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Internship report Submitted To Sir Faisal iqbal Department Faculty of Management and Administrative sciences MBA (3.5
Internship report Submitted To Sir Faisal iqbal Department Faculty of Management and Administrative sciences MBA (3.5

Internship report

Submitted To

Sir Faisal iqbal

Department

Faculty of Management and Administrative sciences

MBA (3.5 year)

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Chapter no.1 Introduction Internship is the academic requirement for completing MBA (3.5) degree. Students are required
Chapter no.1 Introduction
Chapter no.1
Introduction

Internship is the academic requirement for completing MBA (3.5) degree. Students are required to undergo six weeks of internship with a well recognized organization. Main purpose of internship is to serve as the way of enabling the students to get practical knowledge about banking administration.

  • 1.1. Purpose of the Study

Main purpose is to get relevant information to complete internship report on Askari commercial bank.

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  • 1.2. Objectives of the Study

1.2. Objectives of the Study Main objective of this report is to thoroughly discuss the working

Main objective of this report is to thoroughly discuss the working of Bank.

  • 1.3. Limitation of the Study

Something is better than nothing. No matter how professionally a study is conducted, it cannot be perfect in all aspects. The report may not include broad explanations of facts and figures due to its nature.

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OVERVIEW OF THE ORGANIZATION Chapter no. 2 ACCORDING TO BANKING COMPANIES ORDINANCE 1962 “Banking means the

OVERVIEW OF THE ORGANIZATION

Chapter no. 2

ACCORDING TO BANKING COMPANIES ORDINANCE 1962

“Banking means the accepting, for the purpose of lending, or investment, of deposits of money from the public, repayable on demand or otherwise, and withdraw able by cheque, draft, order or otherwise.”

“Banking companies mean companies which perform the business of banking in Pakistan.”

COMMERCIAL BANK

“The commercial bank receives surplus money from the public and lend to others who needs funds. Bank collects cheque, bills of exchange etc from customers. It transfers money from one place to another. It provides agency and general utility services. Purpose of commercial bank is to earn profit.” Askari Bank has stretched into a network of 200 branches /sub branches, including 20 devoted Islamic banking branches. The Bank is listed on Karachi, Lahore and Islamabad Stock Exchanges. A shared network of 2,991 online ATMs layers all major cities in Pakistan chains the delivery channels for customer service. As at December 31, 2008, the Bank had equity of Rs. 12.97 billion and total assets of Rs. 206.19 billion, with 816,629 banking customers, serviced by our 6,808 employees. Askari Investment Management Limited and Askari Securities Limited are subsidiaries of Askari Bank occupied in managing shared funds and shares brokerage, respectively. Askari Bank is the only bank with its equipped head office in Rawalpindi, which have comparatively limited opportunities as compared to Karachi and Lahore. This created its own challenges and opportunities, and forced as to evolve an

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outward-looking strategy in terms of Askari market emphasis. As a result, Askari residential a geographically diversify

outward-looking strategy in terms of Askari market emphasis. As a result, Askari residential a geographically diversify assets base instead of a concentration and heavy dependence on business in the major commercial centers of Karachi and Lahore, where most other banks have their operational Head offices.

The branch of Askari Bank was opened in Gujrat in June, 2002. Gujrat is a famous from fan and furniture industries, so to get the export market of these industries ACBL opened its branch in Gujrat. In short span of time this branch increased their business remarkably.

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Administration 6 masters in Business
Administration 6 masters in Business

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Administration 7 masters in Business
Administration 7 masters in Business

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Core Values:

Core Values: Honesty is the most valued standard in whatever we do. We understand that our

Honesty is the most valued standard in whatever we do. We understand that our commitment to satisfy customers’ needs must be fulfilled within a professional and ethical framework. We subscribe to a culture of high ethical standards, based on the development of right attitudes. The intrinsic values, which are corner stone’s of our corporate behavior, are Commitment

i.

ii.

Integrity

iii.

Fairness

iv.

Team-work

v.

Service

Corporate philosophy:

From knowing our customer requirements to understanding employee needs, from utilizing modern technology to making responsible social contributions, from enhancing stake-holders value to practicing corporate ethics… We are continuously and consistently striving to address newer challenges with a single motivation:

“The power to inspire and be inspired”

Code of Business Principles:

Askari Bank Code of Business Principles is to:

  • i. Deliver solutions that meet customers’ financial needs; Build and sustain a high performance culture;

ii.

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iii.

iii. Build trusted relationships with all stakeholders. 2.1. BRIEF HISTORY OF THE BANK The banking sector

Build trusted relationships with all stakeholders.

  • 2.1. BRIEF HISTORY OF THE BANK

The banking sector has witness a remarkable change during the last ten years with the development of Askari Bank, which is not only redefining priorities and focus of the banks, but also threatening the domination of traditional players.

The story begins with the integration of Askari Commercial Bank limited in Pakistan on October 09, 1991, Askari Bank Commenced (begin) to operations in April 1992, as a public limited company. The bank is listed on the Karachi, Lahore and Islamabad Stock Exchanges and the initial public offering was oversubscribed by 16 times. While capturing the target market share amongst the view banks, Askari has provided good value to its shareholders. Its share price has remained just about 12% higher than the average share price of quoted banks during the last four years.

Askari Bank has expanded into a nationwide presence of 83 Branches, and an Offshore Banking Unit in Bahrain. A shared network of over 800 online ATMs covering all major cities in Pakistan supports the delivery channels for customer service. As on December 31, 2004, the

Bank had equity of Rs. 6.016 billion and total assets of Rs. 107.168 billion, with over 475,000 banking customers, serviced by a total staff of 2,118. Askari Bank is the only bank with its operational head office in the twin cities of Rawalpindi-Islamabad, which have relatively limited opportunities as compared to Karachi and Lahore. This created its own challenges and opportunities, and forced as to evolve an outward-looking strategy in terms of Askari market emphasis. As a result, Askari developed a geographically diversified assets base instead of a concentration and heavy reliance on business in the major

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commercial centers of Karachi and Lahore, where most other banks have their operational Head offices. 2.1.1.

commercial centers of Karachi and Lahore, where most other banks have their operational Head offices.

  • 2.1.1. MOTIVATION OF ASKARI COMMERCIAL BANK

While successfully penetrating the key domestic markets through strategic expansion and business diversification they remain alive to the challenge emanating from the development in the global financial markets; the opportunities and threats engendered by greater deregulation and increased customer expectations. These provide them the impetus (moment) to make the best use of available resources, including modern technologies, to meet the challenges ahead.

Historically, Askari’s core marketing focus for its asset base has been the middle and upper middle business houses (including wholesalers and manufacturers) operating in the large urban centers of Pakistan, which are primarily oriented towards foreign trade. This segment constitutes significant revenues to the bank. The liability side remains focused on the middle and upper middle class retired and serving government and armed forces personal and mid-size business houses. Their corporate banking division was established in April 1999 with the primary focus on servicing large corporate and multi-national companies (MNCs). Benefiting from the bank’s growing balance sheet size, this division B now gaining momentum and their long-term aim D to develop it into an independent. Strategic business unit (SBU)… This would the bank to acquire, develop and specialized abilities, and enhance their focus on serving the emerging needs of the corporate clients.

With this branch network of 75 and further expected increase in future, the ATM’s facility and internet Banking, Askari Bank’s reach is ever increasing. In recognition of this reach, they have set up a retail-banking group in July 2000, the mobile ATM’s facility is first time started by Askari commercial bank in 2005 dedicated to serving the urban consumer market; Askari is committed to

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aggressively market this segment. The strategy is to provide their customers with a basket of innovative

aggressively market this segment. The strategy is to provide their customers with a basket of innovative products to meet their varying needs. Askari Commercial Bank is the only Private Sector bank that has been approved by the World Bank as a Participating Financial Institution for the US$ 200 million Line of Credit sanctioned (authorized) to the Government of Pakistan for the Financial Sector Deepening and Intermediation Project.

Askari's emphasis on further broadening its core foreign trade business translated into handling a higher volume of Export and Import business of Rs. 36 billion registering a growth of 42% over the previous year. This enhanced foreign trade business was secured due to excellent customer services and efficient international settlement arrangements with our correspondent banks. Askari Bank is operating throughout Pakistan. Most of the branches are connected through our State of the Art, On-line Communications Network, which gives the bank a competitive edge in providing instant services to its clientele. We also offer direct access to the latest Foreign Exchange Rates through our Online Communications.

  • 2.2. Nature of Askari commercial Bank

ACBL is private sector Bank and is categorized in commercial bank. Commercial bank is a separation of a bank primarily dealing with deposits and loans from corporations and large businesses. Commercial bank may also be seen as separate from retail banking, which involves the provision of financial services direct to consumers. ACBL offers both retail and commercial banking services offered include; personal loans, mortgages, saving and checking accounts, credit cards, debit cards. It provides both services and products to the business user and consumer.

