ACKNOWLEDGEMENT

First of all I am thankful to "ALMIGHTY ALLAH" Who gave me the strength, patience, courage an enthusiasm nee e to !rite an complete this report, an countless salutations to upon the Hol" #rophet Muhamma $#%&H', the sea of kno!le ge !ho has gui e His &mmah to seek kno!le ge from cra le to grave( Then to m" frien s !ho assiste me in this effort an !e !orke aca emic career( The preparation of this report !as a massive un ertaking )ut the highl" competent an e*perience management of Askari %ank for provi e me !ith all assistance, information, a vice an suggestions that I nee e !hich contri)ute importantl" to this report( a"long to accomplish this assignment( I have a e)t of gratitu e to all m" teachers !ho taught me throughout m"

Altaf Hussain +++++++++++

1. EXECUTIVE SUMMARY
As per the re,uirements for the egree of M%A at AI-&, I got an opportunit" to get eight !eeks internship e*posure( Askari %ank, F.+/ Marka0, Islama)a provi es me the chance to have this e*perience !ith a prestigious institution( 1uring m" internship I !as rotate in the various epartments in or er to get in epth i ea of ho! the )ank functions( This report thoroughl" outlines an e*plains m" o)servations, fin ings an anal"sis an m" kno!le ge of the )anking sector in general an Askari %ank in particular( In this report, there is an intro uction of Askari %ank( In intro uction, there is histor" of Askari %ank, strong commitment an lo"al service, highl" traine professionals, an cre it rating( The report also inclu es the etails of the pro ucts offere )" 1I%#L !hich inclu es Takaful plan an other Islamic 2ompliance pro ucts( This report also focuses the general )anking of 1I%#L !hich inclu es 2ash epartment, 3emittances section, Account opening, 1e)t car s etc( 4u)se,uent to it this report contains m" e*perience an learning that !hat I have learne from this internship an !hat !as m" e*perience regar ing this internship( The report also contains m" anal"sis that I scrutini0e in the organi0ation )" using t!o metho 4W-T an Financial anal"sis( With the help of these metho s I have some suggestions an recommen ations to improve the performance of the %ank, !hich also mentione in this report( %" follo!ing these suggestions )ank can improve their pro uct market an can easil" gain the attraction an satisfaction of customers( 5ot onl" the customers, )ank also can improve the satisfaction an performance level of its emplo"ees )" these suggestions(

2. OBJECTIVES OF STUDYING THE ORGANIZATION

Overv e!
After the completion of egree M%A $Finance' I !ant to enter an check the practical !ork accor ing to m" speciali0ation( For that purpose I selecte the )anking sector )ecause I have one speciali0ation in finance( 4econ an ne*t main o)7ective of stu "ing organi0ation8 I !ant to enter in practical fiel an !ant to learn that !hich iscipline is re,uire for lea ing a successful future life( I think I am ver" luck" person that I selecte Askari %ank as m" learning organi0ation(

O"#e$% ve& %'(% I !()% %* ($' eve

-)7ectives that I !ant to achieve )" stu "ing the organi0ation are as follo!s9 First of all I !ant to check the practical !ork accor ing to m" egree speciali0ation( 1uring m" internship in Askari %ank I have learnt that ho! to use the kno!le ge in practical fiel ( 4econ l" I !ant to learn that ho! to mange an organi0ation an ho! to mange the finance for a financial organi0ation, as m" egree is relate to Financial Management( 2ustomers ealing is another ma7or o)7ective that I !ant to achieve( 1uring m"

internship I learnt that ho! to eal !ith customer( Financial institution is a place !here ever" t"pe of )usinessmen visits, so uring m" internship in 1I%#L I met !ith man" )usinessmen an learnt that ho! ifferent )usinesses run( An another main o)7ective that I !ant to achieve that ho! an organi0ation consist !ith ifferent epartments an ho! ifferent functions are one in ifferent epartments of an organi0ation( Through this internship I learne man" things( It !as a great e*perience for me to comprehen the !orking environment( 1uring this perio I face ifferent t"pes of !orking con itions, !hich !ill help me to kno! that, ho! to han le these con itions in future( Through this internship I am a)le to o !ork in all epartments of %ank )ecause I kno! all rules, policies, an responsi)ilities, !hich mentione in 1I%#L epartments an pro ucts of these epartments so I achieve :/; of m" o)7ective <

