Business environments are becoming more and more complex with the passage of time. To understand and deal with such riddle phenomena, one needs a lot of energy and knowledge. So business education has become an evolving science, which helps to solve the business problems. Academic education provides a general knowledge about business decisions and policies. This Internship -- as an integral part of MBA program, provides the opportunity of peeping into real professional life of the business people. It enables us to evaluate and understand the practical application of all the terms & techniques that we have studied during our course work. I was assigned to complete my Internship comprising practical work of 6-weeks, at Askari Commercial Bank Limited, Multan. In this Internship Report I’ve tried my level best to explain each and every significant aspect of the branch comprehensively.

Praise to Almighty Allah, who bestowed upon me the potential and ability to accomplish the task of the work. I wish to express deep sense of gratitude to, Mr. Muhammad Rizwan, Director Placement & Internship, who provided me this opportunity to achieve the practical experience and for his valuable supervision and helpful suggestions in the completion of this report. I also wish to acknowledge Zubair Ahmad Sheikh--Branch Manager, for their cooperation and proper guidance given to me from time to time to complete this assignment.


The goal of the Department of Business Administration is to develop and provide professionally trained managers by offering broad knowledge in a number of business areas and thus preparing the students for versatile and successful management careers. As a prerequisite of MBA Program, all the students are required to under go a six-week internship during the summer vacation. For this purpose the Department sends letters to highly reputable business/industrial/commercial organizations to take their approval for accommodating the students. The internship helps the students to gain some understanding of how the organizations formulate strategies to achieve their stated goals and at the same time enables the students to face challenges in their professional life by sharpening their skills of decision making, leadership, communication and team work. The organization assigned to me was the Askari Commercial Bank LTD. Firstly I got my letter issued from the Department and presented it to Mr. Zubair Sheikh, the Operations Manager at ACBL Multan. After one week they have received the acceptance letter from their Head Office.So my internship was started on 26-06-00.

Formal Definition: "Banking is an institution transacting the business of accepting for the purpose of money from public, repayable on demand or otherwise and withdrawal by cheque, draft, order and includes any post office saving bank". These are the following types of banks
• • • • • •

Central Bank Commercial Bank Industrial Bank Exchange Bank Saving Bank Mortgage Bank

Commercial Banks: -

Firstly I have gone through different types of the accounts and the operations of different accounts. I have also gone through the requirements of different types of accounts. Zubir Sheikh. Mr. I was assigned to work in Accounts Opening Department and Term Deposit/ATM Department. I learnt following things in these two departments: In the Accounts Opening Department their was Sir Rehmet who is very much cooperative. The branch is progressing rapidly. During the first two weeks of my internship at ACBL. They are dedicated their work. Under the dynamic leadership of Vice President Mr. Agro based area constituting growers and granaries Army Offices & Fort Colony Educational Institution The total strength of staff in ACBL Multan is 34. Askari Commercial Bank Limited Multan: Askari Commercial Bank Limited Multan was inaugurated on December 28.Tariq and Operation Manager.Commercial banks are companies that transact business of banking in Pakistan. For Example the things that must be consider while opening the account. It is a prosperous branch striding towards great achievements. There are different mandates available for different accounts The whole system is computerized that’s why at the end of the day they post the whole information on their computers. I have opened accounts of so many people myself. It is located on Abdali Road Opposite to PIA Office. At the time of its establishment the factors that were considered are as follows • • • • • Multan zone is covering a large population.1994. Multan City is linked to many big cities. Commercial banks have constituted the most important source of institutional credit in the economy of Pakistan. and when it is possible to do this thing because there are some rules in . For closing the accounts and also for issuing the checkbooks they insert the information in their computers. I have also studied the cases in which the title account is transferred to some other people.

And a new more fast system is going to be installed in Multan Branch. They calculate it on the computers but they also keep the record manually. For the second week I have worked in the ATM/Term Deposit Department. In this Department almost all the work was done manually except Demand Draft. In that department I have learn that how the record is maintained in the bank. And how they calculate their interest. After that three days I have worked in Credit Card Department. So he has also told me that when and where it is possible to fulfil the demand of the customer.In that Department there is no work at the end of the month but he has told me about different types of the credit cards and he has also told me the process of issuing the card. Telegraphic Transfer (TT). And how the operations of the whole day are checked in the Accounts Department. I have also gone through different schemes and the profits they give on different schemes. In Remittances Department I saw the issuance of Demand Draft (DD). In that department the Term Deposits are also maintained. In addition to all these things I have also learn that how to issue the payslip and payorder. I saw the process of billing in that department. They are having approximately 1700 customers of ATM Cards in Multan. Because the practice is that the people who request for opening the account they at the same time apply for ATM Card. They again calculate the interest on these deposits on computer. in which the system was installed by their Head Office which is now-a-days being changed. I have also made the voucher register for the whole month of July 2000.the bank. In that department there are so many customers. . In that Department there is only one person who is MBA from our Department. During these two weeks I have also learn how to record the entries in their registers and how to record the receipts and payments manually. Mail Transfer and passing relevant vouchers. for this purpose they are having computers. After that three days I have worked in the Accounts Department. I have also studied the report that was sent to them when the ATM operations was started in Multan in January this year.I have learn so many other things but they have not told me about the statements which are made in this department.

Lahore PRESIDENT MANAGING DIRECTOR . they have to write comprehensive reports about respective organizations where they did their internships and have to submit these reports to the Department. had been mentioned. For this purpose I used my observation. in which brief description of the work that was assigned to me at the bank. their interactions with their customers. I have tried to give the information according to the Departments in the bank. ORGANIZATION CHARTS Organogram Of Askeri Commercial Bank Limited Head Office. I observed the behavior of the staff at the branch. I tried to sort out as much information about the ACBL. as possible. I used to talk to all staff members for finding out their views about the management. I used to send fortnightly report regularly to the Director Internship Program. So in order to fulfil this obligation. But I have learned less in this week because at the month start there is a different type of work. Whenever I got the opportunity.e. their attitude towards their jobs. There is also another obligation for the students of MBA i. their mutual working relationships and the style of management.After that my last week was for Credit Department and Foreign Exchange Department. During my internship at ACBL. As far as my internship report is concerned.

C.V.F.P = Senior Vice President .D A.D A.D = Advances Department A.D (VP) F.D = Accounts Department C.E.D = Foreign Exchange Department A.D = Computer Department S.E.D (SVP) (SVP) (SVP) .

Multan MANAGER .V.P = Vice President Organogram Of Askeri Commercial Bank Limited ABDALI ROAD.

Advances Gen.Banking Cash F. Exchange Department Department Department Department Cash Cash Section Section Receipt Payment .

Clearing Remittance Accounts Computer Section Section Section Section A/C Open. Section .


the Branch Managers & other officers need to take due care and exercise required precautions at the time of opening accounts. This .Account Opening Department The banking history is replete with various instances of fraud. These frauds are largely attributable to incorrect opening of accounts. Therefore in order to prevent these frauds.

