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Chapter No. S. No Acknowledgements List of Contents List of Tables List of Graphs & Charts List of Acronyms Executive Summary Chapter-1 1.1 1.2 1.3 1.4 1.5 1.6 Chapter-2 2.1 2.2 Chapter-3 3.1 3.2 3.3 3.4 3.5 Chapter-4 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 Introduction of the Report Background of study Purpose of study Scope of work Methodology of Research Limitations of study Scheme of Report Origin and Growth of Banking Evolution of Banking Banking in Pakistan Askari Commercial Bank Limited Introduction Corporate Information Share Capital of ACBL Mission and Objectives Awards and Achievements Products and Services of ACBL ASDA Askari Bank’s Value Plus Askari Travelers Cheques Ask Card Ask Power Askari Master Card Askari Bank’s Personal Finance ASKAR Askari Bank’s Mortgage Finance Askari Bank’s Business Finance Title Page # i ii v vi vii viii 1 1 1 2 2 2 3 4 4 5 9 9 10 11 12 14 17 17 17 18 18 19 20 21 22 22 22
4.11 4.12 4.13 Chapter-5 5.1 Chapter-6 6.1 Chapter-7 7.1 7.2 7.3 7.4 Chapter-8 Chapter-9 Chapter-10 10.1 10.2
Smart Cash Touch n Pay Askari Cash Management Services Regional Distribution ACBL-North Region ACBL Peshawar Cantt Departmentalization at ACBL Peshawar Cantt Financial Analysis Common-size Analysis Ratio Analysis Trend Analysis Trend Analysis of North Region SWOT Analysis Findings and Recommendations Implementation Plans Implementation Plan: Extension and Renovation Implementation Plan: Internees Management Annexure-I Annexure-II Annexure-III References Bibliography
23 23 24 25 26 28 29 46 46 52 61 69 71 74 80 80 82 87 88 89 91 92
LIST OF TABLES
S. No 3.1 5.1 7.1 7.2 7.3 7.4 7.5 7.6 Title Head Office Groups/Divisions Regional Distribution of ACBL Horizontal Common-size Analysis–Balance Sheet Vertical Common-size Analysis–Balance Sheet Horizontal Common-size Analysis–Income Statement Vertical Common-size Analysis– Income Statement A Decade of Performance Trend Analysis of North Region Page # 16 25 47 48 50 50 62 69
3 7.14 7.2 7.17 7.1 7.16 7.LIST OF GRAPHS AND CHARTS S.11 7.15 7.1 7.20 7.9 7.5 7.4 7.21 7.8 7.18 7.13 7. NO 3.7 7.19 7.12 7.22 Organizational Structure Branch Network in the North Region Hierarchical Structure of ACBL Peshawar Cantt Current Ratio of ACBL Debt to Equity Ratio of ACBL Debt to Total Assets Ratio of ACBL Interest Margin Ratio of ACBL Return on Equity of ACBL Return on Assets of ACBL Loans to Deposits Ratio of ACBL Investments to Deposits Ratio of ACBL Profit Margin of ACBL Trend Analysis: Profit Customer Deposits Advances Investments Total Assets Imports Exports Guarantees Earning per Share Net Assets per Share Number of Employees Number of Branches Trend Analysis of North Region 63 63 64 64 65 66 66 67 67 68 68 69 70 Title Page # 15 27 28 52 53 54 55 56 57 58 59 60 iv .10 7.1 5.1 6.6 7.
LIST OF ACRONYMS ACBL ASDA ATM AWT DD GHQ OBU PLS PTCL SBP SWOT Askari Commercial Bank Limited Askari Special Deposit Account Automated Teller Machine Army Welfare Trust Demand Draft General Head Quarters Operating Business Unit Profit and Loss Sharing Pakistan Telecommunication Corporation Limited State Bank of Pakistan Strengths Weaknesses Opportunities Threats 1 .
I observed how the employees managed to work under stress and pressure and consult each other on different problems. schedules. Askari Commercial Bank is a rapidly growing organization with better future prospects and working there brought me closer to real life working situations. For this purpose. I was not involved in the technical work of processing instruments and carrying out transactions on the computer system. During the internship program. 2 . In this students are made to work in an organization for a specific period preferably two months to learn about its practical workings and apply theoretical knowledge to practice. I basically observed the procedural working structure of the organization and the benefit behind the theme of team work. The overall working environment was very conducive and gave a professional look. Through this process of learning I was persistently guided and instructed on different banking activities. However. and general ledgers. I got an opportunity to carry out my internship at the ASKARI Commercial Bank Limited (ACBL).PREFACE Internship is a compulsory requirement for getting the degree of BBA (Hon’s) from Preston University. DD vouching and making entries in the registers. I was a helping hand in the preparation of vouchers. Kohat. Today I have a well understanding of various banking activities.
EXECUTIVE SUMMARY Internship is an academic requirement whereby students are required to work in an organization for a specific period of time to apply management knowledge to practice and learn to work in real life situations. This internship report is based on the internship carried out at ASKARI Commercial Bank Limited. Kohat. The purpose of this report is to review existing practices and to recommend the necessary measures to be taken by the bank for better and efficient working in future. 3 .
Identify its weak areas and Recommend measures for improvement. Bills and Remittances. As a result of increase in size the banks are now adopting new approaches to their existing banking operations. focusing financial aspects. auto teller machine and evening banking.1. PURPOSE OF STUDY: The main purpose of this study is to: • • • • Present an overview of ACBL. Though the economy of Pakistan is passing through a difficult phase presently it requires a growing banking sector in order to curb the macro economic imbalances of budget deficits. 4 .INTRODUCTION 1. BACKGROUND OF THE STUDY Bank plays extremely important role in modern economic activities in the form of trade and commerce by providing short-term loans. The banking sector in Pakistan has shown great progress during last years and has increased much in size. Describe and analyze its functional performance. the main focus of work was on departments. acceleration of economic growth and reduction in unemployment. including Deposits. electronic fund transfer. Kohat. exports and imports. Advances and Accounts in particular and the observation of the working environment in whole organization in general. The study was carried out and the report being presented for the fulfillment of degree requirement of Bachelors in Business Administration at Preston University. SCOPE OF WORK: Due to the limitation of time. keeping in view changing in demand of time and emphasizing more on personalized service. The study includes general working procedures in these departments and their findings with some recommendations and suggested action plan. Foreign Exchange. Thus a welldeveloped banking sector is a pre requisite for the development of an under developed country like Pakistan.
1. primary data and secondary data. Primary Data Certain types of information such as the perceptions and attitudes of employees are best obtained by talking to them by observing events. and due to huge number of customers. and objects. or by administering questionnaires to individuals. Delimitations The information given in this report would be useful for the person who is interested in knowing about the operations carried out in the Askari Commercial Bank Kohat.3. Such data gathered for research from the actual site of occurrence of events are called Primary Data.LIMITATIONS Study includes those aspects.4. The most important limitation from which the study suffers is the non-availability of information in a manner required for analysis and secrecy of the bank.2. METHODOLOGY OF THE STUDY The study makes us use of two kinds of data. I sometimes felt that I couldn’t get enough time to discuss and learn things in detail from them. This report will be useful for the officers of the bank for their improvement in their work regarding their specific departments. For this report primary data was collected in two ways. which are closely relevant for the purpose of the study. Another most important limitation is the time constraint eight weeks is not enough to study all the operations of bank thoroughly. Facts and figures which otherwise might be equally important but not having proper conclusions are ignored. The method of observation was participant observation. the bank officers had also to do their normalbanking work.1. 1. people. Despite of being very cooperative. unstructured interviews with the employees of the bank and observations. 5 .2 The advantage of this data is that we get correct and up to date data about our study but the disadvantage is that it is time consuming and costly.
1991.2.1. and other sources. 6 . procedures and rules can be obtained from the organization’s records and documents.4. Then it shifted its focus to wholesale trade. and has since expanded into a nation-wide presence of 75 branches. manufacturing and project financing while retaining its niche with the medium-sized customers who continue to provide the best return on the earning assets of the bank. Secondary Data Certain types of information such as the background details of the organization can be obtained from available published records. they are data that already exist and do not have to be collected by the researcher. newspaper and Internet. Lahore & Islamabad Stock Exchanges and the initial public offering was over-subscribed 16 times. Other types of written information such as company policies. Askari has provided good value to its shareholders. The Bank is listed on the Karachi. as a Public Limited Company. Their share price has remained approximately 12% higher than the average share price of quoted banks during the last four years. HISTORY OF ASKARI COMMERCIAL BANK Askari bank was incorporated in Pakistan on October 9. the focus of the business was primarily on non-corporate sector of retail market. broachers. supported by a network of online ATMs.Askari Bank commenced its operations in April 1992. manual of different departments. books available on banks. For this report the secondary data is collected from annual reports of the bank. Data gathered through such existing sources are called secondary data that is. the web site of the organization its achieves. The data is already gone through mathematical and statistical techniques after its collection. While capturing the largest market share amongst the new banks. In the early years. The advantage of this data is that we don’t have search for the needed information and the disadvantage of this data is that the information may not be up to date as changes occur in the organization with time.
Askari Commercial Bank is progressively moving towards the achievement of their goals. This created its own challenges and opportunities. Banking sector holds vast promises in Pakistan and realizing the fact Army Welfare Trust (AWT) established Askari Commercial bank on 9th October 1991. with over 475. The salient features of the bank are: i) First Pakistani Bank to offer on-line real-time banking on a countrywide basis ii) First Bank with a nation-wide ATM network iii) First Bank to offer Internet Banking services iv) First Bank to offer e-Commerce solutions ORGANIZATIONAL REVIEW 2. In early 90’s there was growing trend among Government circle to involve private sector in the progress of the socio economic conditions of the country. 1962. As a result. Since its inception in 1991.Askari Bank is principally engaged in the business of Islamic banking as defined in the Banking Companies Ordinance. Askari Bank is the only bank with its operational Head Office in the twin cities of Rawalpindi-Islamabad.000 banking customers. It started its operations in 1992. 2004.313 billion. the Bank had total assets of Pak Rupees 101. INTRODUCTION An organization is a group of people working together in a structured and coordinated fashion to achieve a set of goals.1. and forced them to evolve an outward-looking strategy in terms of their market emphasis. Knowing the customer requirements and understanding of employee needs. where most other banks have their operational Head Offices. they are continuously and consistently striving to 7 . As at December 31. they developed a geographically diversified assets base instead of a concentration and heavy reliance on business in the major commercial centers of Karachi and Lahore. which have relatively limited opportunities as compared to Karachi and Lahore.
26 billion registering the growth of 34% over the previous years. financing of international trade. Askari Bank is the only Private Sector Bank that has been approved by the World Bank as a Participating Financial Institution for the US $200 Million Line Of Credit sanctioned to the Government of Pakistan for the Financial Sector Deepening and Intermediation Project. credit cards and unparallel investments products for the individual savers. With a network of 75 branches and over 475. small business reviews. Askari Bank has a higher volume of Export and Import business of Rs. committed hardworking human resource. 8 . for the short-term obligation and long term rating standards at AA. Askari Bank is proud of the pioneering role in providing most technological services to the customer.000 loyal customers. Askari Bank has the strength to be the market leader. They are ready to take changes in the financial markets. They have A1+ highest possible credit rating. They have structured and syndicated financial arrangements. ACBL superior services are well acknowledged at both national and international level. These achievements are the results of continuous hard work and there commitment to work.address new challenges with a single motivation.
DELIVERING QUALITY SERVICES THROUGH INNOVATIVE TECHNOLOGY AND EFFECTIVE HUMAN RESOURCE MANAGEMENT IN A MODERN AND PROGRESSIVE ORGANIZATION CULTURE OF MERITOCRACY.MISSION STATEMENT OF THE BANK “LEADING PRIVATE SECTOR BANK IN PAKISTAN WITH AN INTERNATIONAL PRESENCE.” 9 . AND CONTRIBUTING TO SOCIETY. WHILE PROVIDING ENHANC ED VALUE TO ALL OUR STAKE-HOLDERS. MAINTAINING HIGH ETHICAL AND PROFESSIONAL STANDARDS.
To deliver timely solutions that best meet the customer’s financial needs. with a continuous improvement focus. where employees are motivated to contribute to their full potential. To develop a customer-service oriented culture with special emphasis on customer care and convenience. CORE VALUES: The intrinsic values. which are the corner stones of Askari Bank’s corporate behavior. are: • • • • • Commitment Integrity Fairness Team-work and Service 10 . • • • To manage the Bank’s portfolio of businesses to achieve strong and sustainable shareholder returns and to continuously build shareholder value. To explore new avenues for growth and profitability. To effectively manage and mitigate all kinds of risks inherent in the banking business. To build an enabling environment. enhanced delivery capability and high service standards. To build and sustain a high performance culture.Objectives: • • • • • • To achieve sustained growth and profitability in all areas of business. efficient management information system. To maximize use of technology to ensure cost-effective operations.
