Internship Report On: Askari Bank Limited Hangu Road Kohat

Internship Report: Askari Bank Limited
INTERNSHIP REPORT ON
Askari Bank Limited Hangu Road Kohat
Supervised By
Mam Beenish Roman
IMS
Submitted By
Aisha Sajid
BBA HRM
INSTITUTE OF MANAGEMENT SCIENCES
KOHAT UNIVERSITY OF SCIENCE AND TECHNOLOGY
KOHAT, K.P.K.PAKISTAN
SESSION 2014-2018
Institute of Management Sciences KUST

INTERNSHIP REPORT
ON
ASKARI BANK LIMITED HANGU ROAD KOHAT
This Internship Report is submitted to the Kohat University for Partial fulfillment of the
requirement for the degree of BBA (Human Resource Management)
INSTITUTE OF MANAGEMENT SCIENCES
KOHAT UNIVERSITY OF SCIENCE AND TECHNOLOGY
KOHAT, K.P.K.PAKISTAN
SESSION 2014-2018

Approval Certificate
Internship report submitted to the institute of Management sciences

in partial fulfillment of the requirements of the degree of bachelors
in Business administration
Made by: Aisha Sajid
Supervisor: Mam Beenish Roman Sign: ( )
Director Name: Dr. Zeeshan Zaib Sign: ( )
INTERNSHIP REPORT
2018
3

Internship Report Bachelor of Business Administration Program
Name: AishaSajid
Registration No: MS120142096
Specialization: Human Resource
Email Address: aishasajid97@gmail.com
Institute of Management Sciences, KUST
Company Name: Askari Bank of Pakistan, Hangu Road Kohat Cantt
Main Telephone Numbers: 0922-510191, 0922-510192
Fax Number: 0922-510912
Supervisor Name: Kamal Nasir (Manager Operations)
Start Date of Internship: April 9th, 2018
End Date of Internship: June 04th, 2018
Date of Report: August 5, 2018

Evaluation
Aisha Sajid
Completing internship at
< Askari Bank Limited, Hangu Road Kohat cantt>
Internship report submitted for the Final Evaluation in the Partial Fulfillment of the
requirement for the Degree of
Bachelors in Business Administration
It is certified that the Internship report and the work contained in it conforms to all the
standards set by the Institute for the evaluation of any such work.

DEDICATION
I humbly dedicate this report and the efforts, time and hard work put in it to my parents as
without their moral support and prayers, it would have been quite a task for me to undergo
internship outside city and to frame its report.
ACKNOWLEDGMENT
The completion of this report could not have been possible without the assistance and support
of so many people whose names may not all be mentioned. Their contributions are highly

appreciated and gratefully acknowledged. However I would like to mention some people who
have been of special help to me during my studies:
First of all Prophet Muhammad S.A.W.W, then to my parents and to my teachers.
THANK YOU
Table of Contents:
CHAPTER 1…………………………………………………………………………………10
1 Introduction of Report ………………….……………………….……..…………………10
1.1 Background of studies …………………………………………….………………….….10
1.2 Purpose of studies…………………………………………………………………….......10

1.3 Scope of Studies……………………………………………………………………...…...11

1.4 Methodology of report…………………………………………………………………....11
1.5 Scheme of Report………………………………………………………………………....12
CHAPTER 2………………………………………………………………………………….13
INDUSTRY ANLYSIS ………………………………………………………………….….13
2.1 Key Success Factors……………………………………………………………..………..13
2.1.1 Technology…………………………………………………………………………..13
2.1.2 Best Rates …………………………………………………………………………...13
2.1.3 Product Innovation…………………………………………………………………...14
2.1.4 Service Quality…………………………………………………………………..…..14
2.1.5 Location and Convenience………...………………………………………………...14
2.2 Market Size..…………………………………………..………………………………….15
2.3 Market Growth Rate………………………………………………………………………16
2.4 Market Profitability ………………………………………………………………………17
2.4.1 Bargaining power of customers……………………………………………………..17
2.4.2 Bargaining power of suppliers………………………………………………………17
2.4.3 Rivalry among existing firms ………………………………………………………18
2.4.4 Threat of substitute products………………………………………………………..18
2.4.5 Threats of New Entrants…………………………………………………………….18
2.5 Distribution Channels …………………………………………………………………….18
2.6 Market Trends……………………………………………………………………………..18
CHAPTER 3 …………………………………………………………………………………19
Company Analysis….…………………………………………………...…………………...19
3.1 Background………………………………………………………………………………..19
3.1.1 History…………………………………………………………………………………..19
3.2 vision Statement…………………………………………………………………………..20
3.3 Mission Statement………………………………………………………………………...20
3.4 Core Values……………………………………………………………………………….21
3.5 Goals………………………………………………………………………………………21
3.6 Organizational Analysis by HR Department……………………………………………...21
3.6.1 Planning and Forecasting………………………………………………………………..22
3.6.2 Employees Recruitment and Selection………………………………………………….22
3.6.2.1 Sources of Candidates…………………………………………………………………22
3.6.2.2 Selection Process……………………………………………………………………...23

