Chapter No.

Introduction:

1.1 History and background

1.2 Business philosophy

1.3Vision and mission goals

1.4 Market standing

1.1 History of Askari Bank Limited:

Incorporated in October 1991, Askari Bank commenced its operations in April 1992, and has
since expanded into a nationwide presence of 150 branches, including 14 dedicated Islamic
Banking branches connected online and supported by a shared network of over 2,670 online
ATMs covering all major cities in Pakistan supports the delivery channels for customer service.
Askari Bank also has an Offshore Banking Unit in Bahrain.
Askari Bank achieved two important milestones during 2016; a one notch improvement in entity rating
to AA+ and crossing the mark of 500 branches. Under the aegis of the Fauji Group since June 2013,
Askari Bank has almost doubled the number of branches across Pakistan. This is a significant step in
actualizing Askari Bank’s vision: ‘to be the Bank of first choice in the region’.

ASKARI BANK is the leading private sector bank in Pakistan, delivering quality service through
innovative technology. In the success story of ASKARI BANK, one of the most important
factors, apart from its dynamic management and prudent approach, is the QUALITY of its
SERVICES, which gives it a great edge over its competitors. ASKARI BANK has always strived
to facilitate its customers by introducing various high quality hi-tech services for the first time in
Pakistan.

Their products and services are as diverse as their market segments. Technology has played a
pivotal role in meeting customer expectations, particularly with respect to the speed and quality
of services.

They have fully automated transaction-processing systems for back-office support. Their branch
network is connected on-line real-time and their customers have access to off-site as well as on-
site ATMs, all over Pakistan. This includes not just establishing and maintaining technology
infrastructure for providing operational support to all units of the Bank, but also encompasses
introducing latest state-of-the-art technology-driven products and service delivery systems, such
as ATM networking, Internet Banking, Mobile ATM, Credit Cards, Debit Card, Prepaid Card,
utility bills payment through ATMs & Internet which have brought about cost-effectiveness,
timesaving and safety.

Askari bank has also achieved another milestone with the launch of Askari Bank Zari Credit
Card. This is the first ever credit card offered to the farmers in Pakistan with complete product
features and service benefits. It aims to meet farmer's production and development needs and to
supplement cash flows, whenever required.

It is also a matter of satisfaction that ASKARI BANK has been the first bank to introduce PTCL
and WAPDA utility bills payment electronically through ATM and Internet on an Online-Real-
Time Basis. For the first time in Pakistan, they have introduced Mobile ATMs to provide
banking facilities at the doorsteps of our customers. Askari bank's mobile ATMs first in the
banking history of Pakistan, now four in number, continue to serve customer needs.

Askari bank remains focused on using technology for improving customer service standards and
expanding the range of products being offered and other technology based solutions.
1.2 Business Philosophy:

The business philosophy definition is the set of principles and beliefs that a company is working
toward to achieve success. Business philosophy of Askari bank is as following:

Communities: They fully recognize their corporate social responsibility and their contributions
to different areas of the social sector are aimed to help improve the quality of life in the Country.

Employees: They strongly believe that the interests of the Bank and the employees are
inseparable. At Askari they try to create a culture where there is mutual trust and respect of each
other. They encourage ownership behavior so that everyone feels responsible for the
performance and reputation of the Bank. They committed to develop and enhance each
employee‟ skills and capabilities through extensive in-house and external training programs and
job rotations. In order to ensure meritocracy, their appraisal system is purely performance based.

Regulators: They firmly believe in regulatory discipline and harmony of our corporate
objectives with regulatory framework. Out business methodologies are designed to ensure
compliance with the directives of all their regulators.

Investors: They believe that the bottom line of any business is creating shareholder value. To
gain their trust and confidence, they believe in providing their investors timely, regular and
reliable information on their activities, structure, financial situation and performance.

Customers: Knowing their customer and needs of the customers is the key to their business
success. Their products and services are as diverse as their market segments. their client
relationship managers are well equipped and well trained to provide the most efficient and
personalized service to the customers. Askari Bank is proud of its pioneering role in providing
the most modern and technologically advanced services to its 984,485 relationships.
1.3 Vision/Mission Statement:

Both the vision and mission statements play an important role in the organization. The vision and
mission statements define the purpose of the organization and instill a sense of belonging and
identity to the employees. This motivates them to work harder in order to achieve success.

