Internship Report on

Ratio and SWOT Analysis of Askari Bank Ltd, The Mall

Branch, Mardan

By
Tauseeq Ahmad

INTERNSHIP REPORT SUBMITTED IN PARTIAL FULFILMENT OF

THE REQUIREMENTS FOR THE DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

To
THE DEPARTMENT OF MANAGEMENT SCIENCES

ABUL WALI KHAN UNIVERSITY, MARDAN

 ACKNOWLEDGEMENT

In the name of Allah the most beneficent, the most merciful. I thanks to ALLAH
ALMIGHTY for His blessings that I’m able to perform the internship program
effectively and efficiently. I’m very thankful to my teachers who gave me enough
knowledge about the taking of the internship program. I’m thankful to my parents also
from whom I have been able to perform the internship program. I am indebted to all my,
friends, especially staff of the AKBL branch Mardan, without their help I would not be
able to learn and perform well in the period of my internship learning. Whenever I asked
from them. Every person in branch gave me special attention and guide me every time.
It is also a great pleasure to record honorable regards to all those who helped us lot in
learning and enhancing our knowledge and ability during the report.
Finally for all possible errors, omissions and shortcomings in writing of this report only
we are responsible for which we hope that all concerning regards of this report will
forgive us.

Thank you
 DEDICATION

To my loving and respected parents, without their

prayers, support and love I would have been nothing and
to my loving alma mater Abdul Wali Khan University,
Mardan.
 Contents

ACKNOWLEDGEMENT...................................................................................................1

DEDICATION................................................................................................................... 2

EXECUTIVE SUMMARY..................................................................................................1

CHAPTER 1...................................................................................................................... 2

INTRODUCTION OF THE BANK......................................................................................2

1.1 Introduction..........................................................................................................................2

1.1.1 Branch Network of Askari Bank limited (AKBL)....................................................3

1.1.2 Core Values of Askari Bank........................................................................................3

1.1.3 THE VISION................................................................................................................4

1.1.4 THE MISSION.............................................................................................................4

1.1.5 OBJECTIVES..............................................................................................................4

1.1.6 AWARDS & ACHIEVEMENTS..................................................................................6

1.2 Organizational Structure.......................................................................................................7

1.3 Departments of Askari Bank.................................................................................................8

1.3.1 Account Opening Department...........................................................................................9

1.3.2 LOCKERS.......................................................................................................................11

1.3.2 FOREIGN TRADE DEPARTMENT..............................................................................11

1.3.3 Clearing Department........................................................................................................12

1.3.4 Credit Department............................................................................................................14

1.3.5 Remittance Department...................................................................................................17

1.3.6 Agriculture Department...................................................................................................18

1.3.7 Cash Department.............................................................................................................19

CHAPTER 2.................................................................................................................... 20

RATIO ANALYSIS......................................................................................................... 20
 2.1 Ratio Analysis.....................................................................................................................20

2.2 Profitability/ Efficiency Ratio.............................................................................................20

2.3 Liquidity Ratio:.............................................................................................................22

2.4 Leverage Ratio:...................................................................................................................23

2.5 Cash flow Ratio:............................................................................................................24

CHAPTER 3.................................................................................................................... 26

SWOT ANALYSIS.......................................................................................................... 26

..................................................................................................................................................27

3.1 Strengths.............................................................................................................................27

3.2 Weaknesses.........................................................................................................................27

3.3 Opportunities......................................................................................................................28

3.4 Threats................................................................................................................................28

CHAPTER 04.................................................................................................................. 29

CONCLUSION AND RECOMMENDATIONS..................................................................29

Conclusion................................................................................................................................29

Recommendations....................................................................................................................29

Learning As an Internee....................................................................................................31

References....................................................................................................................... 33
 EXECUTIVE SUMMARY

For the economic growth and development of a country, bank are vital as they play an

efficient role in the overall performance and growth of a nation. If a country is having

strong banking sector so it shows us a good economic health of that country. The overall

savings and deposits of the customers are used by its bank in different projects in order to

boost the economy. It also helps the government to open more and more jobs for the

public in order to decrease the unemployment rate. A new direction is given to the

banking sector after the establishment of Askari Bank Ltd in Pakistan. The overall

strengths of the bank are high productivity and high level of security to the overall

deposits and funds of the customers as well as the use of up to dated technology. This

report consist of my tasks which I have performed during my internship. It also consist of

different findings and results. I learn about the different activities which are performed in

the different departments of Askari Bank, The Mall Mardan . the last section of this

report consists of SWOT analysis with conclusions and recommendation at the end. The

recommendations are mainly based on my observations in the bank. With increase in its

customer base and deposit along with the adoption of latest technology, the future of this

bank will be very strong.

