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how to open different Accounts of different customers. 2) I learnt how to record the Inward Dak of the bank. 3) I learnt how to record the Outward Dak of the bank. 4) I learnt about the Inward Clearing. 5) I learnt about the Outward Clearing. 6) I learnt how to work as Customer Service Officer (CSO) 7) I learnt procedure of opening of the Letter of Credit. 8) I learnt how to make Demand Drafts, Pay Order and Call Deposit Receipt. 9) I learnt how to make the Outward Bills for Collection. (OBC) 1. Inward Dak of the Bank Inward Dak is the dak that is received in the bank. This dak can be from anywhere from any part of the Pakistan or any part of the word. Now the dak can come from any part of the world because of the international connection or agreement with the countries. Procedure of recording the Dak: There is a register that is called inward dak register. In this register every inward dak is registered and recorded. When the dak is received in the bank it is first opened and in inward dak register a serial number for that dak is allocated then reference number and subject of that letter is recorded. At the end of the recording initials are pasted by the person who is recording the inward dak. Once the dak is recorded then it is separated department wise i.e. general baking department, advances department, and foreign exchange department. After this separation all the dak is disbursed throughout the bank’s departments. The disbursement of dak is done at quick basis because the some daks are more important for the official because they have to respond to their head quarter.
2. Outward Dak of the Bank Outward dak of the bank is the opposite to inward dak of the bank. In outward dak we send to the outsiders. This outward dak can pertain to any bank, customer or can be sent internationally. Procedure of recording the Outward Dak: There is a register that is called outward dak register. In this register all those daks that will be sent out from the bank are recorded. For recording the outward dak first we write the address of the personality to whom it is being addressed. After pasting the addresses then we give the number on envelop and the number is also recorded in the register. Initials are also pasted on it. Then these daks are handed over to the courier services with which the bank has the agreement like MCB Muree Road branch has the agreement with OCS couriers. When the dak is handed over to the person he gives the receipt against each dak this receipt contains the acknowledgement of receipt of dak and the serial number this serial number is recorded in the outward register for proof. If any dak is misplaced, we can confirm them from the couriers by this number for our dak.
Customer Service Officer (CSO) Customer Service Officer is the person whose primary function is to facilitate and entertain the customers’ needs. As CSO I performed the following functions; • Issuing of cheque book request form • Issuing of the deposit slips • Issuing of ATM Cards form • Issuing of form for online funds transfer, DD form, and PO form. • Issuing of Bank Statements • Entertain the Balancing inquiry of the customers.
Inward Clearing: Inward clearing means those cheques that are drawn on us but they are presented for payment at any other branch of any bank and are sent by that bank to us through NIFT for clearance . Before discussing this issue we must also know about the institution that helps the banks in clearing the cheques. NIFT (National Institutional Facilitation Technologies) is the institution that has the network all over the Pakistan of collecting the cheques from different banks branches and then allocates the cheques to the relevant banks for clearance. This institution acts as clearing house which was previously performed by the State Bank of Pakistan and if there is no branch of SBP then this function was performed by the National Bank of Pakistan. Now this institution performs this function. For example NIFT will allocate the area for a person who will collect the cheques from branches of that area then it will arrange them and will deliver these cheques to the relevant branches. When these cheques are received by the clearing department they first do the scrutiny of cheques to check whether the cheques are in proper order or not. If the cheque is in its proper form and there are sufficient funds for payment then the customer account is debited with the amount and if there is no sufficient balance or there is any other reason for nonpayment a form called cheque return memo is attached with and cheque is returned to the NIFT who in turn will return it to the relevant branch. Procedure of Inward Clearing 1. Scrutiny of Cheques 2. Signature Verification 3. Balance Verification 4. Debiting the account 5. Return/Dishonor of cheque 6. Advice preparation
7. Notification to NIFT Explanation 1. Scrutiny of Cheques: scrutiny of cheque means verifying the cheques in different angles. A scrutiny of cheque can be done in following way: we see, • • • • • • • We see that is this cheque is drawn on us or not. Date mentioned on the cheque either it is pre dated or post dated. If the cheque is post dated then cheque is returned on the ground of post date. Whether the amount in words and figures are same or different. Is the cheque mutilated or not. If cheque is crossed then is the crossing is in proper format. Is there crossing on the cheque if the cheque is of huge amount. Endorsement signature are verified Clearing stamp is also checked.
2. Signature Verification: Once the scrutiny of cheque is done next stage comes to verify the signature of person on the cheque with the signature that is stored in the bank computer system. If signature is verified (matched with specimen signature) then customer’s account is debited. If signature is different from that of specimen signature then cheque is returned. If there is any doubt on signature then we call the customer for verification that is the cheque issued by the customer or not for safety purpose. If customer signifies then he is called at bank for verification of signature. But this happens very rare this happens only for those customers who are valuable to the bank business. 3. Balance Verification: once the scrutiny of cheque is done then next step is to check the balance sufficiency. Here each customer’s balance inquiry is made for honoring the cheques. This balance verification is mandatory and if the bank makes the payment without checking or verifying the account of the customer and there is no such sufficient funds in his account then the banker will be responsible for this wrong action. 4. Debiting the Account: In 3rd step the balance verification is done. If there is sufficient balance in the account then the customer’s account is debited. It means the amount is deducted from the account of the customer. If there are no
We send this advice to our regional head quarter. Specimen of Advice By amount of funds transferred MCB 612 Rs . Dishonor and Return. Date mentioned on the cheque either it is pre dated or post dated. Return of Cheque: here other than insufficient balance bank can return the cheque for several different reasons. 5. Advices Preparation: After passing through scrutiny of cheque through Dishonor and return of cheques next comes the advice preparation. Endorsement signature are verified Clearing stamp is also checked. Is the cheque mutilated or not. Main logic of sending this advice to the regional head quarter is to adjust the reserves of their banking system. these can be either: • • • • • • • We see that is this cheque is drawn on us or not. In this advice we give the brief detail about the cheques that were received minus the cheques that were returned or dishonored by the bank. Dishonor of cheque: if there are insufficient funds in the account of customer then cheque is dishonored and a cheque return memo is also attached with it and bank charges the fee named as bank charges. Dishonor/Return of Cheque: we divide this point in two sub categories. If cheque is crossed then is the crossing is in proper format. If the cheque is post dated then cheque is returned on the ground of post date. Is there crossing on the cheque if the cheque is of huge amount. What is advice? Advice is a document that is directed to the regional head quarter of bank notifying about the clearing of the cheques. Regional head quarter receives different advices from different MCB Bank branches. i.sufficient funds in the account of the customer then we will dishonor the cheque and move to the next step. Whether the amount in words and figures are same or different. 6.e.