Army Welfare Trust directly and indirectly holds an important portion of the Bank's share capital at the period end. The Bank has 150 branches (December

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31, 2007: 150 branches); 149 in Pakistan and Azad Jammu and Kashmir including 14 Islamic Banking

31, 2007: 150 branches); 149 in Pakistan and Azad Jammu and Kashmir including 14 Islamic Banking Branches and an Offshore Banking Unit in the Kingdom of Bahrain.

Corporate Information:

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Board of Directors Lt.Gen. Javed Zia Lt.Gen.(R) Imtiaz Zia Chairman Chairman Maj Gen Saeed Ahmad Director
Board of Directors Lt.Gen. Javed Zia Lt.Gen.(R) Imtiaz Zia Chairman Chairman
Board of Directors
Lt.Gen. Javed Zia
Lt.Gen.(R) Imtiaz Zia
Chairman
Chairman

Maj Gen Saeed Ahmad Director

Mr.Zafar Alam Khan

Director

Dr.Bashir Ahmad Khan

Director

Mr.Shahid Mahmud

Director

Mr.Riyaz ul Haq

Director

Morale Noor mahomed

Director

Mr. Tariq Iqbal Khan Mr.Rafiqueuddin Mr. M.A Gazali

Audit Committee

Director President Company Secretary

Dr.Bashir Ahmad Khan

Chairman

Mr. Ali Noor

mahomed

Member

Mr. Zafar Alam Khan

Member

Legal Advisors Rizvi, Isa, Afridi & Angell

  • 2.3. Business volume, Reward honors

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Business Volume:

Business Volume: Askari Bank achieved planned growing in concern and military operation during 2009.The total possessions

Askari Bank achieved planned growing in concern and military operation during 2009.The total possessions of the bank amounted to RS. 254 billion as on December 31, 2009, registering an increase of 23 percent over December 31,

2008.

Achievements and Reward Honors:

Business Volume: Askari Bank achieved planned growing in concern and military operation during 2009.The total possessions

ACBL is the first and so far the only Pakistani Bank in private sector to have been rated as A1+ for short term category and A+ for long term category by PACRA(Pakistan Credit Rating Agency). The rating of A1+ is the highest category and stands for “obligations supported by the highest capacity for timely repayment”

In 1994 ACBL earned International recognition as Asia currency Award and the statute title of Best commercial message Bank of Pakistan for the year 1994 while monetary unit money stated the depository financial institution as topper domestic depository financial institution of Pakistan for the year 1995.

ACBL has recognition of achieving the following firsts in Pakistani banking; First Pakistani Bank to offer on-line real-time banking on a countrywide basis.

First Bank with a nation-wide ATM network. First Bank to offer Internet banking services.

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First Bank to offer e-Commerce solutions. Different institutions and magazines have also awarded them at different

First Bank to offer e-Commerce solutions.

Different

institutions

and

magazines

have

also

awarded

them

at different

occasions,

some

are;

“The Best Bank in Pakistan” by the Global Finance magazine for the years

2001 & 2002. “Best Consumer Internet Bank” award for Pakistan by Global Finance for the year 2004.

First Bank to offer e-Commerce solutions. Different institutions and magazines have also awarded them at different

“Best Presented Annual Accounts” awards for 2000and 2001 from the Institute of Chartered Accountants of Pakistan and the Institute of Cost and Management Accounts of Pakistan, Prizes from the South Asian Federation of Accountants for The best Presented Annual Accounts” for the financial sector, in the SAARC region. During the year 2009, the annual report of the Bank for the year 2008 won:

The first prize of “The Best Annual Report” for the financial sector, instituted jointly by The Institute of Chartered Accountants of Pakistan and The Institute of Cost and Management Accountants of Pakistan.

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2.4. PRODUCT/Service line 2.4.1. PRODUCT LINE Askari Commercial Bank Ltd, has taken progressive tense steps and
2.4. PRODUCT/Service line 2.4.1. PRODUCT LINE Askari Commercial Bank Ltd, has taken progressive tense steps and
  • 2.4. PRODUCT/Service line

2.4.1. PRODUCT LINE

Askari Commercial Bank Ltd, has taken progressive tense steps and has introduced innovative products and employment for their customer by saying provide you a assortment

Askari Bank Offers

Askari bank serves in the following areas:

Investment Banking Consumer Banking Treasury & International Banking Agriculture Banking Islamic Banking

Investment Banking

The main activity involved in investment banking debt/capital markets, advisory services and trading (both equities and bonds) in this portion following are the products are involved:

Commercial Paper. Debt Capital Markets

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 Capital Raising  Trading activity (equities and derivatives) Consumer Banking During 2007, the consumer banking

Capital Raising Trading activity (equities and derivatives) Consumer Banking

During 2007, the consumer banking services obtainable by the Bank were updated by combining consumer financing business and credit card business under one umbrella and were renamed as consumer banking service group. In this portion following are the products are involved:

AskCard (Debit/ATM Card). AskPower (Prepaid card) Askari Bank’s mortgage finance (Home Loans) Askari Bank’s personal finance. Cash management services Rupee traveler cheques. Askari investment certificates etc.

PERSONAL FINANCE Personal Finance is a parametric quantity driven merchandise for

business to the needs

of

the

full

general

public happiness to unlike

segments. One can help unlimited opportunities through Askari Bank s

Personal business. With unmatched business features in terms of loan sum payback time period and most affordable serial installments Askari Bank s Personal business makes certain that one gets the most out of his

her loanword. Once a

good credit history is established, the door to

opportunity opens much wider

.

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MORTGAGE FINANCE

MORTGAGE FINANCE  Askari "Mortgage Finance" offers the convenience of owning a house of choice, while
MORTGAGE FINANCE  Askari "Mortgage Finance" offers the convenience of owning a house of choice, while

Askari "Mortgage Finance" offers the convenience of owning a house of choice, while living in it at its rental value. The installment plan has carefully designed to suit both the budget & accommodation requirements. It has been designed for enhancing financing facility initially for employees of corporate companies for purchase/ construction/ renovation of house. The maximum financing amount is Rs. 10 million with repayment tenure up to 20 years.

BUSINESS FINANCE

MORTGAGE FINANCE  Askari "Mortgage Finance" offers the convenience of owning a house of choice, while

In pursuance of the National objectives to review the economy of the country, ACBL is providing loans to small and medium size business enterprises under Askari Bank's Business Finance system .ACBL’s goal is to offer a loan, which enable business group of people to receive the financing required by them based on their cash flows. ACBL’s valued customers can enjoy the convenience of getting

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financing

on

attractive

turnaround time.

processing minimum terms with the
processing
minimum
terms
with
the
financing on attractive turnaround time. processing minimum terms with the ASKCAR (Car Finance)  Yet another

ASKCAR (Car Finance)

Yet another of our products, Askari offers the most convenient and affordable vehicle- financing scheme, which provides our valuable customers an opportunity to own a brand new vehicle of their choice. With minimum down payment, lowest insurance rates and widest range of available car makes and models, Askcar offers the best value to our esteemed customers.

ASKCARD

ASKCARD means freedom, comfort, convenience and security, so that you can have retail transactions with complete peace of mind. ASKCARD is your new shopping companion which enhances your quality of life by letting you do shopping, dine at restaurants, pay your utility bills, transfer funds, withdraw and deposit cash through ATM anywhere, anytime.

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financing on attractive turnaround time. processing minimum terms with the ASKCAR (Car Finance)  Yet another
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Treasury and International Operations During 2007, the bank increased its overall foreign trade business. The import

Treasury and International Operations

During 2007, the bank increased its overall foreign trade business. The import business increased to Rs. 119.3 billion. I.e. growth of 11% over last year, while the exports increased by 6% over last year, to Rs. 97.3 billion.

Products:

Foreign Currency Accounts. Foreign Trade Services (Import & Export) Import & Export Financing etc.

Agriculture Credit Financing

In agriculture credits financing the banks facilitate the following schemes to the public:

Askari Kissan Ever Green Finance. Askari Kissan Tractor Finance Askari Kissan Farm Mechanization Finance, Askari Kissan Aabpashi Finance etc. Islamic Banking

During the last year Islamic banking was launched under the brand ‘Askari Islamic Banking’ by opening 6 devoted Islamic Banking Branches in main cities of the country. In order to meet customer’s demand for Shariah Compliant banking, in the following areas:

Islamic Corporate Banking Islamic Investment Banking Islamic Trade Finance Islamic General Banking

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 Islamic Consumer Banking. 2.4.2. ACCOUNTS Askari Bank operating following types of accounts:  Current Account.

Islamic Consumer Banking.

2.4.2. ACCOUNTS

Askari Bank operating following types of accounts:

Current Account. Saving Account. Askari Special Deposit Account. Term Deposit.

ADVANCES

 Islamic Consumer Banking. 2.4.2. ACCOUNTS Askari Bank operating following types of accounts:  Current Account.

Advances are major sources of earning of income for commercial banks. Banks attracts excess balances from the customers at low interest revenue enhancement makes advances at higher involvement rates to the individuals or concern firms.

