EXECUTIVE SUMMARY

The comprehensive study of Askari bank helps to suggest the organizational wide plans that determine the long run success of the organization, finding new ways to add value, flexibility, and developing unique skills and ideas to manage people. After analyzing one can explain that how a bank can provide diversified products & services to the customers in order to provide them maximum utility. The purpose of Askari bank is to provide professional integrity, customer satisfaction and teamwork. To achieve sustained growth and profitability in all areas of business.

This report is a comprehensive study to know the potential of Askari bank. Askari Commercial Bank is one of the leading banks in Pakistan, which is growing rapidly. Economy of Pakistan specially banking sector is developing very fast, so there are opportunities in banking sector. Askari bank was incorporated in Pakistan on October 9, 1991, as a public limited company. It commenced its 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 is currently the highest quoted from among the new private sector banks in Pakistan.

Askari Bank has expanded into a nationwide presence of 98 Branches, and an Offshore Banking Unit in Bahrain. A shared network of over 1,100 online ATMs covering all major cities in Pakistan supports the delivery channels for customer service. As on December 31, 2005, the Bank had equity of Rs. 8.6 billion and total assets of Rs. 145.1 billion, with over 600,000 banking customers, serviced by our 2,754 employees. Askari Bank is committed to develop and enhance each employee¶s skills and capabilities through extensive in-house and external training programs and job rotation. Productivity of service firm is providing the best service to their customer

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at low cost. ACBL (Present name: Askari Bank Limited) tend to attain the maximum share of the market. This report includes the brief details about the bank. The major purpose of this report is to find out the performance, details of all the departments, functions of the Askari bank, role of Askari bank in the economy of Pakistan and to prepare a comprehensive report which covers all the aspects of the bank. In this report, I did the same thing which is required to study the organization on the whole.

It was a great experience to work at the Askari bank; the things happening were totally different from what we read in the books. In the period of 6 weeks internship at Askari Bank Township Branch, Lahore (0056), I had a chance to have the exposure of how a bank undergoes its functions. I tried my best to gain a practical exposure and an experience to plan, develop, present and report and to seek a challenging career oriented position in the field of general banking by using the potential of hard work and professional skills. It was a large size branch consists of 1 branch manager, 1 operation manager, 1 in charge general banking, 3 OGIII officers, 8 OGII officers, 5 OGI and some other clerical staff. As internee I have to help the different employee in the Branch in their daily work. I was asked to work on the entire general banking except cash dealings.

First I found out the brief history of the Askari bank to know about the past of the bank then I found the details about the present functions, its professional out look to attract the customers and to increase the business. During my internship I was sent to different departments including Accounts, Credits, customer dealing Account opening, Clearing, Remittances and Foreign exchange/Trade.

Account opening department gave a chance to know about the account opening process and requirements. In customer dealing, I learnt how to satisfy the customers. Remittance department explains the different kind of services provided by the Askari bank. I tried to explain the (D.D, Pay Order, M.T, T.T) opening, clearing and encashment process. Accounts department shows all the working of the bank during the whole period. This department prepares the

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balance sheet, income statement, salary slip of the employees and disburses the salary to the employees.

The foreign exchange department provides the detail about the trade of the country the foreign exchange covers imports, exports and foreign currencies. I learnt about LC opening, lodgment and retirement and other ways of making an import. The foreign currency department shows the currency come in and goes out of the country. Credit department covers all the schemes which the bank offers to benefit the people of the country.

At the very end I performed the financial ratio & SWOT analysis of Askari bank to show the actual position of the bank and to find out the strength, weakness and advantages of the bank. By analyzing the overall performance I can say that the bank has improved its working. And it links to be getting better in profit earning sector and it is expected that the Profitability of the bank will be improved in the future year.

After the analysis I give suggestions to bank which I feel during my internship program the bank can make rapid progress and can increase its business and performance. So at the end we can say in the modern era it has achieved a destination where other competitive modern banks can simply reach. For the year 2006, Askari bank has won the Best Consumer Banking Award 2006 from the consumer Association of Pakistan, the Best Retail Banking Award 2008 from Pakistan Guarantee Export Corporation Ltd. and The Best Corporate Report Award for the year 2008 from the Institute of Chartered Accountants in Pakistan (ICAP), and the Institute of Cost and Management Accountants in Pakistan (ICAMP). That is why people have more trust in askari bank and they are willingly depositing their money in it without any threat. All in all, it was a very good learning; which will be helpful in my career.

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INTERODUCTION

20 YEARS OF BANKING HISTORY
Askari bank was incorporated in Pakistan on October 9, 1991, as a public limited company. It commenced its 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 is currently the highest quoted from among the new private sector banks in Pakistan.

Askari Bank has expanded into network of 226 Branches/ subsidiary branches including 31 dedicated Islamic banking and a wholesale bank branch in Bahrain. A shared network of over 4,173 online ATMs covering all major cities in Pakistan supports the delivery channels for customer service. As on December 31, 2009, the Bank had equity of Rs. 14.95 billion and total assets of Rs. 25433 billion, with over 984,485 banking customers, serviced by our 6,159 employees. Askari Investment Management Limited and Askari Securities Limited are subsidiaries of Askari Bank engaged in managing mutual funds and shares brokerage, respectively. The VISION to be the bank of first choice in the region demands continuous strive for creation of business opportunities with innovation while maintaining the core values to meet the commitment to all bank¶s stakeholders. The range of the products aims to serve the diverse customer base that comprises of corporate, SMEs, individual savers, households and, farmers. At the same time, the people are constantly engaged in assessing customer needs and market dynamics to realign the products and the priorities to attain brand recognition and competitive edge. ACBL are reshaping its portfolio of businesses by investing in higher growth areas, extending and developing the core competencies and moving out of weak and non± core segments.

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VISION STATEMENT
To be the bank of first choice in the region

MISSION STATEMENT
To be the leading private sector bank in Pakistan with an international presence, delivering quality service through innovative technology and effective human resource management in a modern and progressive organizational culture of meritocracy, maintaining high ethical and professional standards, while providing enhanced value to all our stakeholders, and contributing to society.

OBJECTIVES
To achieve sustained growth and profitability in all areas of business. To build and sustain a high performance culture, with a continuous improvement focus. To develop a customer-service oriented culture with special emphasis on customer care and convenience. To build an enabling environment, where employees are motivated to contribute to their full potential. To effectively manage and mitigate all kinds of risks inherent in the banking business. To maximize use of technology to ensure cost-effective operations, efficient management information system, enhanced delivery capability and high service standards. To manage the Bank's portfolio of businesses to achieve strong and sustainable shareholder returns and to continuously build shareholder value. To deliver timely solutions those best meet the customers¶ financial needs. To explore new avenues for growth and profitability. 5|Page

STRATEGIC PLANNING

To comprehensively plan for the future to ensure sustained growth and profitability. To facilitate alignment of the Vision, Mission, Corporate Objectives and Corporate Philosophy, 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.

BUSINESS ETHICS AND CONDUCT
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 a 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 customers¶ 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 6|Page

customers' confidential matters, merits the same care 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. 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.

REGULATORS OF ASKARI BANK The bank firmly believes in regulatory discipline and harmony of the corporate objectives with regulatory framework. The business methodologies are designed to ensure compliance with the directives of all the bank¶s regulators. COMMITMENT TO SOCIAL REPONSIBILTY The bank fully recognizes the corporate social responsibility and contributions to different areas of the social sector are aimed to help improve the quality of life in the Country.

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INSPIRING RELATIONSHIPS

INSPIRING CUSTOMER RELATIONSHIP
Knowing the customers and their needs is the key to the business success. Askari bank¶s products and services are as diverse as the market segments. Bank¶s client relationship with the managers are well equipped and well trained to provide the most efficient and personalized service to the customers. Askari Bank is proud of its pioneering role in providing the most modern and technologically advanced services to its 984,485 relationships.

INSPIRING EMPLOYEE RELATIONSHIP
The bank strongly believes that the interest of the Bank and the employees are inseparable. ACBL try to create a µwe¶ culture where there is mutual trust and respect for each other. The bank encourages ownership behavior so that everyone feels responsible for the performance and reputation of the Bank. The bank is committed to develop and enhance each employee¶s skills and capabilities through extensive in±house and external training programs and job rotations. In order to ensure meritocracy, the appraisal system is purely performance based.

INSPIRING TECHNOLOGICAL INNOVATION
Technology has played a pivotal role in meeting customer expectations, particularly with respect to speed and quality of service. The bank has fully automated transaction± processing systems for back±office support. The branch network is connected on±line real±time and its customers have access to off±site as well as on±site ATMs, all over Pakistan. The bank¶s phone banking service, Askari Tele Care, and internet banking facility allows customers to enjoy routine banking service from anywhere, anytime in the world. The bank also pioneered an e±commerce venture in Pakistan. Its mobile ATMs are the first in Pakistan. To further strengthen and enhance the technology platform, the Bank is in the process of replacing the existing technology with comprehensive state- of-the-art solutions. This initiative will greatly improve bank¶s product delivery and service abilities. 8|Page

INSPIRING ETHICAL VALUES
Integrity is the most valued standard in whatever one do. ACBL understands that the commitment to satisfy customer¶s needs that must be fulfilled within a professional and ethical framework. ACBL subscribes to a culture of high ethical standards, based on the development of right attitudes. The intrinsic values, which are the corner stones of the corporate behavior, are: Commitment Integrity Fairness Teamwork Service

INSPIRING THE INVESTOR¶S CONFIDENCE
ACBL believes that the bottom line of any business is creating shareholder value. To gain their trust and confidence, it believes in providing the investors timely, regular and reliable information on the activities, structure, financial situation, and performance.

