Final Askari Report

Internship Report
EXECUTIVE SUMMARY
This report is about my internship program with Askari Bank Limited. In this
comprehensive report, I have discussed about every major aspect of the bank, which I observed and
perceived during my internship program. In this report you will find the detail about the bank right
from its incorporation to the current position. Along with it, the processes, policies and procedures
of the bank are also discussed in detail.
During my internship program, I mainly worked with two departments: Credits, and General
Banking. These two departments have been discussed in detail and all the policies and procedures
have been described thoroughly.
As the main purpose of internship is to learn by working in practical environment and to
apply the knowledge acquired during the studies in a real world scenario in order to tackle the
problems using the knowledge and skill learned during the academic process, In this report the
detailed analysis of the organization has been done and all the financial, technical, managerial and
strategic aspects have been evaluated to analyze the current position of the organization. Along with
it, the background analysis, the prevailing competition analysis, the business process analysis, and
the internal environment and external environment of the organization have been discussed and the
recommendations for the improvement have been made wherever required.
In the end the learning and experiences section consists of all the policies, processes,
practices and procedures which I have undergone through and learned during my internship
program. This report also contains my perceptions about the employees’ satisfaction, motivation
level and the working environment of the organization.
Department of Commerce 1
Internship Report
Askari Bank was incorporate in Pakistan on October 9, 1991, as a public limited company. It
commenced operations on April 1, 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 share have consistently remained amongst the highest quoted in
the banking sector in Pakistan.
Askari bank has expanded into a nation-wide presence of 121 branches including 6 dedicated
Islamic Banking Branches, and an Off-Shore Banking Unit in Bahrain. A shared network of over,
1,300 on-line ATMs covering all major cities in Pakistan supports the delivery channels for
customer service. As at December 31, 2006, the Bank has equity of Rs. 11.1 billion and total assets
of Rs. 166.0 billion, with over 665,000 banking customers, serviced by our 4,585 employees.
Their correspondent networks are in 190 countries. ABL Bahawalpur branch was established on 25
October 1997. It is a 11th branch of Punjab and 25th branch of country.
Over the years, Askari Bank has proved its strength as a leading banking sector entity, by achieving
the following firsts in Pakistani banking:
i) First Pakistani Bank to offer on-line real-time banking countrywide.
ii) First Bank with a nation-wide ATM networks.
iii) First Bank to offer Internet banking services.
iv)First Bank to offer e-Commerce solution.
Internship Report
To be the leading private sector bank in Pakistan with an international presence, delivering quality
services 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 stakeholders, and contributing to society.
To be the bank of first choice in region.
CORE VALUES
The intrinsic core values, which are corner stones of our corporate behaviour, are
 Commitment
 Integrity
 Fairness
 Teamwork
 Service
OBJECTIVES
 To achieve sustained growth and profitability in all areas of business.
 To build and sustain a high performance culture, with continuous improvement focus.
 To develop a customer-service oriented culture with special emphasis on customer care and
convenience.
Internship Report
 To build an enabling environment, where employees are motivated to contribute to their full
potential.
 To effectively manage and mitigate all kinds of risks inherent in the banking business.
 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 business 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 and profitability.
Internship Report
 To comprehensively plan for the future to ensure sustained growth and profitability.
 To facilitate alignment of the Vision, Mission, Corporate Objective sand with the Business
Goals and Objectives.
 To provide strategic initiatives and solutions for projects, products, policies and procedures.
 To provide strategic solutions to mitigate weak areas and to counter threats to profits.
 To identify strategic initiatives and opportunities for profit.
 To create and leverage strategic assets and capabilities for competitive advantage.
Askari Bank seeks to maintain high standards of service and ethics enabling it to be perceived as
impartial, ethical and independent. In addition to the general guidelines, the following are the
salient features of the Bank’s code of ethics and conduct.
 Presence of corporate culture that seeks to create an environment where all persons are treated
equitably and with respect.
 Employees must carry out their responsibilities in a professional manner at all times. They
must act in a prudent manner and must avoid situations that could reflect unfavorably on
themselves, the Bank or its customers.
 Employees must commit to the continued development of the service culture in which the Bank
consistently seeks to exceed customer’s expectations. Fairness, Truthfulness and Transparency
govern our customer relationships in determining the transactional terms conditions, rights and
obligations.
 Employees must safeguard confidential information which may come to their possession
during the discharge of their responsibilities. Respect for customer’s confidential matters, merits
the same are as does the protection of the Bank’s own affairs or other interests.
 Employees must ensure that know your customer principals are adhered by obtaining
sufficient information about the customers to reasonably satisfy ourselves as to their reputation
standing and the nature of their business activities.
Internship Report
 Employees must avoid circumstances in which their personal interest conflicts, or may appear
to conflict, with the interest of the Bank or its customers. Employees must never use their
position in the Bank to obtain an advantage or gain.
 Employees must not enter into an agreement, understanding or arrangement with any
competitor with respect to pricing of services, profit rates and / or marketing policies, which
may adversely affect the Bank’s business.
 Employees must not accept gifts, business entertainment or other benefits from a customer or
a supplier / vendor, which appear or may appear to compromise commercial or business
relationship.
 Employees must remain alert and vigilant with respect to frauds, thefts or illegal activities
committed within the Bank premises.
Internship Report
BOARD OF DIRECTORS
Lt. Gen. Waseem Ashraf
Chairman
Lt. Gen. (R) Zarrar Azim
Brig. (R) Muhammad Shiraz Baig
Brig. (R) Asmat Ullah Khan Niazi
Brig. (R) Muhammad Bashir Baz
Brig. (R) Shaukat Mahmood Chaudhari
Mr. Kashif Mateen Ansari
Mr. Zafar Alam Khan Sumbal
Mr. Muhammad Afzal Munif, FCA
Mr. Muhammad Najam Ali, FCA
Mr. Tariq Iqbal Khan, FCA
(NIT Nominee)
Mr. Shaharyar Ahmad
President & Chief Executive
AUDIT COMMITTEE
Brig. (R) Asmat Ullah Khan Niazi
Chairman
Brig. (R) Muhammad Shiraz Baig
Mr. Kashif Mateen Ansari
COMPANY SECRETARY
Mr. Saleem Anwar, FCA
AUDITORS
A.F. Ferguson & Co.
Chartered Accountants
LEGAL ADVISORS
Rizvi, Isa, Afridi & Angell
REGISTERED / HEAD OFFICE
Internship Report
AWT Plaza, The Mall,
P.O.Box No. 1084,
Rawalpindi, Pakistan.
Tel: (92 51) 906 3000
Fax: (92 51) 927 2455
E-mail: webmaster@askaribak.com.pk
Website: www.askaribank.com.pk
REGISTRAR & SHARE TRANSFER OFFICE

THK Associates (Private) Limited
Ground Floor, State Life Building #3,
Dr. Ziauddin Ahmad Road, Karachi-75530
P.O. Box No. 8533, Karachi.
Tel: (92 21) 568 9021, 568 6658, 568 5681
Fax: (92 21) 565 5595
ENTITY RATINGS
Long Term: AA+
Short Term: A1+
by PACRA
Internship Report
HEAD OFFICE
Shaharyar Ahmad
President & Chief Executive
M.R. Mehkari, SEVP
Group Head – Treasury & International Banking
Agha Ali Imam, SEVP
Group Head – Consumer Banking Services
Mohammad Arif Mian, SEVP
Chief Risk Officer
S.Suhail Rizvi, EVP
Group Head – Operations
Abdul Hafeez Butt, EVP
Country Head – Credit
Israr Ahmed, EVP
Country Head – Establishment
Rohan Mir, EVP
Country Head – Treasury
Tahir Aziz, EVP
Group Head – Corporate & Investment Banking
Abdul Jamil Mubashar, EVP
Country Head – Risk Management
Khalid Mohammad Khan, EVP
Country Head – Compliance & Data
Saleem Anwar, EVP
Chief Financial Officer
Rana Shahid Habib, EVP
Country Head – Inspection & Audit
Hashim Khan Hoti, EVP
Country Head – Islamic Banking Services
Vadiyya Asif Khan, EVP
Country Head – Corporate Banking
Mian Muhammad Sharif
Credit Administration
Shahid Ahmed
Chief Economist & Country Head – Strategic Planning
Farooq Abid Tung, SVP
Country Head – Agricultural Credit
Hassan Aziz Rana, SVP
Internship Report
Legal Affairs
Mohammad Ehsan Qadir, SVP
Country Head – Operations
Muhammad Ahmad Khan, SVP
Acting Country Head – International
Riaz Khan Bangash, SVP
Acting Country Head – Human Resource
Nauman Bashir Khan, SVP
Country Head – Electronic Technology
REGIONS / AREAS / OBU

Ejaz Ahmed Khan, SEVP
Regional General Manager – Central
Sajjad Ahmed Qureshi, EVP
Area Manager – Lahore-I
Khawaja Shaukat Iqbal, EVP
Area Manager – Lahore-II &
Acting Area Manager – Gujranwala
Tahir Yaqoob Bhatti, EVP
Area Manager – Faisalabad
Sajjad Ali Sheikh, SVP
Area Manager – Multan
Nazimuddin A. Chaturbhai, SEVP

Regional General Manager – South
M. Jaffer Khanani, EVP
Area Manager – Karachi-I
Saifur Rehman Khan, EVP
Area Manager Karachi-II
Nehal Ahmed, EVP
Area Manager – Karachi-III
Niaz Muhammad, SVP
Area Manager – Hayderabad
Tariq Siddique Ghauri, SVP

Area Manager – Quetta
Malik Asad Ali Noon, EVP

Regional General Manager – North
Internship Report
Haseeb Saulat EVP
Area Manager – Islamabad
Tariq Mahmud, SVP
Area Manager – Rawalpindi North
Mian Shamim Ahmed
Area Manager – Peshawar
Shahid Amir, SVP
Area Manager – Rawalpindi East
Khurram Dar, VP
Offshore Banking Unit, Bahrain
Internship Report
During 2006, Askari Bank continued with its growth momentum and posted substantial earnings
despite highly competitive business environment. Although momentary tightening helped in
reducing inflationary pressure in the economy during fiscal 2006, aggregate demand remained high
as indicated by the strong GDP growth, high growth in private sector credit, sluggish decline in core
inflation and large external account deficit.
The year on year growth in private sector credit remained strong, although down from the
phenomenal growth witnessed last year. The slowdown in private sector credit was not broad based
and was mainly due to net retirement by sugar and cotton spinning sectors. During the year, SBP
announced dept swap option under log-term finance export oriented projects (LTF-EOP) to provide
relief to the borrowers of textile sector who were adversely affected by the sharp rise in KIBOR due
to momentary tightening. The increase in consumer credit also has an expansionary effect on
corporate finance, as the demand for automobiles and consumer durables, particularly electronics
remained high.
In a highly competitive environment, Askari Bank continually reviewed its policy pertaining to the
sectoral exposures to derive optimum competitive advantage, maintain the risk profile and achieve
greater customer satisfaction.
On the operations side, during the year under review, Askari Bank’s has taken various initiatives to
improve the ways of doing business. The significant ones include re-organization of management
structure and technology initiatives. The primary objective of re-organization is to consolidate the
align internal capacities to best serve each business segment. The technology initiatives are aimed
to improve the service quality standards and strengthen control environment and to prepare the
Bank for the future challenges.
CORPORATE BANKING
This business is managed by a central corporate banking division based at head office Rawalpindi
and supported by dedicated marketing and back office units in Karachi, Lahore and Rawalpindi.
Internship Report
The division maintains a diverse portfolio and primarily offers structured financing solutions to
cater for the business needs of its clients. During 2006, corporate banking further expanded its
customer base and new relationships were established in telecommunications sector, fuel and
energy, and fertilizer sectors. In order to enhance focus on relationship management and service
quality, more dedicated and experienced staff is being assigned to this division.
The Corporate Banking will continue to play a major role in loan syndications and structured
financing transactions with the objective of providing a rage of corporate banking solutions to its
valued clients.
PRODUCTS
 Loan syndications (arrange/co-arrangers & lead manager)
 Structured finance
 Equity financing
 Working capital financing
 Corporate finance advisory services
 Debt swaps
 Balance sheet restructuring
INVESTMENT BANKING
The investment banking activity mainly covers, debt / capital markets, advisory services and trading
(both equities and bonds). This division also offers advisory and loan syndication services. Equity
Market transactions are handled by Capital Market Desk, based at Karachi, which include equity
portfolios segregated into trading, investment and futures, and continuous funding system (CFS).
Investment banking participated in various debt and capital raising instruments during the year.
PRODUCTS
 Commercial paper
Internship Report
 Debt capital markets
 Capital raising
 Trading activity (equities and derivatives)
 Discretionary Portfolio management
CONSUMER BANKING SERVICES