ACBL offer these facilities;

Funded facilities Non- Funded facilities Funded facilities

In funded facilities the bank actually advances money against further repayment. These facilities are known as cash credits.

Non- Funded facilities

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Non Funded facilities are those in which depository financial institution substitutes its own recognition for its

Non Funded facilities are those in which depository financial institution substitutes its own recognition for its customers.

ACBL offers to its customers are large number of non-funded facilities.

These facilities include;

  • 1. Guarantee

  • 2. Letter of credit

Irrevocable letter of credit

Revocable letter of credit

Sight letter of credit

Usance letter of credit

  • 2.5. Pestle analysis

Political

Pakistan despite all international and public perceptions, today is a functioning democracy and gradually there is a change in complexion and composition of legislatures with more educated people and women (27% of National Assembly and 17% of Senate) entering into politics Similarly it helps in designing best

strategies to implement that could support the revival of bank industry. Like in the time of nationalization banks had to suffer as other industries that’s why that impact is still found in the presentation of this industry.

Economical

Although banking aspect development is important at the other stage of economic maturation general relaxation presuming a homogeneous banking concern role may not necessarily promote maturation. The estimated monetary value construction indicates that province closely-held commercialized Banks are ample sufficient piece evolution business institutions and secret Banks can expect to obtain monetary value good advantages by expanding their trading operations. Since scope economies are important portfolio variegation generally

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increases bank net income. In addition privatized banks are the most efficient followed by strange and

increases bank net income. In addition privatized banks are the most efficient followed by strange and buck private banks. Public banks are the least efficient.

Social

Banks always helped people in improvement of living status of poor people in various forms like contribution loans to poor for starting concern or directly providing them the instruments that could enhance their living conditions. Similarly Askari depository financial institution always tested to provide the poor people loans on delicate terms and also helped to eradicate unemployment by providing job opportunities. Recent high growth trends coupled with enhanced spending on social and Poverty programs that rose from 3.8% of GDP in 2001/2002 to 5.05% by 2005/2006 has together begun to pay some dividends as evident from the Reversal in poverty incidence trends and social indicators.

Technology

The Banking sector in Pakistan has experienced a rapid change. Almost a decade back this sector was limited to the Sarkari (read nationalized) and co- operative banks. Then came the multi-national banks, but these were limited to serving a selected few. One could regard the past as the 'medieval ages' in the banking industry, wherein every branch of the same bank acted as an independent information storage tower and multi-channel banking (ATMs, Net banking, Tele-banking, etc) was almost unreal. Today banks have to look much away from just providing a multi-channel service platform for its customers. There are other pressing issues that banks need to address in order to chalk-out a roadmap for the future. Here are the top three concerns in the mind of every bank's CEO. The customer is interested in how he/she can benefit from the bank and its products. That's why it becomes necessary for a bank to differentiate its products from the others. Some of the ways in which differentiation can be

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introduced are through specialization, new products, and increasing the added value. 2.6 Contribution of Askari bank

introduced are through specialization, new products, and increasing the added value.

2.6 Contribution of Askari bank limited toward economic development

ACBL has been at the top of economic development in the country. It has period of play the old age funded projects which topper serve the economic objectives and sociable needs of the state. The bank has made enormous contribution to the evolution of body part and culture medium sized entrepreneurs and to self employ schemes. ACBL realizing its responsibility towards improving natural environment accepted the challenge of planting saplings in an area of 3,000 hectares where severe deforestation has occurred over the years in the districts of Umerkot, Tharparkar and Mirpurkhas.

The bank was celebrated for its contribution in setting “Business World Record” for planting maximum number of trees in a single day. The record was set on 15th July 2009 in an area of Kati Bundara under the president’s Mass Forestation Program for plantation of 400,000 mangrove tree seedlings.

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Organizational structure Chapter no. 3 3.1. Organizational Structure in Askari Commercial Bank Organizational structure is more

Organizational structure

Chapter no. 3

  • 3.1. Organizational Structure in Askari Commercial Bank

Organizational structure is more than boxes on the chart. It is a pattern of interaction and coordination that links. Technology and human components work together to ensure that organization accomplishes its purpose.

Some characteristics of ideal organizational structure called Bureaucracy by Max

Weber is found in the organizational structure of the ACBL as follows

Position arranged in a hierarchy

Each lower office is under the control and supervision of a higher one. This bureaucratic principle helps the management of ACBL to control over every member in the structure.

A system of abstract rules

A continuous organization of functionary functions should be boundary by rules. This bureaucratic principle helps the management of ACBL to ensure uniformity and coordination of effort.

In this age of complex, highly conflicting relationships, advanced technology and empowered employees; Max Weber bureaucratic model is only the historical starting point, not the end, of the organizational analysis.

VERTICAL STRUCTURE ANALYSIS

Vertical analysis concentrates on centralization versus decentralization and on

flat versus span of control structuring. Centralization versus Decentralization

1) Geographical

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Geographical centralization means that the organization has all its operations under one roof. Geographical decentralization means

Geographical centralization means that the organization has all its operations

under one roof. Geographical decentralization means the dispersion of Organization operations through the country. SIL has its operating office in Lahore and Karachi, which show that it is geographically decentralized.

2) Functional

An organization has separate department that performs such as selection or

training for others is called centralized organization and if the various functional departments (for example; marketing, production and finance) handle their own human resources functions then it is considered decentralized organization. In SIL, functional level is centralized.

3) Delegation

Centralization and decentralization commonly refers to delegation of decision making command. Within the company, there is centralization to a greater extent.

Flat versus Span of control

In ACBL, the structure of the organization is tall with a few members at each level. As a result there is narrow span of control and supervisors have close control over their subordinates.

HORIZONTAL STRUCTURE ANALYSIS

Horizontal structural analysis is concerned with organizing one level of the

hierarchy.

The concept of Departmentalized and of line and staff represent this approach.

Departmentalization

ACBL has a functional departmentalized structure. The greatest single advantage of functional departmentalization is that it incorporates the positive aspects of specialization. It also leads to greatest efficiency and the most economical utilization of employees.

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  • 3.1. Organizational Hierarchy chart

3.1. Organizational Hierarchy chart Administration 27 masters in Business
3.1. Organizational Hierarchy chart Administration 27 masters in Business

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3.2. Number Of Employees Branch Total employees Year G.T road Gujrat 32 2013 Overall 6,808 2014) 111 000 322 E-Mail: askari@isb.compol.com Registered Office /Head Office AWT Plaza, the Mall, P.O. Box No.1084 Rawalpindi – 46000, Pakistan. Tel: (92 51) 9063000 Fax: (92 51) 9272455 E-mail: webmaster@askaribank.com.pk Website: www.askaribank.com.pk 3.4 Introduction to all Departments Administration 28 masters in Business " id="pdf-obj-27-3" src="pdf-obj-27-3.jpg">

3.2.

Number Of Employees

 

Branch

Total employees

Year

G.T road Gujrat

32

2013

Overall

6,808

2014

3.3.

Main Offices of Askari Commercial Bank

Registrar & Share Transfer Office

THK Associates (Pvt) Limited

Ground Floor, State Life Building No. 3, Dr.Ziauddin Ahmad Road, Karachi – 75530

P.O. Box: 8533, Karachi. Tel: (92 21) 5689021, 5686658, 5685681 Fax: (92 21) 111 000 322 E-Mail: askari@isb.compol.com

Registered Office /Head Office

AWT Plaza, the Mall, P.O. Box No.1084 Rawalpindi – 46000, Pakistan. Tel: (92 51) 9063000 Fax: (92 51) 9272455 E-mail: webmaster@askaribank.com.pk Website: www.askaribank.com.pk

3.4 Introduction to all Departments

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Banking procedures are divided up between diverse departments. Different departments do their jobs in synchronization with

Banking procedures are divided up between diverse departments. Different departments do their jobs in synchronization with the bank policies. In Askari bank each branch is divided into various departments.

The departments working within ACBL are as:

  • 3.4.1. GENERAL BANKING DEPARTMENT

    • 1. Account opening department

    • 2. Remittances department

    • 3. Cash department

    • 4. Clearing department

      • 3.4.2. PRIVILEGE BANKING DEPARTMENT

        • 1. Online banking

        • 2. Lockers

          • 3.4.3. CREDIT DEPARTMENT

            • 1. Nature of credit

            • 2. Types of credit instruments

              • 3.4.4. FOREIGN EXCHANGE DEPARTMENT

                • 1. Functions of foreign currency account department

                • 2. Requirements of fund transfer

ACCOUNTS DEPARTMENT

FUNCTIONS OF ACCOUNT OPENING DEPARTMENT

  • 1. Provide account opening form according to the customer's requirements.

  • 2. Guide the customer about the requirements of the account opening and form

filling.

  • 3. Check the forms whether they are correctly completed or not

  • 4. Preparing Checklist.

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  • 5. Stamping on the form.