dr. Cr.000 7.e. Error made by the Customer. Important points about Inward Clearing Insufficient Funds: if the bank dishonors the cheque of the customer on the ground of insufficient funds then the bank charges the bank charges on it.000 300. because the bank charges are Rs. Its general entry is as under Customer’s account Bank Charges DR. at least Rs. One voucher will be for DR.MCB REGIONAL HQ SIGNATURE Cheques Received Cheques Returned Total SIGNATURE 1. On receiving this information the banks that had sent the cheques to us will credit the accounts of the customers if the cheques are honored by us otherwise the bank will hand over the cheque to the customer along with the cheque return memo. . NIFT then hands over this notice to the banks. 200. Notification to NIFT: as we send the advice to our regional head quarter similarly we send a notification to the NIFT not the advice.500. 200 for insufficient funds. However if any error is made by the bank then no commission is charged from the customer. and one voucher will be for Cr. If any of the customer makes error on drawing cheque then bank also charges the commission on such error. and cr.e. But these bank charges are only deducted if there are sufficient funds i. Two different vouchers are used for above two heads i.200.000 1.
Clearing officer signs and stamps the deposit slip and handover the counter slip to the person and keeps the cheque and remaining part of the deposit slip. These cheques are collected throughout the banking hours. the cheques pertaining to Rawalpindi and Islamabad are temporarily posted in the customers’ account under the head “Float”. Here only number of instruments are counted and handed over to the NIFT. When cheques are realized they are permanently transferred to their account otherwise that float is taken away from the account of the customers. As I did my internship at Rawalpindi when the cheques are sorted for outward clearing. In inward clearing the cheques is brought in by the NIFT in our branch. The person giving the cheque for collection must first fill in the slip and then present the cheque to the clearing officer. In this section bank only hands over the cheques to the NIFT and NIFT separates the cheques with respect to branch names. In outward clearing branch receives the cheques that are presented at our branch but they are drawn on other branches. Procedure of Outward Clearing In outward clearing the person must be the account holder of the bank.Outward Clearing: Outward clearing is the opposite of the inward clearing. But opposite is the case here. The cheque must relate to different branch of different bank. Its main reason is that NIFT comes and . For Outward clearing the clearing officer receives the cheques whole day but he sends only those cheques for outward clearing that are received upto 3:00 PM.
An important thing to remember is that if the cheque or DD etc. contains the name of the payee and the name of the bank then both stamps are used by the bank i. First we differentiate the cheques with respect to the bank on whom they are drawn.collects the cheques at 3:00 PM. Steps involved in Clearing for Outward. After pasting all different types of stamps then all cheques are separated according to their city areas from where the payment will be realized. • Received Payment for MCB: this stamp is used where the cheque is in the name of the MCB Bank. Payees account will be credited on realization and Received payment for MCB will be pasted on the back of the cheque or Demand Draft. Once separation is done a paper . Next working day is pasted because on the next day the cheques are normally cleared. 1) Cheque. Following are the stamps that are pasted on the cheques for Outward Clearing. Payees Account will be credited on Realization”: This is used to stamp on the back of following instruments. 1. This means that the account of the payee will be credited provided that cheque is accepted by Drawer’s bank otherwise not. The cheques that were received after 3:00 PM are also collected but they are sent for clearing next day for clearing. This stamp is pasted with the date of next working day. 4) Speed Cash. Some banks have made their stamps with the same wording. 3) Pay Order. 2. Next different stamps are pasted on the face and back of the cheque.e. If by mistake you paste the yesterday’s clearing stamp on the face of the cheque then you will cancel it for this purpose you will paste the new date stamp which is required by the bank and “Our previous clearing stamps is cancelled” is written on the back of the cheque. • Clearing Stamp: this stamp is pasted on front of the cheque for clearing. 2) Travelers Cheque. This stamp is normally used when the cheque is in the name of the customer.
Procedure for Issuing the Outward Bills for Collection In order to make the OBC following procedure is adopted. For example.note issued by the NIFT is attached by which contains the information about the number of cheques and their total value. At the end the instrument is posted to the relevant bank. Actually on OBC form OBC number is taken from this registers. • OBC Register: in OBC register first we write the OBC number which is written on the OBC form. • OBC Form: this OBC form is in duplicate containing the name of the bank on whom the cheque is drawn. In To section we will write the name of Habib Bank Limited name we will also give the OBC number in OBC No. Outward Bills for Collection (OBC) Outward bill for collection is a procedure by which cheques are collected (realized) by the bank. a cheque drawn on Habib Bank Limited. . Then on the next column we write the name of the account holder who has the account in our bank and in the very next column the amount that is written on cheque is recorded. This number is taken from the OBC register which is the series of number coming in sequence from the last OBC in OBC register. The need for the OBC occurs when there is no facility of NIFT. Next we will write the name of person who has the account in that bank. section. These packed instruments are handed over to the NIFT representative. This name is normally written on the cheque in signature area. At the end we will write the amount of cheque.
These are also noted by computerized system and a serial number is issued from the computer system. but the demand draft can be issued Rawalpindi and can be paid in at Lahore or any other city of Pakistan.. But if the value of demand draft is greater than 100.• Realization of OBC: if there are sufficient funds in the account of the customer they make a demand draft in the favor of our bank and deliver to us. An advice is also made for the confirmation of the draft made. Demand Draft. 100. Pay Orders . These are made for outstation branches of the concerned banks. Demand drafts are made for the beneficiary for payments..000 then along with their advice they are also online posted to the Pak account of the relevant bank. One important thing to remember is that if the demand draft is made below the value of Rs. funds transfers etc.000 then advice is also sent to the concerned bank. Pay Orders and Call Deposit Receipt: Demand Draft As we know that pay orders are issued and paid only within the same city of issuing bank. This demand draft is ultimately transferred to the account of the customer.
