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Askari Bank Ltd (Islamic Banking Branch

)

Submittd by:Ailiya Rizvi BBA(Hons) 3219 Session: 2007-2011

Department Of Management Sciences
1 MR. HASSAN RAZA E12MBA014—ALI E12MBA

Lahore College for Women University Lahore

2 MR. HASSAN RAZA E12MBA014—ALI E12MBA

3 MR. HASSAN RAZA E12MBA014—ALI E12MBA

HASSAN RAZA E12MBA014—ALI E12MBA .Table of contents Chapter 1 Topic INTRODUCTION History & Background Business Philosophy Vision Statement/ Mission statement Market Standing MANAGEMENT SYSTEM Organizational Chart Corporate Profile Management Hierarchy Policy Formation process Managerial Policies MARKETING MIX Product Price Place Promotion Publicity FIANANCIAL STATEMENT ANALYSIS Trend/ horizontal analysis Vertical Analysis Financial Ratio Analysis SWOT ANALYSIS Strength Weakness Opportunity Threat Pg no 11 14 17 19 2 21 25 29 32 36 45 56 63 67 73 86 97 101 102 103 3 4 5 4 MR.

HASSAN RAZA E12MBA014—ALI E12MBA .5 MR.

offering a streamlined and comprehensive Internship Programs.Executive summary ACBL was incorporated in Pakistan on October 9. In this report I have tried to mention all the aspects of ACBL are banking operations. 1991. 6 MR. its growth and success patterns have far outgrown industry standards. HASSAN RAZA E12MBA014—ALI E12MBA . Each year ACBL recruits and hires a number of undergraduate and graduate interns to work in various positions throughout the organization. 1992 and in the 15 years since. Internships have been a part and parcel of ACBL's history. It started its operations during April 1. It is offering one of the widest arrays of products to their customers through their extensive branch network all over the country.

HASSAN RAZA E12MBA014—ALI E12MBA .Chapter: 1 Introduction  History & Background  Business Philosophy  Vision Statement/ Mission statement  Market Standing 7 MR.

for no record is available to ascertain the validity of any of the opinion”. Banking in Pakistan: At the time of partition total numbers of Banks were 38 only. The Bank borrows money at a lesser rate of interest and lends it to the borrowers at a higher rate. Out of these Banks the Pakistani Banks were only 2. & advances were Rs: 198 Million. The persons who had surplus money found it safe and convenient to deposit their valuables with them. Two Banks (Allied Bank Of Pakistan Limited & Muslim 8 MR. when the Germans occupied major part of Italy. They used to keep strong safes for storing the money and valuables of the people.Evolution of Banking: “Bank is a pipeline through which currency moves into and out of circulation. HASSAN RAZA E12MBA014—ALI E12MBA .” Bank accepts deposits and repays cash to its customers on their demand. 1999) It is therefore. Banking started in Pakistan after the bold and emergent decisions of formulation of SBP on July 30. Later on. At the time of independence Bank services was badly affected. These priests thus acted as financial agents.880 Million. The government of Pakistan nationalized all Banks in early 1974. 1948. Word Bank is said to be derived from the words Bancus or Banque that means a bench. not possible to decide as to which of the opinions is correct. Other authorities hold the opinion that the word Bank is derived from the German word “Back” which means joint stock fund. Indian Banks 29 & Exchange Banks were 7. The total of deposits of Pakistani Banks was Rs. the word “Back” was Italianized into “Bank” (Aslam. But with the passage of time these are improving. The priests in Greece used to keep money and valuables of the people in temples. Early Growth: The history of banking is traced to as early as 2000 BC. It is thus a profit-lending concern. The origin of banking is also traced to early goldsmiths.

P. for short-term obligation. The bank was declared as “Best Bank in Pakistan” in 2001 in Global Finance.Box No. comprising commercial and Islamic banking branches. through a strategic investment in electronic technology. It also enjoys an offshore banking unit in Bahrain.O. They believe that balanced growth is the key to survive in the today’s global banking environment. 1991 as a Public Limited Company and is listed on the Karachi. Since then Banks were working well. Lahore and Islamabad Stock Exchange. and Islamic Banking products. 1992. History and Background Askari Bank was incorporated on October 09. Beside day-by-day banking solutions. The bank’s registered office/Head Office is situated in AWT Plaza. connected online and supported by a network of Automated Teller Machines (ATMs). Now slogan of the Banks is to serve their customers in the best possible manner. The Mall. (Pakistan). It has A1+. Consumer. Askari Bank Limited has a wide range of Corporate. and AA+ for long-term rating. Over the years. Askari Commercial Bank Limited was the first bank in Pakistan to offer Internet banking Services and B2B e-commerce (Business to Business electronic Commerce) solutions for merchants looking to purchase on credit. Rawalpindi. 9 MR.Commercial Bank Of Pakistan Limited) have been denationalized. HASSAN RAZA E12MBA014—ALI E12MBA . 1084. It started its operations from April 01. the highest possible credit rating. Askari Bank Limited has expanded into a nation wide presence of over a 100 branches. Askari Bank Limited has proven its strength as a leading banking sector entity with ever increasing commitment to its clients.

They have also received ranking prizes during the last six years from the South Asian Federation of Accountants (SAFA) for “The Best Presented Annual Accounts” for the financial sector. They have been given “The Best Bank in Pakistan” award by Global Finance magazine twice i. 1962. for the years 2001 and 2002. They won the Euro money and Asia money awards as early as 1994. for the Services Sector. 1996 and 1997.  General utility services. for the years 2000. They have been given the “Best Consumer Internet Bank” award by Global Finance magazine for the years 2002 and 2003. HASSAN RAZA E12MBA014—ALI E12MBA . Functions of ACBL: ACBL is a commercial bank. 2001and 2002. They won the prestigious “Best Presented Annual Accounts” award from the Institute of Chartered Accountants in Pakistan (ICAP). In the light of this section ACBL’s functions can be categorized as under:  Agency services.e.   Underwriting of loans raised by the government Providing specialized services to customers 10 MR. Section 7 of the Act authorizes banks to engage in the prescribed form of business. which transacts the business of banking in accordance with the provisions of BCO. In 2007 Askari bank won “The Best Consumer Banking Award 2006” for the third consecutive year from the consumer Association of Pakistan.Awards and Achievements: Askari Bank continues its success in competition. in the SAARC region. In 2008. Askari Bank has been given “The Best Retail Banking Award 2008” by Pakistan Guarantee Export Corporation Ltd. They have received the Corporate Excellence Award for the financial sector from the Management Association of Pakistan (MAP) for the years 2002. 2003 and 2004.

HASSAN RAZA E12MBA014—ALI E12MBA . based on the development of right attitudes. 11 MR. products. Accepting deposits Mission Statement: As it is said that an organization’s culture. the soul of the organization . so one of the business executives at the bank. maintaining high ethical and professional standards. while providing enhanced value to all their stakeholders. markets and environment throws light on the corporate mission. their attitude. philosophy. carved the following mission of The Askari Commercial Bank Limited as The mission statement of the bank is: “To be the leading private sector bank in Pakistan with an international presence. self-concept.the very small set of guiding principles that have a profound impact on how everyone in the organization thinks and acts. We subscribe to a culture of high ethical standards. We believe in our 'core values' as the essential and enduring tenets of our organization . employees. They have an intrinsic value for us and bear significant importance to all our employees. delivering quality services through innovative technology and effective resource management in a modern and progressive organization culture of meritocracy. They are the few extremely powerful guiding principles. services. based on his personal observation and judgment.the values that guide all our actions. and contributing to society” Core Values: We understand that our commitment to satisfy customers’ needs must be fulfilled within a professional and ethical framework.

 To facilitate the bank with modern banking technique  To accelerate commercial activities and capture large market share. We are continuously and consistently striving to address newer challenges with a single motivation: “the power to inspire and be inspired” OBJECTIVES:  Deliver solutions that meet customer’ financial needs..  Build and sustain a high performance culture.  Create and leverage strategic assets and capabilities for competitive advantage. 12 MR.  Build and manage the Banks’ portfolio of business to achieve strong and Sustainable shareholder return. from enhancing stake-holders value to practising corporate ethics.  Build trusted relationships with all stakeholders..The intrinsic values. are:  Commitment  Integrity  Fairness  Team-work  Service Vision: “To be the Bank of first choice” CORPORATE PHILOSOPHY: From knowing our customers requirements to understanding employee needs. HASSAN RAZA E12MBA014—ALI E12MBA .. which are the corner stones of our corporate behavior. from utilizing modern technology to making responsible social contributions.

enhanced delivery capability. 13 MR. where employees are motivated to contribute to their full potential.   To manage the Bank’s portfolio of businesses to achieve strong and sustainable shareholder returns and to continuously build shareholder value. To deliver timely solutions that best meets the customers’ financial needs. To build an enabling environment. strengthening of controls. with a continuous improvement focus. efficient management information system. and high service standards. To build and sustain a high performance culture. HASSAN RAZA E12MBA014—ALI E12MBA . To develop a customer–service oriented culture with special emphasis on customer care and convenience. To optimize use of technology to ensure cost–effective operations.Code of Business Principles: Our Code of Business Principles is to:  Deliver solutions that meet customers’ financial needs  Build and sustain a high performance culture  Build trusted relationships with all stakeholders  Build and manage the Bank’s portfolio of businesses to achieve strong and sustainable shareholder returns  Create and leverage strategic assets and capabilities for competitive advantage Corporate Objectives:       To achieve sustained growth and profitability in all areas of business. To effectively manage and mitigate all kinds of risks inherent in the banking business.

In addition to the general guidelines. To provide strategic initiatives and solutions for projects. To explore new avenues for growth and profitability.  Presence of a corporate culture that seeks to create an environment where all employees are treated equitably and with respect. ethical and independent. the Following are the salient features of The Bank’s code of ethics and conduct. To provide strategic solutions to strengthen weak areas and to counter threats to profits.  To identify strategic initiatives and opportunities for profit. 14 MR. HASSAN RAZA E12MBA014—ALI E12MBA . products. Strategic Planning:     To comprehensively plan for the future to ensure sustained growth and profitability. policies and Procedures.  To create and leverage strategic assets and capabilities for competitive advantage. Code of Ethics and Conduct: Askari Bank seeks to maintain high standards of service and ethics enabling it to be perceived as impartial. Mission. To facilitate alignment of the Vision. Corporate Objectives with the business.

understanding or arrangement with any competitor with respect to pricing of services. Employees must never use their position in the Bank to obtain personal advantage or gain. conditions. or may appear to conflict. Fairness.  Employees must ensure that ‘know your customer’ principles are adhered to by obtaining sufficient information about the customers to reasonably satisfy ourselves as to their reputation. rights and obligations. merits the same care as does the protection of the Bank’s Own affairs or other interests. 15 MR.  Employees must safeguard confidential information which may come to their possession during the discharge of their responsibilities. HASSAN RAZA E12MBA014—ALI E12MBA . Truthfulness and Transparency govern our customer relationships in determining the transactional terms. They must act in a prudent manner and must avoid situations that could reflect unfavorably on themselves. Respect for customers’ confidential matters. the Bank or its customers  Employees must commit to the continued development of the service culture in which the Bank consistently seeks to exceed customers’ expectations. Employees must carry out their responsibilities in a professional manner at all times. profit rates and / or marketing policies.  Employees must not enter into an agreement. standing and the nature of their business activities. with the interest of the Bank or its customers. which may adversely affect the Bank’s business.  Employees must avoid circumstances in which their personal interest conflicts.

thefts or illegal activities committed within the Bank premises. Employees must not accept gifts. HASSAN RAZA E12MBA014—ALI E12MBA . and their long term rating stands at AA+ by PACRA (Pakistan credit rating agency). ‘AA’ ratings denote a very low expectation of credit risk. 16 MR. This capacity is not significantly vulnerable to foreseeable events. the highest possible credit rating. They indicate very strong capacity for timely payment of financial commitments. Obligations supported by the highest capacity for timely repayment. for short term obligations.  Employees must remain alert and vigilant with respect to frauds. The rating specifies a very high credit quality and very strong capacity for timely payment of financial commitments. which appear or may appear to compromise commercial or business relationship. Market standing of Askari bank: ACBL have A1+. Definitions by Pakistan Credit Rating Agency Limited (PACRA): AA Very high credit quality. business entertainment or other benefits from a customer or a supplier / vendor.

HASSAN RAZA E12MBA014—ALI E12MBA .Chapter: 2 MANAGEMENT SYSTEM  Organizational Chart  Corporate Profile  Management Hierarchy  Policy Formation process  Managerial Policies Organizational Chart 17 MR.

FCA  Dr. FCA  Mr. Javed Zia Chairman  Lt. Gen. (R) Saeed Ahmed Khan  Mr. Ali Noormahomed Rattansey.Corporate Profile: Board of directors  Lt. M. Ali Noormahomed Rattansey. Muhammad Riyazul Haque  Mr. A. Tariq Iqbal Khan. HASSAN RAZA E12MBA014—ALI E12MBA . Auditors:  AF. Shahid Mahmud  Mr. Gen. Tariq Iqbal Khan. R. Saleem Anwar. Ghazali Marghoob. M. Zafar Alam Khan Sumbal  Mr. Ferguson & Co Chartered Accountants Legal advisors: 18 MR. Gen. Bashir Ahmad Khan  Mr. FCA. FCA  Mr. FCA Company secretary  Mr. Bashir Ahmad Khan Chairman  Mr. Mehkari Audit Commit  Dr. FCA Chief financial officer:  Mr. (R) Imtiaz Hussain  Maj.

Afridi & Angell Shariah advisors Dr. Rizvi. Muhammad Tahir Mansoori Legal Advisors Corporate Information 19 MR. HASSAN RAZA E12MBA014—ALI E12MBA . Isa.

Gen. (R) Zarrar Azim Chairman Executive Committee President Mr. Imtiaz Hussain (HIM) Chairman Lt. HASSAN RAZA E12MBA014—ALI E12MBA Brig (R) Shaukat Mahmood Chaudhari Director . Gen.Lt. Shaharyar Ahmad & Chief Executive Brig (R) Muhammad Shiraz Baig Director Brig (R) Asmat Ullah Khan Niazi Director Brig (R) Muhammad Bashir Baz Director 20 MR.

Afridi & Angell 21 MR. Kashif Mateen Ansari Auditors Member A.F.Audit Committee Brig (R) Asmat Ullah Khan Niazi Chairman Brig (R) Muhammad Shiraz Baig Member Mr. HASSAN RAZA E12MBA014—ALI E12MBA . Chartered Accountants Legal Advisors Rizvi.Ferguson & Co. Isa.

M. Prior to joining Askari Bank.000 consumer servicing portfolio. relocating to UBL Abu Dhabi in 1972. deeper mortgage product penetration among Retail Bank and commercial customers and a significant increase in market share.R Mehkari: Senior Executive Vice President Suhail Ahmad Rizvi: Executive Vice President Mr. Foreign Trade and Correspondent Banking locally and abroad Mr. U.000. He also engineered numerous successful growth and operational efficiency initiatives that resulted in notable Improvement in loan processing time. Agha Ali Imam: Senior Executive Vice President Mr Imam is Group Head Of Consumer Banking Group. Business 22 MR. Abu Dhabi & Dubai (affiliated with Societe Generale France).Executive Profiles Mr.000. C. Rizvi is a graduate of F.K. HASSAN RAZA E12MBA014—ALI E12MBA . College. Nazimuddin A. Mr Imam joined Consumer Banking in 2002 where he led the organic growth of the Division and the successful integration of Retail Banking. he was associated with United Arab Bank. Chaturbhai: Senior Executive Vice President Mr. He oversees all aspects of the Bank's Consumer Business including industry leading sales production team and over Rs 12. He has attended a Number of courses in Credits. Nazim started his career almost 40 years back with UBL Karachi. He performed at senior positions and was responsible for Funds Mobilization. Lahore and did his masters in Business Administration (MBA) from University of Sterling Scotland. He worked with First International Investment Bank (managed by Amercian Express Bank).

Malik Asad Ali: Noon. Aziz was working at Union Bank. Aziz was also a member of the Risk Integration team that consisted of 5-memebrs selected from the ANZ Banking 23 MR. Tahir Aziz: Executive Vice President Mr.. textiles. USA and qualified DAIBP and IBL-I. infrastructure. Asad Ali Noon joined Askari Bank in July 2006 as Executive Vice President / Regional General Manager for Rawalpindi/Islamabad. Seminars. UK. Noon started his professional career in 1979 with BCCI as Manager Operations in an Offshore Banking Branch after attending extensive Training at their Head Office at London City. Executive Vice President Mr. and Courses on Bank Operations. telecom. Mr. Presently he is working as Regional General Manager for North Region. Leadership and Change Management.that provides all requisite products and services to the Bank's corporate & institutional clients. as Head of Investment Banking. Tahir Aziz joined Askari Bank in 2005 and is currently holds overall responsibility for the Bank's Corporate & Investment Banking Group . Prior to joining Askari Bank. HASSAN RAZA E12MBA014—ALI E12MBA . His schooling was nursed from Saint Patricks High SchooHe had attended number of local and foreign. Prior to that Mr. Mr. Aziz was wit ANZ Banking Group. where he was responsible for successfully setting up investment banking as a new business for the bank. Economics. Mr. Later on. he has also served American Express Bank & Union Bank at senior level positions. where he worked on a number of large ticket-transactions spanning the power. Prior to joining Askari Bank.Development. his services were utilized at various International Positions by BCCI. Liquidity Management and Credit OperationAcademically he is Masters in Business Administration from CUC. Sessions. he joined Prime Commercial Bank Limited and served as Incharge / Group Vice President. In 1992. Mr. refining sector etc.