This is the time when they have a slight edge over the customer when he is willing to impart as much information about his personal status and business etc. Such deposit creation is done through opening an account in the Bank. Savings Account. Banks borrowing is mostly in the form of deposits. In ACBL Multan Mr. always ranks at top priority and much of the bank’s operational success depends on it. This in fact is the only opportunity when they will be able to talk to the prospective customers in a friendly and frank atmosphere. address and occupation. Therefore it is very much necessary that due care and proper procedure be followed up for opening different types of accounts for various types of customers. Borrowing funds from different sources has become an essential feature of today's business enterprises. his correct name. Askari Special Deposit Account. The borrowed capitals of a bank are much greater then there own capital. At the time of opening of the accounts. These deposits are lent out to different parties. Askari Bachat Certificate. But in the case of a bank borrowing funds from outside parties is all the more vital because the entire banking system is based on it. bank officers should tactfully obtain as much information as possible about the integrity and character of the person. Rehmet Ali is operating the account-opening department along with performing some auxiliary functions of checkbook Issuing. Current Account: - .aspect of banking is full of delicacies. Types of Accounts: The Askeri Commercial Bank LTD is having accounts of the customers to be classified as follows: • • • • Current account.

The minimum balance requirement is Rs.999. the rate of return for 3-years is 12%.00% for Rs. That’s why it is similar to current account. That's is why it is not a chequing account. They are paid on demand. It is also chequing account because cheques can be drawn on it.4.000/. The payment of return is on monthly basis rather than on maturity of deposits.the individuals open such accounts for saving purpose persons belonging to Armed forces also open this account. 25000/. Interest is paid on it at the rate of 8. As there is no profit paid on this account it is also called cheqing account because cheques can be drawn on it. he incurs the obligation of the paying all cheques drawn against him to the extent of the balance in the account. if AB C is for 5-years the rate of return is 13%. 0.50% six monthly. The payment of return is monthly.50. The profit on PLSsaving Accounts in ACBL is paid on the basis of profit and loss sharing at the rate of 8.and maximum balance requirement is Rs. Askari special Deposit Accountant: ASDA account is interest bearing current account. It is necessary for this account that the client must maintain a minimum balance of Rs.05 Million at the end of the month. Askari Bachat Account: ABCs are long term fixed deposit for 3 and 5 years. Because in such account the balance is kept for either '3' or '5' years within the bank no cheque is drawn on Rs. where as the rate of return with aspect to the amount of minimum deposit. When a banker accepts a demand deposit. . It is for only transaction purposes. Current account is mostly opened for business. It is mostly opened by Business but individuals too open this account.100/. If ABC is for 3-years. Saving Account: The purpose of this account is to induce the habit of saving.In current account there is no interest on it. The minimum deposit for opening the account is Rs.999/-. 1.0 Million. The rate increases as the balance increases in the account.

at the time of opening the account. Each and every column of the account opening form should be neatly and correctly filled in with necessary details. As such all requisites of the contract are necessarily be fulfilled. c. The staff members generally should not introduce the account. 4. In case the person introducing the account does not call at the bank. opening form in presence of the introducer who is then aware of the particulars furnished and can corroborate the same. He must be of sane mind. in this concern the following precautions are to be observed: • • • • As far as possible the person introducing the account should attend the bank personally with the perspective customer. Account must be properly introduced. They will introduce accounts only for those persons who are personally known to them and whose credentials are absolutely clean. As much information as possible. line and place of business. the officer must see that the above qualifications of the customer are established. extreme care should be taken while verifying his signature and genuineness. He must be major in age. the intended customer must have following characteristics: a. He must not be bewared under any law from entering into any contract. As far as the prospective customer should complete possible. He must not be insolvent and bankrupt. 3. the account . d. must be elicited from the prospective customer relating to his means. while opening the accounts.Account opening procedure: When a customer opens an account. Therefore. Introduction from persons having doubtful dealings with the bank should be discretely declined. For instance. GENERAL GUIDELINES FOR OFFICERS FOR OPENING THE ACCOUNTS: Here are some essential points that must not escape the attention of the officers while opening the accounts: 1. 2. he enters into a contractual relationship with the bank. b.

11. Letter of thanks should be sent to the introducer the day the account opened. In case. along with the copy of National Identity Card requirement he or she must come in person for opening the account. No account should be opened in the name of an undercharged insolvent. 6. Signature on the account opening form as well as specimen signature card must be put by the customer in presence of the Bank Officers/Managers who will attest them preferably in presence of the introducer. limited company account and for the account of club society or association as explained below: 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. when cheques form initial deposits. 7. 10. 9. . No chequebook should be issued to the mew account openers unless their accounts are properly introduced.5. Account may be opened with cash or deposit of cheque. joint account. proprietorship. Number of the customer’s National Identity Card should be correctly recorded in the account opening form and a copy of it should be kept on record. partnership. For different type of accounts the operation/procedure is also different. The description “Private Service” or “Business” is insufficient. Specific information concerning the profession or occupation of the prospective customer should be recorded in the account opening form. For illiterate person and pardanoshin Women. For Example it is different for individual account. it is incumbent upon the Branch Managers to satisfy themselves additionally that title of the account holder is genuine for the cheque deposited. Documentation Requirement: For literate person copy of National Identity Card is required as a primary requirement. This precaution would accomplish the purpose of intimating the introducer that the account has been opened on strength of his introduction thereby inviting disclaimer if untrue. 8.

OPERATION: • • • • • • • The person place a "Check Mark " in the type of account and type of operation required The person fills the form and fixes his two or four signature in the signature space and get introduced his account. Proprietorship Account: - . Any two persons can open joint account. Documentation: For joint account copy of N-I-C Card of all the persons is obtained other things remaining same as in individuals account. The person deposits the initial amount for opening account on to the cash counter. There is one more thing that must be filled by the person. On the back of the SS Card the name. Joint Account: When two or more persons open an account in their name. mother. And they also must specify that the account will operate singly by any person or jointly. it is called joint Account. husband/wife or anyone else and also affix his signature to certify it. where he authorized any person may be his father. he signed a "Vernacular form " where under take that a fixed signature is original and his own signature. The next day is the opening of account. If the person put his signature in Urdu or any language other than English. telephone number and the address of the person is filled. he fills in “next of Kin”. It is needed that in the absence of the person the bank can contact that person. The person put her /his signature on the signature specimen Card (SS CARD). The persons fill the form and also fill the separate portion of the form that is for the joint accounts. Signature of both the persons are obtained on the form and SS Card.