CORPORATE PHILOSOPHY: Inspiring Relationships From knowing their customers requirements to understanding employee needs. from utilizing modern technology to making responsible social contributions. products.STRATEGIC PLANNING: • • • • • • To comprehensively plan for the future to ensure sustained growth and profitability. To provide strategic solutions to mitigate weak areas and to counter threats to profits. ACBL is continuously and consistently striving to address newer challenges with a single motivation: “The power to inspire and be inspired. To facilitate alignment of the Vision.” AWARDS AND ACHIEVEMENTS: Over the years. policies and procedures. with the business goals and objectives. from enhancing stake holder’s value to practicing corporate ethics. To provide strategic initiatives and solutions for projects. As early as 1994. Corporate Objectives and Corporate Philosophy. ACBL has received several awards for the quality of their banking service to individuals and corporate. ACBL received the Euro money and Aslamoney awards for “The Best Domestic Bank in Pakistan”. It has been given “The Best Consumer Internet Bank” award for Pakistan by the same magazine for the years 2002 and 2003. To identify strategic initiatives and opportunities for profit. • • • ACBL was declared “The Best Bank in Pakistan” by the Global Finance magazine for the years 2001 & 2002. 11 . Mission. 1996 and 1997. To create and leverage strategic assets and capabilities for competitive advantage.
Singapore. 12 . declared ACBL as the “Best Retail Bank” in Pakistan for year 2004. while the long-term rating stand at AA. • • • Askari Bank has A1 + rating for short-term obligations—the highest possible for the category. from the National Council of Culture & Arts for each of the years 1997 to 2002. In the second activities are determined and establish functions and authorities within these activities and relate these activities. • For the past five years. resources are deployed and departments are coordinated. Bank organizational structure is a hierarchical description of the function and responsibilities of major units or departments in the bank. Askari Commercial Bank won the MAP (Management Association of Pakistan) Award for Corporate Excellence 2004. 2001 and 2002 from the Institute of Chartered Accountants of Pakistan and the Institute of Cost and Management Accountants of Pakistan.• Askari Bank won the first prize in the Best Corporate Report awards for the years 2000. • It has also won the 1st prize for “The Best Designed Annual Accounts”. in the SAARC region. Organization structure has two facets first the form of structure in which organization principles are applied. “Asian Banker”. CORE VALUES The core values of the bank are: Commitment Integrity Fairness Teamwork ORGANIZATIONAL STRUCTURE: The framework in which the organization defines how tasks are divided. ACBL has received ranking prizes from the South Asian Federation of Accountants for “The Best Presented Annual Accounts” for the financial sector. for the services sector.
It shows who supervises whom and how the various units are related to each other. sections and units. It also shows main line of communication. ORGANIZATIONAL CHART: Organizational Chart is the visual representation of Organizational Structure. Organizational chart of ACBL gives us the view that how greater delegation of authority can be made possible at different levels. 2. Board of Directors in a limited company with large number of shareholders. Organizational Chart is prepared to show formal organization relationships. Departments Head with specific responsibilities and authorities. 13 . Board of Directors are elected by the shareholders using their voting rights who are responsible for the affairs of the company including operation management and control of company business. which are intended to prevail. taking important decisions and formulating broad polices and objectives of company.Usually a Bank Organizational structure is composed of Chief Executive Officer under the Board of Directors. A board of directors comprising of 11 head directors of Bank. which is evident in its organizational chart. ACBL allows a flat organizational structure with a few levels and relatively large span of management at each level. downward flow of authority and upward flow of responsibility.3. further bifurcations of divisions.
ORGANIZATIONAL CHART OF ACBL Chief Executive Manager Operations Audit Incharge Forex Incharge Computer Incharge Credits Incharge Deposits Incharge Cash Incharge Remittances Incharge Accounts FC Accounts Imports Exports Loans & Advances Credit Cards Bills Remittances Account Opening Cheque Posting Term Deposits 14 .
This is a choice enrolment plan with a monthly deduction of Rs. In case customer wishes to partially withdraw some amount from his total investment. ACBL offers two more accounts in local currency to its customers. 15 . With this account. The investment will be held in blocks of Rs. The amount in this account is also Zakat deductible.1 ASDA (ASKARI SPECIAL DEPOSIT ACCOUNT): Besides the basic current and saving accounts.e.e. ASDA or Askari Special Deposit Account gives a monthly profit to the account holder. 3 months. with minimum limit of Rs. 4. Pakistan) brings global accidental protection for the entire family of the customer. then Rs.000/each.and monthly returns.000 as minimum for a choice tenure i. ASDA and Askari Value Plus.150/month is deducted. and yet he does not lose the share of profit on the encashed blocks. but the amount in the account is checked on daily basis and no profit is given if the balance in the account is less than Rs.000/. i.25.2 ASKARI BANK’S VALUE PLUS: Another rupee deposit account.000.Source: The ACBL Circular PRODUCTS & SERVICES OF ACBL The main products offered by Askari Commercial Bank Ltd. but if amount in the account is less than this limit. without touching the remaining investment.25. Advantages: • Partial Liquidity Offer: This account gives opportunity to invest Rs. the account holder can enjoy an insurance cover of up to 4 times the average balance in his account. he has the flexibility of encashing the blocks that he wants. The unencashed blocks will continue at the same maturity and return. 6 months or 1 year. to its valued customers include the following: 4.10.50. which are offered in both local and foreign currencies.20. • Insurance Cover: A unique partnership between Askari Bank and New Hampshire Insurance Company (American International Group.
from restaurants to boutiques. and this card brings special discount offers on purchases from the authorized merchants of ACBL. the account balance is the spending limit of the customer. special thread. the amount will be instantly debited to his account. It gives customer the freedom to access his Savings.10. 4. book stores to 5-star hotels for the ATM Card holder. the customer must have an account with Askari Bank.• Free ATM Card: The account holder of this account gets a free ATM card. he will have to open an account first and request for Ask Card to be issued to him. which in case of other accounts has to pay Rs. Whenever he makes payments.000/-. They can buy these either against cash or debit to their personal account. Since a customer is spending his own money. 4. anti scanner pyramid design and unique micro lines.the-art in-built security features. it's light. High security lithography. Added safety & security: With Askari Bank’s state-of-. 16 . If he is not maintaining an account. safe and ideal for all travel purposes. Current or ASDA Account at merchant locations and ATMs. In case of Ask Card. Free issuance: The customers don't have to pay any service charges for purchasing Askari Travelers Cheques.200/month for this service. ultra violet printing. easily refundable in case of loss and theft. there is no interest charged. If the customer already has an account with Askari Bank. all done and printed in UK gives the comfort of dealing in the safest substitute for cash. How to get the Ask Card? To get an Ask Card. Askari Bank’s Travelers Cheques are available in the denomination of Rs.3 ASKARI TRAVELLERS CHEQUES: The safe ways to carry cash—another valuable financial service by ACBL. he simply has to submit an application form. This card provides with instant cash access at more than 40 ATMs around Pakistan.4 ASK CARD (DEBIT CARD): It is an innovative step in the evolution of today's plastic money. the customer can be rest assured that this is the best way to make and accept payments.
Ask Card facts: • • • • • • Free from carrying cash or Cheque books. Since only Ask Card holder knows the secret PIN number. 4. Instant access to money.500/Card can be reloaded anytime. ACBL’s existing and forthcoming ATM Network and Point of Sales terminals. including grocery stores. Key Features: • • • • • • • Issued to ACBL / Non-ACBL customers. restaurants. Easy cash withdrawal through ATMs. No interest / markup payments. Easier to obtain than Credit Cards. private. No spending limit. It functions on a PIN-based mechanism other than the usual signature-based cards in the market. 17 . Every purchase and ATM withdrawal will appear on the monthly checking account statement of the customer. More readily acceptable than Cheques. retail stores. petrol stations. safe and secure option for cash transfers.5 ASK POWER (PREPAID CARD): Ask Power is Askari Bank’s Pre-paid Card. This card is acceptable at various locations. Customer does not have to carry cash or travelers cheque while traveling within the country. Payment of Utility Bills through ATMs and Internet. Although. place and amount. but unlike ATM Card. Fast. it protects him against any fraud. No monthly installments. 24 hours a day. Ask Power is not connected to any account. A customer simply has to submit an application form at any ACBL Branch and get his Ask Power Card. Ask Card security: Askari Bank's Debit Card facility offers unmatched security. 7 days a week. (NIC Card holders) Minimum Issuance Limit: Rs. it is a “stored value” card. It is an instant cash card that can be used at any ATM and Point of Sale terminals. including the date.
No credit approval required. It functions on a PIN-based mechanism as opposed to the ordinary signature-based cards available in the market. Account relationship with ACBL not mandatory.• Replacement of card in case of loss. restaurants. regardless of the currency of purchase. ACBL will not charge him any Joining Fee. Key Advantages: • • • • • • • • • Ultimate way of carrying cash. gasoline stations and also at ATMs and Point of Sales terminals. At customer’s service: Ask Power is acceptable at numerous locations including grocery stores. damaged or defective card. retail stores. No waiting in long queues for paying utility bills. Convenient and inexpensive money transfers. Since only the customer knows his confidential number. No issuance fee. Safe & secure: Ask Power offers unmatched security to the cardholders. Countrywide acceptance and availability. 4. the Cardholder will have the benefit of receiving his monthly billing in Pak Rupees. he is protected against all sorts of frauds. Can be issued to anyone having National Identity Card. Worldwide acceptability: Askari Master Card provides service at thousands of locations in Pakistan and over 14 million establishments worldwide.6 ASKARI MASTER CARD (CREDIT CARD FACILITY): No joining fee: When a customer successfully applies for an Askari MasterCard. Easy access to cash and commodities. theft. As an added convenience. Askari supplementary cards: Askari Master Card saves the customer the inconvenience of applying for separate Askari Master Cards for his immediate family members (over 18 years) by requesting supplementary cards when applying for his 18 .
8. Up to Rs.7 ASKARI BANK’S PERSONAL FINANCE: Askari Bank’s Personal Finance has unmatched financing features in terms of loan amount. No surcharge on cash payment: When a customer pays his Askari MasterCard bills in cash. Features: • • • • • Loan amount from Rs. Up to Rs.000 Insurance cover for flight\ delays exceeding 6 hours.on a Gold Card and Rs. payback period and most afford able monthly installments. So if he prefers paying his bills in cash at any specified Askari Bank Branch.10.4. one can take advantage of the following discounts at Avari Hotels: • • • 50% on Room Rates 15% at all Restaurants 10% on Health Club Membership 4. Traveling safety net: On purchase of travel tickets on Askari MasterCard.10.on a Silver Card.000 Repayment period from 1 to 3 years Fixed monthly repayment Shortest processing time Funds may be obtained at any ACBL branch Eligibility Criteria: 19 .000 as baggage loss claim. Travel privilege services: On purchase of Airline Tickets for international Travel on Askari Master Card gives: • • • Up to Rs. He will receive a consolidated monthly account statement. Discounts at Avari with Askari Master Card: With Askari Master Card.000 Insurance cover for baggage delays exceeding 6 hours. ACBL will not make this convenience more expensive for him.000.30.000/.000 to 300.000/.20. ACBL will not charge him a processing fee. which covers all the cards.000. the customer is automatically covered under Travel Insurance Plan (in case of personal accident resulting in death or permanent disablement) for up to Rs.own card.
Mark-up on the daily outstanding loan balance. 4. Financing available initially for a period of one year.5.• • • • Age between 21 and 57.500.8 ASKAR (AUTO LOANS): Askar offers the most convenient and affordable vehicle-financing scheme. ranging from Rs.000. They have to pay the price of the property in affordable installments for a fixed time period simply as if paying monthly rentals for their residence. 4.9 ASKARI BANK’S MORTGAGE FINANCE (HOME LOANS): Askari mortgage finance offers its customers the convenience of owning a house of their choice while living in it at its rental value. A Pakistani resident. Salaried: Minimum length of confirmed service with present employer should be at least six months with a total length of at least one-year service. Widest range of available car makes and models.000. A verifiable minimum gross monthly income of Rs.000 to Rs. Features: • • • Minimum down payment. 4.10 ASKARI BANK’S BUSINESS FINANCE (BUSINESS LOANS): Features: • • • • Running finance facility. which provides its customers an opportunity to own a brand new vehicle of their choice.15. Lowest insurance rates. 20 . Self-Employed: In business for the last one year. Eligibility criteria: • • Age between 25 and 55 years. Available up to 60% of the assessed market value of the residential property of the customer applying for loan.000.
e. Willingness of the borrower to provide his own or co borrower’s residential property as security. collection and cash/transfer facility to corporate. Point of Sale Terminals (POS). 21 . The service primarily aims at providing clearing. 5 years (or more) business or professional experience in the present business (in case of medium business finance). At present. The markup is charged only on the utilized amount and for the number of days the credit is used. Features: • • • • The customer can withdraw cash from his credit line as and when he requires.11 SMART CASH (RUNNING FINANCE FACILITY FOR CONSUMERS): This personal line of credit is set up with a specified credit limit agreed upon by customer and ACBL. 4.g.• • • 1-year (or more) business or professional experience in the present business (in case of small business finance). ACBL has joined hands with PTCL and this arrangement facilitates Utility Bills subscribers to pay their monthly Utility bills from Askari Bank's ATMs. 4. Askari Leasing. The markup is lower than a credit card. Finance amount is up to Rs. the Internet and also at the Bank's branches through direct debit to their personal accounts.12 TOUCH N PAY (UTILITY BILLS PAYMENT): Touch n Pay is Askari Bank’s Electronic Bill Payment Service through which its customers’ can pay utility bills through ATM card of ACBL. ASKARI CASH MANAGEMENT SERVICES: It is aimed at effectively managing the accounts receivable portfolio of medium and large corporate entities.1 Million.