1
 CHAPTER 1
INTRODUCTION OF THE BANK

1.1 Introduction
Askari Bank is a public limited company which was incorporated in Pakistan on October
9, 1991. It has started its operations on April I, 1992, and is principally engaged in the
business of banking. as defined in the “Banking Companies Ordinance, 1962”.The Bank
is listed on the Karachi, Lahore and Islamabad Stock Exchanges and its shares have
consistently remained amongst the highest quoted in the banking Sector in Pakistan. The
bank is working from many years. The Askari bank helps the country in boosting its
economy as well as it helps the customers in their day to day operations. It also help the
customers by providing them the facilities of loans and mortgages.
Askari Bank has expended into a nation-wide presence of 421 conventional branches, 94
"Islamic Banking Branches" including 3 sub branches and an "Off-Shore Banking Unit"
in Bahrain. A shared network of over 1300 on-line ATMs covering all major cities in
Pakistan supports the delivery channels for customer services.
Since inception, the bank has concentrated on growth through improving service quality,
investment in technology and people, utilizing its extensive branch network which
includes Islamic and agricultural banking. Corporate Social Responsibility is an integral
part of the way we do business. In order to fulfill our CSR objectives, we attempt to
promote public interest by encouraging community growth and development through
sponsoring social service events, supporting education, sports and environment and also
contribute in socio-cultural activities.

Listing of the Bank

Askari Bank is listed on Karachi, Lahore and Islamabad stock exchanges.

Commencement of Business
The Bank obtained its business commencement certificate on February 26, 1992 am
started operations from April 01, 1992.

2
Registered office
The registered office is situated at AWT Plaza, the Mall, Rawalpindi.

1.1.1 Branch Network of Askari Bank limited (AKBL)

The expansion and overall diversification of the bank help to attract more and more
customers. In 1992, only 7 branches were working but now there are total 515 branches
working nationwide. The network of the branch is connected on-line real-time. And the
overall network of the bank is area wise/region wise. This system of the area and region
office was introduced in 1992. The main aim of this system was to supervise and control
different branches effectivity.

1.1.2 Core Values of Askari Bank

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

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

Fairness: Exemplary compliance, governess and business ethics

Teamwork: Caring for our people and helping them to grow

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

3
1.1.3 THE VISION

“To be the bank of first choice in the region”

1.1.4 THE MISSION

“To be the leading private sector bank in Pakistan

with an international presence, delivering quality
service through innovative technology and
effective human resource management in a
modern and progressive organizational culture of
meritocracy, maintaining high ethical and
professional standards, while providing enhanced
value to all our stakeholders, and contributing to society”.

1.1.5 OBJECTIVES

4
 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 all kinds of risks inherent in the banking business.
 To maximize use of technology to ensure cost-effective operations, efficient
management information system, enhanced delivery capability and high service
standards.
 To manage the Bank's portfolio of businesses to achieve strong and sustainable
shareholder returns and to continuously build shareholder value.
 To deliver timely solutions that best meets the customers’ financial needs.
 To explore new avenues for growth.

5
 1.1.6 AWARDS & ACHIEVEMENTS

 “The Best Annual Report Award for the year 2012 – 2nd Runner-up“ by ICAP & ICMAP

 “The Best Annual Report Award for the year 2011“ by ICAP & ICMAP

  “Best Presented Annual Report Award and SAARC Anniversary Awards for
Corporate Governance Disclosures 2011“ ” by South Asian Federation of Accountants

 “Best Retail Bank in Pakistan” by The Asian Banker

 “1st Consumer Choice Award” by the Consumer Association of Pakistan – 2004

 “Corporate Excellence Award” by the Management Association of Pakistan (MAP) – 2002,

2003 & 2004

 “The Best Bank in Pakistan” by Global Finance magazine – 2001 and 2002

 “Best Consumer Internet Bank” Global Finance magazine – 2002 and 2003

 “Euro money and Asia money Awards” – 1994, 1996 and 1997

 “Best Presented Annual Accounts” by (ICAP) and (ICAMP) – 2000, 2001 and 2002

 “The Best Presented Annual Accounts” by South Asian Federation of Accountants (SAFA), in
the SAARC region

 “The Best Consumer Banking Award 2006” by the Consumer Association of Pakistan – 2007

 “The Best Retail Banking Award 2008” by Pakistan Guarantee Export Corporation Ltd – 2008

 “Best Corporate Report Award for the year 2008″ by ICAP & ICMAP – 2008

 “The Best Annual Report Award for the year 2010″ by ICAP & ICMAP

 “The Best Presented Accounts Award 2010 – 2nd Runner Up-Joint” by South Asian
Federation of Accountants