Aziz holds an MBA from the Lahore University of Management Sciences and a Bachelors' in Computer Science and Physics from Grinnell College. to develop proprietary risk models to be used in the bank globally for its Project Finance and other large-ticket corporate loans. Organizational Hierarchy President (CEO) Senior Executive Vice President Executive Vice President Senior Vice President Vice President 24 MR. USA. HASSAN RAZA E12MBA014—ALI E12MBA .Group worldwide. Mr.

Assistant Vice President Branch Manager Assistant Manager Operations Manager Officers Grade I. HASSAN RAZA E12MBA014—ALI E12MBA . III Clerical Staff Non-Clerical Staff Cashier Typist & Clerks Assistant Guards & 25 MR. II.

The bank has an investment portfolio in which it allocate its funds for crediting to borrowers.  Bank opens various types of accounts for its customers Services are provided for earning. These policies are primarily conducted on: • • Source of funds Use of funds SOURCE OF FUNDS: The bank finance policy is acquiring funds from the following sources:  Deposits of account holders. Lending policies F. Personal policies FINANCIAL POLICIES The financial policies of any bank are the most important policies through which the whole banking activity is conducted. HASSAN RAZA E12MBA014—ALI E12MBA . 26 MR. Promotional policies E. Marketing policies D.  Interest on advances and loans granted to the borrowers. USE OF FUNDS: After the acquisition of the funds their acquisition becomes necessary.  Interest income and commission bank providing the services to its customer.Managerial Policies: A. The bank seeks the best way for making investment to get more profit with the maximum security. Procurement policies C.  Income and commission from the services provided by the bank. Financial policies B.

HASSAN RAZA E12MBA014—ALI E12MBA .investment in the stock market. for the allocation of funds a bank has to follow some banking policies and the prudential regulations of SBP these are: A bank has to maintain liquidity with state bank of Pakistan. 25 %of its total deposits. One alternative is to lend its money and earned interest markup or invest in govt. i. In order to get maximum no. After the acquisition of funds. A substantial part of funds is received from interest on loans and advances. In bank industry that is service industry procurement means the procurement of funds from various sources such as deposits. It involves attracting and holding the funds of the depositors. Of accounts so that it can increase it’s deposits and these lending ability. securities etc. A bank cannot invest all of its funds otherwise it will be difficult to meet urgent needs. Before granting a loan the bank analyzes and observes the borrower and conduct a complete ratio analysis. as already mentioned in the above paragraph the major sources of funds for a bank are the deposit of the general and the other sources of income includes interest or markup charges received for various services offered by the bank to its clients. Bank prepares credit line for this purpose the major thing is granting an advance is the security offered by the borrower and its actual market value. MARKETING POLICIES 27 MR. investment in the real estate property etc.e. A bank tries to attract maximum no. the bank invest the acquire funds. of accounts the staff of the bank must be efficient as compared to the other banks and the manager of the branch must take personal interest in attracting deposits. Good quality of the service is the key to success. PROCUREMENT POLICIES Procurement policies are more concerned with manufacturing organizations.

These policies can be implemented by providing the right product and service to the customer at the right place. the main objective of the bank is to inform the existing clients and other people about its new products or change in the existing services. c. which meet their needs. observe their needs and develop products. 2. As for as promotional activities are concerned. Marketing for a bank would mean: 1. at the right price. Community relations. HASSAN RAZA E12MBA014—ALI E12MBA . Following are the marketing policies of the ACBL. The bank marketing must be consumer oriented. b. It is necessary for the managers to keep in touch with consumers. 2. Development of products for the customers. Keeping the track of latest development in the world and incorporating the latest and most modern equipment to make the banking procedures simple and easy for the customers. Direct contact with customers. 28 MR. Relation with business organizations. a. PROMOTIONAL POLICIES Public relation and advertising has assumed a great importance in the modern banking business.Marketing policies are also one of the most important policies because they are related to the growth of the organization. ACBL establishes its purpose through: 1. Creation of new product and services. 3. Giving good services and maintaining good relations with the customers. at the right time.

Good personal policies motivate the employees towards hardworking. The bank only invests in those sound and viable projects.e. HASSAN RAZA E12MBA014—ALI E12MBA . 5. The lending policies of ACBL are as follows: 1. 6. Bank prefers to advance loan to their account holders. which have good rate of return. 2. 3. The manger appraises the past record of account holder and his credit worthiness. 4. Selection of employees on merit 29 MR. Loan is given to reliable person only. If he finds any thing wrong he can refuse to sanction the amount. the policies. No political loan is sanctioned by bank. Any account holder can apply for running finance or demand finance.LENDING POLICIES Every bank has its own lending policies except for those. i. are known as prudential regulations. PERSONAL POLICIES Personal policies have an important role in the success of an any organization. It also advances working capital loans. Securities to shares. The bank while taking security prefers govt. which are imposed on all the commercial banks by the SBP. 7. which are common for all the banks. Following are the main personal policies of ACBL: 1. ACBL have its proper personal policies.

Attractive salary package for motivation of employees. HASSAN RAZA E12MBA014—ALI E12MBA . 3.2. 4. Selection of capable employees. 5. Effective communication at al levels of the organization. Every employee must have certain set of clearly defined duties 6. Chapter: 3 30 MR. To train and develop the future management of the bank.

HASSAN RAZA E12MBA014—ALI E12MBA .MARKETING MIX  Product  Price  Place  Promotion  Publicity 31 MR.

If a business enterprise rationally blends the elements of marketing into a program of mix. Four P’s Product Price Place Promotion Four C’s Customer needs and wants Cost to the customers Convenience Communication 32 MR.  Products  Price  Place  Promotion Marketers use numerous tools to elicit desired responses from their target market. Marketing mix is defined as: “The set of controllable tactical marketing tools that the firm blends to produce in response to wants in the target market. stays and earns profit in the market. Marketing mix is a combination of a number of marketing elements according to a market situation. the firm cannot fight out its rivals in the market and ultimately suffers losses.”‘ The various elements of marketing mix are as follows. In case. then it competes. the integration of the various elements of marketing is defective. HASSAN RAZA E12MBA014—ALI E12MBA .COMPANY MARKETING MIX The concept of marketing mix is very important in the business literature. These tools constitute a market mix.

to meet the challenges ahead. HASSAN RAZA E12MBA014—ALI E12MBA . Askari is committed to aggressively market this segment. This is evident from revamping of the 33 MR. we set up Retail Banking Group in July 2000. including modern technology. In recognition of this reach. Historically. develop and retain specialized abilities. the opportunities and threats engendered by greater deregulation. dedicated to serving the urban consumer market.Now let us discuss the marketing mix of ASKARI COMMERCIAL BANK LIMITED. we remain alive to the challenges emanating from the developments in the global financial markets. The strategy is to provide our customers with a banker of innovative products to meet their varying needs. This would enable the bank to acquire. this division is now gaining momentum and our long term aim is to develop it into an independent strategic business unit (SBU). Askari’s core marketing focus for its asset base has been the middle and upper middle business houses (including wholesales and manufacturers) operating in the large urban centers of Pakistan. Askari bank’s reach is ever increasing. These provide us the impetus to make the best use of available resources. With the branch network of 46 and further expected increase of 18 during 2003. In view of the fast changing market conditions and the narrowing of traditional lucrative margins on loans. retired and serving government and armed forces personnel. and enhance our focus on serving the emerging needs of the corporate clients. Benefiting from the bank’s growing balance sheet size. which are primarily oriented towards foreign trade. The liability side remains focused on the middle and upper middle class. While successfully penetrating the key domestic markets through strategic expansion and business diversification. Askari bank now commits itself to seek out new opportunities and make its existing operations more efficient. and mid size business houses. and increased customer expectations. the ATM’s facility and Internet Banking. This segment contributes significant revenues to the Bank.

and the payment of utility bills. while the figure for last year was PKR 1.291 million. The Board and Management are steering towards contemporary management design.Treasury that is being geared to provide innovative products and efficient services to our clients. prepaid cards and electronic billing systems. The division was set up to play a proactive role in pursuing corporate and organizational development. This will include debit cards. stood at PKR 1. During the first quarter of 2003. In the near future. The bank is also in the process of obtaining a new IT system for its Treasury.595 million as at December 31. giving strategic direction to the bank and looking out for new growth avenues. we succeeded in compensating for the reduced margins by a substantial increase in volumes. HASSAN RAZA E12MBA014—ALI E12MBA . the bank plans to operationally an Offshore Banking Unit (OBU) in Bahrain. 34 MR. The bank plans to enhance its ATMs and Internet banking services with new features like inter branch funds transfer. our deposits increased from PKR 41 billion in 2001? Our operating Profit (before provisions) for the year. which compelled people to divert their investments to the share market and property. This is evident from the conception of the new division for “Planning and Corporate Affairs”. In the process. Although the interest margins were greatly squeezed during the year 2002. Enhancements are also planned for the banking software so that funtions like Trade Finance. Askari is one of the first Pakistani banks to develop such a dedicated function with a high focus on the future. and credit approvals can be integrated into the core banking system. Despite the falling interest rates. We plan to setup a Call Center and Date Warehouse to enhance the timeliness and quality of our services. developed and designed by its Retail Banking Group. SWIFT messages. Askari bank also plans to launch some new consumer products. 2002. especially in the second half. we hope to improve overall margins on the surplus liquidity available with the Treasury.

giving special emphasis on the quality of its human resource. HASSAN RAZA E12MBA014—ALI E12MBA . We understand and are committed to enhancing our technology not just to keep abreast with the modern developments but also to retain our position as leaders in this field Our motivation is driven by one single factor “Providing customer satisfaction” PRODUCTS 35 MR. Our emphasis on technology is evident from the products that we are developing. people make things happen”.Realizing that “Assets make things possible. The bank will try to build the organization from within. Askari plans to reemphasize its focus on its human resource.

we have the solutions to your questions. Uses of distinctive color schemes. So to overcome these challenges the service industry has to adopt various strategies..  ACBL emphasis is on the benefit the service offers rather than on the service itself. For example the “e-statement” service emphasis is on the customer’s convenience. so the customer mind instantly visualizes. We would discuss these strategies in context of ACBL. a worthy investment etc. tangible objects. On every brochure of ACBL product one sees an image. associates the service with something physical. physical presentation and documentation are used. In includes the whole theme more than just the brand name. lockers for your valuables. 36 MR. For example the “High Yield” saving account brochure shows an image of wheat plant. loans to meet an emergency cash need.  For product promotion the use of visualization technique. association. HASSAN RAZA E12MBA014—ALI E12MBA .Askari Bank presents you an entire range of products. inseparability and high perish ability are a significant product planning challenge in service marketing. or financing for the purchase of an automobile. What does it reflects or communicates with the customer? It instantly gives the idea That something very rewarding. liquidity for your business needs. slogans etc are being used.  In relation to product feature the bank’s emphasis is on building up an effective brand image. giving higher returns.. easiness and advantage than on the service itself. Policies Regarding Product  Intangibility. whether you are looking for high returns on your deposits.

Features:  Loan amount from Rs. Askari Bank’s Personal Finance One can avail unlimited opportunities through Askari Bank’s Personal Finance. Consumer banking service: 1. 37 MR.000  Repayment period from 1 to 5 years  Fixed monthly repayment  Low rates that never change    No pre-payment penalties Shortest processing time Funds may be obtained at any ACBL branch  And certainly unmatched service quality When you are working towards your financial goals. HASSAN RAZA E12MBA014—ALI E12MBA . Askari bank has more ways to serve you then ever before. No matter what your need is. With unmatched financing features in terms of loan amount.50. your cash flow and your ability to take advantage of personal or business opportunities. The right borrowing options can improve your savings. Askari Bank’s Personal Finance makes sure that you get the most out of your loan. how you borrow can be just as important as how you invest. Due to intangibility of products and in the absence of physical features the bank has to emphasize on differentiation of their offering.000 to 500. payback period and most affordable monthly installments.

collection and cash/transfer facility to corporations. HASSAN RAZA E12MBA014—ALI E12MBA . Salaried: Minimum length of confirmed service with present employer is at least six months with a total length of at least one year service. Askari offers the best value to you. under one resource center.Eligibility to Apply: Your age is between 21 and 57* You have a verifiable minimum gross monthly income of Rs. lowest insurance rates and widest range of available car makes and models. 2. 15. due to our well-diversified branch network.000. With minimum down payment. which will handle the Process through the branches and provide adequate reporting to the corporate clients. 38 MR. ASKARI BANK'S Cash Management Services  "Askari Cash Management Services" aimed at effectively managing the accounts receivable portfolio of medium and large corporate entities. Askaris "No eligibility" clause automatically qualifies a person to own a latest car of their choice. on various aspects of their accounts receivable portfolio.  The service primarily aims at providing clearing. which provides our valuable customers an opportunity to own a brand new vehicle of their choice. Askari Car Financing Askari Commercial Bank Limited offers the most convenient and affordable vehiclefinancing scheme. every month. While this service will help the corporate entities improve their liquidity.

 As the product can be tailor made for National and Multinational companies. The unencashed blocks will continue at the same maturity and return. Invest as little as Rs. Advantages:  Partial liquidity offer on all time deposits  Monthly return  24hours world-wide protection plan  ASKCARD (Debit Card) &  Our unmatched service quality 4.000/-.. All you have to do is to invest a minimum deposit of Rs. operational methodologies and service pricing varies from customer to customer. rupee deposit account. with the introduction of Askari bank's Value Plus.e. while still enjoying the flexibility of a normal checking account. yet again . in a value plus time deposit for a choice tenure i. 25.in a value plus savings deposit and you are entitled to earn monthly returns. depending upon volumes and nature of transactions involved. Askari Bank's Value Plus Askari Bank leads the way.25... 3..000/each. In case you wish to partially withdraw some amount from your total investment..10.6 months or 1 year.Partial Liquidity Offer: Offering you a truly exciting opportunity to make your investments break new grounds for you. HASSAN RAZA E12MBA014—ALI E12MBA .and yet you don't lose the share of 39 MR. The investment will be held in blocks of Rs. The transaction process flows. which promises greater financial freedom and security. without touching the remaining investment.000/. with marginal modifications.. in an unmatched way.... you have the flexibility of encasing The blocks that you want. 3 months.

only Rs...that's what we call relationship banking! 5. with a competitive rate of return paid monthly on the 1st of every month. A financing facility up to 90% will be available for customers if required. Upon maturity you have the freedom of either booking your time deposit for tenure of your choice.. 24 hours worldwide protection: A unique partnership between Askari Bank and New Hampshire Insurance Company (American International Group.000/. you can't even imagine i... 100.per month on investment of every Rs.per month.. HASSAN RAZA E12MBA014—ALI E12MBA ... or let the bank roll it over automatically for a like period.e... 917/. your Askari Bank's Value Plus account is there to take care of you ...profit on the encased blocks. 40 MR. At home or at work. Pakistan) brings global accidental protection for your entire family.for one year!" “Earn Rs. 842/. Askari Mahana Bachat Account (1 + 3 Years Term) “Earn Rs.round the clock . 20/. 100.000/for three years!” Askari Mahana Bachat Account is a Term Deposit facility available to individual customer with the option of 1 and 3 Years tenure. .. It has been designed keeping in view savings needs of individual investors who don’t want to block their funds for longer terms.per month on investment of every Rs.This is a choice enrolment plan with an automatic monthly premium deduction facility at a price so low ..providing insurance cover of up to 4 times* the average balance in your account .

