Internship Report

Reasons to Choose Banking Sector

In the current era, Pakistan economy is in the boom. Foreign investment is moving towards the Pakistan. Bank sector is one of the sectors, in which foreign investor has been invested at large scale. Banking is the sector which is must at every industrial and developing area. In the last seven years, many of banks have been incorporated. Askari bank is one of the leading banks in Pakistan who had made the much progress in less time. It was incorporated in 1991 and just in sixteen years, it has been entered in the first class banking sector. Human resource department of the Askari bank limited is one the best department among others. In eight week, it is impossible to learn each and every thing which may be dealt in the branch. Before going to internship, I reviewed and analyzed many of banks for internship but I thought the Askari bank limited suitable. Since the college study, I am studying the banking management as a compulsory subject. And my specialization is finance in M.Com. I have interest in banking sector. That’s why due to all above mentioned reasons, I selected the banking sector and then I selected the Askari bank limited in the banking sector for my internship.

By: MC05126 PUGC


Internship Report

Askari Bank is consistently focused on building long term shareholders’ value, as the primary objective. The strength of its brand name, supported by strategic expansion and the depth of bank’s customer relationships, gives it a strong foundation on which to build and continue growing in the times ahead. The key elements of Askari Bank’s strategy have been to increase its market share, mobilize its resources, develop retail, agriculture and Islamic banking, introduce fresh initiatives for corporate and investment banking, capitalize on new business opportunities and implement various technology initiatives. Askari Bank’s primary focus remains on improved risk management which it considers to be one of the essentials for sustainable success in its business. Based on the risk management guidelines issued by the State Bank of Pakistan (SBP), a risk management strategy has been developed for assessing, and mitigating / controlling risks. Bank’s Retail Banking Group gathered further momentum during 2006 and further increased its share in both business volumes and earnings of the Bank. The Group was also benefited by a dedicated advertising campaign launched during 2005. While new products are being added, the distribution channels are also being increased and currently six customer service centers operate in major cities to serve retail banking customers. We believe that Askari Bank is well poised to increase its share of the retail banking market which still offers opportunities for growth. Agriculture Credit Division of the Bank, strategically headquartered in Lahore, continued to serve its customer base through various branches located in the small to medium sized cities of Punjab and a few in Sindh. Since its launch in 2004, the division has strengthened its operations and has devised various innovative agriculture credit products under the Askari Kissan Agri Finance Program, which gained quick market acceptance and penetration. After expanding its reach to most of the agricultural areas of Punjab, the Division is poised to expand agriculture Askari Bank co-founded the ATM switch, ‘One-Link’, the first ATM switch in Pakistan. This switch is now also linked to M-net, the second switch in the country. As a result, the Bank’s customers can now access their accounts through more than 1,100 online ATMs throughout Pakistan. By: MC05126 PUGC 2

Internship Report

During the year, the Bank launched the first Mobile ATMs in the country. Using wireless GPRS technology, these ‘ATMs on wheels’ can be placed at strategic locations at peak times to serve the customer needs. The Bank’s ‘Data Warehouse’ has become operational and is being fine tuned for providing the management with accurate, up-to-date information enabling them to make timely and prudent decisions. Askari Bank’s progress in the field of Retail Banking was also recognized internationally as the Bank won The Asian Banker award for the 'Best Retail Bank in Pakistan' for 2004, after wining the same award for 2003. Your Bank is the first bank in Pakistan to have won these awards. The Bank won 'The Best Corporate / Institutional Internet Bank in Pakistan' and 'The Best Consumer Internet Bank in Pakistan' awards for 2004, from The Global Finance – an international magazine of high repute. The Bank has also won the 'Bank of First Choice' award for 2005 from the Consumer Association of Pakistan. Askari Bank recognizes its employees as the prime asset and key contributors to the performance of the Bank and places great emphasis on the attraction, development, and motivation of its employees. Operational success requires matching of operational strategies with that of quality human resource. Retention of high quality human resource and maintaining quality recruitment are the fundamentals to good organizational growth. During the year, the compensation package was substantially improved in order to enhance employees’ motivation and loyalty. Our human resource management objective remains to increase the contribution from the employees to the Bank’s value addition while maintaining high ethical and professional standards. For this purpose, various initiatives are being implemented, including improved training and career development, and stimulating employee initiative, innovation, commitment and work efficiency. We are also focusing on developing an organization culture which will enhance employee synergies for achieving excellence in all we do. Understudy report cover the products, field of activities of the organization. It further will provide the information to you about the ratios analysis of the bank and SWOT analysis. This report briefly covers the overall topics which may be the informative for any reader, especially investors. At the end recommendations are also provided to make the better then the current.

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” Importance of Banking We can take bank just like a heart in the economic structure and capital provided by it is like blood in it. If there are no banks. In this way they become most effective partners in the development of that country. These make generation of wealth. To encourage the habit of saving and to mobilize these savings is its basic purpose. He is an intermediary party between the borrowers and lenders. Here some of the definitions are quoted as follows. and include any post office saving banks” According to Gilbert “A bank is a dealer in capital or dealer in money. In the fewer developing countries rate of saving is very low and due to this. drafts.Internship Report Bank!!! There are many definitions of the word “Bank” even the standard encyclopedia and law books find it difficult to state exactly what a Bank is. and withdrawal by cheques. Banks deposit surplus from the public and then advances these surpluses in the form of loans to the industrialists. Although banks do not create new wealth but borrow. According to the Banking Companies Ordinance 1962” Section 5 (b) defines. There have been many attempts by different writers to explain the exact significance of the term “Bank”. The growth of the economy is dependent upon the soundness of its banking system. agriculturists. “Banker means a person transacting the business of accepting. rate of investment and rate of growth is also very low. exchange and consume. Banks play very important role in the economic life of a nation. businessmen and unemployed people under different schemes so that they set up their own business. We can take By: MC05126 PUGC 4 . Thus banks help in capital formation. for the purpose of lending or investment. order of otherwise. then there would be concentration of wealth in few hands and great portion of wealth of a country would be idle. of deposits from the public.

Loan facility provided by bank works as an incentive to the producer to increase production. which is cheaper. Types of Bank It is difficult to classify the Banks according to the functions. it will be destroyed. the organs will remain sound and healthy. As long as the blood is in circulation. Banks provide transfer of payment facility. So if the finance is not provided to agriculture sector or to industrial sector. However main kinds of Banks are as: • • • • • • • • • • • • • • • Central Bank Commercial Bank Agricultural Bank Industrial Bank Co-operative Bank Saving Bank Exchange Bank Mortgage Bank Investment Bank Merchant Bank Consortium Bank School Bank Labor bank Scheduled Bank Non-Scheduled Bank By: MC05126 PUGC 5 . quicker and safe. These facilities are very much helpful for the development of trade and commerce. they perform. If the blood is not provided is not provided to any organ then the organ would become useless.Internship Report bank just like a heart in the economic structure and capital provided by it is like blood in it. Many difficulties in the international payment have been overcome and volume of transactions has been increased.

The large number of banks in the US is an indicator of its geography and regulatory structure. EU banks held the largest share. Japan had 129 banks and 12.5 trillion. The share of US banks also rose. right for the beginning. There is also sufficient evidence to show that during 5th century people were accustomed to use hounds as a credit investment. The US had by far the most banks (7.000 banks grew 15.5% in 2005 to reach a record $60. Loans were given to the people against personal and other securities such as ornaments.Internship Report Size of global banking industry Worldwide assets of the largest 1. This follows a 19. The growth in Europe’s share was mostly at the expense of Japanese banks whose share more than halved during this period from 33% to 13%. from 10% to 14%.000 branches.3% increase in the previous year. resulting in a large number of small to medium sized institutions in its banking system.000) in the world. Most of the remainder was from other Asian and European countries. France. Germany.540 at end-2005) and branches (75. In 2004. 50% at the end of 2005. goods and other immovable properties. up from 38% a decade earlier. Banking in Pakistan By: MC05126 PUGC 6 . and Italy had more than 30.000 branches each—more than double the 15.000 branches in the UK. Evolution of Banking in Indo-Pak Sub Continent The Indian society was quite familiar with the banking.

The banks having their registered offices in Pakistan were transferred to India. Indeed. Following the announcement of the partition plan in June 1947 there was a haste movement on the parts of banks to transfer their funds and accounts across the borders. a phenomenon reflected in the acquisition of local banks by major international banks as well as in the entry of new foreign banks in the country. In an effort to bring about the collapse of the new state by the persecuting an international policy of withdrawal. This dynamism has stimulated the emergence of a new investment cycle in the economy supported by strong credit growth. By 30 th June 1948 the number of schedule banks in Pakistan declined from mere scratch. All this development in the banking sect is the result of untiring efforts of four decades. which stayed. Today there are more than 7000 branches of commercial banks along with an established network of supplementary financial institutions. agriculture and services. Those banks.Internship Report It was very difficult for Pakistan to build up its own Banking system immediately after independence without sufficient resources. Pakistan Economy The strong growth momentum that the Pakistan economy ahs achieved in the last few years has been underpinned by dynamism in industry. The country’s banking sector has risen to the challenge of catering to the needs of a more dynamic economy. the Indian bank offices closed quickly. By: MC05126 PUGC 7 . new growth opportunities I banking have attracted large flows of direct foreign investment in the sector. were considering the winding up of their business.

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A shared network of over 1. It commenced operations on April 1. Lahore and Islamabad Stock Exchanges and its share have consistently remained amongst the highest quoted in the banking sector in Pakistan. 166. 1992. Askari Bank has expanded into a nation-wide presence of 121 branches. 1962. As at December 31. with over 665.585 employees. serviced by its 4. 1991. the bank had equity of Rs. The bank is listed on the Karachi. as defined in the banking companies’ ordinance. and is principally engaged in the business of banking.300 on line ATMs covering all major cities in Pakistan supports the advisory channel for customer service.000 banking customers. as a public limited company. 11. and off-shore banking Unit in Bahrain.0 billion.1 billion and total assets of Rs. including six dedicated Islamic Banking Branches. By: MC05126 PUGC 9 .Internship Report History Askari bank was incorporated in Pakistan on October 9. 2006.

Vehari is to the north of the Sutlej River. but the country's agricultural products include mangoes in the summer and guava and other citrus fruits in the winter. Punjab. Vehari is considered the capital of cotton growing in this part of Pakistan. A headworks of canals is located on this river near Luddan on the Luddan-Vehari canal providing irrigation water to both banks of the river. It is located about 100 kilometers from the regional metropolis of Multan and about 25 kilometers from the southernmost of the five rivers Sutlej in Punjab. and sugarcane farming and processing is also common. "the land of the five rivers" (The word Punjab comes from both the Punjabi language and the Persian languages. One reason may be the special attention of the government towards the development of the region. Pakistan. with dozens of cotton processing factories and cottonseed oil manufacturing plants.Internship Report Askari Bank Limited---In Vehari Vehari is a city in the Vehari District. Askari bank is one of them who have paid special attention in SME sector. but the weather becomes much more pleasant between October and February. Second one we can say that SME sector is demanding the special attraction of banking sector. Competition in banking sector at Vehari is increasing day by day. By: MC05126 PUGC 10 . with the Punjabi "punj" meaning "five" and the Farsi "aab" meaning "water"). Light rainfall leaves the land generally arid and dusty. which includes the upper fringes of the Cholistan Desert. The summer in Vehari is very hot.

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To deliver timely solutions that best meet the customer’s financial needs. To build an enabling environment. 13 By: MC05126 PUGC . products. To explore new avenues for growth and profitability. efficient management information system. policies and procedures. To facilitate alignments of the vision. To provide strategic solutions to mitigate weak areas and to counter threats to profits. with a continuous improvement focus. enhanced delivery capability and high service standards. To provide strategic initiatives and solutions for projects.Internship Report Objectives • • • • • • To achieve sustained growth and profitability in all areas of business. To maximize use of technology t ensure cost effective operations. To build and sustain a high performance culture.. mission. To develop a customer service oriented culture with special emphasis on customer care and convenience. Strategic Planning • • • • To comprehensively plan for the future to ensure sustained growth and profitability. • • • To manage the bank’s portfolio of business to achieve strong and sustainable shareholders returns and to continuously build shareholder value. To effectively manage and mitigate all kinds of risks inherent in the banking business. where employees are motivated to contribute to their full potential. corporate objectives and with the business goals and objectives.

based on the development of right attitudes.Internship Report • • To identify strategic initiatives and opportunities for profit. The intrinsic values. To create and leverage strategic assets and capabilities for competitive advantage. Bank subscribe to a culture of high ethical standards. Values of Askari Bank Limited Integrity is the most valued standard in whatever we do. are: • • • • • Commitment Integrity Fairness Team-work Service Growth in Profit By: MC05126 PUGC 14 . which are the corner stones of our corporate behavior. We understand that our commitment to satisfy customers’ needs must be fulfilled within a professional and ethical framework.

Internship Report Branches Network Basically Askari bank limited has following types of branches: • • • Conventional Islamic Offshore Banking Unit By: MC05126 PUGC 15 .

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e. 1996 and 1997. by achieving the following 'firsts' in Pakistani banking: By: MC05126 PUGC 17 . in the SAARC region. "Askari Bank has won the first position in the "Best Corporate Report Award for the year 2008" by ICAP & ICMAP.Internship Report Credit Rating Awards and Achievements Over the years. and our long-term rating stands at AA. Recently we have once again been given the “Best Retail Bank in Pakistan” by The Asian Banker for the 2nd consecutive year. We won the prestigious “Best Presented Annual Accounts” award from the Institute of Chartered Accountants in Pakistan (ICAP). In 2007 Askari bank won “The Best Consumer Banking Award 2006” for the third consecutive year from the consumer Association of Pakistan. We won the Euro money and Asiamoneyawards as early as 1994. for the Services Sector. Askari Bank continues its success in competition. We have been given the “Best Consumer Internet Bank” award by Global Finance magazine for the years 2002 and 2003. the highest possible credit rating. we have received several awards for the quality of our banking service to individuals and corporate." Others: Askari Bank has also proved its strength as a leading banking sector entity. for the years 2000. In 2008. We have also received ranking prizes during the last six years from the South Asian Federation of Accountants (SAFA) for “The Best Presented Annual Accounts” for the financial sector. 2001and 2002. We have also received the Corporate Excellence Award for the financial sector from the Management Association of Pakistan (MAP) for the years 2002. Askari Bank has been given “The Best Retail Banking Award 2008” by Pakistan Guarantee Export Corporation Ltd. Askari Bank has been given the 1st Consumer Choice Award 2004 for the Commercial Banking Category by the Consumer Association of Pakistan. 2003 and 2004. for the years 2001 and 2002. We have A1+. and The Institute of Cost and Management Accountants in Pakistan (ICAMP). We have been given “The Best Bank in Pakistan” award by Global Finance magazine twice i. for short-term obligations. These include:\ .

Internship Report • • • • • First Bank to offer on-line real-time banking on a country-wide basis. First Bank with a nation-wide ATM network First Bank to offer internet banking services First Bank to offer e-commerce solutions First Bank to introduce mobile ATM By: MC05126 PUGC 18 .

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Internship Report Hierarchy Bank (Grade Wise) By: MC05126 PUGC 20 .