AWARDS AND ACHIEVEMENTS
Askari Bank continues its success in competition. Over the years, ACBL has received several awards for the quality of its banking service to individuals and corporate. These include: Best Commercial Bank Consumer Choice award 2005 By The Consumers Association of Pakistan Best Retail Bank in Pakistan Award 2004 & 2005 By The Asian Banker Best Corporate Report 1st prize awarded for 2000, 2001, 2003 & 2004

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By Institute of Chartered Accountants of Pakistan (ICAP) and institute of Cost & Management of Accountants of Pakistan (ICMAP) Corporate Excellence Awards for 2002 & 2003 The Management Association of Pakistan (MAP) Best Corporate / Institutional Internet Bank in Pakistan Award for 2004 By Global Finance magazine Best Consumer Internet Bank in Pakistan Award for 2002, 2003 & 2004 By Global Finance magazine The Best Bank in Pakistan Award for 2001 & 2002 By Global Finance Magazine Best Presented Accounts Ranking prizes awarded from 1997 to 2002 By South Asian Federation of Accountants (SAFA) Best Presented Annual Accounts
Award for 2000, 2001and 2002

By the Institute of Chartered Accountants in Pakistan (ICAP), and the Institute of Cost and Management Accountants in Pakistan (ICAMP) Commercial Bank of the Year Award for 1994 & 96 By Asia money magazine The Best Consumer Banking Award 2006 Award for 2006 By the consumer Association of Pakistan The Best Retail Banking Award 2008 Award for 2008 By Pakistan Guarantee Export Corporation Ltd. The Best Corporate Report Award For the year 2008 By ICAP & ICMAP 10 | P a g e

Best Domestic Bank in Pakistan award for 1995by Euro money Over the years, Askari Bank has proved its strength as a leading banking sector entity, by achieving the following firsts in Pakistani Banking:
First Bank to offer on-line real-time banking on a country-wide basis. First Bank with a nation-wide ATM network. First Bank to offer Internet Banking Services First Bank to offer e-commerce solution

CREDIT RATING
Askari bank has following credit rating by Pakistan Credit Rating Agency (PACRA) Long term: Short term: AA A1+

AA represents very high credit quality. AA ratings denote a very low expectation of credit risk. Also show very strong position of timely payments A1+ shows obligations supported by the highest capacity for timely payments.

COMPETITORS
Banking industry is growing much fast. So Askari bank is facing a lot of competition in the market. There are following competitors: ABN Amro Bank al Falah (Pvt) Ltd Union Bank Ltd Soneri Bank Ltd Prime Commercial bank The bank of Punjab Bank Al-Habib Ltd My bank Ltd Silk Bank Ltd NIB Ltd

ORGANIZATIONAL STRUCTURE

Board of Directors 11 | P a g e

j j j j j j j j

Lt. Gen. Waseem Ahmed Ashraf Lt. Gen. (R) Zarrar Azim Mr. Shaharyar Ahmad Brig (R) Muhammad Shiraz Baig Brig (R) Asmat Ullah Khan Niazi Mr. Muhammad Najam Ali Mr. Muhammad Afzal Munif Mr. Tariq lqbal Khan

Chairman Chairman Executive Committee President & Chief Executive Director Director Director Director Director (NIT Nominee)

Company Secretary j Mr. Saleem Anwar

Audit Committee j j j Auditors j A.F.Ferguson & Co. Chartered Accountants Brig (R) Asmat Ullah Khan Niazi Brig (R) Muhammad Shiraz Baig Mr. Kashif Mateen Ansari Chairman Member Member

Legal Advisors j Rizvi, Isa, Afridi & Angell

Shariah advisor j Dr. Muhammad Tahir Mansoori

MANAGEMENT MAIN OFFICES

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Registered \Head Office AWT Plaza, the MALL P.O. BOX. NO: 1080 Rawalpindi: 46000 Pakistan. Tel: 92-51-9063000 Fax: 92-51-9272455 E-mail:Webmaster@Askaribank.com.pk Registrar\share transfer office THK Associate (PVT) Limited Ground Floor. State Life Building 3 Dr.Ziauddin Ahmad Road, Karachi 75530 P.O. box 8533, Karachi.

Wholesale Bank Branch, Bahrain

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ORGANOGRAM

BOARD OF DIRECTORS

Executive Committee

Internal Audit

President and Chief Executive

Corp. Banking & Fin. Inst. Group

Operating and credit group

Regions

Retail Banking Group

Credit Cards

International

Credit

Rawalpind i/Islamaba d North

Asset Products

Planning and Corporate affairs Human Resource

Treasury

Electronic Technology Systems and Operations

Investment products

Corporate and Merchant Banking

Lahore

Finance

Data Reporting

East

Legal Affairs

South I

South II

West

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HIERARCHY AT THE TOWNSHIP BRANCH

BRANCH MANAGER

FOREIGN EXCHANGE\TRA DE DEPT OPERATIONS MANAGER CLEARING

CREDIT DEPT

CASH DEPARTMENT NT

CUSTOME R SERVICE

INCHARGE GENERAL

ACCOUNT OPENING

REMITTA NCES

BANKING

NON-CLERICAL STAFF

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FUNCTIONS OF ACBL
There are following functions that Askari Bank performs:

Acceptance of deposits Advancing of loans Agency services General utility services Investment Overdraft facility Transfer of money Creation of credit Facilitates foreign trade Executor of the standing orders Acting as a trust

PRODUCTS &SERVICES OF ACBL
A product ACBL includes all those services which customer normally required for effectively managing his business. ACBL offers the following financial services to its customers.

Mahana Bachat Account Roshan Mustaqbil Deposit Deposit Multiplier Account Personal Finance Islamic banking services Agricultural finance solution Corporate & investment banking Mortgage Finance Debit/Visa Card International banking services

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ASKARI MAHANA BACHAT ACCOUNT: (1 + 3 YEAR TENURE )  Multiples of 25,000 should be deposited.  Earn Mark up of 11.1% p.a on investment of Rs.100, 000 for every month.  Earn mark up of 12% p.a on investment of every Rs. 100,000/- for every month. Askari Mahana Bachat Account is a Term Deposit facility available to individual customer with the option of 1 and 3 Years tenure. The deposits are ROSHAN MUSTAQBIL ACCOUNT Askari Bank has launched the Askari Roshan Mustaqbil Deposit, a saving plan specially designed for individual investors who wish to invest now for a regular return at a later stage while keeping their principal amount. With Askari Roshan Mustaqbil Deposit, you can double your investment in a time period of ten years. Invest now in the form of monthly deposits for five years and get paid back the same amount for the next five years while receiving your principal amount in full at the end of the tenure. DEPOSIT MULTIPLIER ACCOUNT 

Value of initial investment of Rs. 100,000/- will increase to Rs. 265,000/- at maturity´ This account is for individual investors whose purpose is long term savings with high returns. With a tenure of 10 Years and a competitive rate of return on maturity this account is ideal for investors who wish to start saving for their future today. Personal Finance One can avail unlimited opportunities through Askari Bank¶s Personal Finance. With unmatched financing features in terms of loan amount, payback period and most affordable monthly installments, Askari Bank¶s Personal Finance makes sure that you get the most out of your loan.

Islamic Banking services 17 | P a g e

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. There are following Islamic banking services: 

Islamic Corporate Banking  Islamic Investment Banking  Islamic Trade Finance  Islamic General Banking  Islamic Consumer Banking Agricultural Finance Solutions 

Kissan Ever Green Finance  Kissan Tractor Finance  Kissan Transport Finance  Kissan Aabpashi Finance Kissan ever green Finance Askari Bank has launched this program with the sole motive to provide dignity, prosperity and freedom to the tiller of the land. Corporate & investment Banking  Corporate Banking Division  Term Loans  Fund transfers/Remittances 
Project Finance

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PRODUCTS OF ACBL
There are following features of this account: DEMAND DEPOSIT  Current Account  Call Deposit Receipt TIME DEPOSIT     PLS saving Deposit Askari special Deposit account Askari FISDA Account Askari FAIDA Account Finance EXPORT RELATED FINANCE Pre-shipment Finance Post shipment Finance Against Packing Credit MISCELLANEOUS PRODUCTS Demand draft Telegraphic transfer Pay order LOCKERS    Small Size Lockers Medium Size Lockers Large size lockers Online banking Internet banking Travelers cheque Foreign TT Askari master credit card Fund Based Loan         Running Finance Cash Finance Term Finance Staff Finance Askari Personal Finance Trade Finance Askari debit card IMPORT RELATED FINANCE Payment Against document Finance Against imported Merchandise Finance against Trust receipt 

Value Plus Saving Deposit  Notice Deposit  Askari Advantage  Term Deposit

Non-Fund Based Loan Letter of Credit (LC) Letter of Guarantee (LG)

