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Tanzeela tayyaba 060518
First of all thanks to Almighty Allah, who gave me the strength and courage to complete this task, I am thankful to my parents for their prayers, their financial and moral support. I am thankful to all my friends for their help and support. And at most I am grateful to the whole crew of Askari Bank, who has been a source of learning and cooperation for me. I have tried my level best to make this work thoughtful and precise, but it may have mistakes, I will be more than pleased to have feedback, and suggestions to help me improve my work for my future projects.
TABLE OF CONTENTS:
Executive summary Introduction 1.1. History of Askari Commercial Bank Ltd. 1.2. Objectives of ACBL 1.3. Organizational Structure 1.4. Products and Services 2. Learning and experience 2.1. Rationale for selection 2.2. SWOT of ACBL 2.3. Recommendations 2.4. Conclusion References Page 8 Page 10 Page 13 Page 20 Page 20 Page 32 Page 36 Page 38 Page 40 Page 4 Page 5 Page 6
This is an explanatory report about my internship that I completed at Askari Bank from 8th June, 2009 to 18th July 2009.Askari Bank is one of the rapidly expanding banks of Pakistan which has stretched over 200 branches all over the Pakistan. Along with my personal account in
Askari Bank, perhaps its dynamic progress was one of the main reasons of my joining to this bank for my internship. This report holds information about different departments of Askari bank. The purpose of this report is to document the experience and learning which I gained during my internship. Although I was not considered as a regular employee of the bank to whom bank may award a major responsibility of banking but even then during my internship I was able to learn practical aspects of the bank, and got a bird’s eye view of the banking activities in the departments I was assigned to. I was placed in six departments from where I learned so many things. During this whole process I gained information about Askari Bank which previously I did not have any knowledge of i.e. the history of the bank, products and services it offers, the prevailing departments of the bank and their functions and how the bank’s day to day activities are conducted. To conclude I may say that Askari Bank has aggressive growth plans in Pakistan. It has developed a good reputation for good service and a quality bank. It offers a broad range of products to target different market segments.
According to Dr. Hart “Banker or bank is a person or company carrying on business of receiving money and collecting drafts for the customers subject to the obligation of honoring cheques drawn upon
which is not only redefining priorities and focus of the banks. The story begins with the incorporation of Askari Commercial Bank limited in Pakistan on October 09.them from time to time by customers to the extends of the amounts available on their currents accounts”. HISTORY OF ASKARI COMMERCIAL BANK The banking sector has witnessed a dramatic change during the last ten years with the development of Askari Bank. and withdraw able by cheque. Purpose of commercial bank is to earn profit. of deposits of money from the public. It transfers money from one place to another. for the purpose of lending. bills of exchange etc from customers. He is an intermediate party between the borrower and lender. or investment.” “Banking companies mean companies which transact the business of banking in Pakistan.” Commercial Bank: “The commercial bank receives surplus money from the public and lend to others who needs funds. but also threatening the domination of traditional players.” 1. In the words of G W Gilbert “A banker is a dealer in capital or more properly a dealer in money. Bank collects cheque. repayable on demand or otherwise. order or otherwise. 1991. It provides agency and general utility services. He borrows one party and lends to the another” According to Banking companies ordinance 1984 “Banking means the accepting.1. draft. Askari 5 .
6 . 207. As a result. where most other banks have their operational Head offices. The bank is listed on the Karachi. The liability side remains focused on the middle and upper middle class retired and serving government and armed forces personal and midsize business houses. While capturing the target market share amongst the view banks. this division B now gaining momentum and their long-term aim D to develop it into an independent.000 banking customers.Bank Commenced (begin) to operations in April 1992. A shared network of over 800 online ATMs covering all major cities in Pakistan supports the delivery channels for customer service. which are primarily oriented towards foreign trade.118. This created its own challenges and opportunities.016 billion and total assets of Rs. which have relatively limited opportunities as compared to Karachi and Lahore. Askari Bank has expanded into a nation wide presence of 153 Branches. as a public limited company. the Bank had equity of Rs. 11. Askari developed a geographically diversified assets base instead of a concentration and heavy reliance on business in the major commercial centers of Karachi and Lahore. Their corporate banking division was established in April 1999 with the primary focus on servicing large corporate and multi-national companies (MNCs). As on December 31. Askari has provided good value to its shareholders. Askari’s core marketing focus for its asset base has been the middle and upper middle business houses (including wholesalers and manufacturers) operating in the large urban centers of Pakistan. 2008.168 billion. Benefiting from the bank’s growing balance sheet size. Its share price has remained approximately 12% higher than the average share price of quoted banks during the last four years. and forced as to evolve an outwardlooking strategy in terms of Askari market emphasis. Askari Bank is the only bank with its operational head office in the twin cities of RawalpindiIslamabad. serviced by a total staff of 2. and an Offshore Banking Unit in Bahrain. Lahore and Islamabad Stock Exchanges and the initial public offering was over subscribed by 16 times. Historically. with over 475. This segment constitutes significant revenues to the bank.