Agricultural Credit Hassan Aziz Rana.Chief Risk Officer S. SVP Riaz Khan Bangash. EVP Country Head.R.Inspection & Audit Hashim Khan Hoti. EVP Country Head. SVP Nauman Bashir Khan.EVP Group Head.Establishment Rehan Mir.Risk Management Khalid Mohammad Khan.Compliance & Data Saleem Anwar. EVP Country Head.Credit Israr Ahmad.EVP CFO Rana Shahid Habib.Treasury & International Banking Agha Ali Imam. EVP Country Head. Management – By: MC05126 PUGC 21 .Internship Report Management – Head Office Shaharyar Ahmad President and CEO M. SEVP Country Head. EVP Group Head. Suhail Rizvi.Islamic Banking Services Vadiyya Asif Khan.Human Resource Country Head. SEVP Group Head.Strategic Planning Farooq Abid Tung.Legal Affairs Muhammad Ehsan Qadir.Consumer Banking Services Mohammad Afir Mian. SVP Country Head. EVP Country Head.Treasury Tahir Aziz. EVP Country Head.Electronic Technology.Corporate Banking Mian Muhammad Sharif Credit Administration Shahid Ahmed Chief Economist & Country Head. SEVP Group Head.International Acting Country Head. SEVP Group Head. Mehkari. SVP Acting Country Head.Operations Abdul Hafeez Butt. EVP Country Head.Corporate & Investment Banking Abdul Jamil Mubbashar. EVP Country Head.Operations Muhammad Ahmad Khan. SVP Country Head.

branch may be contacted directly through by the head office. Region reports to the high authority which is the head office. Branch Hierarchy (Vehari Branch – 0093) By: MC05126 PUGC 22 . Head of each category control his/her own region.Internship Report In the Country Basically management of the Askari bank limited has been divided into the following categories. Branches under this head report to the own region head. How ever in any special case.

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Internship Report Department Askari Bank Limited By: MC05126 PUGC 24 .

But the branch where I have worked as internee has not all departments due to geographical situation. Let the departments explain briefly. Farmer sold there crops in local market. do business locally. As I have mentioned above that Vehari city is an agricultural area. export and import department are not here. So Vehari branch has following departments. Operational / General Banking Departments By: MC05126 PUGC 25 . so investment. There is too much minimum industry. This is.Internship Report There are various departments in the Askari bank limited.

Incharge department. Mr. who is the branch manager. it issues the ATM Card and get the application for Credit Cards. Account Opening Department: This is the department who deal the new clients of the bank. CDR and NDR. It is further divided into the following departments. Opening the account is the main duty of this department. Mr. It deals in the lockers. Mr. Imarn. • • • • Mr. It issues the RTC. It issues the Cheque Book. Khubaib Shah. Following are the persons who are responsible for the work in this department. M. Features: • • • • • • It opens the account of all type of clients.Internship Report This is the section which deals with the general public who make the transaction daily bases. Liaqat By: MC05126 PUGC 26 . TDR. Any other relevant assigned duty by high authority. Muhammad Aslam. Operational Manager.

These employees clear the instruments like checks etc.Internship Report Clearance Department This department is for clearing locally.. Features • • It has the responsibility to clear all the instruments have been represented by the clients in the bank for collection. How national bank record to checks: My brother was doing internship in national bank at that time when I was doing internship in askari bank one day I go to with him in national bank and learned how they record to the checks which is came from different bank the register in which they record the format of that is following Check number Drawee’s name bank UBL PUNJAB RSB After from all this procedure “AVP”of national bank prepare “fan code” in fan code all the check amount of one bank recorded and totaled and then stapled with checks. It has the duty to clear OBC and IBC. Representations together twice in a day in national bank clearing house for clearance. By: MC05126 PUGC 27 . It has the following features. Which have been presented by the clients in their banks for collection? Outward and inward clearing is also the responsibility of this department.

Mian Furrukh. Pay order. Features • • • • It remits the money. It clears the OBC and IBC instruments. Muhammad Islam. Incharge Department. By: MC05126 PUGC 28 . Branch Manager. Remittance Department It is the department who works for the clearance of out side the city instruments presented by the clients or any bank’s branch from outside the city. Mr. Khubaib Shah.Internship Report • At the day end present the day summary to high authority. Following are the persons who are responsible for the work in this department. cash Incharge and remittance in charge. Telex Telegram Any other relevant duty assigned by the high authority. Following are the features of this department. Simply it remits the money and does other duties. Manager Operations. prepare the Demand Draft. Mr. • • • Mr.

M. It makes the correspondence with head office and head branches also. Muhammad Aslam. weekly. and annually basis. It makes the correspondence with the head branches also. taxes etc. By: MC05126 PUGC 29 . weekly. who is the branch manager.Internship Report Following are the persons who are responsible for the work in this department. Features • It makes the account statements on daily. monthly. Mr. Account Department this is the department who is responsible for all account statements like as expenses. It has the following features. Incharge Department. This department has the importance. Atif. quarterly and annually basis. monthly. • • • Mr. it prepare the reports on daily. Khubaib Shah. • • It deals in the tax also. quarterly. Mr. Operational Manager.

This department is also collects the charges. Features It deals in cash whether deposited or withdraw by clients or any other walk-in-customer. M. Mr. Muhammad Aslam. Simply In charge of this department is also responsible for maintaining of branch and refreshment in the branch. Khubaib Shah. • • • Mr. It has the responsibility to balance the debit side with credit side at the end of the day. Cash which is deposited by clients or withdraw by clients or deposited or withdraw walk-in-customer. It collects the service charges rendered by the bank to the valuable clients or walk-incustomers. By: MC05126 PUGC 30 . It has the following features. It deals with the cash.Internship Report • In charge of this department also is the in charge of all labor type employees. Mr. Cash Department This department simply is the backbone of any branch. Atif. who is the branch manager. Incharge Account Department. It must to balance the debit side with credit side at the end of the day. Operational Manager. Following are the persons who are responsible for the work in this department.

Incharge Teller. It has the following features. Muhammad Aslam. Mr.Internship Report Bank retain up to six million with the branch. Askari Bank Limited has the contact with American Express. • Foreign amount currency is sent through SWIFT. Hafiz M. Features • • It deals in the foreign currency. M. Muhammad Aslam. who is the branch manager. It has the importance in cross the boundary transactions. Foreign Exchange Department Department which deals with the foreign currency transactions. Teller. Shehbaz. Muhammad Zeeshan. America for cross the boundary transactions. • Mr. excess amount cash Incharge send to the head office. • • • • • Mr. Mr. Following are the persons who are responsible for the work in this department. 31 By: MC05126 PUGC . Mr. Mr. Following are the persons who are responsible for the work in this department. Operational Manager. Asif. Incharge Cash Department. Khubaib Shah. who is the branch manager. It is directly under the supervision of the branch manager and branch is responsible directly to the treasury department or head branch.

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• •

Mr. Mahmood; Incharge Credit Department. Mr. Muhammad Yasir; Assistant Incharge Department.

Credit Department / Section
We can say to it a section because it has further three departments who deal in the credit. Bank has two major functions. One is depositing and second one is advances. Credit section deals in the advances. It is further divided into three departments in the branch.

Agri-Credit Department
As I have mentioned earlier about the Vehari city in which Askari branch is situated where I have worked as internee. Vehari region basically is a agricultural area. Government and especially is concentrating their attentions in the Agri-reforms in this area. So, it should be clear now that this department who much has the importance. It deals in the advances of both type term and running finances. It advances to the farmers on low rate. It has the following features Features • • • It deals in the Agri-advances. It provides the loans to the farmers on low rate. It deals in both, running and term financing. By: MC05126 PUGC 32

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It is also under the supervision of branch manager directly.

Following are the persons who are responsible for the work in this department. • • • • Mr. Muhammad Aslam; who is the branch manager. Mr. Khubaib Shah; Operational Manager. Mr. Rao Sajid; Incharge Agri-Credit Department. Mr. M. Imran; Assistant Incharge Agri-Credit Department.

General Credit Department
This department deals with the general public who want to borrow from the bank. Credit department of this branch of Askari bank limited provides short term and medium term advances. Simply it provides medium term financing. One can say that this is because of “99% SME lies in Vehari and its surroundings”. has the following features. Features • • • It provides the medium and short term loans. It provides the advances to SME and for housing also. It issues the Letter of Guarantee. It

Following are the persons who are responsible for the work in this department. By: MC05126 PUGC 33

Internship Report

• • • •

Mr. Muhammad Aslam; who is the branch manager. Mr. Khubaib Shah; Operational Manager. Mr. Mahmood; Incharge Credit Department. Mr. M. Yasir; Assistant Incharge Department.

CBSG Department
CBSG stands for consumer banking services group. In the branch it is under the supervision of branch manager otherwise it is directly under the regional branch. This department deals with consumer financing. It provides the loans to fulfillment the personal needs of the borrower. It has the following features. Features • • • It deals in the personal financing. It provides the loans to fulfillment the personal needs of the borrower. It provides the loans against salary.

Following are the persons who are responsible for the work in this department. • • Mr. Muhammad Aslam; who is the branch manager. Ms. Mahgul Magsi; Incharge Department.

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To check and control the flow of online banking. It sends daily all online transaction record to the head office MIS / Data Base Department. Features • • • • To maintain all computer and online banking equipments on modern lines. Mr. Abdul Waheed. For this purpose. Askari bank’s bases are also situated on modern line banking. importance of this type of banking is decreasing day by day as compare to the modern banking.Internship Report Management Information System Department Today is the era of online and internet banking. To initialize and end the day. bank has MIS Department in each branch to avoid any type of problem. By: MC05126 PUGC 35 . Muhammad Aslam. in charge Department. Following are the persons who are responsible for the work in this department. • • Mr. who is the branch manager. Conventional banking although has the importance but with the passage of time. It provides the online and internet banking facilities to the valuable clients. It has the following feature.

although down from the phenomenal growth witnessed last year. SBP announced debt swap option under long term finance export oriented projects (LTFEOP) to provide relief to the borrowers of textile sector who were monetary tightening. sluggish decline in core inflation and large external account deficit. The increase in consumer credit also has an expansionary effected corporate finance. Askari bank limited continued with its growth momentum and posted substantial earnings despite highly competitive business environment. Although monetary tightening helped in reducing inflationary pressures in the economy during fiscal 2006. The primary objective of re-organization By: MC05126 PUGC 36 . maintain the risk profile and achieve greater customer satisfaction. high growth in private sector credit. The slowdown in private sector credit was not broad based and was mainly due to net retirement by sugar and cotton spinning sectors. as the demand for automobile and consumer durables. In a highly competitive environment. during the year under review. During the year. On the operations side. The year and year growth in private sector credit remained strong.Internship Report During 2006. Askari bank’s has taken various initiatives to improve the way of doing business. particularly electronic remained high. The significant ones include re-organization of management structure and technology initiatives. Askari bank limited continually reviewed its policy pertaining to the sector exposures to derive optimum competitive advantage. aggregate demand remained high as indicated by the strong GDP growth.

Corporate Banking This business is managed by a central corporate banking division based at head office Rawalpindi and supported by dedicated marketing and back office units in Karachi.Internship Report is to consolidate and align internal capacities to best serve each business segment. more dedicated and experienced staff is being assigned to this . and fertilizer sectors in order to enhance focus on relationship management and services division. The technology initiatives are aimed to improve the services quality standards and strengthen control environment and to prepare the bank for the future challenges. fuel and energy. The division maintains a diverse portfolio and primarily offers structured financing solutions to cater for the business needs of its clients. Lahore and Rawalpindi. corporate banking further expanded its customer base and new relationships were established in telecommunications sector. During 2006. By: MC05126 PUGC 37 quality. The corporate banking will continue to play a major role in loan syndications and structured financing transactions with the objective of providing a range of corporate banking solutions to its valued clients.

Dedicated relationship managers for each of our corporate clients ensure your satisfaction. debt / capital markets. which futures. The business is managed by a team of professionals who understand your requirements and can firmly stand by your side. some of which include: • • • • • • • • • Working Capital Facilities Term Loans Structured Trade Finance Facilities Letters of Guarantee Letters of Credit Fund Transfers / Remittances Bill Discounting Export Financing Receivable Discounting Investment Banking The investment banking activity mainly covers.Internship Report Corporate Banking Division (CBD) CBD is your long-term business partner that is geared to help you in meeting your business growth objectives. based at Karachi. advisory services and trading (both equities and bonds). By: MC05126 PUGC 38 . include and equity continuous portfolios funding banking segregated into trading. Our relationship oriented outlook focuses upon providing a complete array of tailored financing solutions. investment and Investment participated in various debt and capital raising instruments during the year. that are practical and cost effective. system. This division also offers advisory and loan syndication services. which is our top priority. Equity market transactions are handled by capital market desk.

executing and distributing all forms of investment banking transactions ranging from syndicated loans to complex structured and project financing transactions. and Commercial Paper Underwritings Capital Market Hybrid Products Consumer Banking Services During 2006. with world-class skills.Internship Report Investment Banking Division IBD provides value-added. mortgage. personal and business finance as the core By: MC05126 PUGC 39 . specialist services and products through a dedicated team of professionals. to provide customized solutions to help our clients meet their strategic objectives. Consumer financing offers auto. the consumer banking services offered by the bank were reorganized by combining consumer financing business and credit business under one umbrella and were renamed as consumer banking service group. Sukuk Bonds. IBD is responsible for seamlessly originating. Some examples of products offered by IBD include: • • • • • • • • • • • • Strategic Advisory Privatization Advisory M & A Advisory Balance Sheet Restructuring Syndications Project Finance Structured Finance Islamic Finance Private Placements of Debt and Equity Issuance and distribution of Term Finance Certificates.

40 By: MC05126 PUGC . In spite of our constraint on issuing higher denomination of RTCs against restrictions imposed by the Central Bank of Pakistan we have been striving to attain our shares with sizeable portfolio. Valid until encashed. You’re Best Traveling Companion. Also..e. Our financial instruments provide greater financial freedom and security in an unmatched way to our valued customers. Nationwide acceptability. Rupees Travelers Cheque The range of our products and value added services enhances with introduction of Rupee Travelers Cheques (RTCs) launched in March 2002. Karachi (2) and Quetta which are now supported by 73 spokes i. rawalpindi.e. RTC float increased by 55% during 2006. operating form the branches in close proximity of the relevant CBCs. This business grew by 28% during 2006.Internship Report products. Peshawar. Askari Bank offers you its "Rupee Traveler Cheques" eliminating all financial risks while traveling. Askari Commercial Bank Limited has always remained at forefront in introducing innovative and unique products in banking sector. Free Encashment. Easily Transferable. Why Askari Bank's Traveler Cheques? • • • • • • • • • Free Issuance. Plus commission for the Customer at the time of encashment if retained for a specific period. Facility of encashment through clearing.The group is organized on a hub and spokes basis and its hubs i. Lahore. No purchasing limit. So avoid risk of carrying cash through Askari Bank's Rupee Traveler Cheques. the bank’s debit card with the brand name of ASKCARD registered an increase of 25% in the number of cards issued. consumer banking units. Facility of encashment in cash to the purchaser.