6
1.2 Organizational Structure
PRESIDENT

SENIOR EXECUTIVE VICE PRESIDENT

EXECUTIVE VICE PRESIDENT

SENIOR VICE PRESIDENT

VICE PRESIDENT

ASSISTANT VICE PRESIDENT

BRANCH HIERARCHY v

OFFICER GRADE 1

OFFICER GRADE 2

OFFICER GRADE 3

v
JUNIOR OFFICER

v
PABX OPERATOR

v
DRIVER

v
PEON

7
1.3 Departments of Askari Bank

Askari bank is divided in to different departments according to their work and daily tasks. These
departments are working under the policies of the bank. The main branch of askari bank located
on Qazi Basir Ahmad Road Mardan is also working under the policy of the bank. Different
departments of the main branch are

 Account Opening Department

 Clearing Department
 Accounts Department
 Cash Department
 Remittances Department
 Credit Department
 Agriculture Department

8
1.3.1 Account Opening Department
The opening of an account is the establishment of banker-customer relationship. The
account opening department is the main department in any bank.
In AKBL Mardan, Mr. Majid Ali Sahibzada is operating the account opening
department. At the time of opening an account of customer he makes preliminary
investigation of customer in order to avoid fraud and safeguard Against Unintended
Overdraft.

Functions of Account Opening Department

Following functions are to be performed by account opening Department
 Providing account opening form according to the requirement of the customer that
which type of account customer actually wants to open a corporate account, joint
account, individual account etc.
 Guide the customer that what type of requirements should be fulfilled in order to
open the account.
 Check the form carefully that the customer correctly completed their account
opening form.
 Check the customer signature is matching with the ID Card signature.
 If the customer signature is different from ID card signature, on the undertaking
form both sign is taken and new sign is use for account opening.
 Stamping on the form and on all related documents.
 Issuance of cheque books.
 Issuance of account maintenance certificate (on customer demand).
 Closure of account.
 Verification of signature in case of cheque presented before releasing of account
opening from SS card is not yet scanned.
 Prepare deposit slips for customer.
 Give ATM and Cheque books to customers.

9
  Keeping record of ATM, Cheque books, SMS Alerts, Account opening form, etc.

Types of Account Opening Form

1. Assan Form
2. Individual / Joint Form
3. Corporate Form

Documents Required
Following are the documents which are necessary required from customer according to
account opening form:

Assan Account Form

 CNIC Copy.
 Copy of ID Card of next of kin.
Individual / Joint Account Form
 CNIC Copy.
 Copy of ID Card of next of kin.
 Business letter or job proof if salaried person.
Corporate Account Form
 CNIC Copy
 Copy of NTN (National Tax Number)
 Company Letter Pad

Account Opening Procedure

A banker must have following information about the customer;
 Customers Name
 Address
 Contact numbers
 Mailing Address / Permanent Address
 CNIC number
 Expiry date of CNIC
 Nationality

10
1.3.2 LOCKERS

Askari bank offer facility of lockers to its customer

There are three sizes of lockers available.
Size of locker Rent of locker (Rs.) p.a
Large 7000
Medium 5000
Small 4000

 For large lockers, the rent is nil in case of refundable security deposits of Rs.
100000/-
 While in case of medium and small lockers, the rent is nil in case of refundable
security deposits of Rs 50,000/- and 40,000/- respectively

1.3.2 FOREIGN TRADE DEPARTMENT

Foreign trade department deal in:
 Foreign currency account
 Export
 Import

Export:
Mainly export deals with:
 Negotiation of documents
 Sending the documents for collection
 Post shipment financing
 Remittance against agent commission
 Forward covering booking
 E-Form
 This section helps the exporters to settle the financial affairs

11
Import:
Mainly import deals with
 Opening the letter of credit
 For issuing the L/C bank required sufficient funds in the account if importer.
 Scrutinize the documents receive from flowing bank under letter of credit.
 Arrange forward cover booking regarding import payments
 Also arrange forward cover booking for letter of credit open other than Askari Bank
Ltd.
 Submission of monthly return to SBP regarding the import on form.

1.3.3 Clearing Department

In order to make arrangements for the speedy and economic collection of cheques, drafts or other
documents payable or deliverable at or through offices of members of Clearing House, Clearing
services are provided in all big cities by State Bank of Pakistan or National Bank OF Pakistan,
where State Bank has no office.

TYPES OF CLEARING
Following are the two types of clearing:
 Inward clearing
 Outward clearing
 Outward Bills for Collection (OBC).