During 2006, the consumer banking services offered by the Bank were reorganized by combining
consumer financing business and credit card business under one umbrella and were renamed as
consumer baking services group. The reorganization is aimed to bring in business synergies and to
enable active cross sale of different product to the same market segment.
CONSUMER FINANCING
Consumer financing offers auto, mortgage, personal and business finance as to core products. This
business grew by 28% during 2006. The Bank’s debit card with the brand name of ASKCARD
registered an increase of 25% in the number of cards issued. Also, Rupee Traveler Cheques float
increased by 55% during 2006.
The Group is organized on a hub and spokes basis and its 6 hubs i.e., Rawalpindi, Pehsawar,
Lahore, Karachi (2) and Quetta which are now supported by 73 spokes i.e., Consumer Banking
Units (CBU), operating from the branches in close proximity of the relevant CBCs.
PRODUCTS
 AskCard (Debit / ATM card)
 AskPower (Prepaid card)
 Askari Bank’s mortgage finance (Home loans)
 Askari Bank’s business finance (Business loans)
 Askari Bank’s personal finance
 SamrtCash (Running finance facility for consumers)
 i-Net Banking (internet banking solutions)
Internship Report
 Askar (auto loans)
 Askari Touch ‘N’ Pay (on-line utility bill payment services)
 Askari Value Plus (flexible deposit accounts)
 Cash Management Services
 Rupee traveler cheques
 Askari investment certificates
CREDIT CARDS
Despite strong competition, the credit card business, under the MasterCard brand, maintained its
growth in all areas of the business. Net card issuance increased by 59% during the year, cards in
force (CIF) crossed 230k and its loan portfolio increased by 36%, while NPLs remained well within
the industry norms.
Askari MasterCard’s rewards program continues to offer attractive features to our values customers.
Also, strategic alliances with leading service providers in the market benefit Askari MasterCard
customers with exclusive travel and leisure facilities.
PRODUCTS
 Askari MasterCard (credit card facility)
 Balance Transfer Facility
 Smart Installment Plan
TREASURY AND INTERNATIONAL OPERATIONS
Internship Report
The monetary tightening aimed at reducing inflationary pressures and fostering economic growth
was reflected in the money market conditions throughout the year. In order to manage the money
market liquidity, SBP used the combination of Overnight Moneymarket Operations (OMOs) and
increased cash reserve requirements. During the year, discount rate was also increased by 50 bps.
As a result the overnight rates remained under pressure during most of 2006.
Pak Rupee started the year at Rs. 59.81 to a US Dollar and depreciated to Rs. 60.89 towards the end
of 006. The depreciation of Pak Rupee against US Dollar was continuous and was mainly
attributable to deterioration in external account. During 2006, weighted average yield of benchmark
6 months TBs increased by 57 bps to close at 8.81% p.a., while 6 months KIBOR increased by 161
bps from 8.80% to 10.41%.
The intense money market competition placed the Treasury in demanding position, to offer more
innovation in undertaking arbitrage and derivative transactions to maintain, and increase, its share
in the overall earnings of the Bank. The Treasury are effectively structured to measure, manage and
mitigate the risk elements associated with the Treasury activities, through the use of IT systems and
enhanced human resource skills, so that the Treasury can manage the risk better, and also provide
advice and services to the branches and their customers.
The bank increased its overall foreign trade business during 2006. The import business increased to
Rs. 119.3 billion, i.e. growth of 11% over last year, while the exports increased by 6% over last
year, to Rs. 97.3 billion.
PRODUCTS
 Foreign Currency Accounts
 Foreign Trade Services (Import & Export)
 Import & Export Financing
 Travelers cheque Issuance
 Foreign remittances (Demand Draft/Telegraphic Transfer)-Inward & Outward.
 Sale and Purchase of Foreign Currency Cash
Internship Report
 Issuance of Guarantees & Bid Bonds
 Handling of Securities
 Offshore Banking Services
Offshore Banking Unit

During the year, Askari Bank’s Offshore Banking Unit (OBU) in Bahrain increased its share of
contributions in the overall earnings of the Bank. The OBU remains on a constant look out for
opportunities on the international scene, which are both profitable and provide the Bank with a
strategic edge. OBU enhances our capability in terms of offering a wider range of services to our
customers and also acts as a look-out for new business opportunities and relationships in the
international markets.
ADVANCES AND CREDIT QUALITY

Askari Bank’s funded credit portfolio increased by 16% to close at Rs. 102.73 billion as compared
to 23% last year as the Bank remained watchful of the impact of growth of risk assets on capital
adequacy.
A review of the securities held against credit limits reveals that the credit portfolio of the Bank is
well collateralized, with adequate exposure being covered by securities of liquid nature, such as
deposits, trade documents, equity or debt instruments, guarantees from government or financial
institutions, etc. During the year, Bank’s non-performing advances increased to Rs. 3.6 billion,
from Rs. 2.3 billion last year due to further downgrade of certain large exposures. Consequently
NPLs as a percentage of gross advances increased from 2.7% to 3.6%. However, despite this
increase, the percentage is well within the industry average.
During 2006, Askari Bank made net provisions of Rs. 1.128 million. Also during the year, the
method of making general provisions, on credit portfolio other than consumer portfolio, was
standardized, as explained in audited financial statements. General provisions against consumer
finance portfolio continue to be made in accordance with the guidelines provided in SBP prudential
Regulations for Consumer Finance. The cumulative provisions at the close of 2006 increased to Rs.
3.5 billion. These provisions provide 97% coverage to the total NPLs as compared to 102% last
year.
Internship Report
PRODUCTS
 Term loans
 Overdrafts
 Short term facilities for local trading
 Cheques purchase facility (foreign & local)
 Letters of Credit (Domestic as well)
 Guarantees
 Pledge loans
 Finance Against Trust Receipts
 Stand by letters of credit
 Financing against foreign bills
 Foreign currency financing
 Export re-finance from SBP-Finance Against Packing Credit I & II
 Finance against Imported Merchandize
INFORMATION TECHNOLOGY
Our focus has been to equip ourselves with most advanced technology which provides alternate
service delivery channels and higher customer satisfaction levels.
During the year, various technology initiatives were successfully implemented. The twenty three
branches opened during the year were operational with on-line banking from day one. Askari
Customer Care Center – a dedicated customer call center, continued to provide one window service
to our valued customers in terms of their telephonic enquiries. Askari Bank’s co-founded ATM
switch, ‘One-Link’, the largest ATM switch in Pakistan, together with M-net, the second switch,
the Bank’s customers can now access their accounts through more than 1,300 on-line ATMs
throughout Pakistan. Askari Bank’s mobile ATM’s – first in the banking history of Pakistan, now
three in number, continued to serve customer needs.
Internship Report
AGRICULTURE CREDIT FINANCING

Askari Bank’s Agriculture Credit Schemes which were launched in June 2004, under the umbrella
of Agriculture Credit Division (ACD) continue to be an attractive product for meeting ON Farm
and OFF Farm financial requirements of the farmers. The credit schemes were introduced under the
title of “Askari Kissan Agri Finance Program (AKAFP)” with the objective of:
 Providing financial assistance to small farmers.