The first liability product launched by this unit is showing a remarkable acceptability in the market.079 Million even after lowering down the profit rates due to sufficient liquidity in the market. Safe & Secure due to foreign printing with multiple security features. Extra Features: • • • • • • Free insurance coverage. 10. All other benefits of normal checking account.Internship Report • • • • • Account relationship not mandatory. Askari bank leads the way. which has presently reached at Rs. 1. Value plus Deposits It is also known as VPCD “Value plus Current Deposit Account”. Available in Rs. Partial liquidity offer on all time deposits. No withholding tax on sale or encashment*. Now one cay open Value Plus account while enjoying the flexibility of a normal checking account. Free internet banking facility. The growth of this product is witnessed by its share. Types of Value plus Account: • • • Value Plus Current Account Value Plus Saving Account Value plus Time Deposits. yet again …… with the introduction of Askari bank’s value plus rupee deposit account. 41 By: MC05126 PUGC . Fastest refund procedure in case of loss/theft. High monthly return on saving and time deposits. in an unmatched way.000 Denomination at all branches of Askari Bank. which promise greater financial freedom and security. Free on-line fund transfer facility.

six months or one year. One can avail unlimited opportunities through Askari Bank's Personal Finance. Askari bank’s unmatched service quality. Once a good credit history is established. Partial Liquidity Offer for Time Deposits: Offering to public a truly exciting opportunity to make your investment break new grounds for public. With unmatched finance features in terms of loan amount. Personal Finance Personal Finance is a parameter driven product for catering to the needs of the general public belonging to different segments. Askari Bank’s Personal Finance makes sure that you get the most out of By: MC05126 PUGC 42 . Askari Bank's Personal Finance makes sure that one gets the most out of his/her loan. three. The investment will be held in blocks of Rs. the door to opportunity opens much wider.000 each. Upon maturity you have the freedom of either booking your time deposit for tenure of your choice. payback period and most affordable monthly installments.000 in a value plus time deposit for a choice tenure i. or let the bank roll it over automatically for a like period. 25. payback period and most affordable monthly installments. One of the quickest approval processes around One can avail unlimited opportunities through Askari Bank’s Personal Finance. you have the flexibility of encashed the blocks that you want. All any one have to do is to invest a minimum deposit of Rs.e. The un-encashed blocks will continue at the same maturity and return ……… and yet you do not lose the share of profit on the encashed blocks. 25.Internship Report • • Facility for issuance of debit / supplementary cards. without touching the remaining investment. In case you wish to partially withdraw some amount from your investment. With unmatched financing features in terms of loan amount.

10. Product Featuring: Borrower: Facility: Financing Limits: Resident Pakistani Nationals. choose the right options and call us now to enquire about your entitlement amount and exclusive service. 500. (Clean) Maximum upto Rs. At Askari bank we make every effort to serve our customers with care. 500. Askari Bank has more ways to serve you than ever before. your cash flow and your ability to take advantage of personal or business opportunities. Minimum gross monthly income of Rs. (Secured) Tenor: Maximum upto 5 Years Repayment: Monthly Installments Markup Rates: Competitive Servicing: Available at all Askari Bank branches Balance Transfer Facility: Available Eligibility to Apply: Age: Income: Financing Limits: Employment: Between 21 to 65 years. When you are working towards your financial goals.only. The right borrowing options can improve your savings. 1 Million. Employed: As per current schedule of charges. under Personal Finance scheme. (Clean) a) Salaried: Minimum length of confirmed service with present employer is 6 months with a total length of 1 year b) Self Charges/Fees: service. Not restricted to new financing. No matter what your need is. how you borrow can be just as important as how you invest.000/. Term Finance Maximum upto Rs.000/. So. we offer extended facilities.000/. Maximum upto Rs. Minimum 1 year in business.Internship Report your loan. which are: Balance Transfer Facility: By: MC05126 PUGC 43 .

We have joined hands with various Electronic Companies for sale.Internship Report • It gives the customer the opportunity to pay off his/her outstanding dues on their credit cards or other loans at a rate of interest much lower than what one pays on them. while living in it at its rental value. Askari Bank is financing products of these companies. By: MC05126 PUGC 44 . That not only frees up their credit limit. of the domestic appliances against consumer financing. we have also signed agreements with other top manufacturers of automobiles for financing of motorcycles to the general public at most competitive rates. It has been designed for enhancing financing facility initially for employees of corporate companies for purchase/ construction/ renovation of house. Under this scheme. In addition to this. Bank has established relationship with almost all top manufacturers and dealers of: Mortgage Finance Askari "Mortgage Finance" offers the convenience of owning a house of choice. The installment plan has carefully designed to suit both the budget & accommodation requirements. Dream Life (Financing for Consumer Durables): Askari Bank Limited is the financial market player in delivering quality service to customers with highly professional standards. which would benefit those people who can only afford to buy home appliances on installments due to limited resources. but cost of servicing the debt is greatly reduced.

SelfMinimum length of 1 years in Employed: business. ACBL is providing loans to small and medium size business enterprises under Askari Bank's Business Finance Scheme. Owning a home for oneself still remains an exclusive dream for many. Askari Bank has made the realization of your dream to have a house of your very own possible.Internship Report Ever since the inception of life. Product Featuring: Borrower: Financing Limits: Tenor: Repayment: Prime Security: Markup Rates: Servicing: Balance Transfer Facility: Balance Transfer Facility: Resident Pakistani Nationals. which enables business community to receive the financing required by them based on By: MC05126 PUGC 45 . Askari mortgage finance enables you to pursue your goal without any problems. Competitive Available at all Askari Bank Branches Available Available. Mortgage of property.only and a permanent employee with atleast 2 years of b) Charges/Fees: service including present employer. Business Finance In pursuance of the National objectives to revive the economy of the country. a) Salaried: Minimum gross monthly income of Rs. Monthly Installments. Whether you plan to build a house. 30 Million. Our goal is to offer a loan. shelter has been rated among the primary needs of mankind.000/.20. tailor made to your requirements or buy a constructed house. Maximum upto 20 years. As per current schedule of charges. Maximum upto Rs. Eligibility to Apply: Age: Income: Between 21 to 65 years.

Mode of Financing: Running Finance: One year line of credit Repayment: (renewable). Our valued customers can enjoy the convenience of getting financing on attractive terms with the minimum processing turnaround time. Balance TransferAvailable Facility: Eligibility to Apply: Age: 21 to 65 Years.0 Million Maximum upto Rs. Servicing: Available at all Askari Bank Branches.. through equitable/token mortgage. Running Finance: Monthly debt servicing on the outstanding balance. Running Finance/Term Finance. Now you can stop worrying about your daily cash requirements. to enhance your financial resources By: MC05126 PUGC 46 . Borrowers: Resident Pakistani Nationals. and start enjoying our unique Askari Business Finance facility. Don't wait act now.. Markup Rates: Competitive. You always wanted to put in that extra money into your business. 500. Product Featuring: Borrower: Facility: Financing Limits: Primary Security: Resident Pakistani Nationals. (Clean) Employment: Minimum one year's business or professional Charge/Fees: experience in the present business As per current Schedule of charges Enjoy the convenience of most attractive financing with minimum loan approval turnaround time.1. and grow!.000/.50.Internship Report their cash flows. which makes it grow.0 Million Residential & Commercial / Built up Properly & Land. Maximum upto Rs. Available up to 60% of the assessed market value of your residential property. Business Requirements:Maximum up to Rs.

Internship Report

Smart Cash
This personal line of credit would be set up with a specified credit limit up to Rs. 500,000/Product Featuring: Borrower: Facility: Financing Limits: Tenor: Repayment: Resident Pakistani Nationals Personal Line of Credit. Maximum upto Rs.


Maximum upto Rs. 1 Million (Secured) One year (renewable). Monthly debt servicing on the outstanding

balance. Markup Rates: Competitive. Servicing: Available at all Askari Bank Branches Balance Transfer Available. Facility: Eligibility to Apply: Age: Between 21 to 65 Years. Income: Minimum gross monthly income of Rs. 25,000/- only. Employment: a) Salaried: Minimum length of confirmed service with present employer is six months with a total length of one year service. b) Self Employed: Minimum 1 year in business. (Against security). Charges/Fees:As per current schedule of charges.

Auto Financing
Yet another of our products, “Askar” 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, Ask car offers the best value to our esteemed customers. Askari Bank offers you the most convenient and affordable vehicle financing scheme to help you own your favorite brand new car. By: MC05126 PUGC 47

Internship Report

Product Features:
Borrower: Repayment: Markup Rates: Minimum Income: Charge / Fees: Auto Insurance: Resident Pakistani Nationals Monthly Installments 5 or 6 Competitive Salaried: Rs: 10,000/-, Self Employed Businessman: Rs: 25,000/As Per current Schedule of Charges Mandatory

I learned about askari car leasing from Mr.Shoib who is the Marketing officer he learned us. Mr. Shoib first of all told us that mostly they give car to that persons to whom bank know mean reference base. And their target to lease car in a month is 5 cars. And Mr.Shoib told us different between “Leasing” and “Financing”.

Leasing Defined
A Process by which a firm can obtain the use of certain fixed assets for which it makes the series of contractual, periodic, Tax deductible payments” Actually leasing is a type of mutual agreement where one party enjoys the benefits of certain fixed asset by making contractual payments as rentals against that asset to the other party. In this way lease is a contract in which lessor gives the lessee the right to use an asset for specified period of time in exchange for periodic rent and payments. . In the leasing agreement, lessor agrees to provide equipment or finances to buy the equipment needed by the lessee. The main characteristic of leasing is that it segregates the ownership and possession from use. That is, the lessor keeps legal ownership of the equipment, whereas the lessee keeps the usage and physical possession of the leased asset.

Financing Defined
Financing is basically when you ask a bank (or lender of some sort) for money that you promise to repay. In other words, when you buy a car, if you don't have all the cash for it, the dealer will look for a bank who will finance it for you. Upon approval, the bank will pay the car dealer the money for the car and then they will send you a bill each month. The bank will lend you this money if you agree to pay interest on top of the money lent to you. So, in essence, financing is borrowing money with a promise to repay the money and some additional fee on top of that... Financing is knowed as a means of getting the resources to purchase an item, then paying back the loan in a set time period for a set monthly or weekly fee. In most cases, people turn to financing when buying a car, boat or house, but there are instances when financing may be needed to purchase other necessities. There are many company providing financial services By: MC05126 PUGC 48

Internship Report

online and office. Apply them as per your need. Get Free Loan Quote to compare various company to decide you making the beat option to get financing.

⇒ ⇒ ⇒ ⇒ ⇒ Two passport size Photos Customer ID, Company ID Salary Certificate Business Proof (for business person) Copy of driving license

Down Payment:
Pak Suzuki car All other Local assembled cars 20% 25%

Tenure period ranging from 1 to 5 year

Selection of Car:
⇒ The selection of car made by the customer he settled the dealing with any dealer who must exist in that city in which he want to take loan from askari bank branch. ⇒ If person who want to take car have no experience to of purchasing car then he asked to bank that he deal with dealer and bank deal with dealer and set rate from dealer and then inform to lessor

According to the terms and conditions for taking a vehicle on lease the insurance is mandatory for the client; it is because the vehicle is in the name of the company so it is better for the company to have it fully insured so that in any case, damages and losses can be recovered from the insurance company. the rate of insurance is 4.3% which is charged by the bank to the customer. By: MC05126 PUGC 49

Third Party: The bank set different prices from the third party. if customer did not give payment of car. ⇒ In case of increasing the rate of car dealer informs to the bank and it become the responsibility of bank that it receive from the customer.O for Information Required By Clients ⇒ Tracker: The tracker is installed by the bank not dealer it is the necessary part.Internship Report Problems: ⇒ The main problem in cash down payment is that when bank branch settled 20% cash down payment of any customer but head office can change it from 30% to 40%. Condition if guilty person want to back car: He should contact to bank and then bank claim to that person that he pay to all the installment of car and become the owner of car mean that bargaining to bank not leasing. ⇒ If rate decrease then bank would return to customer by cheque. Askari Debit Card By: MC05126 PUGC 50 . ⇒ Third party expenses is 20000/= if any issue arises by the customer ⇒ Heavy Dependence on H. then bank contact with third party and third party trace to that person who has been taken car at lease when he caught then bank take back car from person and give reward to third party.

50% 5% . Particulars Value Plus Saving Deposits Rs. so that you can have retail transactions with complete peace of mind. comfort.999/Rs. transfer funds. • • • Profit / Markup Rates on Retail Products Rates of Profit Paid to Value Plus A/C Holders & on ABIC Commission being paid to customers on retention of RTC for a period of One Month. convenience and security. withdraw and deposit cash through ATM anywhere. 24. Askari Bank takes pride in announcing launch of "Askari Debit Card". Askari Debit Card means freedom. @ 0.1% of face value of RTC. dine at restaurants.50% 6% 4% 4. pay your utility bills.000/. Askari Debit Card is your new shopping companion which enhances your quality of life by letting you do Rs.Askari Bank's Debit Card.000/. In line with our tradition of innovation.& above Value Plus Time Deposits Three months Six Months One Year Investment Certificates First Month Second Month Third Month Lending Product Rates Particulars Personal Finance Up to 3 Years Up to 5 Years Smart Cash 1 Year (Renewable) Business Finance By: MC05126 PUGC Markup Rates 18% 22% 22% 51 Profit Rates 2.50% 3% 5% 5. anytime. Askari Debit Card is tailored to your shopping needs and is another valuable financial solution reflecting our commitment to build lasting relationship with you. Your Bank enjoys a strategic competitive advantage over all domestic players by virtue of its leadership. large network and technological advancement. 25.Internship Report Askari Bank is committed to provide you innovative and competitive solutions to your banking needs in a more efficient and personalized manner. 10.

Askari Master Card’s rewards program continues to offer attractive features to our valued customers. Today International Division boasts of multifaceted correspondent banking relationships with over 200 Banks in 77 countries around the world thereby improving the capacity of our branches in serving their clients. amongst other benefits. strategic alliances with leading services providers in the market benefit Askari Master Card customer with exclusive travel and leisure facilities. efficient correspondent banking arrangements on global basis. cards in force (CIF) crossed 230K and its loan portfolio increased by 36%. under the Master Card brand. while NPLs remained will within the industry norms. Treasury and International Operations International Division International Division strives to place at the disposal of our branch network. 13% to 15% Credit Cards Despite strong competition. Also. International Division is entrusted to arrange evaluation/approval of exposure limits favoring various local/overseas banks and NonBy: MC05126 PUGC 52 . ensures placement of suitable Credit lines at our disposal by our counter-party banks to facilitate Foreign Trade and Treasury related activities. thereby catering the needs of our client Diaspora.Internship Report 1 Year Mortgage Finance 20 years maximum Auto Financing 1 Year Kibor + 3% to be reviewed on yearly basis 1 Year Kibor + 3% to be reviewed on yearly basis. Alongside. this is made possible through a variety of arrangements with various banks which. Net card issuance increased by 59% during the year. the credit cards business. In short. maintained its growth in all areas of the business.

Internship Report

banking Financial Institutions with whom our Treasury and branches deal on day-to-day basis. Within the context comes the Country exposure, which is managed and monitored at this division, whereas our liaison with State Bank of Pakistan, in respect of Foreign Trade related issues, helps us to provide timely directions and efficient advisory to our branch network. Optimum monitoring of business reciprocity with banks compliments our efforts to manage the business flows and ensure greater profitability and balanced distribution of business amongst our correspondents. In addition and as a part of the ongoing exercise of Know Your Customer (KYC) compliance with regard to our correspondents, International Division carries out regular Due Diligence exercises to ensure that our bank deals only with financial institutions that are able to meet the prescribed standards and criteria. The monetary tightening aimed at reducing inflationary pressures and fostering economic growth was reflected in the money market conditions throughout the year. In order to manage the money market liquidity, SBP used the combination of Overnight Money Market Operations (OMOs) and increased cash reserve requirement. During the year, discount rate was also increased by 50 bps. As a result the overnight rates remained under pressure during most of 2006. Pak Rupee started the year at Rs. 59.81 to a US $ and depreciated to Rs. 60.89 towards the end of 2006. The depreciation of Pak Rupee against US $ was continues and was mainly attributable to deterioration in external account. During 2006, weight average yield of benchmark six months TBs increased by 57 bps (bills per share) to close at 8.81% p.a., while six months KIBOR increased by 161 bps from 8.80% to 10.41%. The intense money market competition placed the Treasury in a demanding position, to offer more innovation in undertaking arbitrage and derivative transactions to maintain, and increase, its share in the overall earnings of the bank. The treasuries operations are effectively structured to measure, manage and mitigate the risk elements associated with the treasury activities, through the use of IT system and enhanced human resource skills, so that the treasury can manage the risk better, and also provide advice and services to the branches and their customers. The bank increased its overall foreign trade business during 2006. 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. By: MC05126 PUGC 53

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Standard settlement instructions for commercial payments through our major correspondents are appended below:

Offshore Banking Unit (OBU)
During the year, Askari bank’s offshore banking unit in Bahrain increased its share of contribution in the overall earnings of the bank. The OBU remains on a constant look out for opportunities on the international scene, which are both profitable and provide the bank with a strategic edge. OBU enhances the Askari bank’s capability in terms of offering a wider range of services to our customer, and also acts as a look-out for new business opportunities and relationships in the international markets.