Articles of the Association Resolution of the Board of Director. Letter showing the Limited Authority of one or more partners to act on behalf of the firm.I.When any person who is single owner of his/her business opens an account in his firm name. For this kind of account. In that case every partner is liable for any thing and both are having authority for drawing and enclosing the cheques. an application for opening the account on the firm letter -pad is required alongwith the N-I-C. certificate of commence business . this account is called proprietorship account.C card of all partners Application to open the account on the firm letter pad. Certificate of Incorporation. Partnership Account: When any firm in which two persons are partners of each other opens the account then it is called partnership account.Card of proprietor. • • • • • Name. In this account it is specified that two or more persons act on behalf of the partnership firm or all acts on behalf of firm. Limited Company Account: While opening the account of any limited company the officer must ensure the following things: • • • • • Memorandum of Association. Documentation: Following things are required for opening the partnership account. address of all partners is written on the pad Copy of N. Partner ship deed in case registered partnership firm.

cheque book is usually issued the next day. the forms are signed from manages of the branch after which the forms are stamped and the whole information is posted in their computers and the forms are posted into the files of account opening forms. There is excise duty and provincial tax carried on Chequebook leave.. Check books are issued only for checquing account such as current Account. For example 25leaves and 50 leaves Chequebook are issued for current and ASDA accounts. . however they too are issued on the same day depends on the situation for example the customer is well known to the bank and already he is having accounts in the bank etc. They are not issued for other term deposits because of their Long term Accounts “nature.” When an account is opened. saving Account and ASDA Account. Chequebook leaves varies with the nature of the account. There is one more responsibility in this department and which is issuing the checkbooks. Where as 10 – leaves and 25 leaves chequebooks are for saving accounts. After that cheque – books are issued whenever customers need chequebooks. After completing all this process. The account opening form is attached in the annexture.




And the min.Accepting deposits is one of the important functions of a bank. The surplus of money in a country is also influenced by the aggregate quantity of bank loans. The rate of return on this account is 9. as the bank has to offer suitable rates of interest on these deposits to the depositors or simply have to repay them on demand. The term deposit accounts vary one month to 5 years. ACBLs Term deposits are of different types one of them is "Askari" Advantage one month. Deposits are as crucial to a bank as soul is to the body of a person. These deposits are useful in many ways as they provide source of earning for the bank and help in meeting the consumption and business needs of community. Term Deposits: A term deposit is a deposit that is made for a certain periods of time. and the payment of return is on Roll over Basis. Bank performs its business with depositor’s funds and makes profit out of these deposited funds. In ACBL the Deposit Department and ATM Department is the same. balance requirement is Rs. ATM. And the payment of the return is given at the maturity of the deposit. The banks receive surplus income of the individuals. companies in the form of deposits. At the end of the specific period.75%. All the deposits are infect liability of the bank. the customer is allowed to with draw the principle amount.for all other nine accounts. The Deposits Department of the bank performs this function.5000/. The amount is seriated in any one of the checking Accounts of the depositors. 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. It is the lifeline of the bank.Cards: - .

the application package is sent to head office ACBL head office takes a period of 3-4 weeks for preparing and processing of ATM – cards. The pin codes of the ATM Cards are sent by Karachi Branch and they are sealed so that they remain confidential.Issuing ATM –cards is also a responsibility of Term Deposit Department. .I. 7. ACBL takes Rs.per year as charges for a card. after which the cards are sent to ACBL’s issuing branch. 5.200/. ATM – Cards are only issue to the people who are having their accounts in ACBL. The procedure for issuing the ATM Card is as follows: 1. And they sent the application package to their Head Office frequently. having the account in the bank but it is compulsory to have account in the dank. The person can cash only Rs. They are having about 1700 customers in Multan. Fathers name account number and N. first open the account within the bank or he may already 2. Then he fills the ATM application form in which name of account holder. The person. After completing this process . 4.10000 in 24 hours. 6.C Card number are mentioned. 3.




OBC. Bank Draft/Demand Draft (DD): A bank draft is an order instrument issued for payment of a certain sum of money to the order of a certain person and drawn on one office of the bank by another office. I have work their more then any other department. Payslip. Mail transfer. The main function of this department is transfer of funds. . Actually the DD is drawn on the same bank at the different branch.REMITTANCES DEPARTMENT I have spent about two weeks in the Remittance Department. IBC. Pay order. There are different modes of Remittances: • • • • • • • Demand Draft. Telegraphic transfer. Payee: The named person to whom the payment is to be made. This department provides services to the customers of the bank. There are three parties to the draft: Drawer: Issuing Bank Drawee: The Bank on which the draft is drawn. If two banks are involved then the DD is send to the other bank but in the other case it is handed over to the applicant.

it is handed over to the applicant and its advice containing the particulars of the draft is sent to Drawee branch for their necessary information and payment of the draft on its presentation. After issuance of a bank draft. Bank’s Charges: The bank recovers different types of charges from the applicant on issuance of DD. Demand Draft Application Form: The ACBL has a standard application form that must be filed in by the customer for issuance of Demand Draft. it should be a written request either on the bank’s standard application form or on a separate paper signed by the applicant enclosed with cash or cheque covering the amount of the draft and other charges of the bank. in the Askeri Commercial Bank may be summarized as follows: . The DD Application Form contains: o o o o o o Applicant’s Name Applicant’s Address Signature of Applicant In Favor of (Payee’s Name) Drawn on (Name of Drawee Branch) Amount in words and figures The authorized officers (at least two) must sign this form.Where request is received by a banker to issue a bank draft. including: o o o o Excise Duty Commission Tax Postage Charges Payment of Demand Draft: Practical procedure with regard to the payment of the demand draft.

Head Office Account _ Drawer Branch. So it is one of the fastest way to transfer money.25000. such amounts/balances are remitted by means of mail transfer. . The procedure for issuance of a mail transfer is the same as discussed for drafts except that the applicant is provided with a memorandum for money received from him for the issuance of a mail transfer on a particular branch of the bank. 5. The payee must be an account holder (customer) of the drawee branch.. Signature should be verified on all drafts drawn on a branch. Normally. 3.25000/The draft when paid should be marked in the DD payable register. payment of a draft should be made after receipt of a corresponding advice. Mail Transfer (MT) Some times a constituent of a bank wants to transfer funds from one account to another or a non-constituent wishes to remit funds in a particular account maintained at some place with a branch of the bank of when the accounts are transferred from one branch to another branch.1. On receipt of advice from drawer branch. payment should be executed through the approval of the Manager at the drawee branch who should satisfy himself with regard to the authenticity of the draft in terms of signature and otherwise. The drawee branch on receipt of the IBCA credits this account. Ledger Accounts “Draft Payable” of the Bills Payable Account. Payment of MT: The procedure for payment is as follows. 3. 1. On receipt of the advice from the drawee branch. the test should be verified if amount exceeds Rs. All drafts drawn on a branch should be routed through the General 2. 4. Following vouchers should be passed after the test has been verified: Dr……. In case the advice has not been received. 2. The particulars of MT should duly be entered in TT/MT payable register. signatures should be verified and test verified if the amount of a draft exceeds Rs.