+. OVERVIEW OF THE ORGANIZATION

A&,(r B(), is the lea ing Islamic )ank operating in #akistan( Its )alance sheet si0e is improving !ith the passage of time( It has re efine its role an has move from a pu)lic sector organi0ation into a mo ern Islamic )ank( The %ank=s services are availa)le to in ivi uals, corporate entities( While it continues to act as investor of pu)lic fun s an it has iversifie its )usiness portfolio an is to a" a lea pla"er in the e)t e,uit" market, corporate investment )anking, retail an consumer )anking, treasur" services an is sho!ing gro!ing interest in promoting an eveloping the countr"=s small an me ium enterprises an at the same time fulfilling its social responsi)ilities, as a corporate citi0en( In to a"=s competitive )usiness environment, 1I%#L nee to re efine its role an she the pu)lic sector )ank image, for a mo ern Islamic )ank( It is liste in 4ecurities an >*change 2ommission of #akistan in 6//?( Askari %ank is to a" a progressive, efficient, an customer focuse institution( It has evelope a !i e range of consumer pro ucts, to enhance )usiness an cater to the ifferent segments of societ"( 4ome schemes have )een specificall" esigne for the lo! to mi le income segments of the population( It has taken various measures to facilitate overseas #akistanis to sen their remittances in a convenient an efficient manner( More recentl" it has starte >lectronic Home 3emittances #ro7ect( This pro7ect intro uces technolog" )ase s"stem to han le in!ar remittances efficientl", )" ensuring that the %ank=s )ranches keep a track of the remittance receive from a)roa till its final receipt( A num)er of initiatives have )een taken, in terms of institutional restructuring, changes in the fiel structure, in policies an proce ures, in internal control s"stems !ith special emphasis on corporate governance, a option of 2apital A e,uac" 4tan ar s un er %asel II frame!ork, in the up gra ation of the IT infrastructure an eveloping the human resource( Askari %ank has )uilt an e*tensive )ranch net!ork !ith <? )ranches in #akistan( The %ank=s financial performance has )een remarka)le( In 6//?, total assets are estimate at 3s :@<@6:////, !hile eposits have gro!n to nearl" 3s @<66?6+///( The increase in profit !as achieve through strong gro!th in core )anking income( The %ank maintains a soun loan portfolio iversifie in nature to counter the risk of cre it concentration( @

+.1 HISTORY OF ASKARI BANK -AKISTAN LTD.

Thirt" "ears ago Askari %ank create histor" )" )ecoming Worl s first Islamic %ank( To a" Islamic %anking has )ecome one of the fastest gro!ing economic sectors !ith over <// financial institutions8 !ith assets estimate over at <// )illion &4 1ollar provi ing Islamic Financial 4ervices( 1espite huge gro!th to the sector 1I% is continue to )e the pioneer an lea er to ate( 4ince its inception 1I% has evolve retail )ank to a full" fle ge )ank catering to almost all the re,uirements of the customers in provi ing to 4haria 2ompliant solutions locall" an internationall"( It has constantl" upgra e its services to in ivi uals an companies !ho al!a"s remain a valua)le asset( %" com)ining the )est Islamic tra itional values !ith high stan ar s technolog" an innovation, 1I% is committe to compl" !ith not onl" full" transactions of financial ealings( 1I% is also committe to provi e customer.satisfaction oriente 7o)( For its outstan ing performance an contri)ution for Islamic financing, 1I% receive the )est Islamic %ank a!ar in the Mi le >ast A!ar 6//?8 )" )oth >uro mone"s Islamic Finance Weekl" an Gulf Wealth Forum( 1I% has also a!ar e the )ank of the "ear 6//? %anker A!ar s( 1I%#L has starte its operations since 6//A( At that time the scale of )usiness an num)er of )ranches !ere ver" short( %ut 7ust !ithin the time perio of five "ears, no! 1I% has an e*tensive net!ork of )ranches, a !i e range of Islamic 2ompliant #ro ucts, !ell.manage communication s"stem an goo return from operations(