Pay orders are made for the payment of fees. The amount of the DD is mentioned and a control number is also written. This control number is similar to that of OBC number. . Requisites of Demand Draft: following are the requisites for Demand draft (DD): Customer Request for Funds transfer: this is the form is used to issue either for pay orders. demand draft or call deposit receipt. These are noted in printed block letters and yearly serial numbers are issued from computerized system. In this form we need the customer or applicant information and the detailed information about the person or the company to whom the funds will be transferred. CNIC the purpose of transferring the funds is also mentioned. In applicant section we need the name of the applicant his ID card number after seeing the original. It means MCB of Muree road branch Rawalpindi will issue the pay order in the favor of any branch of MCB that is located in only in Rawalpindi Pay orders is the property of person or company that has to take benefit of the amount being pay ordered by the concerned person. In beneficiary account section we need to know the name address and other relevant information for issuing the DD or PO. These are required for the proof of payments made between the bank and the customer in the favor of beneficiary. tender or issued for the payments of dealings. Demand Draft Issue Register: in this register we write the name of the person for whose favor the DD is issued.Pay orders are issued by the bank that are paid or realized within the city of issuing bank. One main important thing to remember for this section is that you have to make the sure that the address provided by the applicant is correct otherwise the DD or PO will be issued in the title of wrong person which means that person will be entitled to take the payment.
100. Customer request for fund transfer form is filled as given above Credit and Debit vouchers are made: here we divide it in two shapes. Debit and Credit vouchers against payment from the account: here following 3.Procedure for the issue of DD: DD is issued in the following way: 1. (1) Debit and Credit vouchers against cash payment and (2) Debit and Credit vouchers against amount drawn from the account. Customer Account DD Payable Dr. Cr. Cr. Let us see them one by one. 4. 100. Advice Preparation: Advice is prepared if the value of the DD is less than the Rs.000 then the amount is transferred by online funds transfer method. • Debit and Credit voucher against cash: here the transaction will be passed in the following manner Cash account DD Payable • entry will be made. 2. After doing all the documentation the DD is issued. Dr. .000 if the value exceeds the Rs.
The process of opening an account is very simple and anybody who would like to open his account can do it easily without any difficulty. Types of Accounts There are three types of accounts CURRENT ACCOUNT SAVING ACCOUNT TERM DEPOSITS ACCOUNT .Account Opening The general banking performs various functions among them the first and most important function is account opening.
These are the signatures that verify the cheque because these cheques are kept by the bank. 3) Account Opening Register The manager records the necessary details into this register and allots an account number from this account opening register. Without getting the signature of the customers you cannot open the account. Manager has every right not to accept this contract if he is not satisfied by the details provided by the customer. So the form is given to the customer to fill in for opening a related account. For fixed deposit only that application form is needed this is prepared manually. It is attached with an application form. This register is maintained for each type of account and the account numbers are allotted serially. he compares customer’s signature with the signature on the cheque for avoiding fraud. branch code. and title of account. 4) Cheque Book Cheque book is issued to the customer when the bank accepts the account opening application form. account type. This card contains four signatures of an applicant. who will give him an “APPLICATION FORM” specifically used for account opening. because most of the procedure of fixed deposit is done manually.Procedure for Account Opening 1) Application Form The customer would like to open his account is required to meet with the manager or second officer. After opening a saving and current account every applicant’s data is entered into the computer to maintain a safe record and application form is properly filled so that it can be available when necessary. . Banker uses this card at the time when he receives the cheque. Green color-coded Application Form is available for each type of account. applicant account number. 2) Specimen Card (SS) “SIGNATURE SPECIMEN CARD” is the card is compulsory for opening the account.
For Companies: companies are divided into following sub categories i) Sole Proprietors: • • • • • • • • • Copy of CNIC National Tax Number Letter head request Surety Bond (request on Rs. Types of Customers and Documents Required Following are the different types of customers who can open their account with the bank with the following documents. Individual • • • • • • Copy of CNIC Next of Kin CNIC Income Proof National Tax Number Copy of CNIC Request of account opening on the letter head with signatures and stamp 2. 1. This act promotes good will among the customer and the introducer. For Business 3.) Companies .Letter of Thanks Bank prepares two ‘LETTER OF THANKS’ one for the new customer and the other for his introducer. 100 stamp paper) Partnership deed Partners CNIC National Tax Number Letterhead request signed by all partners and stamped Certificate of incorporation ii) Partnership iii) Private (Ltd.
.• • • • • Certificate of commencement Directors CNICs Memorandum of Association Articles of Association Board of Resolution (Persons who will deal with the bank iv) Public (Ltd.) Companies Letter of Credit Definition of letter of credit.
Issuing Party The bank which issues or opens a letter of credit at the request of importer is called the issuing bank. 2. 4. The commercial banks come to the help of exporters and importers. 5. Parties involved in Letter of Credit There are four parties involved in a letter of credit. Exporters are uncertain of the importer capacity to pay. Exporter The seller or the party for whose favor the letter of credit is drawn is the third party or it is also called beneficiary.“A letter of credit is a written instrument issued by a bank authorizing the seller to draw in accordance with certain terms and stipulations legal forms. In case of nonpayment the seller should be assured to legal rights in foreign country. • • • • Account party Issuing party Exporter Paying or negotiating bank Account party The buyer or the importer on whose account and request the letter of credit is opened is known as account party. 6. that all such bill will be honored. There should be an agency which should meet the seller’s need of finance when the goods are shipped. 3. The importers can undertake the obligation to pay to the exporter for the purchase made by the importer and this is usually done through a letter of credit. The importers are unwilling to pay the amount unless the goods are actually shipped and the documents received by the bank.” Reasons for letter of credit 1. Paying or negotiating bank .
port of shipment. 8. • • • To issue letter of credit on agreed terms and condition with the buyer. They are giving the best education and are offering for specialization. This form contains all the necessary details discussed between the importer and exporter for the shipment of goods which include the description of merchandise. 4. 7. the total value of the goods etc. The importer then submits an application to his bank for the issuing of an individual letter of credit. the documents against which the bank is the honor the draft. . To honour draft when presented with proper documents.The paying bank in the exporter’s country on which the draft is drawn is called paying bank. If the documents supplied by the seller conform to the terms of contract the exporter will be paid. 9. port of unloading. 6. 3. The importer of buyer contacts the seller in foreign country for the purchase of a particular good or goods. He settles with the seller the quantity and quality of the goods to be importer. To have a proper examination of the documents. Operation of a letter of credit 1. 5. The obligation of the buyers bank is. 2. The issuing bank will not be responsible if there is any fraud or the merchandise does not conform to the sales contract. The sale contract also includes the method of payment. The form on which the importer employees for a letter of credit is supplied by the bank. financial management. EXECUTIVE SUMMARY: The Department of Administrative Sciences offers Masters degree in Business Administration.