Vision:

To be the bank of first choice

Mission:

To be the leading private sector bank in Pakistan with an international presence, delivering
quality service through innovative technology and effective human resource management, in a
modern and progressive organisational culture of meritocracy, maintaining high ethical and
professional standards, while providing enhanced value to all our stakeholders, and contributing
to society.
1.4 Market Standing:

Market standing is the term used in relation to business; it refers to the ranking of a company in
an industry in comparison to its competitors. Market standing also includes awards and
achievements of an organization.

AWARDS AND ACHEIVEMENTS:

Askari Bank continues its success in competition. Recently we have once again been given the
"Best Retail Bank in Pakistan" by The Asian Banker for the 2nd consecutive year. Askari Bank
has been given the 1st Consumer Choice Award 2004 for the Commercial Banking Category by
the Consumer Association of Pakistan. We have also received the Corporate Excellence Award
for the financial sector from the Management Association of Pakistan (MAP) for the years 2002,
2003 and 2004.
They have been given "The Best Bank in Pakistan" award by Global Finance magazine twice ie
for the years 2001 and 2002. We have been given the "Best Consumer Internet Bank" award by
Global Finance magazine for the years 2002 and 2003. They won the Euromoney and
Asiamoney awards as early as 1994, 1996 and 1997.
They have A1+, the highest possible credit rating, for short-term obligations, and our long-term
rating stands at AA. We won the prestigious "Best Presented Annual Accounts" award from the
Institute of Chartered Accountants in Pakistan (ICAP), and The Institute of Cost and
Management Accountants in Pakistan (ICAMP), for the Services Sector, for the years 2000,
2001and 2002.
They have also received ranking prizes during the last six years from the South Asian Federation
of Accountants (SAFA) for "The Best Presented Annual Accounts" for the financial sector, in
the SAARC region. In 2007 Askari bank won "The Best Consumer Banking Award 2006" for
the third consecutive year from the consumer Association of Pakistan. In 2008, Askari Bank has
been given "The Best Retail Banking Award 2008" by Pakistan Guarantee Export Corporation
Ltd.
 Chapter No.2

2.1 Organizational Chart

2.2 Corporate Profile
2.3 Management Hierarchy
2.4 Policy Formation Process
2.5 Managerial Policies
2.6 Credit Rating
2.1 Organizational Chart

An organizational chart is a graphic representation of the structure of an organization

showing the relationships of the positions or jobs within it.
2.2 Corporate Profile

BOARD OF DIRECTORS

Lt Gen Syed Tariq Nadeem Gilani, HI (M) (Retd) Chairman / Non-Executive Director

Lt Gen Javed Iqbal, HI (M) (Retd) Non-Executive Director

Lt Gen Tariq Khan, HI (M) (Retd) Non-Executive Director

Dr. Nadeem Inayat Non-Executive Director

Mr. Rehan Laiq Non-Executive Director

Mr. Manzoor Ahmed Non-Executive Director / NIT Nominee

Mr. Kamal A. Chinoy Independent Director

Syed Ahmed Iqbal Ashraf Independent Director

Mr. Mushtaq Malik Independent Director

Mr. Abid Sattar President & Chief Executive

BOARD COMMITTEES AUDIT:

Syed Ahmed Iqbal Ashraf – Chairman

Dr. Nadeem Inayat

Mr. Rehan Laiq

Mr. Manzoor Ahmed

HUMAN RESOURCE & REMUNERATION:

Lt Gen Javed Iqbal, HI (M) (Retd) - Chairman

Dr. Nadeem Inayat

Syed Ahmed Iqbal Ashraf

Mr. Mushtaq Malik

RISK MANAGEMENT:

Mr. Manzoor Ahmed – Chairman

Dr. Nadeem Inayat

Mr. Rehan Laiq

Brig. Saleem Ahmed Moeen, SI (Retd)

Mr. Abid Sattar

INFORMATION TECHNOLOGY:

Brig. Saleem Ahmed Moeen, SI (Retd) – Chairman

Dr. Nadeem Inayat

Mr. Abid Sattar

AUDITORS:

M/s A. F. Ferguson & Co. Chartered Accountants

LEGAL ADVISORS:

M/s RIAA, Barker Gillette Advocates & Corporate Counsellors

SHARIAH BOARD:

Mufti Muhammad Zahid - Chairman Mufti Ismatullah – Member

Dr. Muhammad Tahir Mansoori - Resident Shariah Board Member

COMPANY SECRETARY:

Mr. Shahid Abbasi, FCA

2.3 Management hierarchy:
2.4 Policy Formation Process

The policy formation process refers to the actions taken by the leaders, its decisions that are
intended to solve problems and improve the quality of life for its citizens. A policy established
and carried out by the government goes through several stages from inception to conclusion.