PROCEDURE OF INWARD CLEARING

When our branch customer gives his/her cheque to the account holder of other bank
(HBL, UBL, ABL etc.) then the customer of that specific bank deposits that cheque in his
account.
The bank’s clearing representative receives the instrument drawn on our bank presented by other
banks through clearing house under the clearing schedules. After the receipt of instruments from
other banks, the bank’s representative enters them in the summary sheet under the columns
pertaining to inward clearing (received).
The instruments received in Inward Clearing are also checked on the following counts:

12
  The crossing and clearing stamps of the collecting bank have been affixed and the
clearing stamp is correctly dated as of the date of presentation in clearing.
 The crossing and clearing stamps are of the same bank.
 Specially crossed instrument has been presented by the same bank or its agent.
 Collecting bank’s discharge is in order.
 Crossing of a bank, other than the collecting is cancelled.
 Amount in words and figures
 Signatures and balance

PROCEDURE FOR OUTWARD CLEARING

Our customer deposits the cheques of other banks with us. The amount is credited to his account
and the cheques are physically send to the respective bank for clearing.
In outward clearing the deposit of the customer account increases and so the branch.

Bank’s discharge is given on the back of the instruments. The Pay-in-Slip is stamped on both
parts, with the clearing stamp dated for next working day, putting his signatures beneath the
stamp. The pay-in-slip along with the instrument is passed on to the concerned authorized
checking officer for his signature on the pay-in-slip and discharge.
After his signature the counter-foil is handed over to the depositor.
All instruments received over the counter and from branches for outward-clearing are entered in
the Outward Clearing Sheet. All columns of the Sheet are filled-in for each instrument received
for outward clearing. In case an instrument has been received from any other branch of the bank,
the name of the branch is mentioned in the column for name of depositor. At the close of the
business total amount of all items entered in the Sheet is worked out and mentioned at the end of
the day’s entries.

All instruments received for outward clearing is sorted bank-wise. Bank-wise schedules is
prepared in duplicate and totaled individually. The grand totals of all schedules, amount and
number of instruments, must agree with the totals as per Outward Clearing Sheet. A bank-wise
summary of all outward clearing is prepared as per bank-wise schedule, on the form and the total
number of instruments; their amount is mentioned in the relevant printed columns.

13
This total is cross checked with the totals as per Outward Clearing sheet/grand total of bank-wise
schedules. After completing the above formalities vouchers for the outward clearing is prepared
and placed, along with schedules in the outward clearing Sheet, before the checking officer for
checking, signing bank’s discharge/relevant vouchers and schedule(s).

The checking officer ensures that all formalities mentioned before have been duly completed and
then release the vouchers for posting in the relevant accounts on the next working day. The
instruments are presented in the first clearing the next day in Clearing House by the bank’s
clearing representative to other bank’s representative along with the bank-wise schedule. One
copy of schedule is received back from other banks representative after obtaining his
acknowledgement.

Outward Bills for Collection (OBC)

OBC is used only for those areas where NIFT is not operating. It takes more time to clear the
cheques and also charges are high as compared to NIFT. In OBC cheques are sent through courier
to the drawee branch with request to send us Bank Draft drawn on the nearest branch.

1.3.4 Credit Department

Credit means advances, loans arranged for the worthy customers. In AKBL Mr. Syed Saif Ul
Hadi is operating the credit department.

Forms of lending
Banks generally lend in the form of cash credits, overdrafts and loans. Banks lend money in the
form of ‘clean advances’ against Promissory Note as well as ‘secured advances’ against tangible
and marketable securities. The bankers prefer such securities which do not run the risk of general
depreciation due to market fluctuations. Common securities for the banker’s advances are as
under:
 Pledge
 Hypothecation

14
 Guarantees
 Indemnity

Pledge
In the pledge the ownership remains with the pledger, but the pledgee has the exclusive
possession of property until the advance is repaid in full, while in case of default the pledge has
the power of sale after giving due notice.

Hypothecation
When property in the goods is charged as security for a loan from the bank but the ownership and
possession is left with the borrower, the goods are said to be hypothecated.

Guarantees
When an applicant for an advance cannot offer any tangible security, the banker may rely on
personal guarantees to protect himself against loss on advances or overdraft to the applicant.

Indemnity
A contract by which one party promises to save the other from loss caused to him by the conduct
of the promisor himself or by any other person is called a contract of indemnity.

Classification of Credit Facilities

The credit facilities extended by the bank are classified as: -
1. Funds Based.
2. Non-Funded.

Funds Based Credit Facilities

In such type of facilities the bank provides finance to its customers. Askari Commercial Bank
makes numerous types of funds based advances to its customers.
A few of important advances are discussed below.
1) Running Finance
2) Cash Finance

15
3) Term Finance

Running Finance
It is allowed to the borrower under a pre-sanctioned limit. A current account is opened
and the conduct of this account is kept under review for a period of three to six months.
The borrower can draw cheques on his current account but maximally up to the amount
of limit sanctioned to him. The amount outstanding against the borrower is shown as
debit in the account for a partial amount. The markup is charged on the basis of Daily
Products of the amount outstanding.

Cash Finance
This type of finance is allowed to the borrower against the hypothecation or pledge of the
moveable property/stock of the borrower. In majority of cases this finance is allowed
against pledge of stock (cash crops). The amount of finance is credited to borrower
special finance account and he/she utilizes it for business purposes. For this account the
separate cheque book is issued to the borrower.