I have learned more about the Basic Banking. During my internship I found that Askari Bank is a best Bank in Multan because most of the Exports and Imports in Multan are done through this Bank. Low profit rates used to be one of the major reasons for not meeting the deposit targets. and its major export is Cotton and Mango. The office of Army Welfare Trust is situated at AWT Plaza. This rotation is done in order to have general concept regarding Bank’s functions. So in order to learn more this was my choice. but now Askari Bank is giving a comparatively high profit rates to its customers. Credits and Foreign Trade department and have given below the caption of activities I was involved in during the period of six weeks. Every internee is rotated among the Bank’s departments and so was I. He gave me small introduction of the Bank and introduced me to the staff of the Bank. I decided to take up Askari Bank Limited for my internship because it is a competing Bank nowadays and gives a good training to the internees. . An important program is six to eight weeks internship with any recognized institution. So its export is done on seasonal basis. Multan is one of the cotton growing cities of Pakistan. Noor ul Islam. In the season of cotton and Mango export Askari Bank get its target easily but difficult for it to get its target in the off season. INTRODUCTION TO BANK: Askari Bank Limited (AKBL) works as a Unit of Army Welfare Trust was established for the Welfare of Army Officials. In today’s every customer is a rational customer. Most of the businesses in Multan are directly or indirectly linked to cotton that is also the case with Askari Bank’s clients. In this rotation the stay in department is usually a week. Rawalpindi. operations and policies. On the very first day of my internship I reported to Operation Manager Mr. AWT offers the “AWT Saving Scheme” to the army officials only. human resource management and computer application to business. Because Multan is an Agricultural City. he knows the value of money and wants a best return on his money. AWT has its units as under: Askari Associates. This report is about my internship that I have undergone at Askari Bank Limited Multan Branch from 2nd June 2008 to 18th July 08.marketing management. During my internship I am able to learn practical aspect of business. The profit rates on Askari deposit schemes were quite low when compared with other Banks especially with the National Saving Centers. and get good working experience.
high productivity and optimum use of technology are the hallmarks of its corporate strength. The location is connected to all the main trade centers in Multan. 1992 and started operations form April 1. as a Public Limited Company. 1991. The safety and security of depositor’s funds. Askari Bank Limited continues to scale new heights in all areas of its operations. It is located on Abdali Road Opposite to PIA Office. The Bank obtained business commencement certificate on February 26. Private Business. Askari Commercial Bank. 1992. At the time of its establishment the factored who were considered are as follows Multan is zone covering a large population. Askari General. It is a prosperous branch streaming towards great achievements. AKBL earned international recognition as Asia Money Award and the title of “Best Commercial Bank of Pakistan” for the year 1994. while Euro money declared the Bank as best domestic Bank of Pakistan for the year 1995. Askari Bank is scheduled Commercial Bank and is principally engaged in the business of Banking as defined in the Banking Companies Ordinance 1962. ASKARI BANK LIMITED MULTAN Askari Bank Limited Multan was inaugurated on December 28. Agro based area constituting growers and gainers Army Offices & Fort Colony Educational Institution DEPARTMENTS: The bank has following department: Account Opening department ATM Department Credit Card Department Account Department Credit Department Remittance Department Foreign Trade Department Cash Department . Multan City is linked to many big cities. Askari Leasing.1994. Cement Industry. In 1994. Lahore and Islamabad Stock Exchanges. Askari Bank Limited was incorporated on October 9. and is listed on Karachi. Textile Mills.
where as the rate of return with aspect to the amount of minimum deposit clear from deposit schedules in following table). These deposits are lent out to different parties. It is mostly opened by Business but individuals too open this account. he incurs the obligation of the paying all cheques drawn against him to the extended of the balance in the account. there are the following types of accounts: Current account. The borrowed capital of a bank is much greater their own capital.(as obvious in the Annexure).000 at the end of the month. ASKARI SPECIAL DEPOSIT ACCOUNTANT ASDA account is an interest bearing current account interest is paid. It is necessary for this account that the client must maintain a minimum balance of Rs. They are paid on demand. Saving Account. Sheeraz Hassan is operating the account opening department along with performing some auxiliary functions of Check Book Issuing TYPES OF ACCOUNTS In AKBL. Though individuals open such accounts for saving purpose. SAVING ACCOUNT The purpose of this account is to induce the habit of saving individuals in the neighborhood. 50. The minimum deposit for opening the account is Rs. Such deposit creation is done through opening an account in the Bank. It is for only transaction purposes. As there is no profit paid on this account it is also called chequing account because cheques can be drawn on it.(ASDA) Basic Banking account Term Deposit.ACCOUNT OPENING DEPARTMENT Borrowing funds from different sources has become an essential feature of today’s business enterprises. In AKBL Multan Mr.1050/. . persons belonging to Armed forces and different military institutions are free to use this account on current basis. When a banker accepts a demand deposit. But in the case of a bank borrowing funds from outside parties is al l the more vital because the entire banking system is based on it. Current account is mostly opened for business. Banks borrowing is mostly in the form of deposits. Askari Special Deposit Account. The payment of return is monthly. CURRENT ACCOUNT In current account there is no interest on it. That’s why it is similar to current account. It is also chequing account because cheques can be drawn on it.
TERM DEPOSITS A term deposit is a deposit that is made for a certain periods of time at the end of the specific period. For illiterate person and Veiled Women. INDIVIDUAL’S ACCOUNT When a single man or women opens an account in his/her own name and has the right to operate it is called individual Account. mother. “Limited Company” and “Club society or Association ” as explained below. DOCUMENTATION REQUIREMENT For literate person copy of National Identity Card is required as a primary requirement. along with the copy of National Identity Card requirement he or she must come in person for opening the account.25. AKBLs Term deposits are of types clear in the deposit scheme in the table). The amount is credited in any one of the checking Accounts of the depositor. The operation /procedure requirement that is needed for ” Individual Account ” differ greatly from ” Joint account ” proprietorship “Partner ship “. The rate of return on this account is set by head office. The amount of profit is given to depositors in three ways: By cash By sending a bank Draft to depositors Home address or Officers or whichever is specified as mailing Address. ACCOUNT OPENING PROCEDURE Fro the chequing accounts (C/A. phone no and affix his/her signature to certify this .000.Tax of 0. OPERATION The person place a “Check Mark ” in the type of account and type of operation required He/She fills in part-I of the form . The term deposit account vary one month to 1 year for all following accounts (as clear from Deposit Scheme in the table). a fix his /her either two or four similar signature (or thumb expression in the signature space and get it introduced and signed by a person who already has an account with the bank and write his account no in the specific rows in a specific space.3% would be deducted on ASDA if withdrawals are more than Rs. there are different types of account holders are required for all these types of account holders. SAVING). ASDA. the customer is allowed to with draw the principle amount . husband/wife or any other relative’s name. his /her address. One of them is “Askari” Advantage one month. The person fills in “next of Kin ” position where he/she father.