The following are core values of Askari Bank Limited that refers to take further step in policy
formation:

 Commitment
 Integrity
 Fairness
 Teamwork
 service

 Commitment: Passionate about our customers’ success and delighting them with quality
of our service

 Integrity: A distinctive investment, delivering outstanding performance, return and value

 Fairness: Exemplary compliance, governess and business ethics

 Teamwork: Caring for our people and helping them to grow

 Service: Dedication towards social development and improvement in quality of life

2.5 managerial policies

Policies overview at bank:

Managerial policies are the process of creating, communicating and maintaining policies and
procedures within an organization because the process of managing policies can be expensive
and time consuming. Major policies that have been made and implemented at askari bank are:

Consumer banking policy:

Askari bank policy regarding consumer-banking policies includes the development through the
electronic consumer banking operations. Askari bank has created a niche for itself in the
marketplace.

Lending policy:

Askari bank pursues a conservative yet dynamic credit policy. This strategy has enable the bank
to have a high quality risk portfolio. Bank prefers finance exporters because of less risk involved.
Askari bank manages the credit risk, liquidity risk, market risk and other operational risks very
efficiently. For this purpose Askari bank has got an effective credit line proposals system to be
sanctioned to the clients on demand.

Trade department policy:

Askari bank focus on ”Foreign Trade” as its primary market of business. It maintains high
emphasis on enlarging its correspondent banking network besides aiming to enhance the scope
and level of cooperation with existing correspondents. The Trade finance department has
efficiently done management of the changing trade policies by the central bank.

Marketing policy:

Askari Bank inverts heavily for the marketing policies and orientation, for the publicity of its
new products/services. It uses newspaper as well as various promotional schemes to attract
customers.

2.6 Credit rating:

Askari Bank has shown stable growth rate over the years. This has ensured its relative
profitability to remain intact. The bank has a strong brand image, flanked by its affiliation with
one of the strongest conglomerate, Fauji Foundation Group. The ownership structure has proven
itself a strong backing, as reflected by Askari Bank's history. The Bank has continued the growth
trajectory during 2018. The net spread has improved on the back of significant improvement in
asset yield amidst slightly higher cost of funds. Volumetric increase in earning assets, led by loan
portfolio augmentation, provided support to profitability; but was negatively impacted due to
higher provisioning expense on mark-to market loss of investment and NPL provisioning. The
bank had a sizeable reversal in specific charge NPL provisioning during 2018, yet the positive
impact was diluted by a higher incidence of provisioning expense. This also impacted the
profitability for 2018. The Bank's CAR is 12.5% at end-Dec18. The Tier 1 capital increased from
9.31% in 2017 to 10.92% in 2018 while the overall CAR improved by 40 basis points. With
minimum CAR requirement of 12.5% by next year, the Bank would need to tread ahead with a
cautious approach while lending in order to maintain sustainability with growth. The deposit
growth was sizeable, enabling the bank to hold its relative position. The ratings are dependent
upon sustainability of the bank’s relative positioning and continuous improvement in capital
adequacy, whereas, effective management of spreads remains important. Meanwhile, holding the
asset quality is a pre-requisite.
 Chapter No. 3

Marketing Mix (4p’s)

3.1 Product
3.2 Price
3.3 Place
3.4 Promotion
 Marketing Mix:

The marketing mix refers to the set of actions, or tactics, that a company uses to promote its
brand or product in the market.

3.1 Product:

Product refers to a good or service that a company offers to customers. Ideally, a product should
fulfill a certain consumer demand or be so compelling that consumers believe they need to have
it.

ASKARI BACHAT ACCOUNT:

Askari Mahana Bachat Account is a term deposit product for individual and corporate customers
with a medium term investment appetite. It offers individual customers the option of investing
for one and two years tenures, while corporate customers can invest for two years. It is designed
to cater to the saving needs of customers who want profit on a monthly basis with the option of
availing financing facility of upto 90% of the principal amount.