and enhance their focus on serving the emerging needs of the corporate clients. delivering quality services through innovative technology and effective resource management. which gives the bank a competitive edge in providing instant services to its clientele. With this branch network of over 100 and further expected increase in future. Mission: To be the leading private sector bank in Pakistan. Askari's emphasis on further broadening its core foreign trade business translated into handling a higher volume of Export and Import business of Rs. with providing enhance value to all our stakeholders. The strategy is to provide their customers with a basket of innovative products to meet their varying needs. Askari Bank is operating throughout Pakistan. Askari is committed to aggressively market this segment. 36 billion registering a growth of 42% over the pervious year. This enhanced foreign trade business was secured due to excellent customer services and efficient international settlement arrangements with our correspondent banks. In recognition of this reach. Most of the branches are connected through our State of the Art. they have set up a retail-banking group in July 2000.Strategic business unit (SBU)… This would the bank to acquire. Askari Commercial Bank is the only Private Sector bank that has been approved by the World Bank as a Participating Financial Institution for the US$ 200 million Line of Credit sanctioned (authorized) to the Government of Pakistan for the Financial Sector Deepening and Intermediation Project. develop and specialized abilities. On-line Communications Network. Askari Bank’s reach is ever increasing. 7 . the mobile ATM’s facility is first time started by Askari commercial bank in 2005 dedicated to serving the urban consumer market. with an international presence. in a modern and progressive organization culture of meritocracy. We also offer direct access to the latest Foreign Exchange Rates through our Online Communications. the ATM’s facility and internet Banking. maintain high ethical and professional standards. and contributing to society.
Core values: The intrinsic values. In the years ahead. Askari will continue striving to build a strong. which are as follows:. As today customer demands a package of services suited to this particular business. Askari bank is interested in being one of the most financially viable institutions. Askari bank has they strength to be a market leader. its human capital base. the bank will enhance its focus on growth through 8 . Askari plans to develop different and new products to cater to the customer's demand. which are corner stones of Askari corporate behavior. • Askari bank will endure to provide a competitive return to its shareholders and will strive to maximize its share value. So it lays great emphasis on gradual building up to a healthy deposit mix. as is required. • Bank will keep standing and by and develop. • It will endure to provide its customers with as many creative financial services and products. motivated and dedicated work force where total commitment will be towards customer's satisfaction and wealthy growth of organization. The enhancement in its capital and returns will be a continuous process.Vision: To be the leading bank in Pakistan. are: • • • • • Commitment Integrity Fairness Team-work Service Objectives of ACBL: As Askari Bank looks ahead to the future by moving through the decade its efforts are guided by a broad framework of corporate objectives. It is planning to provide all the required training to its staff towards achieving a higher level of professionalism.
operational efficiency. How to deliver: These objectives and guiding mission will be achieved through BOARD OF • Focused objective DIRECTORS • • • • Winning as a team Executive Committee Internal Audit Excellence in delivery Relentless quality President and Chief Executive Upward rising sales Corp.will make it a leader in the corporate world. Group Internation al Operating and credit group Credit Region s Rawalp indi/Isl amaba d North Retail Banking Group Asset Products Investme nt products Credit Cards Planning and Corporate affairs Human Resource Treasury Corporate and Merchant Banking 1. Banking & Fin. Inst. creating strategic alliances developing well-structured networking system innovating new products. enhancing marketing and sales efforts improving customer service.3. achieving greater employee motivation and providing the best value to its stakeholders . ORGANIZATIONAL STRUCTURE Systems and Operations Data Reporting Legal Affairs South 9 II West Lahore Electronic Technology Finance East South I .
• Corporate Information Lt. Gen (R) Imtiaz Hussain Maj Gen (R) Saeed Ahmed Khan Mr. Shahid Mahmud Mr. Javed Zia (HIM) Lt. Bashir Ahmad Khan Mr. Ali Noormahomed Rattansey Chairman Chairman Executive Committee Director Director Director Director Director Director 10 . Gen. Muhammad Riyazul Haque Mr. Zafar Alam Khan Sumbal Dr.
A.Ferguson & Co. M. Chartered Accountants • Legal Advisors Rizvi. Tariq lqbal Khan Mr.Box 1084. Tariq Iqbal Khan Chairman Member Member • Auditors A.F.O. Ghazali Marghoob Director (NIT Nominee) President & Chief Executive Company Secretary • Audit Committee Dr. Muhammad Rafiquddin Mehkari Mr. Afridi & Angell • Registered Office /Head Office AWT Plaza.Mr. Isa. Ali Noormahomed Rattansey Mr. Bashir Ahmad Khan Mr. Tel : (051) 9063000 11 . P. The Mall. Rawalpindi.