Credit Department
Askari bank’s funded credit portfolio increased by 16% to close at Rs. 102.73 billion as compared to 23% last year as the bank remained watchful of the impact of growth of risk assets on capital adequacy. A review of the securities held against credit limits reveal that the credit portfolio of the bank is well collateralized, with adequate exposure being covered by securities of liquie nature, such as deposit, trade documents, equity or debt instruments, guarantees from government or financial institutions, etc. during the year, bank’s non-performing advances increased to Rs. 3.6 billion, from Rs. 2.3 billion last year due to further downgrade of certain large exposures. Consequently NPLs as a percentage of gross advances increased from 2.7% to 3.6%. However, despite this increase, the percentage is well within the industry average. During 2006, askari bank made net provisions of Rs. 1,128 million. Also during the year, the method of making general provisions, on credit portfolio other than consumer portfolio, was standardized, as explained in audited finance statements. General provisions against consumer finance portfolio continue to be made in accordance with the guidelines provide in SBP Prudential Regulations of Consumer Finance. The cumulative provisions at the close of 2006 increased to Rs. 3.5 billion. These provisions provide 97% coverage to the total NPLs as compared to 102% last year.

By: MC05126 PUGC


Internship Report

Agriculture Credit Financing
The role of agriculture in Pakistan economy is of pivotal nature. Due to diverse geographical and climatic conditions the country has tremendous potential for growth and development in agriculture. However, adequate and timely By: MC05126 PUGC 55

should have the basic ingredients to provide adequate amount at the right time and in the right form to help farmers in making a productive use of loan funds. A successful credit evaluation system. supplies and knowledge for the overall strength of the farmers who at present suffer from low productivity and financial insecurity. The credit schemes were introduced under the title of “Askari Kissan Agri Finance Program (AKAFP)” with the objective of: • • • • • • • Providing financial assistance to small farmers. Providing means for better access to markets. Repay and borrow at your convenience on revolving credit basis at lowest mark-up rates renewal able after three years. easy terms and conditions. AKAFP ---. Promoting livestock development. therefore. Facilitating effective water management system. Askari bank’s agriculture credit schemes which were launched in June 2004. The modern concept of agricultural credit envisages establishment of an efficient institutional credit system to serve as a package of credit. Encouraging and promoting mechanized farming. Ensuring adequate and timely availability of credit. The program features: • • A broad array of credit lines designed to meet farming requirements. under the umbrella of Agriculture Credit Division continue to be an attractive product for meeting ON farm and OFF farm financial requirements of the farmers.Features The Askari Kissan Agri Finance Program (AKAFP) has been designed to meet ON FARM / OFF FARM credit requirements of farmers on the most convenient. flexible.Internship Report financial assistance to the farmers will improve production potential of agriculture sector in the country. By: MC05126 PUGC 56 . Providing inputs finance for effective crop management.

land improvement and aabpashi. No Pre-adjustment penalties. Poultry. delivery alternatives. medium and long-term loans to the farmers for Crops. Kissan Ever Green Finance By: MC05126 PUGC 57 . installation of milk cooling tanks and purchase of cattle etc. crops and life assurance of borrowers. and risk management. Forestry and Orchids. Loans are also provided for farm mechanization. Dairy farming. Askari bank is working as partner with National Reconstruction Bureau for implementation of e-passbook system with National Reconstruction Bureau and providing platform for integration of the system for the benefit of all stakeholders. transportation. milk collection centers. the growth and performance of the portfolio remained encouraging. and is determined to make its full contribution towards ensuring that Pakistan is a food and fiver surplus country.Internship Report • • • • • • • Convenient repayment terms based on cash flow abilities. Availability of leased Tractors / Transport without Land / Collateral. marketing of agriculture produce. Fisheries. The bank is extending short. loan pricing and strategic presence. New dairy farming schemes were introduced for establishment of model dairy farms. No Hidden Cost. Insurance cover of leased assets. During the period under review. Earn prompt payment Bonuses and reduce financial costs. animals. The bank proactively participated at various provincial and national forums for the development and capacity building for the agriculture sector. storage. Availability of interest free package for inputs and tractors etc. The division remains proactively engaged in evolving policies and procedures for strengthening the credit framework for the benefit of all stakeholders. The number of designated branches for agriculture credit increased from 12 to 46 and customer base by 90% as compared to last year. Askari bank’s Agri business philosophy is in line with SBP strategy for increasing the outreach and flow of agriculture credit coupled with product changes.

otherwise it provides instant finance. • • The mark-up is charged for the actual days the finance is utilized. Camels. The account is farmer friendly which benefits the farmers both ways. The program is designed to help small. Hassle free. Fertilizer & Pesticides etc. prosperity and freedom to the tiller of the land. to the farmer for his agriculture needs. horses etc can no longer keep pace with the demands of present times due to manifold increase in the population. Revolving credit limit as "Ever Green Agri Finance" is available to the farmer against security i. automatic renewal upon adjustment of entire principal amount with markup once in a year. A special cheque book is issued to the farmer. Power in the form of modern technology is therefore the need of the hour. The credit line is sanctioned in the light of available cash flows and input requirements i. medium and large farmers in meeting their short-term input requirements against one time sanction and automatically renewable upto 3 years subject to its stipulated utilization/periodical adjustment. If the account is in credit. mortgaged charge on Agri land through Zari Pass Book.Internship Report Askari Bank has launched this program with the sole motive to provide dignity. To meet this emergent By: MC05126 PUGC 58 . it earns profit. Seeds.e. Profit on credit balances will be paid on half yearly basis as declared by the bank on PLS savings accounts. Kissan Tractor Finance Traditional modes of cultivation via Bullocks.e. Salient Features of the Program are given as: • • • • Farmer opens a profit earning "Askari Ever Green Account" with the branch.

diesel and solar energy units) water management equipments and water channel development etc. Increased use of mechanical means thus provides a ready alternative. sprinkler and drip system etc. which is the lifeblood of arable lands. to overcome the scarcity of water. We can combat the prevalent water scarcity by harnessing more natural resources. which will provide comfort and piece of mind. Askari Bank has started a program for farmers. To avoid traditional / inefficient modes of irrigation and waste of available water. to finance installation of Tube-Wells (electric. good farmer bonus will be available to the borrower in case the loan is repaid as per terms of sanction.Internship Report requirement. Kissan Aabpashi Finance Agriculture farming is impossible without adequate water. Although the facility is available for a period of five years. Salient Features of the Program are: • • • To facilitate the farmer. • • Priority in delivery of tractor will be given by manufacturer as per arrangements with the bank. Salient Features of the Program are: • • • This program has been designed to benefit the owner as well as non-owner farmers. Askari Bank has launched an Askari Kissan Tractor Finance to bring power to the fields. To develop mechanical water resources. Keeping in view the scarcity of water. which will help farmers to make optimum use of limited water resources. The farmer will have privilege of availing non-funded facility at a reduced cost under this program on account of more equity participation. However. 59 By: MC05126 PUGC .. The farmer’s life & tractor will be insured against contingencies.

This will revive / accelerate and supplement the income generating capacity. which normally do not form part of his diet. Kissan Live Stock Development Finance In order to supplement the income of the farmer.e. Poultry and Fisheries without incurring extra expenditure because of availability at his farm. Kissan Farm Mechanization Finance Beside Power at the farm i. the benefits / advantages of power are maximized with the use of Mechanical Support i. meat and eggs etc. Tractor. He will be able to get milk. Goats. It will enhance the repayment capacity of the farmer. Sheep. This will further improve their cash flows to repay their other Loans / Revolving Credit on due date. This program has the added advantage that besides fulfilling his own family’s consumption needs he will be able to market the surplus and earn additional income. modern and improved equipments which essentially complement one another due to their cost effectiveness and time efficiency.. Salient Features of the Program are: • • • The program will provide regular day to day income to the farmer to meet his own consumption and surplus to be marketed.Internship Report • To manage natural / available resources through water management practices. Askari Bank has launched a program enabling the farmer to purchase Milk Animals. Askari Bank has By: MC05126 PUGC 60 .e.

Leasing Companies and Private Agencies have geared their marketing efforts to concentrate on and have mainly captured the urban markets. This adversely affects the freshness. trailer. it is pertinent to mention that a number of Banks. There is no support provided to cater to the transport needs of deserving rural farmer’s community. Improves per acre yield of Agri crops and quality of agriculture produce to get good price in the market. drills & motivators etc. Helps to match / compete with international standards for exportable agriculture produce. due to lack of proper facilities. to take their produce to the market through efficient means of transportation. By: MC05126 PUGC 61 . Conversely. To lower the burden / cost of transportation against hired transport. Salient Features of the Program are: • • • To increase mobility and access of the farmer to the markets.Internship Report launched an Askari Kissan Farm Mechanization Finance for the assistance of the small farmers and provides finance for farm equipment. thresher. they lack mobility to acquire much needed inputs essential for their farming needs. Kissan Farm Transport Finance A grave handicap that afflicts our farmers is their inability. Salient Features of the Program are: • • • Under this program the farmer will get benefit of use of modern agricultural tools. One can safely conclude that if provided with appropriate and speedy transport. implements and equipments which are cost and time effective. Askari Bank true to its commitment has taken the lead to launch Askari Kissan Farm Transport Finance. quality of the product and denies them the desirable Price-Fetching opportunity. To create awareness of market movements in order to obtain maximum price of their produce. the farmer can benefit by enhancing his selling ability and thus increase his income / cash flow.

It is the part of our M. Further expansion is planned with improved capabilities for offering products conforming to the Shariah principles. As every body knows that: "Knowledge without practice is sterile” Internship is the practical experience which is gained during the study. So at the end during summer vacation. Our objective is to put in place an efficient banking system supportive to economic justice and welfare of society in line with Shariah standards. Islamic Banking Services Islamic Banking was launched under the brand 'Askari Islamic Banking'. by opening 6 dedicated Islamic Banking branches in major cities of the country. in the following areas: • • • • • Islamic Corporate Banking Islamic Investment Banking Islamic Trade Finance Islamic General Banking Islamic Consumer Banking Islamic Banking products have been approved by the Bank's Shariah Advisor.Com study. funds and products of Islamic Banking are managed separately from the Conventional Banking side. under supervision of the Shariah Advisor. Askari Islamic Banking opens the doors for Halal banking solutions. it was required to do internship.Internship Report • • This will also supplement the income of the farmer which will ultimately enhance the repayment capacity of the borrower. invested and shared in Halal modes & investments. I By: MC05126 PUGC 62 . Additional income can be generated if used for hired services to the fellow farmers. All funds obtained. in order to meet customer's demand of Shariah Compliant Banking. As per Shariah requirements. A comprehensive range of Islamic Banking products and services is being offered.

which is located in my residential city. the staff of the branch provided me the opportunity to work in the different departments which was in the branch. A person becomes a customer when the bank agrees to open an account. Manager handed me over the charge of Assistant to Accountant. I enjoyed much during the practical experience. All the work which I learned during eight week internship is explained here according to department in which I have worked as internee. manager operation. Account Opening / Deposit Department Customer is a person who has some sort of account. all the staff and employees who cooperated wit me very much. On my first day of Internship. It was almost impossible to work in all the departments within that limited time. I am especially thankful to branch manager.Internship Report selected Askari Bank Limited. for the sake of practical knowledge. By: MC05126 PUGC 63 . either deposit or current or some similar relation. Vehari Branch. But on my request.

bank has introduced various types of deposits schemes that may suit the needs and tastes of a large body of depositors. In order to attract funds. Almost all the operations generate from the deposit department and with due course of time reflect back to the deposit department. The term deposit is highly misleading. "Deposits are the blood of a Bank" Acceptance of deposits is the real source of income of a bank. deposit department has acknowledged its worth as the most important. It may put a small fraction of the currency in the vault as "Reserves" but it will lend most of deposits to some one else or buy an investment. When one brings currency to a bank for "Deposit" the bank does not put the currency in a vault. Like all banks. Deposits department is the backbone of corporate banking. Deposits account can be defined as an account. which is opened to earn interest. which customers of all kinds leave with the banks. like currency in a safe deposit box. In this department. It is not something deposited for safe keeping. Deposit is often used to describe the money. I gain the practical knowledge about opening account. Types of Customers The customers opening current and saving accounts can be categorized as following. Bank deposits are not like that.Internship Report It is contractual agreement between bank and customer after which both concerned parties indulge in a mutually beneficial business relationship. • Individual 64 By: MC05126 PUGC . This department deals with opening current and saving account for its customers and all matters regarding thereof.

There is no restriction that customer cannot draw money before such & such time so we can say there is no time limit. There are various types of accounts which may be opened by any one like as trust.5000/-. some accounts are specific for some specific categories like as Basic Banking Account for low level of income peoples. Limited company. Partnership Company. Minimum balance acceptable by the bank to maintain the account is Rs. club. & there is no main difference between current & saving account except profit. PLS In case of saving accounts. There is no minimum balance requirement by the askari bank limited. In Bank askari bank limited saving a/c is used as current a/c. • • • • • • Limited company. individual …etc. In askari bank limited. Following are the types of which I filled the accounts. account holder gets profit. first of all the customers have to fill a form prescribed by the bank. Introducer should be the person who has any account with bank. partnership firm. Types of Accounts Current Account • • • Current A/c is basically used to meet the daily transactions. The person is required to bring some reference or introduction for opening the account. society or association joint and sole proprietorship can open this account. No interest is paid on current accounts In case of current a/c customers can draw money at any time when customer needs it.Internship Report • • • • • Firm Company Trust Staff Others Opening Accounts In order to open an account. joint & sole proprietorship can open this account. By: MC05126 PUGC 65 .

Evidence of profession is required. 1000. when a customer wants to open an account. which is necessary to be known by the bank. If balance is below 10000 or no transaction has been made by the client within six months then some charges are deducted by the bank. It is just like as C. amount can be withdrawal or deposited. It is opened by Rs. the bank officer gives him an application form.B. Minimum balance requirement is Rs. No profit is given on these accounts and no restriction as per the minimum balance required.2500. 2½% zakat is deducted at 1st Ramazan Basic Banking Account (BBA): • • • • • • • • It is special type of account. Foreign Currency Current Accounts In these accounts depositors can deposit a sum of money in any of the above-mentioned currencies. According to my practice in bank. Two times by Cheque or cash. are requirements of the application form. It is opened for low salary / income persons. All information. The depositor can also withdraw any amount subject to he availability of the amount. Form also requires the essential documents to be attached by the customer. Infinite transactions can be made by ATM cards in this account but upto the specified amount by the SBP. 10000. No zakat is deducted. Required Documents By: MC05126 PUGC 66 . The profit is given to the customers at minimum balance during the month.Internship Report • • • • • Balance acceptable by the bank to open this account is Rs. Account nature.