265. In line with our tradition of innovation. This account is for individual investors whose purpose is long term savings with high returns. 9. Askari Roshan Mustaqbil Deposit: Askari Bank has launched the Askari Roshan Mustaqbil Deposit. Your Bank enjoys a strategic competitive advantage over all Domestic players by virtue of its leadership. Askari Bank takes pride in announcing launch of Askari Bank's Debit Card. large network and Technological advancement.will increase to Rs. 100. 7. HASSAN RAZA E12MBA014—ALI E12MBA . Askari Deposit Multiplier Account: “Value of initial investment of Rs.000/. Invest now in the form of monthly deposits for five years and get paid back the same amount for the next five years while receiving your principal amount in full at the end of the tenure. With Askari Roshan Mustaqbil Deposit you can double your investment in a time period of ten years. a saving plan specially designed for individual investors who wish to invest now for a regular return at a later stage while keeping their principal amount intact. ASKARI CARD: Askari Bank is committed to provide you innovative and competitive solutions to your banking needs in a more efficient and personalized manner.at maturity! Aim higher with your investments with Askari Deposit Multiplier account. 41 MR. With a tenure of 10 Years and a competitive rate of return on maturity this account is ideal for investors who wish to start saving for their future today.000/.6.

dine at restaurants. which enables business community to receive the financing required by them based on their cash flows.Askari Debit Card means freedom. convenience and security. Mortgage Finance 42 MR. Our financial instruments provide greater financial freedom and security in an unmatched way to our valued customers. Askari Debit Card is your new shopping companion which enhances your quality of life by letting you do shopping. pay your utility bills. withdraw and deposit cash through ATM anywhere. Askari Bank offers you its "Rupee Travelers Cheques" eliminating all financial risks while traveling. so that you can have retail transactions with complete peace of mind. transfer funds. comfort. HASSAN RAZA E12MBA014—ALI E12MBA . Our valued customers can enjoy the convenience of getting financing on attractive terms with the minimum processing turnaround time. anytime. Our goal is to offer a loan. Travelers Cheques Askari Bank Limited has always remained at forefront in introducing innovative and unique products in banking sector. ACBL is providing loans to small and medium size business enterprises under Askari Bank's Business Finance Scheme. So avoid risk of carrying cash through Askari Bank's Rupee Traveler Cheque Business Finance: In pursuance of the National objectives to revive the economy of the country.

000/.Askari "Mortgage Finance" offers the convenience of owning a house of choice.will increase to Rs. while living in it at its rental value. Islamic banking services: Islamic Banking was launched under the brand 'Askari Islamic Banking'. Askari Deposit Multiplier Account “Value of initial investment of Rs. 100.at maturity! Aim higher with your investments with Askari Deposit Multiplier account. This account is for individual investors whose purpose is long term savings with high returns. With a tenure of 10 Years and a competitive rate of return on maturity this account is ideal for investors who wish to start saving for their future today. The installment plan has carefully designed to suit both the budget & accommodation requirements. by opening 6 dedicated Islamic Banking branches in major cities of the 43 MR. HASSAN RAZA E12MBA014—ALI E12MBA .000/. It has been designed for enhancing financing facility initially for employees of corporate companies for purchase/ construction/ renovation of house. 265.

All funds obtained.country. in the following areas:  Islamic Corporate Banking  Islamic Investment Banking  Islamic Trade Finance  Islamic General Banking  Islamic Consumer Banking Islamic Banking products have been approved by the Bank's Shariah Advisor. A comprehensive range of Islamic Banking products and services is being offered. under supervision of the Shariah Advisor. Askari Islamic Banking opens the doors for Halal banking solutions. in order to meet customer's demand of Shariah Compliant Banking. invested and shared in Halal modes & investments. Further expansion is planned with improved capabilities for offering products conforming to the Shariah principles. As per Shariah requirements. Agriculture Finance Solutions 44 MR. funds and products of Islamic Banking are managed separately from the Conventional Banking side. Our objective is to put in place an efficient banking system supportive to economic justice and welfare of society in line with Shariah standards. HASSAN RAZA E12MBA014—ALI E12MBA .

therefore. The services related to agriculture financing are:  kissan tractor finance 45 MR.The role of agriculture in Pakistan economy is of pivotal nature.Insurance covers of leased assets. easy terms and conditions. should have the basic ingredients to provide adequate amount at the right time and in the right form to help farmers in making a productive use of loan funds. animals. adequate and timely financial assistance to the farmers will improve production potential of agriculture sector in the country.  Convenient repayment terms based on cash flow abilities. However. HASSAN RAZA E12MBA014—ALI E12MBA . The program features:  A broad array of credit lines designed to meet farming requirements. Due to diverse geographical and climatic conditions the country has tremendous potential for growth and development in agriculture.  Availability of interest free package for inputs and tractors etc.  Availability of leased Tractors / Transport without Land / Collateral.  No Pre-adjustment penalties.  No Hidden Cost. The modern concept of agricultural credit envisages establishment of an efficient institutional credit system to serve as a package of credit. A successful credit evaluation system. crops and life assurance of borrowers. supplies and knowledge for the overall strength of the farmers who at present suffer from low productivity and financial insecurity.  Earn prompt payment Bonuses and reduce financial costs  .  Repay and borrow at your convenience on revolving credit basis at lowest markup rates renewal able after three years. ASKARI KISSAN AGRICULTURE FINANCE PROGRAM The Askari Kissan Agri Finance Program (AKAFP) has been designed to meet ON FARM / OFF FARM credit requirements of farmers on the most convenient. flexible.

HASSAN RAZA E12MBA014—ALI E12MBA . kissan ever green fiancé     kissan aabpaashi finance kissan livestock development finance kissan farm mechanization finance kissan farm transport finance PRICE 46 MR.

 The bank staffs in higher posts are also in a position to waive some charges in order to oblige their customers.  Maximum market share. The other three aspects are product. promotion. the Rest being cost centers. Askari commercial bank use different price strategy for different products and service To achieve the organization financial goals for each product it use different strategy When any new product is lunched by the Askari commercial bank the top management Of the organization must the see the marketing objective before selecting a suitable Price for a product.Pricing Policies At Askari Commercial Bank Limited the pricing strategies applicable are:  One price strategy  Flexible price strategy  For Priority Customers many of the charges are waived in order to facilitate them and provide them with high-class services.  The Bank offers deposits at competitive prices. and place. 47 MR. Price is the only revenue generating element amongst the 4ps.  So the pricing strategies are adaptable and stern depending upon the type of the customer. Pricing is one of the four Ps of the marketing mix. The More clearer the company's objectives the more easily to set a price Following are the possible pricing objectives  Survival  Maximum current profit. HASSAN RAZA E12MBA014—ALI E12MBA . the marketer is needed to review the company's objectives.

When the management set its marketing objective its position in the market and the Product nature where it is an innovative product and creates monopoly in the market When the top management set its pricing objective then stage of setting the price of the Product come Following are the steps in setting price for a product:  Selecting the pricing objectives.  Selecting a pricing method  . Maximum market skimming.  Estimating costs. HASSAN RAZA E12MBA014—ALI E12MBA .  Product quality leadership. prices and offers.  Determining the consumers' demand.  Analyzing the competitors' costs. Selecting the final price ACBL see the nature of product and charge price according to product if the product Is innovative it charge higher margin before lunching the new product the top Management must see and analyze the demand of product and estimate its costs Analyzing completion cost price and offer and then chooses a pricing strategy according To company objective Askari commercial bank has different product and services Each is based on its own target market and expectation toward the customer price is only Key which generate the revenue for the organization to achieve its financial objective And the success and failure of product and service is depend on the price strategy the Detail of some product and service and their marketing strategy is given below: 48 MR.

Kissan Tractor Finance. Kissan Aabpashi Finance Premium pricing is the practice of keeping the price of a product or service artificially high in order to encourage favorable perceptions among buyers Pricing method whereby the selling price of a product is calculated to produce a particular rate of return on investment for a specific volume of production Charge the price accoding to competitor Price strategy Personnel finance Price discrimination Product line pricing Agriculture Finance Deposit Multiplier Account Premium pricing Askari Rupee traveler cheque Target pricing Askari car Finance Competition based pricing Islamic Banking 49 Competition basedE12MBA014—ALI Charge the price according MR.Product & Service Strategy Kissan Tractor Finance Electronic Bill Payment Services Cost-plus pricing Market-oriented pricing Detail Price = Cost of Production + Margin of Profit. HASSAN RAZA E12MBA pricing to competitor Price strategy . Also with the cost price Charge different price for civilian customer and army customer Askari commercial bank offer a range of product line for former such like Kissan Ever Green Finance. Setting a price based upon analysis and Research compiled from the targeted market.

WAPDA.a.750 p. Small Medium Large Rs.000 p.a Charge price according to usage or service UTILITY BILLS (PTCL.000 p.200 p.700 p. 3. Rs. HASSAN RAZA E12MBA014—ALI E12MBA .a Extra Large XXL(16”x31”) Rs. Service Charges RS 8 Rupees payable by utilities companies Charge a fix fee for every customer AGRICULTURE BANKING Processing Fee for following Finances: 1% of the sanctioned facility amount 50 MR.The detail of product and service and their pricing strategy is given below which is Based on company financial objective: SAFE DEPOSIT LOCKERS Fee for safe deposit lockers (to be recovered in advance or at the commencement of the period yearly/half yearly/quarterly as the case may be)      . 3. Rs. . 1. SNGPL) A. 1. 6.a.a Extra Large XL (16”x 16”) Rs.

1. 0.  Askari Kissan Livestock Development Finance  Askari Kissan Aabpashi Finance  Askari Kissan Transport Finance  Askari Kissan Green House & Tunnel Finance  Askari Kissan Farm Storage Finance  Askari Kissan Model Dairy Finance  Askari Kissan Gold Fish Finance.(flat) 51 MR. Askari Kissan Evergreen Finance.  Service charges on delayed payment of markup/Installment of TF/rollover of revolving credit facilities. 1. 500/.(flat) Rs.  Askari Kissan Tractor Finance.46/1000 on daily product Transfer of Facility (on request within the bank) Rs.     overdue by 31 days to 60 days overdue by 61 days to 90 days overdue (past) 90 days (whichever is higher) Rs.or Rs.  Askari Kissan White Pearl Finance  Askari Kissan Murghban Finance  Askari Kissan Gulban Finance  Askari Kissan Samar Bahisht Finance  Asan Mali Sahulat. 1.500/. HASSAN RAZA E12MBA014—ALI E12MBA .000/.  Askari Kissan Farm Mechanization.(flat) Rs.000/.

20% of loan amount max.20% of loan amount max. Processing fee for Armed Forces personnel i) Clean .5. Up to Rs. 500/. 500/(Including legal & documentation charges) ii) Secured . Rs.20% of loan amount min.20% of loan amount max.5.20% of loan amount min.1. Processing Fee i) Clean .20% of loan amount min.(Flat) b.1. Rs. Processing Fee Rs. 500/(Legal & documentation charges at actual) Mortgage Finance a. HASSAN RAZA E12MBA014—ALI E12MBA .2.3. Legal/documentation/valuation/income Estimation charges at actual 52 MR.5.1. Amendments in terms of approval Rs. 800/(Including legal & documentation charges) ii) Secured .1.(flat) Provide a range of product and service to former and provide different loans for Agriculture Retail banking: Personal Finance a. 500/. 750/(Including legal & documentation charges) ii) Secured – 1.1.5. 500/(Legal & documentation charges at actual) Smart Cash a.1. Rs. Up to Rs. Up to Rs. 500/(Legal & documentation charges at actual) b. Processing fee for civilians i) Clean .

b) Up to 10% of the outstanding balance. 200/.2.per cheque Business Finance Processing Fee Rs.5. Late Payment Charges Rs. Auto Finance a. 500/.600/.5.(Flat) d. 500/. Legal/documentation/valuation/income Estimation charges at actual 53 MR.(Flat) Enhancement Charges Rs. irrespective of the time period Balloon Payment allowed up to a maximum of 20% of The outstanding balance in a year Additional balloon Payment be up to 5. Enhancement Charges Rs.non-refundable) b. 600/. 000/.(Rs. 500/. HASSAN RAZA E12MBA014—ALI E12MBA . Processing Fee Rs. Balloon Payment Rs.(Flat) Legal/documentation/valuation/income Estimation charges at actual Renewal Fee Rs. in case of balance Transferred to other bank.c.5. Premature Termination Charges a) In case of early settlement by the borrower charges will be Applicable in the following manner i) 1stYear: Unto 6% on outstanding balance ii) 2ndYear: Up to 5% on outstanding balance iii) 3rdYear onwards: Up to 4% on outstanding balance.(Flat) Cheque Return Charges Rs.per installment f.5% charges on the amount being paid g.5.250/.(per cheque) Late Payment Charges 21% of the overdue am Premature Termination Charges Up to 6% of the limit. 500/.5.

c.600/The price is based on competitor price and price include margin + cost Place 54 MR.25% Charges on the amount being paid (balloon payment amount) e. Balloon Payment 15% of the outstanding balance in a year subject to 3. Cheque Return Charges Rs. Premature Termination Charges Up to 6. Late Payment Charges Rs.5% of the outstanding loan amount d. HASSAN RAZA E12MBA014—ALI E12MBA .600/f.

HASSAN RAZA E12MBA014—ALI E12MBA .Main offices 55 MR.

Address : City: Manager: PABX #: E-Mail:

ASKARI BANK LIMITED AWT PLAZA BRANCH RAWALPINDI Rawalpindi Region : North 9063200 / 9273178 Manager (Ops) : 9063198 / 9273177 9063158 Fax No: 9273175 / 9273180 / 9273181 b0001@askaribank.com.pk Tlx:

AWT PLAZA BRANCH, Rawalpindi

Branch Code :

0001

Address : City: Manager: PABX #: E-Mail:

Saima Trade Tower I.I.Chundrigar Road Br,karachi Karachi Region : South 0333-2335404 Manager (Ops) : 0321-3077975 021-2630731 Fax No: 021-2631176 b0002@askaribank.com.pk Tlx:

M.A. Jinnah Road,Quetta Main, Quetta Branch Code : 0003 Address : M.A.Jinnah Road Main Br, Karachi, Karachi Branch Code :0002 City: Quetta Region : South Manager: 081-2833333 Manager (Ops) : 081-3836051 PABX #: 081-2843751-4 Fax No: 081-2845602 E-Mail: b0003@askaribank.com.pk Tlx:

56 MR. HASSAN RAZA E12MBA014—ALI E12MBA

PESHAWAR CANTT, Peshawar Branch Code : 0004 Address : FAKHR-E-ALAM ROAD PESHAWAR CANTT City: Peshawar Region : North Manager: 091-5271653 Manager (Ops) : 091-5279683 PABX #: 091-9212433-6 Fax No: 091-5276391 E-Mail: b0004@askaribank.com.pk Tlx:

Main / SAT Branch, Lahore Branch Code : 0006 Address : 7-A, Shahrah-e-Aiwan-e-Tijarat City: Lahore Region : Central Manager: 042-9203081 Manager (Ops) : 042-9203633 PABX #: 042-9203673-7 Fax No: 042-9203351 E-Mail: b0006@askaribank.com.pk Tlx:

Jinnah Avenue Branch, Islamabad Branch Code : 0008 Address : 24-D, Rasheed Plaza, Jinnah Avenue, Blue Area, P.O. Box 1499 City: Islamabad Region : North Manager: (051) 2871144 Manager (Ops) : (051) 2271801 PABX #: (051) 2271794-6 Fax No: (051) 2271797 E-Mail: b0008@askaribank.com.pk Tlx: 54683 ASKRI

PK
University Road Branch, Faisalabad Branch Code : 0009 Address : University Road Faisalabad City: Faisalabad Region : Central Manager: 041-9201001,0333-6509781 Manager (Ops) : 041-9201003,0333PABX #: E-Mail: 9201008-11 b0009@askaribank.com.pk Fax No: Tlx: 6664285 041-9201006

Gujranwala Branch, Gujranwala

Branch Code :

0012

57 MR. HASSAN RAZA E12MBA014—ALI E12MBA

Address : City: Manager: PABX #: E-Mail:

Opposite General Bus Stand G.T Road Gujranwala Gujranwala Region : Central 055-9200857 Manager (Ops) : 055-9200859 055-9200855-56 Fax No: 055-9200858 b0012@askaribank.com.pk TX:

Abdali Road Multan, Multan Address : 64-A, Abdali Road City: Multan Manager: 061-9201399 PABX #: 061-9201391-4 E-Mail: b0013@askaribank.com.pk

Branch Code : Region : Manager (Ops) : Fax No: TX:

0013

Central 061-9201388 061-9201395

Bahawalpur, Bahawalpur

Branch Code :

0025

Promotion
Promotion is a form of corporate communication that uses various methods to reach a targeted audience with a certain message in order to achieve specific organizational objectives. Nearly all organizations, whether for-profit or not-for-profit, in all types of industries, must engage in some form of promotion. Under the concept of Integrated Marketing Communication ACBL attempt to develop a unified promotional strategy 58 MR. HASSAN RAZA E12MBA014—ALI E12MBA

the advent of computer technology and.  Reinforce the Brand The objective of promotion strategy is to getting customers to buy an organization’s product Promotional Strategies use by ACBL Advertising The main source is used by ACBL is advertisement it involves non-personal. The purpose and objectives for marketing promotions of ACBL may include the Following:  Build Awareness  Create Interest  Provide information  Stimulate Demand. Advertising in News Papers and Television is used as a marketing tool by ACBL However it is often used when a new product is introduced. in particular. Bill Board: Another source used by ACBL to convey message is billboard the main areas of urban era near the school/college airport and high traffic areas the bill board are placed to convey message. While historically advertising has involved one-way communication with little feedback opportunity for the customer experiencing the advertisement. and.involving the coordination of many different types of promotional techniques. to remain a loyal long-term customer. HASSAN RAZA E12MBA014—ALI E12MBA . in most cases. the Internet has increased the options that allow customers to provide quick feedback. mostly paid promotions often using mass media outlets to deliver the marketer’s message. 59 MR.