In this case the payment is immediately required by the payee.Bills Payable Account _ MT payable. it usually 2 to 3 days to reach its destination. But sometimes an individual whether customer or not. the testes message is given on the telephone.. transfer of funds message is passed on through a telegram. However.. Cr…….100 are also recovered from the customer. 4..e. If the payment is to be effected in cash. 5. i. Before making the payment of MT. the drawee branch must ascertain the following: o o o It is drawn on the same branch. the entries are: Dr……. Telephone Charges of amount Rs. when courier arrangements exist. the bank charges on additional expenses.Bills Payable Account _ MT payable. the following entries are passed: Dr……. Cr……. Payee is properly identified. . Besides normal charges as those recovered on issuance of demand draft.Cr…….. ordinary or express.Cash.Bills Payable Account _ MT payable.Customer’s Account. Payee has signed the revenue stamps of adequate amount. Telegraphic Transfer (TT) Generally a mail transfer advice reaches the drawee branch the next day. to the drawee branch of the bank. When the customer’s account is to be credited. demands that his funds should be transferred from one place to the another through the quickest means. In such cases.. A tested message is sent to the drawee branch followed by the confirmation copy. when it is sent through post offices.

Bills Payable A/C _ TT Payable Cr…….Payment of T. Telegraphic Transfer / Mail Transfer: - Issuance: • The request for maintenance through T. The particular of the TT should duly be entered in the TT/MT payable register. the concerned official at drawee branch should ask for the proper identification of the official at the drawer branch. Whereas the message should be decoded in case of telegram.. the following vouchers should be passed: Dr……. In case where the payment is effected in cash... The drawee branch receives message either on telephone. or through telegram. 4.. ... following entries be passed: • Dr……. A step-wise procedure relating to the payment of TT at the drawee branch is as under: 1.Bills Payable A/C _ TT Payable Cr……. 3. In case of a telegraphic conversation.T: A TT facilitates urgent transfer of funds either by a telegram or through telephone.HO Account _ Drawer Branch Cr……. 2. TT should be paid after proper identification.Customer’s Account.Bills Payable A/C _ TT Payable • Dr……. In case where the customers account is to be credited.T is taken on the standard printed form.Cash 5.

T pay able register. The following vouchers are posted. the charges such as commission.T Pay able. and telex as per effective schedule and signs it. The entry is done in the T. tax. Dr T. There are 3 copies. The T. Tax. • When commission bill is received. The Head & remittance department checks it. /C. Dr Head Office.T is made on the white slip. • If there is no a/c then the T. The original faxed to the Branch. The following vouchers are prepared & given for posting.T Payable. Cr Party A. The entry is made in the TT issuing register.T office copy in the file. If he fills the tax exemption from then no tax is levied.T arrives. Cr Cr Fax charges. Payments: • • • When a T.• • • • • • The customer fills it & signs it. Commission Charges.T receipt is strictly non-negotiable. Cr T.H.T receipt needs revenue stamps and then the payment is made. . Cr W. one to the Head Office and one are kept as record. the test numbers are checked and the signatures are verified. it is attached to the T. Then a neat T.

Payorder (PO)

A banker’s payment order is an instrument drawn by a banker on himself. Implicit in a payment order is an undertaking on the part of the banker to pay a certain sum of money. On the presentation of the instrument. The payment orders are generally issued for anyone of the following practical purpose:
1. To facilitate all locally payable expenses on account of a bank for the

reason that such payments are not executed through cheques. 2. For the sake of inland and foreign remittances in cases where he beneficiaries do not maintain account with bank. 3. For all local payments under instructions of the customers for sundry club bills, rent and taxes etc. The following contains stepwise procedural prescription pertaining to the issuance and payment of payment order.

1. For the issuance of payorders, and application will be tendered on bank’s

standard form by the purchaser giving his name and address thereof. In case of request from the customer of the bank for the issuance of the Payorder, a letter in this request, will be obtained giving full particulars of the payee authorizing the bank to debit the account. 2. The cost of the Payorder alongwith an amount of Rs.5/- commission plus excise duty will be paid on the customer. 3. In case of letter of authority, the total amount i.e. Payorder amount, commission, excise duty and postage, if any, will be debited to the customer’s account as per bank instructions and contra credit will be passed to Bills Payable _ Payorder Account, commission, excise duty and postage account. 4. The Manager/Second Officer shall sign the application for the issuance of Payorder, as the case may be if it is to be issued on bank account.

5. The particulars of the Payorder shall be inserted on the blank Payorder

leaf either through a typing machine or shall be neatly hand written using indelible ink. The account shall also be rounded off through a protectograph machine or by hand on top of the instrument. 6. Subsequently, the particulars of each Payorder shall be recorded in Payorder issued register. 7. The Payorder shall be signed by two authorized officers of the bank simultaneously authenticating entry in Payorder issued register and after verifying the following:
• • • •

Name, code & address of the issuing branch. Name of the Payee. Amount in words & figures. Date of issue.

The amount is rounded off on top of the instrument either through protectograph machine or neatly by handwriting.
8. A stamp containing the following stipulation shall be affixed on the back

of each Payorder at the time of issue: “Received payment from Askari Commercial Bank as over leaf on account of _____________ Date____________
9. The Payorder, then, shall be delivered to the purchaser or to the

department concerned.

1. The payee shall be duly identified by bank customer or by

Manager/Second Officer in case the Payorder is presented for cash payment on the counter and it will be ensured that the payment that the Payorder is properly receipted on its reverse on appropriate value or revenue stamps. 2. The Payorder will then be entered in payment orders issued register after making the date of payment against the date of issue in the contra columns under authentication. 3. The Payorder will then be passed for payment as per bank instruction.

4. The procedure as given above will be adopted in case of all payorders

received for payment, except that usual precautions shall be observed to ensure that the bank stands discharged from the payment in due course.

5. Payorder: -

Concept: It is a cheque drawn by a bank on itself. Pay order is an instrument in which the parties are involved. The purchase, the bank and the receiver. It can he purchased by any customer. It is usually made by govt. Bodies. A single bank is included in this case. Issuance: • • • • • • • • • •

The standard form is given to the customer; he fills in the detail and signs it. The concerned staff checks -The form. Charges as per effective schedule are applied. The cash of the pay order is received. A cost memo is signed, stamped and handed over to the applicant as a receipt. Then the pay order receipt is filled accordingly. Counter foil is also filled. An entry is made in the pay order issued register. Then the authorized office after checking the pay order signs it. The pay order is then handed over to the application after obtaining his signature on the P.O form.

A voucher is also made and posted at the computer Cr bills payable account P.O issued. Payment: • •

On representation of the Payorder receipt two authorized officers of the branch sign the receipt. The P.O entry is made in the P.O issued register.

After that when the Payslip is received by the Bank it is again transferred in the register. Payslip is just like a cheque and the bank is liable to pay against the Payslip. Then it is entered manually in the register of Payslip. In the case of Payslip the excise duty is not deducted as it is in the case of payorder. After filling the Payslip it is signed by the authorized officer.O is posted at the computer. Then the payment is made. So in this case only the bank is involved.O issued. and it is posted in their computers also. The procedure for issuing the Payslip is as follows: • • • • • • • • • • Firstly the credit voucher is sent from the accounts dept to the remittances department. The Payslip is then handed over to the customer.• • Then the amount is credited to the account of the customer or paid in cash. so these bills are transferred payments. Payslips are issued for the payment of different bills of the bank. At the time of issuance the vouchers are made and the Bills payable Payslip is credited. The stationary for Payslips is taken out that is only for the use of the bank. OBC Outward Bills for Collection: - . At the time of payment the bills payable Payslip is debited and the Account of the customer is credited.bills payable A/C P. The P. Dr . PAYSLIP Payslip is an instrument that is issued by the bank for its own payments.