3. HEAD OFFICE GROUPS / DIVISIONS: Corporate Banking & Operations & Credit Group Financial Institutions Group Retail Banking Group Credit Division Corporate & Investment Banking Divisions International Division Assets Products Division Electronic Technology Division Treasury Division Systems & Operations Division Investment Products Division Credit Cards Division Compliance & Data Division Planning & Corporate Affairs Division Legal Affairs Department Human Resource Division Finance Division Internal Audit Division 22 .1.DEPARTMENTATION Departmentation means grouping of jobs into some logical arrangement. The basis for departmentation in ACBL is geographical as well as functional. Departmentation results in the effective management of each unit as well as concentration on the particular activities and consequently better the performance. President of Askari Commercial Bank Limited handles all divisions. DEPARTMENTATION AT HEAD OFFICE At the Head Office various departments have been established in corporate function of similar nature.
3. The division recommends automation and re engineering requirements to improve transaction efficiencies. and has played a pivotal role in helping the Bank to achieve a remarkable loans growth of 31%.1.000 locations in Pakistan. control and monitoring. This Division has a Special Assets Management team.1. and working capital finance.6. They have been transacting business of Rs.70 billion in year 2001.1.1. 3. This division also manages the protection of fixed assets of the bank.1.3. Through repot transactions. The product now has a portfolio of nearly 20000 cards less than one year. 3. The brand is accepted worldwide and at over 3. Credit Card Division This Division manages Askari Master Card brand and is headquartered at Karachi. Principle activities include syndicated loans. Treasury Division They are responsible for managing Banks Liquidity and Foreign Exchange transactions. underwriting and advisory services. Systems and Operation Divisions The division has been instrumental in development of procedures and manuals for various operating requirements of the Bank. Most of the loans are for short term trade financing. which is responsible for low ratio of bad debts. Plays vital role in the Foreign Trade Transactions.3. guarantees.5. Corporate and Merchant Division This division is engaged in the provision of the financing facilities to large corporate clients including multinationals. 3. with well-defined exposure risks. 23 . International Division They are responsible for managing correspondent relationships and planning overseas operations.4. effective monitoring of delinquent advance and close follow up of recoveries. Credit Division This division provides extensive support to branches for credit administration. purchase of Government papers and foreign exchange trading the division adds substantially to the banks retained earnings.1.
1.9.8. The department makes sure that all the legal actions are in compliance with the relevant laws. All these 24 . The launch of “Askari Bank’s Business Finance” product in 2002 was a step towards implementing SBP’s advice to provide loans to SME’s. drafts. its monitoring and constant review of various financial indicators. Audit Division The Audit Division acts independent of the Management and is responsible for checking and reporting on the Management compliance with the Board’s policies and directives and other directives of SBP. prepare research studies. It is actively involve in preparing market comparative analysis.1.10. address legal queries and advise on pre contractual investigations. Assets Products Division The Assets Products Division is responsible for the development and management of retail credit schemes. 3. 3. consolidation of Banks budgets.3. APD has also introduced value added products like “Balance Transfer Facility” (BTF) and “Askari Bank’s Mortgage Finance” and “Askar”. rules and regulations.1.7. 3. APD presently has five retail asset units all over the country. and providing legal assistance by reviewing. Legal Affairs Department The Legal Affairs Department is mainly engaged in advising the Bank on applicable laws and the negotiations of contracts.1. This department has also the responsibility to follow up on the legal actions initiated for or against the bank especially the ongoing litigation in the loan recovery cases. The first product of the division is “Askari Banks Personal Finance” is used for the purchase of various types of consumer goods. Preparing the Banks Annual Accounts and coordinating external audits is also a direct function of Finance. This Division is responsible for every aspect of Bank’s operations with the goal of improving the effectiveness of risk management and internal control. Finance Division This division is responsible for book keeping and accounts. It prepares all financial returns through its Management Reporting Wing. examining and scrutinizing various documents and matters connected therewith the department carries out analysis. and is presently offering several innovative consumer credit products.
Investment Product Division The Investment Product Division is responsible for developing and managing the brands that serve the investment needs of the customer market it focuses on deposit mobilization and provision of value added services based on modern technology cards. REGIONAL DISTRIBUTION OF ASKARI COMMERCIAL BANK LTD Region Rawalpindi / Islamabad North Lahore East South I South II West No. both of which got a good response from the market.1. 1 in Gawadar. 1 in Azad Kashmir 8 in Lahore 12 branches spread all across Punjab 10 Karachi. of branches 10 7 8 12 12 7 3 Main distribution of branches1 7 in Rawalpindi. Computer Loans were launched in July 2002 to promote IT Technology in the country. 3. of new branches planned for 2004 No such planning for 2004 No such planning for 2004 4 4 4 No such planning for 2004 No such planning for 2004 Growth in operating profit 62% -15% 18% 21% 72% 22% -15% 1 25 . The division continuously makes an effort to provide value added services and products to the clients. 1 in Sukkur 6 in Karachi. 1 in Hyderabad 3 in Balochistan No.11. The is evident from the launch of “ Askari Bank’s Value Plus Account” and Rupee Travelers Cheques.products have enjoyed good acceptance by the market. 3 in Islamabad 6 in NWFP.
5. six in NWFP and one in Azad Kashmir. are the main factors that have resulted in a loss of business in the Region.4. East This region has the largest number of branches (12) in comparison with any other region of the bank. In other areas of business.2. This has adversely affected business of imports. . stretching from Rahim Yar khan in the south to Gujarat in the north. ACBL also plans to expand the operations that will enable the generation of low cost deposits and trading business in the Region. Significant portion of business activities carried out in NWFP was in the hands of Afghan immigrants. and relationships will improve with Afghanistan. Internship Report on Askari Commercial Bank Ltd. the Region could not sustain its profitability. 3. Keeping in view these factors and the fact that an unusually high profit (130% growth even with limited potential for credit and foreign trade but the Region’s team efforts to contribute to the bank deposits and foreign trade business) was achieved in the previous year. While it is hoped that economic activity will revive in the Region. the Region achieved significant growth attributable to the untiring efforts of the Region’s team. Lahore This region now covers 8 branches located in Lahore city with the last one opened during the year 2002. exports and real estate.1 ACBL—NORTH REGION: North Region covers seven branches. which were a major source of deposits and allied business. which declined by 15% during 2003. who were a major source of economic activity in the Region. particularly advances. The region serves both households and business community in and around Lahore and carries the advantage of matching its deposit generation with deployment. During the year one more branch was added to this region in the city of Gujarat. who are leaving for their homeland. The repatriation of Afghan refugees. the relocation of various western NGO operations from NWFP to Afghanistan.
south region was split in two regions south1. Our marketing philosophy reflects our core value of serving the customer. . This region started off with 4 branches.South-I This region comprises of 12 branches out of which 3 were opened during the year 2003. the region attained excellent growth of 35% in its profits and advances. Of all the graphical regions of the bank. South-II In appreciation of the depth and dimension of Karachi market. 3.and south-11. West Operating with 3 branches in the comparatively less developed province of Baluchistan. Though small in its quantum. this region relies heavily on retail customers with some potential for deposit mobilization. which have contributed significantly towards the bank bottom line as well as trade related volumes to the bank. Internship Report on Askari Commercial Bank Ltd. This region has excellent potential for deposits.7. south-11 posted the strongest all-round growth in 2004. advances as well as foreign trade. The region’s strength lies in the fact that it manages 2 of the main branches of Karachi.2.
2 Deposits Department: Internship Report on Askari Commercial Bank Ltd.1. Cash payments: Along with the receipt of cash for different transactions. Since.DEPARTMENTATION AT BRANCH ACBL PESHAWAR CANTT Askari Commercial Bank Ltd. 2.1. 6. this department also performs the function of payment of cash. The main departments at ACBL are: • • • • • • • Cash Deposits Bills and Remittances Foreign Exchange Advances Accounts Computer A REVIEW OF THESE DEPARTMENTS IS PRESENTED A brief description of functions performed in some main departments of ACBL is as follows: 6. for example. Peshawar Cantt branch started its operations in 1992.1 Cash Department: The main functions of this department are cash payments and cash receipts. etc. this branch serves as the main branch. issuance of demand draft and telegraphic transfer or payment of fees etc. that are briefly described below: 1. . there are two branches of ACBL is Peshawar. A record is also maintained for these receipts. Cash receipts: Receipt of cash from the customers by the bank in case of deposits. is the function of this department. when a customer withdraws cash from his account.
200/month for this service. but if amount in the account is less than this limit. A unique partnership between Askari Bank and New Hampshire Insurance Company (American International Group. The amount in this account is also zakat deductible. The cash deposits and opening of accounts by customers also brings with it other facilities for its account holders. Types of Accounts: The various types of account that ACBL offers to its customers are: Current deposit account: A current deposit account can be opened in Askari Commercial Bank Limited. with minimum limit of Rs.000. and zakat is deducted on the 1st of Ramadan. Pakistan) brings global accidental protection for the entire family of this account holder. Account holders can withdraw cash from their accounts anytime by drawing a cheque. Askari Bank’s Value Plus: Another rupee deposit account.50. . Though the State Bank of Pakistan has lowered interest rates considerably over the past few years. for example. with an initial deposit of Rs. even then the deposits show an increase because most people have no other better option. Internship Report on Askari Commercial Bank Ltd. but the amount in the account is checked on daily basis and no profit is given if the balance in the account is less than Rs. bank locker facility etc. issuance of cheque-book. There is no Zakat or tax deduction from current deposit account.000/. PLS Saving Account: Askari Commercial Bank Limited opens saving account with an initial deposit of Rs.Deposits mobilization is the primary function of a bank.2500 by civilians. which is credited to the account of account holder.150/month is deducted.200 by army personnel and Rs. The basic purposes of keeping cash in banks are safe custody and earning interest on the cash deposits. ATM card.5000 by civilians. The account holder of this account gets a free ATM card. then Rs.and monthly returns. and for this purpose Askari Commercial Bank Limited. like other banks. ASDA (Askari Special Deposit Account): This account gives a monthly profit to the account holder.500 by army personnel and Rs. who in case of other accounts has to pay Rs.10. A six monthly profit is paid on this account. offers different types of accounts to its customers.
a copy of identity card is required to open the account. or private or limited company can open an account.With this account. If the depositor signs in Urdu or “thumb signs”. Rs. ATM Card or locker. .000 is the minimum limit for opening this account. sole-proprietor. Phone call is made at the given number to the account holder and introducer to say thanks and to verify the numbers provided. And.10. he can now apply for that by filling the relevant forms. For opening an account. Account opening steps: • • • • • • • Individual(s) (single or joint). Term Deposits: These deposits pay profit on maturity and are for a maximum six months period. Internship Report on Askari Commercial Bank Ltd. and then account number is allotted to the depositor. This is a choice enrolment plan with a monthly deduction of Rs. Letter of thanks issued to the introducer and its copy is attached to the account opening form.g.20. the bank requires the customer to fill an account opening form (AOF) and a specimen signature card. he is required to fill the vernacular form in the presence of a witness. • • • • Chequebook is issued to the depositor. No introduction of already existing account holder of the bank is required which is the case for other deposit accounts. the account holder can enjoy an insurance cover of up to 4 times the average balance in his account. The account opening officer checks all the aspects of account opening and stamps the account opening form as ‘authorized’ and ‘verified’. If a person’s signatures do not match with each other. partnership. The customer also has to be introduced by any employee of the bank or any other account holder of the bank. he is required to give his photographs with the AOF. who is not a minor. If the account holder wants to avail any other facility e. The customer also has to provide the photocopy of National Identity Card as well as to show the original NIC to the banker opening account for him.