The branch has well learned sales executives i. HASSAN RAZA E12MBA014—ALI E12MBA . and Savings & Term Deposit Information etc. VISA Card Information.e.Broachers: The Bank publishes various brochures for the general guidance of the customers. Publicity: 60 MR. These include the Schedule of Bank Charges. Business alumnae. Personal selling is used both for attracting individual and corporate clients. Personal Selling: Personal selling is also a norm at the Bank.. Internet Askari commercial bank use internet as a promotion tool to convey the message to the target audience all the information related to product and service and the organization is available on the internet Social marketing ACBL has made generous contribution in the area of sport culture poverty woman & child care health & medical science human development and scientific research ACBL sponsored international squash tournaments were professional from all over the world participated Askari commercial has also sponsored other sports tournament include Golf at both amateur and professional level the bank has also contribute toward awareness program for AIDS water conservation and blindness and has promoted the country 's cause on international forum by cosponsoring the first interactive encyclopedia of Pakistan. Public Relations The most popular tool use by the banker and manger to increase their deposit crate awareness and loyalty public relation s also tool of promotion.

This type of promotion uses third-party sources. to offer a favorable mention of the marketer’s company or product without direct payment to the publisher of the information. Chapter: 4 FIANANCIAL STATEMENT ANALYSIS  Trend/ horizontal analysis  Vertical Analysis  Financial Ratio Analysis 61 MR. For example media cover any Tournament that is sponsored by ACBL. HASSAN RAZA E12MBA014—ALI E12MBA . and particularly the news media.

62 MR. budgeting. however. forecasting. and improving of all financial details within an organization.FIANANCIAL STATEMENT ANALYSIS Financial Analysis Financial Analysis refers to the assessment of a business to deal with the planning. monitoring.  Trend/ horizontal analysis  Vertical Analysis  Financial Ratio Analysis Horizontal analysis: A procedure in fundamental analysis in which an analyst compares ratios or line items in a company's financial statements over a certain period of time. Three most common methods used for financial analysis are. The analyst will use his or her discretion when choosing a particular timeline. the decision is often based on the investing time horizon under consideration. HASSAN RAZA E12MBA014—ALI E12MBA .

The balance sheet must follow the following formula: Assets = Liabilities + Shareholders' Equity Income Statement A financial statement that measures a company's financial performance over a specific accounting period. It allows assessment of changes in the relative importance of expense item over time and the behavior of expense items as sales change Balance sheet: A financial statement that summarizes a company's assets. as well as the amount invested by the shareholders. typically over a fiscal quarter or year. HASSAN RAZA E12MBA014—ALI E12MBA . 63 MR.The process of dividing each expense item of a given year by the same expense item in the base year. These three balance sheet segments give investors an idea as to what the company owns and owes. liabilities and shareholders' equity at a specific point in time. It also shows the net profit or loss incurred over a specific accounting period. Also known as the "profit and loss statement" or "statement of revenue and expense". Financial performance is assessed by giving a summary of how the business incurs its revenues and expenses through both operating and non-operating activities.

327 2.945 19.997 _ 472 3.444 39.818 8.554 143.073 7183 2008 2009 64 MR.970 5.585 15.356 3.036 254.667 19.759 193.627 17.006 6.266 3.949 5.030 3.497 14.220 169.948 16.220 12.845 _ 10.034 9.BALANCE SHEET Rupees in million 2007 Assets Cash and balances with treasury banks Balance with other banks Lending to other financial institutions investments advances Operating fix assets Deferred tax assets Other assets Total assets Liabilities Bills payable Borrowings Deposits and other accounts Subordinate loans Liabilities against assets subjects to finance lease Deferred tax liabilities Other liabilities Total liabilities Net assets Share capital Reserves 13.906 12.191 2.955 4.535 182.996 _ 13 4.128 _ 5.431 100.386 8.266 _ 8.046 135.364 4.995 _ 334 4.678 128.614 67.190 167.964 206.780 5.378 14.300 205.172 2.037 2.833 239.971 4. HASSAN RAZA E12MBA014—ALI E12MBA .480 35.677 2.059 7.

949 254.035 936 12.971 206.191 886 13.266 182.145 12.806 14. HASSAN RAZA E12MBA014—ALI E12MBA .100 166 12.172 309 12.327 65 MR.143 1.inappropriate profit Total Surplus on revaluation of assets net of tax Total capital Total liabilities and capital 2.

Horizontal Analysis: 2007 vs 2006 2008 vs 2007 20% 13% -69% -10% 28% 61% 62% 13% -2% -13% 17% -97% 48% 14% 6% 35% 10% -86% -1% 463% 6% 13% 2009 vs 2008 21% 111% 3% 88% 5% 19% 12% 23% 14% 27% 23% 100% 2469% 2% 24% 15% 25% -6% 187% 9% 93% 15% 23% Assets Cash and balances with treasury banks Balance with other banks Lending to other financial institutions investments advances Operating fix assets Deferred tax assets Other assets Total assets -10% -52% 72% 38% 2% 35% 45% 10% 43% 17% 8% -36% 24% 10% 11% 50% 19% 19% 26% -88% 11% 10% Liabilities Bills payable Borrowings Deposits and other accounts Subordinate loans Liabilities against assets subjects to finance lease Deferred tax liabilities Other liabilities Total liabilities Net assets Share capital Reserves inappropriate profit Total Surplus on revaluation of assets net of tax Total capital Total liabilities and capital Interpretation: From the analysis above we have seen that total assets of sari bank has been decreased from 2007-2009.the main reason for this increase is that bank investment increase in 66 MR. HASSAN RAZA E12MBA014—ALI E12MBA .

country’s economic position and many other factors.  Bank’s total assets have been increased with a minimum amount from 2007-2009  Bank’s investment shows a large amount of increase the main reason for this change is its less lending to financial institutions and large amount of balances of other banks  The total liabilities of bank also decreased which is not a favorable point but it may be due to change in governmental policies or government regulations. Hence the overall trend of the bank’s financial position that we have analyzed from horizontal analysis is that.  The capital of bank also shows a good point of bank’s financial position. HASSAN RAZA E12MBA014—ALI E12MBA . When we make a look on liabilities section of bank we have analyzed that the banks liabilities have been increased in 2009 as compared to 2007 and 2008. Now move to equity section from the analysis of bank’s capital we came to know that the total capital of bank has been increased in 2009 than in previous years which is a favorable point for bank. Income statement 2007 2009 2008 67 MR.which means that a large amount of debts have been taken by a bank in this year.another reason for increase in assets of bank is the large amount of balances of other banks.2009 with a large amount i-e 88%.

HASSAN RAZA E12MBA014—ALI E12MBA .68 MR.

Mark–up / return / interest earned Mark–up / return / interest expensed Net mark–up / interest income Provision against non–performing loans and advances Impairment loss on AFS investment Provision for impairment in the value of investments Bad debts written off directly Net mark–up /interest income after provisions Non mark–up/interest income Gain on sale of investments – net Fee.996 34 7.920 2 3922 2.76 2.377 5.555 8.308 (2) 163 538 404 2.672 6.300 99 (234) 37 1.143 8.565 7.662 13.743 3. commission and brokerage Unrealized gain on revaluation of income investments classified as held for Dividend income Income – from trading net dealing in foreign Other income currencies Total non–markup / interest income Non mark–up/interest expenses: Administrative expenses Other charges Total non–markup / interest expenses Profit before taxation Taxation – current – prior years’ – deferred 15.916 461 17 (50) 144 1.101 4.670 22.915 6.108 Profit after taxation 0.258 22 174 874 343 2.686 6.393 10.361 1.073 2 137 656 337 4.651 7.536 18.324 431 77 2.118 2.707 6.802 2.458 3.033 2.642 562 120 (246) 108 (147) 69 (381) 75 534 MR.790 12 4.18 Basic / diluted earnings per share – 6.61 Rupees .681 386 1.629 9.825 1 247 4.037 3.904 11 5.030 1. HASSAN RAZA E12MBA014—ALI E12MBA 2.

Horizontal Analysis: 2007 vs 2006 Mark–up / return / interest earned Mark–up / return / interest expensed Net mark–up / interest income Provision against non–performing loans and advances Impairment loss on AFS investment Provision for impairment in the value of investments Bad debts written off directly Net mark–up /interest income after provisions Non mark–up/interest income: Fee. commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale of investments – net Unrealized gain on revaluation of investments classified as held for trading – net Other income Total non–markup / interest income Non mark–up/interest expenses Administrative expenses Other charges Total non–markup / interest expenses Profit before taxation Taxation – current 20% 24% 15% 248% 247% -44% 2008 vs 2007 21% 23% 20% -2% -50% 100% 45 45% 2009 vs 2008 23% 28% 17% -39% 100% 7600% -100% -28% 67% 6% 26% 12% 2008% 200% 5% 113% 7% 46% 100% 46% -31% -90% 17% 27% 33% -98% 1000% 2% -41% -10% 23% -9% 23% -80% -82% 4% -6% -38% 289% -109% 18% -6% 36% 18% 209% 19% 256% 3206% 70 MR. HASSAN RAZA E12MBA014—ALI E12MBA .

 Expenses done by a bank in these three years shows that in 2009 bank has done low expenses due to which its income increased. Vertical analysis: Technique for identifying relationship between items in the same financial statement by expressing all amounts as the percentage of the total amount taken as 100.the main reason for this increase is:  Net mark up interest income is increased in2009 because of loans and advances taken by a bank in 2009 decreases with large amount. cash and other assets are shown as a percentage of the total 71 MR. Another reason for this increase is increases in net mark up interest earned by a bank. In a balance sheet. Hence the horizontal analysis of askari bank shows that company’s financial position was much better n 2009 as compared to 2007 and 2008.– – prior years’ deferred -100% -318% -135% 19% 19% -79% -144% -120% -86% -89% -340% -237% 612% 187% 187% Profit after taxation Basic / diluted earnings per share – Rupees Interpretation: Net income of askari bank has been increased with a large amount in 2009 as compared to 2007 and 2008. We have seen a decrease in bank’s administration expenses. HASSAN RAZA E12MBA014—ALI E12MBA .  Total non mark up interest income has been decreases in 2009.it were a large amount in 2007 and 2008 which was not a favorable point. for example.

each expense is shown as a percentage of the sales revenue. For example.assets and. HASSAN RAZA E12MBA014—ALI E12MBA . Vertical analysis Balance sheet: 2007 2008 2009 72 MR. In income statement the horizontal analysis will be done by dividing all accounts by mark up interest/return earned. in an income statement. an analyst may study a firm’s balance sheet to compare the level of current assets with the level of current liabilities in order to measure liquidity. Financial statements using this technique are called common size financial statements dividing each expense item in the income statement of a given year by net sales to identify expense items that rise more quickly or more slowly than a change in sales. In balance sheet all accounts of assets section will be divided by total assets while in liabilities and owner’s equity sectional accounts will be divided by total liabilities and equity. Analyst often studies a firm’s income statement to compare net income with total sales. Example:.

vs 2006
7% 2% 8% 22% 55% 3% 3% 100%

vs 2007
8% 2% 2% 17% 63% 4% 4% 100% 1% 8% 87% 2% -

vs 2008
8% 3% 2% 26% 53% 4% 4% 100% 1% 8% 86% 3% -

Assets
Cash and balances with treasury banks Balance with other banks Lending to other financial institutions investments advances Operating fix assets Deferred tax assets Other assets Total assets

Liabilities
2% Bills payable Borrowings 10% Deposits and other accounts 84% Subordinate loans 2% Liabilities against assets subjects to finance lease Deferred tax liabilities

Other liabilities Total liabilities Net assets Share capital Reserves inappropriate profit Total Surplus on revaluation of assets net of tax Total capital Total liabilities and capital

2% 100% 7% 25% 57% 17% 99% 1% 100%

2% 100% 7% 32% 59% 2% 93% 7% 100%

2% 100% 6% 34% 48% 6% 88% 12% 1005

73 MR. HASSAN RAZA E12MBA014—ALI E12MBA

Interpretation:
From the analysis of balance sheet, we have concluded that the total assets grew by 7% contributed by 42% increase in cash balances, 3% increase in investments and 13% in advances. The investments in 'held for trading' rose by 69% which was added to the investments growth while nominal increases were observed in investments in 'held to maturity' and 'available for sale'.

Vertical Analysis: Income statement
2007 vs 2006 2008 vs 2007 2009 vs 2008

74 MR. HASSAN RAZA E12MBA014—ALI E12MBA

Mark–up / return / interest earned Mark–up / return / interest expensed Net mark–up / interest income Provision against non–performing loans and advances Impairment loss on AFS investment Provision for impairment in the value of investments Bad debts written off directly

100% 57% 43% 26% 26%

100% 58% 42% 21% 1% 22% 20%

100% 60% 40% 10% 2% 13% 27%

Net mark–up /interest income after provisions Non mark–up/interest income Fee, commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale of investments – net Unrealized gain on revaluation of investments classified as held for trading – net Other income Total non–markup / interest income

17%

7.1% 0.9% 4.3% 15.6% -

6.8% 0.9% 4.7% 0.1%

5.8% 0.7% 2.4% 0.6% -

2.2% 30% 47%

1.9% 15% 35%

1.8% 11% 38%

Non mark–up/interest expenses: Administrative expenses Other charges Total non–markup / interest expenses Profit before taxation Taxation – current – prior years’ – deferred

32% 0.1% 32% 15% 1% -2% -2%

32% 0.1% 32% 3% 1%

31% 0.2% 31% 7% 2.5% 0.5% -0.7%

75 -3% 0% 2.0% MR. HASSAN RAZA E12MBA014—ALI E12MBA 18% 2% 4.9% Profit after taxation

Basic / diluted earnings per share – Rupees

because of more expenses and payment of taxes by a bank in this year. 76 MR. HASSAN RAZA E12MBA014—ALI E12MBA .e.Interpretation:  On the total mark up interest earned. the lager part is contributed by mark up interest expense in 2009 i. 60%  Profit after taxation is lower in 2009 as compared to other two years.

the ratios of one organization may be compared with similar organizations or with industry averages at the same point in time. allowing an analyst to make an informed business or investment decision. First. For the professional. This is a type of "benchmarking" so that one may determine whether the organization is "average" in performance or doing better or worse than others. Second. the analyst can compare a present ratio with past (or expected) ratios for the organization to determine if there has been an improvement or deterioration or no change over time. conducting such in-depth analyses is critical.Ratio analysis: The ratio analysis and industry analysis tools below are very useful for individuals to instantly assess a company or industry by making two basic types of comparisons. Ratio analysis measures:    Liquidity Profitability Degree of Indebt ness 77 MR. HASSAN RAZA E12MBA014—ALI E12MBA .

46 1. HASSAN RAZA E12MBA014—ALI E12MBA .04 1.Liquidity: Current Ratio = Current Assets / Current Liabilities 2009 Current assets Current liabilities 109256/ 234211 2008 197227/ 188449 2007 176636/ 166275 0.06 90 80 70 60 50 40 30 20 10 0 current assets current liabilities 2007 2008 2009 78 MR.

HASSAN RAZA E12MBA014—ALI E12MBA .Analysis: Current ratio should not be less than 2. This indicates that the current assets are twice than current liabilities. 2008 197227 188449 8778 2007 176636 166275 10361 Current liabilities 90 80 70 60 50 40 30 20 10 0 current asstes current liabilitis 2007 2008 2009 Analysis: 79 MR. Care should be taken that current assets are not unduly inflated by over valuation Here in this case the current ratio of Askari bank is lesser in 2007 as compared to 2008 and 2009 which is not a good sign and shows poor liquidity position of the bank Working Capital Current assets = 2009 109256 234211 -124955 Current Assets – Current Liabilities.

in 2009 the working capital of bank is negative which means bank’s assets are less than liabilities. HASSAN RAZA E12MBA014—ALI E12MBA .233 2008 461/ 5.478 90 80 70 60 50 40 30 20 10 0 earning before interset interest expense 2007 2008 2009 Analysis: 80 MR.Working capital is greater in 2007 because of lesser liabilities of bank as compared in 2009 and 2008. Times Interest Earned = Earning Before Tax / Interest Exp 2009 Earning Before Tax / 1642/ Interest Exp 7030 0.802 0.077 2007 2300 / 4.916 0.

112 90 80 70 60 50 40 30 20 10 0 total debt total asset 2007 2008 2009 81 MR. In 2007 company is paying its interest payments on time but in the next two years this ratio starts falling.550 / 182.This ratio indicates the payment of interest by the bank.186 / 206.191 0.172 0.084 2008 18. HASSAN RAZA E12MBA014—ALI E12MBA . Debt Ratio = total Debt / Total Asset total Debt / Total Asset 2009 21663 / 254327 0..085 2007 20. From the above analysis this ratio has been decreasing from 2007-2009.