3.6.3 Training and Development……………………………………………………………...23

3.6.3.1 On the job Training...................................................................................................23
3.6.3.2 Off the job Training………………………………………………………………...23
3.6.3.3 Types of Training…………………………………………………………………..24
3.6.3.4 Employment Training and Development Methods…………………………………24
3.7 Performance Management………………………………………………………………...24
3.8 Employees compensation and Benefits…………………………………………………...25
3.8.1 Salary , Allowances & Loan ……………………………………………………….25
3.8.2 Gratuity & Provident Fund…………………………………………………………25
3.8.3 Promotion…………………………………………………………………………..25
3.8.4 Other HR {policies}………………………………………………………………..25
3.8.5 Competitive wage policy…………….……………………………………………..26
3.8.6 Special Cash Awards……………………………………………………………….26
3.8.7 In Service Training ………………………………………………………………...26
CHAPTER 4………………………………………………………………………………...27
SWOT ANALYSIS…………………………………………………….…………………...27
4.1 Introduction……………………………………………………………………………….27
4.1.1 Strengths of ABL…………………………………………………………………….….27
4.1.2 Weaknesses of ABL…………………………………………………………………….28
4.1.3 Opportunities of ABL……………………………………………………………….…..28
4.1.4 Threats of ABL…………………………………………………………………………29
CHAPTER 5………………………………………………………………………………….30
5.1 Suggestions …………………………………………………………………………….…30
5.2 References…………………………………………………………………………….…..31
CHAPTER 1
1. INTRODUCTION
1 Introduction of Report:
After doing two months (eight weeks) internship in the Askari Bank Limited, I have written
this report with utmost possible diligence. This report covers the internship undertaken at the
Askari Bank Limited. The most important aspect in any developing country is the economic
growth and the growth of its monetary based institutions. So banking sector can be considered
9

as the backbone of economy of any country as it plays vital role in the development of the
economy. Now banking sector has expanded its business to the all the sectors of economy like
industrial sector, trade and commerce, agriculture sector, automobiles etc .Banking sector has
now great importance due to its importance in different aspects like borrowing, advancing,
remittances, home remittances etc.
1.1 Background of Studies

As part of the academic prerequisite for completing BBA (HRM), every student needs to
undergo a six or eight week’s internship program with an organization. The purpose of
internship is to make the students go through the practical work by practicing the knowledge
and concepts gained in theoretically.
This report covers the internship undertaken at the Askari Bank limited in January 1974; all
the commercial banks were nationalized. The weaker commercial banks were merged with the
stronger ones and in all 5 major banking companies were formed namely HBL, UBL, NBP,
MCB and ABP and has now expanded its operations nationwide and has become one of the
leading Commercial Banks of the country, providing different products and services to its
customers.
1.2 Purpose of the Studies

The purpose of internship was to understand the application of theoretical knowledge in
practical situations and to get help to examine organization’s financial issues identifying the
problems and opportunities and also go for their corrective measures. Moreover,
understanding the running mechanism of this particular organization e.g. Askari Bank Limited
(ABL). As an internee I intended to learn and achieve the following objectives:
 To get familiarized with a business organization and

 With different departments and their functions in an organization.
 To understand the key business processes and their implementation in an organization.
 To understand the use of information in an organization in order to take decisions.
 To relate theoretical knowledge with practical work while being in an organization.
 To develop personal skills by practicing the conversion of this theoretical knowledge
into practical work.
 To acquire professional ethics and develop sense of responsibility.

 To gain professional experience in an actual testing environment.
 To develop interpersonal communication skills.
1.3 Scope of Studies:

Since the purpose of the internship was to grab knowledge about banking procedures and
operations of different departments, following areas of work were kept in focus to ensure
smooth process of learning:
 The department of account opening
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 Bills collection
 Cash department
 Credit department and
 Remittance department
1.4 Methodology of Report:

Since all the employees’ were committed doing their daily job activities, most of the time the
method of observe-and-implement was (along with consultation with the bank staff (ABL)
during difficulties) used during the course of my internship. I have used both the primary and
secondary data that I have collected from different resources and I have used that data in the
compilation of this report. Methodological tools used were:
1.4.1: Primary Data:
The primary and the main source of the information were the interviews that I had to conduct
both formal and informal interviews from different employees in different departments. Other
thing for primary data was the personal observation from their routine work.
1. Discussion with colleagues, teachers and related persons.
2. Interviews with Bank Personnel
3. Personal Observations
1.4.2: Secondary Data:
Secondary data is the Published data. Following sources of collecting secondary data are given
below:
1. Annual reports
2. Brochures
3. Internship reports, different memos and through the internet from Askari Bank
Limited website
4. Internet Surveys
5. Journal and Newspapers
6. Bank Manuals
1.5 Scheme of the Report
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Chapter 1 (already discussed above) contains the introduction and includes background,
purpose and scope of studies, methodology of report, source of data.
Chapter 2 contains the Organization Analysis
Chapter 3 contains the company/sector analysis.
Chapter 4 gives branch view where internship is done
Chapter 5 SWOT analysis and critical analysis of Askari Bank Limited (ABL).
Chapter 6 contains the recommendations consists of summary of the findings and

recommendations of the study and conclusions.
CHAPTER: 2
2 INDUSTRY ANALYSES
This chapter comprises of a general review and discussion concerning the banking industry.
The objective of this review is to help grasping the idea of key success factors of the banking
industry such as, market size, market growth rate, market profitability, distribution channels
and market trends. (Financial performance of Banks in Pakistan, 2018)
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2.1 KEY SUCCESS FACTORS

Key success factors refer to the elements that are deemed to be important for the members of
banking industry in order to survive in a competitive environment where each member is
expected to give tough time to other members. These factors include elements like product
attributes of a member, its competitive capabilities, available resources, level of competencies
and current market achievements etc. I shall be throwing light on some of these factors in the
paras to follow:
2.1.1 TECHNOLOGY
Technology is the most important and effective element in today’s banking industry. No
member of this industry can overlook the importance of this factor if it wishes to survive and
excel among other members. Latest technology has played an important role in the revival of
banking industry. Introduction of innovative products as per the demand of consumers is a
must for survival of a member of this industry. Technology has also been used to lower down
the cost of transaction and improve the quality of products. Moreover it has also increased the
level of security in the sensitive matters like transactions and transfers of funds. For instance,
the introduction of ATM in this industry has been of great significance in ensuring quality of
services, their security, access, lower costs and swiftness. This innovation itself increased the
customer’s convenience manifold. Other advancements in this field include online banking,
phone banking, and are increasing tremendously due to rapid technological change. (Financial
performance of Banks in Pakistan, 2018)
2.1.2 BEST RATES