3 Bills and remittances Department: To make safe the transfer of money from one place to another. and after the process credits the amount to the customer’s account and debits that bank. Demand Draft 4. Its procedure is explained here: • Application for DD (Demand Draft) received from the customer. where the representatives of all banks are present. Inward Bills for Collection 3. Inward bills for collection: The cheques drawn on ACBL are received from other banks and after the required process. Inward clearing: Cheques drawn on ACBL. sends them with a schedule to that bank. the amounts are credited to the account of the person in whose name the cheque has been drawn. cheques are returned.Clearing of cheques: The cheques that are presented by the customer in a particular bank because that person is the customer of that bank and not because that cheque belong to that bank. In House 2. There are two Clearing Houses in a day: In House 1. Pay Orders Outward bills for collection: ACBL receives outstations bills (bills drawn on other banks) from its customers. are presented in Clearing House in State Bank. Outward Bills for Collection 2. cheques are presented. Demand draft: It is way of safe transfer of money to someone outstation. After necessary operation on those cheques. this department of the bank acts an agent on behalf of its customers. Internship Report on Askari Commercial Bank Ltd. 6. that bank is credited.1. . There are two types of clearing that will be explained with ACBL’s reference: • • Outward clearing: Cheques brought to ACBL by its customers that are drawn on other branches. This department sends on receives money on behalf of its customers through following means: 1.
1. 3. They are used to avoid the risks involved in accepting a cheque with no amount in the account. . The minimum limit of amount for opening accounts in these foreign currencies is: o For US Dollars o For Pound Sterling o For Euro ––– ––– ––– $ 500 £ 350 є 500 Foreign currency accounts operational procedure: The foreign currency account can be funded /withdrawn either by: Internship Report on Askari Commercial Bank Ltd. 4.1. Issuance of travelers cheques Imports Exports Foreign currency deposits: • Individual or joint accounts are opened in foreign currency.4 Foreign Exchange or “Forex” Department: This department deals in foreign currency and offers the following main services. The DD prepared is given to the customer. 2.• • • • Draft is made on behalf of customer. as is the case for local currency deposits. Pound Sterling or Euro (3 currencies). • • • Account may be opened as saving or current accounts Account may be opened in US Dollars. Foreign currency deposits Foreign remittances. Pay orders are similar to DD except for the fact that DD are meant for outstation transfer of money and pay orders are used for local transfer of money. 5. Foreign currency accounts are not opened for limited or unlimited companies. Pay order: Pay order is used to send money from one bank to another in the same city. The customer sends it to the beneficiary (the person to whom he wants to send the money). The bank (ACBL in this case) will send IBCA to the branch from where the beneficiary will receive money after presenting the DD. 6.
then ACBL will perform this function for his customer through its correspondent bank in that country. Transfer of funds from one account to other account denominated in the same currency at different branches. Remittance of funds through foreign currency account other than the currency of account. he can get the encashment certificate from this department if he needs it. this department will perform this function. both for current and saving foreign currency. . Receipt of cash in foreign currency funds through Nostro accounts. If a customer takes cash for the cheque drawn on the foreign currency account. Internship Report on Askari Commercial Bank Ltd. which is drawn in his name but the amount has to be credited to his account from some foreign bank. • • If a customer wants to exchange one currency for another. Foreign currency cash paid against available balance in foreign currency account.• • • • • • • • Receipt of cash in foreign currency. Types of foreign currency accounts: New Accounts: These are the accounts that have been opened after 1998. Transfer of funds form one account to other account denominated in different currencies. Remittance of funds through foreign currency account denominated in the same currency. The customer must be account holder of ACBL. This department also provides the following services to its customers: • A customer’s cheque. Transfer of funds from one account to other account denominated in the same currency at same branch.
TTs. which is done through correspondent banks. the percentage of amounts of TCs that each age group member can avail is: o For up to 2 years old 2 ------. And foreign remittance is the transfer of funds from one country to another. TCs and foreign currency notes. Bills. Foreign remittances: “Remittance” means transfer of funds from one place to another.2 Foreign remittances can either be inward or outward: • Inward Remittance: In this case foreign exchange flows in. Customer can withdraw amount from these accounts in Pak rupees and not in any foreign currency.Old Accounts: These are the accounts that were opened before 1998 and were frozen by the government. Through Private Travel Exchange Quota (PTEQ). SBP pays a 0. drafts. but if he wants cash. Issuance of traveler’s cheques: Askari commercial Bank Limited has an agreement with American express for sale of American Express Traveler’s cheques. he will have to accept as TCs.5% forward cover to the bank on these accounts. Incremental Accounts: For those customers who wanted to continue operations in their Old Accounts that were frozen. Drafts. the maximum amount that any person can avail is $ 2100 in one year. he can take cash only up to $100 and the rest of $2000. From the total quota of $2100. the facility has been provided to them that those accounts have been changed to Incremental Accounts to save the customers from inconvenience of opening new accounts for that amount and going through long procedures. • Outward Remittance: In this case foreign exchange flows out and authorized dealers sells foreign exchange by issuing MTs.10% Internship Report on Askari Commercial Bank Ltd. Bills.g. The customer can take the whole amount as TCs (Traveler’s Cheques). . TCs and foreign currency notes. Authorized dealers (e. banks) purchases foreign exchange when it is received in the form of MTs. TTs.
OK return ticket. v. T. A documentary letter of credit (LC) is an undertaking by a bank at the request of its customer. When an importer is not particularly well known to an exporter. but the transaction is being conducted directly between the importer and the exporter.g. duly completed. iv. b) The issuing bank—who issues the credit. through a letter of credit. to pay the exporter in respect of goods consigned to the importer when satisfactory documents including evidence of consignment and all other documents required under the terms of the credit are produced at the named place within a specified period. bank) for the issuance of traveler’s cheques: i.50% o For 12 years old and above ------. c) The correspondent bank—who is intermediary between issuing bank and seller and who pays or negotiates drafts upon receipt of documents. then they use the services of a bank. National identity card.1 form. Passport. an importer. Parties involved in LC: Normally. Types of Letter of Credit: There are different types of LCs. few are described here: Internship Report on Askari Commercial Bank Ltd. applicant for LC or importer—who requests the bank to issue the credit. which is also known as “documentary credit”. d) The beneficiary or exporter—who is entitled to receive payment on presenting the documents. (ACBL in this case). Both these parties may not know each other.100% Following documents are required to be submitted in original to the authorized dealer (e. iii. ii. Visa Imports: In international market. .o For 2 to 12 years old ------. commodities are traded through importer and exporter. the parties involved are: a) The buyer.
facility in payment is allowed to the importer. . This facility could be allowed by LC opening bank as well as exporter. Irrevocable LC: In this type of LC. the payment is to be made on presentation of bill of exchange.A. basis.90 or120 days.• • Revocable LC: This type of LC can be cancelled or amended by the importer at any time without the prior notice to the exporter.60. Acceptance LC: In this LC. This includes payment on 30. • • Sight LC: In this type of LC. the issuing bank gives a binding or definite undertaking to the exporter that the Importer will pay against documents. D. Internship Report on Askari Commercial Bank Ltd. Such an LC can only be amended or cancelled with the consents of all parties involved in letter of credit.
Exporter fills it. Internship Report on Askari Commercial Bank Ltd. declaring the particulars of his intended exports and brings it back to the bank. • The “E” form is certified by checking details like export registration number. retaining the original after endorsement of shipment on the relative portion of ‘E’ form.Requirements and main steps involved in imports: • • • • • The importer has to be registered with EPB (Export Promotion Bureau). designation. Exports: Requirement for export registration: For a person exporting good for his firm. the following requirements must be fulfilled. name and complete address of exporter. name and address of foreign buyer (importer). (ACBL in this case). The issuing bank checks all the other relevant documents. • • • There must a current account of his firm in Pak rupees. value of invoice mentioning the currency. along with the application for LC. the documents held by bank are issued to him. Procedure of export: • Exporter bank (in this case ACBL) issues E-form quadruplicate to the exporter. • • After certification of ‘E’ form it is submitted by the exporter along with shipping bill to the customs authorities for clearance of consignment. He should have NTN (National Tax Number) certificate. Earlier registration of the exporter with EPB (Export Promotion Bureau) was also must. to ensure that he is a taxpayer. Three copies of ‘E’ form are returned by the customs authorities. . • When importer pays the amount. and opens PAD (Payment against document) account for its customer. Issues credit for the importer. He should be a taxpayer. terms of payment. mode of transportation. which is sent to the exporter through correspondent bank. but this condition is lifted now to encourage exports. Importer should have account with the issuing bank. verification of exporter’s signatures.
some of which are described here: Running Finance: Internship Report on Askari Commercial Bank Ltd. 6. ACBL provides many types of facilities for the borrowers. • The exporter’s bank (ACBL) sends the documents to the correspondent bank in the country of importer for presenting the bill to the importer. generally commercial institutions and so their basic purpose is profit making. Banks accept deposits and pay interest on them. and obtaining payment. Advancement of loans 2. Moreover. Issuance of Letter of Credit 3. Issuance of Debit Cards 6. along with other documents for negotiations within 14 days from the date of shipment. Issuance of Letter of Guarantee 4.5 Advances department: Banks are. The main functions of the Askari Bank’s advances department are: 1. . The rate of mark-up charges on loans advanced is higher than the interest rate on deposits paid to account holders. Issuance of Credit Cards 5. use these deposits for advancement of loans and investments.• The quadruplicate copy is retained by the exporter while the duplicate and triplicate copies are submitted to the bank (ACBL). And this difference is the profit for the bank. Cash Management Advancement of loans: ACBL advance loans to: • • • • Individuals Corporations Army personnel Staff at different conditions and securities depending on the facility provided.1.
is held by bank as security. till its payment by customer. Great care is required on the part of banker while accepting a security for securing its loans. Army has placed a sufficient amount in the bank. Term Finance (GHQ): It is the credit facility for the army personnels. The difference between running finance and cash finance is that of security. In ruing finance hypothecation of stock is done and in cash finance pledge of stock is done. otherwise there’s no markup. documents representing title of goods shipped by foreign exporter. Until the realization of the amount. Staff Finance: It is the credit facility available for the staff of Askari commercial bank for buying home. granted to businesses to meet running expenses. keeping in mind: • • • • • • Adequacy of margin Marketability of securities Completion of documentation Store ability Durability Stability in price The common securities are: Internship Report on Askari Commercial Bank Ltd. car or other personal requirements. Types of securities: Different types of securities are required for different kinds of advances facilities. and the army personnel who brings a letter form army is given the loan. If the current account is in debit. pays the exporter’s bank and debits the PAD account. Payment Against Documents (PAD): The bank being the issuing bank on the customer’s behalf of a letter of credit. the client has to pay the markup. The limit is given against the current account of the client. Personal Finance: It is credit facility for individuals bearing a mark-up of 12%. Cash Finance: These are advances granted on short-term basis against security. .It is a credit facility.
• Assignment of Salaries: The salary of an Army personnel who has availed the loan fancily must come in ACBL counter till the abort is fully repaid to bank. Then a CSA (credit sanction advice) is prepared for him that tells about the borrower. with Branch credit committee having lowest discretionary powers and board of directors having highest discretionary powers as to the amount of loan sanctioned. Loan Pricing: The markup rate of the credit extended is negotiable. security or margin against it. the mark up rate may be low. and whether it has any other charge by another bank or not etc. its present and forced sales value. The advances department has to ensure that the documents are complete and valid. purpose of facility. and for a very risky or small client.• Pledge: In pledge the ownership of pledged goods remains with borrower but the bank has exclusive right of ownership till the repayment of advanced amount. it may be high. Loan Advancement procedure: On receipt of application for loan from client. iii. Internship Report on Askari Commercial Bank Ltd. which are: i. Lending committee in ACBL: The lending committee consists of four levels. depending on the risk involved (and security). However bank has a charge on it. It must be confirmed that the asset that is mortgaged or pledged is at good location and for its marketability. both the ownership and possession remains with the borrower. ii. If the prospective client has a low risk and is strong enough. the advances department interviews a person to judge his credibility to some extent. his business. . • Hypothecation: In hypothecation. the repayment mode etc. Branch credit committee Credit committee at head office Executive committee Board of Directors Each successive level has higher discretionary power of approving the loan sanction than the previous level. iv.
the bond is forfeited. which is another non-fund based facility for its customers. If the contractor is awarded and the contractor fails to take it up. Issuance Of Letter Of Guarantee: ACBL also provides guarantee on belief of its customer. These are issued by a bank to avoid the deposit of earnest money by its customers when they tender for contracts. • Shipping Guarantee: Shipping Guarantees are issued to enable customers to obtain delivery of goods without surrendering the relative bill of lading. Usance letter of Credit: Drafts drawn under usance LCs are for tenure specified in the LC and are payable by the customer on due data. Banks issue guarantees to shipping companies for release of goods in the absence of shipping documents. • Financial Guarantee: These are guarantees given by the bank to financial institutions and companies under taking to pay the debt of its customer in the event of default by the customer. Broad classification of LC is: • • Sight letter of Credit: It calls for the draft to be drawn at sight.Issuance of letter of Credit: Letter of credit is a non-fund based facility provided by the bank. Issuance of Credit Cards: Askari Master Card (Credit Card) is another credit facility of ACBL for its customers. There are two types of Askari Master Cards: Internship Report on Askari Commercial Bank Ltd. Letter of Guarantee (LG) can broadly be classified as follows: • Tender Guarantee or Bid Bonds: Tender Guarantee is to ensure that the contractor is a serious bidder. • Performance Guarantee or Performance Bonds: A bank on behalf of its customer who has entered into a contract to supply goods to perform other services issues these and they guarantee compensation in terms of money in the event of non-performance of such contracts. which is used for trade by the clients. . Documents received against sight are held as security till their retirement.
