4.Internship Report of Askari Bank Ltd. 4. The challenges to corporate business in year 2009 were manifold. The bank has to take initiative in this regard or will find itself far back in competition. The credit investment as a result of slowing down of economy as well as rising interest rates. The increasing pressure on the textile industry reduced the lending to this sector. These foreign banks are equipped with heavy financial power with excellent and innovative ways of promoting and performing their services.5 Customers Complaints There exists no regular and specific system of the removal of customer complaints. Now a day a need for total customer satisfaction is emerging and in their demanding consequences customer's complaints are ignored.4. 4. 4. In addition the bank's corporate loans yields also faced pressure as substitute form of funding sources are available in the market in form of Islamic financing.4. issuance of debt instruments like TFCs and Bonds and the Capital markets.3 Political Pressure by ElectedGovernment The ongoing shift in power in political arena in the country effects the performance of the (bank has to forward loans to politically powerful persons which create a sense of insecurity and demoralization in the customer as well as employees.4. hence affecting the overall performance of employees negatively.

Internship Report of Askari Bank Ltd. CHAPTER 5 ACBL PEST ANALYSIS NUML Page 45 .

1-Political and Legal Environment: Political factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate. global competition and the diversity of buyers preferences in many markets require the constant attention of the market vouchers to identify promises business opportunities. Identification of external and macro factors that influence buyers and thus change the size and composition of market overtime involves initially building customer profiles. Technological factors 5. A broad view of market is important when management is interested in introducing better services for customers. Current political situation of Pakistan is not very encouraging.Internship Report of Askari Bank Ltd. Because of political destabilization many foreign and local investors are not showing their interest regarding investment in Pakistan. evaluate changes in competitors positioning and guide the choice of which buyers to target and classify them according to respective segments. Political and legal environment 2. Socio cultural environment 4. Banks are strongly affected by the political and legal considerations. These influences include: 1. This environment is composed of regulatory agencies and government law that influence and limit various organizations and individuals. Economic trends 3. see the shifting requirements of the buyers. Rapid technological change. • • Tax policy Employment laws NUML Page 46 . Some of main political factors which effects banking sector in Pakistan. No one can make plane long term objectives or goals in Pakistan because of political destabilization in Pakistan.1.

7%. Low levels of spending in the social services and high population growth have contributed to persistent poverty and unequal income distribution. 5. Pakistan's extreme poverty and underdevelopment are key concerns.2 Economic Trends: The World Bank considers Pakistan a low-income country. dollar.Internship Report of Askari Bank Ltd. Yearover-year consumer price inflation averaged 13. and higher international commodity prices. The available borrowing power depends on  Consumer income  Saving rates  Consumption patrons  Rates of interest  Budget deficit  Exchange rates  Cost of living NUML Page 47 . The country’s economy remains vulnerable to internal and external shocks due to internal security concerns and the global financial crises.S. especially in rural areas. According to banking market it requires better consumer market in volume along with higher borrowing power. The population numbered some 167 million in 2008 with a 1.0% of adults are literate. the Pakistani rupee’s depreciation versus the U. and life expectancy is about 64 years.81% growth rate. Main inflation drivers include food and utility prices.6% in 2009.2-Business legislation has following main purposes: • To protect banking companies from unfair competition. the GDP growth rate was 3.1. GDP is around $166 billion at the official exchange rate. No more than 55. and unemployment was estimated at 14%. In FY 2008-2009. • • • Environmental regulations Trade restrictions and tariffs Political stability 5. •To protect consumers from unfair business practices adopted by banking companies • To protect the interest of the society from unbridled business behavior.

Internship Report of Askari Bank Ltd. Furthermore. Which arise because of change in sociocultural environment?  Consciousness about services  Concern for environment  Improved customer relation  Health consciousness  Population growth rate  Age distribution  Career attitudes  Emphasis on safety 5.4 Technological Factors: Forces of technological advancement. The NUML Page 48 . Trends in social factors affect the demand for a company's products and how that company operates. companies may change various management strategies to adapt to these social trends (such as recruiting older workers).have played the most dramatic role in shaping the lives of people. an aging population may imply a smaller and less-willing workforce (thus increasing the cost of labor).  Inflation 5. For example. A society is shaped by beliefs. People in a society consciously and unconsciously interact with:  Themselves  Others  Organization  Society  Nature Following are the main factors. The rate of change of technology has greatly affected the rate of growth of economy.3 Socio-Cultural Environment: Social factors include the demographic and cultural aspects of the external macroenvironment. New technology is creating deep rooted affects which could be observed in long run. These factors affect customer needs and the size of potential markets. norms and values.