Term Finance
It is a loan account opened in the name of the borrower. The amount of finance is credited to
borrower’s personal account by debiting the Term Finance Account. The amount of finance is
distributed in lump sum. The repayment of Term Finance is usually in installments and besides
other documents a letter of installments is taken from the borrower at the time of disbursement.
By that letter, the borrower binds himself to pay the installments at regular intervals. The amount
of installments includes principal plus markup for repayment period.

Contingent Non-Fund Based Facilities

In such type of facilities, the bank provides only guarantee to third party on behalf of its
customers.
Types of non-funded credit facilities:
I. Letter of Credit

16
II. Letter of Guarantee

Letter of credit
A letter of credit as name signifies does one person or bank to another requesting the
letter to pay any amount of money up to a certain limit to the person write a letter named
in the letter or in whose favor the letter is written. In this letter generally a date is fixed up
to only the addressee should make which advances. Thus a letter of credit remains in
force up to a certain date only. Generally, banks grant this letter of credit.

Letter of Guarantee
Guarantees issued by the Bank are classified under two broad categories.

Financial Guarantee
Where the bank guarantees the fulfillment of a financial commitment on behalf of
customer.
Performance guarantees
Where the bank guarantees the performance of a contract or other work as specified in
the guarantee

1.3.5 Remittance Department

The need of remittance is commonly felt in commercial life particularly and in everyday life
generally. The main function of the remittance Department is to transfer money from one place to
another. By providing these services to the customer, bank earns a lot of money. Also customers
become able to meet its day to day financial requirements. This Department deals with the local
currency transfer only. AKBL provides these services to both customers and non-customers.

Instruments of Remittance Department

The remittance department main function is to transfer money from one place to another. The
remittance department deals with the following instruments in order to transfer money from one
place to another place;

17
1. Pay Order
It is an ins trument
issued for payment in same city. Pay order issued from one branch can only be payable from the
same branch. It is normally referred to as a banker’s cheque. It is also known as confirmed
cheque, because bank issues this on its own guarantee.

2. Demand Draft
It is an instrument payable on the demand for which value has been received, issued by the
branch of the bank drawn i.e. payable at some other place (branch) of the same bank.
If two banks are involved then the DD is sent to the other bank but in other cases it is handed over
to the applicant.

1.3.6 Agriculture Department

The role of agriculture in Pakistan economy is of pivotal nature. Due to diverse geographical and
climatic conditions, the country has tremendous potential for agricultural growth and
development. Askari Bank’s Agriculture and Rural Business Division (ARBD) has gained further
strength with improved and efficient delivery and control mechanism for meeting increased
demand for credit by the farmers in easy, accessible and affordable manner. With an innovative
product range, being best rated in the market, the Bank continues to surpass its allocated targets
for agriculture financing.

The uneconomic holding primitive method of cultivation, natural calamities such as floods and
drought, illiteracy of the cultivators and lack of infrastructure including organized ware-housing
have adversely affected the repaying capacity of the agriculturists.
Therefore financing of agriculture is much more complex as compared to commercial lending
and industrial lending. AKBL agriculture loans on easy terms and conditions to small scale land
owing farmers boost the country’s economy and yield greener harvests.
AKBL enables farmers to buy good quality seeds, fertilizers and pesticides.

Agricultural banking products and services are offered across the country through efficient
delivery channels under a control mechanism with minimum turnaround time for loan application

18
approvals. The Bank has set up a vibrant program for fresh lendings under revised parameters,
enabling farmers to avail financing in an easy, accessible and affordable manner.

1.3.7 Cash Department

All physical movement of cash in the bank is made through the cash department. Normally cash
department performs following functions:
 Receipts
 Payments
 Transfer of funds from one account to another
 Handling of ATM
 Verification of signatures
 Handling of prize bonds.

19
 CHAPTER 2
RATIO ANALYSIS

2.1 Ratio Analysis

It can be defined as a tool used by individuals to conduct a quantitative analysis of information in

a company's financial statements. Ratios are calculated from current year numbers and are then
compared to previous years, other companies, the industry, or even the economy to judge the
performance of the company. Ratio analysis is predominately used by proponents of fundamental
analysis. I have calculated and analyze different ratios for the purpose of financial analysis.