4.askaribank. Products and Services The product & services of Askari commercial bank limited are developed keeping in view the customers needs & wants.pk 1.Fax: Website : (051) 9272455 www. ACBL accepts deposits in both local & foreign currency.com. 1) 2) 3) Deposits Advances Products 1. ACBL offers the following financial services to its customers. • Local currency deposits Current Account 12 . Deposits: One of the basic functions of commercial banking is to receive deposits.1. & the expectation that the customer attaches with its financial institutions.4. A product ACBL includes all those services which customer normally required for effectively managing his business.
the bank impose certain restrictions on withdrawals from the saving accounts. balance then the fees is charged at the rate of Rs. • Transaction fee The bank charges no transaction fees if the minimum balance requirement is met. 10 per transaction. However. • Transaction fees 13 . The banker undertakes to repay these on demand & therefore theses accounts are called demand deposits. • Saving Accounts The saving account is usually opened by lower or middle class people so that they can meet their future contingencies. as the objective of such account is to promoting the habit of thrift among people.PLS Saving Account Term Deposit Notice Deposit Askari Faida Account Askari Special Deposit Account Value plus Saving Account Askari Advantage • Current Account A current account is a running & active account. if the average balance falls below the min. which may be operated upon any number of transactions during a working day.
Letter of credit 1. • Non. 1.Funded facilities are those in which bank substitutes its own credit for its customers. These facilities include: 1.4.2. Guarantee 2.Funded facilities • Funded facilities In funded facilities the bank actually advances money against further repayment.Transaction fees are charged of Rs.3. Banks attracts surplus balances from the customers at low interest rates & makes advances at higher interest rates to the individuals or business firms. ACBL offers to its customers are large number of non-funded facilities. These facilities are known as cash credits. Advances Advances are major sources of earning of income for commercial banks. 20 per transaction if the min balance is not met.4.Funded facilities Non. Products 14 . ACBL offer these facilities in two forms: • • Funded facilities Non.
Once a good credit history is established. 10 million with a repayment tenure upto 20 years. • Mortgage finance Askari "Mortgage Finance" offers the convenience of owning a house of choice. the door to opportunity opens much wider. • Askcar (Car Finance) Yet another of our products. which provides our valuable customers an opportunity to own a brand new vehicle of their choice. With minimum down payment. payback period and most affordable monthly installments. lowest 15 . The maximum financing amount is Rs. while living in it at its rental value. Askari Bank's Personal Finance makes sure that one gets the most out of his/her loan.financing scheme. Our goal is to offer a loan.• Personal finance: Personal Finance is a parameter driven product for catering to the needs of the general public belonging to different segments. Askcar offers the most convenient and affordable vehicle. ACBL is providing loans to small and medium size business enterprises under Askari Bank's Business Finance Scheme. One can avail unlimited opportunities through Askari Bank's Personal Finance. The installment plan has carefully designed to suit both the budget & accommodation requirements. With unmatched finance features in terms of loan amount. Ore valued customers can enjoy the convenience of getting financing on attractive terms with the minimum processing turnaround time. which enables business community to receive the financing required by them based on their cash flows. • Business finance In pursuance of the National objectives to review the economy of the country. It has been designed for enhancing financing facility initially for employees of corporate companies for purchase/ construction/ renovation of house.
The growth of this product is witnessed by its share. withdraw and deposit cash through ATM anywhere. dine at restaurants. Askari master card No joining fee When you successfully apply for an Askari MasterCard. • Traveller cheques The range of our products and value added services enhances with introduction of Rupee Travellers Cheques (RTCs) launched in March 2002. comfort. Askcar offers the best value to our esteemed customers.079 Million even after lowering down the profit rates due to sufficient liquidity in the market. It’s almost like you are getting it for FREE! o Global acceptability 16 . anytime. we will not charge you any Joining Fee. Total volume handled by the department during the year 2004 is Rs.insurance rates and widest range of available car makes and models. 1. In spite of our constraint on issuing higher denomination of RTCs against restrictions imposed by the Central Bank of Pakistan we have been striving to attain our shares with sizeable portfolio. • Value Plus The first liability product launched by this unit is showing a remarkable acceptability in the market. pay your utility bills. which has presently reached at Rs. convenience and security. 798 Million. ASKCARD is your new shopping companion which enhances your quality of life by letting you do shopping. so that you can have retail transactions with complete peace of mind. transfer funds. • Askcard ASKCARD means freedom.
you are always a phone call away from the assistance you need. regardless of the currency of purchase. You may also avail this facility at designated branches of Askari Commercial Bank. To speak to one of our friendly Customer Service representatives. your liability against its fraudulent use will be limited and we will send a replacement card within 48 hours of reporting. You can get up to 80% of your sanctioned credit limit as cash advance in Pakistan or anywhere else in the world. The facility is available at all ATMs displaying the Cirrus logo around the world and in Pakistan. you will have the benefit of receiving your monthly billing in Pak Rupees. • 24-Hours customer service With Askari MasterCard. • Low service charges Your Askari MasterCard provides you the experience of revolving your spending at comparatively low service charges. Once you have registered the loss of your credit card. Lahore or Rawalpindi/ Islamabad. and at over 23 million establishments worldwide. during banking hours. • Cash advance facility Cash advance facility is available for Askari MasterCard holders. In addition. As an added convenience. please call our UAN 111-000-787 for Karachi. the same rate also applies to cash advance obtained on your Askari MasterCard • Zero loss Liability Please report loss or theft of your Askari MasterCard immediately at our Customer Services UAN 111-000-787 for Karachi. 17 .Your card provides you with service at thousands of locations in Pakistan. Lahore and Rawalpindi/Islamabad.