Technological factors can lower barriers to entry. improvement techniques involved in on line banking. reduce minimum efficient production levels. and influence outsourcing decisions.Internship Report of Askari Bank Ltd. Some technological factors include:     R&D activity Automation Technology incentives Rate of technological change In brief PEST analysis affects the overall banking companies and provides us the information about the external macro condition. NUML Page 49 .


6. Reach out to professional organizations that are in line with the organization's mission. In this method ACBL focuses on skills and experience an applicant must possess. ACBL consider working with a recruitment firm in this method of recruitment. Of these. 1. ACBL follows two methods for recruitment. The keys to finding the right candidates at the right time and hiring them are being strategic and thinking about the organization's future. and ask to them to list open positions in their newsletters and emails to members. recruitment and selection are typically the most challenging for employers. Post an open position internally ACBL assess qualified candidates within the organization. 6. Training and Development 3. Performance and Evaluation 4. assessment and selection are the three key steps for hiring employees. Recruitment and Selection 2. volunteers. temporary workers or consultants who may have been working in a similar capacity to the open position. 6.Internship Report of Askari Bank Ltd. NUML Page 51 .1 Human Resource Analysis: Human resource analysis of ACBL is mainly depends on the following four categories.1. Compensation 6. Consider interns.1.2 External Recruitment ACBL develop relationships with guidance and career counselors at colleges and universities and ask for help in recruiting for open positions.1 Recruitment and Selection Recruitment.1. especially when the position is at a higher level or requires a specific skill or type of experience.3 Internal Recruitment ACBL also use this type of method of recruitment for hiring potential employees.

Weigh his or her willingness to learn. but also can flourish under those conditions. ACBL consider other needs such as diversity.1. it's time to make a selection decision. someone with five years of corporate-sector experience can bring a strategic view to a nonprofit organization. Discussion group (conference and meeting) activities. understanding and awareness. Also. Is the applicant qualified for the present job as well as future positions? Look for a candidate with solid experience and new ideas and a fresh perspective. 6. For example. training is the systematic development of the attitude. Transfer learning from observation of trained workers. Meet legislative requirements e. no matter the industry. market conditions inevitably will change ACBL selects someone who not only can adapt. • • NUML Page 52 . Receiving coaching from seniors. knowledge.Internship Report of Askari Bank Ltd. Learning via involvement in research. skill pattern required by a person to perform a given task or job adequately and development is 'the growth of the individual in terms of ability.2.3 Selection Methods Once the applicant pool has been narrowed and candidates have been assessed. Lectures and talks by senior or specialist managers. health and safety.g. ACBL think long-term. education is 'mind preparation' and is carried out remote from the actual work area. Provide the conventional training of new and young workers. ACBL fuscous these points regarding Training and Development: • • • • • • • Develop workers to undertake higher-grade tasks. ACBL never discount candidates who are making career changes. and to follow the guidelines of the Equal Employment Opportunity Commission.1 Training and Development In general. report writing and visiting other works or organizations. while someone from a nonprofit who has made the most with limited resources can bring a fresh approach to a corporation. 6. Raise efficiency and standards of performance.

Internship Report of Askari Bank Ltd.1 In ACBL Performance appraisal defined as a structured formal interaction between a subordinate and supervisor. drive and ambition fostered. equipment and work procedures.3. Faster results in making newcomers knowledgeable and effective than would follow from experience. flexible employees. Fewer accidents both personal and to property. Performance Evaluation • • • • 6. Role-playing exercises and simulation of actual conditions. Case studies (and discussion) tests. etc. Improvements in the qualifications of staff and their ability to take on tougher roles. More effective or efficient use of machinery. to identify needs to modify or extend what is being provided. panel 'games'. Exact validation might be impossible but unless on the whole the judgments are favorable the cooperation of managers in identifying needs. NUML Page 53 . that usually takes the form of a periodic interview (annual or semi-annual). in which the work performance of the subordinate is examined and discussed. efficient. quizzes. group forums. releasing personnel and assisting in training ventures will cease. In making their judgments senior managers will question whether the efforts expended have produced: • • More effective. In the case of attitude and behavioral changes sought. Evaluation of the effectiveness of training is done to ensure that it is cost effective. Video and computer teaching activities. with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development. leadership abilities. • • • • Briefing by senior staffs. observation exercises and inspection and reporting techniques.. achievement is a matter of the judgment of senior staffs. The latter may not be easy to ascertain where results cannot be measured mathematically. to reveal new needs and redefine priorities and most of all to ensure that the objectives of the training are being met. Better employee loyalty to the organization with more willingness to innovate and accept change.