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GENERAL BANKING DEPARTMENT

Account opening Remittance Department Cash Department Clearing Department

PRIVILEGE BANKING DEPARTMENT

Online banking Lockers

FOREIGN EXCHANGE DEPARTMENT
Import Department Export Department Foreign Currency Department

CREDIT DEPARTMENT ACCOUNTS DEPARTMENT IT DEPARTMENT

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ACCOUNT OPENING DEPARTMENT FUNCTIONS  Providing account opening form according to the customer's requirements, 
Guide the customer about the requirements of the account opening and form filling  Check the forms whether they are correctly completed or not  Preparing checklist  Stamping on the form  Maintaining account opening register  Pasting of forms in register after release from general banking in charge  Issuance of cheque books  Issuance of accounts maintenance certificate  Closure of account  Verification of signature in case of cheque presented before releasing of account opening from SS card is not yet scanned

TYPES OF ACCOUNTS
The customer can open his bank account in order to deposit or withdraw amount. The bank offers different types of accounts which are as follow:
Current account

Saving account Askari special deposit account (ASDA) Basic banking account (BBA)

ACCOUNT OF GENERAL CUSTOMERS
Minor account Illiterate person account Individual account Joint Account

ACCOUNTS OF SPECIAL CUSTOMER
Sole Proprietorship Account

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Partnership Account Limited Company¶s Account Agent¶s Account Joint Stock Company Account Agency Account Clubs, Societies /Association Accounts Trusts Local Bodies Etc. Executor¶s & Administrator¶s Account

CURRENT ACCOUNT (CD)
The current account is also called ³CD´ account and the Code used for this account is ³0101´.Current account can be opened by an individual, jointly, and also by the company. The initial deposit in order to open this account is Rs.5000.The account holder does not bear any loss and no profit is given on this account. There are three options which are given to customer like
Any one: Any one of the account holder can made transaction Jointly:

All the account holders need to be there for making transaction Either or survivor: If one person died than the other can made transaction

In case of company partnership account, if one partner died than the partnership is dissolved, than the account was operate as per court order and for this new resolution was passed by the court.

SAVING ACCOUNT
The saving account is also called ³PLS´ account. The saving account can also be opened individually, jointly, and by company but mostly this account was opened by individual and jointly. This account can be opened with the minimum deposit of Rs.10, 000. Profit was given on this account is semiannually and the profit rate is 5%. The profit was automatically adjusted by the electronic data division (EDD) on the amount of deposit. The code which is used for this account is ³0110´.

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The things which are required in order to open this account are 
Computerized national identity card (CNIC) 

Letter from the company where the person is currently working  In case of thumb sign also require passport size photographs  Source of income  Number of dependents  National tax number (NTN) And other general information, effect all these information is required in all the accounts

The state bank of Pakistan gives facility to different people by giving different feature in current account like introduce BASIC BANKING ACCOUNT ³BBA´.

BASIC BANKING ACCOUNT (BBA) The basic banking account is also called ³BBA´ account and the code which is used for this account is ³01021´. This account can be opened individually or jointly. This account was mostly opened by the
Pensioner

Lower income people House wife Students Salaried person

Maximum two deposits and two withdraw can be made by the account holder in a month. The bank does not deduct any extra charges even if the amount is less than Rs.5000, but if the transaction exceeds its limit than the bank charge Rs.25 for every transaction. This account can be opened with the minimum deposit of Rs.1000. No profit was given on this account.

ASKARI SPECIAL DEPOSIT ACCOUNT (ASDA) The askari special deposit account is also called ³ASDA´. This account can also be opened individually, jointly, and by the company. The code which is used

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account is for this account is ³01165´.The account was offered specially by the bank by its name and the features¶ that it maintains which are:  The account holder can only share the profit not the loss.  There is no limit on the transactions  The profit was given at the rate of 5% on monthly basis.  It can be opened with minimum deposit of Rs.10, 000 but profit was given on the amount exceeding Rs.50, 000.

ACCOUNT OPENING REQUIREMENTS
FOR PROPRETORY COMPANY 
copy of CNIC  original letter head and rubber stamp of proprietor  NTN no

FOR PARTNERSHIP COMPANY  copy of CNIC of all partners  Resolution on original letter head of company & rubber stamp of partner on which operation of account clearly mention.  Partnership deed dully attested by company registrar/notary public  Registration certificate if required  Introduction PUBLIC & PRIVATE COMPANY  Copy of CNIC of all directors & authorized signatories attested by company Sectary  Resolution of board of directors on original letter head of company with rubber stamp & embossed common seal of company in which operation of account clearly mentioned.  Memorandum & Articles Of Association attested by SECP  FORM 29 attested by SECP  certificate of incorporation/ commencement of business attested by SECP  List of directors on company¶s letter head  Company embossed common seal on AOF 24 | P a g e

ACCOUNT OPENING PROCEDURE
The general procedure of account opening is same but the document required to open the account is different according to type of account. Information at the time of opening of account, the bank officer must assure that customer has the following characteristics:  The customer must have the age of majority, it means he must be the age of 18 according to law.  The customer must be of sound mind.  The customer must not be insolvent and bankrupt.  The customer must not be debarred under any law from entering into any contract.  Also the bank officer must take proper information from the customer about his means, line and place of business. Account Opening Form (AOF) The bank officer must assure that the customer fills each and every column of account opening form correctly with all necessary details. The specific information about the business or occupation of the customer is recorded in the form. Introduction of Accounts It is a most important column of AOF. Without the proper introduction, the new account cannot be opened. The bank officer consider following precaution in this respect.  The introducer should come with the prospective customer to the bank so there will be no doubt about the identity of customer.  If the introducer does not come then bank officer must take extreme care about his signature verification.  Introducer having doubtful dealing with the bank should be discreetly declined.  Current account holders can be introducer of both types of deposits but saving bank account holder cannot be the introducer of current 25 | P a g e

account holder. But in exceptional cases they can introduce when saving account holder maintain substantial balance and they are old and operative accounts.  The staff member can become introducer if they personally known to the prospective customer. NATIONAL IDENTITY CARD The bank officer check that number of national identity card is correctly recorded in the AOF and a copy of national identity card is kept in record by the bank. SPECIMEN SIGNATURE CARD (SS CARD) The bank officer takes signature of customer on AOF and specimen signature card. Latterly, this card is scanned in the computer and whenever customer makes any transaction in this account then his signature is verified by it. UNDERTAKING FORMS There is different type of undertaking which are taken by the bank at the time of opening the account, two of them are: y y Sign differ form Vernacular form

SIGN DIFFER FORM This form was filled by the client at the time of opening the account, if the initial which was made on the computerized identity card is different from the one which is made on the account opening form. This is actually the declaration which is given by the client that the client used different signature for operating account from the one that was made on CNIC.

VERNACULAR FORM This form was filled by the customer, if the client used the thumb impression in order to operate account and also in case if the initials was shaky, mean there is slightly difference every time in signature. This is also the sort of undertaking which was taken by the bank in order to protect itself. It was clearly mentioned on this that in such cases if any fraud occurs than banker is not responsible for this.

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LETTER OF THANKS
After the opening of account, the bank sends this letter to the account holder address. There are different purpose of this letter, some of them are  To create goodwill  To make sure that all the problems are solved efficiently and effectively the most basic purpose is to verify the account holder address, the bank send this letter to the account holder address and if the result was not accurate the letter was again received by the bank and then again verify the address from the account holder and again send till that the account holder not receive that letter. The bank is not issued the cheque book till the address was not verified.

HIGH RISK ACCOUNT
There are some accounts which are declared by the bank as high risk account, mean in this account there are more chances of fraud etc. These accounts are needed to be monitored very closely. High risk account includes:

Lawyers account Real estate account Politicians Staff of askari bank Staff of money exchanger Beaurocates

ISSUANCE OF CHEQUE BOOK
The customer fills the ³Form A´ for issuance of cheque books along with the AOF. The requisition slip is duly signed then bank officer enters cheque book series on it. The officer enters the issuance of cheque book in register. To minimize the misappropriation bank stamps the account number on each leaf of cheque book. Bank Charges Rs.2 per leaf. ACBL issue 25 t0 100 leaves cheque books. If cheque book is lost then customer fill the ³From B´ for resonance of cheque book. Bank Charge Rs.100 for resonance.

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ACCOUNTS NOT IN USE INOPERATIVE ACCOUNTS Accounts which are not in use for 1 year are considered as inoperative accounts DORMANT ACCOUNTS Accounts which are not in use for 6 months are considered as dormant accounts

INACTIVE ACCOUNT
If there is no transaction in any account within 6 months then account will become inactive. Now the account will be active only by crediting some amount.

CLOSURE OF ACCOUNT
In order to close the account, the account holder needs to fulfill the form by the name of ³closure of account´. With this form the client also need to give back his cheque book that he holds due to his account. After collecting the cheque book and verifying all the things, the bank cancel the cheque numbers and close the customer account on his request. The bank will charge Rs.100 for closure and remaining balance in the applicant¶s account will be paid to account holder.