It provides the most modern service to the customers, they offer banking through internet.
Askari Bank is the first bank in Pakistan to provide such a service to its valued customers
which is absolutely FREE. The new INet Banking Service is now more interactive, and has
been expanded to include more information of interest to customers with enhanced security
features.
 Utility bills payments

 Mobile payments
 Account statements
 Payments’ details
 Fund transfer to any account within Askari Bank
 Inter Bank Fund Transfer (IBFT)
 Askari Master Card bill payment
2.1.3 PRODUCT INNOVATION

Product Innovation is another major success factor in the banking industry. Presentation of
products in front of the customers also influences the level of attraction among them. Since all
the banks are offering almost similar products, discrimination is very important for looking
different from other members. To achieve this discrimination, banks are trying to come up
with different innovative products as ABL is offering such kinds of products like Askari
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Special Deposit Accounts (ASDA), which is a unique kind of product in itself. Also
disbursement of loans to the customers is quite easy and convenient. Such products attract
people of all the classes and localities to trust in the products offered by ABL in comparison to
their competitors.
2.1.4 SERVICE QUALITY

Service quality is a universal factor that contributes to the success of any industry. This
includes ensuring all the dimensions of quality that the consumers want. ABL is improving its
service day by day, services like cheques, Pay orders, Pay slips etc. Also the inclusion of
ATM machines and Credit Cards offered by ABL made it more and more attractive for the
customers as compared to other Pakistani Banks and foreign banks. Also includes Extension
of loans. It is quite easy for the people of any class or any business to get loan from ABL. The
procedures of ABL are quite easy and convenient for all kinds of people. The extension of
loans is quite convenient and very much quick as compared to other banks.
2.1.5 SIZE OF THE COMPANY

Size of the company is another important key success factor. In banking industry, the size of a
bank refers to the total market share, total assets, total number of branches and ATMs and
total number of customers etc. The banks having a huge size of above mentioned attributes are
supposed to have a high success rate as well. Brick and mortar banks have a good market
share due to which they can compete effectively. Contrary to this, virtual banks have relatively
lower market share especially in Pakistan. (Askari Bank Limited )
2.1.6 LOCATION AND CONVENIENCE

Ease of access is another factor which contributes a lot towards the success of a bank.
Location of the bank, for that matter, requires being such that it is easy for the customers to
access it. Means it should be in reach of its users. To ensure this ease of access, it is necessary
that a bank should have more numbers of branches to ensure quick reach of its users. It’s a
universal fact that convenience attracts consumers. For example a bank having a wider
network i.e. wider branch network will be convenient for the customers to reach there and
make transactions easily. In this case virtual banks have advantage over brick and mortar
banks. Facilities like online/phone banking and availability of ATMs have contributed a lot
towards increased convenience of the virtual banks.
2.2 MARKET SIZE (Current and Future)

The Pakistan banking industry is playing a vital role in the economic growth of the country.
This is why the government is fully supporting this industry. In Pakistan’s banking sector,
there are commercial banks, specialized banks, Development Finance Institutions (DFIs),
Micro-finance banks and Islamic banks. Askari Bank Limited being a business organization is
considered in the top banks in Pakistan. Competition in banking in Pakistan is very much
intense and every bank, whether foreign or Pakistani, tries to increase their deposits by
providing better facilities to its customers.
There are 45 banks functioning in Pakistan including 13 foreign banks and 32 Pakistani banks
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and all of them try to attract more and more customers in order to increase their deposits. The
bank can extend greater amount of loans by increasing deposits, and hence increase its profit.
The bank always tries to attract customers to open current accounts because on current
account no interests are paid, though other facilities are provided. Companies are not allowed
to invest their money in saving or other deposits because of the nature of saving accounts.
To analyze the above stats, it can be said that a bank having a bigger market size i.e. huge
deposits and shares has a high success rate. (Financial performance of Banks in Pakistan,
2018)
Profit / Markup Rates on Retail Products
Rates of Profit Paid to Value plus A/C Holders & on ABIC
Particulars Profit Rates
Value Plus Saving Deposits
Rs. 10,000/- to Rs. 24,999/- 2.50%
Rs. 25,000/- & above 3%
Value Plus Time Deposits
Three months 5%
Six Months 5.50%
One Year 6%
Investment Certificates
First Month 4%
Second Month 4.50%
Third Month 5%
2.3 Market Growth Rate

The market value of the company of the company has shown an upward trend throughout. The
company has been a consistent distributor of dividends. The increased profitability of the
banking sector (an increase of around 100%) has made this sector one of the most lucrative
ones to invest. This increasing marketability profile is reflective of Askari's high yields on
earning assets and favorable liquidity and solvency positions. We may expect such trend to
continue into the future. In FY06, the high share price of the bank if accountable for this trend.
Market value to book vale are not reliable measures of performance anymore as the market
prices of shares are distorted therefore it does not depict a true picture.
15