 Ensuring adequate & timely availability of credit.
 Facilitating effective water management system.
 Encourage & promoting mechanized farming.
 Providing means for better access to markets.
 Promoting livestock development.
 Providing inputs finance for effective crop management.
The Bank is extending short, medium and long-term loans to the farmers for Crops Dairy farming,
Poultry, Fisheries, Forestry and Orchids. Loans are also provided for farm mechanization,
transportation, marketing of agriculture produce, storage, land improvement and anaphase.
Our agri business philosophy is in line with SBP strategy for increasing the outreach and flow of
agriculture credit coupled with product changes, delivery alternatives, and risk management, loan
pricing and strategic presence.
During the period under review, the growth and performance of the portfolio remained
encouraging. The number of designated branches for agriculture credit increased from 12 to 46 and
customer base by 90% as compared to last year. New airy farming schemes were introduced for
establishment of model dairy farms, milk collection centers, installation of milk cooling tanks and
purchase of cattle etc.
The Bank proactively participated at various provincial and National forums for the development
and capacity building for the agriculture sector. We are working as partner with National
Reconstruction Bureau (NBR) for implantation of e-passbook system with National Reconstruction
Bureau (NRB) and providing platform for integration of the system for the befit of all stakeholders.
Internship Report
The Division remains proactively engaged in evolving policies and procedures for strengthening the
credit framework for the benefit of all stakeholders, and is determined to make its full contribution
towards ensuring that Pakistan is a food and fiber surplus country.
PRODUCTS
 Askari Kissan Ever Green Finance.
 Askari Kissan Tractor Finance.
 Askari Kissan Farm Mechanization Finance.
 Askari Kissan Aabpashi Finance.
 Askari Kissan Farm Transport Finance.
 Askari Kissan Lviestock Development Finance.
 Model Dairy Farm Scheme.
 Model Milk Cooling Tank Scheme.
ISLAMIC BANKING
During the year, Islamic Banking was launched under the brand ‘Askari Islamic Banking’, by
opening 6 dedicated Islamic Banking Branches in major cities of the country. Further expansion is
planned with improved capabilities for offering products conforming to the Shariah principles.
Askari Islamic Banking opens the doors of Halal banking solutions. Our objective is to put in place
an efficient banking system supportive to economic justice and welfare of society in line with
Shariah standards.
A comprehensive range of Islamic Banking products and services is being offered, in order to meet
customer’s demand for Shariah Compliant Banking, in the following areas:
 Islamic Corporate Banking
Internship Report
 Islamic Investment Banking
 Islamic Trade Finance
 Islamic General Banking
 Islamic Consumer Banking
Islamic Banking products have been approved by the Bank’s Shariah Advisor. As per Shariah
requirements, funds and products of Islamic Banking are managed separately from the
Conventional Banking side. All funds obtained, invested and shared in Halal modes & investments,
under supervision of the Shariah Advisor.
OUR PEOPLE
The Bank fully recognizes its committed and competent work force as the primary asset in
providing value addition to its other stakeholders. Human resource functions are accordingly
modernizes and reviewed in accordance with our strategic direction and objectives. Askari Bank
houses well equipped and highly advanced training academies in Rawalpindi, Lahore and Karachi –
the later two being the new additions. Staff training and motivation is carried out on a continuous
basis throughout the year, base don the assessed training needs, particularly in the areas of
knowledge enhancement and skills.
In-house training courses are conducted at the Bank’s training center. During 2006, 2,926 staff
attended 154 various in-house training courses spread over 563 working days.
Staffs in the middle and senior levels are frequently nominated for outside training programs
conducted by institutions both locally and abroad. Overseas training was stepped up during 2006
and as many as 9 (2005:6) staff members attended seminars and workshops overseas. Additionally,
256 (2005:139) staff attended various courses and training programs conduced by local training
institutions.
During the year, as a motivational campaign, staff members completing 10 years of service with the
Bank were awarded loyalty shields.
REGULATORY ENVIRONMENT AND MINIMUM CAPITAL REQUIREMENT
Internship Report
The year saw many initiatives on various policy and regulatory fronts impacting Bank’s business.
Amongst others, these initiatives include implementation of Basel II, Prudential Regulation for Anti
Money Launching, revised requirements for cash reserve and statutory liquids assets and limits for
significant investments.
SBP minimum paid-up capital requirement of Rs. 3 billion as at December 31,2006 has been
complied with as the Board of Directors in their meeting held on February 14, 2007 have
recommended 50% bonus issue which will take our existing paid up capital of Rs. 2 billion to over
Rs. 3 billion.
Askari Bank and its management take full cognizance of the steps being introduced by the SBP to
promote good governance practices among banks, and to establish effective anti-money laundering
processes in keeping with international requirements.
After the good performance in 2002, the operating environment for the banking sector in 2003
poses a great challenge particularly in view of the low yield on assets. In view of the fast changing
market conditions and the narrowing of traditional lucrative margins on loans. Askari Bank now
commits itself to seek out new opportunities and make its existing operations more efficient. In the
process, ABL hope to improve overall margins on the surplus liquidity available with the treasury.
 During the first quarter of 2003, the bank plans to operationalize an Offshore Banking Unit
(OBU) in Bahrain.
Internship Report
 In the near future, Askari bank also plans to launch some new consumer products,
developed and designed by its Retail Banking Group. This will include Debit cards, prepaid
cards and Electronic Billing Systems.
 The Bank plans to enhance its ATMs and Internet banking services with new features like
inter-branch funds transfer and the payment of utility bills.
 ABL plan to setup a Call Center and Data Warehouse to enhanced the timeliness and
quality of our services.
 Enhancements are also planned for banking software so that functions like Trade Finance,
SWIFT messages and credit approvals can be integrated into the core banking system.
 The bank is also in the process of obtaining a new IT system for its Treasury.
 Realizing that “Assets make things possible, people make things happen”. Askari plans
to re-emphasize its focus on its human resource. The bank will try to build the organization
from within, giving special emphasis on the quality of its human resource.
 ABL emphasis on technology is evident from the products that bank is developing. Bank
understands and is committed to enhancing the technology not just to keep abreast with the
modern developments but also to retain bank position as leaders in the field. Bank’s
motivation is driven by one single factor_ “providing customer satisfaction”.
DEFINITION OF BANKERS
Internship Report
As defined in section 3(b) of negotiable instrument act-1881, bankers means the person transacting
the business of accepting deposits from the public for the purpose of lending on investment of
money, repaying on demand or otherwise, and withdrawal by cheque, draft.
DEFINITION OF THE CUSTOMER
A customer is the person who maintains regular bank accounts without taking into consideration the
duration and frequency of operation of his accounts. It means that the person becomes a customer of
the bank as soon as he opens his account, deposit money in the same account and the bank accepts
the said deposit.
QUALIFICATION OF CUSTOMER
When a customer opens an account under the law he enters into a contractual relationship with the
bank. At the time of opening the account, intended customer must have the following
characteristics:
A) HE MUST HAVE REACHED THE AGE OF MATURITY.
In terms of section 3 of the Indian maturity act 1875 (as adopted in Pakistan) a person is a mature if
he attains the age of 18-Years. However, the age of maturity will be 21-years in case of European
Nationals and also where guardian is appointed under the guardians and wards act.
A person who is under the age as specified above is considered a minor in terms of section 112 of
the contract act, a minor is declared incompetent to enter into a contract. As such, any contract with
a minor is avoided. However, the banks generally allow the minor to open accounts with a view to
the condition of saving habits. Such account is opened jointly with their guardian and is allowed to
be operated by the guardian. The guardian for the purpose will sign the account opening form and
the specimen signature card.
Internship Report
B) HE MUST BE SANE MINDED.
A person is said to be of sane or sound mind if he understands the terms and the conditions of the
contract and is capable enough to form rational judgement as the effects of the contract upon his
interest.
C) HE MUST NOT BE UNSOLVED AND BANKRUPT.
At the time of opening the account, he should not be adjudicated as insolvent. Generally a person is
considered as insolvent if his liability exceeds the assets he is possessing.
D) HE MUST NOT BE DEBARRED UNDER ANY LAW FROM ENTERING INTO ANY
CONTRACT.
It is the duty of the banker to make sure that all above criteria is satisfied before he allows the
opening of the account. It is the duty of banker to keep in mind following point while opening the
account.
Key points while opening of accounts:
1. WHO DEALS WITH OPENING OF ACCOUNT
As far as possible the account-opening job should be handled by the branches Manager himself.
Only in exceptional cases in main Branches, the job may be assigned to others Officers. In ABL
Bhawalpur branch an OG III deals to this department.
2. INFORMATION
As much relevant information as possible must be elicited from the prospective customer relating to
his means, line and place of business etc.
3. FORMS TO BE FILLED IN CAREFULLY
Internship Report
Each and every column of the account opening form should be neatly and correctly filled in with
necessary details.
4. INTRODUCTION OF ACCOUNT
Account must be properly introduced. In this concern, the following precautions are to be observed.
a) As far as possible, the person introducing the account should attend the personally
with the prospective customer. This would serve the dual purpose:
 The Branch Manager shall have the opportunity of eliciting vital information as to the
standing, respectability and the means of the person he is introducing.
 The identity of the customer must be properly established beyond land doubt.
b) Introducing from person having doubtful dealing with the bank should be discretely
declined.
c) The Staff Member generally should not introduce the account. They will introduce
accounts only for those persons who are personally known to them and whose
credentials are absolutely clean.
5. As for possible, the account opening form should be completed by the prospective customer in
presence of the introducer who is then aware of the particulars furnished and can corroborate the
same.
6. Specific information concerning the profession should be recorded in the account opening form.
The description private service or Businessman is insufficient.
7. No chequebook should be issued to the new account are properly introduced.
Internship Report
8. Account may be opened with cash or cheque Initial deposits; it is incumbent upon the Branch
Manager to satisfy to satisfy themselves additionally that title of account holders is genuine for the
cheque deposited. Prudent bankers avoid opening new accounts with cheque.
9. Letter of thanks should be sent to introduce the day the account is opened. This precaution
would accomplish the purpose of intimating the introducer that the account has been opened on
strength of his introduction thereby inviting disclaimer if untrue.
10. A letter of thanks should be sent to the new account holder, preferably through registered mail
to verify his address.
11. In the evening the officer of the branch should visit the customer’s area to establish that the
address given by the customer is correct and the commands respect and honour in the
neighbourhood/vicinity he is living.
12. Number of the customer National identity card should be correctly recorded in the account
opening form and copy of it should be kept on record.
13. No account should be opened in the name of an undercharged insolvent.
Internship Report
At the time of opening of accounts, officers should tactfully obtain as much information as possible
about background and character of the person, his correct name, address and occupation. This infect
will be the only opportunity when they will be able to talk to the prospective customers in a friendly
and frank atmosphere. This is the time when they have a slight edge over the customer. He or she at
this point of time is willing to give as much information about his personal status and business etc
to the bank manager. It is therefore necessary that due care and proper procedure should be
followed for opening different types of accounts for various types of customers.
CLASSIFICATIONS OF ACCOUNTS
Askari Commercial bank Ltd has the following classifications of accounts.
 INDIVIDUAL ACCOUNT
 PARTNERSHIP FIRM ACCOUNT
 JOINT STOCK COMPANY ACCOUNTS
 PROPRIETORSHIP
 CLUBS, SOCIETIES AND ASSOCIATIONS ACCOUNT
TYPE OF ACCOUNTS
Let us now turn to procedure to be followed in case of each type of accounts.
INDIVIDUAL ACCOUNTS
Such account may be classified as follows; -
1. Accounts of literate ladies and gentleman.
2. Accounts of illiterate ladies and gentlemen.
3. Joints account.
Internship Report
4. Minor Accounts.
 In order to open the account for literate people an account opening form, signature card,
form “A”, and an ID copy are required with Rs. 2500 for opening account and he must fulfil
all customer characteristics.
 In case of illiterate ladies and gents, the following precautions are observed in addition to
those provided in the above guideline.
a) Two photographs are to be obtained one to be pasted on account opening form and
the other specimen signature card.
b) Instead of signature left hand thumbs impression to be obtained on the specimen
signature card from gents and right hand thumb impression from the ladies.
c) Each time such customers should attend the bank personally and will put their thumb
impressions on the cheque before the passing officer.
d) Such customers should be advised not to issue cheque payable to third parties.
e) Cheque should be marked payment in person to ensure even if the cheque is
presented through clearing that particular cheque can only be paid in person.
 When account is opened by more than one person but the relationship between them is
neither of trustees nor partners it would be termed as joint account. Whenever such accounts
are open-end, definite instruction regarding operations on the account and payments of
balance in cased of death of any one of them should be obtained.
 A person who is under the age as specified above is considered as minor, a minor is declared
incompetent to enter into a contract. However, the banks generally allow the minor to open
accounts with a view to the condition of saving habits. Such account is opened jointly with
their guardian and is allowed to operate by the guardian.
Internship Report
ACCOUNTS OF PARTNERSHIP FIRMS
While opening accounts of the partnership firms, the partnership deed from registered firms is
required obtained in the addition to account opening form and specimen signature card. The
partnership letter is attached with the accounts opening form, which must also be signed by all the
partners of the firms whether registered or unregistered.
In these accounts, the following points should be remembered.
1. All the partners must sign the account opening form.
2. The names of persons authorised to operate the account must be neatly and correctly given in
the account opening form.
3. For partnership concerns carrying on the business under impersonal name it is generally
described that the title of accounts should show name of the partners or managing partner.
4. A cheque payable to the firm should not be accepted for credit to personal accounts of the
partners without the written authority of all the partners.
5. The maximum numbers of partners in general business 20 and the minimum is 2 for the banking
firms the maximum numbers of the partners is 10 in Pakistan however bank can not be opened by
the partnership concern.
6. Since these are the business concern they will be allowed to open current accounts. No saving s
bank accounts are opened in partnership name.
Partnership account opening required following documents:
a) Account opening form (A.O.P)
b) A.O.P should be duly introduced
c) Copy of N.I.C Of all partners
d) Registration certificate (optional)
e) Partnership deed
Internship Report
f) Rubber-stamp on letterhead of the firm
g) Letter Head
h) Official capacity (It means that all the partners will sign and choose the singe for
operation of account with the bank. And in account opening form the name of the
official capacity is written in special instruction and recommended by all the
partners).
JOINT STOCK COMPANIES ACCOUNTS OR ACCOUNTS OF LIMITED
COMPANIES
Joint stock companies include
 Private limited companies
 Public limited companies.
PRIVATE LIMITED COMPANIES.
Private limited companies are those where the share capital is not offered to the general public
instead the offer is restricted to particular class of society or with in the family members. Generally
their shares are not transferable. The minimum number of shareholder is 2 and maximum, is
50private limited companies are not listed on stock exchanges and therefore their shares are not
publicly quoted.
PUBLIC LIMITED COMPANIES:
In this case, the promoters and general public contribute share capital. Any Pakistani who is
authorised to enter into contract can purchase share. Shares of these companies are transferable and
brought and sold freely in stock exchanges. The minimum number of shareholder is 10 whereas
there is no upper limit.The following documents are required for joint stock companies account
opening.
Internship Report
a) Copy of resolution
While opening the company’s account, the manager must ensure that board of directors of the
company is properly constituted and request for opening the account comes through resolution of
the board of directors. The resolution for account opening should bear company seal and signed by
the chairman of the meeting where such resolution is passed and counter-signed by the company’s
secretary or authorised director must be submitted to the bank before an account can be opened.
b) A.O.F. duly signed.
c) Memorandum of Association & Articles of Association.
d) Certificate of Incorporation.
e) Certificate of Commencement of Business (only required for public limited companies.
f) National identity cards of directors.
g) List of director with their shareholding.
h) Specimen signature card duly signed
ACOUNT OF PROPRIETOR:
 A.O.F should be duly introduced
 Copy of N.I.C of proprietor
 Specimen signature card duly signed
 Proprietorship declaration concerns on firm’s letterheads
Internship Report
ACCOUNTS OF CLUBS, SOCIETIES AND ASSOCIATION
Clubs, societies and associations are non-profit and non-trading in nature. They have their own rules
and regulations and committees mention their affairs, which is called Governing Bodies.
Documents that are required are:
 Account opening form
 Specimen signature card
 Resolution to be passed by their governing bodies
 Certified copy of rules and regulations or Bye-law
 Letter of registration
 Letter of undertaking to the effect that as and when changes take place they will inform the
bank of such changes.
Internship Report
Deposit is the lifeblood of a commercial bank. Main function of a commercial bank is to enhance
the savings from the savers to the ultimate user of funds. The process of collecting savings is called
Deposit Mobilization.
FORMS OF DEPOSITS:
Two broad forms of deposits with reference to time period are:
 DEMAND DEPOSIT:
These are payable on demand. They include current account, sundry deposit (e.g. margin account)
and deposit receipt. No profit is given on demand deposits.
 CURRENT ACCOUNT:
This type of account is usually opened for businessman or such persons who needs deposits and
withdrawals facility without any restriction. Introduction is necessary when opening a current
account, the procedure has already been explained else were in this book and account number is
allotted and for withdrawals cheque book is issued and a statement of account is provided so that
customer can reconcile his account with his own record.
No interest return is paid on such account in Pakistan. This account can be opened with Rs. 500.
Banks usually recover service/incidental charges on current account if the required minimum
balance is not maintained. Or when the maintenance of the account becomes expenses e.g. For
example too many transactions take place on summing a large number of chequebooks and other
stationary not consistent with the average balance.
Internship Report
 CALL DEPOSIT RECEIPT:
It is a contract for a specific deposit transaction and is used as a security for bidding etc. It is non-
transferable and is payable only to beneficiary or purchaser.
 SUNDRY DEPOSIT -MARGIN ACCOUNT,
At the time of issuance of LG / LC or acceptance the party is supposed to deposit is kept in an
account called sundry deposit. Margin account, similarly, at the time of allotment of locker the
locker holder is supposed to deposit a certain sum as security, which is kept in sundry deposit
account.
FEATURES OF MARGIN/SUNDRY DEPOSIT ACCOUNT
 Reduces risk/exposure
 Free of cost deposit enhances profitability
 Respective accounts are opened
 Non checking account- rather customer has no approach to this account. As far as
operations are concerned
 It relates to the liability L/C, L/C acceptance and is adjusted when liability is
redeemed/released
Internship Report
B. TIME DEPOSIT: Payable on demand with certain maturity. Attracts profit with respect to
time.
 PLS Saving accounts
 Askari FISDA account
 Askari Special Deposit Account (ASDA)
 Special notice time deposits are of two types: i.e. 7 & 30 days notice.
 All TDRS (term deposit receipt) of different maturates, maximum one year.
SAVING ACCOUNT (INTEREST BASED SYSTEM)
As the name denotes savings accounts are basically meant for mobilizing
saving of people. In the interest based system a saving account could be
opened with only Rs. 2500 for new persons but regular customer’s saving
account can be opened with Rs. 500 for single individual or for two or
more individuals jointly, charitable institution, provident or other funds of
benevolent nature for local bodies, autonomous corporation, companies,
associations, educational institutions etc.
Deposit Minimum Rate of Payment of Product Base.

Accounts Balance (Rs) Return p.a. % Return
FISDA
(financial institutional 50,000 & 0.25% Monthly Daily

special deposit
above
account)
ASDA (Askari
special deposit 50,000to 999,999 1.00% Monthly
Internship Report
account) 1000000& above 2.00% Monthly Daily
Deposit Minimum Rate of Payment of Product Base.