• At the end of the day. Two authorized officers sign the schedules. which are having their offices in other cities. [Cr OBC lodged] [Dr OBC collection] [Dr OBC collection] . On these cheques three stamps are necessary those are. Some of them are of the same bank but some of them are of other branches of the same bank. and OBC stamp. endorsement. In that case the cheques are sent to them for clearing it is called Outward Bills for Collection. Then they are entered in the OBC register and OBC numbers are given to them. After clearance the respective branch send back the OBC along with the IBCA (Inter branch Credit Advice) The OBC no are checked for the OBC register. After that the following entry is made. Cr postage charges. These schedules are filled and the cheque is attached with these schedules and the copy is kept in record of the bank and the original is mailed to the respective branch. The procedure for preparing and delivering the OBC is as follows: • • • • • • • • Firstly when the bank received different cheques in the clearing than the cheques of other cities are separated.Bank received different cheques in clearing. Cr Commission Charges. crossing. Dr Party A/C. The contra vouchers are. The bank is having its own OBC schedules.

The procedure for the IBC is as follows: • • • • • The OBC of the other branches will be the IBC’s of the receiving branch. Cr Dr IBC logged IBC collection. The cheques are lodged for clearing. After realization.] IBC Inward Bills for Collection: The bills are received from other banks out of city for the local clearing is called inward bill for collection. Cr. Dr. The IBC numbers are allotted to them.[Cr OBC lodged. At the end of the day two contra vouchers are made and posted. . an IBCA is prepared and mailed to the branch from where the cheque was received. IBC Collection. The cheques are entered in the IBC register. IBC lodged. So an OBC forwarding schedule is received by mail.


Salary payment is also a job of this department. .ACCOUNTS DEPARTMENT The Accounts Department checks the entire working of all the departments of the bank.

all the vouchers that have been posted at the computer are scrutinized in accounts department. Head Office provides the salary schedules to each branch. computer print is also received from the computer. Payment of Salaries: Payment of salaries is also a function of the accounts department.e. . After checking they are signed by Mr. What actually happens is that at the end of day all the working of the day is posted in the computers. The next day its printouts are taken and they are given to the Accounts Department. The vouchers are matched with the entries in the statements. Zubair Sheikh manager operations. According to the schedule the salaries are given and the salary statements are prepared. the officer signs it and then the Operation Manager also sign it. is immediately dealt with. All the vouchers and instruction are checked individually against the computer printouts. Abdullah and the counter signed by Mr.Daily Bank position Statement: The job of the Accounts Department is to check the daily bank’s position. The “End of Day” i. There are different heads according to which the vouchers are attached those are as follows: • • • • • • Saving Accounts FCY Head Office Current Deposits Sundry Deposits Others After preparing the statement. The next day the activity is separated some statements from the “End of Day”. Accounts department deals and checks the entire working of the Branch. The vouchers are sorted out head wise. Any abnormality if occurs.

It is a tradition of Askari Commercial Bank that the pay is dispatched on the 26th of each month all over Pakistan. . The maintenance & record keeping of Allowances is done in the Accounts Department.



Master is the most widely accepted credit card worldwide. hotels. retail establishments. Or any part of the balance or pay in full and incur no further charges. . Askeri Bank Master card was launched in Multan in December 1997 with a strong advertising comparing on a very large scale. Askeri Commercial Bank is also offering Master credit card to their customers. service industries and other outlets. The customer need only. Askeri bank master card holder need only to pay a percentage of his outstanding balance every month. airlines. hospitals. It allows purchase of goods and services. FEATURES OF ACBL MASTER CARD Important features of Askeri Bank Master Card are: • • All billing of Askeri bank master card will be in Pak rupee whether customer spend in dollars or in any other currency. pay a percentage of their outstanding balance each month. It offers security Vs Cash. which is an alternative of cash. Credit card is best way to pay. It can be used in travel agencies. A person who has credit card can also withdraw cash on it. If you have credit card than you don’t need to keep cash in your pocket because it is best substitute of money.CREDIT CARD DEPARTMENT What is credit card? Credit card is basically a piece of plastic. supermarkets. Credit card is also unsecured card. Now every bank is introducing their own credit cards.

bank gives them their account statement every month. children brothers/sisters over 18 years of age. DIFFERENT TYPES OF CARDS AND THEIR TARGET MARKETS There are three types of cards offered by Master Cards. eating out and domestic traveling Target market: lower-middle management. For customers convenience. That help customers where ever and whenever he need it. . small/middle businesses and housewives.• • • • Askeri Bank provides personalized customer services to their master card holders. By master card customer can get supplementary cards at a special price for his spouse. o o o Local Card/Silver Card International Card Gold Card TARGET MARKET OF LOCAL CARD o o o Middle-middle and lower-middle class Usage: shopping. parents. TARGET MARKET OF INTERNATIONAL CARD o o o Upper-middle and lower-upper class Usage: expensive restaurants and travel abroad Target market: middle and upper management TARGET MARKET OF GOLD CARD o o Middle-upper and upper-upper class Target market: top executives and businessmen SILVER CARD Important features of Silver Card are. If customer card is ever lost or stolen. bank will replace it.

. A person who is applying for silver card and he is on job than his minimum pay must be equal to or more than Rs.15000.4000 and joining fee is Rs. • For those people who are doing their own business.000. Minimum income to quality for a Askeri bank Gold Card is Rs. Statements are sent to them and they are responsible for all charges of the account. 75.• • • A Master Silver Card has a credit limit of Rs 15000 to Rs. GOLD CARD Important features of Gold Card are. If a person who is doing his own business and he is applying for silver card than his earning must be equal to or more than Rs.000.000 month for those people who are at job. For Silver Card annual fee is Rs.00 BASIC CARD The basic card (it can be silver or gold) is given to a card member who is at least 21 years of age and fills the Askeri bank application form.50. 1000. 150.2000 and joining fee is Rs. • • Gold card has a credit limit of Rs. 500 and for Gold Card annual fee in Rs. Their credit account is based on their credit information. minimum income required to quality for Gold Card is Rs. 25000. 350.



8. (b) Non-Fund Based What are the conduct and behavior in connection with operation in the Account Banker’s own assessment and analysis with regard to credit report of the customer as well as other Banker’s report about the said customer Security offered for the applied facility Rate of Mark-Up / Interest Percentage of Margin over the value of Security / Securities . So this department deals with the preparation of proposals of advances. Mode of Financing (a) Fund Based 4. Banker . processing and submitting proposals for advances to Head Office: 1.Customer Relation Ship 2.ADVANCES DEPARTMENT Lending or financing is one of the basic functions of banks of all categories. and then submitting them to Head Office for approval and sanction of limit to the worthy Customers. 6. through which they maneuver major part of their profitability. according to existing policy of Head Office in respect of mode of Financing. 7. 5. Purpose of Financing 3. PROPOSAL FOR ADVANCES The following important points are taken into consideration while evaluating.