2.2 Profitability/ Efficiency Ratio

A class of financial metrics that are used to assess a business's ability to generate earnings as
compared to its expenses and other relevant costs incurred during a specific period of time. For
most of these ratios, having a higher value relative to a competitor's ratio or the same ratio from a
previous period is indicative that the company is doing well. I have calculated profitability ratios
for Askari Bank which are explained below:

Year 2008 2009 2010 2018 2019

Profitability/ Efficiency Ratio          
Spread Ratio 0.34 0.31 0.36 0.42 0.4
Net interest Margin Ratio 0.03 0.03 0.03 0.04 0.03
Return on Assets 0.00273 0.00371 0.0023 0.01 0.01
Return on Equity 0.08 0 0.04 0.14 0.15

Graphical Explanation:

20
 Profitability Ratio
0.45
0.4
0.35
Spread Ratio
0.3 Net interest Margin
0.25 Ratio
0.2 Return on Assets
0.15 Return on Equity
0.1
0.05
0
2008 2009 2010 2011 2012

Interpretation:
As it is clear from above explanation that profitability ratios are increasing with the passage of
time. This factor shows that margin of profitability increases and profit of the bank is increasing
which is a good sign for bank.

Profitability/ Efficiency Ratio:

Some other profitability/efficiency ratios measured and interpret here.

Year 2008 2009 2010 2011 2012

Profitability/ Efficiency Ratio          
Non-interest income to Total Assets 0.01 0.01 0.01 0.01 0.01
Interest Ratio 0.66 0.69 0.64 0.58 0.6
Admin. Exp. To Profit before tax 5.46 10.76 9.19 2.55 2.24
Admin Exp. To non-Interest income 2.03 2.11 2.67 2.58 2.09
Return on Revenue (ROR) 0.04 0.03 0.03 0.08 0.1

Graphical Explanation:

21
 Efficiency ratio
Non-interest income to
12
Total Assets
10 Interest Ratio

8
Admin. exp. to Profit
before tax
6 Admini Exp. to non In-
terest income
4
Return on Revenue
2 (ROR)
Return on Revenue
0
(ROR)
2008 2009 2010 2011 2012

Interpretation:
During two consecutive years 2009 and 2010 its ratio of administrative expenses to profit was
high which is not a positive sign but now it is decreased even below the ratio of 2008.This point
show the efficiency of organization to cater its financial problem. Its ROR is increasing it means
bank is going to earn more profit.

2.3 Liquidity Ratio:

A class of financial metrics that is used to determine a company's ability to pay off its short-terms
debts obligations. Generally, the higher the value of the ratio, the larger the margin of safety that
the company possesses to cover short-term debts.

Year 2008 2009 2010 2011 2012

Current ratio 3.4 3 3.5 3.2 2.9
Cash and balance with bank to total assets 0.16 0.15 0.14 0.15 0.16
Investment to Total Assets 0.22 0.25 0.28 0.36 0.35
Advances to Total Assets 0.55 0.48 0.5 0.42 0.44
Total liabilities to Total assets 0.95 0.94 0.95 0.94 0.94

22
Graphical Explanation

Liquidity Ratio
4.0
Current ratio
3.5 Cash and balance with
3.0 bank to total assets
2.5 Investment to Total
2.0 Assets
1.5 Advances to Total
1.0 Assets
0.5 Total liabilities to Total
0.0 assets
2008 2009 2010 2011 2012

Interpretation:
Current ratio of the bank is satisfactory. This ratio which is subject to seasonal fluctuations is
used to measure the ability of an enterprise to meet its current liability out of its current asset.
This ratio is decreased in 2009 and 2012 and highest in 2010. It shows that the bank has high
liquidity in 2010 and less power to meet its short term obligation in 2007.Other financial ratios
have shown a consistent manner. Bank is not trying to minimize its TL to TA ratio which is
almost same throughout the period. It should be minimizing so TL not exceed TA. Which shows
organization’s excellent position of liquidity.

2.4 Leverage Ratio:

Leverage ratio used to calculate the financial leverage of a company to get an idea of the
company's methods of financing or to measure its ability to meet financial obligations. There are
several different ratios, but the main factors looked at include debt, equity, assets and interest
expenses.

Year 2008 2009 2010 2011 2012

Leverage Ratio          
Capital Ratio 0.05 0.57 0.05 0.06 0.06
Deposit to Equity 17.64 14.7 15.87 15.57 15.11

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 Ratio
EPS 1.14 0.71 0.72 2.6 3.38

Graphical Explanation:

Leverage Ratio
20
18
16
14
12 Capital Ratio
10 Deposit to Equity Ratio
8
6 EPS
4
2
0
2008 2009 2010 2011 2012

Interpretation:
Leverage ratios of Askari bank shows that its financial value is enhancing. As we see its EPS is
increasing and from 2008 to 2012 the change in EPS is noticeable.