64 90 80 70 60 50 40 30 20 10 0 total debt total equity 2007 2008 2009 82 MR.Analysis: Debt ratio means how much debt company has been taken from its total assets.100 1. The ratio has been decreased from 2007-2009 which means bank total debt has been decreased due to which the amount of ratio has been decreases which is favorable for bank. Debt Equity Ratio = 2009 Total Debt / Total Equity 2008 18. HASSAN RAZA E12MBA014—ALI E12MBA .186/ 12.035 1.69 / Total Debt / Total Equity 21663/ 13143 1.550 12.51 2007 20.

032 2008 / 2. HASSAN RAZA E12MBA014—ALI E12MBA .191 0.045 / 90 80 70 60 50 40 30 20 10 0 operating income average total assets 2007 2008 2009 Analysis: This ratio shows that the return is lesser in 2008 as compared to return on assets in the year 2007 (gradual increase). Although interest and discount on loans which is the 83 MR.172 0.370.012 2007 8.382 182.531.Analysis: This ratio is also decreasing from 2007-2009 which means the portion of equity financing of bank’s total debt has been fallen in these three years.035/ 206. Return on Assets = Operating Income / Average Total Assets Operating Income / Average Total Assets 2009 7689432 254327 0.

081 0. Another reason of decrease in return is the decrease in lending rate and increase in financial cost.036 0. but cost on deposits and borrowings which is the major expenditure of bank has increased more in 2007 than in 2008.415 Analysis: 84 MR. Net Profit Margin: Formula: (Profit After Tax / Mark Up interest expense) X 100 100 80 60After Tax / Profit 40 20Up interest Mark 0 expense 2007 2009 1108/ 13629 2008 2008 386 / 10651 2007 profit after tax 2681/ m arkup interst expense 6458 2009 0.major source of revenue for bank. HASSAN RAZA E12MBA014—ALI E12MBA . But again we have seen a small increase in this ration in 2009.

Here in this ratio we see that the ratio has decreased not only by the single factor but also due to increase in interest. HASSAN RAZA E12MBA014—ALI E12MBA . But overall profitability of bank is decreasing that is not a good performance point. So. Earning Per Share: 85 MR.Calculation made on the base of data available shows that profit earning after taxes in 2007 is greater than 2008 and 2009 years. both these factors has resulted an decrease of the return.

18 0. Of 1108 508 386 507 2681 405 Outstanding Equity Shares Ratios 2. 86 MR.Formula: (Profit After Tax / Total No. HASSAN RAZA E12MBA014—ALI E12MBA .76 6.61 3000 2500 2000 1500 1000 500 0 2009 2008 2007 Total No. Of Outstanding Equity Shares Profit After Tax Analysis: This ratio is also decreasing from 2007 to 2009. Of Equity Share) 2009 2008 2007 Profit After Tax Total No. It is not good from shareholder and investors perspective.

87 MR..060 250000 200000 150000 100000 50000 0 2009 2008 2007 Mark Up/interest expense Deposits Analysis: Calculation made on the base of data available shows that cost of borrowing is increasing from 2007-2009.066 167677 0. which is a healthy sign for the bank.Cost of Borrowing: Formula: (Mark up paid / Deposits) 2009 X 100 2008 2007 Mark Up/interest expense Deposits Ratio 13629 10651 8686 205970 0. HASSAN RAZA E12MBA014—ALI E12MBA .635 143037 0.

033 167677 0. Expenses Deposits Analysis: 88 MR. HASSAN RAZA E12MBA014—ALI E12MBA .033 250000 200000 150000 100000 50000 0 2009 2008 2007 Adm in. Expenses / Deposits) X 100 2009 2008 2007 Admin. Expenses Deposits Ratio 6996 5904 4790 205970 0.035 143037 0.Administrative Expenses To Deposit Ratio: Formula: (Admin.

This ratio shows the cost incurred to manage and collect the deposits. The bank should 89 MR.094 2008 16030 167677 0. Cash to Deposits Ratio: Formula: (Cash / Deposits) X 100 2009 Cash Deposits Ratio 19386 205970 0. In our analysis there is only a minor change in the amount of ratios during 2007-2009.095 2007 13356 143037 0.093 250000 200000 150000 100000 50000 0 2009 2008 2007 Cash Deposits Analysis: This ratio shows that how much is available to meet the demand liabilities of the depositors. The lower the ratio will be better for business. HASSAN RAZA E12MBA014—ALI E12MBA .

have reasonable cash balance to meet the customer requirements against their deposits in the bank. Chapter: 5 SWOT ANALYSIS  Strength  Weakness  Opportunity  Threat 90 MR. HASSAN RAZA E12MBA014—ALI E12MBA . In this case bank ratio was greater in 2008 as compared to 2007 and 2009 which is not a good sign from the bank point of view.

opportunities and threat is termed as SWOT Analysis. and carving ways to successfully tackle with the threats and ultimately converting them in the strengths for the organization. I have come across the following SWOT analysis of the bank. capitalizing over the emerging market opportunities. efficiently and securely. weaknesses. During six weeks of my stay at Askari Commercial Bank. STRENGTHS Leading private sector bank: Askari commercial bank is the leading private sector bank in the banking network in Pakistan with many of them online branches in major cities of the country. Automatic operations: The operations performed by the bank are highly automated that result in assurance for the customers that their transactions are completed reliably. Full day banking: 91 MR. HASSAN RAZA E12MBA014—ALI E12MBA . Such an analysis is very important for the management in retaining the strength.SWOT ANALYSIS An analysis indicating towards the organizations strengths. overcoming the weaknesses.

Electronic banking: The revolution in the banking in the form of electronic banking operations have opened avenues of excellent. Customer oriented banking: The priority banking centers of the bank offer an unmatched where the customer receives highly privileged services in a highly elegant environment. Designed specially for those who appreciate only the finest things in life. The customers of ACBL withdraw access their funds any time at all the ATM Sites with ASKCASH Logo. Customized solutions: The management of the bank believes in customer focused banking rather than the product oriented banking. ATM network: The bank has the largest ATM Network cross the country. efficient and quick services saving the time and costs of the 92 MR. The products and services designed by the bank are specifically tailored to the individual needs of its customers.One can avail the benefit of the services provided at the bank till 5:00 P.. Priority Banking offers the very highest levels of personalized banking to match customer’s unique status. It gives the chance of experiencing new standards in banking.m. which is highly useful for those customers who find it difficult to leave their officers in the morning. HASSAN RAZA E12MBA014—ALI E12MBA ..

customers and fortunately ACBL is among those few banks who are already reaping the benefits of electronic transactions. ethics. automatic teller machines. and electronic funds transfers among the others.e. ACBL management is quite sensitive to this issue. Electronic funds transfer: ACBL management is quite prepared to adopt the latest advancements in technology resulting in revolution in the banking operations such as check clearing process. 93 MR. computer based teller equipment. 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. HASSAN RAZA E12MBA014—ALI E12MBA . banking on the phone line thus saving the precious time of the customers Ethical concerns and public image: The organizations showing concern for the people. and environment enjoy good public reputation and are able to reap the benefits in the long run. WEAKNESSES In my opinions these are the points that might be detrimental to the efficiency and profitability of the bank.

Almost all the decision-making is in the hands of the upper management. Even though the people have been sacrificed in the new organizational developments. 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. 94 MR. was quite low. The employees are constantly rotated from one job to another job of totally different characteristic in the view of giving them the know-how of the working in all the departments.’ Centralization: There is a high degree of centralization in the bank. it is becoming clear that the true lasting competitive advantage comes through human resources and how they are Managed. Low job satisfaction: Understanding and the effective management of the human resources is the most difficult challenge faced not only by the bank but by all the organizations. Manual book keeping: Although the bank has computerized accounting system but. Lack of specialization: This famous and useful concept given by Adam Smith in 1776 seems to be missing in the bank. But centralization is effective up to a certain level otherwise it becomes inefficient and at times costly too. ACBL seems to not focusing on this highly critical issue as the job satisfaction level of the employees working at ACBL. Otherwise the situation might be like this ‘Jack of all and master of none. still the bankers use to make their entries in the accounting register.Not highly automated: The bank has still some of the traditional ways of operations in this advanced technological environment. HASSAN RAZA E12MBA014—ALI E12MBA . But I think this is not a very good tactics used by the management.

mistakes etc.Lack of training facilities: Presently there is no specific training program arranged for the new recruiters. It takes a bit time for the fresh one to learn the banking the result is huge amount of blunders. HASSAN RAZA E12MBA014—ALI E12MBA . They have to learn based on their observations and also their mistakes. OPPORTUNITIES Apart from the ones discussed in External Factors Evaluation Matrix. A large amount of foreign investment is attracted: A large amount of foreign investment is attracted to expand their business world wide It is external opportunity for Askari commercial bank to avail it and take a competitive edge and create a strong identity world wide Steady increase in Customer Deposits: It is opportunity for Askari commercial bank to steady increase customer deposit by adopting new marketing and promotion scheme and lunch new scheme for their customer Open branches in rural Areas: 95 MR. the bank is facing the following threats and opportunities currently: Promote Islamic Banking: Askari commercial Bank promote Islamic banking in all the branches only a few branches this service is available these are positive external environmental factors effecting the organization. There is pressure not only on the new learner but also on the person placed upon with this responsibility. resulting in monetary and non-monetary losses for the bank.

the job satisfaction level of the employee is very low resulting in high turnover. HASSAN RAZA E12MBA014—ALI E12MBA . 96 MR. Further more. It may result in decrease in the number of its exiting customers.It is opportunity for Askari commercial bank to expand their business in rural areas and met unmet segment in geographical areas and promote their business. this could be very alarming situation for the bank in case some of the competitors grasped the opportunity and lowered its rates. High charges: The schedules of charges indicate that the fees charged by the bank on the various services it provides are extremely high. They can also cut costs in this way. which is bad for any organization as there are huge monetary and nonmonetary costs involved in the fresh recruitments. The result would be either the lost of market share or decrease in the charges resulting in lowering the bank’s income. THREATS High Employees Turnover: As discussed above. Technological improvements: It is the opportunity for askari bank limited to make technical improvement in their operation and adopt new technologies of business and make their whole operation automatic it is convince for both customer and organization to save their time Use of ATM as a Credit Card: It can be an opportunity for ACBL to introduce ATM also as a credit card which will invite a different segment and which will improve profitability.

Collectively U. At present. Legal regulation: Legal regulation is serious threat for organization because Government change their policies and put different kind of taxes and regulation on the Organization top management always keeps the eye on moving trend of government High rate of inflation: Higher rate of inflation is a threat for Askari Commercial bank the prices of the product and services up and up and unemployment Is increasing very rapidly bank should adopt flexible policies to give relief their Customer High charges: The schedules of charges indicate that the fees charged by the bank on 97 MR. Bank of America and Citibank. three American banks are operating in Pakistan: American Express Bank.e. Less Experienced Staff: Owing to huge turnover of the employees. 16 to 18 percent annually) on 10-15 year fixed accounts.Less attractive rate of return: Commercial banks face considerable competition in attracting deposits from individuals or small investors. In contrast. the experienced staff. HASSAN RAZA E12MBA014—ALI E12MBA . banks hold approximately 9 Percent of all commercial banks' assets. Stiff Competition: SCB is currently facing strict competition from the foreign banks especially the American who banks enjoy a good market position. which banks find difficult to match. the Govt. Majority of the staff working in the bank branches is quite young and inexperienced. If the bank failed to bring down its high employees turnover. of experienced and well trained staff is very low. the no. of Pakistan national saving scheme offers attractive rates of return (approx.S. then it would be lacking the most important resources of any organization i.

Further more. HASSAN RAZA E12MBA014—ALI E12MBA .The various services it provides are extremely high. But in the case of a bank borrowing funds from outside parties is all the more vital because the entire banking system is based on it. this could be very alarming situation For the bank in case some of the competitors grasped the opportunity and lowered its Rates. The result would be either the lost of market share or decrease in the charges Resulting in lowering the bank’s income. The borrowed capital of a bank is much greater their own capital. Banks borrowing is mostly in the form of 98 MR. DEPARTMENTS The Askari Commercial bank has following department:  Account Opening department  Cash Department  ATM Department  Account Department  Remittance Department  Clearing Department  Foreign Trade Department  Credit Department  Credit Card Department ACCOUNT OPENING DEPARTMENT Borrowing funds from different sources has become an essential feature of today's business enterprises. It may result in decrease in the Number of its exiting customers.

deposits. It is for only transaction purposes. he incurs the obligation of the paying all cheques drawn against him to the extended of the balance in the account.  Askari Special Deposit Account.  Basic Banking Account  Ever Green Account CURRENT ACCOUNT In current account there is no interest on it. Current account is mostly opened for business. Asaad Bhutta is operating the account opening department along with performing some auxiliary functions of Check Book Issuing. Such deposit creation is done through opening an account in the Bank. These deposits are lent out to different parties. there are the following types of accounts:  Current account.  Saving Account.  Term Deposit. When a banker accepts a demand deposit. As there is no profit paid on this account it is also called chequing account because cheques can be drawn on it. 99 MR. HASSAN RAZA E12MBA014—ALI E12MBA . They are paid on demand. TYPES OF ACCOUNTS In ACBL. In ACBL Lahore Mr.

DEPOSIT SCHEMES PLS SAVING DEPOSITS

RATE OF RETURN 2.50%

MINIMUM BALANCE UPTO--24,999

PAYMENT OF RETURN 6MONTHLY

PRODUCT BASE MINIMUM MONTHLY BALANCE Rs.10,000

Following is a brief description of the current account

SAVING ACCOUNT
The purpose of this account is to induce the habit of saving individuals in the neighborhood. The profit is on the basis of 8.5% per 6 month. The minimum deposit for opening the account is Rs.100/-. Though individuals open such accounts for saving purpose, persons belonging to Armed forces and different military institutions are free to use this account on current basis. Following is a brief description of Saving Account

100 MR. HASSAN RAZA E12MBA014—ALI E12MBA

DEPOSIT SCHEMES PLS SAVING DEPOSITS

RATE OF RETURN 2.50% 3.00% 3.50% 4.00%

MINIMUM BALANCE UPTO--24,999 25000TO 99,999 100,000 TO 999,999 1,000,000 --------

PAYMENT OF RETURN 6MONTHLY

PRODUCT BASE MINIMUM MONTHLY BALANCE Rs.10,000

ASKARI SPECIAL DEPOSIT ACCOUNT
ASDA account is an interest bearing current account interest is paid. The payment of return is monthly, where as the rate of return with aspect to the amount of minimum deposit clear from deposit schedules in following table). It is also chequing account because cheques can be drawn on it. It is necessary for this account that the client must maintain a minimum balance of Rs. 50,000 at the end of the month. That’s why it is similar to current account. It is mostly opened by Business but individuals to open this account. Its code is 165.

TERM DEPOSITS
A term deposit is a deposit that is made for a certain periods of time at the end of the specific period. The customer is allowed to with draw the principle amount. ACBLs Term deposits are of types clear in the deposit scheme in the table). One of them is "Askari" Advantage one month. The rate of return on this account is 9.75%. The term 101 MR. HASSAN RAZA E12MBA014—ALI E12MBA

deposit account vary one month to 5 years and the min balance requirement is Rs.5000/for all following accounts The amount of profit is given to depositors in three ways:  By cash  By sending a bank Draft to depositors Home address or Officers or whichever is specified as mailing Address.

The amount is credited in any one of the checking Accounts of the depositor

102 MR. HASSAN RAZA E12MBA014—ALI E12MBA

HASSAN RAZA E12MBA014—ALI E12MBA .103 MR.

000 5.000 PAYMENT RETURN MATURITY MATURITY MATURITY MATURITY SIX MONTHS SIX MONTHS SIX MONTHS SIX PRODUCT BASE RETURN BALANCE OF DAILY DAILY DAILY DAILY DAILY DAILY DAILY DAILY 5 YEARS 9% 5.5% 6% 7% 8% 5.RATE OF MINIMUM DEPOSIT SCHEMES PLS TERM DEPOSIT 1 MONTH 2 MONTHS 3 MONTHS 6 MONTHS 1 YEAR 2YEARS 3 YEARS 4% 4.5% 5% 5. HASSAN RAZA E12MBA014—ALI E12MBA .000 5.000 5.000 MONTHS 104 MR.000 5.000 5.000 5.