should have the basic ingredients to provide adequate amount at the right time and in the right form to help farmers in making a productive use of loan funds. However.4.on a Silver Card. adequate and timely financial assistance to the farmers will improve production potential of agriculture sector in the country. Agriculture Banking The role of agriculture in Pakistan economy is of pivotal nature. supplies and knowledge for the overall strength of the farmers who at present suffer from low productivity and financial insecurity.000.4.5%* per month.000/. therefore. you can avail an incredible offer of a Balance Transfer at the exclusive rate of just 1. The modern concept of agricultural credit envisages establishment of an efficient institutional credit system to serve as a package of credit.• Balance Transfer facility With Askari MasterCard. Products Askari Kissan Ever Green Finance Askari Kissan Tractor Finance Askari Kissan Aabpashi Finance Askari Kissan Livestock Development Finance Askari Kissan Farm Mechanization Finance 18 .000/. • Free travel insurance Just purchase your travel tickets on Askari MasterCard and you are automatically covered under our Travel Insurance Plan (in case of personal accident resulting in death or permanent disablement) for up to Rs. A successful credit evaluation system.on a Gold Card and Rs.000.4.8. Due to diverse geographical and climatic conditions the country has tremendous potential for growth and development in agriculture. 1.
I have bundle of ideas about different organizations to join. Rational for Selection I served Askari Bank Wah Cantt as an internee for some six weeks. 2. And I choose Askari Bank Ltd. • During my visits to Askari Bank at different places.1. 19 . Most of the organizations which I had idea about were banks. Learning and Experience One of the most important aims of the student life is to express him/herself correctly and adequately. so I have been having regularly visiting to the bank. As internship was a compulsory requirement for the completion of my BBA degree so I observed feasibility of joining any organization of well repute. But the point was which one to choose. Before starting my internship at Askari. This was the belief in my mind when I first decided to go to Askari commercial Bank to complete my internship program. One reason of selecting banking industry was the complete implementation of BBA courses under one roof. I observed that all the branches have a harmony in the setup or physical outlook of the branch which insisted me to think about management’s nationwide organization and planning. That’s why I have a bit more attachment to this bank than else. Secondly I wanted to apply the knowledge that I had gained during the course of my studies while at Air University. Askari Kissan Farm Transport Finance Ask Card 2. because of some definite reasons: • My account is held by Askari Bank Ltd. I choose Askari Bank Ltd.
only one persons signature is sufficient) or jointly (i. He has to introduce the new client by signing the opening account form and then his signatures are verified.e.1 First week I started my internship from "General Banking" in the first week. which ever branch I visited. both should sign the cheque).e. all were having an ATM machine because of which I came to the conclusion that the bank is utilizing modern technology at a rapid speed.D. Applicant's fills the account opening form and provides it to the bank with photocopy of I. which are as follows: • • • • • Account opening Bills and remittances Clearing Term deposit Cash department The first day of exposure to the practical field was at the (sub department) Account opening. The General banking is basically divided into the following sub departments. 2. Account opening 20 . for this purpose there should be an introducer who himself is the account holder in the same branch. card and signatures card. If the customer wants to open joint account then either it is "either or survivor" (i.• Up till my internship at Askari Bank. Every one is not allowed to come and open an account in the bank. The relationship of customer starts with this department. Then the banker inquires the about the option of opening a joint account or individual.1.
Although the procedure of opening an account in a bank is a quite complicated job but I am going to tell you only the basic necessities for opening the account.D. I remained there in the account-opening department for one week and daily I learnt a new thing In the start I have stated the account opening procedure and issuance of cheque book in a very comprehensive way. rather it is issued after three days but. The producer of issuance of the chequebook is as follows: For the customer who already has an account with the bank. ACBL issues the cheque book to the customer so that they could withdraw their money whenever they like. These are some of the basic requirements for opening the account. the lastly consumed chequebook requisition slip with the help of which a new chequebook is issued. Issuance of chequebook Once the account is opened. And the person who is going to open a new account for the first time gets the chequebook free without any requisition slip. as the most of the customers are from the armed forces so the usually get the cheque earlier. now let me tell u the further related detail of account opening 21 . ACBL issues the cheque books for both the local and foreign currency accounts. card Personal data Details of dealing with other banks. For the new depositors the cheque book is not issued at the time of opening of account. which are as follows: • • • • Introduction National I.