+.2 NATURE OF THE ORGANIZATION

Askari %ank #akistan Lt ( is a pu)lic -rgani0ation( It implements the policies of 4%#( Its )asic o)7ective is to ma*imi0e the profit( It has ma7or impacts on #akistan econom" !ith special emphasis on fostering #akistan=s economic gro!th through aggressive an )alance len ing policies, technologicall" oriente pro ucts an services offere through its net!ork of )ranches( It eals !ith 3evenue, collection an pa"ments of salaries( It is a complete Islamic, retail an corporate )ank as !ell( The Askari %ank is an Islamic institute !hich offers a variet" of pro ucts accor ing to the 4haria principles an instructions( All the pro ucts an services are regulate )" 4haria %oar ( If the" fin someone violating the rules, the" penali0e( The Askari %ank makes ifferent a 7ustments to up ate )usiness operations( The %ank has also pla"e an important role in financing the countr"Bs gro!ing tra e, !hich has e*pan e through the "ears as iversification took place( Askari %ank #akistan Lt ( maintains its position as #akistan=s one of the premier )ank etermine to set higher stan ar s(

+.+ BUSINESS VOLUME

Askari Banks business volume is expanding day by day and now it becomes leading bank of the Islamic Banking Sector. The authori0e capital of the %ank is 3s(?CC? million

ivi e into or inar" shares of 3s +/ each( The %ank is a su)si iar" of Askari %ank #D42, &A> $The hol ing 2ompan"'(

FIVE YEARS -ERFORMANCE OF DIB

T(".e/ B0& )e&& V*.01e
Years T*%(. A&&e%& De2*& %& 3R& ) M .. *)4 A5v()$e& 3R& ) M .. *)4 I)ve&%1e)%& S'(re'*.5er6 E70 %8 -re9T(: -r*; %< 3L*&&4 3R& ) M .. *)4 A;%er9T(: -r*; %< 3L*&&4 3R& ) M .. *)4 E(r) )= -er S'(re 3R&4 N01"er *; Br()$'e& N01"er *; E12.*8ee& 6//A
497 418 5 120

6//?
8434 4322 3274 833 3917 -633 -412 -2.09 10 225

6//C
21308 16114 11348 2974 5126 -568 -369 -0.89 17 350

6//:
32050 25459 18074 3019 6018 -272 -182 -0.35 25 470

6//E
35368 27981 20590 2823 6776 352 277 0.38 36 722

4ource9 1I% annual report 6//E

1I%#L top line $operating revenue' is <A6 million in 6//E !hich is sho!ing a uni,ue achievement of this organi0ation( In 6//:, the 1I% !as suffering loss of 6C6 million ue to heav" investment in infrastructure an other resources( 1I% has improve its gro!th )" over 6//;( In 6//C, the )ank !as suffering a loss of A?: million !hich is more than t!ice from 6//:( These tren s sho! that ho! efficientl" an effectivel" !orking an improving its stan ar s )" offering a !i e variet" of Islamic 2ompliant pro ucts an )" )ringing innovations( 1espite of profita)ilit" tren s, here !e can also see the flo! of eposits, a vances an investment( The earning per share loss is recovere )" the )ank !ith ver" rapi approach(

+.> NUMBER OF EM-LOYEES DESIGNATION

#resi ent 4enior >*ecutive vice presi ent >*ecutive vice presi ent Fice presi ent Assistant vice presi ent %ranch Manager Manager -perations 2re it Manager Manager Finance Manager Marketing Manager Foreign >*change Manager 2onsumer Finance Legal A visor IT -fficer 2ash -fficer Accounts -fficer 2learing -fficer %1Teller T-TAL

NO OF EM-LOYEES + + + + + <? <? <? +A <? 6/ +A <? :/ CA A/ ?: E@ EA C66

3.5 PRODUCT LINES & SERVICES

:

+.?.1 -RODUCTS OF DIB-L/

#ro ucts of )ank inclu e all those services !hich a customer can use effectivel" in his general an )usiness( Askari %ank #akistan Lt ( F.+/ Marka0 )ranch offers a !i e range of )anking services to pu)lic an private sector corporations, partnerships, in ivi uals an others(

3.5.1.1 Current Account

Askari %ank #akistan Lt ( is offering current account facilit" for its value customers( This t"pe of account is suita)le for )usinessmen an those customers !ho nee financing !ith regular intervals( %ecause the" make receipts an pa"ments in large ,uantit"(

+.?.1.2 Re=0.(r S(v )=& A$$*0)%

1I%#L is offering another t"pe of account !hich is name )" regular savings account( 1I%#L is pa"ing profit on this t"pe of account accor ing to volume of eposit( An another attracting option is that profit is offere on monthl", ,uarterl", semi.annuall" an annuall" )asis(

3.5.1.3 Saving P u! Account

Another t"pe of account !hich 1I%#L is offering is saving plus account( -n this t"pe of account 1I%#L is giving profit on comparativel" higher rates than regular(

+.?.1.> S(v )= S2e$ (. A$$*0)%

This is another t"pe of account is offering )" 1I%#L to facilitate its value customers( This t"pe of account has some special characteristics as compare to regular an plus( The profit margin is higher than other t"pes of accounts(

3.5.1.5 "i#e$ De%o!it& Ter' De%o!it

E

DIB ! is offering fixed deposit account according to the Sharia principles. "ere in fixed deposit account deposited amount is invested and finally share of profit or loss is distributed between bank and customer.

SERVICES OF DIB-L
4ervices are output of the firm, !hich are in intangi)le form an at present offers to his customers inclu e9 3eceipts of customer=s eposits 2ollection of his che,ues ra!n on other )anks Making pa"ments through che,ues ra!n on it Making remittances Foreign tra e service the )ack )one of an" organi0ation to earn profit( Ho!ever, there are some )asic services !hich 1I%#L, F.+/ )ranch

+.?.2 I)%er)(% *)(. B(), )=

Askari Bank akistan !td. is at the forefront of international banking in akistan# which is proven by the fact that DIB ! has its branches in all of the ma$or financial capitals of the world. Additionally# we have recently set up the %inancial Institution &ing# which is placed under the 'isk (anagement )roup. *he role of the %inancial Institution &ing is+ , *o effectively manage DIB ! exposure to foreign and domestic correspondence manage the monetary aspect of DIB !s relationship with the correspondents to support trade# treasury and other key business areas# thereby contributing to the banks profitability. +.?.2.1 DEMAND DRAFTS/ It is a safe# speedy and reliable way to transfer money- customers can now purchase DIB !s Demand Drafts at very reasonable rates. Any person whether an account holder of the bank or not# can purchase a Demand Draft from a bank branch.

+/

+.?.2.2 MAIL TRANSFERS/ (oney is safely and .uickly moved by using DIB ! (ail *ransfer service. And DIB ! also offered the most competitive rates in the market. +.?.2.+ -AY ORDER/
DIB ! provides another reason to transfer money using its facilities. ay orders are a secure and easy way to move money from one place to another. And as usual# charges for this service are extremely competitive.

+.?.2.> TRAVELER6S CHE@UES/ /egotiability+ ak 'upees *ravelers 0he.ues are a negotiable instrument. 1alidity+ *here is no restriction on the period of validity. Availability+ At 23 branches of DIB ! all over the country. 4ncashment+ At all branches of DIB !. !imitation+ /o limit on purchase. Safety+ DIB ! *ravelers 0he.ues are the safest way to carry money. +.?.2.? LETTER OF CREDIT/ DIB ! is committed to offering its business customers the widest range of options in the area of money transfer. In a commercial enterprise !etter of 0redit service is $ust what customers are looking for. &ith competitive rates# security# and ease of transaction# DIB ! !etters of 0redit are the best way to do business transactions.