Accounts Balance (Rs) Return p.a. % Return
Value Plus Minimum Minimum
monthly balance
(saving account) Rs 10,000 2.00% Monthly
Notice deposits
07 days 5,000 0.50% Maturity Daily
30 days 5,000 1.00%
TDR
One month 5,000 1.00%
Two months 5,000 1.25% Maturity Daily
Three months 5,000 1.5%
Six months 5,000 2.00%
One year 5,000 2.50% Six monthly Daily
Internship Report
It is the prerogative of either party to the contact i.e. the banker or the customer whether to
keep the account with a particular bank or close the same without assigning the any reasons. A
customer generally uses this discretion.
 When the particular branch becomes out of the way or too far from his place of business.
 The purpose for which the account was opened has been served.
 The bank branch is unable to give him certain credit facility that he requires.
In such a case the customer should surrender the unused chequebooks to the bank and withdraw
the balance lying to his credit after informing the bank formally.
Bank may also closed the account of the customer after notifying the banks intention and giving
him a reasonable time to make arrangement to have his cheques in circulation presented for
payment before the notice period expires. Closing of customers account warrants a proper Notice
determining the contractual relationship. Following are the reasons by which bank can close the
account of customer.
a) By frequently drawing cheques much in excess of the balance in his account which are return
unpaid.
b) By introducing accounts of parties, this becomes undesirable in cause of time.
c) By frequently contravening the Rules for operation on the account.
d) By making himself aggravate during his visit to the banks branches and picking quarrel with
the staff unnecessarily.
Internship Report
ABL also offers the facility of lockers of three types to it customer to offer security.
Types Size Annual rent (Rs) or Refundable deposit (Rs)
Small 6 inches x 2feet 1,000 15,000
Medium 12 inches x 2feet 1,500 20,000
Large 2 feet x 2feet 2,500 35,000
Key deposit is Rs 1,000 per locker.
In the case if customer loses the key of locker then breakage fee will be charged about Rs. 2,000 per
locker plus actual charge of supplier of locker.
DOCUMENTS REQUIRED FOR LOCKER OPENING:
 Locker opening form
 Copy of NIC
Applicant should be account holder in the bank.
Internship Report
Remittance department plays an important an important role in transfer of funds; it includes DD,
TT, MT, TC and pay order. It is an instrument payable on demand for which value has been
received issued by the branch of the bank drawn i.e. the payable at some other place (Branch) of the
same bank.
TRAVELLERS CHEQUES (TC):
TC (traveller’s cheques) is for all branches with no charges. We give the money in
cash/cheque/direct debit instructions to the banker and he gives in return the slips of Rs.10,000, Rs.
25,000, Rs.50,000, Rs.100,000, Rs.500,000 which is required. Now government has made some
restriction against TC because people have stared it to use in place of money. There are no charges
of any type such as postage, taxes, and commission charges.
TELEGRAPHIC/MAIL TRANSFER (TT/MT):
This is an instrument that is use to transfer the money from one branch to other
branch of same bank through bank. The person known as payee, for whom TT is
made, TT is only paid to him after seeing his ID card. TT has been made on
following modes of payments.
 On cash.
 On cheques.
 Through debiting account no.
Internship Report
After issuing TT it is get registered in issuing register. Which required TT/MT no. payee name and
address, amount, account no.(if through account payment has been made), cheque no.. Along
TT/MT an advice also be send to other branch from where money will be drawn, that advice is
called telex message. On the basis of which the other branch will pay the money after tallying serial
no. and test no. of TT. TT is made if the client has account in the bank if he has no account then he
has to fill the TTR (telegraphic transfer receipt) which is a voucher for the official record in bank.
Its form is of blue colour. In DD the person has to take care of DD which is issued to him.
DEMAND DRAFT (DD):
The demand draft (DD) is issued to the person who wants to draw money from another branch in
any other city, and then by showing that draft he can easily draw money if he has account there.
Demand Draft is issued by one branch of bank payable to other branch of the other bank e.g. DD is
issued by ABL payable by MCB.
The person who pays the value and on whose behalf draft is issued is called purchaser.
The Branch/Office which issues a draft on another branch or office is called the drawing/issuing
branch.
The Branch /Office on which draft is drawn are called the drawee branch. The person entitled to
receive the payment is called the payee.
DD also has been made on three modes of payments.
1. On cash.
2. On cheques.
3. Through debiting account no.
Internship Report
ISSUANCE OF DD:
 Request shall be on the standard DD application form.
 Fill in all information such as name of beneficiary place where the DD is drawn, amount,
mode of payment cash/cheque /debit authority signature with name and addresses.
 Check the application form.
 Charge commission as per schedule of charges.
 Get voucher from cash department. After the customer has made payment by cash /cheque.
 Prepare the demand draft (Security Stationery)
 The issuance of DD is computerised and the amount is automatically protected graphed
during printing for avoidance of forgery.
 Entry is then made in DD issued register, in the DD issued register separate folio is allotted
for each draw branch and a serial control number is applied.
After issuance of DD, an advice is send to the branch from where client wants the money to be
drawn, which confirms the DD. In this aspect contra is another concept, which is followed in the
branch where money is transferred. Payment of DD takes place in two ways:
1. If advice reaches the other branch before the draft then that branch debits the H.O of bank and
credit client.
2. If draft reach first then bank open the temporary account called suspense account or red account
through which amount is debited for the satisfaction of client and credited the H.O of bank when
that branch receives the advice than it debit the H.O of bank and credited the suspense account.
There are postage and commission charges.
CANCELLATION OF DD:
Internship Report
 Obtain application in writing along with original DD.
 Verify the signature of applicant. This signature should tally with signature on DD
application form.
 Mark cancellation in DD issued register.
 Payment from suspense account DD cancelled after recovery of cancellation cheques as per
current schedule of charges.
 Inform the drawee branch regarding cancellation and ask for IBCA.
 On receipt of IBCA adjust amount paid out of suspense account.
Lost/Stop Payment/Issuance of Duplicate DD
 Get application from purchaser and verify the signatures.
 Inform the drawee branch of the loss of DD and advise them to mark caution against
payment if presented.
 After necessary checking, the drawee branch will inform us about the status of DD- whether
it has been paid or is still outstanding.
 Write on the face of duplicate DD in red ink “Duplicate in lieu of original DD. no.____
dated ____ reported lost”.
 The duplicate DD will have the same control number.
 The printed number and serial control number of DD issued shall be mentioned on the
application form.
 Signatures of two attorney holders with their attorney number should obtain on the DD. The
2nd signing officer must check all the particulars before signing.
The postage rate is fixed Rs.25and commission rates are as following:
SLAB OF DD/TT COMMISSION RATE
Internship Report
Amount %age rates Rs. Amount
1. Up to Rs.10,000 0.15% Minimum Rs.25
2. Rs.10001 to Rs.100000 0.10% Minimum Rs.50
3. Rs.100001 to Rs.1000000 0.07% Minimum Rs.200
4. Rs.1000001 to Rs.999999999 .05% Minimum Rs.1000
Internship Report
Pay order is also called “banker’s cheque” drawn upon the issuing branch/Office itself. It required
account no. and other information about client which mean cross payment is its restriction.
 Get the application form. Issues pay order after recovering charges.
 Do necessary vouchering. Make entry in PO issue register.
 All pay orders shall be crossed “payee’s account only”.
 It may be noted that IBCA is not involved because PO are payable in same branch.
CANCELLATION OF PAY ORDER
Application for cancellation. Surrender of original pay order. Recover cancellation charges.
LOST AND DUPLICATE PAY ORDER
Check the record to ensure that payment has not been effected. Get application for issuing of
duplicate PO. Recover charges. Issue a duplicate pay order.
PAY SLIP
The banks for settlement of its own payment issue pay slips. There is no excise duty and no
commission.
Internship Report
ABL also performs the function of collection of bills. There are two types of bills of collection:
 Clean collection
 Documentary collection
Clean collection
i. Out ward bills for collection (OBC)
ii. Inward bills for collection (IBC)
Out ward bills for collection (OBC):
If bank transfers funds to another city when it is called OBC "OUT WARD BILL OF
COLLECTGION". OBC has three conditions:
a) Cheques of a city with ABL branch:
In case, ABL BWP receives cheques of some other bank of some other city where ABL branch is
present. We suppose other bank is NBP in city Multan. ABL BWP will send that cheque with
schedule to its branch in Multan. Three types of stamps are put on cheque:
 Crossing stamp (on the face of cheque)
 OBC no. stamp ( spare place on cheque)
 Credit realisation stamp (on the back of cheque)
Multan branch of ABL sends this cheque to NBP for clearing through clearing house. When the
cheque is cleared than Multan branch sends the IBCA (inter-branch credit advice) to BWP branch
for cashing the cheque. In the case if cheque doesn’t get clear than they send cheque along with
objection memo.
Internship Report
b). Cheques of city without ABL branch:
In this case ABL BWP will send OBC to the bank directly that bank will send the draft to ABL
BWP than ABL BWP will launch that draft to its clearing and finally amount will be covered.
c). Cheques ABL presented ABL of other city:
This case is simple one. BWP will send OBC to the bank that bank will send IBCA to
corresponding branch of ABL and that branch will transfer amount to ABL BWP.
Inward bills for collection (IBC):
If ABL BWP branch receives the cheque of, suppose NBP bank of BWP branch from any other
Multan through ABL Multan branch than it will be IBC for ABL BWP branch. Before ABL BWP
branch launch that cheque for clearing, a Sundry account is opened which is temporary account,
which is credited with the amount on cheque, and H.O account is debited. Then cheque goes for
clearing, after clearing that sundry account is debited and H.O account is credited. Then ABL BWP
will send an IBCA to ABL Multan branch. When IBCA reach the Multan than H.O account will be
debited and customer account is credited. If cheque is not cleared than ABL BWP will send back
the cheque along with objection memo.
SLAB OF OBC COMMISSION RATE
Amount %age rates Rs. Amount
1. Up to Rs.10,0000 0.15% Minimum Rs.50
2. Rs.100001 to Rs.1,00,0000 0.10% Minimum Rs.200
3. Above Rs.1000000 0.05% Minimum Rs.1000
Postage charges are fixed for all amounts that are Rs. 50.
Internship Report
DOCUMENTARY COLLECTION
These are the transport documents e.g. railway receipt or ship receipt, bills, and detail of the
contract, which are submitted in one branch of ABL by seller and payment against the shipment
received by any other branch from buyer of ABL
EXAMPLE
A person in Karachi wants to purchase the goods from a person having business in Bahawalpur.
Now if both the parties do not know each other and seller is not willing to transfer goods to buyer
with out payment and the buyer is not willing to pay advance payment to seller before getting the
goods. In this case the person in Bahawalpur will send the goods to person in Karachi through train
and will hand over the fare. Detail of goods bills and commission has been given to ABL
Bahawalpur and request to collect his payment now ABL ---Bahawalpur will send these documents
to ABL ----Karachi. When the goods will reach in Karachi the purchase will go to bank and will
make payment and will get the documents to release the goods from Railway. Now ABL Karachi
will disburse this amount to ABL ---Bahawalpur through draft etc. these documentary bills are of
two types.
 OUTWARD DOCUMENTARY BILLS FOR COLLECTION (ODBC)
When the bank sends the transport document to other bank for collection these bills are called
ODBC. In the above example for ABL ---Bahawalpur
 INWARD DOCUMENTARY BILLS FORE COLLECTION (IDBC)
When the bank receives the document from other bank. As in above example ABL----Karachi the
document will be IDB.
Internship Report
IMPORTANCE OF CASH DEPARTMENT.
Cash department owes its importance to the fact that it is a major point of contact between the bank
and the customer, the bank most valued relationship. The Department is the showcases of the bank
and conveys the first impressions about the bank commitment to professionalism in the systems and
procedure and to courteous and efficient customer service. Therefore it is imperative that the cash
Department staff, particularly the staff chosen to represent the bank at the front office, is properly
trained and experienced not only in the technical aspects of handling cash but also in the art of
customer service.
FUNCTIONS OF CASH DEPARTMENT.
Various functions of cash Department include.
 Receiving cash from the customers.
 Making payments to the customers against their cheques or other payment instruments.
 Handling cash with drawls from and deposits into the banks account with, the state bank of
Pakistan and other ABL branches of bank.
 Ensuring proper storage safety and security of the cash in safes and cash in transit.
 Ensuring proper cash management by anticipating requirements, holding optimum amount
of cash on hand and disposing of any excess over the estimated/expected/planned profitable
manner.
Internship Report
CASH DEPARTMENT OF ABL
CHECK POSTING, TRANSFER AND CLEARING.
In this department the officer receives the cheques for withdrawal of cash, firstly check its date,
amount in figures, signature & check that either it is of ABL BWP branch or of any other branch. If
it is of ABL and of same branch with write date. Then the officer feed the account number into
computer. Computer displays overall position of the account holder and verifies the signatures from
SS card, which is already scanned in computer. Then the amount is checked in the account. If the
amount is available in the account then the officer pass the cheque and he debit the account with the
same amount and cash is credited. After this procedure he clears the cheque and post the stamp on it
of transfer and the cashier makes the payment to customer. But if the cheque has any of the
following characteristics the cheque is returned to the customer:
 If the date is of 6 month back (Dormant account).
 If some future date is written on it.
 If the signatures not match with the SS card.
 If the amount written on cheque is not available in account.
 If amount is figures and words are different.
 If there is any cutting is on cheque.
If the client wants to deposit any amount in his own or any other account than, firstly he has to fill
pay in slips and then he has to make the payment to cashier which after receiving the cash sign the
slip. Than transfer it to officer who transfers it in the account of that account holder with same
amount and the transfer stamp is posted on it and signed counterfoil is returned to client.
The bank performs the following operations.
Internship Report
 Transfers
 Inward Clearing.
TRANSFERS:
This function includes the transfer of cheques drawn on the same branch. On account holder wants
to transfer his amount to another, he will give him cheques. The cheques receiving person will
attach paying in slip with cheques and fills. Then he deposits to the counter. The bank transfers
amount mentioned on cheques from one account to another and credits the payees account.
INWARD CLEARING
In clearing House the cheques received from other banks are collected and sent to branches for their
payment.
Internship Report
Clearing is a system by which bank exchange cheques and other negotiable instruments drawn one
each other within specified area and securing the payment for their clients through the
clearinghouse. A clearing house is an organization where these cheques are brought and the mutual
claims of each bank on the other are offset and settlement is made by the payment of difference.
The responsibility of operation for the clearinghouse function lies with the State Bank of Pakistan
or National Bank of Pakistan (in case if there is no SBP). The clearinghouse members are
authorized to send their cheques and instruments in the clearinghouse established in the SBP/NBP.
Clearing house is the gathering of all members of different banks and institutions where they
delivers or receive the instruments drawn on them for their clearance through their branches in the
city.
The function of clearing can be understood with the help of a simple example.
Every bank has its account with State Bank of Pakistan, or National Bank of Pakistan.