  • 6. Maintain account opening register.

5. Stamping on the form. 6. Maintain account opening register. 7. Pasting of forms in register
  • 7. Pasting of forms in register after release from general banking in charge.

  • 8. Issuance of cheque books.

  • 9. Issuance of accounts maintenance certificate.

10. Closure of account.

3.4.5 REMITTANCE DEPARTMENT

The remittance section deals with the transportation of currency from one place to another. This department deals with the local acceptance transfer only. Askari banking concern provides this work to both customers non customers.

FUNCTIONS OF REMITTANCE DEPARTMENT

The function of remittance department is to handle the following instruments:

  • 1. Pay Order

  • 2. Demand Draft

  • 3. Pay slip

  • 4. Telegraphic Transfer

  • 5. Payment of Remittances

  • 6. Cancellation of pay order & demand draft

Remittance can be made through:

Instrument transfer

Electronic transfer

Mail transfer

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CASH DEPARTMENT

CASH DEPARTMENT All physical movement of cash in the bank is made through the cash department.

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

  • 1. Receipt

  • 2. Payments

  • 3. Act according to any standing instructions

  • 4. Transfer of funds from one account to another

  • 5. Handling of ATM

  • 6. Verification of signatures

  • 7. Posting

  • 8. Handling of prize bond

3.4.6 CLEARING DEPARTMENT

The word clarification has been derived from the intelligence area and is formed

as

a system by which Sir Joseph Banks exchange cheques and former

negotiable instruments drawn on each former within a specific region and thereby

secure defrayment for their clients through with the clarification House at specified clock time in a competent way.

  • 1. Since clearing does not involve any cash etc. And entire written account take

property through record book entries the number of transaction can be straight- out

  • 2. No cash is needed as such the risk of robbery, misuses and pilferages are

totally eliminated.

  • 3. As major payments are ready-made through glade the Banks came manage

cash payments at the counters with a lower limit amount of cash in vaults.

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4. A lot of time, cost and labor are saved. 5. Since it provides an extra
  • 4. A lot of time, cost and labor are saved.

  • 5. Since it provides an extra service to the customer of banks without any service

charges or costs, more and more people are inclined and attracted towards

banking

  • 3.4.7 CREDIT DEPARTMENT

Although the study of money is important for the understanding of the way in which our economic system operates, we must recall this point that most exchange transactions in this system are carried on today without the use of actual money, i.e. Those are carried on by means of credit and credit instruments rather than money. While money still forms the basis of credit.

  • 3.4.8 FOREIGN EXCHANGE DEPARTMENT

The term "foreign exchange" is used to denote either a foreign currency or the rate at which one currency is converted into another or the means & methods by which one currency is exchanged for another.

Foreign exchange department performs following functions:

  • 1. Foreign Bills for collection (FBC)

  • 2. Foreign telegraphic transfer (FTT)

  • 3. Foreign Demand Draft (FDD)

  • 4. Issuance of Proceed realization certificate

  • 5. Inward remittances

  • 6. Daily Reporting

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3.5 Comments on the organizational structure Organization structure; The official pattern of how people and jobs

3.5 Comments on the organizational structure

Organization structure;

The official pattern of how people and jobs are grouped in a concern.

Departmentalization;

The basis which jobs are together.

Chain of command;

Is the constant line of power that expands from upper organization level to the lowest level and clarifies who report to whom?

Centralization and Decentralization;

Decision making is made by top level or lower level.

Span of control;

The number of subordinate a manager can direct professionally and successfully.

In my point of view, the structure of ACBL is simple active and unify decision making the whole department is report to operational manager and then he report to branch manager. The jobs duties and responsibilities are apart into entire section but due to little figure of worker in ACBL jobs responsibilities are portion between employees. Centralize decision making make the distance between the top level and lower level manager. The main benefit of centralize decision devising is supervisory program can justice and evaluate the public presentation of all employee.

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Brief Introductions to Branch Chapter no. 4 Part - ‖ Internee work 4.1 Introduction of branch

Brief Introductions to Branch

Chapter no. 4

Part -

Internee work

4.1 Introduction of branch

Askari commercial Bank started its operations in 1992, and head office of Askari commercial bank in Rawalpindi. ACBL has 75 branches in Pakistan. One of the branches is located in Hassan Plaza G.T road Gujrat where I have done my internship of six weeks period. There are 32 employees and the environment of bank is very self-motivated and attractive. The branch Manager Mr. sheikh Javed is very hardworking.

The business volume of the branch is twenty million and it has the following departments;

Remittances Department

Cash Department

Agricultural Department

Accounts Department

Foreign Trade Department

Credit Department

IT Department

Clearing Department

Starting And Ending Date of Internship;

Starting Date of Internship 15-07-2013 Ending Date of Internship 30-08-2013

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4.2 Details of supervisors

4.2 Details of supervisors Branch Manager Operational Manager 4.2.1 Cash department; Incharge: Mr. M.shabir OG-2 Assistant:

Branch Manager

Operational Manager

  • 4.2.1 Cash department;

Incharge: Mr. M.shabir OG-2

Assistant: Mr. Zeeshan adil

Javaid sheikh

abid khan

C.D Incharge: Mr. Abid Khan

  • 4.2.2 Clearing Department;

Incharge: Mr. Qazi Irtza

Incharge IBC Mr. Habib Shah

  • 4.2.3 Foreign Trade Department;

Incharge: Syed Awais Mehdi

Assistants: Mr.Irfan Rasheed & Mr. Atique Rehman

  • 4.2.4 Deposit Department;

Inchrge Account Opening: Mr. Haseeb Mali

Accounts Incharge: Mr, Mohsin Raza

  • 4.2.5 Credit Department;

Incharge: Mr. Abdul Majid

Assistant: Mr.Shams-us-Din

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4.3 Weekly Timetables

4.3 Weekly Timetables 4.3.1 Week 1 (18, July, 2013– 24 July, 2013) DATE DAY DEPARTMENT TASK

4.3.1 Week 1 st (18, July, 2013– 24 July, 2013)

DATE

DAY

DEPARTMENT

TASK

SIGNATURE

18-7-

Thursday

ACCOUNT

Introduction own self &

 

2013

OPENINING

exchange

DEPARTMENT

Letters

19-7-

Friday

Introduce the General

2013

banking & procedure of account opening

22-7-

Monday

Learn the basis rules for

2013

opening an account

23-7-

Tuesday

Customer Dealing to

the

2013

attract them through

providing information related to the bank and accounts

24-7-

Wednesda

Filling

the

forms

for

2013

y

opening the accounts

(Individual Account)

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4.3.2 WEEK 2(25 July, 2013, 31 July ,2013) DATE DAY DEPARTMENT TASK SIGNATURE 25-7-2013 Thursday ACCOUNT

4.3.2 WEEK 2(25 July, 2013, 31 st July ,2013)

DATE

DAY

DEPARTMENT

TASK

 

SIGNATURE

25-7-2013

Thursday

ACCOUNT

 

Fill the forms of Individual

OPENING

Account filled ss card and punch stamps

DEPARTMENT

on form and ss card

 

26-7-2013

Friday

Types of account opening (joint account or

   

individual) and operate

29-7-2013

Monday

Filling the forms for opening the accounts (Joint Account)+filled ss card and punch stamps on form and ss card

30-7-2013

Tuesday

Same job do this Day and fill pay in slip

 

31-7-2013

Wednesday

Record the account open into their specific register

 

4.3.3

Week # 3 (1 August, 2013– 7 august, 2013)

 

Date

Day

Department

 

Activities

Signature

01-8-2013

Thursday

Foreign

Trade

Introduction

of

new

 

Department

 

department

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02-8-2013 Friday Basic procedure of its working related to imports and exports 05-8-2013 Monday Learnt about
 

02-8-2013

Friday

 

Basic procedure of its working related to imports and exports

 

05-8-2013

Monday

Learnt

about

the

basic documentation involved in imports

06-8-2013

Tuesday

learnt about the basic documentation

involved in exports

07-8-2013

Wednesday

Learnt

about

the

remittances

4.3.4

WEEK 4 TH (08 august 2013, - 14, august, 2013)

 

DATE

DAY

DEPARTMENT

ACTIVITIES

 

SIGNATURE

08-8-2013

Thursday

Clearing

I

inward

deal

with

 

Department

clearing

 

09-8-2013

Friday

Deal cheques which are drawn on ACBL G.t road Gujrat branch sent

by other banks.

 

12-8-2013

Monday

I

activity as

did same

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yesterday 13-8-2013 Tuesday I deal with outward clearing 14-8-2013 Wednesday I received the cheques of the
 

yesterday

 

13-8-2013

Tuesday

 

I

deal

with

outward

 

clearing

 

14-8-2013

Wednesday

I received the cheques of the customers check the date, signatures, amount in figures and words and cheque

number of deposit slip.