Silver Card: with maximum limit of Rs.155,000 and annual charges of Rs.2000. Gold Card: with maximum limit of Rs.300,000 and annual charges of Rs.3500.
Supplementary Cards: The customer applying for Askari Master Card can also apply for Supplementary Cards for his immediate family members over the age of 18 at an annual fee of, o Rs.750 for Silver Card o Rs.1500 for Gold Card These cards can be used for different kinds of purchases and special discounts are also offered to the cardholder at selected places. The billing is done through amortization list on which billing month and amount and amount are mentioned. The customer can pay the whole bill for the month together, but if he does not want to do so, he will have to pay at least 5% of the bill amount in the month in which it incurred. Issuance of Debit Cards: Ask Card (Debit Card) is the facility available to the ACBL account holder. It gives customer the freedom to access his Savings, Current or ASDA Account at merchant locations and ATMs. Whenever he makes payments, the amount is instantly debited to his account. In case of Ask Card, the account balance is the spending limit of the customer. Since a customer is spending his own money, there is no interest charged. Every purchase and ATM withdrawal will appears on the monthly checking account statement of the customer, including the date, place and amount. There is a monthly fee of Rs.200 for this facility. Cash Management: ACBL provides cash management facility to its sister concern Askari Leasing for products as Askar. ACBL receives cheques from customers who have availed the Askar facility, and performs the functions of clearing and internal transfer of amount for Askari Leasing.
6.1.6 Accounts department:
Internship Report on Askari Commercial Bank Ltd.
The basic function of this department is checking that there is proper accounting of assets and liabilities of the bank. All banking activities pass through this channel. This department co-ordinates all the banking activities of various departments. The important function of ACBL’s Accounts Department includes: Pre-Audit Checking: The main function of this department is pre-audit checking of all the bank transactions. This department keeps check on all transactions, which are recorded in other departments. Daily position report: For the purpose of reporting to the head office, it prepares daily position report of the current position of the banks assets and liabilities. Assets are the property of the business, which includes cash, investment, loans and discounts etc. while the liabilities which indicate the rights of the creditors into the assets of the business includes capital, reserves, deposits, acceptances etc. Preparation and disbursement of salaries: Another responsibility of the Accounts Department is preparation and disbursement of salaries. It is also concerned with the maintenance of employees accounts of provident fund. Expenditure provisioning: This is also an important function of the Accounts Department. It depreciates the assets of bank at a fixed rate each month. The cost of assets is depreciated on the written down value method except for the vehicles carpets and renovations which are depreciated on straight line basis: Fixed Assets Vehicles Carpets Furniture Machine and Equipment Computer Maintenance of branch premises: 20% on Cost 20% on Cost 20% on Cost 10% 20% 20%
The record of all these depreciation is maintain by this department.
Internship Report on Askari Commercial Bank Ltd.
Maintenance and repair of the bank vehicles is also the responsibility of the Accounts Department. Supply and handling of stationery: Another responsibility of the Accounts Department is to meet all the stationery requirements of the bank. Vouchers: Custody of daily vouchers is the sole responsibility of the Accounts department. It is an important function because voucher is a written evidence of any banking transaction. Old record preservation and destruction is also important function of this department. Medical Allowance: ACBL provides the medical allowance facility to its employees. The employees can avail 10% of their basic salary on medical expenses for the whole year. Statutory requirements: It is the responsibility of the Accounts Department to keep the 5% of its total deposits as balance with SBP, on daily basis. Whenever the balance falls below the 5% mark, it is the responsibility of the Accounts department to make arrangements and handle the situation. For this purpose, TT discounting facility can be availed by Accounts department. Through this facility, the department can demand up to Rs.6 million at the rate of 16% from SBP to maintain its statutory balance. In case the bank’s statutory balance goes above the 5% mark, the department sends the excess amount to ACBL Karachi and the branch gets 12.5% commission on it. Clearing: Accounts Department keeps clearing register regarding clearing house which consists two types of entries: i. ii. Inward clearing Outward clearing
Inward clearing: Inward clearing means record of all those checques which are being received by the bank in first clearing. All details of checques are recorded in clearing register. Outward clearing: Outward clearing means the detail of checques that bank has delivered to other banks in first clearing. Details of checques are recorded in the clearing register.
Internship Report on Askari Commercial Bank Ltd.
2. The computer database in branch helps to keep record of all transactions taking place. The analysis would answer questions like: • • • Is the business expanding or contracting? Is it more profitable than last year or less profitable? How efficient is the capital employed in the business being utilized? Internship Report on Askari Commercial Bank Ltd. and it’s financial strengths and weaknesses. Also handles automated teller machines. Besides showing the ability of the business to service the loans on the strength of its financial structure and on the history of its profitability. PURPOSE OF THE FINANCIAL ANALYSIS The analysis of Financial Statements (FS) is to examine the past and current financial data so the company’s performance and financial position can be evaluated and future risk and potentials can be estimated. income statement discloses. helps in judging the impact of financial and fiscal support and in evolving a secured business. . The analysis can yield valuable information about trends and relationship.Computer Department. FINANCIAL ANALYSIS 8. Daily operations are based on their system UNIBANK. liquidity or solvency etc. 8. Financial statements among other things include balance sheet and income statement. for example. the commercial banks are mainly interested in short term liquidity and profitability while prospective investors may be interested in long terms liquidity and solvency. the quality of a company’s earnings. Different classes of people are interested in the financial statements with a view to assessing the economic and financial position of any business or industrial concern in term of profitability. how the business has been conducted and determines factors behind a decline in the net worth. INTRODUCTION The importance of financial statement’s analysis lies in their utility to satisfy the question in the mind of stakeholders. It was purchased from United Bank. Balance sheet presents assets and liabilities of the business at a given date.1.
• Does the business have any financial problem? • • • • Be acquainted with business practices Understand the business and accounting terminologies Be aware of accounting conventions and limitations of accounting Be acquainted with the tools of analysis of financial statements. To evaluate financial statements. a dollar figure for an account is expressed in terms of that same amount figure for a selected base year. Horizontal Common Size Analysis Balance Sheet as at December 31 (Rupees in thousand) 2004 2003 2002 Internship Report on Askari Commercial Bank Ltd. Relationship. a figure from the year’s statement is compared with a base selected from the same statement. relationship between relevant figures must be examined. The Common Size analysis of ACBL is as follows with 2002 selected as the base year. Relationships. Common Size analysis and Trend Analysis. evaluate the effectiveness of the operational policies. which help. which help. There are two types of common size analysis. In vertical analysis. . COMMON SIZE ANALYSIS: Common-size analysis involves expressing comparisons in percentages. Relationships. vertical and horizontal. which reflect the effectiveness of the financial policies adopted and the potential fund raising ability. find the liquidity of the business. To obtain meaningful information. To achieve the aim. we undertake Ratio Analysis. For instance. do not tell the whole truth. In horizontal analysis. an analyst must: IMPORTANCE OF FINANCIAL ANALYSIS The figures in financial statements.
7 5279.5% 71.0 100.0 100.0% 100.9 137.0% 140.6% 100.6 230.0% 100.0 % 100.0 100.3% 83.3% 125.8 136.0 100.0 100.0 100.7 167.0% 127.8 192.5% 5281.ASSETS Cash and balances with other banks Lending to financial institution Investments Advances Other assets Operating fixed assets 100.0 99.2 273.0% Internship Report on Askari Commercial Bank Ltd.5% 105.4 129.9% 100.0 100.0% 190.0% Total shareholder’s Equity 120.9% 100.0% 100.1% 282.5 150.0 144.6 125.0% 203.6 186.0 228.3 187. .0 100.2 78.0% Total Assets LIABILITIES Bills payable Borrowing from financial institution Deposits and other accounts Other liabilities Total liabilities SHAREHOLDER’S EQUITY Share capital Reserves Surplus on revaluation of assets 304.3 166.0 137.3 188.0 100.
5% 100.7% 11.0% 40.5 100.4% 4.4 100.4 1.0% 0.8 76.1 2.0% 1.2 3.2% 59.Vertical Common Size Analysis Balance Sheet as at December 31 (Rupees in thousand) 2004 2003 9.6% 54.0% 46.9 38.0% 2002 18.6 100.0% ASSETS Cash and balances with other banks Lending to financial institution Investments Advances Other assets Operating fixed assets Total Assets 10.3 78.3% 8.6 85.0% LIABILITIES Bills payable Borrowing from financial institutions Deposits and other accounts Other liabilities Total liabilities SHAREHOLDER’S EQUITY Share capital Reserves Surplus on revaluation of assets Total shareholder’s Equity Internship Report on Askari Commercial Bank Ltd.0% 1.5% 27.0 42.6 2.2% 19.7 2.7 2.7% 100. .8 25.7 2.0% 0.0% 17.7% 22.9% 6.3 100.6 1.9 52.7 3.4 100.0% 22.0% 26.8 100.1 22.9 45.3 100.
Share capital is increased by 5% in 2003. Cash and balances with other banks has declined in 2003 but increased again in 2004 and reached to the same level as in 2002. increase in advances shows that deposits have been efficiently utilized. . And. Whereas. it can be seen that advances and investments make the major portion of total assets followed by cash and balances with other banks. total assets have shown a continuous growth for the period under analysis. which is also evident from the vertical analysis that above 75% portion of total liabilities consists of deposits and other accounts. However. From vertical analysis.Common Size Analysis Of Balance Sheet: For horizontal analysis 2002 has been taken as base year. the percentage of cash and balances in total assets has declined by 7. Whereas. in which deposits and other accounts show a growth of 50% from 2002 to 2004. and another 5.7% (from 45.4% in 2004). advances have shown an increasing trend through out the period. The percentage of advances in total assets has increased by 6. Lending to financial institutions also declined in 2003 but increased in 2004.3% in 2004. As deposit mobilization is considered as one of the major functions of banks. which is a very positive sign as banking business mainly earns profit from the difference in the mark-up earned on advances and interest paid on deposits. Investments increased in 2003 but decreased in 2004 due to lesser investment opportunities in the year. Horizontal Common Size Analysis Profit and Loss Account for the Year Ended December 31 (Rupees in thousand) FUND BASED REVENUE Non-fund based revenue 2004 96% 120 100% 48% 109 168 2003 114% 106 113% 104% 124 128 2002 100% 100 100% 100% 100 100 Total revenue Mark up/return/interest expensed Provision against non-performing loans and advances Non-markup/interest expenses Internship Report on Askari Commercial Bank Ltd.7% in 2002 to 52. Total liabilities also shows increase from 2002 to 2004.4% for the same period.
Finally.Total expense Profit before taxation Taxes Profit after taxation Vertical Common Size Analysis of 77% 189 174 201 110% 123 122 125 100% 100 100 100 Profit and Loss Account for the Year Ended December 31 (Rupees in thousand) Fund based revenue Non-fund based revenue Total revenue Mark up/return/interest expensed Provision against non-performing loans and advances Non-markup/interest expenses Total expense Profit before taxation Taxes Profit after taxation 2004 81% 19 100% 27% 6% 29% 62% 38% 16 22% 2003 85% 15 100% 53% 6% 19% 78% 22% 10 12% 2002 84% 16% 100% 57% 6% 17% 80% 20% 9% 11% Common Size Analysis Of Income Statement: By taking 2002 as base year. as above 80% portion of total revenue is fund-based (from vertical analysis). while non-markup/interest expenses have increased. but declined in 2003 and came to almost the same level as base year. but fund-based revenue is decreased in 2004 responsible for decrease in total revenue. From horizontal analysis it can also be observed that mark-up/interest expenses have declined considerably in 2004 as compared to base year. profits have doubled in 2004 as compared to 2002. the net impact on total expenses is a decline of 22% in 2004 as compared to 2002. . even a bit more progressive. from horizontal analysis it can be seen that total revenue has increased in 2003. which can be described as a result of decrease in total expenses. Internship Report on Askari Commercial Bank Ltd. However an increasing trend can be seen in nonfund based revenue. However.