Suppose one of the account holder of ABL bring a cheques of Habib Bank of (Rs.10, 000/-). Now
in State Bank of Pakistan/National Bank of Pakistan, the representatives of both banks will appear
for clearing physical payment of cash is not made, but our bank's (ABL) account would be
increased by Rs.10, 000/- the reverse would be true for Habit Bank limited. The clearing may be for
or against if our bank's A/C in SBP/NBP, Contains a net debit balance then it would be favourable
and if credits balance then it would be against. Daily clearing schedule is formed on a specific form
on which the bank name and cheques drawn on them or drawn by them are written and at the end
the balance whether favourable or against is written.
Internship Report
TYPES OF CLEARING
1) CLEAN CLEARING
2) DOCUMENTARY CLEARING
1) CLEAN CLEARING:
By clean clearing means that with the clearing instrument no documents (e.g. transport
documents) are attached. Normal day to day clearing among the banks is clean clearing
2) DOCUMENTARY CLEARING
These are the transport documents e.g. railway receipt or ship receipt, bills, and detail of the
contract, which are submitted in one branch of ABL by seller and payment against the shipment
received by any other branch from buyer of ABL. In this type of clearing, documents of shipments
are cleared and confirm their legality.
COLLECTION OF CHEQUES
These cheques may be drawn on UBL, HBL or MBP or other banks of Pakistan. The clerk collects
all the cheques of different banks and prepares schedules for them. Representatives of all banks will
receive the cheques related to their branch either issued by its branch or other banks.
Internship Report
ADVANTAGES OF CLEARING
 Systematic arrangement for collection and clearance of cheques.
 Speedy and economic collection and clearance of cheques.
 Clearance of cheques and other instruments of different branches of different banks in a
systematic manner without any flaw and mistake.
 The collection and clearance of Govt. Bills, instruments, and cheques.
 The collection of Govt., Revenue through cheques, pay orders and drafts payable through
the SBP/NBP.
 It avoids the difficulties and cumbrances to be faced by the branches if they collect the
instruments directly from branch to branch.
 Confidence among the clearing members is produced.
CLEARING OUTWARD
When the customer deposits cheques and other instruments of other banks for collection, we send
the cheques in outward clearing.
PROCEDURE
 Cheques are received duly entered on pay in slip.
 Counter folio is returned to customer after signatures.
 Crossing stamp is fixed on the cheque.
 Clearing stamp is fixed on the cheque and pay in slip.
 Clearing stamp with next date is fixed on the cheque and pay in slip.
 Endorsement stamp is fixed on the back of the instruments.
Internship Report
INWARD CLEARING
In clearing House the cheques received from other banks are collected and sent to branches for their
payment.
PROCEDURE
 Crossing stamps, clearing stamps and endorsement are checked.
 Crossing stamp other than collection bank is cancelled.
 Cheques and instruments are posted to the debit of respective accounts.
 Any instruments returned in the second session of the clearing house i.e. 2nd clearing.
 Cheques and instruments if unpaid are returned along with return Memo.
 IBCA (inter-branch credit advice) as for Net amount is sent to the Main Branch.
CLEARING HOUSE
In the clearinghouse the representatives of all the banks gather and exchange their instruments.
They enter the total amount of cheques delivered and received in their summary sheets. The total of
schedule received tally with the total of summary.
Clearing cheques received from other banks are sent to branches, which will clear the cheques and
instruments to respective amount. Some cheques are returned unpaid with the reasons mentioned in
the cheque return Memo IBCA for net amount is sent to main Branch.
In the 2nd house clearing cheques are return and exchanged by the representative of the banks. A
summary is prepared for cheques received and delivered and net position is ascertained. Amounts
are settled through SBP/NBP accounts.
After cheques are returned the Main Branch sends IBC as for net amount to the Branches.
Computer entries are made for (-) credits for returns and debits to Main Office A/C.
Internship Report
ENTRIES FOR OUTWARD CLEARING
SUSPENSE ACCOUNT CLEARING DEBIT
CUSTOMERS ACCOUNT CREDIT
ENTRIES FOR INWARD CLEARFING
CUSTOMERS ACCOUNT DEBIT
SUSPENSES A/C CLEARING CREDIT
Internship Report
There has always been a great demand of customer service in the banking industry. According to a
saying, “One who serves better earns better.” When any bank deliver services in the way which
gain the confidence of customer and other banks are not providing those services, than that bank
stands at distinction.
LIST OF SERVICES:
 Automated Teller Machine (ATM).
 Debit Card facility (for ATM & online electronic payments on specified stores where POS.
is present )
 Credit card facility
 Askari Privilege card (discount facility through value plus account)
 Point of sale terminals (POS.)
 Prepaid card for PTCL customers
 E-Bill payment service for PTCL customers
 Internet account service (password is allotted)
 Askari Avari Advantage (discount on Askari specified Avari hotels)
 Philips & Askari launch consumer financing schemes
Internship Report
Credit department is most important department of bank to earn her income by lending money to
other at different rates as compare to that deposit interest rate. Normally, bank takes money from
depositors at rate X and utilize those funds by advancing them at X+1 rate, so X- (X+1) =1 this 1 is
the income of the bank. If we say that bank is body then credit is blood of that body. It generates
revenue for the bank so credit decisions are to be carefully analyzed.
Different departments are working in SBP to monitor credit.
* BCD.................. Banking control Department
* BSD.................... Banking supervision Department
* BPRD............... Banking policy and regulation department,
Commonly operations regulate credit size, sector and bank. Credit line is given to banks finance the
purchase of crops after every six months.
NATIONAL CREDIT PLAN:
Every year economic survey is made and with the help of this survey government patronizes certain
sectors and also advises banks to give more loans in these sectors. According to this year the
agriculture sector is the target for financing.
Internship Report
CREDIT REGULATION 1992:
In 1992, certain regulations are made by SBP for credit advancement:
 Bank cannot lend more than 10% of its reserves.
 No bank can lend to its directors.
 No bank can finance its own shareholders.
 If bank finance to other bank’s shareholder than it has to take permission from SBP.
 Bank has to handle its suspense liabilities within 30 days.
 Advances ratio should not exceed 65%.
 Bank should check the current ratio of the customer.
PROCEDURE FOR TAKING LOANS:
For taking loan credit line proposal (CLP) is made. In a CLP there are different types of documents:
 Application form
 Credit information
Application form
The customer requests the application form from the bank for the loan. Some documents are also
attached with the application, which are of two types:
 Permanent Information Memo
 Charge Document
Internship Report
Permanent Information Memo:
These are the documents in which there are permanent information of customer and his business.
Charge Document:
Charge document is made for the security purpose. These documents are sign by borrower. Purpose
for sign is that if the borrower does not pay the loan in a certain specific period of maturity then
these documents can be shown in a court against him.
Credit Information
For the satisfaction purpose bank also take credit information about the party. Credit information is
taken from the Credit Information Bureau (CIB). This type of information is taken when loan of
huge amount is taken, above 5 million. Clearance report is checked.
All these documents are arranged in a file. This file is called credit line proposal. Every loan is
sanctioned after the preparation of CLP.
DISCRETIONARY POWERS OF ADVANCES:
Up to certain limit each level can give orders of advancing loan but for the bigger amount branches
have to take permission from upper level of authorities.
Credit sanction advice move through these levels.
Internship Report
TYPES OF SECURITIES
Normally loans are of two kinds.
 Clean loans.
 Documentary or secured loans.
In clean loan no tangible securities are taken from the customer. But in secured loans tangible
securÿÿies are
Different kinds of secure securities are
 Deposit with bank.
 Deposit with other banks.
 Government securities.
Internship Report
 Account receivable /notes receivable.
 Inventory.
 Moveable /immovable property
Fixed assets are hypothecating, Pledging or mortgaging. In these three cases tittles charge and
control varies among bank and the borrower
Type Title Charge Control
Hypothecation Borrowers Bank Borrowers
Pledge Borrowers Bank Bank
Mortgage Joint Bank Bank
GOOD LENDING PRINCIPLES
There are five good lending principles, which are kept in mind while considering a credit decision.
1. SAFETY
Lending must be safe enough and given to one who already has the ability in the form of cash
flows to show and for this purpose some liquidity security should be pledge.
2. SUITABILITY
Lending must fit into the plan and loans are given to a business a growing industry.
3. LIQUIDITY.
Business cycle should be complete in one year. The credit will be refunded in liquid form and for
debt security bank consider most liquid security.
4. DISPERSAL
Loans should be given in diverse sector and should not be concentrated just to one sector to
maintenance balance growth of economy.
Internship Report
5. REMUNERATION
Lending must be remunerative and ultimate goal is to maximize the profit.
RISK ANALYSIS.
We know higher the risk higher the return but risk must be carefully evaluated.
There are five Cs, which should be considered.
1. CHARACTER
Normal and social character of an individual or organization should be good. He should not be
involved in any illegal and unethical business like smuggling or black- marketing.
2. CAPACITY
Borrower must have the capacity to take the loan and repay that loan.
3. CASH
There must be regular cash flows of business because liquidity is important for refund of loan.
4. COLLATERAL
Transaction must be secured by collateral. The applicant should have such amount of asset that can
be used as security of credit he has taken from bank.
5. CONDITIONS
Different conditions are important to minimize the risk of lending mostly these conditions are two
kinds.
These conditions relate to industry and country environment.
Internship Report
 Positive condition: Bank does not restrict the applicant to do something but it demand
for some paper to be signed.
 Negative condition: Bank restricts the applicant to invest this credit in pre-specified
business.
TYPES OF LENDING:
There are two types of advances:
 Funded finance
 Non-funded finance
FUNDED FINANCE
In a fund base loan cash are involved. In these loans cash transaction are made directly. Fund based
loans are further divided into five types:
 Running finance
 Cash finance
 Term finance
 Staff finance
 Clean finance
 Mortgage finance
 Trade finance
Internship Report
1. RUNNING FINANCE
This is also known as current finance or hypothecation. Per day mark-up is a charge but
customer is flexible to draw within the drawing power. Hypothecation of stock is the prime
security. In running finance amount is mentioned clearly. Mark-up is charges on the amount that is
drawn not on full amount. Previously this is known as “overdraft”, in which customer can
withdrawal his credit account in excess of credit in it.
2. CASH FINANCE
This is just like in running finance the only distinction in this case security is stock pledged form
and the security margin is also charged. Chequebook is not issued. Cash flow must be regular one.
Bank issues delivery order if the borrower wants to draw stock equal to money deposited by
customer.
3. TERM FINANCE
Its time period is fixed. Amount and mark-up rate is mentioned. Mark-up is charged on
the full amount of loan because amount is withdrawal at once. Term finance is secured by security.
Credit should be given according to the security. It is more profitable than running and cash finance
because mark-up is charged on whole amount.
There are some cases when long term finance is also provided, these are:
* Existing plant is in running and expansion in it is needed
* To running plant for replacement of machinery
* To running plant for modernization
Internship Report
4. STAFF FINCNE (PERSONNEL)
This facility is given to the staff of ABL. The amount of loan depends upon the rank of staff.
* OG iii to OG I the amount of loan is Rs. 25,000
* Above OGI up to SVP Rs. 50,000
* And above SVP Rs. 100, 000
Repayment period is 2 years and instalments are deducted from salary. Mark-up rate is 5% no
security is needed it is against GP fund. The eligibility is 2 years or more service.
5. CLEAN FINANCE:
These are the special types of finance is given without the security. In the ABL these type of
finance are given to the Army officers mostly. The amount of this finance is Rs 25000. The bank
should not be given more than Rs. 25000.
6. MORTGAGE FINANCE
This I also transacted through Retail Banking Division. As a security simply the mortgage of
property is demanded by the bank. This is for three purposes;
* Purchase of house
* Construction of house
* Renovation of house
This facility is for individuals. Repayment period is 15 years for construction and purchase of house
and for renovation 7 years subject to remaining service. The mark-up is SBP discounting rate 4%
plus with a floor rate 15%. Total service of the applicant should be 3 years and minimum 2 years
with the existing employer. No complicated procedure only the recommendation of the employer is
needed.
Internship Report
7. TRADE FINANCE:
There are two kinds of the trade finance.
1. Import related finance
2. Export related finance
1). IMPORT RELATED FINANCE:
There are two types of import related finance:
 Finance against trust receipt (FATR)
 Finance against imported merchandise (FIM)
 Payment against documents (PAD)
FATR:
In this type of finance cash is involved between borrower and bank only. This type of loan is
given on the basis of trust only. This type of finance is very risky, so the bank charges high interest
rates. FATR finance is given to selective persons. The can put signee behind the bars without going
to court after 180 days purchase good from exporter.
FIM:
Importer says that he has no money and wants to import goods. Bank then opens LC and pledge
all the imported goods. After arrival of goods bank allows him to take away goods as he pays to the
bank and charges mark-up to the remaining balance. It is like cash financing.
Internship Report
PAD:
If the importer does not pay with in 3 days of arrival of good then bank converts LC into funding
facility and charges mark-up .
2). EXPORT RELATED FINANCE:
There are two types of export finance.
1. FAFB (finance against foreign bills)
2. FAPC (finance against packing credit )
 Pre-shipment finance
 Post-shipment finance
1. FAFB:
This is provided in case of usance LC. The exporter discounts usance LC with bank and bank after
taking cushion (check) makes payment.
2. FAPC:
This type of finance is given for the packing purpose. It can be before shipment for purchasing raw
material and for packing of shipment and after shipment, for giving the salary of labours and
payment of raw material.
Internship Report
NON FUND BASED.
It is the commitment and does not involve hard cash. It is normally an obligation of the bank and in
case of default of original borrower the bank stands responsible. In this type of facility bank asks
the applicant for cash margin and for mortgage of property. Even though no funds of bank involve
but this facility is as risky as funded finance. But it is very lucrative for bank because no funds of
bank are involved but bank charges and interest on the cash margin by head office generates
revenues for bank.
TYPES OF NON_FUNDED FINANCE:
There are two types of non-funded finance.
1. Letter of credit (LC)
2. Letter of guarantee (LG)
1. Letter of credit:
There are two types of LCs:
 Usance LC
 Sight LC
Usance LC:
It is the LC in which the time period is involved. Time period is 60, 120, 160, days. Bank makes
the payment of LC when they received the documents, like transport receipt and invoice.
Internship Report
Sight LC:
It is the LC, opposite to usance LC, in which payment to the exporter is made on the sight of
documents.
LETTER OF GUARANTEE
Banks issue guarantees when contract is made between two parties. It requires no prime security
and only collateral security is taken. The amount of guarantee to be given is calculated after
valuation of assets of applicant, which he/she wants to give as collateral. 70% of total property is
taken as FORCED SALE value of the assets and after taking 25 %security margin on forced sale
value the guarantee is given for remaining value. Normally 25%cash margin is also taken for
guarantee. This margin may vary according to the credibility of the applicant. No mark-up is
charged but commission is taken. The rates for commissions are:
* Up to 5million . 4% or minimum Rs 500.
* 5m-10m . 3%
* 10m-200m . 25%
* Over200m .2%
* .125% is charged to Govt. and semi-Govt. Organizations
This commission is charged quarterly.
TYPES OF GUARANTEE
Most of the guarantees are given in case of contracts. Guarantees are allowed for the purchase of
fertilizers and for travailing agencies to PIA.
Following are the major type of guarantees:
Internship Report
1. BID BOND
Banks give commitment for a bid. Normally 5 % contract amount is kept as bid security to qualify
bid. Now bank gives guarantee to beneficiary on behalf of applicant for this amount. If bid is
accepted then contractor asks the bank for ADP.
2. ADVANCE PAYMENT GUARANTEE (ADP)
Bank gives this guarantee to beneficiary to provide the contractor the advance payment because he
now has to start work.
3. PERFORMANCE BOND GUARANTEE
That the contractor will perform the task assigned with in the specified period of time.
4. SHIPPING GUARANTEE
This type of guarantee is very rare and given it at 100 % margin.
5. MAINTENANCE BOND
For the maintenance of work performed (say construction) by the contractor.
Continuous guarantee is not allowed. This guarantee is given on the behalf of the contractor
because otherwise beneficiary will retain some amount of contract.
Internship Report
Foreign exchange is one of the important departments of ABL. It deals with foreign currency and
foreign exchange. In a foreign exchange department ABL deals with Account opening, Withdrawal,
deposits and remittance.
ACCOUNT OPENING:
There is two type of account opening in foreign exchange.
 Frozen or Old scheme accounts
 Incremental or New scheme accounts.
FROZEN OR OLD SCHEME ACCOUNTS:
This type of accounts was frozen on 28, May 1998. In frozen accounts, account holders can
withdrawal their amounts only in Pakistani currency. Account holder cannot withdrawal their
amount in foreign currency.
INCREMENTAL OR NEW SCHEMEM ACCOUNTS:
A new scheme was introduced by SBP for foreign currency accounts. In this new foreign currency
account, account holder is allowed to open an account in foreign currency. Deposit and its
withdrawal both can be done in foreign currency. There will no restoration on foreign remittance.
Deposits of foreign currency are easily transfers for investment purpose.
Internship Report
State bank of Pakistan does not charge forward coverage fee on new scheme accounts. But the SBP
charges forward coverage fee on the old account because Pakistani government holds deposit in
these accounts. In the ABL foreign currency account deposits are also reported in a local currency.
Foreign currency deposits are also revalued at the end of each month. Revaluation rate is announced
at the end of each month.
FOREIGN REMITTANCE:
The procedure of foreign remittance is just like the local remittance. The only difference lies in the
currency. Obviously, the local remittance is in Pakistani currency and foreign remittance in foreign
currency.
NOSTRO ACCOUNT:
One bank account with another foreign bank is called a NOSTRO account.
VOSTRO ACCOUNT:
Foreign bank account with a local bank is called VOSTRO account.
TYPES OF SERVICES IN FOREIGN EXCHANGE:
ABL provides two types of services in foreign exchange.
 Trade Related services
 Travel Related services
TRADE RELATED SERVICES:
ABL provides two types of trade related services.
 Export related
Internship Report
 Import related
EXPORT RELATED TRADE SERVICES:
Export means transfer of goods and services from the home country to another country. There are
four methods of payment that is used in an export trade services.
 Cash against documents collection (CAD)
 Foreign bill purchase
 Consignment sale basis
 Advance payment
1. CASH AGAINST DOCUMENTS COLLECTION (CAD):
In CAD there is no guarantee and liability of the bank. Bank of the exporter will send shipping
document to the advising bank. Then the importer’s bank transfers the documents to the importer
after the payment is received. After completing the assurance that payment has been received the
exporter’s bank makes the payment to the exporter.
2. FOREIGN BILL PURCHASED:
In this mode of purchase importer will send LC to the advising (importer) bank. After receiving
the LC the advising bank will give it to the exporter. After the shipping of goods, exporter will
hand-over shipping documents to negotiating bank and they will receive payment from the
negotiating bank.
Internship Report
3. CONSIGNMENT SALE BASIS:
In this mode of payment, payment is received within 120 days. Importer will receive the goods
after paying the custom duty. The importer makes the payment when he receives the sale
proceeds and after the attestation of the sale precedes receipt from concerned embassy.
4. Advance payment:
Advance payment means payment of the goods before they are delivered to importer. In the
advance payment inward remittances are transferred from the foreign bank to the exporters account.
IMPORT RELATED TRADE SERVICES:
Import is receiving goods and services from the foreign country to home country. Four modes
of payment are used for imports:
 Cash against documents (CAD)
 Deferred payment
 Advance payment
 LC/ documentary credit
1. CASH AGAINST DOCUMENTS (CAD):
Internship Report
Bank of the exporter will send shipping document to the advising bank. Then the importer’s
bank transfers the documents to the importer after the payment is received. After completing the
assurance that payment has been received, the exporter’s bank makes the payment to the exporter.
2. DEFERRED PAYMENT:
In this mode of payment, the important thing is the mutual concern of exporter and importer. In
this case the seller shipping the good and the buyer makes the payment with a mutual
understanding.
3. ADVANCE PAYMENT:
In this mode of payment the seller receives advance payment of his goods. The buyer can also
take discount benefit for his advance payment. The seller takes the benefit through investing
advance in the preparation of goods.
4. LC / DOCUMENTARY CREDIT:
LC means letter of credit. The opening bank on the behalf of the applicant writes letter of credit
in the favor of beneficiary. This letter of credit is written for a specified amount against the
submission of shipping documents. Applicant requests for the LC through bank, which is called
LC opening, bank. In this case beneficiary is exporter and applicant is importer. Other parties
of LC are:
 Advising bank
 Negotiating bank
Internship Report
 Reimbursing bank
ADVISING BANK:
Advising bank is the bank of importer. Its duty is to transfer LC documents to the exporter
bank.
NEGOTIATING BANK:
Negotiating bank is the bank of exporter country bank. It makes the payment to the exporter for
his goods, which he exports to the importer.
REIMBURSING BANK:
Reimbursing bank is the foreign bank. This is a bank, which has the Nostro Accounts of the
ABL. The duty of this bank is to make the payment to the negotiating bank.
LC is the safest mode of payment for both importer and exporter and for other all parties. It gives
guarantee to the parties from the bank. It is one of the kinds of non-fund base finance when the
payment is received from the importer’s bank. This non-fund base finance changes into fund base
finance.
TYPES OF LC:
There are two types of LC:
 Usance LC
 Sight LC
USANCE LC:
It is the LC in which the time period is involved. Time period is 60, 120, 160, days. Bank makes
the payment of LC when they received the documents, like transport receipt and invoice.
Internship Report
SIGHT LC:
It is the LC, opposite to usance LC, in which payment to the exporter is made on the sight of LC
documents.
DOCUMENTS REQUIRED FOR OPENING LC:
There are seven types of documents that are required for opening of LC:
 Request letter
 Import Registration Certificate
 Premium Paid Receipt (insurance)
 IB8
 Performa invoice
 Certificate of origin
 Certificate of analysis report (appearance, contents, etc)
 Bill of lading (Airway bill, Truck receipt, Rail receipt)
PROCESS OF LC:
LC is opened on the request of the importer. Importer contract with LC opening bank. Bank duty is
to complete the documents for LC opening. Bank works as party. After completing the documents,
bank dispatch it to the advising bank. Some time advising bank ask for the confirmation of the LC
opening bank and the third bank confirmation to the advising bank on the request of the LC opening
bank.
After completing all rules and the regulations they hand-over the LC to the exporter bank then
move to the exporter. After receiving the LC exporter prepare the order goods. The exporter
Internship Report
prepares the shipping documents with help of custom authority. After completing the shipping
document he hand-over the documents to the negotiating bank and negotiating bank transfer them
to LC opening bank. These sipping documents are in favor of LC opening bank.
Negotiating bank makes payment to exporter. After making the payment to the exporter they send
their claims to the reimbursing bank. Reimbursing bank makes the payment to the negotiating bank
and sends their claim to the LC opening bank. LC opening bank makes payment to the reimbursing
bank on the behalf of importer after receiving the shipping document. At the end LC opening bank
transfer the documents to the importer after receiving the payment.
Banks charge their markup on the amount of LC. They charge their markup from the date of
negotiation bank makes payment to the exporter and send claims to the reimbursing bank.
Bank’s markup is 50 paisas per thousand per day. Bank also gives discount to the importer if they
make payment within 15 days. They give discount 10 paisas.
IRREVOCABLE LC:
This is the rule that LC cannot be revoked without the consent of parties, exporter and importer.
LC process flows as:
Internship Report
Askari bank limited believe that information technology will play a decisive role in competitive
edge in the market the bank ensures to become the symbol of excellence by providing better
customer services, through the use of state of art of technology.
It is the consistent policy of bank to make maximum use of technology so is fully equipped to
provide innovative and high sophisticated technology based products and services.
In 1998 the bank further improved its online communication by installing the fault tolerant life
keeper to ensure real time communication link and inter branch online banking system for the
benefit and greater convenience of their customers.
Askari Bank Ltd has a largest communication network in banking industry in Pakistan, which
helped in boarding the customer base.
As customers find it easy to precede their transactions sitting at one corner of country to the other
corner. The clients can shift their amount from one branch of Askari Commercial Bank Ltd to other,
their cheque can be cashed, they can make deposit can draw the money also through online banking
availing quick and speedy service for his urgent requirement. Actually this is transfer transaction.
Following are the on line charges
 Up to Rs. 25000 Rs.50
 Up to Rs.200000 Rs.100
Internship Report
 Rs.200001 to Rs.500000 Rs.250
 Rs.500001 to Rs.2000000 Rs.500
 Over Rs.2000000 Rs.550
INTERNET SERVICES
In pursuance of Askari Commercial Bank Ltd quest to provide the most modern services to its
customers, it has started to provide information about its facilities and about its network on internet.
Its web-site is www.askaribank.com.pk.
In the internet banking, a log on and a password or pin number is given to the customer through
whom he can avail internet facility.
By using Internet facility the customer can get information about statement of account,
balance in account, even photocopy of account can also be drawn. ABL is the first bank in Pakistan
to provide the means of remotely accessing certain banking services through internet. Which have
otherwise been made available by banks to its customers by traditional means.
ATM CARDS
This facility of Automated Teller Machine was firstly introduced in Europe and America in 1960's
now it has been introduced in Pakistan also with different international banks. ABL is the first in
private sector, which started providing this facility.
The customer of ABL Bahawalpur can also avail this facility as it has been installed this year.
On the basis of cash in accounts ATM card is issued there is no requirement of minimum balance
this is a debit card. On the basis of ATM no credit facility is given. The amount up to which you are
eligible can only be withdrawn. ATM card can be used through ABN, AMBRO, NBP, HBP and
with CITY BANK. As these banks have agency services with the ABL.
Internship Report
ATM CARDS (Debit cards)
For the issuance of ATM card an application has to be given to the Account Opening Officer, he
forwards it to head office, which then sends ATM cards and pin card. Head office sends the card
and pin code within 10 to 15 days. Keep in mind that these cards are not issued on fixed deposits.
By using ATM cards the customer of ABL can withdraw Rs. 25000 in 24 hours. Bank charges Rs
200 annually that is recovered in advance.
APPLYING FOR ATM CARD
 Customer should be account holder
 Application form is filled
ASKARI PRIVILEGE CARD
Privilege card is issued against the value plus account of ABL. The customer having this card can
avail discount facility on the shops specified by ABL.
CREDIT CARD
One of the credit facilities arranged by the Askari for the benefits of the customers is called credit
card it has no concern with operation of accounts but facilities the small financial needs of clients
like shopping of goods and or any short term financing. Even with Zero balance in account credit
card can be used.
Internship Report
Minimum payment of 10% of outstanding amount is to be submitted, otherwise after 45 days of
utilization of credit per month 2.33% interest is charged on outstanding balance plus penalty. If
10% is submitted then no penalty but interest on outstanding balance Rs.100/- per month is
charged. Penalty is charged when minimum 10 % is not submitted within 45 days mean from the
1st date of month (say June -01) to 15th of next month (Mean 15th of July) now if any person
purchaser goods on 10th June . He has to pay 10 % of bill amount up to 15th July to save himself
from penalty and interest; otherwise he has to pay interest from 10th of June.
TYPE OF CREDIT CARD
There are three types of credit cards issued.
 SILVER CARD
 GOLD CARD
 LOCAL CARD
 Silver card has limit up to 2 lac.
 Gold card has limit up to 5-lac.
 Local card has limit up to 2 lac.
 Silver and Gold card can be used internationally for shopping and also can be used for
internet shopping.
 Local card can be used in Pakistan.
Limit of credit card depends upon average balance in account and monthly income of customer.
Credit cards are internationally accepted. Credit card holder should be the account holder of the
bank.
Internship Report
Govt. Officers private organization Officers, Army Officers, and entrepreneurs can avail this
opportunity.
TO BE CREDIT CARD HOLDER:
Age limit for primary card.
Minimum 21 years
Maximum 58 years
Age limit for supplementary card.
Minimum 18 years
Maximum 70 years
Supplementary card is that card which any primary credit card holder issue in the favour of their
spouse, siblings, parents and children. Up to 3 supplementary cards can be available for immediate
family members.
DOCUMENTS REQUIRED FOR CREDIT CARDS:
 Application form of credit card.
 Photocopy of NIC.
 Passport size photograph.
 Proof of income (salary certificate).
Internship Report
 Last six month account statement.
In addition to this
FOR PROPRIETORSHIP CONCERN:
Registration certificate in case of a registered firm or bank certificate confirming ownership of the
business by the applicant.
FOR PARTNERSHIP CONCERN:
Bank certificate confirming partnership with percentage ownership of each partner.
PRIVATE LIMITED COMPANY:
 Memorandum and articles of association of the company.
 Form A. documenting the percentage shareholding of each director.
 Bank certificate confirming shareholding and percentage ownership of the company.
 Proof of other documents such as rental income proof, saving certificate etc.
 Income tax assessment orders.
 If a person who is working in any private company and his salary is Rs.15000 or above he
can apply for credit card.
LIMITS OF CREDIT CARD FOR ARMED FORCED:
Rank Card type Limit (Rs)
Lt. Silver 25000
Capt. Silver 25000
Internship Report
Maj. Silver 30,000
Lt. Col Silver 45,000
Col Silver 60,000
Brigadier Silver 100,000
Maj. Gen. Gold 200,000
Lt. Gen. Gold 250,000
Gen. Gold 300,000
LIMITS OF CREDIT CARD FOR GOVT. OFFICIALS:
From govt. Officer grade 17 or above, fill information of department recommendation letter by
department or NOC along with above mentioned requirements.
Grade Card type Limit (Rs)
17 Silver 30,000
18 Silver 50,000
19 Silver 100,000
20 Silver 150,000
20 Gold 150,000
22 Gold 250,000
SPECIAL REBATE (discount) FOR STAFF MEMBERS:
For OG=III Rs.25000/-
OG-II RS.30000/-
Internship Report
OG-I RS.40000/-
AVP RS.80000/-
Is the limit for credit card and processing charges 50%.
E_BILLS FOR PTCL CUSTOMERS:
Through online banking it become very easy for the PTCL customer to pay their telephone bills
through ABL’s ATMS, point of sale terminals, prepaid cards, account transfer through internet and
also from ABL branches through direct debit to their personal accounts.
Internship Report
PERFORMANCE
ASKARI BANK LTD