  • 4.3.5 Week 5 th (15, august, 2013-21, august, 2013)

Date

Day

Department

Activities

 

Signature

15-8-2013

Thursday

Remittance

Introduce about new task

 

department

of Remittances Department

16-8-2013

Friday

Learn basic requirement and how it will be issued

19-8-2013

Monday

supervisor told about the

 

method of filling the form

of

demand

drafts

&

observe

the work

 

20-8-2013

Tuesday

Dealing customers & told

 

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them course of action about issuing the demand draft 21-8-2013 Wednesday Payment of Demand Draft after
     

them

course

of

action

 

about

issuing

the

demand draft

 

21-8-2013

Wednesday

Payment of

 

Demand

Draft

after

checking

that

will be

it

paid

or

not

and

take

signature of the customers

 
  • 4.3.6 Week 6 th (26, august 2013-30,august, 2013)

Date

Day

Department

Activities

Signature

26-8-2013

Monday

Remittance

Introduce new task of

 

department

Remittances Department, that issuance, procedure of the Pay Order

27-8-2013

Tuesday

supervisor told about the procedure of entering the Pay Order & observe the Work

28-8-2013

Wednesday

Fill the form for issuing the Pay Order

29-8-2013

Thursday

Payment of Pay

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Order after checking that it is related to will be paid or not and take signature
     

Order after checking that it is related to will be paid or not and take signature of the customers

 

30-8-2013

Friday

work on register entering the payment of Pay order

4.4 Detailed description of departments you worked in your internship

DEPOSITS DEPARTMENT

Deposit is the functional component of a Askari Commercial Bank. No bank can run its operations without deposits. Main function of a commercial bank is to channelize saving from the savers to the ultimate users of funds. The process of collecting saving is called Deposit Mobilization. Two board categories of deposits with reference to time period are:

Demand Deposit:

These are payable on demand. They include current account, varied deposit

(e.g. margin account) and call deposit receipt. deposits.

No

profit is given on demand

Time Deposit:

Payable on demand with certain maturity. Attracts profit with respect to time.

OPENING OF ACCOUNTS:

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At the time of opening accounts, officers considerately obtain as much information as possible about the

At the time of opening accounts, officers considerately obtain as much information as possible about the honesty and character of the person, his correct name, address and occupation. It is, therefore, essential that appropriate care and proper procedure be followed for opening different types of account for different types of customers.

Askari Commercial Bank Ltd. has the following classification of accounts

  • a. INDIVIDUAL ACCOUNTS

  • b. PARTNERSHIP FIRM ACCOUNTS

  • c. JOINT STOCK COMPANY ACCOUNTS

  • d. AGENCY ACCOUNTS

  • e. CLUBS, SOCITIES AND ASSOCIATIONS ACCOUNTS

  • f. EXECUTORS AND ADMINISTRATORS ACCOUNTS

  • g. TRUSTS

  • h. LOCAL BODIES ETC.

  • I. PROPERITORSHIP

  • j. JOIN ACCOUNT

  • k. OTHER MISC. ACCOUNTS.

Individual Account:

Such accounts may be classified as

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I. Account of literate ladies and gentlemen. ii. Account of illiterate ladies and gentlemen. iii. Account

I. Account of literate ladies and gentlemen.

ii. Account of illiterate ladies and gentlemen.

iii. Account o Parda observing ladies.

iv. Joint Account.

iv.

Minor Account.

Account of Partnership Firms:

Mean opening accounts of the partnership firms the business concern deed from registered firms is needful to be obtained in addition to account opening night form and specimen signature card. The partnership letter is incorporate in the account opening form which must also be gestural by all the partners of the firm weather condition registered or un certified

Accounts Joint Stock Companies:

Joint stock companies include

(1) Private Limited Companies and (2) Public Limited Companies.

Askari Commercial Bank needs following documents whereas opening accounts of joint stock companies:

Copy of Resolution:

  • a. Memorandum of Association

  • b. Article of Associate

  • c. Certificate of Incorporation

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d. Certificate of commencement of Business (only required for public Limited company) e. National identity cards
  • d. Certificate of commencement of Business (only required for public Limited company)

  • e. National identity cards of Directors

  • f. List of Directors with their shareholding

Accounts of Agents:

An agent is the person who is allowed certain acts in behalf of another person. The person for whom he has to carry out the business is called the principal.

Accounts of Clubs, Societies and Associations:

Clubs, societies and associations concerns are non trading and non-profit in nature. They have their own rules and their affairs are monitored by committees, which may be called governing bodies or managing committee or executive committees.

Documentation Check List:

  • a. Account opening form

  • b. Specimen signature card

  • c. Resolution to be passed by their governing body wherein they will resolve that:

I. Banking account open in their name with the Askari Commercial Bank Limited.

II. Name(s) of person to be specific for operation on the account

III. The manner in which the account shall be operated.

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d. Certified copy of Rules and Regulations or Bye-n-laws e. Letter of registration. f. Letter of
  • d. Certified copy of Rules and Regulations or Bye-n-laws

  • e. Letter of registration.

f. Letter of undertaking to the effect that as and when change takes place they will inform the bank of such changes.

PLS Saving Bank Account:

Saving deposits were launched to repeat and give confidence the of saving among people of small income in order to achieves of Islamisation of the banking system in the country, the government authorized the Askari commercial bank to accept Saving Deposit on profit and loss sharing basis. Deposits received under this scheme are invested in non-interest bearing advances and other avenue so as to remove the element of interest.

Current Account:

A current account is a running account, which is continuously in operation, by the customer on all working days of the bank. The customer deposits without the current deposits without previous notice to the bank.

PLS Term Deposit:

Fixed or term deposits are the major source of funds of a commercial bank. Term deposits, as the name implies, are deposits kept with a bank for a certain period of time. They are not payable on demand like the current deposit. The depositor can only withdraw them after the specified period of time. The persons or firms self-assurance churchlike bodies which wealthy person surplusage monetary resource livelihood the medium of exchange in rigid deposits with banking concern.

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Cheque Book Issuance:

Cheque Book Issuance: Check book is issued for only electric current account PLS account and ASDA

Check book is issued for only electric current account PLS account and ASDA FISDA and FAIDA accounts. It is not issued for PLS Term Deposit and value plus Saving Accounts, because in these accounts, amount cannot be withdrawn within a fixed time period.

REMITTANCE DEPARTMENT

The need of remittance is generally felt is commercial life mostly and in everyday life generally. The major function of the remittance department is to transmit money from one place to another. By providing this service to the customer, bank earns a lot of income. Also customer is able to meet its day to day financial requirements.

Demand Draft:

It is a tool payable on demand for which value has been estimated, issued by the branch of the bank drawn i.e. to be paid at some other place (branch) of the same bank. If two banks are involved then the DD is sent to other bank but in other case it is handed over to the candidate.

Issuance Procedure for Demand Draft:

A demand bill of exchange application is given to the client he fills in applicable information and signs it. The officer checks the information form. The bank charges such as commission, excise duty is charged as per effective schedule of charges. If he fills the tax freedom form, tax is not charged.

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 In case of cash sedimentation the teller counts the amount and signs the DD practical

In case of cash sedimentation the teller counts the amount and signs the DD practical application and enters it in the registry. Then the In charge of remittance department signs it and operation

manager counter signs it. The entry is made in the DD issuing registry DD is given to the client. Vouchers are prepared and posted. DD advises are printed and mailed to the several branch.

Payment Procedure for Demand draft:

DD is received by the bank. The DD credit advice is received through mail. The numbers are

checked and signatures are verified. An entry is made on the DD payable registry and the vouchers are

made. DD credit is attached with the vouchers and presumption for poster to

the computer When DD is received the test numbers are checked and the payment

is made. Vouchers are presumption for poster and the entry that was ready-

made in the register is closed i.e. DD payable is nil.

Telegraphic Transfer (TT):

It is the quickest means of transfer of funds from one place (Branch) to other place (Branch) of the same bank. Generally a mail service conveys proposal reaches the drawer subdivision the following day done courier employment. But sometimes, a client demands that his funds should be transferred through the quickest way. In such cases, transfer of funds message is passed through telephone or telegram.

This mode of transfer was used before online. Online system is very effective for this purpose now-a-days. In Askari Commercial Bank online scheme is used.

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Issuance Procedure for TT:

Issuance Procedure for TT:  The request of issuing TT is taken on the regular in

The request of issuing TT is taken on the regular in print form. The customer fills the form correctly and signs it. The Head of Remittance Department checks it, the charge such as expenses, tax and telex as per efficient schedule and signs it. If he fills the tax freedom form then no tax is deducted. Then a TT is made on colorless slip. There are 3 copies, the original one is faxed to the Branch, one to the Head Office and one is kept for

record. The entry is made in the TT issuing registry. When payment bill is received, it is attached to the TT office copy in the

file.

Payment Procedure for TT:

When a TT arrives, the test numbers are checked and the signature is verified. The entry is made in the TT payable registry. If there is no account then the TT received needs income stamp and then payment is made. TT receipt is strictly fixed.