In one month any person can withdraw upto two times through cheque and through ATM at any time . Its code is 025.Its code is 021. HASSAN RAZA E12MBA014—ALI E12MBA . ASDA.Basic Banking Account This account is only for Salaried Persons. there are different types of account holders are required for all these types of account holders. SAVING). OPERATION  The person place a "Check Mark " in the type of account and type of operation required 105 MR. DOCUMENTATION REQUIREMENT For literate person copy of National Identity Card is required as a primary requirement. For illiterate person and Veiled Women.Account is opened just for 1000 rupees. The operation /procedure requirement that is needed for " Individual Account " differ greatly from " Joint account " proprietorship "Partner ship “. along with the copy of National Identity Card requirement he or she must come in person for opening the account. INDIVIDUAL'S ACCOUNT When a single man or women opens an account in his/her own name and has the right to operate it is called individual Account. "Limited Company" And "Club society or Association” as explained below. ACCOUNT OPENING PROCEDURE For the accounts (C/A. Ever Green Account This Account is for those people who want to borrow Agri Loan.

These entire requirements are necessary for future  The person deposits the initial amount for opening account on to the cash counter. nor trustees. HASSAN RAZA E12MBA014—ALI E12MBA . This requirement is needed because in his/her absence bank can have correspondence with the specific person. Person to contact and introducer space is filled in. 106 MR. Husband and wife or two persons of same sex can open joint account. JOINT ACCOUNT When two or more persons. DOCUMENTATION For joint account copy of National Identity Card of all the persons is obtained other things remaining same as in individuals account.S Card mailing address. phone no and affix his/her signature to certify this requirement. open an in their name is called joint Account.  The next day is the opening of account.  The person fills in "next of Kin " position where he/she father. he signed a "Vernacular form" where under take that affixed signature are original and his own signature and two postal size photos are needed.  The person put her /his signature (" or thumb expression) on the signature Specimen Card (SS CARD) similar in the area on the form. telephone no. husband/wife or any other relative's name. neither partners.  If the person put his signature in Urdu or any language other than English. his /her address. a fix his /her either two or four similar signature (or thumb expression in the signature space) and get it introduced and signed by a person who already has an account with the bank and write his account number in the specific rows in a specific space. He/She fills in part-I of the form .  The person put his signature on form -A (check book requisition) on two places in "authorized signature" and fills in the "Title of Account space by writing his name. mother. One the back of S.

S. The partners in the partnership firm are liable for the acts of the firm jointly and severely.  The persons fill in the Part-I and part-II in the form.S.  Signature of both persons is obtained on the form in the area specified for signature and S.OPERATION  The person checks the type of amount and type of operation required in the respective box on the form. Card. opens an account in his firm name. Card and the area specified for signatures on the form. 107 MR. PARTNER SHIP ACCOUNT The account is opened in the firm name and all partner designate one two persons to act on behalf of the partner ship firmer all acts on behalf of firm.Card of proprietor. partners by drawing and enclosed cheques. OPERATION All operation remains the same except that the firm name is written in the "Title of the Account” area and signature of the proprietor are affixed in the S.  In the title of account space names of all the persons are mentioned. this account is called a proprietorship account the proper himself liable for all his acts. an application for opening the account on the firm letter -pad (having the firm name) is required along with the N-I-C. Every partner has in a firm has an implied authority bind his co. HASSAN RAZA E12MBA014—ALI E12MBA . DOCUMENTATION REQUIRED For this kind of account. PROPRIETORSHIP ACCOUNT When an owner of a firm operating singly.  Accounts holder specified in the form that they will operate the form singly or jointly.

N.  Certificate of commencement of business  C-N-I-C 108 MR.  Letter showing the implied Authority of one or more partners to act on behalf of the firm.DOCUMENTATIONS  Copy of C. bank provides many facilities. HASSAN RAZA E12MBA014—ALI E12MBA . In order to facilitate their transaction with outside parties. DOCUMENTATION REQUIRED  Memorandum of Association.  Partner ship deed in case registered partnership firm. address of all partners is written on the pad. LIMITED COMPANY ACCOUNT This account is for limited companies. OPERATION All other requirement remain same except that the form is dully signed by all partners cards are signed by all those partners who will act on behalf of the firm and along filling part-I .  Articles of the Association  Resolution of the Board of Director.I.  Certificate of Incorporation. C of all partners  Application to open the account on the firm letter pad. Part-Iv is also filled. understanding on behalf of the firm to remain liable for all acts of the firm.  In case of non -registered partnership firm.  Name.

A/C Number etc. After completing each and every formality.OPERATION The persons authorized in the Resolution of the Board of Directors put their signatures on S. introducer signature is verified by S.S card are admitted in the same way. The same process of verification and admission of the signatures is repeated on Form-A and next of Kin area.book is made by mentioning the and the total of sum of excise duty and provincial tax.” ISSUING PROCEDURE  Signatures on cheque – book requisition are verified by matching with signatures on SS. Accountant is open in the computer by writing name. LETTER OF THANKS At the start of the letter 2nd day. address. saving Account and ASDA Account. account number.  Cheque – book leaves number. OTHER RESPONSIBILITIES CHECK BOOK ISSUING Check books are issued only for checking account such as current Account.S Cards. After completing each and every formality. account holder’s name are mentioned in the cheque. They are not issued for other fixed and term deposits because of their Long term Accounts “nature. Next of kin "requirement "is not need in case of a Limited Company.S card and is stamped "Verified" customer signatures are admitted by stamping "Admitting" near signature and again signatures on S. ACBL issues letter of thanks to "Account opener" and “Account Introducer “for the trust the have on ACBL. HASSAN RAZA E12MBA014—ALI E12MBA . 109 MR.

in his account. HASSAN RAZA E12MBA014—ALI E12MBA . Then these cheques are sent to clearing official who clears these checks at SBP from other banks. ACCOUNT CLOSING Account is closed on the written request of the customer ACBL debits Rs. RECEIVING INWARD CHEQUES Another responsibility and function of account Opening Department is to receive Inward cheques for collection of other Banks as well as of ACBL.  A/c number is stamped over the leaves of cheque – book and finally authorized person affix his signature over the debit voucher and he voucher is attached from the cheque book and is handed over to the customer. The account holder with draws the amount by writing a cheque and just leaves Rs. PROCEDURE  The customer for individuals account write an application to the manager of the bank an a simple paper about the closing of his account with the bank (In case of 110 MR. 100/. But to surrender the cheque book yet if some leaves are yet to be write to the bank as a necessary requirements for closing the account. The name of A/c holder and date of cheque – book issuance is written on cheque – book requisition the account-opening officer puts his initials on requisition leave.as charges for closing the customer account from that account. 100/.

” ATM.I.  Lastly.  In case of Ltd.I.  After completing this process.proprietor ship partnership and limited company account the application should be written an firm or company letter –head)  The individual or in case of other type.N. and the application. list of card holder is issued and then after 15 days cards are 111 MR. the application package is sent to head office  ACBL head office takes a period of 2-3 weeks for preparing and processing of ATM – cards.  The cheque book is then torn from one side and is attached with the application.   Then he fills the ATM application form in which name of account holder. Company account resolution of the board of directors is also obtained to attach it with the application.N. term deposits Mr. it is written in “Red Ink on the form that account closed” and “Date of account closing. HASSAN RAZA E12MBA014—ALI E12MBA .  The account opening form of the account holder is taken from the accountopening file. Waseem deals this department. A copy of C. cheque book.C is also attached with the application form.CARDS DEPARTMENT This department deals in issuing ATM-Card. first open the account within the blank. ATM CARD ATM – Cards are only issued to Account Holder ISSUING PROCEDURE  The person.proprietor firm and company surrender the cheque book to the bank. Fathers name account number and C.Card number are mentioned. First. and resolution of board of directors in case of limited company account are attached with the form.

 A credit voucher made and the amount is credited to the tax on TD.  The number of the term deposit form and term deposit is noted receipt is then given to the customer.  After completion of the form. the period. the signature etc is all written on the form.  The credit voucher is made for the amount of cash to be deposited. the signature of the customer and the authorized officer.  The number of the term deposit form and term deposit receipt is noted in the term deposit Register. The presence of account is not necessary. The date of opening.  The term deposit Receipt is then given to the customer.  A 0. the stamp of the bank etc. He needs not have an account in the bank.2% tax on the provincial amount is taken while issuing the receipt.  ACBL takes Rs. the name of the customer.   The term deposit form is then filled by the officer.per year as charges for a card TERM DEPOSIT Any person can open a term deposit. PROCEDURE  The customer comes to the bank and specifies the number of days for which he wants to Deposit hid money in term deposit. it is posted in the term deposit file. 112 MR. 200/.send to ACBL’s issuing branch. HASSAN RAZA E12MBA014—ALI E12MBA . The card and list are not sent simultaneously in order to avoid any mishandling. All the requirements are carried out.  The term deposit Receipt is filed according.

The officer checks if the deposit slip is properly filled up containing title of account. CASH PAYMENTS First the cheque is presented by the customer or holder to cash payment officer. This department performs the main function. account number. It is also responsible for the book keeping of these transactions and the safe custody of cash. The cash details are written on the back of the deposit slip and are also entered in cash receiving register. He confirms that it is drawn on the same branch and the particulars of cheque are properly filled in. Detail on both counter file and cash receipt voucher should be the same. 113 MR. as result of transaction in touch local and foreign currencies. amount in words and amount in figures. payee’s name. A/C number.CASH DEPARTMENT Cash department of Bank Alfalah works under the operation department. Cheque is handed over to the officer cash department for scrutiny where officer checks the date. after twice counted and matched with the deposit slips will handover cash to the customer.  Cash receipts  Cash payments Cash Receipts In cash department depositors use deposit slip for depositing the amount into their accounts. one signature of the holder is taken on the back of the cheque. This department is given the complete responsibility of cash. Cash received stamp is affixed on the face of the deposit slip along with the signature of the cash receiving officer. date and amount in words and figures. crossing if any. HASSAN RAZA E12MBA014—ALI E12MBA . Cash receiving officer.

ACCOUNTS DEPARTMENT Accounts department is a department which deals and checks all the activity of all the department . and then cash is paid to the cash detail is written on the back of the cheque. The “End of Day” i. computer print is also received from the computer. Cash paid stamp is affixed on the face of the cheque. CHECKING BANK’S DAILY ACTIVITY Accounts department deals and checks the entire working of the Branch. Cheque is handed over to the cash payment officer for payment. Any abnormality if occurs. Account is debited and then the officer cancels cheque. is immediately dealt with. Shafiq. The vouchers are matched with the entries in the statements.It also deals in expression of finance of the bank. All the vouchers and instruction are checked individually against the computer printouts. Entry is passed in the cash payment register and system. OTHER ACTIVITIES  Preparation of daily bank positions statement  Payment of salaries  Preparation of the statements 114 MR. Naeem Shahzad and the internal auditor Mr. The next day the activity is separated some statements from the “End of Day”.cheque serial number. any material alterations / endorsements and signature of the customer. HASSAN RAZA E12MBA014—ALI E12MBA . Then next day activity separated some statements from the “End of Day”. After checking they are signed by Mr. Salary payment is also one function of the bank. One more signature on that back of the cheque is taken from the holder to match with the first one.e. It is posted in the system and posting stamp and number is affixed on it. The vouchers are sorted out head wise. all the vouchers that have been posted at the computer are scrutinized in accounts department.

It is made by the bank and given to the purchaser against cash or cheque. 115 MR.  Traveler’s Cheque  Telegraphic transfer. which is drawn by one bank upon another bank for a specific sum of money payable on demand. then one banks sends a DD to another bank.Bank case the customer sends his DD to the receiver. DEMAND DRAFT A demand draft is an instrument.  Pay order. he fills in a relevant information and signs it.  Mail transfer. Depreciation calculation REMITTANCES DEPARTMENT Remittance department provides services to the customer of the bank. If two banks are involved. ISSUANCE PROCEDURE  A demand draft application (Annexure--) to given to the customer. The main function of this department is transfer of fund Instruments of bills and remittance department The instruments that are handled in the B & R department are as follows:  Demand Draft.  OBC. HASSAN RAZA E12MBA014—ALI E12MBA .  IBC. But in customer .

and the vouchers are made. postage is charged as per effective schedule of charges. NOTE  On the contra.  It is given to the customer. HASSAN RAZA E12MBA014—ALI E12MBA .  The entry is made in the DD issuing register. 116 MR.  The vouchers and the DD form given for posting at the computer. The Officer in charge then checks the information form.e.  Then the officer of the bills & remittance department signs it and operation manager counter signs it. DD payable is Nil. the test No’s are checked. and the payment is made.  the Branch DD payable computer. a customer comes to us with the DD.e.  The DD advises are printed at the computer and mailed to the respective branch.  The DD credit advice is received through mail. The No’s are checked & signatures are verified. Dr Cr  The DD credit is attached with the vouchers and given for the posting at the  When DD is received.  In case of cash deposit the cashier counts the amounts & signs the DD application and enters it in the register. I. Tax is exempted if he is taxpayer & knows his No. when a DD is received i. And the entry that was made in register is closed. excise duty.  The charges such as commission.  The cash received equals the amount of remittance & the cheques there on.  An entry is made on the DD payable register. the procedure is as follows.  The vouchers are given for posting.

You will receive 0... 798 Million. Total volume handled by the department during the year 2004 is Rs...Traveler’s Cheque The range of our products and value added services enhances with introduction of Rupee Travellers Cheques (RTCs) launched in March 2002. Free Issuance You don't have to pay any service charges for purchasing Askari Travelers Cheques.10% encashment Commission This matchless feature lets you experience yet another innovative customer care solution. HASSAN RAZA E12MBA014—ALI E12MBA . In spite of our constraint on issuing higher denomination of RTCs against restrictions imposed by the Central Bank of Pakistan we have been striving to attain our shares with sizeable portfolio.another Valuable Financial Service Going places? Don't leave home without the convenience of Askari Travellers Cheques in your pocket. safe and ideal for all travel purposes.10. You can buy these either against cash or debit to your personal account. The safe way to carry cash. it's light. Enjoy Added Safety & Security 117 MR. 000/-. Welcome to another valuable financial solution from your trusted bank. Available in the denomination of Rs. Simply visit any of our branches located all over Pakistan and enjoy the privileges of buying Askari Travelers Cheques Earn 0.10% commission whenever the traveler cheque is encased after 30 days of holding.

 The customer fills it & signs it. Tax. Cr  When commission bill is received.T pay able register. HASSAN RAZA E12MBA014—ALI E12MBA . telex as per effective schedule and signs it. all done and printed in UK gives you the comfort of dealing in the most safest substitute for cash.the-art in-built security features you can be rest assured that this is the best way to make and accept payments.T is made on the white slip. PAYMENTS  When a T.  If he fills the tax exemption from then no tax is levied. High security lithography.    Commission Charges Fax charges Cr Cr W. The original faxed to the Branch. ISSUANCE  The request for maintenance through T.  The entry is done in the T.T arrives. one to the Head Office and one is kept as record. the charges such as commission.  The following vouchers are posted.With our state-of-. special thread. tax.T office copy in the file. the test numbers are checked and the signatures are verified. There are 3 copies. TELEGRAPHIC TRANSFER A telegraphic transfer is a fastest & safest way to transfer money. it is attached to the T. ultra violet printing. 118 MR. anti scanner pyramid design and unique micro lines.  The Head & remittance department checks it. The message is fixed.  Then a neat T.  The entry is made in the TT issuing register. easily refundable in case of loss and theft.H.T is taken on the standard printed form.

 The following vouchers are prepared & given for posting. HASSAN RAZA E12MBA014—ALI E12MBA .   Head Office T.  The concerned staff checks the form. It can he purchased by any customer. 119 MR. A single bank is included in this case. Dr Cr Dr Cr  If there is no a/c then the T.T Payable.  The pay order is then handed over to the application after obtaining his signature on the P.  An entry is made in the pay order issued register./C. the bank and the receiver. ISSUANCE  The standard form is given to the customer. Pay order is an instrument in which the parties are involved the purchase.  A cost memo is signed.T receipt is strictly non negotiable.  Charges as per effective schedule are applied. party A.  Then the pay order receipt is filled accordingly. The T. stamped and handed over to the applicant as a receipt. PAYORDER It is a cheque drawn by a bank on itself.O form.T receipt needs revenue stamps and then the payment is made. Bodies.  Counter foil is also filled. he fills in the detail and signs it. It is usually made by govt.  The cash of the pay order is received.  Then the authorized office after checking the pay order signs it.T Pay able T.