Summarized Income Statement
For The Year Ended On December 31,
2002, 2003, 2004, 2005, 2006
Years 2002 2003 2004 2005 2006
TOTAL INCOME:
(Rupees in Million)
Mark Up / Interest
Income 4655 4074 4487 8781 12596
Fee, Commission
And Brokerage
Income 416 525 708 839 1013
Dividend Income 26 38 26 51 109

Income After
Dealing In Foreign
Currencies 384 113 181 356 584
Other Income 220 278 717 206 321
Total Income: 5701 5028 6120 10333 14623

Less: Mark Up /
Interest Expenses 3017 1380 1117 4278 3283
Gross Profit 2684 3648 5003 6055 11340

Less: OPERATING EXPENSES
Administrative
Expenses 1090 1436 1845 2592 3277
Provision Against
Non Performing
Loans 351 308 315 602 1128
Bad Debts Written
Off Directly 39 0 7 0 0
Other Provisions /
Write Offs 0 0 0 0 0
Internship Report
Other Charges 2133 1227 138 1832 6141

Total Operating
Expenses 1443 1746 2160 3194 3283
Profit Before Tax 1244 1902 2843 2859 3346
Less: Tax 557 799 920 837 1096
Profit After Tax 687 1103 1923 2022 2249
ASKARI BANK LTD

Summarized Balance Sheet
For The Year Ended On December 31,
2001, 2002, 2003,2004, 2005
Years 2002 2003 2004 2005 2006
(Ru p ees
in
ASSETS: Million )
Cash And Balances
With Treasury
Banks 5,301,388 6,678,026 8,762,866 11,766,925 14,879,230
Balances With
Other Banks 1,304,363 2,650,166 4,847,899 5,550,148 7,333,002
Lending To
Financial
Institutions 3,414,470 5,770,842 2,324,839 10,172,242 8,392,950
Investments 26,759,001 22,104,425 17,239,157 25,708,194 28,625,915
Advances 30,035,484 44,777,538 69,938,041 85,976,895 99,179,372
Other Assets 1,835,072 1,425,986 1,459,716 2,732,641 3,812,788
Operating Fixed
Assets 1,663,295 1,979,919 2,595,023 3,192,862 3,810,331
Total Assets 70,313,073 85,386,902 107,167,541 145,095,558 166,033,588
LIABILITIES:
Bills Payable 608,481 973,703 1,227,093 1,315,680 1,839,077
Borrowing From
Financial
Institutions 11,460,934 15,903,055 13,781,555 10,562,338 14,964,087
Deposit And Other
Accounts 51,731,506 61,656,607 83,318,795 118,794,151 131,839,283
Liabilities Against
Assets On
Financial Lease 54,548 37,350 14,159 3,971 0
Other Liabilities 987,575 962,592 1,282,981 2,273,153 2,603,113
Deferred Tax 1,297,365 806,753 526,865 564,388 736,298
Internship Report
Liabilities
Total Liabilities 66,140,409 80,340,060 98,482,894 136,513,381 154,980,358
EQUITY:
Share Capital 1,087,314 1,141,680 1,255,848 1,507,018 2,004,333
Reserves 1,939,236 2,759,599 4,317,301 5,856,821 5,814,754
Shareholder Equity 3,026,550 3,901,279 5,573,149 7,363,839 7,819,087
Surplus On
Revaluation Of
Asset 1,146,114 1,145,563 442,944 1,218,338 1,434,164
Total Equity 4,172,664 5,046,842 6,016,092 8,582,177 11,053,230
Total Equity &
Liabilities 70,313,073 85,386,902 107,167,540 145,095,558 156,414,522
FINANCIAL ANALYSIS
-1-Return on Equity
Return on equity (ROE) = Net Income/ Average stockholder’s equity
Year 2002 2003 2004 2005 2006
ROE (%) 20.3 23.9 34.8 27.7 44.4
Internship Report
Interpretation:
It measures the overall effectiveness of management in generating profit with its Shareholder’s
equity. Shareholder’s of the bank may be interested in this ratio as to check the firm’s effectiveness
in using the capital provided by them. Higher this ratio, more effective the firm is.
2- Earnings per Share
Earning per share (EPS) = Net Income/ Weighted average no of shares outstanding
Year 2002 2003 2004 2005 2006
EPS 6.32 9.66 15.31 13.42 11.23
Internship Report
Interpretation:
It represents the number of rupee earned on behalf of each outstanding share of common stock. The
graph shows the gradual decrease in earning per share in 2005 was 13.42% and decreased in 2006
that is 11.23%.
3- Price Earning Ratio
Price earning ratio = Market price of common stock per share/ Earning per share.
Year 2002 2003 2004 2005 2006
P/E (%) 4.5 5.3 6.1 9.6 8.22
Internship Report
Interpretation:
It measures the amount investors willing to pay for each rupee of the firm’s earning. It
also shows the degree of confidence of investors on firm. Higher this ratio higher is the investor’s
confidence. Although in 2001 this ratio is low in ABL but then ABL get the investor’s confidence
so this ratio starts increasing and slightly decrease in 2006.
4- Advance to Deposit Ratio
Advance to deposit ratio = advances/ deposits
Year 2002 2003 2004 2005 2006
CDR (%) 58.1 72.6 83.9 72.4 75.2
Internship Report
Interpretation:
This ratio shows the relationship between advances & deposit of the bank. This ratio is increasing
from 2001 to 2006 except 2005. The increase in this ratio shows that instead of having idle its
deposit bank is efficiently utilizing its deposits by advancing to the customers. The decrease in 2005
shows that increase in advances rate is less than the increase in deposit rate.
5- Capital Adequacy Ratio
Capital adequacy ratio = Total equity / Total assets
Year 2002 2003 2004 2005 2006
CAR (%) 12.00 9.9 8.5 11.00 6.65
Internship Report
Interpretation:
The graph shows from data of past five years that it was high in 2002 that is 12.00% & decreased in
2004 8.5% as compared to 2003 which was 9.95%. In 2005 CAR it is 11.0% and in 2006 it
decreasing 6.65%
6- Net Profit Margin
Net profit margin = Net profit / Total income
Year 2002 2003 2004 2005 2006
NPM (%) 12.04 21.94 31.42 19.57 29.4
Internship Report
Interpretation:
This ratio measures the %age of each sales dollar remaining after all cost and expenses,
including interest and tax, have been deducted. The higher this ratio the better is company. In ABL
this ratio has decreased in 2005 but again increase in 2006.
7. Rate Paid on Funds
Rate paid on funds = Total interest expense/ Total earning assets
Year 2002 2003 2004 2005 2006

Rate paid
on funds 1.55 1.68 1.72 1.78 1.83
(%)
Internship Report
Interpretation:
Rate paid on funds; it indicates what percentage or ratio of interest is paid from assets. It is highest
in 2006 i.e. 1.83%
8. Net Interest Margin
Net interest margin = Net interest income/ Earning assets
Year 2002 2003 2004 2005 2006

Net
Interest
2.11 2.79 2.85 2.68 1.47
Margin
(%)
Internship Report
Interpretation:
This graph shows from the data of past five- years that it was high in 2004 that is 2.85% and
decreased in 2005 2.68% and in 2006 1.47%.
9. Reserves as Percentage of Loans
Reserve as %age of loans = Reserves/ Total loans
Year 2002 2003 2004 2005 2006