Documentation and completion of formalities by the borrower.Investment in trade and business injected from own resources/ fund. Character & Commitment --. 2. • • • • • • Dealing Duration of Account Quantum of remunerative business Market Reputation Means Securities.Customer Relationship The bank and customer relationship as debtor and creditor starts with. on taking deposits or lending of money. As far as lending of money by way of advance is concerned the bank looks into many aspects where the relationship has the prime importance in connection with. on accepting deposit from the customers Bank becomes Debtor and when bank gives finance to the customer Bank is called Creditor or lender and customer becomes Debtor. Period of Financing (a) Temporary Accommodation/ Short term (b) Permanent Basis (Medium or long term) 10. Capital --.9. The (3C’s) concept is defined as follows from Banker’s point of view: 1. Completion and submission of proposal and details of collateral securities offered by the customer. The securities which bank may take to secure the money advanced or to be advanced are generally known as: (a) Prime/ Principal Security: That is the main security say as stock in trade. The letter “3C” has been said to be a basic yard stick to know about a customer who intends to borrow money from bank. Bank . 11.Clean & clear track record of customer. .Holding capacity 3. Capacity --.

The possible purposes may be as follows: 1.BASED (i) Running Finance Popularly known as overdraft or cash credit created in current account adjustment from time to time finally on expiry date. Collateral Securities: The securities in addition to Prime/ Principal security offered by the intending borrower. Development of Agricultural land. Periodical statement of hypothecation of goods to be obtained & physical checking on fortnight or monthly basis must be exercised. This facility is allowed against hypothecated goods in trade. the proposal should not be given due consideration. 11. 7. Purchase of Agricultural machinery. Import Trade Financing. 10. FUND. Purchase of Industrial or commercial vehicles. 3.b. The Purpose of Financing The borrower must disclose factual purpose for seeking financial accommodation from bank without such. Construction of residential. Bridge financing at the stage of Trial production to commercial production. Export Financing/ Packing Credit. 9. Industrial & agricultural building. Purchase of consumer durable items etc. Finance for movement of goods/ crops with in the country. Fixed investment for industry (Project Financing). MODES OF FINANCING The modes of financing applicable in ACBL may be as under. 8. . Working Capital need for trade and industry. 6. Note: Theses Purposes of Finance does not fall under the policies of the Askeri Commercial Bank Limited. 4. 5. 2.

Credit and Debit turnover during the period under review. (iv) Finance against Imported Merchandise It is also called commercial loan inward the facility is allowed against imported items under L/C and goods are kept in banker’s custody in godown in Bank’s lock. Minimum Credit Balance. clearance of goods from custom to be arranged through banker’s own approved clearing agent who takes full care of banker’s interest. adjustment is connected with the value of goods released for delivery. generally cash finance is allowed for locally produced raw material. The bank charges the markup at the rate advised by the State Bank of Pakistan. repayment is fixed on installment basis. . (iii) Cash Finance It is a sort of loan in which the client is given cash in Lump sum. normally Cotton.months. Average Credit Balance. NON.(ii) Demand Finance Also known as demand loan to be created in Banker’s book but disbursement of fund is credited in the borrowers Current account/ saving account. The Finance is created in Bank’s book and fund is placed in borrower’s current account It is allowed for 3-months & 6. with the delivery of goods kept under banks pledge.FUND BASED a) Guarantees: Tender Guarantee Performance Guarantee Mobilization Guarantee Shipping Guarantee Operation Nature of The Account The conduct and behavior of account must be looked into while processing proposal of advances and the following points are given priority for analysis and assessment of the in-tending borrowers. adjustment is linked. and total amount is credited in borrower’s current account.

Do they pay Income Tax also mention assessment year Bank Account and the experience of the bank with the borrower. Number of instances the deposited cheques returned unpaid.Maximum Credit Balance with Nos. Behavior of the customer during conversation with official of the branch Introducer opinion should be obtained confidentially. accurate and up to date while compiling the report and due care must be exercised by the Manager of the Branch while he intends to consider any accommodation to a customer. Independent Bank’s own credit report should be framed on the standardized performance signed by the branch Manager. Other Bankers report and opinion Market reputation: . The assessment of the financial status of a customer and its credit worthiness must be comprehensive. Other banker’s report if dealings have been with other bank should preferably by taken. Nature of Business Name of allied or subsidiary concern if any give name of persons involved in the firm:__________________ Obtain copy of balance sheet or trial balance up to date mention financial year to which period it relates. FORMAT FOR COMPILING CREDIT REPORTS Sources consulted in market Date of compilation of report Nature of the Firm and date of establishment or date of incorporation in case of limited concerns. Number of instances the issued cheque returned unpaid through clearing or at cash counter. Frequency of visits of the customer in the branch. informative and purposeful with latest information either based on own revilement or collected from other sources including other Banker’s information to have been sought confidentially. Investment of capital in the business or authorized and paid up capital in case of limited concerns. Bank’s Non-Credit Report and other Bank’s Report A fair estimate of a customer’s family background and resources must be exhaustive. Name of Proprietor/Partners of Directors in case of limited concern with brief history. of days is retained.

even for two months. a month. Pledge of document of title to goods. It is absolute responsibility of the Managers to check that full and complete information that have been given in the form and he must keep in view the policy of the bank as advised by head office from time to time and should look into this aspect about the proposed facilities in conformity with instructions of Head office. There is a specified formula to calculate this mark up and they are having fully computerized system for doing it. 6 months to 1 year. the facilities required by the customer must be incorporated explicitly on the form. 3 months. Submission of Proposal of Advances Facilities whether Fund Based or Non-Fund Based While submitting the proposal. Rate Of Mark-Up The rate of mark up must be clear to the borrower and he must agree on that rate of mark up. 6 month and for a maximum period of 1 Year. Period Of Finance It may be for a day. then it will be a Permanent Limit. a week. If the facility of advance is allowed upto 3 months then it will be considered as Temporary Accommodation and if it exceeds to.Means Securities Personal guarantee of 3rd party or from Director of limited company in personal cash. . Mortgage of property: Trust receipts Pledge of documents representing financial obligations.






and the world’s markets opened their doors to an over-widening group of businessman. with the proceeds obtained. In addition. overseas. the shipment of goods and making of payments began to involve such large time and geographical differences. The Documentary Credit or L/C and Bank Guarantee fulfill to great extent the requirements of both buyer and seller with regard to covering the risk entailed. it was the job of the representatives of these firms to sell the merchandise and to see the merchandise and to purchase. thus making documentary credits and Bank guarantees unnecessary with regard to securing payment. the required goods for Import. At the middle of the 19th Century. buyers became reluctant to purchase goods sight unseen or to pay in advance without any guarantee that the merchandise would actually be delivered. so to speak. They ensure the seller that price agreed upon would be received upon compliance with the terms of the contracts and the buyer that payment must be made only when the goods ordered or services contracted are delivered or confirmed. it was customary for Export goods to be transported on Board Ship. Buyers and sellers started doing business at a distance. manufacturers and dealers. .Foreign Exchange Introduction to Foreign Exchange For hundred of years. most of the Government & Government licensed trading monopolies began to disappear. the need developed to make liquid capital invested in merchandise during the often-long periods required for transport. exporter were compelled to seek ways to secure payment from importers. Once the ship returned home. However. Moreover. as the conclusion of contracts. the imported merchandise was sold directly to buyers. belonging to large Trading Companies.