Currency of account Nature of Business Introducer’s Name. By: MC05126 PUGC 67 .Internship Report • • • • • • • • • • • • • Basically following information is required to open an account: Title of Account Full Name of Applicant Occupation Address Telephone No. Then in order to find out whether he is a true introducer or not. Address & Signatures Special instruction regarding the account Initial Amount of the Deposit Signature of the applicant Reference’s Signature and name Some important information regarding introducer e.g. the name and account number of the introducer is written on the form. There are different requirements for different types of accounts and accountholders. a letter is sent to him thanking him for this introduction so that anything wrong may come into notice.

Internship Report Other Activities in This Department By: MC05126 PUGC 68 .

• • • • ten. The account number for which the cheque book is issued and the number of leaves are also recorded. This slip is duly filled and singed by the customer. The cheque book also carries a requisition slip for the issuance of the new cheque book. there are lot of activities which performed this. The signature of the customer is verified by the bank and new cheque book is issued to the customer and serial numbers of the cheque are duly entered in the book of the bank. account opening is the main functions and the functions which I am going to explain here are the secondary functions. One cheque in each cheque book is pasted for issuance of new cheque book. That’s why it is said the backbone of the bank. In askari bank limited. Beside this. Bank deduct the charges five rupees per leave from the customer’s account. In large branches.Internship Report Open the account is not only the job of account opening department. Along with the signature. Issuance of Cheque Book During my period of internship. I observed that when an account is opened then a cheque is issued to the customer for drawing his money at per rules. twenty five. A cheque book contains. The officer keeps and maintains the cheque book register Cheque book inventory and cheque books issued are recorded in this register. fifty or Hundred leaves. If client fails to present this cheque then Rs. person should also write his full name & address. Following procedure is adopting for the issuance of cheque. these activities are performed by other department except “ISSUANCE OF CHEQUE BOOK”. 200 fine along with five rupees per leave are deducted form the client’s account for issuance new cheque book Rupees Traveler Cheque: By: MC05126 PUGC 69 .

It is convenient to carry and save. It is issued against two percent down payment of the contract amount. Askari bank issues one RTC of Rs. is the alternative for paper currency. • • • First fill the form then submit the cash to the cashier. Normally government contractors used it.Internship Report Famously know as RTC. It is in nature of current account. • • • • • • • • Cash or cheque is deposited. It means it is used by the clients having transactions with the government. Profit is given on each RTC after two months if According to rule if it is not used. Initial deposit should be in cash for open such type of account Term / Fixed Deposit By: MC05126 PUGC 70 . encashment of RTC can be stopped. Send the RTC to the manager operations for sign. It can be issued to every one whether existing customer or walk-in-customer. 2500. It is refundable. It can be issued against cheque of this branch account. Following are the feature and procedure which I learnt to issue it. 10000. Not necessary to open the account by walk-in-customer. It is issued free and it has no limit. It is against various standard lot size paper currencies like as one RTC is equal to Rs. 10000. One can say it is simply “PAGGRREE” (security). Call Deposit Receipts: Used for government customer. In case of lost. 5000. It has serial number. No profit is made on CDR.

Time period varies from 3 months. The term deposit is renewed automatically on the date of maturity at the SBP's applicable rolling rate of interest. The profit rate varies according to the time period for which it is deposited. the acknowledgement of receipt of money is taken on the letter of authority after its proper identification. In these cases customer are asked to forgo interest. Some important features that I have done in practice are that: • • • No cheque-book is required.Internship Report When customer places money with a banker for a fixed period a deposit is termed as fixed/term/time deposit. It is legally. Minimum is Rs. It is necessary to obtain a duplicate receipt if original is lost because it is so worded that banker undertakes to repay the amount on the presentation of duly discharged receipt. 2500. Lockers By: MC05126 PUGC 71 . It is in standard lots. Deposit receipts issued is called fixed deposit receipts. 6 months to 1 year & up to 5 years. On expiry the depositor presents the deposit receipt (advice) dully stamped and gets the money in cash or transfer to his account. If a deposit receipt is lost or stolen a duplicate receipt is issued after obtaining an indemnity. banker allows them to withdraw their fixed deposit before maturity. Deposits on joint names are payable to conditions agreed at the time of their acceptance. a depositor cannot demand the payment of his fixed deposit before the expiry of the stipulated period but generally to oblige the customer.

The fee which is received from the customer received at the commencement of the year. Locker issuance may be for cash or cheque. One is the key and second is locker number.6375) The amount which is mentioned ahead of the locker it is the amount which is charged from the customer at the commencement of the every year. Insurance is paid by bank.175 Late payment Rs 135 Breaking charges Rs 2650 By: MC05126 PUGC 72 .1800). • • • • • Small Locker (Rs up to1300). customer should be of account holder of this branch and cheque should of this branch.3200) Extra large locker (Rs. Large size locker (Rs. Two numbers are issued. lockers are available in the following forms. 4000) Extra Extra large )Rs.Internship Report It is one of the facilities which is provided by the askari bank limited to its valuable clients. In case of cheque. In askari bank limited. Key deposit Rs 1. Conditioned • • • • • • • Locker can be issued to that person which have account . Medium size locker (Rs.

Clearing is the system by which banks exchange cheques and other negotiable instrument.) Collection Bank Types of Clearing Clearing department deals with the two type of the clearance. whether they are in city or outside the city. Clearing department also plays an important role in performing the activities of the bank.. was the clearance department. The bank accepts the cheque in the clearing department & later on collects these cheques from the bank on which it is drawn through the clearing house Every bank acts in two ways i. which collects the fate of cheque on the behalf of customers. presented by other banks. and secure payment for their clients through clearing house specified time by book entries i. It is the department which is responsible for the clearance of the inward and outward instruments. State Bank of Pakistan. which pays the cheques of his customers. By: MC05126 PUGC 73 . within the specified area. presented for collection by the clients or third party. Paying Bank • • (The bank.Internship Report Clearing Department Second department toward I moved. The customer can get the money in his account at Askari Bank Limited from the cheques drawn on another bank.) (The bank. The basic function of clearing department is to provide services to customers in collection of their cheques of other banks. drawn on each other. Nearly all the banks provide a wide variety of services to their depositors.e.. One valuable service provided is that of clearing. presented by other banks.e.

Internship Report These are stated below: o Outward clearing o Inward clearing O/C Procedure Similarly cheque. So outward clearing results in inflow of funds from paying bank into the clearing account maintained with clearing house increasing the balance in the clearing account. Vehari branch. I have done following process in O/C • • • • • • • • • • • • Receive cheque on the counter and scrutinize it on the following lines Cheque is drawn on a bank that is a member of clearing-house It is deposited in an account that is being maintained in the branch It is in order as to the name of payee. 500 or 16% of instrument amount. Rs. Vehari are known as outward clearance for askari bank limited. whichever is high. Input in system for each bank Prepare clearing schedule Attach the cheques with clearing schedule Handover the instruments to NIFT Stamps • • • Special Crossing Clearing stamp of next working day. Check the pay-in slip and counter foils are correctly filled in. Vehari branch. date. bank and presented to askari bank limited. A/C payee’s only 74 By: MC05126 PUGC . which is drawn on other. deducted from the OBC instrument amount. Detach cheque from pay-in slip Sort out cheque bank wise and branch wise. Put the banks special crossing stamp & clearing stamp of the next day. amount in words and figure and correctly endorsed where required.

That is inward clearance for askari bank limited. it should be re-lodged in the next day clearing after rectification of the mistake. mentioning the reason as appearing on the cheque return memo received from the paying bank Advice the customer about fate Return the cheque to the customer after getting sign on register Collect the cheque return charges as per S. • • • • • • • Receive instrument payable by us in inward clearing. In the case of cheque is returned because of wrong presentation e. Time is the essence of clearing. So inward clearing results in outflow of funds to collecting bands reducing the balance in the clearing account. Scrutinize the cheque on following lines Signature verification Proper presentation The cheque is in order as to the name. If cheque is returned for any other reason then.O. date.. clearing stamp not affixed or wrong discharge given on the cheque etc.g. if not returned unpaid then it is presumed to be paid Check the total number of instrument matches with the clearing schedule and get signature on it. • • • • Enter the cheque in cheque return register.Internship Report • Payee endorsement confirmed Outward Return Cheque returned will be treated as inward cheque. amount in the words and figure 75 By: MC05126 PUGC .C Inward clearing Cheque drawn on askari bank limited and presented to other Banks or handed over to askari bank limited agent in clearing house.

It uses various instruments for remittance purposes. For example • • • • Clearing stamp not affixed Defect in cheques i. post dated cheque Insufficient balance Once the decision is made to return the cheque so deliver to NIFT.Internship Report • • • • • Cheque is not damaged or torn nor post dated or stale. These instruments are: • • OBC IBC Outwards Bills for Collection (OBC): - By: MC05126 PUGC 76 . Collection Clearing department deals with money transfer form on place to another. Display customer account on the screen and observe Sufficient balance Stop payment instruction Cheque is from a series of cheques that has been issued to that particular customer.. alteration.e. correction and cutting have been authenticated with full signature of the customer. Post Cheque • • • Cancel the cheque If limit account refer to the credit department PO. DD to respective department for processing and payment (enter in the DD Payable and Pay order payable register) Inward return Return may be of any reason.

This service includes all activities involved in collecting their claims on customers of the other branches of same bank or of the other banks. this instrument It is in the name of the account holding customer Must not be post dated or stale Must have same amount in words and figure Affix special crossing stamp on the face of instrument Affix OBC stamp on the instrument. is checked and if all things are in order the amount is realized to the relevant bank. if any Must have the same amount in words and figure 77 should have the stamp by the branch i. crossing etc. The banks clear these by sending them to the relevant branch through mail.Internship Report Outward Bill for collection. located outside the clearinghouse area. Procedure • • • • • • • Receive instrument through mail and scrutinize the instrument Must be drawn on a customer’s account Must not be mutilated Must not bear unauthenticated corrections Must not be post dated or stale Must bear regular endorsements. and on pay-in slip Entry in OBC register Write OBC# on the instrument Prepare outward bill for collection schedule Inwards Bills for Collection (IBC): The cheques drawn on the bank when comes from outstation. This cheques confirmed. Procedure • • • • • • • • • Receive instrument. Cheques are entered in inward bills for collection register.e. signature. the cheques drawn on the bank that is out of city. our branch endorsement is By: MC05126 PUGC . The date. it is called inward bills for collection. These cheques are not collected through NIFT.

” I worked in this department and learned that what type instruments is used by the askari bank for transferring of money ? The instruments of remittances are Demand Draft Payment Order IBC OBC Telegraph Transfer      Demand Draft DD (Demand Draft) is a cheque issued by the branch of the bank on behalf of the customer to other branch of the same bank to pay the certain amount to the customer. By providing this service to the customer the bank earns lot of income in the form of service charges.Internship Report • Entry in IBC register Remittance Department The need of remittance is commonly felt in commercial life particularly and in every day life general. it is called remittance. A major function of any banking system is the transfer of funds from one client or one place to another. The Account of person should be in another branch after 3 days he can received money. “When money is transferred from one place to another place or from one country to another country to fulfill the requirements of the customers by the order of the customer. If lost the holder must in personal request the bank in writing for the duplicate. The bank charge nominal commission on issuance of demand draft. The bank if satisfied can issue a duplicate demand draft after getting the indemnity. Parties It involves four parties: - By: MC05126 PUGC 78 .

Beneficiary bank.900. 900000 then bank charge Rs.   Bank serial No. Designated officer then fills in the charges/commission on application form.Internship Report • • • • Beneficiary (in favor of DD is issued). 200 and if the amount is Rs. No. By: MC05126 PUGC 79 . Applicant of DD Applicant’s bank Documentation  A printed application form is provided for filling in completely and signing by the applicant. Designated officer verifies the signature and particulars of Application.  The commission is charged by the bank is different it is depend upon the amount which is sent the mostly which is charged by the bank is Rs.DD Process for Outward Demand Draft through Cash When DD is made at customers request on cash the process goes as under: • • • First customer comes to bank and fills the DD application form.

• • First the Branch receives the Advice from the issuing branch by courier. Three copies of DD are prepared Original goes to customer Office copy retains with designated officer fro reconciliation. signature. debits customer and credits the transit account. entry is made in General Ledger Account.Internship Report • • • • • • • • Customer then deposits the money and gets the application stamped and signed by the cashier. Designated officer after verification on particular of cheque such as balance. One copy sent as an advice to drawee bank. Designated officer then fills in the charges/commission on application form. In Cash department. After Preparing DD two-attorney holder signs it. Following particulars are verified. A cheque is also required of the minimum amount of the DD. Three copies of DD are prepared Original goes to customer Office copy retains with designated officer for reconciliation. Cashier sends the application back to designated officer who makes the DD by debiting Transit. Process for Outward Demand Draft through Account • When an account holder of Bank through his cheque makes DD then first customer comes to bank and fills the DD application form. In next step officer debits the transit and makes DD. 80 By: MC05126 PUGC . figure in words and digits etc. Process for Inward Demand Draft When some other bank draws DD or branch on our branch process goes as under. • • • • • • • • • Designated officer verifies the signature and particulars of Application and verifies its validity with the cheque. date. After Preparing DD two-attorney holder signs it. One copy sent as an advice to drawee bank.

(which ever is high) Pay order Pay order is also a cheque drawn on the bank but it is payable in the same city. (whichever is high) Over Rs. 1___ 100. 100. • • If the customer needs the amount in cash then it is verified that the instrument bears the NIC no of the beneficiary on it The instrument is marked as PAID and amount is paid to customer.000 = .000 = . 225 only. Officer again verifies the particulars and if the DD is received through clearing then designated officer enters it in DD register and giver credit to customer by debiting DD payable.11% or minimum Rs. 1100 only. The bank also charges nominal charges for its issuance.000. (whichever is high) For Rs. In next part the officer through clearing receives the original instrument or non-account holder physically presents the instrument.000 = .06% or minimum Rs. 55 only. By: MC05126 PUGC 81 . The designate officer after verification enters the particulars in DD register and makes the entry in system by giving credit to DD payable.08% or minimum Rs. 1.000.001___ 1.Internship Report • • • • • • • • Name Date Attorney Holders Signature Amount in words and figures Cutting etc. Charges of Demand Draft: • • • For Rs.

Drawer. • • Parties • • • • It involves three parties: Bank. So anybody either he is customer of the bank or not can issue pay order. who issue it. By: MC05126 PUGC 82 . • First of all it is not necessary that the person who wants to issue pay order.Pay order is an instrument through which payment can be made from one bank to another bank within city. Telegraphic Transfer (TT) Telegraphic transfer is a instant transfer o funds.Internship Report Transfer of money through Pay Order Pay order is also called as cashier order. & banker's cheque. Through this method applicant can transfer money from one place to another place through telecommunication. & cheque on services . It the easiest and safe way to transfer the money locally without carrying. Drawee (the person in which favor it is issued) It has the same procedure to issue as DD has. OBC (outward bill collection) In OBC when Askari branch vehari give check to the other branch. should be the customer of the bank. The commission is different. who give application for pay order. IBC (inward bill collection) In IBC when a check came from the other branch to the vehari askari branch and askari branch vehari give amount to person. manager's cheque. Documentation The party who requires a pay order will get a printed application for the bank He will fill it and deposits the amount and commission.