2.5 Cash flow Ratio:

This section of the financial ratio looks at cash flow indicators, which focus on the cash being
generated in terms of how much is being generated and the safety net that it provides to the
company. These ratios can give users another look at the financial health and performance of a
company

Year 2008 2009 2010 2011 2012

Cash Flow Ratio          
Cash flow to Profit after Tax 10.76 15.49 18.7 22.24 1.92
Cash flow to Current
Liabilities 1.65 2.3 0.99 0.82 0.15

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Graphical Explanation:

Cash Flow Ratio

25
20 Cash flow to Profit after
Tax
15
Cash flow to Current Li-
10 abilities
5
0
2008 2009 2010 2011 2012

Interpretation:
Cash flows are basically the cash inflows and out flows from the business many factors involved
in cash inflows as well as cash out flows. Cash flow to profit after tax ratio tell us that whether we
have availed all the opportunities for making profit or not Cash flow to current liabilities ratio is
decreasing with the passage of time.

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 CHAPTER 3
SWOT ANALYSIS

SWOT analysis is an abbreviation that stands for strengths, weakness,

opportunities, and threats. It is one of the best evaluations technique through which
institution’s internal strengths and weaknesses are investigated as well as its external
opportunities and threats. The complete assessment of an organization’s strengths,
weaknesses, opportunities and threats is called SWOT analysis (Colbert, n.d).
SWOT analysis has the following advantages:
 Take advantage of an institution opportunities and strengths.
 An organization can easily neutralize the threats by careful analysis, and
 Can easily evade and correct its weaknesses.

SWOT analysis is one of the most significant steps in framing strategy using the
organization mission as a context, managers analyze internal strengths distinctive
competencies and weakness and external opportunities and threats. In this global era, the
organizations are more dynamic than ever before (Colbert, n.d). Only those organizations
can compete in the race who updates itself with the passage of time. For this purpose
organizations assess their self to face the changing environment and make effective
strategies to reduce the risk. The objective behind SWOT analysis is formulating best
strategies by clearly identifying the internal strengths and weakness and also the factors
from external environment like opportunities and threats. An organization can grab the
external opportunities and can avoid threats by clearly identifying its strengths and
weaknesses. SWOT analysis is helpful in identifying the poor and solid areas of an
organization which makes managers able for strategic planning (Griffin, 2007). This
analysis tool is widely used in all organization all over the world and the intern also
chooses SWOT analysis for the assessment of AKBL, The Mall Branch, Mardan.

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3.1 Strengths
ASKARI BANK is a sound financial institution in Pakistan with considerably high good well. It
is because of the following strengths:
 Personalized and compassionate is the major strength of Askari Bank.
 And this service has to heavy positive impact on customer’s satisfaction.
 Customers’ loyalty is a key to success every organization, and this is also strength of
Askari Bank limited.
 Askari Bank has a very broad network and branches which makes people access easy and
convenient to it.
 Askari bank focusing on Trade financing: it attaches the great significance to the
development or maintenance healthy correspondence relationship with others banks and
financial institution.
 Askari Bank is well equipped with modern information system which adds to its strength
to deal.
 High credit rating by ASKCRA is a great strength for the Askari Bank.

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3.2 Weaknesses
Here is nothing in the world which is perfect. So same in the case with Askari Bank it carries
some weaknesses.
 Askari bank is falling a lot of behind in media for its marketing as compared with others
like HBL, UBL, MCB, ALFALAH and SCB.
 Asakri Bank has not so much market share this is also a weak point for askari.
 It has less number of branches as compared to its rivals.
 The bank staff are not satisfied from the policies of management.

3.3 Opportunities
 Fauji Foundation, being its parent organization provides a huge customer base for AKBL
to exploit.
 With increasing popularity, Askari Bank has opportunity to increase its market share.
 With the changing of E-Banking the Askari Bank has opportunity to offer new option and
different ion with others banks.
 Askari bank can design universal account like other foreign bank for online facility.
 Askari Bank’s fast spreading network the opportunity to capture other potential markets
not accessed by the other financial instruction and encase all the staff.
 Offering Islamic banking system is a great opportunity to get new customers and
touching height of success.
 Huge demand for consumer financing in our country offer great opportunity.

3.4 Threats
 The current political position is one of the major threats.
 The bad governance of government is also a threat for Askari.
 New introducing bank are also a threat for Askari just like FAYSAL, SONERI, JS,
SAUDI etc…
 Glooming economy means people have less savings to deposit in the bank.
 Also lower policy rate by SBP makes the bank unattractive for deposits.
 Micro banks like Jazz and Telenor can capture a sizeable portion of the market.

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 CHAPTER 04

CONCLUSION AND RECOMMENDATIONS

Conclusion
I observed the Askari Bank Limited a financially sound bank. Its profits are increasing year -by-
year. Its staff is very good and sincere with the bank. Askari Bank Limited Sahiwal branch has
made significant progress in building and strengthening both the corporate and retail banking
sectors in Pakistan.
Asian Bank Limited views specialization and service excellence as the cornerstone of its strategy.
The people at bank realize that innovation, creativity. Reliability, customized services and their
execution are their key ingredients for future growth.
Revenues from these activities have started yielding dividends and they expect significant
growth. They are aware that they have stepped into the 21st century and they must meet its
challenges by acquiring the highest level of the technology. They will thus be accelerating their
technological advance to enable them to distribute their products and services through most
efficient and high tech means. They say that they will continue to invest in the modern tools and
substantial allocation to resources will be made to achieve this objective during the current year.
Online banking have been started and the introduction of ATM at strategic locations have been
firmed up.