S card and the application form are verified and the verification stamp is imposed on it.S card is filled which contains the signature that will be used in future in order to identify that you are the same particular person who perfectly eligible for receiving the benefits.2 Second Week 22 . no which is actually the account no. • • The S. 2. The chequebook is issued to the customer after three days. Active and inactive Account The account becomes Inactive if there is no debit transaction.• First of all a customer come and gets the information regarding the opening of account. The introducer is thanked for the two perspectives. Allocated to the respective customers. S. After getting the proper information he gets an introducer and goes for opening an account of any kind whatever he wants • He fills the form regarding the opening of account which is in fact a request. After verification the application forms are pasted in the file with the serial. A letter of thanks is posted to the customer as well as the introducer.1. First he should be thanked that because of him the bank get another customer and the second reason behind sending the letter to him is that if the customer had fraudulently get the signature of that person as an introducer then he should come to know that some one has used his name as well as signature for his personal benefit and without the consent of him (introducer). Account becomes active if there is credit transaction. • • • • The procedure for opening the account comes to an end after sending the letter of thanks.
which gives you a benefit in terms of cash.e. The main function of a commercial bank is to channelize the saving from the savers to the ultimate users of the funds. Term deposits are payable on demand with certain maturity. Askari Bachat Certificates are attached or pasted in the file according to the date. 23 . Deposit is lifeblood of a commercial bank. The verified TDR forms are pasted with serial number of receipt given to the customer (the receipt of the form regarding the deposit of the amount). Record keeping The record of the TDR is although feed in the computer but there is also a hard copy of the record. As the name signifies the demand deposit is payable on demand so no interest or benefit is given on such deposits but the time deposit is a kind of deposit. While in other accounts the A/c can't be opened under the same title even in other branch of the same Bank. if there is a card of the 8th then on this card you will find the only 8th date of any month and any year in which the card was issued. Different percentages of profit are given in the time deposit (the detail is given in the Marketing Mix) These are called fixed deposit because they are fixed and no transaction is allowed till maturity. Deposits are of two types one is the demand deposit and the other one is time deposit (these have been explained in detail in the "department" portion).In the second week I was shifted to the TDR (Term Depots Receipts) department. First of all he told me about the basics of the TDR. Most of the people who have surplus money with them especially the landlords deposit their money in such accounts. The date may be of any month and any year i. In fix deposit you can open an A/c of the same title only than A/c number will be changed. This process of collecting saving is called "deposit mobilization". It was again a good experience to work with the officer here.
5. more and more people are inclined and attracted towards banking. No cash is needed as such the risks of robbery. Advantages of Clearing: 1. the number of transactions can be unlimited. Since clearing does not involve any cash etc and the entire transaction take place through book entries. Three days I worked with the "Clearing" and then with the "Bills for collection" section. Third Week In the third week of my internship I was shifted to the Clearing section and Bills for collection section as well. cost and labour are saved.3. A lot of time.2. 3.1. the banks can manage cash payment at the counters with a minimum amount of cash in vaults. embezzlements and pilferages are totally eliminated. Clearing House: It is a place where representatives of all scheduled banks sit together and interchange their claims against each other with the help of controlling staff of State Bank of Pakistan and where there is no branch of State Bank of Pakistan the designated branch of National Bank of Pakistan acts as controlling member instead of State Bank of Pakistan. Clearing Meaning of clearing: The word clearing has been derived from the word “Clear” and is defined as “a system by which banks exchange cheques and other negotiable instruments draw on each other within a specified area and thereby secure payment for their client through the clearing house at specified time” in an efficient way. 2. 24 . 4. As major payments are made through clearing. Since it provides an extra service to the customers of banks without any service charger or costs.
Rs.75. NBP and MCB of Rs.debit. 50. The cheque delivered to the representatives of other banks for clearing are called outward clearing.P. 000/.35.from NBP and to pay Rs.to MCB so difference is Rs.15. Procedure of Settlement: Presume that ACBL got the cheques which are drawn on HBL.15. ACBL has to receive from MCB Rs. 000/.respectively.respectively. 000/. 000/.e.000/.B. it means that this amount is to be credited to ACBL A/C with S. Hence ACBL A/C with State Bank of Pakistan will be debited with Rs. NBP and MCB for amounts Rs.credit. Rs. GRAND TOTAL: 35000-45000-15000 = -25000 i. 000/. 000/.15.000/-.to HBL so difference is Rs.from HBL and to pay Rs. 000/. ACBL has t receive Rs. its total being amounts Rs.000/.95. Rs.25.000/.and the contra will be other banks accounts respectively.credit and debit Rs. 25 .95.000/-.50.45.25.and Rs.Working of clearing house: All the bank which are the member of clearing house maintain accounts with State Bank of Pakistan by debit and credit to which the clearing settlements are made.to NBP so difference is Rs. 15.000/.000/-. If on the other hand the total amount of cheques and other negotiable instruments draw on a certain bank by other bank is more than the total amount receivable by it from other banks. ACBL has to receive Rs. a bank delivers cheques and other negotiable instruments worth more than the total amount of Cheque received by it that banks accounts with State Bank of Pakistan will be credited with the differential amount.30.debit is Rs. on the other hand the cheques drawn on ACBL are from HBL. 000/.000/. If on a particular day.20.1. 000/. its total being Rs. The difference between Rs.30. 000/. 2. whereas cheques received from the representatives of other banks for payment are called inward clearing. This called as Debit and Credit Rule”.debit.000/-.20. If we separately show that 1. it means that this amount is to be debited from ACBL account.30.1. 3.000/-.25000 debit.000/. then this bank’s account will be debited on that day.25.75.15.and to pay Rs.debit which means the house is against ACBL for Rs.