REMITTANCE DEPARTMENT
The remittance department deals with the transfer of money from one place to another. This department deals with the local currency transfer only. ACBL provides these services to both customers & non-customers

Functions 
Managing issuance of demand drafts  Pay orders  Travelers cheque  Mail transfer  Managing Call deposit receipts CDR  Intercity clearing  Outward bills for collection (OBC)  Credit card advance  Cancellation of pay order & demand draft

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INSTRUMENTS OF THE REMITTANCES DEPARTMENTS  DEMAND DRAFT

A demand draft is an instrument, which is drawn by one bank upon another bank for a specific sum of money payable on demand. It is made by the bank and given to the purchaser against cash or cheque. If two banks are involved, then one bank sends a DD to another bank. But in customer - Bank case the customer sends his DD to the receiver. Charges of DD are taken from the system according to the amount. Customer¶s a/c«««««««««..Dr DD during day««««««««««««.Cr DD during day««««««««««Dr M.O««««««««««««««««..Cr 
PAY ORDER

Pay order issued from one branch only be payable from the same branch. It is normally issued for payment in the same city. 

Fill the application form.  Issue pay order after recovering cheques.  Do necessary vouchering.  Make entry in PO issue register.  All pay order shall be crossed" payees account only". AMOUNT Up to 1million Above 1million PO ISSUE Entries in the uni system: Customer¶s a/c«««««««««Dr PO during day««««««««««Cr At day end: 29 | P a g e CHARGES Rs.65 (for admission fee Rs.25) Nil

PO during day«««««««««..Dr B/P««««««««««««««...Cr After presentation: B/P««««««««««««««..Dr M.O««««««««««««««..Cr 

INTERCITY CLEARING
In intercity clearing, clearing between cities are done. For example in Karachi, branch of Askari bank exists, ASKARI branch Lahore sends the cheque through NIFT to main branch which will further sends to Askari bank Karachi branch for clearing and at the same process they send back the advice. If it returns, Rs.65 will be charged. 

OUTWARD BILLS FOR COLLECTION
If in any city, Askari branch doesn¶t exist, then we stamp µOBC¶ and directly send it to that bank¶s branch for clearing. 

CALL DEPOST RECEIPT
CDRs are used for the purpose of tendor notice, zakat deduction, taking part in the bidding, for getting Govt. tendor in favor of customer µname. In this process, payment is secured and if approved then lodged in clearing. For participating in the bidding process, deposit Rs. 5,000 and the following entries will be passed: Customer¶s A/c««««««««««Dr CDR«««««««««««««««...Cr On approval of contractor¶ request CDR««««««««««««««..Dr M.O««««««««««««««««.Cr On rejection of CDR CDR«««««««««««««««Dr Customer¶s A/c«««««««««««.Cr

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TRAVELERS CHEQUES Askari traveler¶s cheques are a valuable financial service of ACBL. They are issued to settle all your business transaction and customer can travel without any pocket load. It is safest substitute for cash, easily refundable in case of theft and loss. Askari bank issues the traveler cheques denomination of Rs. 10,000. Askari traveler cheques are issued against cash cheque or debit to customer account. It is issued on purchase agreement form and 3 copies are prepared. One is sent to head office, the second one for record of bank and third one for the custom. No service charges are taken on it. Any branch of ACBL can make payment of Askari traveler cheque. It can be drawn by another bank through collection. It can be encased form the issuing branch but not on issuing date. If these cheques are enchased within seven days then customer will receive 0.2% commission.

CASH DEPARTMENT
All physical movement of cash in the bank is made through the cash department. Normally cash department performs following functions:  Receipt  Payments  Act according to any standing instructions  Transfer of funds from one account to another  Handling of ATM  Verification of signatures  Posting  Handling of prize bonds.

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CLEARING DEPARTMENT
Bank collects payment of cheques on behalf of its customer within city.

FUNCTIONS  Accepting transfer delivery and clearing cheques.  Arranging receipt of cheques payment.  Posting of clearing cheques in the system  Maintaining register for inward and outward clearing cheques  Prepare the return summary  Charges for returns  Amount collections on drawn checks for members and sub-members of local clearing house INWARD CLEARING Cheques and other negotiable instruments (PO, CDR, dividend warrants etc.) drawn on Askari Bank township branch, lhr, sent by other banks, constitute the inward clearing of ACBL. Other points to remember in inward clearing:  We are paying amount of cheque  Customer¶s Account will be debited  In case of return charges will be Rs. 250 After having all the stamps and dates of Cheques confirmed, the following entries will be passed in the system: Customer account««««.Dr Suspense clearing a/c «««««««..Cr At day end when returns are received: Suspense clearing a/c«««.. «««..Dr M.O««««««««««««««««. Cr

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OUTWARD CLEARING When Cheques are drawn upon other banks of the same city (as Lahore) are presented in Askari Bank to deposit them in the respective payee¶s accounts, these instruments are lodged in outward clearing of Askari Bank.

Other points to remember in outward clearing:  We receive payment of cheque  Customer¶ account will be credited  In case of return charges will be Rs. 50. Return memo will be attached with cheque.

The following entries will be passed in the system for outward clearing: Suspense clearing A/c«««««« Dr Customer A/c«««««««««««.. Cr At day end: M.O A/c««««««««««. Dr Suspense clearing A/c«««««««« Cr

PREVILDGE BANKING DEPARTMENT ONLINE BANKING
Online banking means that if a person is sitting in one city like Lahore can easily transfer/deposit and withdraw his fund from any other branch of Askari Bank in any city or location. For this purpose the person needs to complete the online funds transfer slip, which includes the information of that person and the account to which the transaction is made. If the funds are transfer with in a city no extra charges are made but in case of out of city some charges are applied like Case Cash deposit Cash withdraw Funds transfer Charges (Rs.) 320 120 185 33 | P a g e

LOCKERS
Askari bank offers locker facility to its customers. The application form was filled by the customer as well as specimen signature card (S.S) need to be filled. While fulfilling the form, there are three options regarding the operating of locker, these are  Anyone can operate  Jointly  Either or survivor In order to get a locker the bank gives two options
On Rent

Purchase Rent If the person wants to get an account on rent the security fees which need to be deposited is Rs.1175 which is refundable. The monthly charges for different lockers are mentioned below

Size Small Medium Large

charges (Rs.) 1300 1800 3200

On rent the entry which is passed by the bank is: Customer¶s A/c for rent««««««««««Dr. Customer account key deposit«««««««Dr. Key deposit«««««««««««««««Cr. Rent««««««««««««««««««Cr. PURCHASE If the person want to purchase the locker than the annual charges for different lockers are mentioned below Size Small Medium Large charges (Rs.) 25,000 30,000 45,000 34 | P a g e

On purchase the entry passed by the bank is: Customer¶s A/c«««««««««««..........Dr. Key deposit«««««««««««««..Cr.

FOREIGN EXCHANGE/FOREIGN TRADE DEPARTMENT
Foreign Exchange Department works like the general bank departments with the difference that it deals in foreign currency. FUNCTIONS Foreign remittances. Foreign currency accounts Non-resident accounts maintenance Foreign bills for collection(FBC) Foreign telegraphic transfer(FDD)

FOREIGN CURRENCY ACCOUNT A depositor can open account in US dollar, pond, Japanese Yen and Euro with nominated branches. For opening of account a form is provided to the person/party, introduction of the new account holder or by the officer of the bank. Procedure of opening foreign currency accounts is same as other accounts. No zakat is deducted on these accounts, no income tax deductions; no wealth tax deduction will be there. FOREIGN REMITTANCE The procedure of foreign remittance is same as in local remittance. The only difference is that it deals in foreign currency. Most of the times, following modes are used in foreign remittance. Foreign Demand Draft (FDD) Foreign Telegraph Transfer (FTT) FOREIGN DEMAND DRAFT

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When bank receive foreign demand draft then bank will debit to unsupervised account of the customer and credit to treasury bank because all the foreign currency accounts are maintained in treasury, the bank will send debit advice to treasury. In return, treasury will send the credit advice and branch officer will debit the treasury and credit to customer account. FOREIGN TELEGRAPH TRANSFER When a customer wants to transfer funds to foreign country through telegraph transfer then he will deposit the amount. LETTER OF CREDIT (L/C) Letter of credit is a commitment by the buyer bank to make the payment to the exporter bank that it assumes the responsibility of payment if the goods are according to terms & conditions. PARTIES INVOLVED Importer/buyer/opener Exporter/seller/beneficiary Importer bank/ issuing banks Exporter bank/advising bank/negotiating bank TYPES OF L/C  IRREVOCABLE L/C

Under this L/C, amendments or cancellation of lc can be done with the mutual consent of all the parties involved.  CONFIRMED L/C

A letter which is confirmed by the exporter bank, where it takes the liability of making the payment without consulting the importer bank.  SIGHT L/C

In this type of L/C, on spot payment is made as the importer bank receives the bill of lading from the exporter.  USANCE L/C

In this L/C, time period is involved. The importer bank will make payment at defined days after the shipment. The shipment period may be 60, 90 or 120 days.

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PROCEDURE FOR OPENING OF L/C Customer request for opening L/C

Request letter + insurance + Performa invoice+IB8+certificate of import of goods

Bank-risk analysis & credit history of importer

Approval by the bank/area/region/H.O (Within their limits)

RCAD + CFTU RCAD (Regional credit administration department) It feeds the limit.

CFTU (centralized foreign trade unit) It controls the transmission of L/C. Calculate margin, commission and mark up on L/C.