Recommendations
Besides taking care of the above mentioned problems there are some recommendations which can
be advised to the bank, which can be helpful for the Bank:
1. Employees should be given a course of training from time to time or they can also use the
on the Job training method. Training can be done in the following areas
 Better training of employees in the communication skills area

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  Undergrads have to be trained accordingly
 Continuous training about the latest updates
2. New advertising campaigns should be launched especially in the electronic advertisement
areas
3. There is a need for expansion of the working area especially in the finance department as
the work load is increasing and new recruitments are compulsory
4. Politics should be discouraged in such an environment
5. The employees should be given more incentives and rewards for their good performances
6. There should always be innovation in any business to flourish and there is a lot more to
explore in the banking sector and its always first come first served.

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Learning As an Internee
It was very good experience of internship at Askari Bank Limited. I was introduced to difference
aspects of banking and finance and found this field very interesting. This report comprises my six
week internship at AKBL.

Duties and New Knowledge Acquired

1st and 2nd Week
I started my first day of internship with the introduction of bank employees and with introduction
of bank departments. In This week just know how work done in the various departments in the
bank Like: Finance/ credit department, Operation Management, Cash department, Account
opening department I knew about the purpose of the bank and the functions of the bank and
judge the practical performance of the departments. I learnt about basic modes of AKBL, then I
learnt about characteristics of these modes in first week. Then I learnt about the Debit Visa Card

31
and SMS alert. I learnt about the types of Financial Products like Deposit Account and Term
certificate.

3rd and 4th Week

During 3rd week they told me about the stamping of account opening form. How and where to
stamp. Cutting is not allowed on the form I stamped an empty account opening form just for
practice. Personally deals the customers and gave them information about account and products
information. Fill two spare account opening form for practice Filled three account opening form
of customers with the help of Operational Manager Ms. Sumaira Jaffer. Personally deals the
customers and gave them products knowledge who wants to open their account Filled the account
opening form and also stamped the form. AKBL is a centralized bank that’s why account opening
have to fill carefully because the form is approved by head office .Told me when they use
signature differ form. When they use address differ form. And when letter head pad is required.
During 4th week I learnt about how to maintain the record in the register when cheque book is
delivered to the customer. I learnt about how to maintain the record in the register when ATM
card is delivered to the customer. I learnt about how to maintain the record in the register when
Cheque Books is delivered to the customer.

5th and 6th week

During my 5th week of internship I came to know about the facility of LOCKERS and its
functions. Lockers have 3 types of it: Small Size Lockers, Medium Size Lockers, and Large Size
Lockers. The officer told me its functions and charges. I also learnt about inward and outward
clearing and learnt how the transactions are made.
During 6th week, I learnt about maintainace of TDR Balancing Report, Cheque Book
Maintainace Report, Daily Account Maintaince Report and Non-Financial Transactions Report.
And I learnt about Subsidiary Ledger and Daily Major Deposit and Withdrawals Reports and also
get overview of these reports from Sir. Ali Shah.

Problems Encounter
In the start I faced many problems like to difficulty to understand the work but the AKBL staff
was very good and co-operative there. They helped me a lots and having a good time in bank.

My Experience at AKBL and Its Impact on My Career

32
During my six weeks internship in AKBL, I get a very good knowledge of banking. The
management provides me a rotation plan of all the departments. I spent at least one week in each
department. The employees of all the departments cooperated with me very much. They all
helped me a lot in each and everything. I also learned that what type of behavior use and which
type of language use with the customer and how attract toward it. Behavior of employees is very
good to me. This internship provides help to get job in the banking sector. Experience of
internship is good to me and I make relationship with the employees. Experience of internship
helps me in professional life. I think this experience help me in my career.

References

Askari Bank Ltd. (2019, August). Retrieved from Askari Bank Ltd Web Site:
http://www.askaribank.com.pk
Hadi, S. S. (2019, September). Credit Incharge. (T. Ahmed, Interviewer)
Humayun, M. (2019, September). Branch Manager. (T. Ahmed, Interviewer)
State Bank of Pakistan. (2019, Septembet). Retrieved from State Bank of Pakistan Web
Site: http://www.sbp.gov.pk

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Colbert, F. (n.d.). Chron. Retrieved on August 12, 2017 from
Chron:http://smallbusiness.chron.com/ definition-swot-analysis-43274.html
Graffin, R. W. (2007). Principle of management. New York. USA: George Hoffman.

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