The instrument is suitably discharged. where a bearer cheque does not required any discharge and also an instrument in favor of a bank need not be discharged. If order instrument. It should not be stale or post dated or without date 3. the credit voucher are separated from the instrument and are released to respective departments against instrument 26 . Signature of the drawer appears on the face of instrument 5. The instrument along with paying-in-slip is retained while the counterfoil is given to the customer duly signed. suitably endorsed and last endorsee’s account being credited 8. payingin-slip and counterfoil (The stamp is affixed in such a manner that half appears on paying-in-slip and half on counterfoil). Instruments is not mutilated 6.Outward Clearing At The Branch: The following points are to be taken into consideration while an instrument is accepted at the counter to be presented in outward clearing: 1. The register is balanced. There should be no material alteration if so. The name of the branch appears on its face where it is drawn on 2. Then the following steps are to be taken:1. Endorsement is in accordance with the crossings if any 9. 2. The amount of the instrument is same as mentioned on the paying-in-slip and counterfoil 10. The title of account on the paying-in-slip is that of payee or endorsee (with the exception of bearer cheque). If an instrument is in order then out bank’s special crossing stamp is affixed across the face of the instrument. Amount in words and figures does not differ 4. The particulars of the instruments and the pay-in-slip or credit vouchers are entered in the Outward Clearing Register. Serial number is given to each voucher 3. Clearing stamps is affixed on the face of the instruments. it should be properly authenticated 7.
The schedules are arranged bank-wise 5. The instruments are detached and sort out department wise 3.4. she tells me about the issuance. amount of the instrument is written). instrument number. 5. The particulars of the instruments are compared with the list 2. Demand Draft 27 . The schedules and house pages are signed by the officer in charge with branch stamp 8. two copies of which are attached with the relevant instrument and the third is kept as office copy 6. The house page is prepared from schedules in triplicate 7. I met there with a quite sophisticated personality. The instruments are sent to the respective departments against acknowledgement in the Inward Clearing Register. The entry is made in the Inward Clearing Register (serial number. 4. procedure and the entries of the demand drafts and pay orders. The grand total of the house page is taken and agreed with that of the outward clearing register 9. The instruments are scrutinized in each respect before honouring the same 2. account number.and are released to respective departments against acknowledgement in the register 4. The schedules are prepared in triplicate. The instruments along with duplicate and house page are sent to the Main Office Inward Clearing Of The Branch: 1.1. Fourth Week In the fourth week of internship I was transferred to the "Remittances department".
But Askari Bank contract with MCB so ACBL's demand draft is payable at MCB also. After making the payment. Demand draft is very useful because there is no chance o fraud. issued by the branch of the bank drawn. entry is made in the register that this DD has been paid. The customer writes his name. The issuance of DD is computerized and the amount is automatically protecting graphed drawing printing for the avoidance of forgery. address.D number. Commission is charged as per schedule of charges. Payment of DD When a person brings DD (which have been drawn on you). Demand draft is payable at some other branches of the same bank. you will check it from your DD payable record and ask the customer to sign twice at the back of the DD so that it could be confirmed that he is the eligible person for receiving the benefit. The person deposit cash and get demand draft. I. Issuance of demand draft On the application form following particulars are given: • • • • • • Name of beneficiary Amount Mode of payment The place where DD is drawn Signature Name and address of the beneficiary Request shall be made on standard application form. It is used for outstation payment. along with this you obtain the ID of that person verify it and then make the payment. and phone number on the backside of the application form. he got voucher from the cash department and gave it to the person who makes the DD. The withholding tax and excise duty is deducted as per schedule.It is an instrument payable on demand for which value has been received. 28 . When the customer depots cash in the cash department.
in such a case the payment will be made from suspense A/c. These DD are those. Make the payment from suspense account. with the signature on the application form (for opening the DD). Payment of DD from Suspense A/c The payment of DD is made from the suspense account in the following cases: • • The amount of DD is paid from suspense a/c if advice is not received yet. Types of DD DD’s are of the following types: 29 . Banker records it in DD payable register. which should tally. Inter Branch Credit Advice is the advice regarding the payment (refund) of the amount which Drawer bank have sent to them (which was deposited by the customer against the demand draft). which have been drawn on you. If a DD is to be cancelled on the wish of the customer. Verify the signature of the applicant. Inform the Drawee bank regarding the cancellation and ask for IBCA. an IBCA is sent to the Drawee bank regarding the payment. which other branches have drawn on your bank. Cancellation of DD Following procedure is followed for the cancellation of the DD: • • • • • Obtain the application in writing for the cancellation of DD along with the original DD. Mark caution on DD issued register or on computerized entry. • When a demand draft is made.DD payable register Every day you receive an IBCA from different banks and it contains a list of DDs.
his bank will present The TT to ACBL through for payment. 250/If the account of beneficiary is in another bank. Pay Order Pay order issued from one branch can only be payable from the same branch. 100. The applicant receives Commission and charges. The bank apply test on telegraphic transfer. Pay order is used for same city payment.• • Crossed DD: In the case of crossed DD the amount is deposited to the A/c of the beneficiary.the charges are Rs. Telegraphic Transfer The transfer of funds from one branch to another branch of the same bank is called telegraphic transfer.000/If he has no account in the ACBL then he has to pay charges according to the amount e. Open DD: Incase of open DD the amount is handed over to the beneficiary at the cash counter. If ACBL (Main Branch) issued pay order it is only payable for Main Branch of ACBL.000/.g. Procedure • • • Applicant fill the application After paying charges he gets voucher and pay order is issued All pay orders shall be crossed "payee's A/c only". for Rs.g. 100. if the Applicant’s account is in ACBL. Cancellation 30 . E. he pays no charge above Rs.