VALUE PLUS CURRENT ACCOUNT:

Askari Value Plus Current Account offers financial freedom and security with unmatched
flexibility. Customers (individuals) can open this account to avail the benefits of free life
insurance coverage of upto Rs. 2 Million, debit card with two supplementary cards, I-Net
facility, SMS alerts, issuance of cheque books and bankers’ cheques – all with no minimum
balance requirements. Value Plus Current (Business Account) is specially designed to cater to
the diversified needs of business community.
CURRENT ACCOUNT:

Current Accounts cater to a variety of financial needs of our diverse customer base with added
benefits of free cheque books, issuance of bankers’ cheques and much more.

SAVINGS ACCOUNT:

Savings accounts offered by the Bank to both individual and institutional customers include
Askari Special Deposit and normal savings account based on profit and loss sharing. Askari
savings deposit offer attractive features and competitive returns.

ASKARI ASAAN ACCOUNT:

Askari Bank offers Asaan Account to unbanked / under-banked individuals. The facility is
available in current and savings account categories. As per the name of this product, its hassle-
free account opening and operating procedure helps the lower income groups to fulfill their
banking requirements with ease and comfort.

ASKARI WAQAAR ACCOUNT:

Askari Waqaar Account caters to the banking needs of senior citizens (55 years and above)
looking for monthly profits, high returns and short term investment opportunities. Askari Waqaar
Account offers two variants; Term deposit (one year) and Savings account. The customer has the
option to choose any or both of these variants

ASKARI LITTLE CHAMPS ACCOUNT:

Askari Little Champs Account is designed specifically for minors (individuals below the age of
18 years). It introduces the concept of saving to the children and helps them understand the value
of money at an early age. The account offers two variants i.e. current and savings accounts.

ASKARI VISA DEBIT CARD:

You can manage your account, withdraw cash, make purchases and transfer your funds through
Askari Visa Debit Card, which offers the convenience of a credit card without the hassle of
monthly bills and interest charges. There are no minimum balance requirements for the issuance
or retention of the VISA Debit Card, which is available in Classic and Gold categories.

ASKARI PAYPAK DEBIT CARD:

Askari Bank is the first bank to introduce PayPak – Pakistan’s first domestic payment scheme
powered by 1LINK (Guarantee) Limited. This payment solution provides access to all ATMs
and POS terminals across Pakistan. Currently, PayPak debit card is available in Classic and Gold
categories.
3.2 Price:

“The key to pricing is to build value into the product and price it accordingly.”

Askari bachat account:

Askari Bachat Account has an interest rate of 10.50%

Savings Account:

Has an interest rate of 11.25%

Askari Little Champs Account:

Has an interest rate of 11.25%

Askari waqaar account:

Minimum deposit for opening of the Askari Waqaar – Savings account is Rs.1,000

Minimum deposit for opening an Askari Waqaar – Term Deposit account is Rs.25,000

Askari Waqaar Account has interest rate of 12.25%

Askari asaan account:

Account opening with Rs.100/-. Transaction limit is Rs.500,000/- for total credit balance and
total debit per month and has an interest rate of 11.25%

3.3 Place:

The objective of Askari bank has always been to expand its branch network to meet
client’s needs. Bank is well positioned and geographically poised to cater for increased
business demands, from its existing potential clientele.

Askari bank has almost 422 conventional branches spread all over Punjab covering
major business centers and principle cities. At present, Askari bank has opened all its
branches at commercial and business areas or near to commercial areas so that the
customers or clients face no problem in reaching the bank.

Conventional Branches 422

North region 144

Central region 139

South region 139

Islamic Branches 94

North region 35

Central region 35

South region 24
3.4 Promotion:

Promotion is the term that refers to the following statement:

“Steps taken by the company to enhance its sales by focusing the target markets”
Askari bank limited uses various methods for promotion, through mobile application,
internet, adds on newspaper etc.
 Askari Mobile Application has a promotions screen; a very convenient way for
the customers to view current offerings and promotions by Askari Bank.
 Askari Bank has an internationally recognised website, containing
comprehensive information on Askari Bank and its products. T he website was
developed in-house and has received several awards.
https://askaribank.com
 Bank has established its Data Warehouse and Customer Care Centre, a dedicated
customer call center to provide one window service to our valued customers in
terms of their telephonic enquires.
 Askari bank gives ads on newspaper to attract customers and to promote their
product and services.
 Askari bank also uses billboard, magazines, posters etc for their promotion.