In ACBL appraisal results are used. salary ranges for job descriptions. Professional. merit-based a very uncertain and contentious matter. that is. Nonexempt jobs usually get a wage. to help determine reward outcomes. for example. commission-based programs. That is. appraisal results are used to identify the poorer performers who may require some form of counseling. Employees have certain monies withheld from their payroll checks. that is. state income tax. extra pay for hours worked or on certain days of the week or on holidays. Exempt jobs get a salary. It's not uncommon for exempt positions to receive higher compensation and benefits than non-exempt jobs.) Whether this is an appropriate use of performance appraisal .Internship Report of Askari Bank Ltd. NUML Page 54 . ACBL associate compensation/pay ranges with job descriptions in the organization. usually including federal income tax. bonuses.the assignment and justification of rewards and penalties . Unskilled or entry-level jobs are usually classified as non-exempt. management and other types of skilled jobs are classified as exempt. (Also see the Related Info (including Benefits). and promotions. although non-exempt jobs often can make more money than exempt jobs simply by working more hours.1 Compensation In ACBL Compensation includes topics in regard to wage and/or salary programs and structures.4. or in extreme cases. bonus-based programs. FICA (social security) contributions. usually a fixed amount per month. the appraisal results are used to identify the better performing employees who should get the majority of available merit pay increases. Compensation is payment to an employee in return for their contribution to the ACBL. Non-exempt jobs also get paid over-time. and employee contributions to the costs of certain benefits. etc. demotion. either directly or indirectly. (Organizations need to be aware of laws in their country that might restrict their capacity to dismiss employees or decrease pay. dismissal or decreases in pay. that is. The ranges include the minimum and the maximum amount of money that can be earned per year in that role. 6. a fixed amount of money . for doing their job. By the same token.

CHAPTER 7 INTERNSHIP EXPERIENCE NUML Page 55 .Internship Report of Askari Bank Ltd.

1 Costumer Service 2 Agri Finance 3 Account Opening 4 Personal Finance 5 Information Technology 6 Credit Card 7 Remittances 1st Week: NUML Page 56 .Internship Report of Askari Bank Ltd. Work load is too high whereas staff is very low. Jobs are not granted on the basis of merit. ACBL is suffering from low customer orientation and this is a big marketing threat for it. Career opportunities are very low. salary accounts. They have to do wait for a long for completion of their desired work. different kind of loan schemes. In this way this can be loose those customers which have current accounts. Introduction: During my internship I was involved in the following departments. compensation plans are not well planned. Analysis It is handling government federal and private operation as well. Employees want more salary and benefits and they are ready to switch their jobs this can increase ratio of turnover. ATM facility is not available in this respective branch. current accounts. This bank is providing many facilities like submission of utility bills. This bank is not customer oriented especially pensioners really suffer during getting pension. There is no proper guidelines and information for customers. Other than these benefits it has some weaknesses as well. overdraft facilities and so on.

I have performed as a front desk person. Original copy of branch is sent to respective institute and copy of it is kept by bank. traffic challans. Entry of pensioners: In 2nd week I learnt how to keep monthly record of pensioners and how to give monthly..g. In the first week they gave me detail information about whole organization and respective branch in which I was working. Issuance of cheque books: In 2" week I also issue cheque books to old customers and j new as well. semiannually and yearly pensions. Manual record keeping of new open Accounts: In 1st week I have also done manual record keeping of new accounts. I also receive requisition for cheque book from very new customers. in which name of customer. I have learnt that how to deal different kind of customer and how to fulfill their requirements and how to give their desired and relevant information. Scroll sheets: In 1st week I have made scroll sheets of utility bills. form and account no and date on which account is to be opened is written off. One copy of scroll sheet is sent to respective organization e.Internship Report of Askari Bank Ltd. This practice increases my patience and high level of control on my emotions. bimonthly. 3rd week: Customer dealing: In 3rd week. it enhances my communication skills as well. They gave me detail introduction about working of ACBL. WAPDA. 2nd Week: Voucher making: In 2" week I have learnt that how to make vouchers of scrolls of utility bills and traffic challans as well. PTCL and so on and one copy is kept by bank as a record. Account Opening: In 31 week I came to know about that how a person will be able to NUML Page 57 .