That’s why I did not work in this department but I have gained knowledge about it from teller of askari bank limited. It was allowed to move in the cash In charge officer freely but not go the cash counter cabin. So whatever I learnt learnt from the cash in charge. No one can enter into the cash counter cabin without permission. • • Cash receipts (or receive deposits) Encashment of valid instruments Cash department of askari bank limited is a separate close part covered with glasses.Internship Report Documentation Fill a form with ID card Account should be Cash Department Cash department of askari bank limited is given the complete responsibility of handling all receipts & disbursement of cash. Following are the major functions of the cash dealing department of askari bank limited. Cash Receipt By: MC05126 PUGC 83 . I also worked with the cash in charge who sit behind the cash counter. It is the sensible department. as a result of transaction & near cash items such as traveler cheque etc (when they are issued against cash). No one other than cash department's employee is allowed to enter into that area. even account opening officer for verification of anything else.

should not be crossed whereas crossed cheques are deposited into account. Information required All the details are required regarding date. account number. Cheque must not be crossed The cheque. Procedure The cashier first verifies all the requirements of the cash deposit slip that whether these are fulfilled or not & verifies the amount written in words & figures. By: MC05126 PUGC 84 .Internship Report The depositor uses cheque deposit slip (or cash deposit slip) for depositing the amount. However. which could be presented to the drawee bank for encashment over the counter. Encashment of a Cheque Requirements to Encash a Cheque Following requirements are essential to encash a cheque. and amount in words & figures.. there is no bar on writing material but the cheque written with lead pencil is not honored by the bank in practice because unauthorized alternations can also easily be made are difficult to detect so a cheque should be pen written. The sum of money must be certain A cheque must contain an order to pay a certain sum of money only amount in figures and words must be same. The deposit slip is stamped. Instrument in Writing It must be in writing. title of account & signature of depositors. cash is received & second copy is given to the depositor. No Stop Payment Instruction No stop payment instruction is presented for the account.

Internship Report Drawer’s Signature The document in order to be validly called a cheque must bear the drawer's (account holder) signature or that of his authorized person. so the signature on the cheque must tally with that. Stop Payment Instructions If a customer lost his cheques book he would make stop payment instruction to cash department of askari bank limited stop payment instructions can be made in two ways. At the time of opening an account a customer provides a banker with a specimen of his signatures. • By: MC05126 PUGC Verbal 85 . Sufficient Balance Sufficient balance should be present in the customer's (drawer's) account to encash cheque.

Internship Report • Written The customer informs the cash department on telephone or face-to-face meeting to stop payment. Condition to issue loan: The askari bank has their own criteria to issue loan to farmers and to landlord they don’t issue to that person loan which have not “5”acres land. During my internship I observed that major of the Askari bank limited agriculture products or services have been introduced by the top management itself. If customer make stop payment instruction to the bank and bank make payment to some one else after lodgment of stop payment instruction in the computer. Agriculture loan Commercial Loan: In commercial loan bank issue loan to business people etc. Askari bank limited is one of them who is paying the special attentions on the agriculture sector. Agri-Credit Department Vehari is an agricultural area. Majority of the population depend on the cultivation for living. Bank would become liable for this fault. .nazeer told us that they issue two type of loan 1. And every acre income must be 30000.Nazeer Mr. So 5 acres must be possessed by the person who applies for loan. Government of Punjab is providing the incentives to the farmers for the betterment of the agriculture sector. the in charge name of this department is Mr. Agriculture Loan: This type of loan issue to landlords and farmers. but later a written instruction must be made on a prescribed form. and the interest which is charge by the bank is 18% per acre if the income of that is 30000 By: MC05126 PUGC 86 . These products are not the copied of other banks. Commercial loan 2.

Internship Report And also check that either he is not defaulter already of any bank. NIC number and its copy 3. Yellow is submitted into the tahseel office and green is submitted to bank. Land information 6. How much he pays in one year the documents which attach with agriculture credit      Interoffice memo Financial facility agriculture’s finance Check-off list for agriculture Credit Sanction advice Cash Flow Statement Interoffice memo: It is written by the branch manager to head quarter of askari bank that the borrower submitted his all document and this document also show the credibility of borrower from the branch manger Financial facility agriculture’s finance: In this document bank show that which purpose for borrower use to loan Check-off list for agriculture: This document show the  Repayment capacity of borrower  Assurance of proper utilization of loan Credit Sanction advice: Include  Branch number  NIC By: MC05126 PUGC 87 . Process of issuing loan: 1. Green passbook consist on following information 2. Passport size picture tested with pattwari signatures 4. Name and father name 5. Firstly when person came to bank he should have two pass books one is in green color and second is in yellow color.

Internship Report      Address Purpose of finance Account number Passbook No Land Holding in this day Mr.Nazeer told us when borrower take loan then we check that either he take loan from other bank the document which is send by the “SBP” to askari name is “consumer protection” Name: Father Name Male of birth Female date Self-employed Name& address of Employer Businessman/Professional: businesses NIC Account number Address Detail Overdue (days) Accoun Limit t Positio n As of Presen t Balanc e 30+ 60+ 90+ A Ever green B 30000 0 C 30/06/1 0 D 31974 9 E 0 F 0 G 0 By: MC05126 PUGC 88 .

By: MC05126 PUGC 89 . Following are the products are dealt in the Askari bank limited. not on whole amount. It is sanctioned up to maximum fifty percent of the land or field’s cost price.Internship Report Ever green Account program is started by askari bank that want to promote the framer and account has been opened and issue a passbook to farmer Limit: It show that farmer draw amount from another bank Position as of: It show that Farmer draw amount that date Present Balance: Show that how much balance exist in its Account to which he pay to other bank Over due: It show that either borrower give late installment of loan to other bank then how much late he pay to bank? It is different like 90. It is for multiple purposes used. Askari Kissan Tractor Finance. No such type of requirement that loan must be used to specify subject. Simply purpose of loan borrowing isn’t mentioned. Vehari branch • • Askari Kissan Ever Green Finance. 30 etc. Askari Kissan Ever Green Finance • • • • • It is in nature of running finance. Markup rate is applied to the amount which is withdrawn by the borrower from his account.

5% of total loan amount. Askari bank limited has the contract with the metropolitan insurance co. Down payment Mark up • • Current markup on Agri-term finance is thirteen percent. For five acre or above. Above 65 years-------one percent of total amount. For less than five acre. no evaluation of land is require4d. o Health certificate is required. It is issued for tractor purchasing specifically. thirty percent is down payment.Internship Report Askari Kissan Tractor Finance • • • • • • • It is in nature of term finance. Less 55 years----------0. o Health and medical certified is required. Borrower can not withdraw the amount from his account.5 million. It varies from time to time. Amount of the loan is paid directly to the tractor dealer rather than the borrower. So. Evaluation Survey: • For less then . five percent down payment. By: MC05126 PUGC 90 . 55 to 65 years---------0. Askari bank has the contract with the united insurance. 2% of total loan as insurance is charged. Markup is paid on the whole amount of loan. Insurance • • • • • • Of crops / fields.3% of total loan amount. On life following provisions are made. markup rate on finance is varying with the variation and borrower has to ay according to new markup percentage.

5 million. Lahore for safe custody. Procedure: • • • • • • • • • • • • Application is given to Agri-credit officer. Agriculture credit department send it to RCAD. RGM check it and if found correct then send to agriculture credit department (ACD). ACD send it back to RGM. document sending branch. further procedure is run. All documents along with application are forward to ACO. Now procedure is complete and loan is sanctioned. After all. Later. Aks Shajra.Internship Report • For above . Two attested pictures. RCAD sanction the loan limit and send back to Agri-credit department. These documents along with application are forward to regional manager. 91 By: MC05126 PUGC . Multan. RGM send these documents to Agri-department. document forwarding branch. these documents can be required back by Agri-credit department for removal of any discrepancy or for any other purpose. After completing procedure and requirements. ACO check documents and if found right and able to get the loan. evaluation is required which is made by the evaluation companies. Sometime limit is mentioned by ACO. Lahore. Khusra gardawri Osat bay Four attested photo copies of NIC. Required Documents: • • • • • • • Fard-e-malkiat. documents are sent to RGM. Fard-e-malkiat and attest copies of NIC of two guarantors. approved by the PBA. Application also mentioned type and limit of loan.

Required Documents: • Two attested copies of applicant’ NIC. Lending is made up to fifteen months salary. Features: • • • • • It in nature of running finance. It is in nature of personal finance. In branch it is under the branch manager. By: MC05126 PUGC 92 . Normal markup rate is charged. CBSG Department CBSG stands for consumer banking services group. It is the department which is directly under the divisional office. Following are the features of the financing under this department. Lending is made to the salaried employees without any security. Up to fifteen salaries. It is provided to the salaried employees. just on the salaries.Internship Report • NEC (non-encumbrance certificate). loan is sanctioned. In branch it is under the branch manager. It works directly under the divisional office.

Terminologies: Guarantees When an application for advance cannot offer any tangible security. In one week which I spent in this department. Vehari branch. General Credit Department Credit comes from the Latin word "creditus" which means. As I have told earlier that Vehari is an agricultural area. "to believe. This is the department who provides the loans for the fulfillment of the needs. creditor believes that bank is trustworthy and responsible. the banker may rely on personal guarantees to protect himself against loss on advances or overdraft to the applicant. It sanctioned the business loans. house loans and SME loans also. 93 By: MC05126 PUGC .Internship Report • • • Two attested copies of each two guarantor’ NIC. However I tried lot of to learn about it. Around about 85% to 90% lending is made in agriculture sector by the Askari bank limited." Credit allows us to buy things. I worked in this department for one week. Evidence or voucher of salary. But to obtain credit. Fulfillment of application form. which might not be able to afford all at once by letting us pay over a period of time. there was just one or two case in the process.

or the performance of an engagement. which may rise to a pecuniary liability. • • Agriculturists Seasonal businessmen----etc. By: MC05126 PUGC 94 . The transfer is called a mortgagor. markup is not charged. Running Finance The finance type in which markup is charged on the amount which the borrower use. way of loan. ownership remains with borrower Hypothecation When moveable property/ goods are charged with the amount of debt but neither the ownership nor the possession is passed to the lender.Internship Report Mortgage A mortgage is the transfer of an interest in specific immovable property for the purpose of security the payment of money advanced or to be advanced by. Common users of this type of finance are. And on remaining amount which borrower has in the bank account. and existing or future debt. Pledge A formal contract whereby the borrower agrees to deposit goods/ documents with the creditor on the condition that those will be redelivered to the depositor if the debt is repaid or can be sold by the creditor if the borrower defaults. It is said to be hypothecated. It is irrelevant that whether borrower use the portion of the whole finance amount or whole finance amount. Common Required Documents: The following documentation is made for loan. the transferee a mortgage. Term Finance The finance type in which markup is charged on the whole amount. By virtue of letter of hypothecation bank can take possession of hypothecated goods in case of default of the borrower. After recovery of dues from sale precedes the surplus if any is paid back to the borrower Possession passes to bank.

addresses etc. Legal opinion of the legal advisor of the bank (for the title deeds) Consent letter from the regional office Vetting Certificate (includes consent No. duly signed by the party..) Valuation of property any consultant or any panel of consultants approved by State Bank of Pakistan Original title deed or sale deed Affidavit Mortgage deed Mutation document made Verification of the property by the bank from the competent authority Hypothecation margin of stock) of stock certificate (Running is to be given against 75% • • Letter of hypothecation (duly signed by the party) Note/Promissory Note (Bank prepared itself. Facility whether fund based or no-fund based. 100 put on it) • Agreement of finance mark up (Contract with party for taking mark up on quarterly basis) By: MC05126 PUGC 95 .Internship Report • • • • • • • • • • • • An application or request letter for loan by the customer CSA (credit sanction advice). revenue stamps of Rs.

its operations and attractiveness as an investment.Internship Report Financial Ratios Analysis Financial ratio analysis is the calculation and comparison of ratios which are derived from the information in a company's financial statements. By: MC05126 PUGC 96 . The level and historical trends of these ratios can be used to make inferences about a company's financial condition.

To do this compare your ratios with the average of businesses similar to yours and compare your own ratios for several successive years.Internship Report Ratio Analysis enables the business owner/manager to spot trends in a business and to compare its performance and condition with the average performance of similar businesses in the same industry. Following are the ratios which I calculated and explained here. watching especially for any unfavorable trends that may be starting. Specialized Analysis Earning Asset to Total Asset = Earning Asset / Total Assets * 100 By: MC05126 PUGC 97 .

249.033.588 Result Direction 2006 = 89% 2005 = 130.53% By: MC05126 PUGC 98 .344. there is slightly decrease in 90% 90% 90% 89% 89% 89% 89% 89% 88% 2006 2005 the earning asset but still it is sufficient. in 000’ 2. in 000’ 147.907 90% Earning Asset to Total Asset Comments This ratio shows the activities of the management towards the utilization of resources or assets for return.140.027 * 100 166.120 * 100 145. Return on Earning Asset = Net Profit After Tax / Earning Asset * 100 Year Rs.027 Result Direction 2006 = 1.099.Internship Report Year Rs. It shows the effectiveness of the management as this ratio is showing the higher percentage.974 * 100 147.344. Although in year 2006.

51% R e tu rn o n E arn in g Asse t 2006 2005 there may be some limits which interrupt but there should be higher return on earning assets as compare to current situation.54% 1.027 Result Direction 2006 = 3.53% 1.140.344.996 130.608 * 100 147.55% 1.021. Due to economy situation.120 1. Net Margin to Earning Asset = Net Margin / Earning Asset * 100 Year Rs.619. It is not good. Simply we can say that this is the profitability type ratio.Internship Report 2005 = 2. 1. in 000’ 5.56% 1.56% Comments This ratio shows the return on the earning assets. Here is a decreasing trend in the return on earning asset.8% By: MC05126 PUGC 99 .52% 1.

283 11.120 3.93 118.230 Result Rs.Internship Report 2005 = 4.50% 3. in 000’ 131.839.70% 3.5% Comments This ratio shows the capacity to earn by the spread of markup income over the markup expenses. But still there is need of further improvement. 3.80% 3.140.30% N et M a rg in to E a rn in g Asset 2006 2005 Deposit Time Capital Ratio = Deposit / Equity Year Rs.60% 3.324 130.690 By: MC05126 PUGC 100 . There is increasing trend in the current year as graphical presentation is showing. Direction 2006 = 11.794.053.40% 3.502.

5 This ratio shows the contribution of deposits and capital towards the earning or assets of the financial institution.137 118.Internship Report 2005 = 8.483 13.82 2005 = 96. 107. As it is seems that there is decreasing trend in the deposit time capital ratio but this is due to the contribution of higher capital.839.5 12 11.690 0. It will be preferable if there is an increasing trend in the deposits.813. Loan to Deposit Ratio = Loans / Deposits Year Result Direction Rs.48 D ep osit Tim e C ap ital R atio Comments 13.81 By: MC05126 PUGC 101 .5 11 2006 2005 One can say that company has small deposits to invest or utilize for earning.572.794.149. 13 12.322 131.283 2006 = 0.

239 Direction Remarks Decrease in earning per share due to the economy condition and tuff competition 11. of Shares Year Result Rs. It needs improvement.805 Lo an to D ep o sit R atio 0.82 0.996.Internship Report Comments Higher of this ratio enable the bank to have more return with risky investment through the financial institution.000 By: MC05126 PUGC 102 . 2.23 in the market.249. 2006 = 2.000 200. There is a higher ratio of deposits as compare to loans.433. So bank can interact to the general pubic by a handsome markup and can earn large amount as earning. There is a margin of safety.815 2005 2006 a General Analysis Investors’ Analysis Earning per Share = Net Profit / No. 0.974.021.81 0.

42 Graph 1 3 .80 13.701.35 improvement.5 13 1 2 .3 By: MC05126 PUGC 2005 2006 103 . 2006 = 2005 = 126.42 9.Internship Report 2005 = 150.45 9.23 Direction Remarks There is a decreasing trend in this ratio.5 10 E a rn ig P e r S h a re 2005 2006 Price Earning Ratio = Market Price per Share / Earning per Share Year Result Rs. There is need of 9.35 9.4 9. It is not sufficient.800 13. 104.5 12 1 1 .5 11 1 0 .95 11.45 P rice E arn in g R atio 9.