He is the issuer as well as the payer. Abdul Jabbar Qureshi.  The P. PAY SLIP It is an instrument used by the bank s for its payment.  It is signed by. Operational Manager Mr. PAYMENT  On representation of the pay two authorized officers of the branch sign order receipt the receipt. According to the b debt. A voucher is also made and posted at the computer Cr bills payable account P.S books is taken out & filled according to the credit voucher.S.  Then the amount is credited to the account of the customer or paid in cash. to the b debt.S. The bills are transferred payments./P. an authorized officer.  The P. In this case only one bank is involved .  The P.O issued. 120 MR.O for issuance and payment is followed for payment is followed for pay slips with the following expectations.O is posted at the computer.O issued register. Procedure prescribed for P.  It is entered in the P.  Pay slips are issued by the bank for the settlements of this own payment.  The pay slips is handed to the customer.O register. ISSUANCE  A credit voucher is sent from the accounts dept.O entry is made in the P.  No excise duty is applicable on P. HASSAN RAZA E12MBA014—ALI E12MBA . The slips are issued to the employees of the banks their bills & invoices.  A voucher made and posted payment.

if it is transferred in the P.e. which are sent to their cities banks for the local clearing in that city.  On clearance the respective banks send back the OBCS along with IBCA. the OBC forwarding schedule in sent to that Askari Branch.  On receiving the P.  Dr. 121 MR. Bills payable P. register. Inter branch credit advice.  Two authorized officers sign the schedule.  Vouchers of following entries are made. is posted at the computer.  They are entered in the OBC register.  The OBC forwarding schedules are prepared for the different branches.  The respective cheques are attached with the schedule. issued.O.S.S. the number is written on the stamps.S. are called outward bills for collection.S. PROCEDURE  The cheques that are banks in other cities are separated.  The OBC no are checked for the OBC register and the received any entry is made. HASSAN RAZA E12MBA014—ALI E12MBA .  The office copy is filled and the original schedule is mailed.  Charges i. is received on the counter.  If Askari branch is in that city. clearing or transfer. OUTWARD BILLS FOR COLLECTION The bills. commission charges and postages charges are deducted from the A/C.  The payment is made and the P. The P. Otherwise it is addressed to the particular Branch to whom the cheque belongs.

 At the end of the day two contra vouchers are made & posted. an IBCA is prepared and mailed to the branch.  The cheques are lodged for clearing.  The cheques are entered in the IBC register.   OBC collection OBC lodged OBC collection OBC lodged Dr Cr Dr Cr INWARD BILLS FOR COLLECTION The bills are received from other banks out of city for the local clearing are called inward bill for collection. So an OBC forwarding schedule is received by mail. HASSAN RAZA E12MBA014—ALI E12MBA . Cr Dr Cr 122 MR.  After realization. The IBC numbers are allotted to them. Party A/C Commission Charges Postage charges Dr Cr Cr  At the end of the day the contra vouchers are. PROCEDURE  The OBC of the other branches will be the IBC’s of this branch. IBC collection IBC logged IBC Collection IBC lodged Dr.

123 MR.O.  Bills payable.  IBC lodged. If the payables are not cleared for a lot of days. issued.  DD payable  IBC collection. The heads and checked are as follows.S.  OBC Collection.  Bills payable P.  TT payable. P. HASSAN RAZA E12MBA014—ALI E12MBA . a reminder is sent to the respective branches. issued.  OBC lodged.OTHER FUNCTIONS BALANCING THE REGISTER At the end of the day. all the registers are balanced with the computer balances.  MT payable.

1) 2) Inward clearing Outward clearing Inward Clearing When cheque drafts. Counter folio of paying slip is handed over to the customer by putting stamp for cheque received for collection for Bank Alfalah on it duly signed by officer. etc. All the cheques are received on one counter along with the paying slips duly filled in properly containing particulars of cheque and account holder. Cheques of each bank are sorted and arranged branch wise. All the cheques are then 124 MR. This facility is provided by the state bank of Pakistan for offsetting of cross obligations between the different banks. Clearing is of two types. Clearing officer checks and verifies title of all the cheques deposited by the customer to confirm the good title of the cheques. HASSAN RAZA E12MBA014—ALI E12MBA . These are then entered in clearing register and cheques for collecting are entered in OBC register and handed over the bills department of collection. which the account holder deposit in their accounts is. of our branch presented to us for clearing by the SBP. Cheques are scrutinized properly and paying slips are separated from cheques. Outward Clearing The cheque of other banks. CLEARING PROCESS (INWARD/OUTWARD) Here the local cheques are received that are drawn on BAL. Cheque to be honoured by bank. sends For collection. Special crossing. These cheques are scrutinized and cheques for local clearing are separated from OBCs. endorsement and clearing stamps are affixed on the cheques.CLEARING DEPARTMENT “The process by which cheque exchanged between the collecting and paying bank and the ensuing financial settlement is called “clearing”.

entered into the clearing system of bank. Print out of the clearing is taken and details are attached. With the cheques of each bank. Details of these banks are then entered into the clearing schedule containing number of cheques presented and their total amount against the name of each bank. Then total number of cheques presented to all banks and their total amount is written on the foot of that schedule, which is tallied with the clearing register. Next morning, these cheques are delivered to the respective banks in clearing house of SBP between 9:00 to 9:30 AM. In the same manner, other banks present their clearing drawn on Bank Alfalah. Total number of cheques and their amount delivered to other banks are received from them are written on the clearing house schedule and handed over to the officer clearing house SBP. Cheques / DD received in clearing are given to the officer cash department of the branch for their repayment. After I proper scrutiny of cheques, verification of signatures and confirmation of balance in the account, officer cash department pays these cheque by canceling and posting them in the system. If any cheque is not passed due to insufficient balance or any other reason, officer cash department returns the same cheque by attaching a cheque return memo containing reason for return. This cheque is entered into the cheque returned register and bank charges are deducted according to the schedule of charges. Second clearing is called at 2:30 PM to check the fate of the cheques presented to other banks in the morning. If any cheque is to return, that is delivered to the same bank in second clearing. In the same manner, if any cheque presented by Bank Alfalah in first clearing is returned, they receive it and once again give schedule of clearing figure to the officer-clearing house SBP containing number of cheques and their amount delivered and received unpaid.

125 MR. HASSAN RAZA E12MBA014—ALI E12MBA

FOREIGN TRADE DEPTARTMENT
Nature has distributed its wealth un-evenly. Some countries are rich in human resources other have mineral wealth in abundance and yet other have arable land and favorable climate conditions for agricultural production. This un-even distribution of resources basically determines the productive efficiencies of different countries. This is the point where different countries come together to exchange their competencies and efficiencies. The countries, which lack in any of the resource, start importing those resources from the country that is having excess of it. In this way the trade starts between different countries.

Benefits of Foreign Trade:
Following are the main benefits of foreign trade.  It enables the country to use its resources most profitably and efficiently.  A wide scope is available for a country for its surplus production.

126 MR. HASSAN RAZA E12MBA014—ALI E12MBA

 International competition compels countries to produce quality products at competitive costs.  A country can earn foreign exchange by selling its products in the international market.

Trade Finance Services of ACBL.
With its presence in most export-oriented cities in the country, the volume of trade finance business ACBL is one of the highest in Pakistan. That is why most of the companies prefer banking with us. To support the growth of our business partners' ventures, we offer them a wide range of services:  Documentary Collection  Import Letter of Credit  Export Letter of Credit  Guarantees  Bill Discounting Pre-shipment and Post-shipment Financing. Foreign Exchange Department works like the general bank departments with the difference that it deals in foreign currency. This department deals with the following: Import  Export  Foreign Currency Accounts  Foreign Remittance  Submission of Monthly Reports to SBP

IMPORT
The international trade transaction, in which one country buys goods from other country, is called import. 127 MR. HASSAN RAZA E12MBA014—ALI E12MBA

the importer has to submit applications to the licensing authority. The importers can only get their merchandize cleared from the custom authorities if they have the import license duly issued in their names. But this function has been shifted to Export Promotion Bureau. Letter of credit: Foreign trade payment problems are mainly solved by a letter of credit. When they reach to an agreement on all terms of sale. Contract of sale: After getting the license. Thus contract includes all information of terms and condition of sale. Foreign Exchange Departments of all banks are restricted to word under the rules and regulations of government. the importer then negotiates with the exporter. 128 MR. A letter of credit is issued by the importer’s bank. provided drafts do not exceed a specified amount. Import License and Registration: The individuals and firms who desire to import goods from the foreign countries are required to obtain import license. they sign a contract. If guarantees payment to the exporter up to specified amount of money provided the terms and conditions laid down the L/C are fulfilled.The import trade in Pakistan is governed by import and export Act of 1950. the regulating body of imports was controller of Import and Export. To acquire import license. A letter of credit is a commitment on the part of buyer’s bank to pay or accept draft drawn upon it. The import licenses issued by the Import Trade Controller are required to be registered with the State Bank of Pakistan. Previously. Import licenses are a type of artificial restraint on the import trade of a country. HASSAN RAZA E12MBA014—ALI E12MBA .

 Issuing bank: The bank which issues or opens a letter of credit at the request of importer is called issuing bank. which deals in foreign trade transactions to issue a letter of credit in favour of the exporter. is called negotiating bank or paying bank. brief description of goods. documents to be presented. HASSAN RAZA E12MBA014—ALI E12MBA .  Negotiating bank: The paying bank in the exporter’s country.  Exporter or seller: The seller or the party in whose favour L/C is drawn is the exporter. port of unloading. The information.A letter of credit thus is a  Written undertaking by an importer’s bank to exporter’s bank. on which the draft is drawn. Parties to a letter of credit: There are four parties involved in letter of credit.  That it will pay or accept draft drawn upon it up to a stated amount with a specified time. He is also called beneficiary. 129 MR.  The payment will only be made to the exporter if he compliers with the terms of credit. port of shipment. He will prepare an application on the prescribed form available from the bank. which are supplied in the application are based on the contract of sale and include only the important feature of contract. import license etc. Opening of letter of credit: The main steps involved in the opening of the letter of creditor as follows: Application for letter of credit: The importer will request his own bank or any other bank.  Account party: The buyer or the importer on whose account and request the letter of credit is opened is known as account party or opener. such as value of merchandise.

the issuing bank will examine them. The L/C may be sent directly to the exporter or the advising bank in the exporter’s country. these will be sent to the importers bank for payment. Shipment of goods: When the exporter receives L/C. The proper margin of cash or securities to be deposited is decided by the bank depending upon the credit worthiness of the importer. market demand of goods. Issuance of the letter of credit: The importer bank after being fully satisfied will issue a letter of credit in favor of the exporter. collateral offered to cover the credit etc Cash margin: The bank asks the importer to deposit cash or securities with the bank. Liability of the issuing bank: On receipt of documents and the bill. the advising bank will inform the exporter about opening a letter of credit. HASSAN RAZA E12MBA014—ALI E12MBA . he examines it to ensure that it conforms to the terms of contract of sales. In such a case. He then shifts the goods and presents all required documents along with the bill to negotiating bank. the payment would be released by the bank. the amount available covers the letter of credit applied for. 130 MR. the bank will scrutinize whether the importer is of good financial standing.Scrutiny of application: Before issuing a letter of credit. possesses the import license issued by import control. If the documents on the face appear to be in order. Authorities. Role of negotiating bank: The negotiating bank after receiving all the documents and the bill from the exporter will scrutinize them whether these conform to the terms of letter of credit. If the documents of title accompanying the bill are in order.

it gives different incentives to the businessmen for enhancing the exports and reducing the Balance of payment deficit. In case of a time draft.  He must all in to sale contract with the importer.In case any defect is found in the documents and the draft is honored by the issuing bank the importer can claim damages on the issuing bank. This department is responsible for the export procedures and Documentation. The issuing bank is only accountable for the completeness of documents. HASSAN RAZA E12MBA014—ALI E12MBA . The accepting bank will then release all the shipping documents to the importer. It restricts the export of some goods and reinforces export of other. This department handles export documents complying with rules and regulations prescribed by the State Bank of Pakistan. Payment to the exporter: The exporter can obtain payment from the negotiating bank by discounting the draft (L/C) immediately after shipping the goods and obtaining shipping documents. In case of sight draft. the importer discharges his obligations to the accepting bank on or before the maturity date of acceptance. These rules and regulations are briefly described as under. The controlling body of export in Pakistan is Export Promotion Bureau. Payment by importer to the bank: First the importer pays all his obligations the bank then bank releases the documents. EXPORT SECTION The international trade transaction in which one country sells its goods to other country is called Export. 131 MR. not to see whether goods conform to the contract of sale. he can do all that with the help of export section of the bank. Export section is another section of Trade Services Department. the importer’s bank pays the amount on the same day charging the importing customer’s account. If any person wants to sell his or her products in the foreign countries.

 He must have registered himself with CCI&E.  He must have income tax certificate that would be only for export purpose. and weight. which are sent to the importers bank. has restrictions for foreign trade. Bank Covering Letter This covering letter is very important letter with the export documents. It contains the amount. It contains all the 132 MR.  He is not allowed to export to those countries for which Govt. rate. Documents Required For Exports Normally following documents are required by the importer that the exporter must submit to the negotiating bank with the shipment documents.  Full value of goods exported from Pakistan must be declared to custom authorities. 2. sending and receiving parties’ names. description.  He must have export license from EPB. Invoices: The invoice form is needed along with the export documents which are sent to the importers bank. The exporter’s bank provides this letter. 1. He must be having account with the bank. In the invoice form different information is provided regarding the goods to be shipped. HASSAN RAZA E12MBA014—ALI E12MBA .

5. tenor. 3. 9. Shipping Documents The shipping document includes the buyers and buyer’s bank addresses. which contains the information about the packing of goods being exported. Letter of Credit The letter of credit issued by the importer’s bank is also sent to the importer’s bank after the review and acceptance. 4. Insurance The insurance of the goods sent for exports should also be maintained and attached with the other documents. Export Form 133 MR. This is also very important to attach with. shipping source and destination. It means that the goods have been shipped and that goods are in the custody of the master of the ship. 7. date.information about parties’ names and addresses. goods. Packing List The packing list is also attached with the documents of export. 8. 6. tenor. amount. HASSAN RAZA E12MBA014—ALI E12MBA . In the bill of lading all Information regarding the goods shipped is give. amount. Bill of Lading The shipping company issues bill of lading. enclosures and terms & conditions. Bill of Exchange The bill of exchange is the negotiable instrument for the payments. It also indicates that payment has been paid.

It is issued by the exporter’s bank. normally within 30. which contains the information about goods. 90. Exporter should bring other documents like certificates of Origin. consignee. tenor. Form-E should be filled correctly and then bank authenticates the E-Form. Two types of rates are used in evaluating the amount:” OD Buying rate/At sight rate: It is the rate of export bill. Exporter goes to the custom authorities for custom clearance. Usance rate: It is the rate payment of which is to be made at a future date. commercial invoice. 120. Foreign bill purchased (FBP): Following requirements must be fulfilled before the purchase of Foreign Export Bills. HASSAN RAZA E12MBA014—ALI E12MBA . After fulfilling these requirements. 60. bank purchases the export bill and makes payment for the value of goods in Pak Rupee to the Exporter. quality. invoices. consignor and mode of shipment. Shipping Company issues Bill of Lading or Airway Bill. payment of which is to be received within 12 days from the date of lodgement. or 180 days. packing list etc. Exporter should be account holder of the bank.This is just like the import form. port. Bank issues the Form-E. Lodgement: “Lodgement means making the payment to exporter by bank against the purchase of bill. 134 MR. 150. Bank scrutinizes the documents.

where its own branches are not established. there are also other activities performed in Foreign Exchange Department. Funds are transferred abroad by Foreign Telegraphic Transfer Swift MT-100 is used for this transfer. Its agency arrangements with City Bank. no income tax deductions. Japanese Yen and Euro with nominated branches. these incentives reinforce and motivate the people to invest in foreign currency accounts rather to keep foreign currency idle. In accordance with instructions of SBP. and Euro. no wealth tax deduction will be there. Pond.Realization: Realization means receiving the payment from the foreign bank for the export of goods. Askari Commercial Bank has its agency arrangements in those countries. For opening of account a Form is provided to the person/party. Procedure of opening foreign currency accounts is same as other accounts. Standard Chartered Bank. Foreign currency accounts: A depositor can open account in US Dollar. Pond. Reporting of Form-E: 135 MR. 2. No Zakat is deducted on these accounts. Other activities: In addition to Export and Import. 1. HASSAN RAZA E12MBA014—ALI E12MBA . American Express. Japanese Yen. introduction of the new account holder or by the Officer of the Bank. foreign currency accounts are opened in these currencies: US Dollar. ABN Amro. Foreign remittance: Bank also operates in Foreign Currency accounts. Submission of monthly returns: It includes reporting of Form-M and Form-E to SBP.

Form-E is reported to SBP at the end of the month. Four copies of Form-E are maintained. of country and commodity.  Finance against Packing Credit (FAPC). Reporting of Form-M: Every foreign bank deducts some charges form the value of goods. The interest rates are always changing in this facility. 136 MR.  Finance against Foreign Bills (FAFB). just to boost the exports in the country. Serial No. currency. There is a prescribed Performa used for the reporting of Form-E. REFINANCING SECTION Refinancing is the credit facility for the exporters provided by the Govt. Refinancing is further divided into two parts. It includes the reporting period. Code No. Form-M is reported. It was started in early 70’s. For banks this is free source of income because in this way fund of banks are not used. at lower rate of interest. amount. It is for miscellaneous purposes like foreign bank charges or foreign agent commission. of Form-E. in which the amount is realized. Form-M is used to declare this outflow of foreign currency. which is certified by authorized dealer. This declaration is submitted on prescribed Form-E in quadruplicate. The state bank of Pakistan charges 8% and then bank will charge 10% from the customers. It includes the list of Serial No. amount and purposes of every Form-M.Every Exporter is required to submit a declaration of custom authorities for goods exported. At the end of the month of realization of the amount. HASSAN RAZA E12MBA014—ALI E12MBA .