L/C LODGEMENT L/C is registered in the PAD. Customer¶s liability«««««««««Dr. To bank¶s liability«««««««««««.Cr. PERFORMA INVOICE It is the document which is sent by the exporter to the importer about the description of the goods like quality, quantity and price of goods.

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INDENT FORM The agent (for e.g., USA parent company and its agent in PAKISTAN) authorizes on behalf of its parent company that the goods have been received. IB8 It¶s the application of irrevocable l/c. it¶s the legal document which contains terms & conditions of the opening of L/C. It contains the details of country of origin. Amount, date of initiation, date of expiry and the name of the insurance company. Bath parties signed on it. COUTRY OF ORIGIN It contains the information about who has manufactured the goods, country of manufacture. It tells about in which country goods are ready for sale. I-FORM/IMPORT FORM It¶s the statistical form which will be submitted to SBP by the bank about the imported goods. CREDIT REPORT The report required by the importer from the exporter for 1.5m or above transaction. SWIFT (society for worldwide interbank financial telecommunication) Its software that generates messages which is send to the exporter. It¶s a network that exchanges messages in a more secure way and not hold accounts for its customers nor facilitate fund transfer but sends payment orders between banks and other financial institution.

HS CODE (Harmonized system code) Different codes for every requirement of L/C which is worldwide used and accepted.

CREDIT LIMIT The limit which is set by the 38 | P a g e

bank¶s policy Restriction by the SBP on foreign currency.

TRANSPORTATION DOCUMENT There are four types of documents.
Bill of lading Airway bill Truck receipt Rail receipt

FORMAT OF L/C Instruction Mode of transmission Name & address of applicant and beneficiary Total amount with destination Advising bank Partial shipment allowed/ not allowed Transshipment allowed/ not allowed  Latest shipment date and expiry date

Place of shipment Destination Tenor Description of goods (ref. Performa invoice/ indent form) Documents required Commercial invoice Certifying country of origin   Mode of transmission by sea/air

Marine insurance company Cover note, date of expiry

Packing list required Any additional condition HS code  Time allowed for preparation of documents 39 | P a g e

Instructions regarding bank charges by opener/beneficiary Signature of customer % margin Approval of manager Account no. of customer/ phone no. Signature of witnesses Reimbursing bank/ negotiating bank/advising bank Details of charges Signature at the start and at the end ENTERIES IN LODGEMENT After the completion of L/C, The following entries will be passed. Bank¶s liability«««««««««««..Dr. To customer liability«««««««««..Cr.

CREDIT DEPARTMENT
Credit department performs two basic functions:
Credit Administration Credit Appraisal

CREDIT ADMINISTRATION The credit department takes the decision about credit sanction after the risk analysis and collects the extended loans at the maturity of loan.

CREDIT APPRAISAL The credit department reviews their credit policies and all credit proposals. Also credit officer report all the data of his activities to credit division Karachi. Credit division reviews their policies after every six month in the light of this data and also sends the data to State Bank of Pakistan (SBP) to review its policies. Askari Commercial Bank provides two types of loan that are:
Funded Facility Non Funded Facility

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A. FUNDED FACILITY
In this type of finance, bank actually deploys its funds and mark up is charged on it. ACBL provide the following types of fund-based loan. Running finance Cash finance Term finance Staff finance Trade finance Finance against packing credit Post Shipment Finances I.

RUNNING FINANCE

It is used to meet the running requirement of the capital. It¶s the short term finance normally used for a period 1 year in which payment is made at the end of the period. In running finance, Bank transfers a particular amount of loan in customer¶s account from where he withdraws the amount as needed. Markup is charged only on the amount withdrawn not on the whole amount of loan.R.F is used for the purpose of A/R, purchase of raw material, Salaries payable, utility bills payable, Administration expenses, Maintenance, Packaging etc.

II.

CASH FINANCE

Cash finance is like a running finance but it is extended against the pledged security like inventory or stock and 25% cash margin is also charged. The pledged stock is also insured from any insurance company and the customer also pays all the insurance and any other security expenses. Mark up is charged over the full loan amount and for whole time period of maturity.

III.

TERM FINANCE

The finance in which Mark up is charged on the overall amount of loan whether utilized or not. It¶s a long term finance normally used for a period of 35yrs.Personal guarantee is required in it. Loan will be issued to the person having 25,000 or above salary. Installment basis pay back.  CATEGORIES OF TERM FINANCE

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Financing  Leasing

FINANCING  Title/ownership with the customer  Bank will pay the amount to customer and customer will purchase the machinery

LEASING  Ownership/ title with the bank. 
Bank will purchase the car  20% markup charged on the principle amount.  Bank-customer account no. required.  Tax benefit to customer

IV.

STAFF FINANCE

This facility is provided for the staff of ACBL. The purpose is welfare of the employees. SBP specify the credit limit for the staff of bank. The mark up rate is less than commercial rate. Trade finance is provided for short time period so it is most suitable for bank. These generate more income for the bank due to greater revolution of money. V.

TRADE FINANCE
Import related finance Export related finance

Trade finance is of money. Trade finances are of two types: 

IMPORT RELATED FINANCE

There are three types of import related finance

Payment against document Finance against imported merchandize Finance against trust receipt

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PAYMENT AGAINST DOCUMENT (PAD)

When the bank receives bill of lading and other commercial document from the exporter then bank will pay to reimbursing bank of exporter. If the customer will not receive the document within 7 days then bank issue a letter to the importer and now letter of credit (LC) is converted into absolute liability. The bank gives the credit period to the importer to make the payment which is 90 or 120 days. And now bank will charge the mark up and import service charges from the importer. The reimbursing bank will send all the documents to ACBL and not directly to the importer. 
FINANCE AGAINST IMPORTED MERCHANDIZE (FIM)

When the importer has no funds to import merchandize then he request the bank letter of credit along with the finance. In PDA the bank is only responsible to make payment but in FIM bank makes payment from its own funds these types of finances have specified rate of mark up and time period. All the value-added expenses like excise duty, port charges etc are charged by the customer as cash security margin.  Finance Against Packing Credit

Finance against packing credit is extended for the preparation of goods when the exporter has confirmed letter of credit from the importer. To improve the economy of Pakistan and to improve the export, SBP introduce special export finance schemes to the exporter at cheaper mark up rate and also offer export rebates. It is of two types: 

Pre Shipment Finance Part I

Pre shipment finance part I is extended for one year. Funds of SBP are involved in this finance. When this finance is extended then bank will debit the SBP account and credit to customer account. Rate of mark up is 2% from which 1 are for SBP and the bank charges 1%.  Pre Shipment Finance Part 2

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This facility is for existing exporter. In this way exporter can avail half of the limit of total export business transacted last year. If the credit history of exporter is satisfactory then this credit limit can be increased. 

Post Shipment Finances

This loan facility is provided to exporter after the shipment. Post shipment finance is for different purposes like when the exporter does not have finance to the payment of credit raw material.

B. NON-FUNDED FACILITY
In this finance, no cash is involved. It is only a commitment. It is an obligation of bank and if the customer declares default then bank is liable to make payment. The bank charges commission in these finances in respect of markup. This facility is provided against the cash margin and mortgage of property because bank has risk in this type of finances. Letter Of Guarantee (LG) Letter Of Credit (LC) 

LETTER OF GUARANTEE (LG)
Letter of guarantee is contingency liabilities of bank because the funds are not actually involved in it. So they are classified as off balance sheet items. Letter of guaranty is mostly given in case of contract. 25% cash margin is charged and also some collateral is taken. Three beneficiaries of this non-fund based finance are:    j Bid Bound Government Financial Institutions Others

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When the contractor has no funds for the bid of contract then he requests the bank to issue the guarantee letter. This type of guarantee is called bid bounds guarantee and now contractor will quote the rate in tender against this guarantee.

j Advance Payment Guarantee If the bid is accepted and beneficiary want to make the advance payment to the contractor because the contractor is away the contract and beneficiary requires guarantee of bank from the contractor. If bank gives the guarantee of contractor for advance payment then it is called advance payment guarantee. The contractor is adjusted this liability by the running bill.

j Performance Bound When the bid is accepted then bank will give guarantee that contractor will perform the task assigned within the specific period of time.

j Maintenance Bound Guarantee This guarantee is issued for the maintenance of work performed by the contractor, so it is called maintenance bound guarantee.

j Shipping Guarantee This type of guarantee is very rare and issued against 100% cash margin. When the shipment is at port but has not any document then bank issue guarantee in favor of Shipment Company only for 2 days.

j Other Guarantee If the bank issue any guarantee other than above likes to cove the credit sale, then it is classified as other guarantee.