902 80. and is almost same as non-markup/interest expense. figures on the Balance Sheets and Income Statements. Current ratio of ACBL for three years is: Current Ratio = For 2002: Current Assets Current Liabilities 60.448 Current Ratio of ACBL 2.From vertical analysis. Current Ratio 0. solvency and profitability. its contribution has been halved.346 68.060 For 2004: 107.7 Year . the major portion of total expense was due to mark-up/interest expense. Different kinds of ratios are selected for different types of situations.943. The profit after taxation in 2004 is also highest in the three years under analysis.9 1. it can also be seen that for 2002 and 2003.88 2002 2003 2004 Internship Report on Askari Commercial Bank Ltd.09 = 0. Some of the ratios calculated for ACBL are given below: Current Ratio: Current asset and current liabilities comparison given gives an indication of the short term debt paying ability of an entity. RATIO ANALYSIS: Ratios provide the means of showing the relationship.06 1. The analysis is undertaken to assess important characteristics of business like liquidity.386.473.04 = 1. A study on these aspects enables drawing conclusions as to financial requirements and capabilities of business units Ratios may be classified in a number of ways to suit any particular purpose.88 = 1.06 1.167.340.966 For 2003: 85.8 0.0 0. which exists between.151. but in 2004.541 101.04 0.
but it is a very good sign that the bank has placed less in current assets and utilizing the resources it has. 2004.06. This is in addition to balance with other banks and cash in till to meet its immediate liquidity requirements and contingencies. the t. assets of 40. which mainly comprise of treasury Bills and Pakistan investment bonds. . This is to meet its immediate liquidity requirements and contingencies. Internship Report on Askari Commercial Bank Ltd. As at December 31. as liquidity reserve. These securities can be readily sold to raise liquidity if the need arises.64% were in risk free form and readily encashable. On the other hand the bank has ensured its liquidity by maintaining a minimum of 5% of its demand and time liabilities with the SBP. Though the current ratio of ACBL is only 1. in current account.The principal objective of the funding policy of ACBL is to ensure liquidity (or shortterm debt paying ability) at all time across market cycle and through periods of financial stress. In addition. the bank maintains a large portfolio of gilt-edge securities.
85 18.279 = 20. and help to determine how well creditors are protected in case of insolvency of the entity. . and is a comparison of an entity’s total assets to total liabilities. It indicates the percentage of assets that were financed by creditors.59 2002 2003 2004 Year The debt to equity ratio has increased from 2002 to 2003.409 3.060 3.401.340. which means that the contribution of debt in financing assets has declined and the contribution of Share holder’s equity in financing assets Internship Report on Askari Commercial Bank Ltd.550 For 2004: 80.026.019 For 2003: 66.Annexure-II ACBL Branch Network Debt Ratio: Debt ratios determine the firm’s ability to pay long-term debts.557.85 in 2003 to 20.85 =18.140.901.93 GRAPH 7.93 24 22 20 18 16 20.2: Ratio Debt to Equity Debt to Equity Ratio of ACBL 21. Debt to equity ratio = Total Debt Shareholder’s Equity For 2002: 48.59 in 2004. but it has declined from 21.674 2.59 =21.
409 x 100 70.392 For 2003: = 66. Debt to Total Assets Ratio Year .060 x 100 85.401.674 50. Debt to Total Assets ratio= Total Debt Total Assets For 2002: = 48. There was a 27% increase in Shareholder’s equity in 2004.Annexure-II ACBL Branch Network has increased. which shows the increased confidence of Share holder’s in the bank.140. Debt to Total Assets Ratio: It shows the percentage of firm’s assets that are supported by debt financing.340.980.902 =94% =94% x 100 =95% GRAPH 7.3: Debt to Total Assets Ratio of ACBL 96% 95% 94% 94% 95% 94% 93% 2002 2003 2004 Internship Report on Askari Commercial Bank Ltd. and is calculated as follows.313.073 For 2004: = 80.386.
. However.Annexure-II ACBL Branch Network This ratio is quite high and almost stable over years for ACBL. Internship Report on Askari Commercial Bank Ltd. the debt to total assets ratio for other banks also shows a similar trend. It shows that 94% of the bank’s assets are being financed by debt financing.
506 4. Internship Report on Askari Commercial Bank Ltd.715 – 1.858.859 4.858.016.073.715 x 100 = 66% x 100 = 38% x 100 = 32% GRAPH 7.250.379.902.609 4. – 2.250.251 For 2004: 4.916.4: Interest Margin Ratio of ACBL 80% 66% 32% 38% 2002 2003 2004 Interest margin of ACBL has improved.916 For 2003: 4.251 – 3. Interest Margin Ratio 40% 20% 0% 60% Year .073. which indicates management’s efficiency to attract less costly deposits and high yield investments.Annexure-II ACBL Branch Network Interest Margin Ratio: Interest margin ratio is computed as: Interest Margin Ratio= For 2002: Interest Income – Interest Expense x 100 Interest Income 4.
019 For 2003: 686. ACBL is maintaining high return on equity.557.Annexure-II ACBL Branch Network Return on Equity (ROE): ROE measures net profit after taxes to the equity that shareholder’s have invested in the organization.103.550 For 2004: 1. It is the primary measure of how well management is running the entity.901.994 3. ROE for ACBL for different years is: Return on Equity = Profit after Tax Shareholder’s Equity For 2002: 550. rather it has increased in 2004 from 23% to 28% while maintaining a strong financial Internship Report on Askari Commercial Bank Ltd. Return on Equity 20% 10% 0% Year .279 x 100 = 28% x 100 = 23% x 100 = 22% x 100 GRAPH 7.065 3.5: Return on Equity of ACBL 30% 22% 23% 28% 2002 2003 2004 ROE measures the overall efficiency of a company in managing its total investments in assets and return to its shareholders.051 2.026.
. effective risk management.Annexure-II ACBL Branch Network position. funding and equity management. Achieving this objective relies on efficient deployment of capital and other resources. and sound liquidity. Internship Report on Askari Commercial Bank Ltd.
40% 0. Assets For 2002: 550. RoA for ACBL is as follows.00% 1. RoA is an indicator of the profitability of the bank.29% x 100 = 0. Return on Assets = Profit after Tax T.80% 0.073 For 2004: 1.902 x 100 = 1.051 50.6: ACBL has almost maintained its RoA over the years.980. The slight increase that can be seen in this ratio indicates the success of management to utilize the assets of the bank efficiently.313.00% 0.98% x 100 = 1. .20% 0.98% 2002 2003 2004 Return on Assets Year Internship Report on Askari Commercial Bank Ltd.08% 0.08% x 100 GRAPH 7.386.60% 0.29% 1. Return on Assets of ACBL 1.103.994 70.065 85.392 For 2003: 686.40% 1.Annexure-II ACBL Branch Network Return on Assets (RoA): RoA shows the after tax earnings on assets.20% 1.
777.291.731.00% 56. Internship Report on Askari Commercial Bank Ltd. which is a very good indication of attracting more customers to get loan and thus resulting in higher profit from this source for the bank. to Deposits LoanRatio Year .200.7: Loans to Deposits Ratio of ACBL 80.53% 58.538 61.62% x 100 = 58. This ratio for ACBL is: Loans to Deposits Ratio = Loan Deposits For 2002: 23. specifically from 2002 to 2003.484 51.00% 20.166 For 2003: 30.367 41.00% 40.62% 2002 2003 2004 There is an increase in the ratio.00% 60.607 x 100 = 72.06% x 100 = 56. as the difference in markup earned on loans advanced and interest paid on deposits is the profit for the bank.06% 72.00% 0.53% x 100 GRAPH 7.Annexure-II ACBL Branch Network Loan to Deposits Ratio: This ratio shows the percentage of deposits mobilized that have been advanced as loans.506 For 2004: 44.035.656.
.Annexure-II ACBL Branch Network Internship Report on Askari Commercial Bank Ltd.
737.607 x 100 = 35.731.656.85% 2002 2003 2004 This ratio has increased from 2002 to 2003.425 61.68% x 100 = 28.85% x 100 = 51. but still higher than 2002. but than decreased in 2004.41% 35. it shows that that investment of the bank has decreased in securities.00% Year 51.506 For 2004: 22.200.Annexure-II ACBL Branch Network Investment to Deposits Ratio: Investments to deposits ratio shows the percentage of deposits of the bank that have been further invested to earn profit.00% 20.329 51.705.68% 28.8: Investment to Deposits Ratio of ACBL 60.00% 0. Deposits Ratioto Investment .41% x 100 GRAPH 7. which was due to less inv Profit margin: Net profit after taxes divided by Internship Report on Askari Commercial Bank Ltd.104. However.00% 40.166 For 2003: 26. For ACBL this ratio is: Investment to deposits ration = Investment Deposits For 2002: 11.885 41.
9% Internship Report on Askari Commercial Bank Ltd.994 5.047.065 5.Annexure-II ACBL Branch Network total income for a given 12 –month period expressed as percentage gives profit margin. Profit Margin = For 2002: For 2003: For 2004: Net Income Total Income 550.103.198 686.04% x 100 = 10. .051 5.94% x 100 = 12.027.468 x 100 = 21.704.198 1.
its profits. which is attributable to the efficiency of the management.00% 20.90% 12. deposit mobilization. As ACBL is a fast growing bank. TREND ANALYSIS: Using the past history of an organization for comparison is called trend analysis.04% 21.00% 10.00% 5.00% Year 2002 10. number of employees and branches show a constant increase. Profit Margin 2003 2004 A Decade of Performance 1996 1997 1998 1999 2000 2001 2002 2003 .00% 0.Annexure-II ACBL Branch Network GRAPH 7.94% The profit margin of ACBL has increased over the three years period. volume of business transacted. which is a positive trend for the bank as it shows that not only revenue collection has increased but also indicate an increased control over expenditures. Trend analysis helps in finding whether the elements selected for analysis show a constant growth.00% 15.9: Profit Margin of ACBL 25. December 31 1994 1995 Internship Report on Askari Commercial Bank Ltd. assets. decline or goes up and down over a period of time.
0 21. in billion 40.Annexure-II ACBL Branch Network Rs.70 9 6.9 19.8 2.3 18.991 2.778 22.104 7.88 8 28.41 7 9.723 58 GRAPH 7.21 1.473 9.5 20.456 46 9.6 4.85 1.31 1.29 2 11.2 30.36 0 17.651 38.173 17.90 946 26 3.051 9.8 311 19.75 1.9 20. in million) 1200 1000 800 687 551 359 316 1.2 13.0 3.8 85.7 56.38 1.001 28 3.2 48.8 6.137 11.8 14.3 24.3 4.02 7 17.73 2 30.48 2 9.70 6 50.0 359 23.0 Rupees Earning per share (EPS) Net assets per share Number of employees Number of branches 3.7 10.05 6 8.20 0 23.2 16.2 47.6 19.3 14.3 17.8 551 41.3 316 30.542 2.32 38.98 0 32.103 Internship Report on Askari Commercial Bank Ltd.103 61.35 796 23 3.281 36 6.89 3 8.35 8 13.350 12.73 1 11.9 6.147 29 5.66 44.1 4.27 664 18 2.78 6 7.0 465 13 3.03 5 26.679 31.45 4 26.2 687 51.7 17.2 282 24.0 38.4 Imports Exports Guarantees 4.2 2.115 6. in million Profit Customer Deposits Advances Investments Total Assets 145 173 238 14.387 3 Rs.10 PROFIT Profit (Rs.8 5.851 4. Year Profit 600 400 200 145 173 238 311 282 Profit 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 .708 13.64 996 27 2.77 4 24.657 44.12 6 7.90 1.141 6.73 7 70.5 22.07 1 8.
000 51. 20 00 20 01 19 98 20 04 19 99 Customer Deposits 40.126 23.732 41.000 10.482 14.051 9.360 19.358 61.000 Customer Deposits 0 .000 20.Annexure-II ACBL Branch Network GRAPH 7.200 30.851 50. in million) 70.657 20 02 20 03 19 96 19 97 19 95 Year Internship Report on Askari Commercial Bank Ltd.000 60.417 24.11: Customer Deposits (Rs.000 7.000 30.
991 7.000 20.000 5.893 23. in million) 50.292 30. Advances Advances 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Year .Annexure-II ACBL Branch Network GRAPH 7.000 0 4.000 45.000 35.056 17.000 30.000 10.000 40.137 9.115 9.000 25.035 44.708 13.778 Internship Report on Askari Commercial Bank Ltd.12: Advances (Rs.141 6.000 15.
in million) 30.774 8.000 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2.000 25.000 22.173 Investments ACBL Branch Network 26.000 10.000 10.679 8.651 6.000 13.473 GRAPH 7.173 5.706 Investments Investments Year Internship Report on Askari Commercial Bank Ltd.542 2.000 15. .104 20.104 5. in million) Annexure-II 30.888 11.737 22.651 11.542 2.679 8.473 13.000 20.774 11.000 6.000 15.706 8.000 2.13: Investments 0 1994199519961997199819992000200120022003 Year Investments (Rs.000 26.888 11.Investments (Rs.737 25.
000 20.786 17.000 70. Total Assets 60.731 31.000 80.454 50.027 38.350 1995 12.000 70.000 50.000 0 9.000 10.709 24.000 40.313 85.000 30. in million) 90.071 28.387 Internship Report on Askari Commercial Bank Ltd.14: Total Assets (Rs.Annexure-II ACBL Branch Network GRAPH 7.980 Total Assets 1996 1997 1998 1999 2000 2000 2001 2003 2004 Year .