1. the person appointed here asked me to arrange the letters and to write the mailing address on the envelopes and then to put the letters into the envelops. Account Section I worked in accounts department but as it is a confidential department so they did not give me enough information regarding their working. it also maintain the record of all the employees regarding their basic salary. benefits etc. Fifth Week In the second last week of my internship I worked in the "Accounts section". date etc. the single thing which I learned from here was that. It is the backbone of ACBL On the next day I worked in the mail dispatch section.5. Accounts department maintains the record of expenses of all the departments. I learnt by heart the addresses of many branches of the ACBL. On the following day I repeated the same job and did nothing else. Therefore I was sent back to the account-opening department. 2. increment.6. 2. Swot Analysis of Askari commercial Bank 31 . amount. After that I checked the activity which contains the title of the cheque. It was an interesting job but. 2. which helped me to know the extensive branch network of the Bank. Sixth Week In the last week I was shifted to the "foreign exchange" department.2. First day I sorted out the cheques of ACBL with the help of the serial number and the nature of the account and arrange them in sequence.• • The applicant give application for cancellation Charges are recovered from the applicant. For the first three days I worked there but in the last three days I was shifted again to the account-opening department due to the absence of one of the Account opening officer.1.
Electronic Funds Transfer ACBL management is quite prepared to adopt the latest advancements in technology resulting in revolution in the banking operations such as check 32 .Strengths Leading Private sector Bank Askari commercial bank is the leading private sector bank in the banking network in Pakistan with many of them online branches in major cities of the country • Full day Banking One can avail the benefit of the services provided at the bank till 5:00 P. which is highly useful for those customers who find it difficult to leave their officers in the morning. • Electronic Banking The revolution in the banking in the form of electronic banking operations have opened avenues of excellent. • Customized solutions The management of the bank believes in customer focused banking rather than the product oriented banking. The customers of ACBL withdraw access their funds any time at all the ATM Sites with ASKCASH Logo. The products and services designed by the bank are specifically tailored to the individual needs of its customers. • Atm Network The bank has the largest ATM Network cross the country.m. efficient and quick services saving the time and costs of the customers and fortunately ACBL is among those few banks who are already reaping the benefits of electronic transactions.
computer based teller equipment. banking on the phone line thus saving the precious time of the customers. automatic teller machines.clearing process. was quite low. it is becoming clear that the true lasting competitive advantage comes through human resources and how they are managed. still the bankers use to make their entries in the accounting register. Not Highly Automated The bank has still some of the traditional ways of operations in this advanced technological environment. Weaknesses In my opinions these are the points that might be detrimental to the efficiency and profitability of the bank. Manual Book Keeping Although the bank has computerized accounting system but. Low Job Satisfaction Understanding and the effective management of the human resources is the most difficult challenge faced not only by the bank but by all the organizations. 33 . Even though the people have been sacrificed in the new organizational developments. ACBL seems to not focusing on this highly critical issue as the job satisfaction level of the employees working at ACBL. and electronic funds transfers among the others. Phone Banking Phone banking service is very attractive for those classes of customers who don’t have time to personally come to the bank i.e.
I personally observed that delay occurred in the operations of the employees only due to the fact that they had not got any instructions from the head office. Otherwise the situation might be like this ‘Jack of all and master of none. They have to learn based on their observations and also their mistakes. Lack of Training Facilities Presently there is no specific training program arranged for the new recruiters. But centralization is effective up to a certain level otherwise it becomes inefficient and at times costly too. Almost all the decisionmaking is in the hands of the upper management. Strong potential for growth 34 .Lack of Specialization This famous and useful concept given by Adam Smith in 1776 seems to be missing in the bank. Opportunities Apart from the ones discussed in External Factors Evaluation Matrix. It takes a bit time for the fresh one to learn the banking the result is huge amount of blunders. the bank is facing the following threats and opportunities currently: These are positive external environmental factors effecting the organization. resulting in monetary and non-monetary losses for the bank. A large amount of foreign investment is attracted. There is pressure not only on the new learner but also on the person placed upon with this responsibility. mistakes etc. But I think this is not a very good tactics used by the management. The employees are constantly rotated from one job to another job of totally different characteristic in the view of giving them the know-how of the working in all the departments. • • • It deals in bulk business.’ Centralization There is a high degree of centralization in the bank.