002 By: MC05126 PUGC 0 2005 2006 104 .012 Dividend Yield Ratio Graph 0.80 .01 0.008 0. 2006 = 2005 = 1.95 Direction Remarks It shows the portion of current earning per common share.004 0.50 126. It is not . 1 104.0095 sufficient as it is showing the decreasing trend.Internship Report Dividend Yield Ratio = Dividend per Share / Market Price per Share Year Result Rs.006 0.012 0.

0 4 0 .0 8 0 .50 13.089 It is low ac compare to last year.23 Direction Remarks It shows the ratio of dividend distributed among the shareholders.1 2 0. 2006 = 2005 = 1.42 0. It may be due to high percentage of retained earning.0 6 0 . 1 11. 1 0 .11 D iv id e n d P a y o u t R a tio Graph 0 .0 2 0 By: MC05126 PUGC 20 05 2 00 6 105 . 0.Internship Report Dividend Payout Ratio = Dividend per Share / Earning per Share Year Result Rs.

50% 90.00% 88.Internship Report Percentage of Retained Earning = 100 – Dividend Payout Ratio Year Result Direction Remarks There is an increasing trend in the ratio. Here increase may be due to expansion.50% P ercentag e o f R etain d E arn in g 2006 2005 By: MC05126 PUGC 106 . Growing companies retained 2006 = 100 – 8.50% 88.11% high percentage of retained earning.9% 91.50% 89.00% 87.00% 89.50% 91. 2005 = 100-11% 89% Graph 91.00% 90.

15 value per share. 11.483.000 200.433. of Shares Year Result Rs.000 150.053.48 B o o k V a lu e P e r S h a re Graph 59 58 57 56 55 54 53 2005 2 00 6 By: MC05126 PUGC 107 .Internship Report Book Value per Share = Total Equity / No. There is a decreasing trend in the book 55.813.800 58.230.701.300 Direction Remarks It shows the value of per share. 2006 = 2005 = 8.

It gives the bird’s eye view of over all performance of the organization like as price earning ratio dividend pay out ratio and earning per share etc. is the gauge of the investors. This may be due to high expenses ratio as compare to last years. This years company’s over all performance needs further attention and improvement.Internship Report Overall Comments This type of analysis is also called market analysis. By: MC05126 PUGC 108 . Monetary policy also effect on the EPS. Earning per share remains lower then the last year.

053. There is a decreasing 20.483 22.974 * 100 11.Internship Report Profitability Ratios Return on Equity = Net Profit After Tax / Equity * 100 Year in 000’ This ratio shows the return on the 2006 = 2.00% 22.230 total equity.36% trend in the return on equity.94% R e tu rn o n E q u ity Graph 23.021.996 * 100 8. Result Direction Remarks 2005 = 2.00% 21.249.00% 2006 2005 Return on Total Assets By: MC05126 PUGC 109 .00% 20.00% 19.813.

40% 1.4% earning).033. There is increasing trend.021.099.39% Graph R etu rn o n Assets 1.39% 2006 2005 Return on Investment By: MC05126 PUGC 110 . Result Direction Remarks 2005 = 2.249.588 assets (which has been utilized for 1.996 * 100 145.974 166.907 1.40% 1.39% 1.Internship Report = Net Profit After Tax / Total Assets * 100 Year in 000’ This ratio shows the return on total 2006 = 2.

49% decreasing trend. Increasing in the profit may increase the market price of share.021. Result Direction Remarks 2005 = 2. Analysis of profit is of vital concern to stockholders since they derive revenue in the form of dividend and others.249.Internship Report = Net Profit After Tax / Investment * 100 Year in 000’ This ratio shows the return on what 2006 = 2.982 1.332.154.48% 1. There is a 1.996 * 100 133. Management use profit as a By: MC05126 PUGC 111 .50% 1.358 you have been investment.51% 1.49% 1.52% 1.47% 2006 2005 Overall Comments Profitability is the ability of the institution to generate earnings.52% R eturn on Investment Graph 1.974 * 100 151.

Internship Report performance measure. From several years. It may be due to economy condition of the country and the monetary policy. Solvency Ratios Debt Ratio By: MC05126 PUGC 112 . Here the over all profitability of the bank remains lower then the previous year. competition environment has been increased in the country. Bank’s management needs further improvement towards the profitability.

93 0. 2006 = 2005 = 136.980.588 Result Rs.Internship Report = Debt / Total Assets Year in 000’ 154.907 0.93 condition.94 Graph 0.099.925 D ebt R atio 2005 2006 Equity Ratio = Equity / Total Assets Year in 000’ Result Rs. Direction Remarks There is a slightly decreasing in the debt ratio. Direction Remarks By: MC05126 PUGC 113 .424 145.935 0. Public can trust on the institution. It shows the better 0.358 166.

064 0.Internship Report This ratio shows the equity ratio in 2006 = 11.230 166. 2005 = 8.099. There 0.061 Graph 0.588 the total asset of an institution.062 0.907 0.068 0.033.483 145. This may be due to the issuance of or bonus of shares.053.980.067 is an increasing trend in the equity ratio.066 0.813.06 0.358 By: MC05126 PUGC Result Rs.058 2005 E q u ity R a tio 2006 Debt to Equity Ratio = Debt / Equity Year in 000’ 154. Direction Remarks Ratio or equity is increasing as compare to company’s debt as it is 114 .

2005 = 136.813.5 13 2 00 5 2 00 6 Overall comments This ratio shows the ability of the firm to meet the debt losses and shows the ratio of debt and equity in the assets towards the earning.Internship Report 2006 = 11.483 15. By: MC05126 PUGC 115 .053. It means bank has been increased equity ratio which is clear from the equity ratio.46 D e b t to E q u ity R a tio Graph 15 .5 14 13 .286.5 15 14 . Company’s debt to equity ratio has been decreased. Solvency ratios show the better picture.424 8. Debt ratio has been increased.02 clear by this ratio. One can say solvency ratio is remaining same this year as the last year but with slight difference.230 14.

This ratio shows 116 .000 By: MC05126 PUGC Result Rs. Direction Remarks There is a decreasing trend the per share operating cash. of Shares Year in 000’ 8.023.Internship Report Cash Flow Ratios Operating Cash per Share = Operating Cash / No.356.

472.269.42 Graph O p e ra tin g C a s h P e r S h a re 1 00 80 60 40 20 0 2005 20 0 6 Operating Cash to Cash Dividend = Operating Cash / Cash Dividend Year in 000’ 8.69 the funds flow per share.Internship Report 2006 = 200.026 223.800 81. 12.472 By: MC05126 PUGC 117 .300 41.43 the operating cash to cash 2006 = dividend. 2005 = 12.246 Result Rs.000 150.269.701. It may be due to the bonus shares this year. Direction Remarks This ratio shows the decreasing trend in 37.356.433.

054 cash flow. Direction Remarks This ratio shows the bank’s ability to cover the total debt with the yearly .02 Graph 50 40 30 20 10 0 O p e ra tin g C a s h to C a s h D iv id e n d 2005 2006 Operating Cash to Total Debt = Operating Cash / Total Debt Year in 000’ 8.285 49.424 .356.269.Internship Report 2005 = 250. 2006 = 2005 = 12.090 118 By: MC05126 PUGC .980.026 154.472 136. There is a decreasing trend in the ratio.286.358 Result Rs.

total debt…. Firms’ operating cash to cash dividend and total debt ability has also been decreased. Solvency ratios show the better trend as the bank has been increased the equity By: MC05126 PUGC 119 . This coming year. bank need more operating cash flows towards earning and to meet the deficiency so that investors and general public can interest in the bank’s policies “In nutshell.06 0.08 0. This ratio shows the organization’s ability to meet any liability in terms of cash.02 0 2005 2006 Overall Comments These types of ratios indicate the flow of cash in an organization towards the arning.Internship Report Operating C ash to Total D ebt Graph 0.04 0. Profitability ratio and cash flow has also been affected. banks ability to earn has been effected.1 0. this years’ cash flow ratios shows the decreasing trend overall as you can see that operating cash per share cash flow has been decreased. Or one can say that how much the organization has ability to need the others like as cash dividend.etc.

So in expansion it needs further capital. This may also be one of the causes of company’s low profit as compare to last year.” Trend Analysis By: MC05126 PUGC 120 .Internship Report ratio as compare to debt this ratio. But other indicators indicate that bank is in growing progress. This low earning is temporarily basis.

27 % Favorable 100% 128.59 % 224.55 % 310.20 % 41.80 % Trend Favorable Mark up Expenses 100% 80.98 % Unfavorable Net Mark up Income 100% 125.15 % 215.37 % Unfavorable 121 By: MC05126 PUGC .30 % 228.74 % 135.25 % 36.43 % 42.41 % 69.78 % 180.75 % 208.44 % 309.96 % 162.22 % 505.11 % 169.09 % Favorable Total Non-Interest Income Total Non Interest 100% 171.Internship Report Horizontal Analysis Profit & Loss Account Description 2003 2004 2005 2006 Speed Direction Mark up Earned 100% 110.

34 % 183.31 % 175.Internship Report Expenses Profit before Tax 100% 149.66 % Favorable Profit after Tax 100% 174.98 % 203.37 % Favorable M ark u Earned p 2006 2005 2004 2003 0% 50% 100% 150% 200% 250% 300% 350% M up Expenses ark 2006 2005 2004 2003 0% 100% 200% 300% 400% 500% 600% Net M ark up Incom e 2006 2005 2004 2003 By: MC05126 0% PUGC 50% 122 100% 150% 200% 250% .97 % 25.33 % 34.48 % 150.

Interest Expenses 2006 2005 2004 2003 0% 50% 100% 150% 200% 250% Profit before Tax 2006 2005 2004 2003 0% 50% 100% 150% 200% By: MC05126 PUGC 123 .Internship Report Total Non .Interest Incom e 2006 2005 2004 2003 0% 50% 100% 150% 200% 250% Total Non .

51 % 169.93 % 174.63 % 169.42% 194.97 % 37.21 % Favorable Total Liability 100% 125.91 % 213.64 % 192.10 % 31.16 % Favorable Lending to Financial Institutions 100% 40.29 % Favorable By: MC05126 PUGC 124 .93 % 176.94 % -1.48 % 39.87 % 94.Internship Report Profit after Tax 2006 2005 2004 2003 0% 50% 100% 150% 200% 250% Balance Sheet Description 2003 2004 2005 2006 Speed Direction Equity & Liabilities 100% 125.45 % 219.67 % 66.48 % 15.13 % Favorable Borrowings 100% 86.66 % Favorable Total Assets 100% 125.67 % 30.90 % Unfavorable Deposits 100% 135.97% Trend Favorable Total Equity 100% 119.48 % 31.45 % 145.01 % 192.27 % 194.50 % 169.

30 % 221.Internship Report Advances 100% 156.50 % 40.49 % 129.01 % 116.50 % 9.19 % 192.83% Favorable Investment 100% 78% Favorable Equity and Liabilities 2006 2005 2004 2003 0% 50% 100% 150% 200% 250% Total Liabilities 2006 2005 2004 2003 0% 50% 100% 150% 200% 250% Total Equity 2006 2005 2004 2003 0% By: MC05126 PUGC 50% 100% 150% 200% 250% 125 .

Internship Report Deposits 2006 2005 2004 2003 0% 50% 100% 150% 200% 250% Borrowing 2006 2005 2004 2003 0% 20% 40% 60% 80% 100% 120% Total Assets 2006 2005 2004 2003 0% By: MC05126 PUGC 50% 100% 150% 200% 250% 126 .

Internship Report Lending to Financial Institutions 2006 2005 2004 2003 0% 50% 100% 150% 200% Advances 2006 2005 2004 2003 0% 50% 100% 150% 200% 250% Investment 2006 2005 2004 2003 0% 20% By: MC05126 PUGC 40% 60% 80% 100% 120% 140% 127 .

86 % -3.72% 100% 55.29 % 46.61 % 16.40 % 41.15% 7.13 % Unfavorable Total Income Non-Interest 23.07% -2.98 % 26.56% 29.03% 32.28% 100% 48.10 % 36.08 % Unfavorable By: MC05126 PUGC 128 .68% 51.86 % 23.87 % 100% 24.54% 17.68 % Favorable Total Non Interest Expenses Profit before Tax Favorable Unfavorable Profit after Tax 27.41 % 35.39 % 44.35 % 42.12 % 83.90 % 75.07 % 26.57 % 17.07% -6.Internship Report Vertical Analysis Profit & Loss Account Description 2003 2004 2005 2006 Speed Direction Mark up Earned Mark up Expenses 100% 33.70% -3.17% Trend Unfavorable Net Mark up Income 66.12% -7.

Internship Report 2003 27.28% Profit after Tax 2006 17.56% Mark up Expenses Net Mark up Income Total Non-Interest Income Total Non Interest Expenses 29.54% 17.57% 55.39% Mark up Expenses Net Mark up Income Total Non-Interest Income Total Non Interest Expenses 26.98% 44.61% Profit before Tax Profit after Tax By: MC05126 PUGC 129 .13% 35.08% 33.07% 16.68% 66.86% 26.40% 41.90% Mark up Expenses Net Mark up Income Total Non-Interest Income Total Non Interest Expenses Profit before Tax 75.29% 23.03% 48.35% 36.41% Profit after Tax 2004 42.86% 24.12% Profit after Tax 2005 23.72% 32.10% 83.68% Profit before Tax 51.87% Mark up Expenses Net Mark up Income Total Non-Interest Income Total Non Interest Expenses Profit before T ax 46.

26 % 16.94 % 79.20% 2.75 % 12.01% 59.Internship Report Balance Sheet Description 2003 2004 2005 2006 Speed Direction Equity & Liabilities Total Equity Total Liability 100% 5.62% 5.24 % -2.2% 81.09 % 100% 5.61% 94.01% -3.93% 100% 6.74 % Favorable Borrowings 18.25% -.41 % 9.72% 7.62 % Favorable Total Assets Lending to Financial Institutions Advances 100% 100% 100% 100% Unfavorable 6.25% Trend Favorable Favorable Deposits 72.39 % 77.57% 2.91% Total Liability Deposits 72.25% 5.73 % 17.09 % 17.05% 59.09% Borrowings By: MC05126 PUGC 130 .44 % 2.87% 100% 6.76% 52.86 % 7.17% 65.91% 94.74% 94.22% .89 % Unfavorable (Liabilities & Equities) 2003 Total Equity 18.66% 93.07% 93.43% Favorable Investment 25.88% -0.

Internship Report (Liabilities & Equities) 2004 Total Equity 12.75% 94.17% 7.01% 6.61% Total Liability Deposits 77.86% 5.26% 59.66% Total Liability Deposits 93. Lending to Institutions Fin.01% Lending to Fin.93% Borrowings (Liabilities & Equities) 2006 Total Equity 9.94% Borrowings 79. Institutions Advances Advances Investment 65.87% Deposits 93.25% Investment By: MC05126 PUGC 131 .20% 6.39% Borrowings (Liabilities & Equities) 2005 Total Equity 7.09% 17.07% Total Liability 81.72% 2.41% (Total Assets) 2004 (Total Assets) 2005 16.

Opportunities.Internship Report (Total Assets) 2006 (Total Assets) 2003 17. Institutions Advances Investment 59.89% 6.76% Lending to Fin. is a strategic planning tool used to evaluate the Strengths.73% 52. The SWOT analysis can serve as an interpretative filter to reduce the information to a manageable quantity of key issues. Institutions Advances 25. The SWOT analysis classifies By: MC05126 PUGC 132 .44% Investment SWOT Analysis.05% Lending to Fin. The internal and external situation analysis can produce a large amount of information. and Threats involved in a project or in a business venture.24% 5. much of which may no be highly relevant. Weaknesses. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective.