++

TRADE FINANCES A OTHER BUSINESS LOANS

+.?.+ COR-ORATE FINANCE/ +.?.+.1 W*r, )= C(2 %(. ()5 S'*r% Ter1 L*()&9
DIB ! speciali5es in providing exporters re,shipment and ro$ect %inance 6 4xport 'efinance to urchased 6

ost,shipment financing to exporters 6 'unning

finance 6 0ash %inance 6 Small %inance 6 Discounting 7 Bills 4xport Bills urchased 8 re,shipment.

3.5.3.(

)e$iu'

ter'

oan!

an$

Ca%ita

E#%en$iture

"inancing*
DIB ! provides financing for its clients capital expenditure and other long, term investment needs. By sharing the risk associated with such long,term investments# DIB ! expedites clients attempt to upgrade and expand their operation thereby making possible the fulfillment of our clients vision. *his type of long term financing proves the banks belief in its client9s capabilities# and its commitment to the country.

3.5.3.3 Loan Structuring an$ S+n$ication*

Askari Bank akistan !td. leadership in loan syndicating stems from ability to forge strong relationships not only with borrowers but also with bank investors. Because syndicate partners understand the asset criteria# DIB ! help borrowers meet substantial financing needs by enabling them to reach the banks most interested in lending to their particular industry# geographic location and structure through syndicated debt offerings. Syndication

+6

capabilities are complemented by capital strength and by industry teams# who bring speciali5ed knowledge to the structure of a transaction.

+.?.+.> C(&' M()(=e1e)% Serv $e&9

&ith DIB ! 0ash (anagement Services :in process of being set up;# the customers sales collection will be channeled through networking of DIB ! branched spread across the country. *his will enable the customer to manage their companys total financial position right from desktop computer. *hey will also be able to take advantage of outstanding range of payment# e$ection# li.uidity and investment services. In fact# DIB ! is committed to provide everything# which takes to manage cash flow more accurately.

+.?.> SHORT TERM INVESTMENTS/

DIB ! now offers excellent rates of profit on all its short term investment accounts. &hether the funds are invested for 2 months or < year# DIB !s rates of profit are extremely attractive# along with the security and service only DIB ! can provide.

3.5.5 E,UIT- INVEST)ENTS*

DIB ! has accelerated its activities in the stock market to improve its economic base and restore investor confidence. *he bank is now regarded as the most active and dominant player in the development of the stock market. DIB ! is involved in the following+ Investment into the capital market Introduction of capital market accounts :under process;

+<

 DIB !s involvement in capital markets is expected to increase its earnings# which would result in better returns offered to account holders.

>. ORGANIZATIONAL STRUCTURE >.1 STRUCTURE OF THE ASKARI BANK -AKISTAN LTD.
In Askari %ank, the hea is calle G2hairmanH of the %ank( An after 2hairman there is 4i* %roa of 1irectors( Askari %ank has >leven Groups !hich control the !orking of the 1ivisions, Wing, 1epartment, 4ection an 3egional of the Askari %ank( In 1I%#L, G1epartmentH is calle GWingsH( C'( r1() A -re& 5e)%

-re& -re& 5e)%B& 5e)%B& Se$re%(r Se$re%(r (% (%

B*(r5 *; D re$%*r&
Se$re%(r8 Se$re%(r8 B*(r5 B*(r5 *; *; D D re$%*r& re$%*r&

C*r2*r(%e C*r2*r(%e A A I)ve&%1e)% I)ve&%1e)% B(), B(), )= )= Gr*02 Gr*02

Cre5 Cre5 % % M()(=e1e)% M()(=e1e)% Gr*02 Gr*02

A05 A05 % %A A I)&2e$% I)&2e$% *) *) Gr*02 Gr*02

C*12. C*12. ()$e ()$e Gr*02 Gr*02

HRM HRM A A A51 A51 ) ) &%r(% &%r(% *) *) Gr*02 Gr*02

S2e$ S2e$ (. (. A&&e%& A&&e%& M()(=e1e)% M()(=e1e)% Gr*02 Gr*02

O2er(% *) Gr*02

C*11er$ C*11er$ (. (. A A Re%( .. B(), )= Re%( B(), )= +@ Gr*02 Gr*02 Over&e(& Over&e(& M()(=e1e)% M()(=e1e)% Gr*02 Gr*02