9 6.Annexure-II ACBL Branch Network GRAPH 7.5 40.7 Internship Report on Askari Commercial Bank Ltd. in billion) 60 50 40 32 30 20 10 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 7. Imports Imports 4.2 48.2 17.7 8.5 26.2 Year .7 11.15: Imports (Rs.
Exports 6.3 38.1 1996 1997 1998 1999 2000 Year 2001 2002 2003 2004 .8 1995 10.8 Exports Internship Report on Askari Commercial Bank Ltd.16: Exports (Rs.2 13.Annexure-II ACBL Branch Network GRAPH 7.6 17.8 47. in billion) 60 50 40 30 20 10 0 56.3 20 22.8 30.
2 5.2 4.4 Internship Report on Askari Commercial Bank Ltd.3 4.8 6. Guarantees 6 4 2 0 1995 1996 1997 1998 1999 2000 20001 2002 2003 2004 2 2.8 10 8 Guarantees Year .17: Guarantees (Rs. in billion) 16 14 12 14.Annexure-II ACBL Branch Network GRAPH 7.2 14.8 4 3.
32 5.18: Earning per share (EPS) of ACBL (Rupees) 12 10 8 9.6 2.66 20 00 19 95 19 99 20 01 19 96 20 02 19 97 19 98 Year Internship Report on Askari Commercial Bank Ltd.Annexure-II ACBL Branch Network GRAPH 7.3 2.9 3 6. 20 03 20 04 EPS 6 4 2 0 3.2 3.3 3.9 3.3 Earning per share (EPS) .
27 19. Net Assets per Share 16 17.85 24.75 Net assets per share Year .19: Net Assets per Share of ACBL (Rupees) 50 45 40 35 30 25 20 15 10 5 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 21.9 19.35 18.38 44.21 Internship Report on Askari Commercial Bank Ltd.Annexure-II ACBL Branch Network GRAPH 7.9 38.64 20.
Annexure-II ACBL Branch Network GRAPH 7.147 1.20: Number of Employees of ACBL 2000 1800 1600 1400 1200 1000 800 600 400 200 0 1. of Employees 465 .001 1.456 946 996 1. 20 02 20 03 20 04 19 19 No.723 1.281 664 796 Number of employees 19 96 95 97 19 98 19 99 20 00 20 01 Year Internship Report on Askari Commercial Bank Ltd.
Annexure-II ACBL Branch Network GRAPH 7. No. of Branches 30 20 13 10 0 40 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Year .21: Number of Branches of ACBL 70 60 50 46 36 18 23 26 27 28 29 Number of branches 58 Internship Report on Askari Commercial Bank Ltd.
Annexure-II ACBL Branch Network 7. in million 2002 Operating Profit Deposits Advances Foreign Trade 23 2. advances and foreign trade for the north region.134 832 2.943 501 2.4 TREND ANALYSIS OF NORTH REGION: Growth in operating profit.893 2003 53 2.6: Rs. . Peshawar Cantt is given below for three years (2002-2004).428 2004 45 3.133 GROWTH 2002-2003 130% 18% 0% 28% Growth 2003-2004 -15% 6% 66% -12% Internship Report on Askari Commercial Bank Ltd. which also comprises of Askari Commercial Bank. deposits.489 502 1. TABLE 7.
The repatriation of Afghan refugees.Annexure-II ACBL Branch Network GRAPH 7. in million Operating Deposits Advances Profit Foreign Trade 2002 2003 2004 As described earlier in the report as well. weaknesses. particularly advances. which were a major source of deposits and allied businesses. In other areas of business. the Region achieved significant growth attributable to the untiring efforts of the Region’s team. the negative growth in 2004 is due the . are the main factors that have resulted in a loss of business in the region. Strengths and weaknesses are internal factors and an organization has much more control over it as compared to opportunities and threats.22: 3500 3000 2500 2000 1500 1000 500 0 adverse effects of developments in Afghanistan. Rs. On the other hand. SWOT ANALYSIS SWOT analysis stands for the analysis of strengths. opportunities and threats to an organization. the relocation of various western NGO operations from NWFP to Afghanistan. who were a major source of economic activity. opportunities and threats exist outside the organization and an organization can avail opportunities or can make itself safe from threats through a Internship Report on Askari Commercial Bank Ltd.
• • Askari Bank gives its shareholders one of the best earning per share in the banking industry of the country to gain and retain their trust and confidence. This bank offers phone banking service. Following is the SWOT analysis of Askari Commercial Bank Ltd.Annexure-II ACBL Branch Network vision of future. . Internship Report on Askari Commercial Bank Ltd. making planned use of its resources or adoption of other policies that in the end results beneficial for the organization. • The first offshore banking unit (OBU) of ACBL has started operations in Bahrain. thus also providing services to Pakistanis outside the country. The bank has access to all parts of the world through its foreign corresponding banks. so its another innovative feature of the bank. This is evident by the lowest employee turnover and the fact that most of the top management have reached their present position by growing within the organization. every employee is made to feel that he is responsible for the performance and reputation of the bank and thus by motivating them. • ACBL’s customers can now pay their telephone bills via the bank ATM network.000 customers by providing business loans and cash management services and has developed innovative investment and loan product for the individual savers and households. internet banking services. and e-commerce solutions to its customers. employees have become a strength of the bank. or over the internet. • ACBL has developed a relationship of trust in a friendly environment with its over 350. • ACBL believes that the interests of the bank and the employees are inseparable and through creating a “we” culture. STRENGTHS: • • ACBL’s delivery channels for customer service are supported by a shared network of over 250 on-line ATMs covering all major cities in Pakistan. and it is the first bank to offer on-line banking on a country-wide basis. which provides a platform for ACBL to benefit from the business opportunities available in the international market.
• Unequal distribution of work leads to work place differences. Askari Bank should also become part of this trend to capture another segment of society as well. for example different sports events and seminars and conferences such as Young Leaders Conference etc. This forces the bank to enter into agency arrangements with the foreign banks. UBL and HBL provide Hajj and Umrah forms to the general public. • The bank has no branches abroad. • • As the trend towards Islamic Banking has been initiated.g. carrying out the dual responsibility of the officer in charge and assistant manager. On the other hand. still it does not market its different products specifically. PICIC commercial bank should also get engaged in such Internship Report on Askari Commercial Bank Ltd. He attends to any technical problem that might occur and does the typing and printing of letters and documents. WEAKNESSES: • Due to having fewer branches. With an ever-increasing competition in the banking sector. • Though ACBL has started marketing on a large scale. and though it is providing almost all services being provided by other major banks still this fewer number of branches is a big hurdle in reaching more customers. . OPPURTUNITIES: • It should open more branches quickly as it is in competition with very stronger banks. there are only two branches so people (e. so many people do not avail these facilities due to lack of awareness. in Town and Hayatabad) may prefer other banks because of being in close vicinity as compared to Askari Bank. Competitors like MCB. Foreign remittances officer is overloaded with work. The officer in charge for account opening and clearing also leaves for the SBP to attend the clearing.Annexure-II • ACBL Branch Network Askari Bank has created goodwill through sponsoring mega events. this weakness can be a major setback for the bank. the IT officer has not much to do. for example in Peshawar.
Annexure-II ACBL Branch Network activities. As more and more people come to the bank they will become familiar with it and feel at ease. which would not keep them long from opening accounts at the bank. Opening new branches in Afghanistan would help increase the deposit base and become a source of earnings. which were a major source of deposits etc.F. • The bank profitability is based on how efficiently it lends the deposits it has mobilized. Internship Report on Askari Commercial Bank Ltd. for example. who were a major source of economic activity in N. • The repatriation of Afghan refugees. With investment made in different developmental projects and different organizations like UNO and UNHCR working in the country new jobs are available for the people.P. specifically.W. however there are not much business activities in the country and the deteriorating political and economic situation can further activate this problem. • The decrease in interest rates by all banks including ACBL has made people to start thinking of other investment opportunities that can prove to be a threat for banks. THREATS: • ACBL has very tough competitors. so to keep itself ahead of them. . Askari Bank has not only to provide all the service being offered by these major banks but also to produce innovative products of its own. in this region has resulted in loss in this region and the repatriation is still going on. National Bank and some others. • Afghanistan is going through a transition phase of economic development. Muslim Commercial Bank. and the relocation of various western NGO operations from Pakistan to Afghanistan.
Annexure-II ACBL Branch Network FINDINGS & RECOMMENDATIONS Every organization even if it is having a very good position financially and through other aspects. branch. On the other hand.2 billion. 39% over FY 2002.2.212. has always room for improvement. the regular customers are also very cooperative. The mobilization of deposits is useful only if utilized further effectively. Peshawar Cantt.1. the post-tax profits increased by 61% to Rs.000 million at the end of 2004. which in fact is to their own benefit as it will not only retain these customers but will also attract more. 3.000 million at end 2004 from Rs. 2. . During the two month’s period that I spent as an internee at ACBL. As far as the bank employees are concerned. Both understand each other’s problems and give time to one another to facilitate each other’s work.250.1 billion. increase in profits for the bank. which is the case for ACBL. Fast Growth The customer deposits of ACBL is increasing at a fast pace. Friendly Environment There is a very friendly and cooperative relationship between bank employees and the customers. FINDINGS: 1. it is their duty to provide services and facilities to their customers. most importantly. Internship Report on Askari Commercial Bank Ltd. ACBL was able to substantially improve their earnings during 2003 and 2004 by posting operating profits of Rs. Askari Commercial Bank is a fast growing organization but still it has many things to improve to capture more market. the matters I found and analyzed and collected information through other sources is presented in the following pages with some recommendations in the end. Increased Profits Despite. to further motivate its employees and other factors that indicate growth and success of the origination. the growth of its deposits was 19% while advances grew by 48% thus rectifying the previous imbalance between advances and deposits. reaching to Rs. an example of which is that customers allowed delay in their work on the request of bank employees when the audit week was approaching. the difficult operating environment.
The reason behind it is that the ATM machine is often out-of-order or either the card doesn’t work properly and the customers are seen complaining about it quite oftenly. that ACBL considers one of its strengths. Double Entry System Every transaction is first entered on paper vouchers and then on computers. Sometimes employees who have high load of work. That generally does not create problems but it leaves room for risk in case the number provided is not correct and some problems arise with the account. It was the load of work that was left and not done as the transactions relevant to these records took place. 7. Information about the balances on telephone is given without collecting much information to ensure that the actual person is on-line. Over Burden Of Work ACBL Branch Network There was lot of burden of work on most of the employees before audit week. Problems Regarding ATM The ATM facility. work not only for more than Internship Report on Askari Commercial Bank Ltd. some employees in the same department are so much over loaded that they have to work over time while other employees in the same department are often seen idle even in the working hours. 8. 9. but they don’t feel much motivated due to this unmatched situation.Annexure-II 4. 6. does not bring so much convenience to the customers as it claims. although they are doing correctly what they are assigned to do. as they had to complete their records to be checked by auditors. i. 10. Lack Of Responsibility According to the rules. . but it is generally seen that no special care is taken in this respect. 5.e. Unequal Work Distribution There is unequal distribution of work. Less Qualified Employees The educational qualifications of some employees is not according to their job. Secrecy problem A bank has the obligation to keep its customer’s affairs secret. telephone call should be made to the new account holder to confirm the phone number that he provides while filling the account opening form but in practice this is not done. Resulting in repetition of work and thus overburden of work on the employees.
Absence Of Job Rotation There is absence of job rotation in the bank. 14. especially during the days when there are two many internees. And in this way. 12. then he is not able to apply for that very confidently for not having experience in that particular department. Moreover it also reduces career opportunities to the workers as he does not know the work of other departments. Insufficient Machinery There are lesser printers than required. and a person placed in one department often remains there for long which decreases his interest in the work.Annexure-II ACBL Branch Network eight hours normal working hours but also have to come for work on holidays without getting any overtime. thus further increasing the burden of work on already few printers. If some better opportunity arises in other banks. . 11. there is more problem in finding a place to sit. which is not among his normal duties and results in loss of time. but if there is some problem in computer and if it stops working or gets stuck. 13. and in this way. 15. but even now they don’t advertise their special products including ASDA (Askari special Deposit Internship Report on Askari Commercial Bank Ltd. No Proper Marketing There was not enough marketing at the time of my internship. and the department without a printer has to rely on another department’s printer. Similarly for other things like sudden arising need for stationary is sometimes not met quickly that slows down the work. it remains so for many days. Lack Of Technical Information There is no proper training provided to the employees about computer technicalities and thus every banker can operate computer to the extent where they can perform normal operations on it. recently they have started marketing specially through electronic media. in a department different than the one the person is currently employed in. have to wait for that printer if it is not free. If a printer goes out of work. Insufficient Accommodation The furniture is not enough to accommodate all the customers and customers are often seen standing while waiting for their work to be done. then they have to call and wait for another person to come and troubleshoot the problem. he has to leave his own work to perform this function.
that has many attracting features. advances. RECOMMENDATIONS 1. . A service desk should be maintained to provide information about various departments. but due to lack of proper marketing of these and other such products. 5. Authority when disturbed should be maintained in such a way that responsibility is equally distributed. markup charges and the beneficial accounts are set to be at proper level. they should increase the area. 2. In order to facilitate the customers it is important that suitable seating arrangements and attractive outlooks are provided to them. products and services offered by bank at every branch. but also by the increase in number of employees and branches. 3. 16. 4. As the branch is over crowded and the space is less. The bank is a fast growing bank. which is evident not only by an increase in deposits. This will facilitate the customers to have more interest in maintaining the accounts. so the crowd is properly accommodated. fewer customers are seen coming for these products. The branch network has increased from 58 in 2003 to 75 in 2004 which is a big break through. For the attainment of profitable account. 6. For promotion and marketing purpose if media services are used through commercials and through print media this can help the promotion of Askari commercial bank in many ways. profits etc. Internship Report on Askari Commercial Bank Ltd.Annexure-II ACBL Branch Network Account) and Askari value plus (another deposit account).