JOINT ACCOUNT When two or more persons. Signatures of both persons are obtained on the form in the area specified for signature and S.S card mailing address. Person to contact and introducer space is filled in.requirement. opens an account in his firm name. Card and the area specified for signatures on the form. All these requirement are necessary for future The person deposits the initial amount for opening account on to the cash counter. In the title of account space names of all the persons are mentioned. an application for opening the account on the firm letter -pad (having the firm name) is required along with the NIC Card of proprietor. The next day is the opening of account. This requirement is needed because in his/her absence bank can have correspondence with the specific person. DOCUMENTATION For joint account copy of National Identity Card of all the persons is obtained other things remaining same as in individuals account. . PROPRIETORSHIP ACCOUNT When an owner of a firm operating singly. he signed a “Vernacular form” where under take that affixed signature are original and his own signature and two postal size photos are needed. this account is called a proprietorship Account the proper himself liable for all his acts. open an in their name is called joint Account. telephone no. OPERATION All operation remains the same except that the firm name is written in the “Title of the Account” area and signature of the proprietor are affixed in the S. DOCUMENTATION REQUIRED For this kind of account. Accounts holder specified in the form that they will operate the form singly or jointly. Card. If the person put his signature in Urdu or any language other than English. Husband and wife or two persons of same sex can open joint account. nor trustees.S. neither partners. The persons fill in the Part-I and part-II in the form. The person put his signature on form -A (check book requisition) on two places in “authorized signature” and fills in the “Title of Account space by writing his name. The person put her /his signature (” or thumb expression) on the signature Specimen Card (SS CARD) similar in the area on the form. OPERATION The person checks the type of amount and type of operation required in the respective box on the form. One the back of S.S.
OPERATION All other requirement remain same except that the form is dully signed by all partners cards are signed by all those partners who will act on behalf of the firm and along filling part-I . Next of kin “requirement “is not need in case of a Limited Company.S Cards.C card of all partners Application to open the account on the firm letter pad. introducer signature is verified by S. partners by drawing and enclosed cheques. bank provides many facilities.I. Certificate of commencement of business N-I-C OPERATION The persons authorized in the Resolution of the Board of Directors put their signatures on S. address of all partners is written on the pad. After completing each and every formality. Articles of the Association Resolution of the Board of Director. DOCUMENTATION REQUIRED Memorandum of Association. DOCUMENTATIONS Copy of N. In order to facilitate their transaction with outside parties. The same process of verification and admission of the signatures is repeated on Form-A and next of Kin area. Partner ship deed in case registered partnership firm. In case of non -registered partnership firm. LIMITED COMPANY ACCOUNT This account is for limited companies. Letter showing the implied Authority of one or more partners to act on behalf of the firm. liable for all acts of the firm. The partners in the partnership firm are liable for the acts of the firm jointly and severely.S card and is stamped “Verified” customer signatures are admitted by stamping “Admitting” near signature and again signatures on S. Part-Iv is also filled. . Every partner has in a firm has an implied authority bind his co. understanding on behalf of the firm to remain Name.S card are admitted in the same way. Certificate of Incorporation.PARTNER SHIP ACCOUNT The account is opened in the firm name and all partner designate one two persons to act on behalf of the partner ship firmer all acts on behalf of firm.
After completing each and every formality.” ISSUING PROCEDURE Signatures on cheque – book requisition are verified by matching with signatures on SS. address. A/c number is stamped over the leaves of cheque – book and finally authorized person affix his signature over the debit voucher and he voucher is attached from the cheque book and is handed over to the customer . CHECK BOOK ISSUING Check books are issued only for checking account such as current Account. AKBL issues letter of thanks to “Account opener” and “account opener” and ” Account Introducer ” for the trust the have on AKBL. The name of A/c holder and date of cheque – book issuance is written on cheque – book requisition the account-opening officer puts his initials on requisition leave. saving Account and ASDA Account. But to surrender the cheque book yet if some leaves are yet to be write to the bank as a necessary requirements for closing the account. PROCEDURE The customer for individuals account write an application to the manager of the bank an a simple paper about the closing of his account with the bank (In case of proprietor ship partnership and limited company account the application should be written an firm or company letter –head) The individual or in case of other type. ACCOUNT CLOSING Account is closed on the written request of the customer AKBL free of cost. account holder’s name are mentioned in the cheque. Cheque – book leaves number. The cheque book is then torn from one side and is attached with the application. Then these cheques are sent to clearing official who clears these checks at SBP from other banks. Accountant is open in the computer by writing name. . They are not issued for other fixed and term deposits because of their Long term Accounts “nature.book is made by mentioning the and the total of sum of excise duty and provincial tax. account number.proprietor firm and company surrender the cheque book to the bank. A/C Number etc. LETTER OF THE THANKS At the start of the letter 2nd day. RECEIVING INWARD CHEQUES Another responsibility and function of account Opening Department is to receive Inward cheques for collection of other Banks as well as of AKBL .
and resolution of board of directors in case of limited company account are attached with the form. Mr. ATM CARD ATM – Cards are only issue to Account Holder ISSUING PROCEDURE The person. computer print is also received from the computer. term deposits and Askari Bachat Certificate. Sheeraz Hassan deals this department.for 1st time issuance as charges for a card Biannually takes Rs 75. first open the account within the blank. The next day the activity is separated some . Lastly. The account opening form of the account holder is taken from the account-opening file.CARDS DEPARTMENT This department deals in issuing ATM-Card. Fathers name account number and N. list of card holder is issued and then after 15 days cards are send to ACBL’s issuing branch. it is written in “Red Ink on the form that account closed” and “Date of account closing. 350/.Card number are mentioned. all the vouchers that have been posted at the computer are scrutinized in accounts department.It also deals in expression of finance of the bank. The card and list are not sent simultaneously in order to avoid any mishandling. Company account resolution of the board of directors is also obtained to attach it with the application. First. cheque book. card is also attached with the application form. ACBL takes Rs. the application package is sent to head office 50(for 10 leaves) ACBL head office takes a period of 3-4 weeks for preparing and processing of ATM – cards.e. ACCOUNTING DEPARTMENT Accounts department is a department which deals and checks all the activity of all the department . CHECKING BANK’S DAILY ACTIVITY Accounts department deals and checks the entire working of the Branch. ATM.I. Then he fills the ATM application form in which name of account holder. Salary payment is also one function of the bank. The “End of Day” i. After completing this process.” EVERYDAY POSTING Following transaction of cheque book is posted:Dr_____________ party A/c Rs 5/leave.I. In case of Ltd. A copy of N. and the application.