On the assets side, Askari Bank witnessed a growth in its earning assets. Net advances rose
9.7% from Rs 135.03 billion at the end of FY09 to Rs 148.11 billion at the end of 3Q10. This
increase was mainly due to the addition of lease portfolio of Askari Leasing Limited (ALL),
which stands amalgamated into the bank i.e. March 3, 2010. This factor aside, the increase in
advances was minimal, as the bank continues to exercise effective risk management and
remained watchful of the impact of credit expansion on capital adequacy. Resultantly,
investments grew by 21.1% during the current nine months reflecting deployment of liquidity
generated during the period in money markets. Investments rose from Rs 67.05 billion to Rs
81.24 billion in 3Q10. Lending’s to financial institutions also increased significantly from Rs
4.61 billion at the end of FY09 to Rs 6.68 billion in 3Q10
Lending Product Rates
Particulars Markup Rates
Personal Finance
Up to 3 Years 18%
Up to 5 Years 22%
Smart Cash
1 Year (Renewable) 22%
Business Finance
1 Year 1 Year Kibor + 3% to be reviewed on

yearly basis
Mortgage Finance
20 years maximum 1 Year Kibor + 3% to be reviewed on

yearly basis.
Auto Financing 13% to 15%
2.4 MARKET PROFITIBILITY

The profitability of banking sector will be discussed in the light of Michael Porter’s Five
Forces Model. These forces are:
1. Bargaining Power of customers (When suppliers are easily available).
2. Bargaining Power of suppliers (When suppliers are less and customers are more).
3. Rivalry among existing firms (When the rate of industry growth is slow and competitors
are few).
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4. Threat of substitute products (They may develop substitute products which they can the
same need of customer).
5. Threat of new entrance (They may come with fresh idea).
2.4.1 BARGAINING POWER OF CUSTOMERS

The Pakistan banking industry consists of 36 commercial banks (including 25 local private
banks, 4 public sector commercial banks and 7 foreign banks) and 4 specialized banks. The
total number of branches is 9,087. So for the customers there is a big power of bargaining
available because of the presence of huge number of banks and their branches in Pakistan.
There are 6 Islamic banks that increase the customer bargaining power. In country like
Pakistan, Islamic banking is a wonderful idea to serve that section of population that wants to
keep at distance from the term “interest”. Thus there is a vast number and types of banks
available in Pakistan which makes it convenient for the consumers to select a bank in
accordance with their choices and requirements.
2.4.2 BARGAINING POWER OF SUPPLIERS

This force of Michael Porter cannot be applied to the banks in general. Because banks have no
suppliers, banks are institutions that use their customer’s money to manage profits for
themselves.
2.4.3 RIVALRY AMONG EXISTING FIRMS

The banking industry is highly competitive peeping to the huge number of banks operating in
the industry. Banks can lower the competition by offering lower financing, preferred rates and
investment services to their users. The main competitive advantage for banks is the rate of
interest. Higher the rate of interest, higher will be the customers.
2.4.4 THREAT OF SUBSTITUTE PRODUCTS

As mentioned above, in the banking industry, there are number of substitutes available for the
customers. Banks operate using the offers they make to provide services over and above in
response to the deposits they get from their customers. The same money is then offered to
other customers in the form of loans and subsequently retrieving the same money along with
certain amount of interest, thus producing profits for the bank. But whether it is insurance,
mutual funds or fixed income securities, presence of other companies like Western Union
money transfer facility, chances are that there is a non-banking financial services company
that can offer similar services. For example, the money transfer service is offered by the non-
banking organizations. Such services pose a serious threat to the banking industry as money
transfer is one of the main services provided by the banks. (Financial performance of Banks in
Pakistan, 2018)
2.4.5 THREAT OF NEW ENTRANCE

Similarly, introduction of a new entrance in the industry is an ever existing threat that has to
be monitored in prevailing time and space. No doubt an average person can't come along and
start up a bank, but there are certain services that resemble services provided by the banks,
17

such as internet bill payment, on which entrepreneurs can capitalize. Another threat may be
from other financial services institutions, for example if an insurance company can start the
mortgage loans etc. (Financial performance of Banks in Pakistan, 2018)
2.5 DISTRIBUTION CHANNELS

The objective of banking sector is to facilitate people in matters concerning their finances. The
Pakistan banking sector’s distribution channel is designed as: Physical Branches, Online
Banking Offerings, Automated Teller Machines, Telecom banking (through mobile), and
Money Transfer facility that is available also in general stores.
2.6 MARKET TRENDS

The modern banking system has changed the banking trends. Latest technology has a direct
effect on the banking sector. The modern banking industry has brought greater business
diversification. Some banks in the developed world are entering into investments,
underwriting of securities, portfolio management and the insurance businesses. Taken
together, these changes have made banks an even more important entity in the global business
sectors. (Markets.ft)
Chapter 3
3 Company Analyses
3.1 Background
In this report the functions and operations of the Askari Bank Limited Pakistan are featured.
Provides financial services to its customers and in return gets its award in shape of profit.
ABL was incorporated in October 9th, 1991, as a Public Limited Company. It commenced
operations on April 1st 1992, and is principally engaged in the business of banking as defined
in the Banking Companies Ordinance, 1962. The bank is listed on Karachi, Lahore, and
Islamabad and stock Exchanges.
Askari Bank has expanded in to a network of 226 branches/sub branches, including 31
devoted Islamic banking branches and a whole sale bank branch in Bahrain. A shared network
of 4,713 online ATMs covering all major cities in Pakistan supports the delivery channel for
customer service .as a December 31st, 2009; the Bank had equity of Rs.14.95 Billion and total
assets of Rs.254.33 Billion with 984,485 banking customers, serviced by 6,159 employees.
Askari Investment Management Limited and Askari Security Limited are subsidiaries of
Askari Bank, engaged in managing mutual funds and shares brokerage, respectively. Askari
Bank is proud of its pioneering role providing the most modern and technological advanced
Services to its 984,485 relationships.
3.1.1 History
Askari Bank Ltd (formerly known as Askari Commercial Bank Limited) was incorporated in
Pakistan on October 09, 1991, as a Public Limited Company. It started its operations during
April 1, 1992. The bank principally deals with mainly banking, as defined in the Banking
18