With this reinforcement factor. e. Rewards should be given for their better performances. but still the number of branches is too small and so they should speed-up this pace. As ACBL is a fast growing bank. The audit should be sudden and unannounced and the auditor should check each and every record of the department especially the income and expenditure of the bank should be thoroughly checked. Management by objectives needs to be introduced immediately. but as he did not perform his job properly. 15. . 10. In MBO system there is proper coordination of employees at al levels. While auditing advances. 13. which will also improve relationship between the manager and employees. 11. Benefits should be given. but also open more branches in cities where already its branches exist. The auditor in the bank was responsible to check and keep the work of the bank proper and in-time. It should not only open branches in the cities where there is no ACBL branch. as there will be many customers who will not be coming to this bank because other banks are more easily reachable having branches in University Town and even in Hayatabad. To gain big promotion of customers in market. the auditor should see that advances are sanctioned according to SBP rules and regulations. incentives should be offered to the auditor that in case the audit committee declares good performance of the bank. it is increasing its branches every year. 9. In decision-making everyone should be involved and open discussions should be encouraged.Annexure-II ACBL Branch Network 7. the auditor will be given pay rise or bonus etc. it should open a branch in University Town. So.g. There should be proper job rotation in the branch so that every officer is familiar with the work of all departments. in Peshawar-where it has two branches. product with good attributes should be offered at reasonable price. desirable performance can be obtained and every employee will get fair treatment. It will help improve in the functioning of bank and will lead to greater participation. 14. 12. accordingly. 8. Managers should try to reinforce work on employees in positive ways. the bankers were in problem when there was the audit from Head Office. They should be properly motivated to increase efficiency. Internship Report on Askari Commercial Bank Ltd. Regular staff appraisals will screen the shortcomings. 16.
The use of scanning machine for this purpose will make the job faster. . 19. easier and more valid. Also sufficient surplus stationary should be kept ready to avoid inconvenience. an organization like banks should be in position to face these changes. 22. So there is a need for more regular training seminars and workshops to keep their knowledge up-to-date. The system of merit-based promotion and pay rise etc. There should be a printer in every department specially the main ones so that the staff of one department has not to wait for others for his work of printing. We cannot say about an organization from outside unless we are into it. It should be properly repaired or replaced.Annexure-II ACBL Branch Network 17. the knowledge of some employees still is not found up-to-date about their relevant department. so that the claim that this facility is available 24 hours a day could be justified. The system should be according to the requirements so that they are ahead of competition. who are interested in Islamic Banking. There should be a note counting machine to ensure correct counting and thus facilitating the work of cashier. 18. increase investments and go for diversification. There is a need of scanning machine for sign verification.S. ACBL is a well-reputed bank of Pakistan. Card with the bank. and that will motivate the hard working employees. changes can occur any time. The environment is dynamic. Action Plan In modern free economy and competitive world. 23. I worked there for 8 weeks. Though already trainings are arranged for employees. ACBL should also come up with Islamic Banking branches to attract that segment of society as well. 20. organizations like banks have to show their competence and endeavor in order to increase its inputs and outputs. should be enforced. As Islamic Banking has started in the country and some banks have opened separate branches for this purpose. The ATM machine is mostly out-of-order. Internship Report on Askari Commercial Bank Ltd. The signs are verified through matching with the specimen signature available on S. 21. They should draw the maximum capital. so that only those who work harder and better get promotion.
I have discussed it in the recommendation’s section. There are a lot of customers of ACBL. In ACBL there is a lot of burden of work on the AVP because every employee comes to him whenever he faces any problem. the area is very small and is over crowded. Efforts must be made to introduce aspirit de core among the employees. When there are a lot of persons for one thin that thing can never be done in the proper way and may be even task is not completed because every person will give its own suggestion and will not agree to each other. should be engaged.Annexure-II ACBL Branch Network While working in ACBL I found it very competitive the entire time ready for any challenge. But when an organization has some strengths they also have some deficiencies as well. allowances and bonuses and their performances can be properly evaluated through feedback. incurring in the banks especially in the settlement of credit cases the borrower sometimes does not give the principle amount. that’s why cantt. Nowadays when customer comes he has to stand because there are no proper seating arrangements for them and that makes them uncomfortable and uneasy. Vigilant. . and if there are any deficiencies in their work they should be taught ways how to overcome them. which will be of benefit to the bank. It’s all because they are not given proper authority of taking decision of their own. For this purpose I have prepared an action plan which will help them if not completely then a little to cope with their deficiencies. Also the staff is more oftenly found tense about the storage problem of various files and record keeping registers. For this purpose efforts should be made to delegate authorities for various transactions to the competent persons in various departments of bank and the senior executives/managers should be left with enough time to plan ahead and keep the tempo by being alert and always think of innovation to excel other banks. There are a lot of expenditures. Under any circumstances they have to consult the operations manager. Branch is a very busy one. If there are less no of employees then proper attention can be given to them and they can produce better results. hardworking and responsible staff who can be relied upon to shoulder their responsibilities. If there is less number of employees they can properly trained motivated by paying attention to their welfare including appropriate pays. markup is Internship Report on Askari Commercial Bank Ltd. If they increase the space the problems faced by both customers and employees will be solved. There is a lot of staff in the bank more than they need. In ACBL the main problem is of space.
Such people do get loans and never pay it back to the bank. The export and import sections are facing the same problem. extended dates are given for hearing etc. In this way the employees will enjoy working on something new and different from Internship Report on Askari Commercial Bank Ltd. Most of the defaulters to whom the banks do not want to give credit get it through influential people. work performance and participation in general discussion meetings held for the attainment of suggestions for the better performance of the branch. previously they provided customers the facilities without having complete documentation from them and later on they keep on calling on one and the other person to get the documents but in vain. which are for the safeguard of the bank future and prevent it from bankruptcy should be implemented and strictly followed in all the circumstances. Computerized voucher system should be introduced in the bank which saves a lot of manual work and thus is time consuming. One of the most critical thing I observed in the branch was that their was an absolute lack of job rotation which made the employees dull.Annexure-II ACBL Branch Network not given and when the mark up and principle is overdue and the borrower defaults the banks file suit against the borrower and till the decision is given a lot of expenditure is done paying the lawyers. The banker on other hand cannot do anything and incur millions of losses. which will help them in evaluating their annual performance correctly and the deserving person will get the promotion at the end of every session. in return of any kind of loan or facility provided to the customers. attending the courts of and on. then in the mean time the often the lawyer goes on a holiday or there are official holidays. . This will also motivate the employees to work hard and give their best throughout the year. In this way a lot of money and time was wasted but now the bank should follow the strategy of withholding maximum legal documents in hand. Promotions should be made on the basis of performance evaluation and for this purpose managers should keenly observe and keep a record of each and every employee’s attendance. But there is a lot government influence in the bank’s affairs. Such policies. by then the value of property goes down due to which a lot of losses are incurred by the bank. even if the decision is in the bank’s favor. Before given credit the bank goes through all the documents required and collects information about the borrower. For this purpose their must be a proper schedule prepared by the AVP according to which the employees should be transferred to the different departments within the branch at the end of every session.
ACBL Branch Network
the routine as well as they will be aware of and trained on all kind of operations held in the bank. Furthermore, in case of any employee’s sudden absence their would be another person from any other department available to take over immediately without needing any guidance. ANNEXURE – 1
Army Welfare Trust - Projects & Subsidiaries
Army Projects Division
• • • •
• • • • • • •
Army Welfare Shoe Project Army Welfare Woolen Mill Alghazi Travels Services Travels
Askari Commercial Bank Ltd Askari Leasing Ltd Askari General Insurance Askari Guards Askari Associates Askari Aviation Askari Mobil
• • •
• • •
Askari Information System Computer Section Askari Commercial Enterprises
Askari Cement (Wah) Askari Cement (Nizampur) Army Pharmaceutical
Real Estate Division
• • •
Army Welfare Sugar Mill Farms
Plazas Housing Schemes Restaurant ANNEXURE - II
Internship Report on Askari Commercial Bank Ltd.
Annexure-II ACBL BRANCH NETWORK Rawalpindi/ Islamabad Area: 4 in Islamabad 7 in Rawalpindi North Area: 1 in Abbottabad 1 in D.I. Khan 1 in Jhelum 1 in Mardan 1 in Mirpur (AK) 2 in Peshawar 1 in Nowshera 1 in mingora Lahore Area: 12 in Lahore East Area: 1 in Bahawalpur 2 in Faisalabad 1 in Gujranwala 1 in Gujrat 1 in Jalalpur Bhattian 1 in Multan 1 in Okara 1 in Phool Nagar 1 in Rahim Yar Khan 1 in Sahiwal 1 in Sargodha 1 in Sialkot 1 in Sadiqabad South 1 Area: 1 in Daharki 1 in Gawadar
Internship Report on Askari Commercial Bank Ltd.
ACBL Branch Network
South II Area: 1 in Hyderabad 8 in Karachi 1 in Mirpurkhas West Area:
1 in Chaman 3 in Quetta Overseas Operations:
1 OBU in Bahrain
Annexure-II 1 in Ghotki 11 in Karachi 1 in Sukkur
ACBL Branch Network
Internship Report on Askari Commercial Bank Ltd.
Monaco 57. Tunisia 89. Czech Republic 28. Taiwan 85. Finland 32. Kenya 49. Ecuador 31.Annexure-III Correspondent Network of ACBL Annexure-III Correspondent network of ACBL The correspondent network of ACBL is spread through different banks in the following countries: 1. Australia 4. Venezuela 97. Vietnam 98. India 40. Denmark 29. Norway 62. Mexico 56. Spain 79. Korea (South) 50. Hungary 39. Switzerland 84. Italy 44. Thailand 87. Sweden 83. USA 94. Zaire 3. Chile 23. Canada 20. Sri Lanka 81. Malaysia 54. Luxemburg 52. Netherlands 60. Iran 42. Singapore 75. Zambia Internship Report on Askari Commercial Bank Ltd. Turkey 90. Jamaica 45. New Zealand 61. Japan 46. Croatia 26. Indonesia 41. Vanuatu 96. Nepal 59. Tanzania 86. Barbados 12. Bahamas 14. Romania 71. Kuwait 51. Egypt 30. Portugal 69. Papua New Guinea 66. Slovakia 76. Hongkong 38. Cayman Island 21. Germany 35. France 34. Philippines 67. Cook Island 25. Solomon Island 78. Pakistan 64. Poland 68. Armenia 8. Yemen Arab Republic 99. Tonga 88. Aruba 9. South Africa 80. . Mauritius 55. Saudi Arabia 73. Qatar 70. China 24. Oman (Sultanate of) 63. Ireland 43. Channel Islands 22. Brunei Darus Salam 18. Greece 36. Senegal 74. Argentina 6. Honduras 37. United Arab Emirates 91. Austria 5. Kazakhstan 48. Bosnia-Herzegovina 16. Yugoslavia 2. Sudan 82. Belgium 13. Morocco 58. Brazil 17. Cyprus 27. Bahrain 15. Uzbekistan 95. Jordan 47. United Kingdom 92. Panama 65. Bulgaria 19. Bangladesh 11. Algeria 7. Uruguay 93. Azerbaijan 10. Slovenia 77. Macao 53. Fiji 33. Russia 72.
New Jersey: Prentice-Hall.. Horne James C. Jr.askaribank. Pakistan: State Bank of Pakistan. www. Annual Report. Financial Statement Analysis. Banking practices’ manuals.pk. (2004). Fundamental Concepts. 2003. The Institute Of Bankers. Faruqi. Fundamentals of Financial Management. Annual Report of Askari Commercial Bank Limited for the year ended December 31. Discussions with bank officers and observation.com. (1999). Internship Report on Askari Commercial Bank Ltd.Annexure-III Correspondent Network of ACBL BIBLIOGRAPHY • • • • • • • • • Annual Report of Askari Commercial Bank Limited for the year ended December 31. Rawalpindi. Wachowicz John M. . (1998). Van. Inc. Glossary: Banking And Finance. Shakil. Askari Commercial Bank Limited. 2004.