I.T. Gr*02

Tre(&0r8 Tre(&0r8 M()(=e1e)% M()(=e1e)% Gr*02 Gr*02 Gr*02

>.2 ORGANIZATION HIERARCHY OF DIB F91CMARKAZ

BRANCH

Br()$' M()(=er

1eposits 1ept

>.
3emittances

2learance 1ept

A vances 1ept

H3 1ept

#ension 1ept

2ash 1ept

Account -pening

%ills 4ection

I !orke in Askari %ank #akistan Limite as an internee for t!o months( 1uring internship, I rotate in ifferent epartments !here I learne a)out these epartments( The )ranch manager monitors the !hole )ranch to evelop efficienc" an effectiveness( The ifferent epartment=s etails are liste )elo!( There are seven epartments are operating in F.+/ Marka0 %ranch( In eposits section, various kin s of eposits are ma e in routine an reporte to hea office( The eposit section is ver" +A

efficient an

active( In remittances section

eals !ith e*ternal an

internal remittances to

facilitate the customers( 3emittances are transferre through pa" or er, )ank raft an telegram transfer( In clearance epartment, che,ues are cleare through clearing house )" using the facilit" of 5IFT( In a vances epartment, )ank makes ifferent kin of a vances an offer attractive Islamic compliance pro ucts to attract customers( In other epartments, H3 epartment functions the recruitment, performance appraisal, training an other relevant 7o)s( In cash epartment, the collection an pa"ment of cash is ma e( $5-T>9 -rganogram is attache in anne*es('

>.+ VARIOUS DE-ARTMENTS DETAILS

1I%#L have a epartment( ifferent epartment so I am going to e*plain the performance of ever"

>.+.1 CASH DE-ARTMENT

2ash epartment performs the follo!ing functions

>.+.1.1 Re$e 2%
The mone", !hich either comes or goes out from the )ank, its recor shoul )e kept( 2ash epartment performs this function( The eposits of all customers of the )ank are controlle )" means of le ger accounts( >ver" customer has its o!n le ger account an has separate le ger car s(

>.+.1.2 -(81e)%&
It is a )ankerBs primar" contract to repa" mone" receive for this customerBs account usuall" )" honoring his che,ue(

>.+.1.+ T82e& *; C'e70e&

4ome specific t"pes of che,ue are )eing entertaine 1I%#L( in the clearing epartment of

+?

LOCAL CHE@UE

%" local che,ue !e mean collection of che,ue from the )anks !hich are the mem)ers of the clearinghouse an !hich are locate !ithin the cit"(
OUT STATION CHE@UE

%" out station che,ue !e mean collection of che,ue from the )anks !hich are situate outsi e the cit"( It means that presenting )ank an the )ank on !hich the che,ue is ra!n are not situate in the same cit"(

>.+.2 CLEARANCE DE-ARTMENT

A clearing house is an association of commercial )anks set up in given localit" for the purpose of interchange an settlement of cre it claims( The function of clearinghouse is performe )" the central )ank of a countr" )" tra ition or )" la!( In #akistan, the clearing s"stem is operate )" the 4%#( If 4%# has no office at a place, then 5%#, as a representative of 4%# act as a clearinghouse( The eas", safe an most efficient !a" is to offset the reciprocal claims against the other an receive onl" the net amount o!ne )" them( This facilit" of net inter )ank pa"ment is provi e )" the clearinghouse( The representatives of the local commercial )anks meet at a fi*e time on all the )usiness a"s of the !eek( The meeting is hel in the office of the )ank that officiall" performs the uties of clearinghouse( The representatives of the commercial )anks eliver the che,ues pa"a)le at other local )anks an receive the che,ues ra!n on their )ank( The che,ues are then sorte accor ing to the )ank on !hich the" are ra!n( A summar" sheet is prepare !hich sho!s the names of the )anks, the total num)er of che,ues elivere an receive )" them( Totals are also ma e of all the che,ues presente )" or to each )ank( The ifference )et!een the total represents the amount to )e pai )" a particular )ank an the amount to )e receive )" it( >ach )ank then receives the net amount ue to it or pa"s the net amount o!e )" it(