FOREIGN CURRENCY ACCOUNTS As earlier discussed in the general banking department of the report. then they are sent to those respective countries. . For transferring money. 1. Every transaction of remittance must be reported to the STATE BANK OF PAKISTAN. client has to give solid reason for sending money abroad. FOREIGN REMITTANCES The same procedure is followed in this regard as discussed in the remittance department of the report. 4. And without the prior approval of the STATE BANK OF PAKISTAN no transaction can be made. the same accounts can be opened in the foreign currency department. For this purpose ACBL has contacts with foreign branches of different banks of different countries. This department deals with the following: Foreign Currency Account Foreign Remittances Foreign Bills For Collection Imports Exports Rules & Regulations According to the rules and regulations of the government every body can open the foreign currency account. and the credit advice is also sent to the customer. Funds can be transfered abroad by Drafts and Telegraphic Transfer. And there is no restriction for opening the account in the foreign currency. drawn on foreign banks. FOREIGN BILLS FOR COLLECTION When the customers deposit the cheques or drafts for collection. ACBL credits the customer's account with amount of the cheque or draft after the realization of these bills.Foreign Exchange Department Foreign Exchange department works like the general banking department with the difference that it deals in foreign currency.

The Import control covers Pracitically all articles. These rates are required for exchange dealing. Presently all registered importers can approach to Bank for opening L/C without import Licence which is no longer in vogue under present Government Policy and procedure. Every registered importer holds category pass book. Expressed more fully. even the requisite licence fee is realized at the time of clearance of goods while submitting bill of entry through clearing agent. issued under import Policy under issued by the Ministry of Commerce every year which covers the period from July to June. or by accepting or negotiating bills of exchange) up to a stated sum of money. certificate of origin . it is a written undertaking by a bank (issuing bank) given to the seller (beneficiary) at the request and in accordance with the instructions. the import licence or import permits were used to be issued by the Controller of Import & Export. It will be called a permit if the importer utilizes his own Foreign Exchange resources abroad. Import’s The Import Trade in Pakistan in governed by the Imports and Export (Control) Act of 1950. These stipulated documents are likely to include those required for commercial. insurance or transport purposes. For imports al all the items in accordance with import Policy. within a prescribed time limit and against stipulated documents. now its function has been shifted to Export Promotion Bureau (EPB) . LETTER OF CREDIT (L/C)/ DOCUMENTARY CREDIT In simple terms. a letter of credit (documentary credit) is a conditional bank undertaking of payment. Where in items and amounts are recorded and imports are arranged through foreign exchange granted direct by the Government of Pakistan.Currency Rate: ACBL receives Pak Repees rate against Foreign Currency from State Bank every day. and bill of lading or combined transport document. official. . insurance policy or certificate. of the buyer (applicant) to effect payment (that is by making a payment. such as commercial invoice.

Insure payment provided that terms and conditions of the credit have been fulfilled. usually stipulated in a Letter of Credit are briefly described hereunder:Opener The opener of a letter of credit is the importer/buyer of goods on whose behalf a letter of credit is established. authorizing the seller to draw on the buyer draft up to a specified amount. in accordance with terms and conditions stated in the credit. or a creditworthy party of securing financial assistance more easily. Beneficiary The beneficiary of a letter of credit is the exporter/Seller in whose favor the letter of credit is being established. Mean that payment by such means is based on documents only. and not on merchandise or services involved. will be honored by the issuing bank”. It is an undertaking in legal form whereby all the drafts drawn by the seller. Opening Bank . in accordance with the terms of the credit. Documentary credits offer both parties to a transaction a degree of security combined with a possibility.A letter of credit can also be defined as under: “A letter of credit is written instrument issued by a bank on account of its customer who is the buyer. Provide a form of security for the parties involved. Important elements of a letter of Credit The important elements. Documentary Credits therefore: are an arrangement by banks for settling international commercial transactions.

to a third party (payee) or to his order”. . by Sea. c) Bill of Lading: The ship master on behalf of shipping company issues a document evidencing the receipt of goods and an undertaking to deliver the same to a party or to his order at a certain destination. quantity value per unit. total cost and charges of the goods shipped. giving full description. by Land. A draft under a letter of credit is issued by the beneficiary instructing the opener/opening bank to make payment.e.. or by Air. Amount The maximum amount which can be drawn by the beneficiary. Documents Required Under a Letter of Credit a) Draft: In legal terms a draft is defined as under: “An instrument in writing issued by the maker (drawer) instructing the second party (Drawee) mentioned therein to make payment of specified amount on demand at sight/or at any future date. e) Means of Shipment: This indicates how the goods are to be shipped i.The bank which issues a letter of credit on behalf of the Importer (Buyer) in favor of the Exporter (seller) either directly or through a Bank in the country of Exporter (Seller) with home it may have agency arrangements. The amount is expressed in the currency in which settlement is desired. Specified therein to their banker or to their order. on demand/at sight or at a future date. b) Commercial Invoices: The statement made by the beneficiary in the name of the opener of the letter of credit. under a letter of credit. This document is called a Bill of lading d) Date of Shipment: It is the date specified in the letter of credit up to which the goods must be shipped by the beneficiary.

The Advising Bank It is the Correspondent/ Branch of the issuing bank in beneficiary’s country who advises the letter of credit to the beneficiary. Trans-shipment means that goods may be transferred from one carrier to another in case the first carrier is not touching directly the part of destination. Negotiation It is the process by which negotiating bank/branch makes the payment to the beneficiary against documents. These details are based in the contract of sale whose reference is give in the letter of credit and as such are mentioned in L/C in a concise form.Description of Goods A brief description of the merchandise such as quantity. quality & unit price is mentioned in the letter of Credit. It is necessary only if the issuing bank has not direct agency arrangements with the beneficiary bank. Reimbursement The negotiating bank makes payment to the beneficiary and claim this amount from the opening bank either by debiting the opening bank’s account with them or that correspondent advised by the opening bank which is called reimbursing bank. (These funds re subsequently claimed by the opening bank from the buyer) . These documents must confirm in all respects to the terms and conditions of the letter of credit. Date of Negotiation/ Validity/ Expiry It is the date by which the exporter should submit the documents to the negotiating bank. Partial Shipment/ Trans Shipment Partial shipment means that the goods may be shipped in different lot and at different times. The negotiating bank would simultaneously send the full set of negotiated documents to the opening bank and/ or to the reimbursing bank as required in the letter of credit.