ACCOUNTS DEPARTMENT ACCOUNTS OFFICER: MR. BARAK ULLAH FUNCTIONS
Daily activity checking 45 | P a g e

Physical checking of cheques and deposit slips Reconciliation of cheques with ledger Preparation of statement of affairs Weekly schedule program Budget

IT DEPARTMENT INCHARGE OFFICER: MR. BURHAN AHMED FUNCTIONS
Managing day to day cash transaction in computer Maintaining customers¶ accounts in computer Receiving all mails from Head Office Fax Keeping ATM in working condition Printing daily reports Receiving IBCA

DETAIL DESCRIPTION OF THE SKILLS ACQUIRED DURING INTERNSHIP
In Askari Bank, working as an internee, I learn much which make me confident to work in any other place as a professional. I started with the accounts department. Mr. Barak Ullah was the in charge officer. He guided me about the functions performed in accounts. DEPARTMENT NAME: ACCOUNTS I learnt about how to differentiate among cheques. He assigned me the duty of sorting out of all types of cheques in descending order. I made separate head of 46 | P a g e

current deposits (CDR), saving account (PLS), Askari Special account (ASDA), basic banking account (BBA), Value Plus and Foreign Currency (FCY) according to their account codes and then arranged them in descending order. He gave me an M.O (Main Office) sheet that includes all entries related to head office or inter branch transfer (IBT). All amounts in a specific ledger of specific account should be known to accounts in charge. Some amounts in transfer section relates to IBT so they are checked in M.O sheet. Account codes are as follows: Current A/c Saving A/c BBA A/c ASDA Value Plus FCY 01010 01100 01021 01165 01032 0213

Example ACCOUNT NUMBER: 0056-01-165-0001-3 0056 01 165 0001 = = = = Branch Code Currency Code Asda Account Account Number of the Asda Account Holder

There are three modes of posting in ledger balance MODES OF POSTING    Cash Clearing Transfer

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Cash includes ATM entries and cheques in cash payments. Clearing includes cheques that branch received from NIFT. Transfer includes transfer of amount from one branch to another or inters branch transfer. ACCCOUNT OPENING DEPARTMENT In the Account Opening Department, MR. ZAFEER KAZMI was the in charge. Firstly, I have gone through different types of the accounts and the operation of different accounts. I have opened accounts of so many people myself. There are different requirements for different account. I perform following activities:  Providing account opening form according to the customer¶s requirements (single, joint, partnership etc)  Guide the customer about the requirements of the account opening and form filling,  Check the forms whether they are correctly completed or not,  Preparing checklist and Stamping on the form,  Maintaining account opening register,  To get the Verification of signature in case of cheque presented before releasing of account opening from SS card is not yet scanned.

REMITTANCE SECTION
This section deals with the transfer of money from one branch to another. Nearly six to ten draft issued daily from this department. Here I knew how the amount transfers and what the procedure is. I helped the supervisor in following activities:  Collection of remittances forms  Guiding the customers  Filling the forms.  I was not allowed to do the signatures for final clearance of the instruments.  I was also shown the online transfer of credit from one account to another account

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REMITTANCE FORM CONTAINS THE FOLLOWING INFORMATION  Date  Amount of PO/DD both in words and figures  Name of beneficiary  Name of city where this PO/DD will be issued and payable  Signature and address of applicant

In the remittance section I learn how to issue Demand draft and Pay orders. DEMAND DRAFT DD is a written order given by the branch of the bank on behalf of the customer to other branch of the same bank to pay the certain amount to the customer. It is issued outside the local city. PROCEDURE OF ISSUANCE OF DD A printed application form is provided for filling in completely and signing by the applicant. After depositing an amount of draft and commission of the bank, duly completed and signed by two authorized officers, then it is handed over the applicant and credit order is dispatched to drawee branch.

CANCELLATION OF DD 
The customer gives the written application for cancellation along with original demand draft. The bank as cancellation charges Rs. 100.  Cheque the DD in by drawee branch either unpaid or duplicate has been issued.  The bank officer verifies the signature of applicant. Cancellation of DD is recorded in DD issue register.  only principle amount will be refunded  If DD is through cash then cash debit voucher is prepared. PAY ORDER

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For this kind of remittance the payer must have the account in the issuing bank. Pay order are more liquid as compared to cheques because cheques may be dishonored while PO can¶t be dishonored. It is issued within the city.

PROCEDURE FOR ISSUANCE The party who requires a pay order will get a printed application from the bank. He will fill it and deposits the amount and commission

CLEARING SECTION
In Askari bank Mr. Burhan Niaz was in charge of that section. I learn following activities while working in that section. When cheque or other instrument is drawn on Askari Bank which is of the other bank, it comes in the clearing department. Points to remember while checking a cheque for clearing:  Date  Amount in words & Figure  Clearing stamp with today¶s date  Payee¶s account credited stamp 
Within city cheque

REASONS FOR REJECTING A CHEQUE The following can be the reasons for returning a cheque: 1) Effects not yet clear: please present again. 2) Not arrange for. 3) Payee¶s endorsement required. 4) Payee¶s endorsement irregular. 5) Refer to drawer. 6) Drawer¶s signature differs. 7) Payee¶s endorsement requires bank¶s guarantee. 8) Alternation requires full signature 9) Cheque is post-dated/stale/ mutilate.(wear and tear) 10) Amount in words and figure differs. 50 | P a g e

11) Cross cheque must be presented through a bank. 12) Payment stops by the drawer. 13) Payees separate discharge to the bank required. 14) Payees discharge on revenue stamps requires. 15) Not drawn on us. 16) Account close. 17) Insufficient balance CLEARING STAMPS y Clearing stamp

It has two parts one is crossing part and other is clearing part Crossing part shows that cheque is the ownership of bank. Clearing part shows that everything is clear and bank has collected payment on behalf of customer y Payee¶s A/c Credited

This stamp will be stamped on individuals and companies accounts only but if cheque is in the favor of some bank like Askari bank then stamp will be of ³cash received´. I entered the amount, account no. and Drawer¶s bank in Outward return register and to get the signatures of the customer at the time he collects his cheque from the bank.

CUSTOMER DEALING SECTION
In customer dealing section, my duty was to help in issuing cheque book, ATM cards, lockers, bank statements and TDR to the customer.

CHEQUE BOOK PROCEDURE
The cheque book was issued after the opening of account on the request of customer. The request for cheque book goes to Karachi office after that they issue that book by the name and account number of the account holder. This process almost takes 3 to 4 working days. The request for the cheque book was uploaded online by the bank on NATIONAL INSTITUTIONAL FACILITATION TECHNOLOGIES (NIFT). Procedure of issuing check book is as follows:  Form A required 51 | P a g e 

 Form A

Requisition slip required Form B required

This form is used when first time new check book is issued REQUISITION SLIP This slip is required for issuing check book, for those who already used the cheque book now it is lost or finished.

FORM B In the case when old cheque book or requisition slip is lost then form B is used to issue new cheque book. It is treated as security stationary.

ATM CARD PROCEDURE
After the opening of the bank account, if the person requires the ATM/Debit card then again he needs to fulfill the application for ATM card. After the completion of that form that application was send by bank to Islamabad for approval and for the issuance of debit card. This procedure almost takes from 10 to 15 working days. The amount limit which a person can withdraw each day through debit card is not more than Rs.25000. The annual charges the bank deducts for CLASSIC card is Rs.500 and for GOLD card is Rs.750.

BANK STATEMENT If a person needs to get the bank statement of his account again for this purpose he needs to complete the request form. The application for statement should be submitted at least 1 day before, in some cases the bank also accommodate their client on urgent basis and print their statement at the same time. The bank statement contains all the details of the account holder which shows the amount and all the details when and where transaction is made.

If the third party want to receive a bank statement on account of a person who actually hold the account than the third party need to come along with the authority letter issued by the account holder, in which the account holder mention 52 | P a g e

the name of third party with his CNIC number, in order to receive the bank statement. ASKARI MAHANA BACHAT ACCOUNT (AMBA) It is also called ASKARI MAHANA BACHAT ACCOUNT (AMBA). In this the account holder can deposit their amount for the fixed period of time. In AMBA,

the profit is given on monthly basis on the basis of amount deposited. For AMBA you must need to have an account with the Askari bank. In AMBA the bank give two options to the account holder

y y

Deposit their amount for 1 year Deposit their amount for 3 years

The amount through which this account can be opened is y y Minimum Maximum Rs.50,000 Rs.10,000,000

In this one term is used which is called Rollover, it means if the person tick the option of rollover while opening the AMBA than after the completion of one year the same process will carry on instead of closing that account. Two computerized generated receipt is printed, the very next day after opening the AMBA, one is given to account holder and the second one is maintained by the bank. This receipt is demanded by the bank at the time of closing the AMBA. TDR In TDRs, the profit rate is negotiated that is decided between the manager of the branch and the valued customer. It is given for 1 month, 3 month, and 6 month and so on, the rate was decided on basis of number of days.

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LOCKERS First of all the application form is filled by the customer as well as specimen signature card (S.S). While fulfilling the form, there are three options regarding the operating of locker, these are

y y y

Anyone can operate Jointly Either or survivor

Any one In this option if there are more than one person who hold the locker, than any one of them can operate the locker, not all the members are need to be there for the operating of locker. Jointly In this option if there is more than one person who holds the locker, than all the members need to come to operate the locker, no individual person can operate the locker.

Either or survivor In this option if there is more than one person who holds the locker, and any one of them died than the others have the authority to operate the locker.

SWOT ANALYSIS
An analysis indicating towards the organizations strengths, weaknesses, opportunities and threat is termed as SWOT Analysis. Such an analysis is very important for the management in retaining the strength, overcoming the weaknesses, capitalizing over the emerging market opportunities, and carving

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ways to successfully tackle with the threats and ultimately converting them in the strengths for the organization. During six weeks of my stay at Askari Commercial Bank, I have come across the following SWOT analysis of the bank.