Payment Procedure: The Bank receives DD. . Then next day activity separated some statements from the “End of Day”.e. Bank earns a lot of income. The Bank charges such as commission. All the vouchers and instruction are checked individually are checked individually against the computer printouts. excise duty is charged as per effective schedule of charges. Any abnormality if occurs. By providing this service to the customer. Vouchers are prepared and posted. The entry is made in the DD issuing register. If he fills the tax exemption form. tax is not charged. the cashier counts the amount and signs the DD application and enters it in the register.statements from the “End of Day”. Also customer is able to meet its day to day financial requirements. After checking they are signed by Mr. Then the officer of remittance department signs it and operation manager counter signs it. The vouchers are matched with the entries in the statements. payable at some other place (branch) of the same Bank. is immediately dealt with. The main function of the remittance department is to transmit money from one place to another. issued by the branch of the Bank drawn i. If two Banks are involved then the DD is sent to other Bank but in other case it is handed over to the applicant. Shafiq. In case of cash deposit. DD advises are printed and mailed to the respective branch. he fills in relevant information and signs it. The officer checks the information form.Naeem Shehzad and the internal auditor Mr. Demand Draft: It is an instrument payable on demand for which value has been received. Issuance Procedure: A demand draft application is given to the customer. . DD is given to the customer. OTHER ACTIVITIES Preparation of daily bank positions statement Payment of salaries Preparation of the statements Depreciation calculation Lockers Issuance REMITTANCE DEPARTMENT: The need of remittance is commonly felt is commercial life particularly and in everyday life generally. The vouchers are sorted out head wise.
3% are applied. Procedure: The cheques that are of other cities are separated. The concerned officer checks the form. Then the pay order receipt is filled accordingly. It is also called confirmed cheque. Vouchers are given for posting and the entry that was made in the register is closed i. DD credit is attached with the vouchers and given for posting to the computer. stamped and handed over to the applicant as a receipt. PO is posted at the computer. Pay Order: It is an instrument issued for payment in same city. A cash memo is signed. The numbers are checked and signatures are verified. When DD is received the test numbers are checked and the payment is made. They are entered in the OBC Register and OBC numbers are given to them. It is normally referred to as Banker’s cheque. two authorized officers of the branch sign the receipt. because Bank issues this on it own guarantee. Then the amount is credited to the account of the customer or pain in cash. Pay order issued from on e branch can only be payable from the same branch. DD payable is Nil. The respective cheques are attached with the schedule. Payment Procedure: On presentation of the pay order receipt. The cash amount of the pay order is received. The DD credit advice is received through mail. An entry is made on the DD payable register and the vouchers are made. Then the authorized officer signs it after checking the pay order.e. Outward Bills for Collection: The bills. An entry is made in the pay order issue register. PO entry is made in the PO issue register. Counter foil is also filled. Bank charges (or commission) as per the schedule of charges and the withholding tax of 0. He fills in the details and signs it. A voucher is also made and posted at the computer. which are received by the Bank and sent to other cities (branches) for the local clearing in that city. Issuance Procedure: The standard form is given to the customer. The OBC forwarding schedules are prepared for different branches. . The order is then handed over to the applicant after obtaining his signature on the PO Form. are calledOutward Bills for Collection.
Foreign Currency can be deposited by: Remittance received from abroad .D card is also not necessary. Opening of Foreign Currency Accounts in the joint names of residents/non-residents is permissible. On clearing. The cheques are entered in the IBC register. if someone has. either within the Pakistan or outside the Pakistan. The OBC numbers are checked from the OBC register. can open the foreign currency account. According to foreign exchange rules and regulation every citizen of Pakistan. The office copy is filled and original schedule is mailed. Procedure: The OBC of other branches will be the IBC of this branch. which are received by the Bank from other branches out of the city for local clearing are called Inward Bills for Collection. well and good. FEATURES OF FOREIGN CURRENCY ACCOUNTS There will be legal protection for the account holders. After realization. Commission charges are deducted from the account. The cheques are lodged for clearing. Inward Bills for Collection: The bills. FOREIGN TRADE DEPARTMENT Foreign trade department deals in: Foreign currency account Exports Imports FOREIGN CURRENCY ACCOUNT Mainly this account deals in individual. So an OBC forwarding schedule is received by mail. All foreign nationals and foreign Companies in Pakistan or abroad can open Foreign Currency Accounts. I. the respective Banks send back the OBCs along with the IBCA (Inter Branch Credit Advice). after that entries are made. personal and companies account CRITERIA FOR OPENING FOREIGN CURRENCY ACCOUNT There are not hard and fast rules for becoming the Foreign Currency Account holder. otherwise no restriction will be there for him. two vouchers are prepared and posted. Bank wants only introduction of the Client and very little about the background. At the end of the day. an IBCA is prepared and mailed to the branch from where the cheque was received. The IBC numbers are allotted to them. Resident firms and Resident Companies including investment Banks can open Foreign Currency Accounts.
These incentives reinforce and motivated the people to invest in foreign currency accounts rather to keep the foreign currency idle. one place to another. Foreign currency accounts can easily be transferred from one person to another. FACILITIES This account provides following facilities: Traveling quota Out ward remittances In ward remittances receiving To make remittances procedure flexible EXPORT Mainly export deals in: Negotiation of documents Sending the documents for collection Pre-shipment financing Post-shipment financing Remittance against agent commission Forward covered booking Handling the documents for negotiation according to the UCP 500 (uniform custom and practices) Handling the documents for collection according to URR (uniform rules for collection) Submission of monthly returns to SBP regarding the export on form A-2/O-2 IMPORT Opening the letter of credit Scrutinize the documents receive from flowing bank under letter of credit. Arrange forward cover booking regarding import payments Also arrange forward cover booking for letter of credit open other then ACBL Submission of monthly returns to SBP regarding the import on form I SWOT ANALYSIS SWOT (Strength. Opportunities & Threats) analysis of AKBL is described below: Strengths: . Foreign currency Accounts can be used for payment of purchases at Duty Free shops. The account holder can transfer the funds freely. in any currency to any part of the world. No Zakat will be deducted on these accounts. no Income Tax deduction. Weaknesses. no Wealth Tax deduction will be there. Account to UCP 500 and extending the credit facility to the importer informs FIM (finance against imported merchandise) FATR (finance against trust receipt). which he wants to deposit that from where he got that money. with in the ACBL Branches or in other Bank. Foreign Currency Notes There will be no restriction and questioning to him about the currency.