Strengths can serve as a foundation for building a competitive advantage. and weaknesses may hinder it. a firm can better leverage its strengths. Many of these changes can be perceived as threats to the market position of existing products and may necessitate a change in product specification or the development of new products in order for the firm to remain competitive. Change in the external environment may be related to: • • • • • • • Customers Competitors Market trends Social changes New technology Economic environment Political regulatory environment …. Factor should be evaluated across the organization.Internship Report the internal aspects of the company as strengths or weaknesses and the external situational factors as opportunities or threats. correct its weaknesses. Internal analysis The internal analysis is a comprehensive evaluation of the internal environment’s potential strengths and weaknesses. External analysis An opportunity is the chance to introduce a new product or service that can generate superior return opportunities can arise when changes occur in the external environment. and deter potentially devastating threats. Etc By: MC05126 PUGC 133 . capitalize on golden opportunities. By understanding these four aspects of its situation.

Designed specially for those who appreciate By: MC05126 PUGC 134 . It is also highly useful who deposits their amounts on daily basis at evening. Customized Solutions: The management of the bank believes in customer focused banking rather than the products oriented banking. Customer oriented banking: The priority banking centers of the bank offer an unmatched where the customer receives highly privileged services in a highly elegant environment. and analyzing the over ratios and other things. The customers of Askari bank can withdraw the cash at anytime and at any place. ATM Network: Bank has the largest ATM network cross the country. Vehari branch.Internship Report After working as internee for eight weeks in the Askari bank limited. even one can deposit the cash with the help of ATM cards. Not only this. This is highly useful for those customers who find it difficult to leave their officers in the morning. Askari bank limited has one link 1300 ATMs across the country. I have come across the following SWOT analysis of Askari bank limited Strengths Full day banking: One can avail the benefit of the services provided at the bank till 5:00 pm. The products and services designed by the bank are specially tailored to the individual needs of its customers. It gives the chance of experiencing new standards in banking.

Electronic Banking: The revolution in the banking in the form of electronic banking operations have opened avenues of excellent. priority banking offers the very high levels of personalized banking to match customer’s unique status. Phone banking: Phone banking services is very attractive for those classes of customers who do not have time to personally come to the bank i. ethics and environment enjoy good public reputation and are able to reap the benefits in the long run. Ethical concern and public image: The organization showing concern for the people.e. By: MC05126 PUGC 135 . efficient and quick services saving the time and costs of the customers and fortunately Askari bank is among those few banks who are already reaping the benefits of electronic transactions. even one can transfer electronically without coming to branch. Not only this.Internship Report only the fines things in life. banking on the phone line thus saving the precious time of the customers. Askari bank management is quite sensitive to this issue.

This is not the tome consuming but expensively also. Low job satisfaction: Understanding and the effective management of the human resource is the most difficult challenge faced not only by the bank but by all the organizations. Lack of specialization: The most and useful concept given by Adam Smith in 1776 seems to be missing in the bank. Even though the people have been sacrificed in the new organizational developments. By: MC05126 PUGC 136 . Dual recoding: Although all the banking at Askari bank is computerized and online but still the bankers use the make their entries in the accounting register. Otherwise the situation might be like this “jack of all and master in none”.Internship Report Weaknesses In my opinion. Askari bank limited seems to not focusing on this highly critical issue as the hob satisfaction level of the employees working at Askari bank limited. was quite loss. But this is not a very good tactics by the management. 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. these are the weaknesses that might be detrimental to the efficiency and profitability of the bank. it is becoming clear that the true lasting competitive advantage comes through human resource and how they are managed.

They have to learn based on their observations and also their mistakes. mistakes etc.Internship Report Centralization: There is a high degree of centralization in the bank. Lack of staff training facilities: Presently there is no specific training program arranged for the new recruiters. The result is the huge amount of blunders. resulting in monetary and non-monetary losses for the bank. It takes a bit time for the fresh one to learn the banking. 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. There is pressure not only on the new learner but also on the person placed upon with this responsibility. By: MC05126 PUGC 137 . But centralization is effective up to a certain level otherwise it becomes inefficient and at times costly too. Almost all the decisionmaking is in the hands of the upper management.

Deals in Bulk Business: Askari bank has been incorporated in 1991. Due to this reason. it has the opportunity to grow. As the Askari bank has high retained earning and trust of people also. Askari Leasing. Organization is retained the earning in large percentage when it is going to expand it business or going to start new business. Strong potential for growth: Askari bank has strong potential for growth. investment banking. Overseas branches: By: MC05126 PUGC 138 . Attraction to foreign investment: Askari bank is the second in Asia who has strong check and balance in its branches. has a greater opportunity to touch the sky. That’s why bad debts of the bank are in very small amount. agriculture banking. Islamic banking. but now it is operating not only in general banking but also in some other large sectors such as.Internship Report Opportunities There are opportunities also exist for the Askari bank limited to capture the market not only from investor’s perspective point of view but also form general public’s point of view. This trust is operating other big projects like as AIMS. etc. Askari Cements. Askari bank getting the trust of foreign investors and this lead to the foreign investment. Following are the main opportunities which Askari bank has in the market. Bank has strong powerful internal audit system. It is the project of Army Welfare Trust. so as it has a big hand to support at bank.

Branches in remote areas: Rural areas have almost 60% percent employment which is higher than the urban ratio of employment. Industry of Pakistan is increasing. Islamic banking will get ten percent market share of the total banking in Pakistan at the start of next decade. according to a newspaper. But yet there is no up to the mark progress. All banks have started the Islamic banking. Askari bank has the opportunity in this sector. It has the opportunity to go in the remote areas.Internship Report Today world has become a global village. These all require the business across the boundary. Sharp increase in imports and exports: Since the new 21st century. economic indicators of Pakistan are showing towards trend. Trust of investors has been developed on Pakistan. Islamic banking: Islamic banking in Pakistan has been started since the decade of 1980. Regions are going to boundary less. Askari bank limited has the opportunity to take the market share in the imports and exports as it has strong worldwide network with the other banks. Askari bank has just one OBU. It has the opportunity to do the business across the boundary. By: MC05126 PUGC 139 . Askari bank has the branches in main cities only.

Higher employee turnover: Loyalty or employee satisfaction is this “if employee has the better opportunity. The result would be either the lost of market share or decrease In the charges resulting in lowering the bank’s income. This leads towards the high expensive for the bank. but Askari bank is facing high employee turn over. Less attractive rate of return: By: MC05126 PUGC 140 . It may result in decrease in the number of its existing customers. High charges: The schedule of charges indicates that the fees charged by the bank on the various services it provides are high then the normal. This thing is also harmful for the bank. this could be very alarming situation for the bank in case some of the competitors grasped the opportunity and lowered its rates. These employees also have the secrets of bank which my employee told to other bank managements. then also prefer to do work in the Askari bank limited”. Askari bank is facing the following major threats from the market today.Internship Report Threats Opportunities come with the threats. Further more. Opportunities for Askari bank have also brought the threats. These threats may be from the competitor or general public or from anyone.

Internship Report Commercial banks face considerable competition in attracting deposits from individuals or small investors. Arrival of new top banks of the world and merger of the banks is increasing the threats for the growing banks like as Askari Bank Limited. Mergers of banks: Today banks are merging by mutually exclusively like as merger of prime bank with ABN. Day by day new brands by other banks is increasing the threats for newly growing banks. By: MC05126 PUGC 141 . of Pakistan national saving scheme offers attractive rate or return on long term fixed accounts. the govt. Lack of innovative products: Although Askari bank is leading to other banks in the Agriculture Banking. In contrast. but still it has the minimum brand of products except agriculture sector. which banks find difficult.

It should be controlled to achieve the targets. I have worked as internee for eight weeks in this bank. It has been grown rapidly. Overall investor’s analysis is sufficient. It has reached to sixteenth year in the current year. Dividend yield ratio has also been decreased. I have made analysis like as SWOT. Earning per share has been decreased by Rs. And expenses of the bank have also been increased. Analysis shows that expenses increasing ratio is higher then the increasing trend of Assets and net margin of the bank.1 billion equity and have supported hand of Army Welfare Trust. I have learnt lot of things which could be possible during eight week and which were operated in that branch.Internship Report Concluding Remarks for Analysis Askari bank limited has been incorporated in 1991. we can say due to this reason askari bank’s retained earning is high. Having more than 11. By: MC05126 PUGC 142 . This year askari bank is going t expand. This thing requires more capital. So. If an organization is going to expand its business or that organization is in the growing process or at initial stages. Financial Ratios. Assets of Askari Bank Limited has been increased. 2. It has been started many of mega projects like as Islamic banking. company retained more retained earning and pays less per share. High expense ratio has decreased the overall profit of the bank. Today it stands in the “A” class banks category due to the successful strategies. One major thing is the dividend yield ratio and dividend payout ratio. Vehari branch. It is establishing its branches not only cross country but also in the remote areas. Following are the points which cover the overall aspects of what I have been analyzed. banking investment and OBU.19 which is approximately less16% then the earning of the last year.

It is due to because bank’s markup rate of the bank on advances is high more than many of other banks.5% in the bank year 2005. Loan to deposit ratio is sufficient. bank has been increased the equity ratio in the total capital. It decreased the debt ratio. Return on earning assets is not much efficient but is sufficient as the bank is in growing process. Net margin can be increased more than current if bank reduce the markup rate slightly. assets and on investment is mix. Return on assets has been increased. Here this ratio is showing the decreasing trend. Effective internal audit is also one of the main causes of the trust of investors on the bank. We can say that it is approximately equal to the last year. in decreasing trend and in increasing trend also. It shows the efficient utilization of the assets towards the earning.8% which was 3.02 which were 15. But it can be more if bank makes the efforts. It is coxcomb By: MC05126 PUGC 143 . it shows the trust of investors in the bank and bank management want to decrease the debt ratio of the bank which might be favorable for the bank. Net margin is the net earning of the bank on the advances. Bank is not introducing the new products. This ratio is favorable for the bank in both cases.Internship Report Return on equity. And it is not marketing the existing products efficiently than other banks are doing. debt ratio is 14.5%. If bank reduce the markup rate then it can give the more advances to the public because due to low markup rate public will borrow from the askari bank limited. Deposit time capital ratio is 11. It shows that management is using the earning resources efficiently.46 in year 2005. I am saying it is because banks main earning is the difference between markup on advances and deposits. Net margin for the bank year 2006 is 3. Although it is sufficient but should be more than the current. In year 2006. In the equity. It is not favorable because deposit of the bank has been reduced by 11. Return on investment still remained the same as last year return on investment. Bank should introduce the new products. But generally it is favorable when it shows the high result.93 percent which is less then the last year. Advances include both advances to the public and to the financial institutions. Earning asset to total asset ratio is 89% which shows the efficient use of the resources towards the earning of the profit. Net margin has been increased from the last year.

It is very coxcomb that askari bank limited has taken the initiative of increasing the salaries of employees. One reason was the long working hours with the salary for officially hours. now almost every organization has the HR Department as every one knows the importance. Today era is the era of efficient HR. OBU. It should increase the Islamic branches cross the country because today people prefers the Islamic banking. It proves that HR Department of the bank is strong and efficient also. askari cement etc. it has the lack of Islamic bank branches. So during my internship. We can say that in this sector bank is taking the steps equal to government. Overall bank’s progressive remained well. By: MC05126 PUGC 144 . askari leasing. Due to which it has to face challenges from the competitors. Banking is growing rapidly.Internship Report that askari bank limited is leading the agriculture banking. It has been contributed towards the economic growth. Satisfied employees will create the satisfied customers and satisfied customers will satisfy the employees. it has been spread in various sectors like as investment. Head of the Agriculture division has introduced the lot schemes and products for the farmers of the country. Just in sixteen years of banking. It has another edge that it has the back hand support of Army Welfare Trust which has many of other projects like as. I observed that employee was not satisfied from their job. Islamic Banking. It has been increased the salaries of employees more than the market demand.

Bank has made progress with rapidly growth but still it has some deficiencies. Askari bank according to me has not adopted the right policies in the current year as its overall progress is below then the last year. bank has taken the steps towards the solution of this dilemma as it has increased its employee’s salaries more then the market demand. By: MC05126 PUGC 145 . Askari bank’s ATMs network is limited and existing network is not working properly.Internship Report Organization’s Dilemma Askari bank has the supporting hand of Army Welfare Trust (AWT) as it is the project of AWT. According to the current news. If bank solves these two quandaries. Debt to equity ratio is favorable but it should insert more investment whether through equity or debts. It should increase the number of branches and should make the efforts towards the increasing of per unit profit. competition in each sector especially is obviously will come. HR Department is not working properly. Employees are not satisfied. As the Pakistani economy is growing up. it will get again the best quality award and “bank of Pakistan”. Major dilemmas of the bank are the HR solution and the strategies which should face the competitors.

Bank should spread its network across the boundary. Deficiencies are point out for the correction. it should accentuate to give advertisements on both print and electronic media. and there is always space for deficiencies. Enhance the network: Although the bank has a network of nationwide branches but it should spread its branch network in the remote areas specially. New product introduction: Bank should introduce the new products and to market its products.Internship Report Recommendations for Improvement Askari Bank Limited is a well-known financial institution in the banking sector. nothing is perfect in the world. Following are recommendations for the management of Askari bank limited to overcome the deficiencies. The state of the art training and development center at Askari Bank Limited By: MC05126 PUGC 146 . HR Department Role: The quality of human resource lies at the center of every organization’s success and no doubt Askari bank Limited is fully aware of the importance of a satisfied and welltrained work force that gives completive advantage but the problem which I have observed is that employees of Vehari Branch don’t have enough training about their products. it is said.

By: MC05126 PUGC 147 . Markup Rate: Today is the era of competition. To compete the competitors. Askari bank should reduce its service charges and increase the rate of return to depositors and reduce the markup rate on advances. Decision Making: Askari bank should give the authority to lower level management or employees like as branch manager to make the decision at sight.Internship Report should arrange workshops and seminars for employees at every level to empower them professionally. It is very coxcomb that Askari bank has increased its employees’ salaries more than demands of the market. It will reduce the cost and time and customer satisfaction level will increase. Due to the new mergers and arrival of world class banks in Pakistan competitive environment is increasing. Satisfy the Employees: To reduce the high turn over of employee. salary package should be increased and extra benefits should be given to the employees as the bank timing has been increased.

Bank has been increased its employees salaries according to market trend. Bank should increase the number of OBU branches and Islamic branches. It has only six Islamic branches till the start By: MC05126 PUGC 148 . Presentation of financial statements stood first since 1997 to 2005. It is to be approved by the zero percent charges written off. Investors even foreign have trust on the bank. Over all progress of the bank remains good and appraisable. it has been grown rapidly.Internship Report Conclusion Askari bank has celebrated its 16th birthday in the summer. These all shows the overall effectiveness of the management not only for earning of profit but in the welfare of employees and of customer’s satisfaction also. It has strong internal audit department as it is the second bank in Asia who has strong check and balance / audit department. it should give the authority to middle level management to make the decision at the spot to make the efficient services. In these sixteen years. Investors can trust in the bank. It has been won the 1st prize of Pakistan banker from the “Asian banker” magazine. It has been contributed towards the growth of economy especially in the agriculture sector.

Overall behavior of the bank and its employees is very good.” By: MC05126 PUGC 149 .Internship Report of year 2007. “According to the current trend and past data. it will grow rapidly and will stand soon at the Pakistan bank.

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