STRENGTHS
ACBL was organized by Army Welfare Trust (AWT) so it has strong army background. Askari Bank has opened all its branches at commercial areas so that the customers or clients face no problems in reaching to the bank. Askari bank has got a reliable and easy to use internal computer system. Every information regarding the transactions in customers¶ deposits has been computerized. The annual financial statement are prepared by the bank in accordance with the international accounting standard and are also published quarterly and half yearly accounts to provide information to their stakeholders for taking well informed decisions. All the branches of Askari Bank are online and automated. Askari commercial bank is the leading private sector bank in the banking network in Pakistan with many of them online branches in major cities of the country. Askari bank has the wide range of ATM Network across the country. The customers can withdraw their funds any time at all the ATM Sites. ACBL management is quite prepared to adopt the latest advancements in technology resulting in revolution in the banking operations such as check clearing process, computer based teller equipment and electronic funds transfers among the others. Askari Bank provide the good Phone banking service that is very attractive for those customers who don¶t have time to personally come to the bank i.e. They can easily get the information. Thus, saving the precious time of the customers.

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The organizations showing concern for the people, ethics, and environment enjoy good public reputation and are able to reap the benefits in the long run. ACBL management is quite sensitive to this issue.

WEAKNESSES
In my opinions these are the points that might be detrimental to the efficiency and profitability of the bank. Bank¶s marketing department is not very strong. Advertising done by the bank is less than the requirement. The employees are constantly rotated from one job to another job. The employee has know-how of the working in all the departments but not master in on work. But I think this is not a very good tactics used by the management. Almost all the decision-making is in the hands of the upper management. Only few decisions are taken at the lower level. Centralization is effective only certain levels but it is also times costly. The bank has still some of the traditional ways of operations in this advanced technological environment. Askari Bank has use computerized accounting system but, still the bankers use to make their entries in the accounting register also. There is no specific training program arranged for the new recruiters. They have to learn based on their observations and also their mistakes.

OPPORTUNITIES The bank is facing the following threats and opportunities currently. These are
positive external environmental factors effecting the organization. Askari bank growing business requires an extensive branch network. There are great opportunities for ACBL for the expansion of its business. Askari Bank can extend its network in other countries. It can enhance its profitability by making use of new technology. Foreign investors in the banking industry are welcomed in Pakistan as they bring not only the precious foreign exchange investment but also 56 | P a g e

skills and techniques of modern banking system, innovative products and services. Askari Bank has an Islamic Banking system also. But it is not fully Islamic banking. It has only few branches¶ of Askari. Askari Bank has Branches in Remote Areas. Foreign Trade is the focus of bank. It has become an ideal bank for the importers and exporters.

THREATS
Askari Commercial Bank is facing a strong competition by its major competitors; Union Bank; Faysal Bank; Meezan Bank; My Bank and Bank Alfalah. Business of these banks is also growing with very high pace. So Askari Commercial Bank has been performing very well in the presence of unstable political and economic situation but this uncertainty is a continuous threat for the bank. 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 In the Bank there are the employees who are not satisfy with their job and there is high rate of turnover. So the process of recruitment is time consuming and costly. The charges of the services that the bank receives from the customers are higher than their competitors. So it loses many customers for this reason. Frauds are also a great threat, like recently a great fraud happened with The Bank of Punjab

FINANCIAL RATIOS profitability ratios Market ratios liquidity ratios portfolio management capital gearing ratios 57 | P a g e

PROFITABILTY RATIOS EARNING PER SHARE EPS shows what shareholders earned by way of profit for a period.EPS is closely watched by the investing public and is considered an important indicator of corporate success.

Profit after taxation E.P.S ! Weighted average no. of share

Profit after Years 2009 2008 taxation 1107793000 386225000

Weighted average number of share 507346635 507346635

Earnings per share 2.18 0.76

E.P.S RATIOS
2.5 2 1.5 1 0.5 0 2008 2009 RATIOS

Interpretation
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The earnings per share for the year ended December 31, 2009 was Rs.2.18, against the previous year¶s Rs.0.76, The improvements primarily due to reduction in provision / write-off against NPLs during the year 2009.

Return on Equity
Return on equity revels how much profit a company earned in comparison to the shareholder equity found in balance sheet. Return on equity of Askari Bank is showing a changing situation on all given years

Net profit return on equity ! Share holder¶s equity × 100

Return On Equity in Years 2009 2008 Net Profit 1107793 386225 Shareholder's Equity 13142688 12034895 % 8.429 3.209

ROE RATIOS
9 8 7 6 5 4 3 2 1 0 2008 2009

RATIOS

Interpretation In year 2008 it goes to 3.209% and in 2009 it increases to 8.429% but not too much so the net profit decreases but the shareholders equity is also decreased.

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This year bank has to face additional costs as well as less income due to economic slowdown which is a bad sign for the bank Return on Investment Net profit return on investment ! Total assets ×100

Years 2009 2008

Net Profit 1107793 386225

Total Assets 254327446 206191138

ROI 0.436 0.187

ROI Ratios
0.5 0.45 0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 2008 2009 Ratios

Interpretation In 2008, It is decreased it means that the company decline and its financial position is week in 2008.But this ratio is same here as return on equity because long term debt is zero.

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Net profit Margin It measure the percentage of profit earned after all taxes. The higher the firm¶s profit, the better will be the margin. Net profit earned net prfit margin ! Interest earned × 100

Interest Years 2009 2008 Net Profit 1107793 386225 Earned 22661754 18393313

Net Profit Margin (%) 4.889 2.099

NET PROFIT MARGIN
6 5 4 3 Ratios 2 1 0 2008 2009

Interpretation In 2008, the percentage is 2.099% which is low. It is increased in 2009 to 4.89% which is a positive. Operating Income Margin Operating income operating income margin ! ×100 61 | P a g e

Interest earned

Operating Income Margin (%) Years 2009 2008 Operating Income 2554701 2707000 Interest Earned 22661754 18393313 11.27 14.717

operating income margin ratios
16 14 12 10 8 6 4 2 0 2008 2009 ratios

Interpretation It indicates that Operating income is decreasing from 2008 to 2009.

MARKET RATIOS
Market price is the price at which people are willing to buy or sell the shares. It provides information about how investors view the potential return and risk connected with owning the company¶s shares.

PRICE EARNINGS RATIO
Market price 62 | P a g e

PRICE EARNING RATIO ! EPS

P/E Ratio Years 2009 2008 Market price 27.30 14.57 EPS 2.18 0.76 12.52 19.17

P/E RATIOS
25 20 15 10 5 0 2008 2009 RATIOS

INTERPRETATION The P/E ratio is commonly used to assess the owner¶s appraisal of share value. Investors had greater confidence in the bank¶s future performance in 2008 as reflected in the P/E ratio of 19.17, but in 2009 it reduced to 12.52.This figure indicates that investors were paying Rs. 12.52 for each Rs.1.00 of earnings. The higher the P/E ratio, the greater investor confidence.

DIVIDEND PER SHARE
DPS shows how much the shareholders were actually paid by way of dividends.

Dividend D.P.S ! Weighted average no. of shares 63 | P a g e

Dividend Years 2009 2008 Dividend 825000 444404000 No of Shares 507346635 507346635 per Share 0.016 0.876

D.P.S Ratios
1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 2008 2009

Ratios

Interpretation
The Dividend per Share figure is used by investors and analysts as an indicator of a company's financial health and profitability. The DPS in 2009 is Rs. 0.016 that reflects shareholder have or will receive Rs. 0.016 for each share they own. DPS rose to Rs.0.875 in 2008.

DIVIDEND PAYOUT RATIO
The payout ratio provides an idea of how well earnings support the dividend payments. More mature companies tend to have a higher payout ratio.

DPS DIVIDEND PAYOUT RATIO ! EPS

Dividend Years DPS EPS Payout 64 | P a g e

Ratio

2009 2008

0.016 0.876

2.18 0.76

0.0073 1.153

D.P RATIOS
1.4 1.2 1 0.8 0.6 0.4 0.2 0 2008 2009

RATIOS

Interpretation Investors seeking high current income and limited capital growth prefer companies with high Dividend payout ratio. However investors seeking capital growth may prefer lower payout ratio because capital gains are taxed at a lower rate. High growth firms in early life generally have low or zero payout ratios. As they mature, they tend to return more of the earnings back to investors Dividend payout decrease in 2009 from 1.513 to 0.0073 Companies that pay higher dividends may be in mature industries where there is little room for growth and paying higher dividends is the best use of profits. Dividend Yield Ratio This measurement tells you what percentage return a company pays out to shareholders in the form of dividends. Older, well-established companies tend to payout a higher percentage than do younger companies and their dividend history can be more consistent. DPS DIVIDEND YIELD RATIO ! SHARE PRICE

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Dividend Years 2009 2008 DPS 0.016 0.876 Share Price 27.30 14.57 Ratio 0.00059 0.060

Yield

D.Y RATIOS
0.07 0.06 0.05 0.04 0.03 0.02 0.01 0 2008 2009 RATIOS

Interpretation Dividend yield decrease in 2009 from 0.060 to 0.00059.The AKBL dividend yield has overall declining trend. When the dividend yield decreases it is unfavorable

LIQUIDITY RATIO
CURRENT RATIO The current ratio is a measure whether or not a firm has enough resources to pay its debts over the next 12 months. Acceptable Current ratios vary from industry to industry.