Companies Ordinance, 1962. The Bank is listed on the Karachi, Lahore & Islamabad Stock
Exchanges and its shares are currently the highest quoted from among the new private sector
banks in Pakistan.
Askari Bank has expanded into a nationwide presence of 122 branches, and an offshore
banking Unit in Bahrain. A shared network of over 1,300 online ATMs covering all major
cities in Pakistan supports the delivery channels for customer service and also 6 credit card
centers and retail banking centers as well. As on December 31, 2006, the bank had equity of
PKR 11.1 billion and total assets of PKR 166 billion, with over 665,000 banking customers,
serviced by our 4585 employees.
New Corporate Identity
Creating the new "Askari bank” identity on 11th June, 2007.
The management and board of directors of the bank

decided to change the name of the bank from Askari
Commercial Bank Limited to simply Askari Bank
Limited. This was for multiple reasons - firstly, the
bank was generally referred to as "Askari Bank".
Secondly, in the current scenario, the word
"commercial" has become redundant
Since all banks are commercial banks.

The change of name presented an excellent opportunity for a fresh new look for the bank,
which would be a reflection of the bank's desire to continue to evolve with and adapt to the
changing environment and dynamic consumer needs.
WHAT ABL STANDS FOR?
What our VISION To be the Bank of First Choice in the Region

is?
What we THINK? Creating opportunities with innovation
What our VALUES Commitment Integrity Fairness Team- Service

are? work
What is our Customers Investors Regulators Our Communities

COMMITMENT to Passionate People
A distinctive Exemplary Dedication
our Stakeholders? about our
investment, compliance, Caring towards social
customers’
delivering governance of our development
success,
outstanding and business people and
delighting them
performance, ethics. and improvement in
with the quality
superior helping quality of life.
of our service.
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returns and them to

value. grow
3.2 Vision Statement

“To be recognized as a leader and a brand synonymous with trust, highest standards of
service quality, international best practices and social responsibility."
3.3 Mission Statement

To be the leading private sector bank in Pakistan with an international presence, delivering
quality service through innovative technology and effective human resource management in a
modern and progressive organizational culture of meritocracy, maintaining high ethical and
professional standards, while providing enhanced value to all our stake-holders, and
contributing to society.
3.4 Core Values
Integrity is the most valued standard in whatever ABL do. ABL understand that commitment
to satisfy customers’ needs must be fulfilled within a professional and ethical framework.
ABL subscribe to a culture of high ethical standards, based on the development of right
attitudes. The intrinsic values, which are the corner stone’s of our corporate behavior, are:
 Commitment
 Integrity
 Fairness
 Team-work
 Service
3.5 Goals
To enhance profitability and maximization ABL share through increasing leverage of existing
customer’s base and diversified range of products.
 To achieve sustained growth and profitability in all areas of business.
 To build and sustain a high performance culture, with a continuous improvement
focus.
 To develop a customer service oriented culture with special emphasis on customer care
and convenience.
 To build an enabling environment, where employees are motivated to contribute to
their full potential.
 To effectively manage and mitigate all kinds of risks inherent in the banking business.
20

3.6 ORGANIZATION ANALYSIS BY HR DEPARTMENT
Strategically, perhaps the most important division at the head office is responsible of human
resource management, including recruitment staff training and evaluation the division also
handles matters relating to administration. This division operates on a future orient strategy
focusing on employees’ personal and professional growth.
The following steps are considered by ABL by their HR department:
 Human resource planning and forecasting
 Employees recruitment and selection
 Training and development
 Performance management
 Employee compensation and benefits.
3.6.1 Planning and Forecasting
Whenever we talk about the word planning a certain system of steps comes into our mind the
same processed is observed in the ABL. The ABL HRP comprises of the following steps:
 Interfacing the strategic planning and analyzing the environment.
 Taking a record of company’s current human resource.
 Forecasting demands for employees.
 Forecasting the supply of HR, within or outside the organization.
However the methods of forecasting that is adopted the ABL (Askari Bank Limited) is as
following:
1. Zero-base Forecasting:
This method is used by the ABL in order to identify the Future staff needed by the
organization by considering the current level of employment as the starting point.
2. Bottom-up Approach:
It is a method of forecasting in which every successive level of ABL, from the lowest and
forecasting its employee requirements in order to ultimately provide an aggregate forecast of
employment needs. Basically it is the type of aggregate forecasting of employee needs.
3. Simulation:
It is the type of forecasting in which the ABL try to relate them with the real world situation
through a mathematical model that represents the situation.
4. Mathematical model usage:
For HR requirements, this forecasting is used that helps you to mathematically show the
connection between the needed employees and demands the number of employees that would
be needed in future.
3.6.2 Employees Recruitment and Selection

3.6.2.1 RECRUITMENT:
Recruitment is the process of discovering potential candidates for actual or anticipated

organizational vacancies. This process is carried out through advertisements in the newspapers
consisting of the criterion laid down for the specific job. In general, a Masters Degree in
Business Administration, Public Administration or Commerce is considered to be ideal
21

qualification for any job. In addition, experience in a related field is also an added advantage
while the minimum and maximum age limit is set between 20 and 26 years. In response to
these advertisements, applications are received from the desiring candidates with their
documents containing academic and personal information.
3.6.2.2 SOURCES OF CANDIDATES:

 Internal Source:
This is the simple method of promotion. This method elucidates that opportunity of
promotions are given to low level managers so as to excel and it also helps to increase the
motivation level of the employees. But it is only possible if the current employees have the
specific skills that are required.
 External Source:
This is the method in which opportunity is given to the people that are not currently working
with ABL (Askari Bank Limited). Basically it is the method in which if the current skills that
are not present then they provide the opportunity to the external people.
3.6.2.3 Selection Process:

Recruitment is followed by selection. It is the process of selecting the best candidate for the
job. The candidate found appropriate after the scrutiny of the documents is called for an
interview. In an interview, his / her interpersonal skills are assessed. Once he / she is found fit
by the manager of the branch for that job, his / her credentials are sent to the HRM Division at
the Head Office for approval. The Head Office does his / her appointment and keeps the new
hire on probation of six months. After the probation period, if his / her performance on the job
is found satisfactory, he / she are appointed permanently.
Vacancy publish in newspaper Applications received and scanned
Eligible candidates are called for written test
Group Discussion Individual interview
3.6.3 Training and Development:

The Bank to enhance their skills and knowledge of banking gives the fresh appointees of the
bank as well as the serving staff and management related subjects. This is done through the
process of training, which involves acquiring skills or learning concepts to increase
performance of the employee. There are two approaches used for the training of employees.
3.6.3.1 on-the Job Training:

22

On-the-job training is normally given by a senior employee or supervisor in which the trainee
is shown how to perform the job and allowed to do it under the trainer’s supervision. This
method of training is usually used for fresh employees who are not very much familiar with
the procedures followed. A senior employee gives them the necessary guidance as well as the
demonstration on how to perform the job.
3.6.3.2 Off-the Job Training:
In off-the-job training, guidance is given to an employee away from the original job settings.
ABL arranges different training courses and seminars for its employees in order to enhance
their capabilities in the fields related to the banking, management and information technology.
The staff members are also se4nt for courses organized by outside organizations. In order to
carry out effective and result-oriented training, the staff of the Training & Research Wing at
Islamabad has been increased in numbers. Different training programs are now underway
throughout the year for the enhancement of professionalism and employee development.
3.6.3.3 Types of Training at ABL (Askari Bank Limited):
During my time in ABL, the types of training that are observed over there are as following:
 Know your customer and anti-money laundering (KYC, AML).

 Basic Foreign Exchange.
 International banking.
 Credit Risk and how to counter Risks.
 Frauds detection and prevention.
 New account opening
 Employees Communication Program.
 MS Office courses.
 Management courses.
 Annual Appraisal formats.
3.6.3.4 Employment Training and Development Methods
In ABL, different types of styles are followed to provide training and development to the
employees based upon their feasibility that which method is more appropriate for them to learn.
For example they sometimes arrange workshop or have a dialogue session, they could also
have a small quiz programs, could have lectures by ABL resource persons or professionals
from other institutes, sometimes have on job trainings as well, also have tours for trainees to
different offices, seminars are also arranged for their training or could have on spot training by
visits of resource persons to the respective regions.
3.7 Performance Management
23

Performance management in every organization is very important as they informs about the
performance of the organization and helps to improves organization as well as individual
performance. It also identity the individual potential telling that what can be done with the
individual skills to get the better results. It also helps to appraisal and promotions of the
employee.
Performance appraisal is formal process in an organization whereby each employee is

evaluated to determine how he or she is performing. Previously the ABL followed the annual
confidential reporting system for the purpose of appraisal of employee performance. Since
1999, there has been a major policy change, with the introduction of a modern performance
appraisal system. In this system the appraisal is also involved in the appraisal exercise. This
leads to a better level of employees’ satisfaction in the process. These reports provide basis for
employee appraisal, promotions and training need assessment.
3.8 Employee Compensation and Benefits

Compensation and benefits gives motivation to employees help retain good staff and encourage
employees to give their best. The rules for compensation and benefits are decided by the
government based upon the market mechanism. Good employment benefits in ABL ensure
minimum turnover rate. Following are certain policies of ABL for compensation and benefits.
Compensation is composed of the extrinsic rewards offered by an organization and consists of
the base wage or salary, any incentives or bonuses, and any benefits employees receive in
exchange for their work. Benefits are membership based non-financial rewards offered to
attract and keep employees. These are usually given to the employees for their employment
with the organization. Thus all the compensation programs relate the rewards to employment
and performance of the employees on the job. ABL also has a well-defined structure to reward
its employees.
3.8.1 Salary, Allowance and Loans:
The salary given to the employees varies with grade and position in the organization.
Allowances are offered to all the employees, on account of medical traveling, housing, etc.
The bank also pays the vehicle maintenance and running charges of the employees of higher
grades. They are also given loan facility for house building, and several other purposes.
3.8.2 Gratuity and Provident Fund Scheme:
The employees eligible for the gratuity scheme should have a minimum of three years of
service with the bank. It is payable in lump sum when the employee either leaves the job or
gets retirement. This is equal to one month’s last drawn salary applied to each year of services.
The bank also has a provident fund scheme for its permanent employees. The bank as well as
the employee makes monthly contributions to this fund at the rate of 8.33 % of the basic pay.
At the retirement of the employee at the age of 60, or in case of early retirement, the employee
is also offered pension in recognition of his services for the bank.
3.8.3 Promotion:
24

Promotion is a reward given for the better performance of an employee. Promotion to a higher
grade in the bank means a raise in salary, entitlement to increased allowances and facilities.
This usually takes place after three years.
3.8.4 Other Human Resource Policies:
These include ABL’s policies of transfer, leave; resignation and termination of employee form
the services.
Employees are usually transferred from one branch to another either as a consequence of
promotion or any immediate requirement in a branch. They are also offered leave in the form
of annual leave, which is the same for every employee in the bank and is usually of 25 days in
number or medical leave, which is granted in case of any medical emergency.
The employee cannot resign from the services of the bank unless he / she give prior notice to
the bank. An employee can be terminated from the job in case of any act against the policies
of the bank.
3.8.5 Competitive Wage Policy
Salary structure of ABL employees is far better than its competitors. However beside the basic
pay, following allowances are also paid to the employees irrespective of their grades or scale:
 House Rent Allowance (50% of basic pay).