which are continuously increasing its products and marketing aggressively. Weaknesses: AKBL has lesser number of branches as compared to many other branches. 13. Financial Analysis: Financial Highlights The current year’s profit (2007) after taxation of the bank stood at Rs.197.030 reflect on the improving market image of Askari Bank as a formidable financial institution.s 5. which would decrease deposits. It has an opportunity to do aggressive marketing to increase its business. is taking very bold steps to promote IT in Pakistan.012 as compared to Rs. 11. Bank should boost the product development and increase the range of facilities offered for customers. The Bank has also started ATM facility in most of its branches. It may cause its customers to shift to competitors. The deposits decreased by 16.521. Selection process is not on merit due to which competent persons cannot be selected. Because human resource is the most valuable resource. One distinctive feature of the Bank is that it is the only Bank working for the welfare of army officers. AKBL may increase its branches in competitive areas Threats: AKBL has many competitors. . Bank should lend to very sound parties and increase its payment rate. The loans and advances figure stood at R.424 as against Rs. which was established by Army Welfare Trust. Remittance Department is working very efficiently in transferring the funds of people due to this system. The human resource department is not performing the function of selection and recruitment very effectively. The productivity of the Bank is very good.593 as on 31 Dec 2006. AKBL has an opportunity to improve in technology.681. 24-hour Banking is new trend in Pakistan and AKBL has also taken apart in this trend. Bank is weak in its credit management.974 for last year.044. Due to the increased bad situation of Pakistan in which army is considered to be involved increase the frequency of withdrawals.249. AKBL have strength that most of the imports which are done in Multan are handle by AKBL Multan. 2. army officers can not avail the benefits of their own Bank. AKBL is surrounded by many competitors. 2. Bank is providing a high quality service to its customers. AKBL has got a well-developed on-line system in most of its branches. Some other Banks have competent taskforce. Due to this problem. which is also a threat for AKBL.49% to Rs. Opportunities: Govt.
The basic inputs to ratio analysis are the firm’s income statement and balance sheet.11 0.22 0.03 0.11 0. Earning assets ASSETS 2007 .02 2006 1.12 0.04 0. advances.09 0. Ratios Current ratio Total asst turnover Debt ratio Gross Profit margin Operating profit margin Net profit margin ROA Earning asset to total assets 2007 1.22 0. operating fixed assets and other assets on the loans and advances bank can make profit by giving or investing in some where so Askari Bank has increased it’s earning assets in the year 2007 as compared to the previous year that show the good trend in the profitability of the Askari bank and the customer believe on the Bank.Ratio Analysis The information contained in the four basic financial statements is of major significance to various interested parties who regularly need to have relative measures of the company’s operating efficiency.93 0. Relative is the key word here.02 Earning assets are the assets which are very important for any company for the bank earning assets are the assets on which bank can earn its profit which may includes loans.93 0. Ratio analysis involves methods of calculating and interpreting financial ratios to analyze and monitor the firm’s performance.21 0. because the analysis of financial statements is based on the use of ratios or relative values. Well bank also has increased it’s earning assets ratio shows the more profitability of the bank as it can be shown by the profit and loss account of the 2007 that shows the net mark up income more for the year as compared to the previous year so bank is going gradually to the more profitability by giving more advances and loans.26 0. Ratio tells that on what percentage earning assets contribute the total assets.
Why is it so it has different reasons these are as follows Profit before taxation was more in the previous year as compared to the year 2007 because bank has low expenses and less provision for the bad debts and also bank has small investments and limited loans and advances but in 2007 situation has changed and bank increased its loans and advances. 176636847 182171885 This ratio indicates the how much of earning assets take part in making of the profit before taxation. This ratio is decreased during the year.681.Cash Balances with other banks Lending Investments Advances Operating fixed assets Total earning Assets Other assets 13356055 3497054 14444143 39431005 100780162 5128428 176636847 5535038 TOTAL Total Earning Assets: Formula: Earning Assets / Total Assets = 176636847 / 182171885 = 0.012 / 176636847 . Earning assets were also low in the previous year as compared to the 2007 so overall ratio has been decreased but shows the good trend for the making of long term planning Formula: Profit after tax / earning assets = 2.969616 Return on earning asset Rs.
289 Current ratio .240 / 2. Well in the year 2007 bank’s this ratio has been increased to a great extent due to different reasons theses are as follows. Consequently. Provisions and bad debts also increased in the year 2007 because bank also has invested more in this year and ad more also granted more loans. But profit has not increased with the same ratio because Bank has low mark up rates Bank has more capacity for provisions Formula: Loans / deposit = 14444143 / 11. These are generally referred to as no performing loans.920. Well bank has increased its loans to deposits ratio in the year 2007 showing its more deposits as well more loans and that is good for the bank to remain in the market and to penetrate in the market. But if a bank has low deposits then obviously it will give low loans because bank gives it’s loans by the deposits and earn on the loans then pay mark up on the deposits to the customers.= .197. the higher the provision for loan losses should probably be.015 Loan loss coverage ratio This important figure is a reserve account to cover unexpected defaults on loans by borrowers. Profit before taxation is low for the 2007 due to more expenses because bank is in expanding mode that’s why its expenses are increasing day by day.299. this would reduce net income and earnings per share. Formula: Provision against non-performing loan and advances / profit (loss) before tax = 3.785 = 1.70 Loan to deposit Well there is a concept that bank’s loans are its assets while its deposits are liabilities.424 = 1. The higher the no performing loan and charge-off percentages.
Well this ratio has been decreased but nt much decreased during the year to a small extent due to Bank has increased its deposits so liabilities have been increased.2369 -52.93.93 and in 2007 its again 0. Net Profit Margin: Net profit margin of a bank has been increased from 0.09852 37. HORIZONTAL ANALYSIS Balance sheet accounts 2007 ASSETS 2006 %age Cash balances wid other banks Lendings Investments 13356055 3497054 14444143 39431005 14879230 7333002 8392950 28625915 -1523175 -3835948 6051193 10805090 -10.21.3107 72.03 Debt Ratio: Debt ratio remained the same in previous year it was . So overall we can say bank is the liquid enough to pay its liabilities Formula : Current assets / current liabilities = 171508419 / 166214583 = 1.12 to 0. Bank has not decreased its debt ratio in 2007. to express the idea of reviewing data for a number of consecutive periods. It is distinguished from vertical analysis or static analysis which refers to the review of the financial information of only one accounting period. Bank has increased its assets as well to overcome the liabilities.This ratio indicates the liquidity of the bank.74583 . This comparison of data over time is called ashorizontal or trend analysis. Horizontal and vertical analysis Comparing analytical data for a current period with similar computations for prior years affords some basis for judging whether the condition of the business is improving or worsening.