Pay Order:

It is an instrument issued for payment in same city. Pay order issue from on e branch can only be allocated from the same branch. It is normally referred to as banker’s cheque. It is also called confirmed cheque, because bank issues this on it own guarantee.

Issuance Procedure:

The standard form is given to the client. He fills in the facts and signs it. The concerned officer checks the form.

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 Bank charges (or commission) as per the schedule of charges and the withholding tax of

Bank charges (or commission) as per the schedule of charges and the

withholding tax of 0.3% are applied. The cash amount of the pay order is received. A cash memo is signed, stamped and handed over to the candidate as

a receipt. Then the pay order receipt is filled consequently. Counter foil is also packed. An entry is made in the pay order issue register. Then the authorized officer signs it after checking the pay order. The order is then handed over to the candidate after obtaining his

signature on the PO Form. A voucher is also made and post at the computer.

Payment Procedure:

On presentation of the pay order receipt, two authorized officers of the branch sign the receipt.

PO entry is made in the PO issue register. Then the amount is credited to the account of the customer or pain in

cash. PO is posted at the computer.

Pay Slip:

It is a tool issued by the bank for the completion of its own payment. It is used for payment by the bank to anyone (may be employees) in this case only one bank is involved. He is the issuer as well as the payer.

No eliminate Duty No Commission

Issuance:

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 A recognition voucher is sent from the account department to the remittance department.  Pay

A recognition voucher is sent from the account department to the

remittance department. Pay Slip book is taken out and filled according to the recognition

voucher. It is entered in the pay slip register. It is signed by authorized Officer. A voucher is prepared and posted. Pay Slip is then handed over to the customer.

Payment Procedure:

Pay Slip is just like a cheque and bank is liable to pay against pay slip. After that when the pay slip is received by the bank for payment, it is

again transferred in the register. Then payment is made and it is posted in the computer.

Outward Bills for Collection:

The bills, which are received by the bank and sent to other cities (branches) for the local clearing in that city, are called Outward Bills for Collection.

Procedure:

The cheques that are of other cities are separated. They are entering in the OBC Register and OBC numbers are set to

them. The OBC forwarding schedules are organized for different branches. The respective cheques are attached with the schedule. The office copy is filled and new schedule is mailed. On clearing, the particular banks send back the OBCs along with the

IBCA (Inter Branch Credit Advice). The OBC numbers are checked from the OBC register, after those

entries are made.

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 Commission charges are deducted from the account. Inward Bills for Collection: The bills, which are

Commission charges are deducted from the account.

Inward Bills for Collection:

The bills, which are received by the bank from other branches out of the city for local clearing, are called Inward Bills for Collection.

Procedure:

The OBC of other branches will be the IBC of this branch. So an OBC forwarding schedule is received by mail. The cheques are entered in the IBC registry. The IBC numbers are chosen to them. The cheques are lodged for clearing. After recognition, an IBCA is arranged and mailed to the branch from where the cheque was received. At the end of the day, two vouchers are ready and posted.

CLEARING Department

Outward Clearing Inward Clearing

Outward Clearing at the Branch:

The following points are to be taken into concern while a tool is accepted at the counter to be presented in outward clearing:

  • 1. The name of the branch appears on its face where it is drawn on

  • 2. It should not be stale or post dated or without date

  • 3. Amount in words and figures does not differ

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4. Signature of the drawer appears on the face of instrument 5. Instruments is not mutilated
  • 4. Signature of the drawer appears on the face of instrument

  • 5. Instruments is not mutilated

  • 6. be

There should

no objects

modification

if

so,

it should

be properly

authenticated

  • 7. If order tool, duly authorized and last endorsee’s account being credited

  • 8. Approval is in accordance with the crossings if any

  • 9. The amount of the tool is same as mention on the paying-in-slip and stump

10. The label of account on the paying-in-slip is that of payee or endorsee (with the exception of bearer cheque).

If a tool is in order then out bank’s special crossing stamp is affixed across the face of the tool. Clearing stamps is affixed on the face of the tools, paying-in- slip and counterfoil (The stamp is affixed in such a manner that half appears on paying-in-slip and half on counterfoil). The tool is suitably discharged, where a bearer cheque does not required any discharge and also a tool in favor of a bank need not be discharged. The tool along with paying-in-slip is retained while the counterfoil is given to the customer duly signed. Then the following steps are to be taken:-

1.

The

particulars of the

tools and

the

and

the pay-in-slip or credit

vouchers are entered in the Outward Clearing Register.

2. Serial number is given to each voucher

3. The register is balanced, the credit voucher are separated form the tool and are released to respective departments against tool and are

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released to respective departments against acknowledgement in the register 4. The schedules are arranged bank-wise 5.

released to respective departments against acknowledgement in the register

  • 4. The schedules are arranged bank-wise

  • 5. The

schedules are prepared in triplicate, two copies

of which

are

attached with the relevant tool and the third is kept as office copy

  • 6. The house page is prepared from schedules in triplicate

  • 7. The schedules and house pages are signed by the officer incharge with branch stamp

  • 8. The grand total of the house page is taken and agreed with that of the outward clearing register

  • 9. The tools along with duplicate and house page are sent to the Main Office

Inward Clearing of the Branch:

  • 1. The particulars of the tools are compared with the list

  • 2. The tools are detached and sort out department wise

  • 3. The entry is made in the Inward Clearing Register (serial number, tool number, account number, amount of the tool is written).

  • 4. The tools are sent to the respective departments against acknowledgement in the Inward Clearing Register.

  • 5. The tools are scrutinized in each respect before honoring the same

FOREIGN EXCHANGE DEPARTMENT

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Foreign Exchange Department works in ACBL like the general bank departments. This department deals with the

Foreign Exchange Department works in ACBL like the general bank departments. This department deals with the following:-

Import Export Foreign Remittance 1. IMPORT:

The international trade transaction, in which one country buys goods from other country, is called import.

The import trade in Pakistan is governed by import and export Act of 1950. Previously, the regulating body of imports was controller of Import and Export. But this function has been shifted to Export Promotion Bureau.

Import License and Registration:

The individuals and firms who desire to import goods from the foreign countries are required to obtain import license.

Contract of sale: After getting the license, the importer then negotiates with the exporter. When they reach to an agreement on all terms of sale, they sign a contract. Thus contract includes all information of terms and condition of sale.

Letter of credit:

Foreign trade payment problems are mainly solved by a letter of credit. A letter of credit is issued by the importer’s bank. If guarantees payment to the exporter up to specified amount of money provided the terms and conditions laid down the L/C are fulfilled.

A letter of credit is a commitment on the part of buyer’s bank to pay or accept draft drawn upon it, provided drafts do not exceed a specified amount.

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A letter of credit thus is a (I) written undertaking by an importer’s bank to exporter’s

A letter of credit thus is a (I) written undertaking by an importer’s bank to exporter’s bank. (II) That it will pay or accept draft drawn upon it up to a stated amount with a specified time. (III) The compensation will only be made to the exporter if he compliers with the conditions of credit.

2. EXPORT:

This department deals with the transactions, which relates to sale of goods in foreign countries and receipt of foreign exchange from abroad.

The calculating body of export in Pakistan is Export Promotion Bureau, it gives special incentive to the businessmen for attractive the exports and reducing the Balance of payment shortfall. It restricts the export of some goods and reinforces export of other.

Documentation:

E-Form Bill of exchange Export invoice Packing list Bill of lading Certificate of origin

  • 3. Foreign remittance:

Askari Bank also operates in Foreign Currency accounts. In agreement with instructions of SBP, foreign currency accounts are opened in these currencies:

US Dollar, Pond, Japanese Yen, and Euro. Funds are transferred abroad by Foreign Telegraphic Transfer Swift MT-100 is used for this transfer. Askari Commercial Bank has its bureau planning in those countries, where its own branches are not reputable. Its agency arrangements with City Bank, American Express, ABN Amor, Standard Chartered Bank.

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  • 4.5 Detail description of operations

4.5 Detail description of operations I worked in different departments of ACBL and performed different activities,

I worked in different departments of ACBL and performed different activities, which are as follows

4.5.1 Account opening department;

I performed many operations in account opening department, as

Customer dealing to attract them through providing the information related

to the bank and accounts. Filling the forms for opening the accounts (Individual Account) Fill the forms of Individual Account filled ss card and punch stamps on

form and ss card Filling the forms for opening the accounts (Joint Account)+filled ss card

and punch stamps on form and ss card Record the account open into their specific register

4.5.2 Foreign Trade Department;

Customer dealing Filled the different documentation relating imports and exports

  • 4.6 Tasks assigned to me:

I did my internship in Askari Bank Limited (Hassan Plaza G.T road Gujrat). My timings were 9am to 4pm. During that time period I was assigned different tasks. First of all the bank Manager, Mr.Javeid Sheikh, told me about the rules and regulations of the Askari Bank and the basics of some operations of the departments in the bank. In six weeks I have performed different activities like account opening procedure, remittances, chequebooks issuance, bills collection, vouching, clearing and credit granting procedures.