2.2.1 I)9!*r5 $.e(r )= B**,&/

+C

The )ank uses in!ar clearing register for the purpose of recor ing all the etails of the che,ues that the other )anks have issue on the )ank(

2.2.2 O0%9W*r5 C.e(r )= B**,&/

The )ank uses out!ar clearing register for the purpose of recor ing all the etails of the che,ues that the )ank has elivere to other )anks(

>.+.+ ADVANCES DE-ARTMENT

1I%#L give loans to the )orro!ers for ifferent purposes( These loans are given for various sectors for ifferent perio s( 4mall Finance, 2ash Finance, #ersonal Loans, 1eman Finance, 3unning Finance, 2orporate Finance, >*port Import Financing, House %uil ing Finance(

>.+.> REMITTANCE DE-ARTMENT

Another important epartment in the )ank is remittances( #eople sen their mone" to the other persons an an out!ar ( 1I%#L offers the follo!ing forms of remittances( 1eman 1raft Telegraphic Transfer #a" -r er Mail Transfer 4afe custo " of specimen signature )ook #reparation of perio ical statements An" other !orkI ut" assigne )" manager organi0ations through various !a" i(e( %ank raft, Telegraphic Transfer, Mail Transfer, 2oupons, Govt( 1raft an Western &nion Mone" Transfer etc( It !orks )oth in!ar

>.+.? DE-OSITS DE-ARTMENT

+:

2ustomers keep their savings in #L4 4aving Accounts an )usinessmen save their mone" in )ank 2urrent Accounts( 1I%#L gives profit on saving accounts an special saving accounts(

>.+.D FOREIGN EXCHANGE DE-ARTMENT/

This epartment mainl" eals !ith the foreign )usiness( The main functions of this epartment are9 a' LI2 ealing( )' Foreign currenc" accounts ealing( c' Foreign 3emittance ealing( 1I%#L is committe to offering its )usiness customers the !i est range of options in the area of mone" transfer( If a commercial enterprise then Letter of 2re it service is 7ust !hat it looking for( With competitive rates, securit", an ease of transaction, 1I%#L Letters of 2re it are the )est !a" to o its )usiness transactions This epartment eals !ith the foreign currenc" accounts !hich mainl" inclu e ollar account, euro account etc(

>.+.E -RIVILEGE BANKING DE-ARTMENT >.+.E.1 O). )e B(), )=

*his department is functioning only in online branches in the bank. *his is a fast track banking system in modern banking. DIB ! is also trying to enhance this facility for their customers.

..3./.( Uti it+ Service!

=eeping in view the difficulties faced by general public DIB ! has taken the initiative to provide service for collection8receipt of utility bills on behalf of +E

&A DA# Sui )as and *0! from >.?? am to @.?? pm all the branches through out the countries are observing this practice to ease the long .ueues lined, up at the counters of banks.

>.+.F COM-LIANCE DE-ARTMENT

3ole of )ranch compliance epartment is to reconcile the prescri)e fre,uencies, investigate long pen ing reconciliation item, an ensure correct treatment ever" half "ear an clearing s"stem service )ranch.in ma7or cities( Internal control is the integration of the activities, plans, attitu es, policies an efforts of the people of the )ank !orking together to provi e reasona)le assurance that the organi0ation !ill achieve its o)7ectives an mission(

>.+.G HUMAN RESOURCES MANAGEMENT DE-ARTMENT

Human 3esources Management 1epartment !orks for the )etterment of the emplo"ees( >nhances skills, training management, service )enefits, !ages, me ical facilities, staff loans are )asic functions of this epartment(

>.+.1C INFORMATION TECHNOLOGY DE-ARTMENT

%ankBs ata collection an information s"stem run )" 3egional 1ata 2ollection 2enter( This epartment manages staff training programs regar ing computer(

>.+.11 ISLAMIC BANKING

6/

The "ear 6//A marke the first "ear of Islamic )anking operations( 1uring the "ear un er revie!, in a ition to active participation in various 4ukuk transactions, 1I%#L has e*ten e its Islamic %anking -perations 5et!ork(