Normally 30% of the amount is received from the customer as margin of the L/C and other charges are to be deducted by the bank of the opening of L/C. The customer should preferably have a credit line for opening of letter of credit. This actually means the advising bank will add its name to the credit. For such confirmation the confirming bank makes charges to the issuing bank who may subsequently recover this from the buyer. He should also submit his category pass in the bank. He should also present import license if required for the import of some commodity. The customer who wishes to establish Letter of Credit should have a current account with the branch Besides this the customer must have the registration from EPB (Export Promotion Bureau) and membership with Chambers of Commerce & Industry. Application For Opening of Letter of Credit A customer desires of opening a Letter of Credit shall be provided with prescribed application form. thus guaranteeing that the drawings under the letter of credit will be duly honored by them. the seller may request the letter of credit may be confirmed by the advising bank or by either first class bank in country. . an L/C can be opened on nil margin if the officer/manager considers that customer has always sufficient credit in his account to cover the amount of L/C. However. The most important thing is to decide margin between the bank and the customer.Confirmation When the opening bank is not well known to the seller in the International Market. Shipping Mark It is the mark and number given on the packages to facilitate identification at the port of destination.

as in such cases the bank shall be liable to deliver the documents against the acceptance of the draft without payment. basis (Documents against Acceptance Basis).A. The party will make .The customer has sufficient funds/arrangement with the bank to cover the required margin and other bank charges. In case of letters of credit where in the draft has been requested on D. The name and address of the beneficiary mentioned on the L/C application should be full and complete. In case. The exact amount is to be mentioned in the amount column against the currency for which L/C is to be established. The details provided in the L/C application forms are normally sufficient. Whether the draft is to be drawn at sight or at issuance should be clearly marked. The particulars of the credit are in accordance with the contract/proforma Invoice/Indent (This shall also be provide alone with L/C application form). further details are required or any term need further clarification. No clause of the L/C violates of the local Government Regulations. the same should be obtained from the customer. it is to be ensured that such facility has been specifically allowed. Signature of the customer appear on both sides of L/C application form and are in accordance with the signature on our record. Whether the L/C application is properly stamped wherever stamp duty is levied under the law of country.

Beside the commission bank also charges customer for postage. such as Draft. .. In countries where imports are under imports Licenses. Generally the shipping documents required are listed in the L/C application. In case the customer requires other documents he should mention them specifically. bill of Lading. There should be reasonable period between the date of negotiation. Before issuing the L/C on D/A Basis the bank keeps some property as guarantee by the importer. The date of negotiation must not be prior to the date of shipment. (Generally a period of 15 days is kept for this purpose to enable exporter to prepare and negotiate the documents) opened on his behalf. Insurance Cover Note/Policy. invoices. The cost of goods written in L/C should not be more than the prevailing market prices. the shipment should be with in the period of shipment specified in the licenses. cable and other charges incurred by him for opening of a letter of Credit. The L/C Application should then forwarded to the Manager or any other officer authorized for this purpose for his final approval. He should examine the application form and after being satisfied with it he should approve it by putting his initials on the back of the application form.payment after days written in the L/C. . Commission and Other Charges Bank charges commission from their customers for opening Letters of Credit on his behalf. the cases beyond the discretionary powers of the Branch Manager should be referred to the Regional office. Certificate of Origin and Packing list etc.

Certificate of Origin Packing List/Weight List.Import documents under letter of credit On presentation of the documents by the Exporter. creating a short term advance called payment Against Documents Account (PAD) and the Performa account of the foreign correspondent concerned through whom reimbursement has been provided. These documents are provided to the customer either through cash or by some other manners. Kinds of Export Letter of Credits Usually an exporter ships goods against letter of credit received in favor to ensure that he receivees payment for the goods. pays value to the exporter immediately. These documents normally include the following: Bill of Exchange (Drafts) Invoices. at the same time claiming reimbursement on the bank designated by the Opening Bank and sending the documents to the Opening Bank. Receipt & Precessing of Export L/C . sea or air. These documents in the bank are initially lodged. it is called Export Credit. by way of sale against value is termed as “Export” seller is called “Exporter” and the buyer is called “Importer” Letter of Credit (Exports) In banking terms when we receive a letter of Credit from a foreign correspondent for advising it to a beneficiary. These documents are called Import Documents by Opening Bank. Copy of the Insurance Declaration Any other document(s) specified in L/C. the Negotiating Bank negotiates i. Bills of Lading/Consignment Note.e. Export’s Dispatch of goods from a country to another country by land.

Confirmation clause will then be incorporated in forwarding letter addressed to the beneficiary. Approval will be obtained from Regional office. asking for the correct test number under their signatures. whether the exporter has received a pre-shipment finance under this letter of credit. While examing the export credits or cable Advice. . the Forign Exchange Officer will determine the following: Wheter the credit is addressed to bank or to a beneficiary. Commission for adding confirmation will be deducted as per schedule of Bank. These officers will verify the Test Numbers under their signatures. Confirming An Export Credit In cases the correspondent bank is not very well known. the beneficiary may rquest advising bank to add its confirmation to the credit. However Foreign Correspondent bank may communicate credit through cable under their test Numbers. For this purpose he will refer to the authorized specimen signature book of the corresponding banks.The foreign Exchange Officer will receive all advices for the Export Leetters of Credit through mail. Unless specifically required by the correspondent bank. In such cases the Foreign Exchange Officer should refer the messages to the officers of the branch holding Test keys. confirmation shall not be added to an Export Credit. In such cases: It will be seeen that request for confirmation comes from the opening bank. Meanwhile such messages are kept pending. Regional offices will convey its approval after satisfying itself that the credit line allowed to the correspondent bank for this purpose is not exceeeded. The foreign Exchange Officer will verify the signature of the authorized officers of the opening bank on the export letter of Credit. In case the test number does not agrees the Foreign Exchange Officer should Telex back the correspondent bank cencerned. wheter the credit is to the confirmed or not.

Confirmation Transfer of Export L/Cs. in order to capture considerable share in the Banking sector. Banking Services etc. Telephone Banking. 3.General Charges For Export Letter Of Credit Are Given As Under: There are charges for export letter if credit which are as follows Processing Charges for export Registration: Letter of Credit Advising Amendment Negotiation of Rupees Bills under Export L/Cs. and 24 Hrs. The bank should offer more & more new services like more new systems of online Computer Network of the branches to make the remittances function most efficient. .If the document are sent to other bank for negotiation under restricted L/C. SUGGESTIONS It is highly necessary to promote the bank through aggressive advertising campaigns.

give some bounces & other privileges to them for motivating them to increase their efficiency. The authorities of bank should. and some authority should be given to the branch manager to sanction loans within certain limits. which can deal with this problem. also sanctioning process should be made more efficient.The bank should provide advances on easier conditions to attract more & more customers. take necessary actions to raise the salaries of their employees. They need a marketing department in their branch particularly for the services the bank is providing here in Multan and for which the people are not having exposure. Another thing is that the employee satisfaction is one of the most important things and here in Multan Branch there is no such department. .

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