  • 4.7 Summary of learning:

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Working with Askari commercial Bank Limited, for internship project added a great value to my knowledge,

Working with Askari commercial Bank Limited, for internship project added a great value to my knowledge, skills, and abilities and hence gave me a chance to relate my studies in the practical working environments. Internship taught me,

Professionalism Confidence and presentation abilities Communication skills Handling the stressful situations

Workings in an organization does not bound your cognitive content to equitable one section that you are allotted with but actually the organization is running with a orderly collaboration of the departments and hence requires communication theory and fundamental interaction.

Wellspring that‘s it that the point that you should not ignore and always keep your mind and heart clear for the experience. If you are in a situation and have interactions your studies are beginners implemented in practical environs there. You’re not by passing your boss because you know that organizational hierarchy is defined and proper abstraction channels are available which should be used. OR. You won’t display resistance to change reason you deliberate that change is the alone constant and hence necessary for organizational evolution and employees survival

4.7.1 What skills and qualifications you think that you have gained from the internship?

The most important thing that I got to learn from this internship program is that I gained some experience of working in a real world scenario. After gaining academic knowledge and classroom experience for so many years this was the first time that we got to work in the real world. This work experience though of a short span has thought us so many things like dedication, commitment, interpersonal and communication skills etc which will certainly help us in any future endeavors we take. Whatever I have

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learned at this actual first time experience is going to stay with me for a lifetime.

learned at this actual first time experience is going to stay with me for a lifetime.

One other major skill I learnt from the experience is the importance of building personal relation skills and also the importance of maintaining it. PR relations are one of the major components of a successful person as it helps in all major steps of the professional career. Another major skill I learnt from the banking experience is the importance of understanding the basics of the career one is pursuing. The more a person is acquainted to the basics that his job acquires, the more are the chances that he would succeed in the career.

Patience and time management skill is also one of the major skills I learnt in the internship. Having patience during the pressure of work and also when working with non- cooperative clients is a major skill every professional should have. Time management in also a major component of any management personnel as without the proper management of time which is a major resource, success and efficiency is hard to achieve which shows the lack of competency in a person.

4.7.2

What

kind

of

responsibilities

internship period?

you

have

undertaken

during

the

During my internship in Askari Commercial Bank Limited, I have undertaken the following responsibilities,

I have to follow the rules and regulations which are followed by other employees during working hours. I have to perform punctuality in work. I have to follow the time schedule of the bank. I have to assist the employees of each department in which I worked. I issued cheque book to customers

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Cheque-Book Issuing

Cheque-Book Issuing Bank check books are issued alone for chequing account so much as electric current

Bank check books are issued alone for chequing account so much as electric current account economy account and ASDA history. They are not issued for other fixed and term deposits because of their long term accounts “nature”.

When an account is opened, cheque-book is usually issued the next day, however they too are issued on the same day of opening the account keeping in view the energy requirements the account holder and after that cheque-books are issued whenever customer need cheque-books.

Cheque-books leaves vary with the nature of the account. For example, 25 leaves and 50 leaves chequebook are issued for current and ASDA accounts. Whereas 10 leaves and 25 leaves chequebook are for saving accounts. Usually 25 leaves cheque-books are given only army fund accounts, and 10 leaves cheque-books are handed over to “easily individual’s account, holder”.

4.7.3. How do you think the internship will influence your future career

plans? The skills learned in the internship program will be very useful for

me both in my academics and my career ahead. Initially I was

thinking that

I would

my masters directly but

now

for

go

I

have

understood that working

in

real

organizations

give

will

me

experience that will help me in my academics later.

Further, my aim of becoming a successful banker has been

motivated

as

I

found

the

banking industry challenging and

interesting. This industry is very interactive, creative and a good

platform to use the knowledge learned throughout the years.

For my academics, I could identify which courses would be useful for me to go through to gain a competitive advantage in the industry.

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Also the skills of analyzing balance sheets, analyzing business proposals and project financing proposals will be

Also the skills of analyzing balance sheets, analyzing business proposals and project financing proposals will be a major boost for me in the academic courses I pursue further.

4.7.4. How do you think the internship activities that you carried out are correlated with your classroom knowledge?

Internships provide an opportunity for students to link hypothesis with

pattern and farther serve as a temp labor pond for those agencies that have attached to participate in the internship programs. The department fulfills its mission of preparing students for significant skilled and managerial positions in the community sector. Internship is the capstone experience that provides students with practical, real world experience in a work setting. Ideally, internship will enable interns to:

  • (a) Integrate and use their knowledge and skills from the classroom,

  • (b) Discover where further skill is needed,

  • (c) Take steps to gain that capability under educational supervision, and

  • (d) Become better familiar with the types of work settings in which such

competences can be applied.

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Conclusion of the report Chapter no. 5 5.1. A summary experience. of key conclusions derived from

Conclusion of the report

Chapter no. 5

  • 5.1. A summary experience.

of

key

conclusions

derived

from

the

internship

First and leading, when I joined the internship program I thought that I had a lot of knowledge about the working of the bank. But when I actually started working in the bank I realized that the real practice is very different from the academic learning. What is learned in books and what is practiced are two different things.

I got to learn about Askari Bank Limited, its product details, the strategy with which the bank works and the various business sectors the bank has made investments in. I also got to learn about the various departments in the bank and how they functioned. I was completely unaware about all this and in this short span of time I got to know a lot about the bank.

Looking at the status of the bank I was very excited about joining the internship program. But as the time of starting the job came closer, my excitement shifted to nervousness considering the grandeur of the bank and the thought as to how my supervisors would be. But after my first day at work all my nervousness disappeared as the people at the bank were very friendly and helpful. The working environment at the bank is very healthy.

I always believed that banks in Pakistan are very professional. But after spending few weeks in the bank I realized that it is not as professional as it looks from outside. It is more a casual environment to work in.

I also thought that my HR/PR skills are very good and there is nothing more to

be learned in that aspect but within a few days of working in the bank I realize

that

I

am

not perfect. The way the top level management of the bank would

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communicate was a big surprise and I am certainly very impressed. I got to learn a

communicate was a big surprise and I am certainly very impressed. I got to learn a lot from them though. I actually realized that there are lots to learn in this regards and I am just a beginner. Other things that I learned from my supervisors were communication and interpersonal skills again of what I was quite proud of. I realized that communicating in general day to day life or in college is very different that communication at work. One has to really think before we speak. Words have to be manipulated so that a negative impact is not laid down.

5.2.

General

observations

about

the

sector

in which your internship

company/institution operates.

During my internship in ACBL I have observed different problems which are as under:

Customer Satisfaction

In ACBL customer dealing is well, but during rush hour the customer has to wait for a long time for their turn. It’s quite hard for a new customer or potential customer to get the required information.

Poor record management and filing system

During my internship I pragmatic that filing system of area office is not good. When certain record is needed the employees has to great effort to find it out and a lot of time is exhausted.

Unequal distribution of work

Work is not equally spread. On one hand some employee have to work all the day without relax while some others have nothing to do in any way. This not only creates uncertainty among employees but also throbbing and disturbing for

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overall setup of the bank. And above all it results in disappointment among customers as well.

overall setup of the bank. And above all it results in disappointment among customers as well.

Formal Organization

Formal organization includes the dealings of two or more person, which are carefully strong-minded groups and synchronized towards a given objective. In ACBL, I find a formal organization. The formal organization comes into being when people are able to exchange a few words with one another or ready to act and share a purpose. In this formal organization of ACBL the activities are carried out in a more formal way. In theoretical terms it provides basis for communication with one another but in practice it is not exercised.

Difference between theory and practice

A vast difference exists between theory and practice and ACBL has written procedure but practical work done by employees is a bit different from written procedures.

Bank duty to maintain secrecy

They don’t care about maintaining secrecy, especially during the rush hours. They speak loudly about the account position. In this consider another deficit is in giving the information about the balance on telephone.

Excessive paper work

It is notify that due to the lengthy method of paper work the bank employee are over loaded. They are unable to give proper attention to the consumers due to lengthy procedure and extreme paper work in the bank.

More accounts fewer deposits

ACBL is more interested in increasing its number of account irrespective to its deposit. The main reason behind it is that bank does not provide personalize

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service to the entire account holder and does not get better its excellence and services. Delegation

service to the entire account holder and does not get better its excellence and services.

Delegation of authority

Manager has very partial authority; he has to take the approval from his management authority i-e. In case of advance he has to take the approval of general and regional manager. The other problem is created, when the manager is not present in his office, the customer have to wait for hours.

Job analysis is not effective

Only on the basis of job analysis it can be determined how a right person can be hired, trained, rewarded or promote. Most of the employees are simple graduate and do not have proper background about their job. This creates problems both for organization and for the employees. In ACBL salaries are given according to the seniority and grades. People with simple or compound responsibility are getting the same salary and services.