2. It may result in decrease in the number of its exiting customers. of Pakistan national saving scheme offers attractive rates of return (approx. that the whole branch would get benefit out of it. the Govt. • Less attractive rate of return Commercial banks face considerable competition in attracting deposits from individuals or small investors. RECOMMENDATIONS • All the departments should work as a team not as individuals. the job satisfaction level of the employee is very low resulting in high turnover. 35 . there is a lack of teamwork. which is bad for any organization as there are huge monetary and non-monetary costs involved in the fresh recruitments. 16 to 18 percent annually) on 1015 year fixed accounts. so. In contrast. • • High charges The schedules of charges indicate that the fees charged by the bank on the various services it provides are extremely high.• • • • • Steady increase in Customer Deposits Overseas Operations Branches In Remote Areas Islamic Banking Sharp increase in imports and exports Threats • High Employee turnover As discussed above. which banks find difficult to match.3. Further more. this could be very alarming situation for the bank in case some of the competitors grasped the opportunity and lowered its rates. So.
The software and hardware. of the bank should be upgraded. Such procedures / methods can later on be implemented for the whole bank to be followed which would in turn increase the efficiency level of Askari Bank. which is called as ‘System’. Such incentives can be in the form of bonuses for those who performed really well for a time span of 2 or 3 consecutive months. Similarly. Better computer specialists should be hired to program a new system as I found out that majority of the problems are occurring because of up gradation and changes in the current system. • Adopt more aggressive marketing strategy and should be proactive in social causes. employees would have a free hand to make certain decisions according to their own work experience.• • As they lack international presence. but it often crashes so its better that Askari Bank adopts new and modern mechanisms for maintaining its technology as some times systems get hanged. I believe more incentives should be given to the human resource to keep them committed to their bank. 36 . so it’s better for them to take advantage from international banks and try to adopt their policies and strategies to be in their line. Such measure would also make them know where exactly do they stand and what exactly are they doing for the Bank. Incompetent workers cause damage to bank’s repute and smooth flow of branch. • If leadership to some extent becomes decentralized. bank currently owns is in working condition. it would initiate other employees to come onto certain measures which should be implemented amongst the whole organization. Employees if given a free hand can at times come up to certain procedures which are less time consuming and more beneficial for the whole organization. Right now the bank plays little or no role in social causes whereas its competitors are actively participating. Job rotation of such capable employees is another good idea in which officers should be given different tasks (job rotation) or multiple tasks (job enlargement) to ensure the officials that they are an important asset for the multinational organization. Although technology. • • The reference based criteria should not be followed for recruitment of employee.
I have realized my abilities and expertise of working in that kind of environment. part or full time. The strong leadership of Board and management and the relentless effort of the staff at Askari 37 . 2. CONCLUSION This internship experience has been very much informative for me as it helped me in numerous ways like in learning new things and ideas about official environment and now I have the knowledge and experience of working in office environment.4. Internship is a supervised pre-professional career related experience paid or unpaid.• There should be some training system for internees and also some reward system for internees so that to motivate them for high performance and low absentees. Askari Bank Ltd will remain an aggressive and innovative financial institution and continue to adhere to the tradition of understanding its customer’s needs and looking for new ways to serve them. with measurable learning objectives and formal evaluation. Further integration and productivity gains will result in stronger performance in terms of revenue as well as service quality in the coming years.
The people of bank innovation. customized services and their execution are the key ingredients for their future growth. Their focus would be to constantly seek out growth opportunities through increased quality assets and by offering a wider range of products and services to their esteemed customers. They are committed to enhancing the shareholder’s value and look forward with greater optimism to a prosperous future for ASKARI BANK. Revenues from these activities have started yielding dividends and they expect significant growth in these areas in the coming years. They are aware that they have stepped into the 21st century and they must meet its challenges by acquiring the highest levels of Technology. They will thus be accelerating their enable them distribute their products and services through most efficient and hightech means. their Treasury Division and the Structured Finance Unit have been geared to provide specialized services to the corporate customers. Askari Bank views specialization and service excellence as the cornerstone of its strategy. There are significant growth opportunities for ASKARI BANK and they are confident in their ability to grasp them. 38 .Bank Ltd will be able to offer more superior products and services to customers and to contribute more to economic and social development of Pakistan while developing a bigger future for it. the Retail and Corporate areas of their operations will continue to provide a strong and stable base to the business of the Bank. creativity. reliability. They say that they will invest in the modern tools and substantial allocation of resources will be made to achieve this objective during the current year. Based on this approach. While building on their in-depth familiarity with their customers’ needs and anticipated developments in the banking industry.
com/creditcards/index.pk/ 3. 34.REFERENCES: 1.google.com. Vol. www. http://www. Askari Bank Ltd 39 . http://www. Economic Bulletin.asp 4. No.wikipedia. Brochure.org/wiki/Askari 5.askaribank.askaribank. http://en. published Bi-monthly by Economic Research Wing.com/ 2.5 September – October 2008.ACBL Awards & Achievements 6.
ACBL News lines.7. Askari Bank ltd. 8. s Newsletter January 2008 40 . published bi-monthly by Economic Research Wing. March-June 2008. Economic Bulletin.
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