Current assets CURRENT RATIO ! Current liabilities YEAR CURRENT ASSETS CURRENT LIABILITES CURRENT RATIO

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2009 2008

32409546 24464203

32409546 228158736

0.142 0.132

CURRENT RATIOS
0.144 0.142 0.14 0.138 0.136 0.134 0.132 0.13 0.128 0.126 2008 2009

RATIOS

Interpretation For banks in Pakistan 2:1 is ideal one. Askari Bank is facing difficulty in maintaining its ratio. In 2008 bank has to attract more deposits, so current liabilities increased much proportion to current assets. However bank has enough strength to pay off its short run liabilities. Advance to Deposits It is the most important ratio for a bank as all the bank profits are major based on loans and deposits. Because on the deposits they have to pay and on loans they earn and the difference is the profit of the bank. The higher the ratio, the more is relying on borrowed which are generally more costly than most of deposits. Advance loan to deposit(%) ! Deposit ×100

Year

Advance

Deposits

Advance Ratio in %

to

deposits

2009 2008

135034499 128818242

205970227 167676572

65.56 76.82

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ADVANCE TO DEPOSIT RATIOS
78 76 74 72 70 68 66 64 62 60 2008 2009

RATIOS

INTERPRETATION The ratio of askari bank is increased in 2008. But in 2009 the ratio suddenly decreases which is a bad sign for a bank, it ultimately decrease in the bank income.

Admin Expenses to Total Deposits Admin expenses Admin Expenses to to deposit ! Total Deposit × 100

Expense Years 2009 2008 deposit 6995857 5904169

on Total deposits 205970227 167676572

Admin Expense to Total Deposits 3.396 3.521

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ADMIN EXP TO TOTAL DEPOSIT
3.54 3.52 3.5 3.48 3.46 3.44 3.42 3.4 3.38 3.36 3.34 3.32 2008 2009

Ratios

Interpretation For banks, this ratio must be less than 3%. Depression in financial system forced banking system to attract more deposit at higher costs. Bank has to increase Minimum wage rate to meet government regulations, depreciation and amortization costs also increased. So overall position lead the management to increase these costs.

Non Interest Income to Total Assets
This ratio shows how much you are earning on the total assets through non-mark up income. Non interest income Non Interest Income to Total Assets! Total assets

Years 2009 2008

Non Interest Inco 2554701 2707000

Total Assets 254327446 206191138

Noninterest income to total assets in % 1.004 1.312

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NON-INTEREST INCOME TO TOTAL ASSETS
1.4 1.2 1 0.8 0.6 0.4 0.2 0 2008 2009 Ratios

Interpretation This ratio is showing a vital change in the year 2008 and 2009. This ratio reveals that bank assets has increased but decrease in noninterest income due to Unrealized loss on revaluation of investment classified as held for trading disturb for this year over all non markup income is increasing for the Bank. RISK ASSETS TURNOVER Net interest income RISK ASSETS TURNOVER ! Risk assets (advances) ×100

Net mark-up / Years 2009 2008 interest income 9032658 7742594 Advances 135034499 128818242

Risk Assets Turnover % 6.689 6.010

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RISK ASSET TURN OVER
6.8 6.6 6.4 6.2 Ratios 6 5.8 5.6 2008 2009

Interpretation This ratio is good when it is more. It shows how much you are earning on your risk assets. This ratio for Askari bank is showing a increasing trend in current year. Advances have increased. This causes to increase higher interest income for bank. Due to inflationary trend interest income is also high. So this ratio is in favor of bank PORTFOLIO MANAGEMENT RATIO Advances to Total Assets Advances Advances to Total Asset ! Total assets

Years 2009 2008

Advances 135034499 128818242

Total Assets 254327446 206191138

Advances To Total Assets 0.530 0.624 Times Times

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ADVANCES TO TOTAL ASSETS
0.64 0.62 0.6 0.58 0.56 Ratios 0.54 0.52 0.5 0.48 2008 2009

INTERPRETATION It is an indication of ACBL¶s funds management policies. The funds allocation to the financial institutions has increased to a great extent despite the fact that still it holds a small proportion relevant to the total resources raised by the bank. It is a positive indicator in the sense that the financing to the banks are the most secure ways of lending. Considering the economic conditions of the country, it seems to be the best alternative available to the bank. In the current year this ratio has been reduced to the little extent. Although it is declining but the situation might not be alarming.

Leverage Ratio
EBIT leverge ratio ! Interest charged ×100

Time Interest Earned Years 2009 2008 EBIT 15271337 11112101 Interest Charges 13629096 10650719 ( %) 112.2 104.3

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TIME INTERST EARNED
115 110 105 100 2008 2009 RATIOS

Interpretation Ratio is decreasing from 2007 to 2008 after that ratio is increasing at 2009 because EBIT is increasing.

GEARING RATIOS Debt Equity Ratio
Total debts debt equity ratio ! Share holder¶s equitY × 100

Shareholder's Years 2009 2008 Total Debts 239378374 193219775 Equity 13142688 12034895

Debt Equity Ratio 18.213 16.054 Times Times

DBT EQUITY RATIO
18.5 18 17.5 17 16.5 16 15.5 15 14.5 2008 2009

Ratios

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Interpretation Debt equity ratio shows a relationship of shareholder equity and total debts of a company. It is a relationship of internal and external equity of a company. Debt equity ratio of Askari is showing increasing trend. It means that Askari is not trying to rely on its own resources and not increasing its Capital by issuing shares. It is a bad sign for askari bank. TOTAL CAPITALIZATION TOTAL ASSETS total capitalization ! TOTAL LIABILITIES Years 2009 2008 Total Assets 254327446 206191138 Total Liabilities 239378374 193219775 Total Capitalization 1.062 1.067

TOTAL CAPITALIZATION
1.068 1.067 1.066 1.065 1.064 1.063 1.062 1.061 1.06 1.059 2008 2009

Ratios

Interpretation
It indicates that the total debts remain same in 2009 as compared to 2008

Fixed Asset / Equity Ratio
Fixed assets fixed asssets/equity ratio ! Share holder¶s equity 74 | P a g e ×100

Share Holder¶s Years 2009 2008 Fixed Assets 9846440 8266458 Equity 13142688 12034895

Fixed Asset/Equity % 74.92 68.69

FIXED ASSET/EQUITY
76 74 72 70 Ratios 68 66 64 2008 2009

Interpretation
It indicates that the fixed assets are increasing, for this there is increasing trend.

Operating Assets Turnover
Interest earned opearing assets turnover ! Operating assets

Operating Markup/return/interest Years 2009 2008 earned 22661754 18393313 Operating Assets 9846440 8266458 Asset Turnover 2.302 2.225

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operating asset turnover ratios
2.32 2.3 2.28 2.26 2.24 2.22 2.2 2.18 2008 2009 RATIOS

Interpretation It indicates the increasing trend in the graph as the ratio increases 2.225 in 2008 to 2.302 in 2009.

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CONCLUSIONS
After the completion of my overall analysis and studies of Askari Commercial Bank performance and banking system, I come to the conclusion:

The ACBL is a leading commercial bank of Pakistan. It has won the rewards like:
The Best Retail Banking Award 2008 The Best Corporate Report Award 2008

From the opinion of international organization the overall strong standing of the bank is very clear. It won a certificate from Pakistan Credit Rating Agency (PACRA) A1 in short run in and AA long term even in these worst conditions of economy the bank is enjoying the huge profits of amount Rs. 1,108 Billion. Total assets of the bank are increased up to 254 billion and Earnings per Share have greatly increased from last year. It has increased its network from 200 to 226.

The bank is fully equipped with the modern technology and it is also providing all the latest banking services like online banking, Internet banking, ATM cards, traveler cheuqe, and credit cards etc.

The bank is trying to introduce latest techniques on regular basis because it is backed by AWT that¶s why people have complete confidence on them. ACBL has won the confidence of all its customers by providing them the online services within few seconds. The future of bank is progressive and will be a leading bank of Pakistan even competing with foreign banks.

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RECOMMENDATIONS
A department should be established that collects feed backs of the customers and as well as general public. Charges should be decrease in providing services to the customer that will result into the increase in the customers. One way to retain the personal sector customers is to offer a wide range of services such as tax advice, free life insurance equivalent to amount deposited, shares portfolio management, fund management facility, etc., complimentary to the core services. Banks must have a slightly different mix of services and mean of providing these such that customers can choose the mix that suits them best. Marketing department¶s efforts to market and introduce its product should be improved. There should be proper training for the new employees. Job rotation from one job to another is a big hurdle in the way of getting experience. Employees have known how about how to work but not master in one work. Employees are not satisfied with their jobs. The bank should take steps to minimize it through different incentives for the employees. The bank may choose to make its existing products distinctive or to introduce new products. It is often easier to benefit from adverse changes made by other banks than to attract customers by innovations. Efficiency in services should be improved to serve and prevent customers from waiting for too long e.g. by increasing the number of qualified workers or increase in computers in the bank. Improvement in the online banking system being currently used especially in the case of the ATM machines to avoid wasting time of customers and frequent breakdown of the machines.

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