 Conveyance Allowance (minimum 90 liters to maximum 240).
 Utility Bill Allowance.
 Education Allowances.
 Medical Allowance (for medicines).
 Maternity Allowance.
3.8.6 Special Cash Awards:
Every year, best performance is awarded with the cash awards ranging from Rs.100000 to
Rs.500000 depending on the grade of the employee. Mostly managers are benefited from this
award to motivate them for procuring more business.
3.8.7 In-service Training:
This kind of training is provided to the employees during service to introduce them to the
latest techniques and methods of business. The duration of this training varies from three day
to three weeks, and training courses include lectures, movies, diagrams and reading materials
about the latest techniques and equipment. This training is facilitated three or four times
during the entire service of the workers.
25

CHAPTER 4
SWOT ANALYSIS
4.1 INTRODUCTION
SWOT stands for: S for Strengths; W for Weaknesses; O for Opportunities; and T for Threats.
SWOT Analysis is basically an effective technique of analyzing used to know the Strengths,
weaknesses, opportunities and threats of the organization. By using this technique we can
know about organization internal strengths and weaknesses as well as external opportunities
and threats. SWOT analysis show overall situation of the organization, it shows where
organization stands now.
Askari Bank Limited is relatively a new bank as compared to well established banks in
Pakistan. It is facing a tough competition.
4.1.1 STRENGTHS OF ABL (Askari Bank Limited)

The strengths of Askari Bank Limited Hangu Road Kohat Cantt are as follows:
 Lenient communication between all tiers of management. There is no gap of

communication, higher management is all time available to help the lower staff. They can
approach them anytime.
 Respectable treatment with the customers. They believe that there customers are
everything to them. Therefore, there is respectable relation between management and their
customers.
 Good security arrangements at the bank. There are 4 security guards at the bank along
with the security cameras and security alarms showing that bank is secure and safe.
 Attractive building and suitable working environment. The working environment is very
much feasible for work as everything that is required to perform tasks or activities of the
bank are available and accessible.
 Properly set water cooling and domestic arrangements like canteen and rest rooms.
 Availability of services like provision of tea to the customers. In order to maintain a long
lasting relationship with their clients, they offer certain services to the customers like tea
showing that bank value their customers.
26

 24/7 availability of ATM at the branch, anyone can use it anytime.
 Customers’ privacy is taken care at bank. As it is the matter of their confidentially so it is

never disclose to anyone. However after the death of the client, only necessary
information is available to its family after fulfilling the requirement of the bank.
 Location of branch is commercially suitable. Basically the branch is located in the

commercial area i.e. Hangu Road Kohat. So it accessible for the customers to visit the
banks or could use its services quite easily.
 The staff members are very corporative to each other as well to their clients, encourage a
friendly environment in which everyone is keen to help other.
 Availability of safe lockers (Wikiwealth). The lockers at the bank are very safe as they
have triple security system and he doors of the locker are very heavy so on one can easy
open it.
4.1.2 WEAKNESSES OF THE BRANCH:

There are some weaknesses of the branch which are mentioned below:
 Sometimes the customers are overburdened when it comes to processes like account
opening. Certain processes are too lengthy and time requiring therefore clients became
exhausted with such processes.
 Operations department sometimes exceeds its stipulated working hours due work load.
Therefore they are no able to attend their family occasions due to with they became
demotivated and frustrated.
 Token system sometimes stops working. Due to load shedding and other issues it stop
working and waste a lot of time of customers in order to re-fix it.
 High employee turnover. Due to poor evaluation system, only few employees get the
promotion or bounces that tease other employees who are equally working hard.
 Little space for accommodation of customers when rush increases. As the bank is small as
the number of its customers so it get difficult to accommodate such large portion on
clients and the rush is usually increased at the starting dates on the month.
 The seldom un-serviceability of scanners and photocopier creates awkwardness and

annoying situations in times of stress.
 No arrangement like drawers for temporary document keeping. Due to limited space in
the bank it is problematic for keeping the temporary documents.
4.1.3 OPPORTUNITIES FOR THE BRANCH
Positive external conditions of ABL (Askari Bank Limited) that cannot be controlled but
which can surely be used to take advantage are as follows:
27

 Recent renovation taking place in branch building was according to the new environment;
this may help in increasing the attraction for the customers.
 Introduction and betterment of user friendly technologies like phone banking, internet
banking and home deliveries are options to increase number of customers.
 Increased training period for employees to handle greater numbers of customers may be
introduced for better results.
 All the required information for customers may be displayed on touch pads for easy
accessibility may also be introduces. (Wikiwealth)
4.1.4 THREATS FOR ABL (Askari Bank Limited)
The threats for ABL are as follows:
 Competition! The branch is located in a highly commercial area where many other banks
are also functioning.
 Continuous innovation in applications and technologies provided by the branch has to be

ensured in order to keep this branch in synchronization with other branches of ABL.
 Changing regulations by the government may cause a threat to the smooth process of
banking e.g. Increased percentage of tax per transaction is imposed by the government but
the customers are not ready to welcome this change in percentage by any means. This
leaves the bank in a state of confusion weather to support the customer or to obey the
govt.
 Rapid changes in technology have to be inculcated promptly; a delay in this may cause
lag in competition with other banks. (Wikiwealth)
From the above SWOT analysis we conclude that:
 Management should adopt itself to systematic planning for the bank growth both at
domestic level and international level.
 Working facilities should be improved and need to be up to-date regularly.
 Reducing interest rate on loans to enhance customer satisfaction.
 Modern technology should be used for improving banking services.
 Giving promotions on the basis of efficiency requires motivation of employees.
28