Lack of specialized training

ACBL does not provide adequate facility of specialized training to their staff. Training is generalized rather than specialized. As the worker finishes his training, he is inducting into a specific field without having great contract of knowledge about the field.

Low Profit Rates

Most of the clients shifted their history to the National economy Center because of the low revenue enhancement of economy deposit discourage the customers. Bank should increase their profit rates to be a focus for customers.

Good job rotation

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The job rotation is present in the ACBL’s Gujrat branch. Employees are placed from one department

The job rotation is present in the ACBL’s Gujrat branch. Employees are placed from one department to another. It increases career opportunities for all the employees. Job rotary is precise crucial for worker especially for those who are newly chosen. The newly chosen should be rotate in all department of the banking in order to get familiar with working of different departments so that when they get a responsible position they have know how of the whole system.

Lack of appreciation

Another very important thing which is ignored in the ACBL is appreciation if the employee on their good performance. If hard work and performance of employees is not predictable and respected they become discourage which results in decline in performance.

PERSONAL MANAGEMENT ANALYSIS

Need for better training program

Need of training is greatly emphasized all around the world. Training of the personnel is part of human resource management. It has been noticed that the training program of ACBL is not sufficient.

The training programmed of the bank should include knowledge domain technique to get better the determination making and interpersonal as will individual needs of the worker both specific to bracing as wellspring as on job to maintain the high standards of religious service.

Developing Managerial Leadership

Leadership

is

a

practical

term

of

noticeable,

clear

on

objective

and

communicating superior control on financial and managerial matter. Manager is not only to blame for their own units in business, but also in people terms i.e.

training, recruiting, criticism handling and taking immediate initiative in crisis

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situation to take major decision affection the future of the bank and banking community. Promotions Promotion

situation to take major decision affection the future of the bank and banking community.

Promotions

Promotion in ACBL is purely on the basis of superiority, so the new young person having high qualification remains behind for quite a lot of time. Thus a better and neutral policy of promotion needs to be followed.

Lack of business communication

There is no proper way to give information to their customer. To avoid this minor disappointment and tension in the mind of client, and lack of the service, it is recommended that the bank should provide brochures etc containing information in details.

Some general information should be located in information notice board on the entrance where client can see it easily or it should be self-attractive.

6.3 SWOT ANALYSIS

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

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

5.2. STRENGTHS

LEADING PRIVATE SECTOR BANK

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Askari commercial bank is the most important private sector bank in the banking network in Pakistan

Askari commercial bank is the most important 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, efficiently and securely.

FULL DAY BANKING

One can avail the benefit of the services provided at the bank till 5:00 P.m. which is highly useful for those customers who find it difficult to leave their officers in the

morning

...

ATM NETWORK

The bank has the largest ATM Network crossways the country. 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 leaning banking. The products and services designed by the bank are specially tailored to the individual needs of its customers.

CUSTOMER ORIENTED BANKING

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The priority banking centers of the bank offer an unmatched where the customer receives highly privileged

The priority banking centers of the bank offer an unmatched where the customer receives highly privileged services in a highly elegant environment. It gives the chance of experiencing new standards in banking. Designed especially for those who appreciate only the supreme things in life, Priority Banking offers the very highest levels of modified banking to match customer’s single rank.

ELECTRONIC BANKING

The revolution in the banking in the form of electronic banking operations have opened avenues of excellent, efficient and quick services saving the time and costs of the customers and fortunately ACBL is among those few banks who are already reaping the benefits of electronic transactions.

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, computer based teller equipment, automatic teller machines, and electronic funds transfers among the others.

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.e. 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, ethics, and environment enjoy good public reputation and are able to reap the benefits in the long run. ACBL management is quite sensitive to this issue.

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WEAKNESSES:

WEAKNESSES: In my opinions these are the points that might be detrimental to the efficiency and

In my opinions these are the points that might be detrimental to the efficiency and

profitability of the bank.

NOT HIGHLY AUTOMATED

The bank has still some of the traditional ways of operations in this advanced technological environment.

MANUAL BOOK-KEEPING

Although the bank has computerized accounting system but, still the bankers use to make their entries in the accounting register.

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. Even though the people have been sacrificed in the new organizational developments, it is becoming clear that the true permanent competitive advantage comes through workforce and how they are managed. ACBL seems to not focusing on this highly critical issue as the job satisfaction level of the employees working at ACBL, was quite low.

LACK OF SPECIALISATION

This famous and useful concept given by Adam Smith in 1776 seems to be missing in the bank. 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. But I think this is not a very good tactics used by the management. Otherwise the situation might be like this ‘Jack of all and master of none.’

CENTRALIZATION

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There is a high degree of centralization in the bank. Almost all the decision- making is

There is a high degree of centralization in the bank. Almost all the decision- making is in the hands of the upper management. But centralization is effective up to a certain level otherwise it becomes inefficient and at times costly too. 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.

LACK OF TRAINING FACILITIES

Presently there is no specific training program arranged for the new recruiters. They have to learn based on their observations and also their mistakes. It takes a bit time for the fresh one to learn the banking the result is huge amount of blunders, mistakes etc. resulting in monetary and non-monetary losses for the bank. There is pressure not only on the new learner but also on the person placed upon with this responsibility.

OPPORTUNITIES

The bank is facing the following threats and opportunities currently:

These are positive external environmental factors effecting the organization.

It deals in bulk business. A large amount of foreign savings is fascinated. Strong potential for growth Steady increase in Customer Deposits Overseas Operations Branches In Remote Areas Islamic Banking Sharp increase in imports and exports

THREATS

High Employees Turnover

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As discussed above, the job satisfaction level of the employee is very low resulting in high

As discussed above, the job satisfaction level of the employee is very low resulting in high turnover, which is bad for any organization as there are huge monetary and non-monetary costs involved in the fresh recruitments.

High charges

The schedules of charges indicate that the fees charged by the bank on the various services it provides are extremely high. It may result in decrease in the number of its existing customers. Furthermore, 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 loss of market share or decrease in the charges resulting in lowering the bank’s income.

Less attractive rate of return

Commercial banks face considerable competition in attracting deposits from individuals or small investors. In contrast, the Govt. of Pakistan national saving scheme offers attractive rates of return (approx. 16 to 18 percent annually) on 10-15 year fixed accounts, which banks find difficult to match.

Stiff Competition

SCB is currently facing strict competition from the foreign banks especially the

American who banks enjoy a good market position. Collectively U.S. banks hold approximately 13 percent of all commercial banks' assets. At present, three American banks are operating in Pakistan: American Express Bank; Bank of America and Citibank.

Less Experienced Staff

Owing to huge turnover of the employees, the no. of experienced and well trained staff is very low. Majority of the staff working in the bank branches is quite young and inexperienced. If the bank failed to bring down its high employees

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turnover, then it would be lacking the most important resources of any organization i.e. the experienced

turnover, then it would be lacking the most important resources of any organization i.e. the experienced staff.

5.3. Recommendations

After spending six weeks at different departments of the bank, interacting with the employees, getting their views, observing the organizational structure and design, I have come up with the following suggestions that in my view, will definitely improve a few weaknesses observed in the bank by me.

Job Training Programs:

The bank should place emphasis on effective training and development

programs for its new as well as existing employees so that these are gradually updated regarding the recent developments in the field of banking.

Team Work:

In any organization we have to work like a group as a whole. The attitude of the one employee can cause tension in the whole environment so it is suggested that they should work as a team and co-operate with each other.

Decentralization:

The higher authorities should form team-based management rather than centralized management. It would result in improvement in uplifting the morale of

the employees. They will be more motivated and involved in all their operations resulting in overall effectiveness of the organization.

Job security:

The employees in the organization should be insured job security so that there is

no pressure on the employees while performing their tasks.

Permanent Hiring:

The fresh hiring should be made permanent so that they are secured for their future.

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Increase number of Branches:

Increase number of Branches: It is necessary for Askari commercial bank to increase the number of

It is necessary for Askari commercial bank to increase the number of branches

and increase number of employees in their branches.

Adoption of Flexible Policies:

The bank should adopt flexible policies especially in the area of recruitment and

promotions.

Revival Charges:

The rate of the various charges provided by the bank should be brought down a bit, as it would result in increase in the number of customers of the bank.

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Chapter no. 6 References and Appendix 6.1. References: 1) <a href=www.askaribank.com.pk 2) Annual report of Askari bank 2009 3) http://www.onlinewbc.gov/docs/finance/fs.ratio 4) Wikipedia the encyclopedia 5) http://en.wikipedia.org/wiki/Commercial_bank Administration 74 masters in Business " id="pdf-obj-73-3" src="pdf-obj-73-3.jpg">

Chapter no. 6 References and Appendix

6.1.

References:

2)

Annual report of Askari bank 2009

3) http://www.onlinewbc.gov/docs/finance/fs.ratio

4) Wikipedia the encyclopedia

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6.2. Appendix

6.2. Appendix Administration 75 masters in Business
6.2. Appendix Administration 75 masters in Business

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