HASSAN RAZA E12MBA014—ALI E12MBA . Skilled professionals deliver contemporary corporate banking services in a personal manner. It performs following functions. CREDIT DEPARTMENT Credit department is also one of the most important departments of the bank. It involves the bank risk line because of the transactions between the banks. Askari Commercial Bank combines personalized services with technological capabilities to deliver sophisticated banking solutions. FAPC Loan This loan is on the basis of export contract. Products & Services of Credit Dept Our Credit and Marketing Department aims at providing complete financial solutions for its customers. 2. Products and Services offered include:  Trade finance 137 MR. It is called the mind of the bank. The credit department of Emirates Bank International also performs the functions relating to the credit administration and credit accounts. If approved.C. The shipment amount should be equal to the loan amount.1. This loan is given against security and this is called post-shipment loan. the amount is credited in the account of the party. This is also called pre-shipment loan. Committed to maintaining stable and long term relationships with our customers. FAFB Loan This loan is under L. This department controls the affairs of bank related with the finances or loans. It is approved within 48 hours or otherwise disapproved.

the banks earn the profits in term of interest and mark-up. In the words of the manager of a branch of Askari Commercial Bank. HASSAN RAZA E12MBA014—ALI E12MBA . The most easy way to make fund available to seek assistance by such agencies including banks which have got surplus funds and will come to the assistance of producing units.” So banks do not throw the money away but every application is tested carefully before being sanctioned. He has to float his shares to the public or knock the doors of financial institutions. OBJECTIVES OF LENDING In the modern economics. Short Term Working Capital Finance  Local Currency Syndication Finance (Foreign Currency Syndication can also be arranged)  Medium Term /Long Term Finance  Term Finance Certificates  Offshore Loans  Advisory Role (Balance Sheet Restructuring). Following are the main points. Actually it very difficult for the modern businessman to run his business on a huge scale solely. distributing units and exchanging units. which are considered before lending. It is the policy of Askari Bank to provide a outline to all of its branches and on the basis on those requirements the bank select the borrower. 138 MR. In this way of lending. more than 90% business concern raises their funds from various financial institutions to meet their multifold transaction. for example the banks. Selection of Borrowers The selection of a reasonable and trustworthy borrower is complicated and at the same time very sensitive task which requires decision-making power from the bank employees. “Good selection of borrowers does the half task in the profit of the Bank.

HASSAN RAZA E12MBA014—ALI E12MBA . Character The bank inquires the character of the borrower in every aspect. 4. Cash Flows The source of repayment should be ascertained at the beginning. 5. 3. 2. Because this is the right way to judge his dealing and business tactics. accounting and technical skills and the degree of experience in the particular line of business for which the finance is required. For this purpose the financial worth of the customer is checked that either he is able to repay the loan by the sale of his inventory or from realization of the accounts receivables. As we have discussed that this is one of the most critical decisions for the credit management to sanction the loan that’s why they require any collateral by the customer for the security of 139 MR. This is checked that both the amount of loan required by the person is equal to his resources available in his business and will he be able to cover them out of his resources. they give him the facility of credit. turnover ratios. Capacity This factor is related with the ability of the borrower to manage his business successfully.1. So this is checked that either they have necessary management. Capital The proportions of the borrower’s own resources to the account of finance requested are the next point to receive the branch manager’s attention. When the bank get sure that this person has good relationship with us and in the business market. and collection of receivables and management of accounts payables. This ability of the customer can be judge from the trading results. Collaterals Security is to be correctly looked upon as the second source of repayment. then the loan is sanctioned.

 Unsecured or Clean Advances. is that for what purpose the loan is being sanctioned. Unsecured or Clean Advances 140 MR. HASSAN RAZA E12MBA014—ALI E12MBA .the loan. normally these are less than or equal to one year. Normally the short-term loans are preferred to be sanctioned because of the lesser risks available. CLASSIFICATION OF ADVANCES The loans and advances given by the bank are classified into two parts.  Secured Advances. If the customer wants to get the loan for business purpose then he is given the preference over when he wants to get loan for personal use. which is taken into the consideration by the bank. 1. In case the borrower is unable to pay his debts then the amount can be recovered by selling the collaterals. Purpose Another important factor. It only sanction the loans for short term period not for the long term period. ACBL Bank has its own policy of lending. 6. 7. Period It is the policy of every lender that first the period of the loan is decided.

 Stocks. This is the policy of every financial institution to provide the secured loans to the customers. If the party is unable to repay the loan then it becomes very difficult for the bank to collect the loan. That’s why the bank uses this policy just to give this type of loan only to the exceptional customers. Secured Advances The word security means any thing given to protect the repayment of an advance. HASSAN RAZA E12MBA014—ALI E12MBA . 141 MR. The policy of Askari Commercial Bank is to avoid such clean advances because of the unsecured nature.  Agricultural Advances. TYPES OF ADVANCES ACBL normally classify the advances into the following three major types.  Share certificates  NIT Units.An unsecured advance is made against the personal reputation of the borrower with the bank. So secured loans are those.  Security of Cash in his Account.  Industrial Advances. which are backed by the tangible security. Normally these advances are given to the regular customers of the bank and have maintained a good dealing with the bank for many years. A tangible is that which has a physical existence for example  Land and Building.  Commercial Advances. 2.

 Fish Form  Dairy Form. Development Finance This loan is provided for the development of agricultural land like purchase of tractors. 3. Non Farm Credit Following is the different type of small agriculture industry for which this loan is granted. Agricultural Advances Farm Credit Agricultural advances are available for each of the following spouse. These credits are provided for purchase of inputs development of agricultural land. Industrial Advances 142 MR. 4.  Sericulture 2. fertilizers and pesticides. 2. Production Finance This loan is provided to farmers for purchase of inputs like seeds. HASSAN RAZA E12MBA014—ALI E12MBA . Such loans or advances are not of large amounts but of small amounts. The basic purpose of these is to boost up the small agricultural industry to provide the opportunities of earning in agricultural sector. Following are two main classes of farm credit. for tube well and for watercourse improvements etc. Commercial Advances These are the advances which are given to the small business men.  Live Stock.1. 3.  Forestry. who want to start the business on a small scale.

The industrialists who are running their businesses on a large scale can get the facility of these advances. He also prepares all the related reporting and then sends it to the head office.These advances are sanctioned to the industrial persons. He told me that the bank is authorized to issue the credit card of two companies. He prepares the documentations relating to the advances of the account holders and makes the further processing. there are certain fee charges to by the bank. These advances are in large amounts required for the import and exports of the goods and services.  Master Card  Visa Card ISSUING CHARGES When the card is given to cardholder. Credit Administration When some one wants to obtain the loan and his loan is approved. CREDIT CARD DEPARTMENT Miss Ayesha Imtiaz deals this department. These advances are given on the credibility of the parties. which are under bank of America. which is different for different cards. the work of credit administrator starts. HASSAN RAZA E12MBA014—ALI E12MBA . After that the officers maintain the credit accounts and ledgers of the customers. The filing of all the legal cases is also maintained by the credit administration. . ISSUING PROCEDURE 143 MR. He also maintains the documents. which are required by the state bank of Pakistan.

the bank avoids issuing credit card to that person. so.  Professional (Govt & private officers)  Business man  Landlord. and the bank doesn’t know anything about him. BUSINESS MAN In the case of businessman bank need  Balance sheet of businessman.  Type of business. And then when it is sured that the business has the ability to cover the expenses of credit card and to pay it at any time. For this bank need an account having the amount over and above the credit card limit of that credit card. 144 MR. the bank issues the credit card.  Turnover of 5 years. there is more chance of default in this case. Land Lord In the case. Usually. HASSAN RAZA E12MBA014—ALI E12MBA . This letter shows all particulars about the person. PROFESSIONALS For professionals bank require  Authorized letter from the concerned organization in which he works. on the basis of these particulars.Credit card is issued to three types of parties. bank open on account and some feasible amount is required. the person is totally new.

100 are the additional charges charged to the next month payment apart form the 2% interest. 5% is the minimum limit that the bank requires and that should be paid monthly.PAYMENT PROCEDURE The cardholder should have to pay all the amounts what he has consumed. If you paid only 5% then 2% interests will be charged on remaining amount and it is added into the next month payments. LEARNING AS A STUDENT INTERN There are following learning points for me in the bank. But in order to facilitate the cardholder. HASSAN RAZA E12MBA014—ALI E12MBA . If that 5% is not paid then Rs. First week 145 MR.

HASSAN RAZA E12MBA014—ALI E12MBA . What are the necessary requirements of different accounts to be opened? Other activities are  How to fill the deposit Slip if anyone wants to transfer cash in the account or online transfer  How to fill the different accounts Form  How to fill the voucher for issuing of the Cheque Book for the first time  How to fill the requisition slip for the second time issuance  How to issue the Cheque Book  How to enter it in the register  What are the procedures for the ATM card Accomplishments I m fully trained in this job how to open the different accounts . He told me different accounts names and their codes.000 are required.000 and for saving 5.Duties In my first week in Askari Commercial Bank commercial bank.Mr Bilal Mehmood trained me very nicely and I learned lot of things in this department.  New Computerized national identity card is must for opening of new account. How to open the account.  For current account 10.how to issue the cheque book and enter it in the register and how to transfer the amount through cash or cheque to an account and how to issue a Debit Card. they assigned me work in Account Opening Department. 146 MR.

Second Week In the Second Week they assigned me work in Clearing Department . Same as entered cheque number account holder name amount and Bank name. 1. Secondly in this week I prepared (O/W) clearing for next day. HASSAN RAZA E12MBA014—ALI E12MBA . Third Week Duties In third week I perform following tasks relating to the banking system. O/W clearing register. I/W (Inward clearing) 2. O/W (Outward clearing) In this week I entered the cheques lodged for inward clearing in clearing register as their cheque number account holder name cheque amount and bank name amount to be paid. 1. Duties There are two types of clearing. Accomplishments I am full trained now in this particular job. IBC (Inter bills clearing) 2. How to fill cheque return slip? How to enter in I/W.Mr Jibran trained me very nicely and I learned lot of things in this department. In this week I also entered cheque return in cheque return register and put cheque return slip on cheque. OBC 147 MR.

HASSAN RAZA E12MBA014—ALI E12MBA . 148 MR. filling of OBC slip as cheque number their amount OBC number and branch name. IBC mean cheques lodged for clearing From other city. Duties Demand draft is for payment outside of city and pay order for local payment.e. Accomplishments In this week I repeatedly performed this job and now I am fully trained in this job. Accomplishments In this week I repeatedly perform the jobs and I am fully trained in such type of operations i. I entered these cheques in IBC register if it is ACBL cheque then Mr. There are no charges for Pay order while other banks charge for this service so it is an advantage going to ACBL bank to attract customers. Fourth Week In Fourth week they assign me work for Remittances Demand draft and Pay order preparation. Pay order and mark the Charges if Customer is not account holder of the Bank then 255 Rs commission of the Bank. to make the DD. Fifth Week Duties In this week I worked in Accounts and Cash Department. It is a secure source of payment. Jibran cleared or return this cheque and if it is cheque of other bank then it is again entered in O/W clearing registered and lodged next day for clearing.In this week I worked for IBC (Inter bills clearing). Secondly in this week I prepared OBC. In fifth week they assign me work in cash department.

Ateeq. There problems are also called as an internal problems. In Accounts Department how to sort the Vouchers and preparation of Salaries Accomplishments I am fully trained in this job i. there are following problems I have found which are directly affect on efficiency and performance of the bank. So these are discussing below 149 MR.e. to check that all the vouchers are scrutinized and matched with the activity Sixth Week Duties In Sixth Week I worked in Foreign Exchange and in Credit Department. They told me brief introduction about import and Export.What Documents are required for Import and Export Secondly in this week I learned about Advances from credit manager Mr.In cash department I learned about Receipts and Payments and about how to receipt cash and how to enter it in computer. What are requirements for loan? It is a procedure that takes many days Accomplishments: I in this week I m fully Trained in these jobs Problems faced by branch During my internship at this particular branch of ACBL. HASSAN RAZA E12MBA014—ALI E12MBA . Necessary Requirement about the Letter of Credit .

Sometimes he has done wrongly postings. HASSAN RAZA E12MBA014—ALI E12MBA . 4. During my internship no body was satisfied from his performance.They are talk against each other in front of me.1. but he does not give clear solution to that problems. Where he assign the result is zero. then he asked to other. some executive are very efficient in computing skills but some are not totally aware from this system. 3. 2. They are shows the facial expressions against each other. Low Efficiency of employees Efficiency of employees is also low at this branch. When operation manager is on leave branch faces problems about ATM machine. Lack of computing skills: Computing skills are also low. 150 MR. so there must be avoid to misuse the resources but in this branch it is reverse case. Naeem Shehzad manager. employees does not take care of resources and not used them in right direction. they are not very effective in communication between themselves. Lack of communication among the employees During the period of my internship I found this problem as a biggest problem that. For example Mr. there is very wrong use of the resources. For example every person misuse telephone service even guards they use it for personal matters. They do not share the experience with each other and do not care the other employee. Assad Bhutta manager has 3 years experience at ACBL but he is not professional. If one employee has a problem. So finally it is very needy for a public services organization to keep atmosphere friendly among the management and employees. For example ATM machine at this branch is only handled to Mr. Misuse of resources Resource are very needy.

CONCLUSION I observed the Askari Commercial bank a financially sound bank. Revenues from these activities have started yielding dividends and they expect significant growth. which learn from the changing environment and competition. A Sheikh has made significant progress in building and strengthening both the corporate and retail banking sectors in Pakistan. Online banking have been started and the introduction of ATM at strategic locations have been firmed up. They say that they will continue to invest in the modern tools and substantial allocation to resources will be made to achieve this objective during the current year. Its profits are increasingly year-by-year. Its staff is very good and sincere with the bank. customized. They are aware that they have stepped into the 21st century and they must meet its challenges by acquiring the highest level of the technology. Although ACBL Lahore Branch is one of the good branches in Lahore but there are few points that should be improved for more perfection. 151 MR. services and their execution are they key ingredients for their future growth. They will thus be accelerating their technological advance to enable them to distribute their products and services through most efficient and high tech means. The people at bank realize that innovation. So it is necessary for them to keep them update with the changing environment. Askari Commercial Bank views specialization and service excellence as the cornerstone of its strategy. RECOMMENDATIONS This is the fact that in this universe nothing is perfect. creativity. reliability. In every field of life there are some pluses and minuses. HASSAN RAZA E12MBA014—ALI E12MBA . But the best institutions are those.

its building is not as per the requirements of the branch. are not reflected in the statement of account of the Customers.  Under no circumstances cheque book should be given to the customer if the account formalities are incomplete  Cheques. This can become so. this thing is not properly done and this is the major reason for the default of many clients. rather there should be an audit department in the branches to make audit on daily basis. So the building should be further expanded and there should be more space for the sitting arrangements of the customers. This cheque must be reflected in the accounts so that credibility of the customers may be assessed. the persons should be properly trained in the computer systems. helpful as a different banks are having this department of their own  . which are drawn on Askari Commercial Bank Branch and returned unpaid in clearing. As we have discussed that this is one of the busy branches in Lahore market.   As every thing is computerized in ACBL Lahore. Because customers feel upset when most of the times the machine is out of order.. HASSAN RAZA E12MBA014—ALI E12MBA . When giving the loan. the Bank must carefully analyze the past six month’s transaction history of the borrower. because the building under operation is in adequate for such a large staff.. Marketing department is very active but the feedback or the follow up of the customers should be improved. In most cases.  The ATM service should be provided 24 hours. Credit dept.  Audit should be held internally. 152 MR. This will help in the judgment of the dealing behavior and financial status of the client.  The staff should be decreased in Foreign exchange Dept.

 The Bank should try to give more loans to the small borrowers as the past history shows that most of the loans given to the corporate borrowers have converted into bad debts  Evening banking should also be started in this branch.com/default.com 153 MR.asp  Dawn. References: Web Sites:  Askaricards. HASSAN RAZA E12MBA014—ALI E12MBA .com  Pakistaneconomist.

pk/index.com  http : / /www.org/w/index.org. 154 MR.asp  En.php  www.net.org. Gibson)  HR & Personnel Management (Werther)  Annual report of askari bank ltd.com.askar ibank.wikipedia.com/index.pk  scribd.pk/Reports /Askar i %20Financia l s%202008. HASSAN RAZA E12MBA014—ALI E12MBA .pdf Books  Financial Statement Analysis (Charles H.sbp.php  www. Sbp.askaribank.

Annexure       Account opening form Deposit slips OBC Bundle cover Brochures Vouchers 155 MR. HASSAN RAZA E12MBA014—ALI E12MBA .