fixd assets defferd tax assets other assets 100780162 5128428 99179372 3810331 1600790 1318097 1.719899 LIABILITIES bills payable Borrowings deposits&other acc sub-ord loans liabl against assets deferred tax liab other liab 2627051 17553525 143036707 2997300 1839077 14964087 131839283 2998500 787974 2589438 11197424 -1200 42.17036 TOTAL 182171885 166033588 16138297 9.30435 8.97197 2007 2006 %age interest earned 15143241 12596921 2546320 20.59272 5535038 3812788 1722250 45.614035 34.493238 -0.9608 23.69021 TOTAL 169905898 154980358 14925540 9.84617 17.21383 .04002 471519 3219796 736298 2603113 -264779 616683 -35.Advances o.630601 Net assets PROFIT and loss accounts 12265987 11053230 1212757 10.
comm.38554 12.5355 fee.375 -174.514 interest income after provision Non markup/interest income 2535876 4491095 -1955219 -43.brockerage income dividends income income from dealing in for curr gain on sale of inv unleasing gain other income 1072868 137079 655761 2361251 1728 336809 1013660 109326 584344 112474 -2308 321758 59208 27753 71417 2248777 4036 15051 5.87 4.841012 25.677739 total non markup/interest income 4565496 2139254 2426242 113.104045 .91223 loans & advances value of investment bad debts written off 3920240 1501 1128137 376 2792103 1125 247.2021 3921741 1128513 2793228 247.22174 1999.interest expensed 8685624 6977313 1708311 24.4968 299.4153 7101372 6630349 471023 7.48379 net mark up/interest income 6457617 5619608 838009 14.
2852 Profit before taxation current yrs prior yrs Deferred 98535 -233950 -245812 983875 -885340 -89.521 -381227 Profit after taxation 2681012 1096881 2249974 -1478108 431038 -134.14038 total non markup/interest expense 4801587 3283494 1518093 46. VERTICAL ANALYSIS balance sheet accounts 4480991 3867571 613420 15.985 113006 -358818 -317.756 19.27487 profit available for appr.Non markup/interest expense admin exp other pro/write offs other charges 12051 6141 5910 96.8606 2007 2006 .15747 profit brought forward 1799979 1617597 182382 11.2384 4789536 3277353 1512183 46.23407 2299785 3346855 -1047070 -31.
51744357 1.961578 4.443463 1.40519 1.18030698 7.ASSETS cash balances wid other banks lendings Investments advances o.567823 TOTAL 169905898 154980358 Net assets 12265987 11053230 .fixd assets defferd tax assets other assets 13356055 3497054 14444143 39431005 100780162 5128428 7.296396 TOTAL 182171885 166033588 LIABILITIES Bills payable Borrowings deposits&other acc Sub-ord loans liabl against assets deferred tax liab other liab 2627051 17553525 143036707 2997300 1.64494538 55.294916 5535038 3.645314259 1839077 14964087 131839283 2998500 1.815158881 14879230 7333002 8392950 28625915 99179372 3810331 8.012687 79.73452 2.331567657 63.80596 471519 3219796 0.24104 59.442072689 9.416577 5.635693784 78.107654 9.767449461 736298 2603113 0.038360173 3812788 2.928854115 21.054971 17.32146851 2.258831927 1.
On the liabilities side bank also has increased it’s bills payable that shows that bank has certain increased in the liabilities as well bank’s deposits also increased showing the great penetration in the market place as well customer’s believe on the bank to make deposits that’s why bank’s mark up expense has been increased. In 2007 bank not lend money to the financial institutions. Overall bank’s financial position in the marketplace has been increased in terms of deposits and advances. Bank’s deposits and other accounts have not been increased to the same extent as bank is giving advances.Findings on the basis of analysis By the horizontal or comparative analysis in which base year is taken as 2006 certain changes are measured in the Bank’s performance.g Cash & balances with treasury banks have been increased that shows the bank has fulfilled and improved SBP requirements because of maintenance of foreign currency as well as Pakistani currency with other banks due to this balances with the other banks whether outside the Pakistan or inside the Pakistan have been increased. Lending to financial institutions not done in the last year due to more investments done by the bank and by giving more and more advances to the customers but this also has increased the bad debts and provisions of the bank as compared to the previous years. While investment have been decreased due to making balances with the other banks and so advances increased by giving more to the customers so earning power also increased. Well that shows a positive trend because bank expenses would be automatically decreased that are due to cash management. Bank’s operating fixed assets have been decreased to a small extent due to this profit also is increased because bank is the service organization and for service organizations no need of more operating fixed assets. Operating assets has been decreased so that is in favor of the bank. Equity also increased in the previous year but bank’s profit has been decreased because bank has invested so much and in the development process so increased in the expenses. . e. All these reasons are favorable to the bank in year 2006 because at one side bank’s assets have been increased in the form of advances and at other side markup income increased due to deposits because bank can more invest it Balance Sheet’s one portion that is Assets shows certain changes during the year. Cash with other banks and balances with other banks gradually increased in the time line showing the bank’s good performance and this indicate that bank can earn more by making balances with the other banks.
. Overall result is less profit for 2007 as compared to 2006. Recommendations: Already the bank is having a good infrastructure not much recommendations are needed as a manager but few can work : Customers should be given some sort of facilities which can convince people for investment and go for Askari bank for Exports n Imports. There is not a proper environment of customer dealing on that floor that’s why customer feels difficulty in that. Accounts department was much congested. corporate loans etc which was studied in Financial Management. income statements. Balance Sheet shows the assets are more contributed by the Advances and liabilities are more contributed y the Deposits that are favorable for the Bank.Bank’s net assets have been decreased because of less operating fixed assets and also due to increase in liabilities. After biannually closing of bank there should be a get together of all the employees of bank which can give them a healthy atmosphere to work. Applications of Class Room Concept: In Accounts department there was an implementation of Financial Accounting in making balance sheets. there is needed to work on that. But this has certain different reasons these are as follows Increase cash and balances with the other banks More advances Increase in deposits All these reasons are favorable to the bank in year 2007 because at one side bank’s assets have been increased in the form of advances and at other side markup income increased due to deposits because bank can more invest it. so area of that department should be extended. calculation of depreciation etc In credits department there was an implementation of different categories of loans like personal loans. Few of the employees used to interfere in others work so they should be strictly advised to perform their own duty well. Fist floor of bank is much congested.
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