Reserves as
%a of 2.93 3.43 4.26 4.29 3.8
loans
Internship Report
Interpretation:
As the figure shows, ABL’s Reserves as percentage of its Loan have increased as compared to last
year, and there is an increasing trend in this ratio from past 4 years.
Its decreasing in 2006.
10. Long Term debts to Equity and Liability
= Long term debts/ Total equity and liability
Year 2002 2003 2004 2005 2006

LTD to
equity &
73.65 72.25 78.69 83.93 90.2
liability
(%)
Internship Report
Interpretation:
The graph shows the data of past five years. The higher this figure, the more difficult it would be
for a bank to borrow more funds. It was highest in 2006 that is 90.2%.
11. Loans to Assets
Loans to assets = Loans / Total Assets
Year 2002 2003 2004 2005 2006

Loans to
94.06 94.08 94.38 94.08 91.33
Assets (%)

Internship Report
Interpretation:
The loans to assets ratio measure the total loans outstanding as a percentage of total assets. The
higher this ratio indicates a bank is loaned up and its liquidity is low. The higher the ratio, the more
risky a bank may be to higher defaults. It was high in 2001 that is 94.94% & decreased in 2005
94.08% as compared to 2004 which was 94.39%.and now it’s decreasing in 2006 is 91.33%

Internship Report
STRENGTHS
 Askari Bank is proud of the pioneering role in providing the most modern technological
services to its customer base, which today exceeds 150,000 relationships.
 In the bank service quality standards are designed and monitored to ensure a consistent and
convenient customer experience.
 Products and services are as diverse as market segments. Bank has structured and syndicated
financing arrangements, working capital finance, Balancing-Modernization Replacement
(BMR) facilities, financing of international trade, consumer credit, small business loans,
credit cards and ATM cards.
 The human resource philosophy at Askari Bank focuses on multi-talent hiring, professional
grooming, requisite training and meritocracy based reward system.
 Recognition by Pakistan credit rating agency (PACRA).
 Staff welfare has always been a priority. New initiatives like hospitalization plan, car buy-
back facility and home loan insurance have added new dimensions to the staff-care policy
and motivated them to out-perform competitors.
 Bank enjoys a strategic competitive advantage over all domestic players by virtue of its
leadership in technological innovations.
 Different cameras are located at different locations to monitor the working of staff members
and outside customers by branch manager.
 Bank has fully automated transaction-processing systems for back-office support.
 Bank's branch network is connected on-line real-time and customers have access to off-site
as well as on-site ATMs, all over Pakistan.

Internship Report
 Bank also is pioneer in e-commerce venture in Pakistan through a major retail distributor.
 Bank's qualified and experienced technology team is now focusing on data warehousing to
enhance the Customer Relationship Management (CRM) program.
 From a humble beginning with just 10 branches in 1993, today bank enjoys a network of 36
outlets, spread across the country. A network of self-service ATMs supports these outlets.
 ATM card is available with the withdrawal amount about Rs. 25000 a day.
 Bank's total assets now exceed Rs.70.9 billion and bank has over 17 products and services to
match the individual needs of the customers.
 Bank has been honoured with the "The Best Bank in Pakistan" award by the Global Finance
Magazine.
 Bank has also received prizes during the last four years from the South Asian Federation of
Accountants (SAFA) for the "Best Presented Annual Accounts" for the financial sector, in
the SAARC region.
 Bank was the first bank in Pakistan to offer Internet Banking services, b2b e-commerce
solutions for merchants looking to purchase on credit and E-bill payment system.
 With a network of 187 correspondents spread over 95 countries world-wide, the bank
continued to reinforce its leadership position in trade finance, transacting business of over
Rs.70 billion, during this year.
 Bank is now actively involved in the acquisition of business and signed up over 300
merchants national wide which offer-shopping discount to the Bank's Privilege Card
members.
 Askari Master Card is accepted worldwide and at over 3000 locations in Pakistan.
 Bahawalpur branch of ABL is backed up in case if computer or electricity systems failed.

Internship Report
WEAKNESSES
 Bank is providing credit facilities only to the urban areas not too much attention is paid to
the rural areas.
 As Pakistan is agriculture country but no special schemes for the agri- loans.
 There is shortage of place in ABL Bahawalpur branch. The customers have to move through
the working area of bank and no two persons can move simultaneously.
 Most of the investment is in government securities rather bank should invest in the corporate
shares.
 Bank is not giving emphasis on the small-scale businesses. Which are large in number in
Pakistan.
 There is enormous difference between the bank-lending rate and return on deposits.
 High interest rates offered by National Saving Schemes.
 The procedure and documentation while sanction loan is thorny. This is a barrier for
advances.
 Bank gives targets to employees for deposits due to this reason they pay more attention to
fulfil these targets to save their jobs. This distracts their attention from their duties.
 Reasonable care is not taken while opening new accounts one of the reason is because
employees want to introduce more and more depositors.
 No job security is there for the employees, and no union exits to secure them.
 The online credit card facility was not secured that is why recently bank has closed its
online credit card shopping scheme.
 Bank has not adequate number of branches as compared to its competitors like MCB, UBL,
ABL, NBP etc.
 Due to small number of branches at greater distance potential customers may go to other
more feasible options.

Internship Report
 A good number of facilities are only for the army persons, not for the general public.
 As every person in the bank has his/her own computer in the branch but they are not well
equipped with the knowledge of using the computer efficiently.
 The return on deposits is very low.
 ABL has only agency arrangements with the foreign banks, no branch exists outside the
Pakistan.
 While their main competitors have their own branch network outside the Pakistan.
 Bank has no grievance-handling department for the internal problems of the employees.
 Due to lack of computer specialist at branch level it has to take assistance from the head
office.
 To improve the services and to remove the problems of customer the bank has no customer
complaint department.
 Limited locker facility is there, which do not fulfil the requirements of customer and charges
of lockers are also very high.
OPPORTUNITIES
 Bank has a small branch network so it has got the opportunities to increase the number of its
branches.
 Bank has no foreign branches so it should open its branches outside the country especially
in U.K, U.S.A and in U.A.E.
 Facilities like financing of housing should also be offered to general public especially in the
urban areas, not only army officers.
 In agrarians cities like Bahawalpur there is a potential for giving credit facilities to farmers.
 At least on software and hardware technician should be appointed at each branch.

Internship Report
 Bank is not yet performing utility services for the utility companies like WAPDA it can
increase its operations also in this direction and so a new source of earning.
 To increase its advances bank should focus small scale industries and choose one among
them and then a special scheme of lending should be introduced for that particular small
scale industry.
THREATS
 The markets rates are now at extremely low levels, with very little chance of their going up
during the rest of the year. The low interest rate means low profits for the banks.
 Saving rate in Pakistan is very low i.e.13% as compared to 30% in China and 40% in
Malaysia. This is a problem in Pakistan.
 As the banking procedures are complicated that is why general public takes interest into
other options of investments like in shares of companies and in Term Finance Certificates.
 Law and order situation in Pakistan is faulty that is why people are not confident to invest
anywhere.
 Responding to the SBP's prudential regulations management takes too much care while
granting loans.
 Now other banks are also imitating the modern banking concept of ABL and have started
online facility and also have computerized their operations. So there remain less competitive
advantage areas for the bank.
 Now the world is a global village so competitors may rise from anywhere in the world at
anytime.
 To survive in the industry and to earn profits bank should not rely on its present sources and
facilities instead of this it should establish new ways of acquiring, managing and sharing
market information.

Internship Report
 In near future the world is going to be free trade zone so the concept of "survival of the
fittest" will be in action.
 After the 11 September incident and due to terrorist activities in Pakistan the economy is
moving very slow. It means less investment and as a result low loan demands.
 High rate of taxes on banking companies.
 SBP levy heavy penalties on banks for violating the Prudential Regulation. So it requires
greater care while advancing.
 Increasing ATM trend among the banks also requires attention of the management to this
side.

Internship Report
 Bank should try to separate the working area and customers visit area.
 Instead of preferring the old employees of the other banks management should hire new and
well-educated talent. This will contribute to the long-term benefits of the bank.
 Credit policy should cover both the rural and as well as urban areas.
 Credit facilities should be enhanced to small-scale businesses.
 More and more facilities should be offer to general public instead of a specific group of
society like army.
 Management should keep the politics out of the bank. Politics mean both internal and
external politics.
 The facilities currently availing by the army persons only, can be extended to general public
e.g. house building finance.
 Training of the staff should be carried on regular basis especially in the field of modern
banking and operating computers.
 Number of branches should be increased to at least one in every Tehsile.
 Instead of filling the vacancies for outside the bank promotions from with in the bank
should be done. This will increase the commitment of the employees and will also motivate
them.
 Employees who perform extraordinary and achieve more than their targets should be given
bonuses.
 Job security should be increased.
 While hiring and promoting the employee’s discrimination should not be done only merit
should be considered.
 Complicated loan procedure should be replaced with an easy one keeping in view the risk
factor.
 To overcome the problem of workload new appointments should be done.

Internship Report
 In small cities like Bahawalpur Locker’s facility is not been utilized by the people .So in this
area the advertisement should be done in newspapers. Local newspapers can be used to save
the cost.
 Telegraphic Transfer system should be computerized instead of fax based.
 While hiring computer administrators for the branches the professional should be given
preference.
 There should be separate marketing department in each branch. Although it will increase the
expenses but benefits will be greater than expenses.
 Returns on the term and fixed deposits should be increased to the level of competitors.
 Although bank has agency relations with the foreign banks but it should open its own
foreign branches to compete with the competitors.

Internship Report
Overall analysis of the bank leads to the conclusion that bank is performing at satisfactory level.
The bank is no doubt the best Modern Bank in Pakistan. And to keep competitive advantage over its
existing and potential competitors bank is trying to introduce latest techniques on regular basis. The
customers of the bank are increasing every year and that is why not only the deposits of the bank
are increasing but also advances by the bank shows a steady growth during the last 5 years. As a
result of increasing advances and investment in higher yielding Treasury Bills. Equity base of the
bank is also increasing and in year 2000 it showed a positive growth of 20% over the period of last
5 years. Total assets of the bank are also increasing continuously. Similarly the earning per share is
also increasing. During last year this ratio was highest in last 5 years.
During its short life of operation bank has achieved many awards not only with in Pakistan but also
from outside the Pakistan.
So we easily without any qualm can conclude that;
"Bank is going exactly on the way of development and progression"

Final Askari Report

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Final Askari Report

Uploaded by

Copyright:

Available Formats

Internship Report

of the bank are also discussed in detail.

have been described thoroughly.

As the main purpose of internship is to learn by working in practical environment and to

recommendations for the improvement have been made wherever required.

level and the working environment of the organization.

October 1997. It is a 11th branch of Punjab and 25th branch of country.

the following firsts in Pakistani banking:

i) First Pakistani Bank to offer on-line real-time banking countrywide.

ii) First Bank with a nation-wide ATM networks.

iii) First Bank to offer Internet banking services.

iv)First Bank to offer e-Commerce solution.

To be the bank of first choice in region.

 To achieve sustained growth and profitability in all areas of business.

 To maximize use of technology to ensure cost-effective operations, efficient management

information system, enhanced delivery capability and high service standards.

returns and to continuously build shareholder value

 To explore new avenues for growth and profitability.

REGISTERED / HEAD OFFICE

REGISTRAR & SHARE TRANSFER OFFICE

REGIONS / AREAS / OBU

Nazimuddin A. Chaturbhai, SEVP

Tariq Siddique Ghauri, SVP

Malik Asad Ali Noon, EVP

 Loan syndications (arrange/co-arrangers & lead manager)

 Working capital financing

 Corporate finance advisory services

 Balance sheet restructuring

 Debt capital markets

 Trading activity (equities and derivatives)

 Discretionary Portfolio management

CONSUMER BANKING SERVICES

 AskCard (Debit / ATM card)

 AskPower (Prepaid card)

 Askari Bank’s mortgage finance (Home loans)

 Askari Bank’s business finance (Business loans)

 Askari Bank’s personal finance

 SamrtCash (Running finance facility for consumers)

 i-Net Banking (internet banking solutions)

 Askar (auto loans)

 Askari Touch ‘N’ Pay (on-line utility bill payment services)

 Askari Value Plus (flexible deposit accounts)

 Cash Management Services

 Rupee traveler cheques

 Askari investment certificates

 Askari MasterCard (credit card facility)

 Balance Transfer Facility

 Smart Installment Plan

TREASURY AND INTERNATIONAL OPERATIONS

 Foreign Currency Accounts

 Foreign Trade Services (Import & Export)

 Import & Export Financing

 Travelers cheque Issuance

 Foreign remittances (Demand Draft/Telegraphic Transfer)-Inward & Outward.

 Sale and Purchase of Foreign Currency Cash

 Issuance of Guarantees & Bid Bonds

 Offshore Banking Services

Offshore Banking Unit

ADVANCES AND CREDIT QUALITY

 Short term facilities for local trading

 Cheques purchase facility (foreign & local)

 Letters of Credit (Domestic as well)

 Finance Against Trust Receipts