I issues 70 account opening form in a day and guide all customer one by one and tell them requirements to fill and submit a form. Prepare medical forms for each employee: In last week I prepare medical form of each employee and its family member. One voucher is made for this purpose on which name of cheque holder and account no and amount which is to be drawn is written on the back side of voucher is prepared and sent. 5th Week: Vouchers of un-issued cheques: When cheques are rejected due to certain reasons these cheques are returned back to their respective departments. open an account. These services include: 1 ACBL rozgar scheme 2 ACBL advance salary scheme 3 ACBL gold scheme 6th Week: Review of Marketing Practices: In last week I review Marketing practices of ACBL. I make report of their last month's visit to doctor and sent it into head office. NUML Page 58 . Computerized record keeping: In ^ week. I have also done computerized record keeping of new opening accounts.Internship Report of Askari Bank Ltd. Within week I receive back these forms and after making necessary requirements I finalize these forms. 4TllWeek: Token Issue: In the start of 4th week I have worked in cash department and leamt to issue token to the customers who want to withdraw cash. I provide all information regarding specific service to customers. In the last of 5th week I issue forms of different services which are offered by Askari Bank. That on which basis Marketing is hired and compensated. I also learnt that how to check the balance of old and new accounts as well. I also cash their cheques and give them their desired amount.

I review and finalize their papers of transfer. Customer Orientations and Personalized Service The banker customer relationship attained a new dimension courtesy the politeness and efficiency of professionally trained staff and fair induction policies of its Human Resource Department. EXPERIENCE AND LEARNINGS The six weeks long internship at Askari Bank of Pakistan Main Branch Daska has been a sufficient duration to personally observe and experience the working and analyze certain factors related to the environment of all the Departments in the Branch. The introduction of different schemes. Every employee is transferred right after 3 years. which had the capacity to take quick. which took a series of successive measures to make the people of Pakistan banking. Healthy. It has always provided its employees the scope within which to make the most NUML Page 59 .Internship Report of Askari Bank Ltd. and respond to the changing business conditions. Procedure of Transfer: I have also learnt that how employees are transferred from one branch to another.Convenience of the customers has been the sole criterion of this relationship. and saving-minded. good atmosphere. 7. Professional Style of Management Although the concept of professional management is still in its transition stage in Pakistan Askari Bank from the very first day employed skilled and professional management. The dynamic approach and personalized service met the expectations of the customers. Competitive Working Environment The obligation to give all its employees an equal chance to succeed has been one of the most fundamental and challenging responsibilities of the bank. proper guidance and team effort have proven to be the catalyst in not only improving the financial standing of the bank but has also been the source of the prestige it holds today.1 Worked In Different Department: Dynamic and Advanced Approach The Bank employed skilled and professional approach to management. decisions.

but unfortunately. 7. they began to change and adopt a more modem and relevant strategy. which in the ultimate analysis transformed the entire outlook of the industry. In Askari Bank survival. banking underwent a complete metamorphosis. Modern Banking Policies With the entry of Askari Bank and a new era. The procedure of applying tests is not know to all the officers as it is practiced by only one of them and hence it causes delay when it is applied by the others in case the said officer is absent. Such a competitive environment was instrumental in introducing professionalism. clearing and collection that result in unnecessary delay. The same officer of the branch does the posting of the bills and cheques. The present format of the account opening forms seems more complicated to the lesser-educated customer and hence he takes it away to be filled with somebody's help. When Askari Bank challenged the major banks of the time due to quality services they began to evaluate their policies and were surprised to find that they had a lot to change. of their abilities. growth and expansion demand full use of one's own talent and ability.2 Negative Dimensions of Experience and Learning • Departmental Problems at the Branch The following are some of the problems and shortcomings that were inevitably prominent. The test NUML Page 60 . rarely comes back. Before long. as the original advice is lost in post and proper filing of the copy is not done. • Bills and Clearing Departments The carelessness of the officers at times result in delay of collection.Internship Report of Askari Bank Ltd. • Deposits Department In order to save time the addresses filled in the required section of the account opening forms are filled without confirming that they are appropriate for using for correspondence purposes in case of any notifications to be sent to the customers.

Internship Report of Askari Bank Ltd. NUML Page 61 . especially if there is a rush of customers. that affects their work negatively. • Advances Department The filing and record maintenance of the credit related documents is not done‘‘Efficiently due to lack of computer skills of the related officers. Manual counting system by the cashiers is a very time consuming exercise. Lack of infrastructure for carrying out computerized/ automatic financial analysis of the borrowers' businesses is another shortfall of this Department. • Cash Department Rare instances of fake currency notes result in loss to the branch and the cashier who accepted them. application officer works manually and there is no other person to assist him that results in spending most of the time in applying these.