CHAPTER 5
5.1 SUGGESTIONS
At the end, it is pertinent to offer some recommendations as per my knowledge and

observations that I made in ABL.
 Availability of experienced Staff may be ensured to provide the customers with even
better environment.
 Computerization of Branch may help in reducing the work load that is presently being
done manually.
 Customer friendly environment in the branch may help to increase the level of
attraction among the users.
 Inter Departmental Transfer may be made more swift and easy in order to ensure time-
saving.
 Professional Attitude may also be enhanced by introducing training workshops and
seminars etc.
 Conduct of Personal Marketing in the employees may be introduced. This may help in
portraying the services provided by the bank at all levels of consumer’s society.
 Equal distribution of work load among the workers can help to ensure their comfort
while on job.
 Presentation of bank services in front of the customers may result in increased number
of users. Employees may be trained in this regard as well.
 Consumer Satisfaction should be a paramount consideration while dealing with the
users of the bank. Again, training can help to ensure this recommendation.
29

5.2 REFRENCES
 Askari Bank Limited (2006) Corporate Profile.

 Askari Bank Limited (2006) Audited Financial Statements.
 Account opening forms.
 Askari Bank Limited Newsletter
 Deposit Manuals
 Decenzo, David A. and Stephen P. Robbins, Human Resource Management.
 An Internship Report on ABL, by Izran Ullah, 2004-2005, Department of Business
Administration, Preston University Kohat.
 Practice of Law of Banking in Pakistan by Mr. Israr Siddiqui Brochures of ABL,
Peshawar
 M. R. Mehkari, SEVP Group Head – Treasure & International Banking
 Agha Ali Imam, SEVP Group Head – Consumer Banking Services
 Mohammad Arif Mian, SEVP Chief Risk Officer
 S. Suhail Rizvi, EVP Group Head – Operations
 Abdul Hafeez Butt, EVP Country Head – Credit
 Israr Ahmed, EVP Country Head – Establishment
 State bank of Pakistan Financial analysis (2017)
 Annual report, BOK (2016) Askari Bank Limited
 http://mba-lectures.com/management/strategic-management/819/key-success-factors-
of-banking-industry.html
 http://en.wikipedia.org/wiki/List_of_banks_in_Pakistan
30

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Internship Report: Askari Bank Limited

Askari Bank Limited Hangu Road Kohat

INSTITUTE OF MANAGEMENT SCIENCES

KOHAT UNIVERSITY OF SCIENCE AND TECHNOLOGY

Institute of Management Sciences KUST

ASKARI BANK LIMITED HANGU ROAD KOHAT

INSTITUTE OF MANAGEMENT SCIENCES

KOHAT UNIVERSITY OF SCIENCE AND TECHNOLOGY

Institute of Management Sciences KUST

Internship report submitted to the institute of Management sciences

Made by: Aisha Sajid

Supervisor: Mam Beenish Roman Sign: ( )

Director Name: Dr. Zeeshan Zaib Sign: ( )

Institute of Management Sciences KUST

Internship Report Bachelor of Business Administration Program

Registration No: MS120142096

Specialization: Human Resource

Email Address: aishasajid97@gmail.com

Institute of Management Sciences, KUST

Company Name: Askari Bank of Pakistan, Hangu Road Kohat Cantt

Main Telephone Numbers: 0922-510191, 0922-510192

Fax Number: 0922-510912

Supervisor Name: Kamal Nasir (Manager Operations)

Start Date of Internship: April 9th, 2018

End Date of Internship: June 04th, 2018

Date of Report: August 5, 2018

Institute of Management Sciences KUST

< Askari Bank Limited, Hangu Road Kohat cantt>

Bachelors in Business Administration

Institute of Management Sciences KUST

Institute of Management Sciences KUST

First of all Prophet Muhammad S.A.W.W, then to my parents and to my teachers.

1 Introduction of Report ………………….……………………….……..…………………10

1.1 Background of studies …………………………………………….………………….….10

1.2 Purpose of studies…………………………………………………………………….......10

Institute of Management Sciences KUST

1.3 Scope of Studies……………………………………………………………………...…...11

Institute of Management Sciences KUST

3.6.3 Training and Development……………………………………………………………...23

5.1 Suggestions …………………………………………………………………………….…30

Institute of Management Sciences KUST

1.1 Background of Studies

1.2 Purpose of the Studies

 To get familiarized with a business organization and

 To acquire professional ethics and develop sense of responsibility.

1.3 Scope of Studies:

 The department of account opening

Institute of Management Sciences KUST

 Credit department and

1.4 Methodology of Report:

1.4.1: Primary Data:

1. Discussion with colleagues, teachers and related persons.

2. Interviews with Bank Personnel

1.4.2: Secondary Data:

5. Journal and Newspapers

1.5 Scheme of the Report

Institute of Management Sciences KUST

Chapter 2 contains the Organization Analysis

Chapter 3 contains the company/sector analysis.

Chapter 4 gives branch view where internship is done

Chapter 6 contains the recommendations consists of summary of the findings and

Institute of Management Sciences KUST

2.1 KEY SUCCESS FACTORS