Internship Report of Askari Bank Ltd. CHAPTER 8 CONCLUSION AND RECOMMENDATION NUML Page 62 .

function it is not working up to the standard and give the management a chance to investigate and improve the functions the function for the particular branch. Because under the present circumstances of the bank.Internship Report of Askari Bank Ltd. • Scheme should be launching only on the basis of the research work and should be discussed before they are made available to the customer. educated and skilled people are just what the doctor ordered to NUML Page 63 . Political interface especially in recruiting should be tolerated. localities. which I think will be helpful in enhancing the image and performance of ACBL. • People working in the planning department. who have defaulted once. • Both corporate banking and retail banking should be combined to reduce costs. The minimum amount of deposit should be increased. 8. should not only be qualified but also experienced and familiar with the working of the bank. There should be combination between FORIX and retail banking so that those customers. • Every branch should be made into separate unit and should be evaluated individually. • There is and immediate need to make a new recruitment policy so that the bank can get properly trained employees who are suited for the vacant positions. this way ACB would know in which areas. in this way ACB will have safer depositors. • The entire economics scenario should be taken into consideration. are not allowed loan from the bank again.1 Recommendations These are some recommendations & suggestions. who will deposit large amount with the bank and will also reduce the number of depositors so that bank can provide better services to its existing clients.

bills collection on behalf of clients. their fixed assets were very small in number most of their offices in different cities are on rent. Promotions should not only done the basis of seniority but rather performance and the time period spent in a certain position should also • be considered furthermore. • Feeling the importance of banks in economy of the nation most state government started to govern banking and started their interface in this sector so that all financial activities may be monitored. • When I examined the annual report of ACB. In ancient days the security of money and money management requirements emerge. the situation for the bank to be established for offering banking function to public and especially to business person. There are various types of banks as per their specialized field of operation. improve the performance of the bank. NUML Page 64 . • • There is no marketing department is should be created in order to cope with future. 17th and 18th centuries are witnessed centuries during which banks than were privately owned and were involved in financing activities for merchants. In this way the employees will be realize his or her short coming and put in more effort. • • • Performance appraisal should be done on a semi-annual basis rather than an annual basis. It is recommended that ACB should train its first line and middle line managers so that they are able to build good relations with customers. which decreases their profit. After all it is the employees who make or break an organization. position blockage should be eradicated. ACB should try to buy their own buildings or even it can give it to rent to other companies like "State Life" Head Office of ACB is also in State Life Building.Internship Report of Askari Bank Ltd. So they have to pay heavy rent.

adopting all the new methods and technologies requited for an international bank. increased in earnings decrease in non-performing loans. 1949. NUML Page 65 . The bank provides all types of banking services to the government and private sectors. and effective use of information technology. Askari bank limited is desired to play a vital role in the development of Pakistan in the 21st century. 8. with due emphasis being placed on the optional utilization of existing human resources. Askari bank limited is working on the restructuring program to make the bank more attractive with the eventual aim of privatization as the largest bank in the country with a customer base of 8. The overseas branches under a trust deed the bank also provides services as trustee to national investment trust including sage custody of securities on behalf of nit in consideration for annual service charge and commission. objective appraisal system is being instituted to facilities transparent ratings / promotion. Askari bank limited brought a great revolution on our banking system by introducing new products. Its management and workers must accept the competition and challenge of the new millennium through innovative policies products and untiring application. Motivating pay structures and performance based on incentives were also introduced enhance the productivity of employees.Internship Report of Askari Bank Ltd.2 Conclusion: Askari bank limited was established as a semi public commercial bank on November 8. Askari bank limited is placing high priority on automation and it development.5 million. The primary objective of the setting of the bank was to purchase jute form the growers in the former East Pakistan in the country. The bank is shifting its focus from routine personnel administration to human resources development. The key components of the restructuring programmers are reductionoperating cost. Additionally.

wikipedia. Annual report 2008/online http://askaribank.highbeam.html/onli ne URL: URL: http://en.Internship Report of Askari Bank URL: website/online nline Askari Commercial Bank.htm/onl ine URL: http://en. pk/ URL: http://en.html/online URL: http://en.pakistaneconomist.php?id=156/online Askari Commercial Bank URL: URL: http://en. NUML Page 66 . organgram.3 REFERENCES URL:http://www.

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