?. STRUCTURE OF FINANCE A ACCOUNTS DE-ARTMENT

Accounts epartment is a )acken the follo!ing Accounting -peration9 epartment at Askari %ank,.+/ Marka08 Islama)a performs

Re2*r%&
It generates reports like S%(%e1e)% *; A$$*0)% A$% v %8 $a report on the activit" of all accounts', S%(%e1e)% *; A;;( r& $a report on the assets an lia)ilities', S%(%e1e)% *; F*re =) E:$'()=e $a report on the foreign e*change currencies at the )ank' an S%(%e1e)% *; -r*; % ()5 L*&&( These reports can )e generate at ail", !eekl", monthl", ,uarterl" or "earl" )asis as re,uire )" the )ank(

I)$*1e ()5 E:2e)&e

The epartment also nee s to calculate the revenues an e*penses, control e*pen iture an forecast profits ever" month(

B05=e%

6+

Formulation of "earl" )u gets J targets in consultation !ith the )ranch manager is also one )" the accounts epartment(

A$% v %8 C'e$, )=
1ail" activit" checking an monitoring is one )" the accounts epartment of the !hole )ank(

S%*r(=e *; Re$*r5&
Accounts 1epartment also has the ut" to store vouchers an s"stem generate reports(

-(81e)%&
The accounts epartment is responsi)le to pa" ven ors on )ehalf of the )ank !ith authori0ation from the )ranch manager( It also has to amorti0e large pa"ments an calculate epreciation of )ranch assets(

?.+ T'e r*.e *; ; )()$ (. 1()(=er& ) e&%(". &' )= re.(% *)&' 2

This is a senior role an the 3elationship Manager !ill manage a portfolio of comple* 4ector( The role !ill report to the Hea of 2orporate )orro!ing corporate clients as !ell as )eing the primar" point of contact for the )anks relationships !ith the He ge Fun %anking( The i eal can i ate !ill ma*imi0e opportunities to strengthen an leverage e*isting relationships as !ell as continue to maintain an ensure high levels of customer satisfaction an retention all the !hile generating ne! recommen ations( The successful can i ate !ill )e e*perience in eveloping gro!th plans an e*pan ing the ivisions )orro!ing an non.)orro!ing relationships !ithin the he ge fun sector( 4trong !orking kno!le ge of commercial )anking pro ucts, loan agreements, securit" an other cre it re,uirements, particularl" !ith respect to the mutual an he ge fun sectors is preferre ( >ssential ,ualifications inclu e at least +/ "ears )anking e*perience !ith at least A "ears in a irect commercial customer contact role9 in transactions !ith the mutual an he ge fun 66 epth e*perience in structuring financing sectors8 e*perience in structuring financing

transactions !ith the propert" sector !ill )e consi ere

an asset( Financial manger in

esta)lishing relationship al!a"s gives priorit" of his organi0ation these )enefits9 Ma*imi0ation of profit( >arning per share ma*imi0ation( Increase of sale Welfare 3e uce in cost Ma*imi0ation of sharehol erBs !ealth(

?.> U&e *; E.e$%r*) $ 5(%( ) De$ & *)91(, )=

In to a"Bs contemporar" )usiness, critical an timel" ecision making is a must an important too( To a"Bs )ank use sophisticate soft!areBs that not onl" help in operations )ut also improves ecision making )" provi ing ifferent reports, !hich can pro uce at ifferent perio s of time, that can help emplo"ees at ever" level of the )anks a ministration(

?.>.1 Te$') $(. Me%'*5& %'(% A;;e$% %'e I)50&%r8

The )anking in ustr" of #akistan is at the forefront of mo erni0ing its ail" operations )" intro ucing the latest technologies in its operations( 4ome of the technical metho s that are use an affect the )anking in ustr" are as follo!s9 A vance technological pro ucts an services Automation of operational tasks 1ecision making tools

?.>.2 A5v()$e5 %e$')*.*= $(. 2r*50$%& ()5 &erv $e&

6<

Automatic Teller Machines $ATM' an ATM car s have )een the )iggest innovations that have simpl" change the !a" people to a" are no! making their personal transaction( With ATM car s, people can take out mone" from their accounts at an" time, from an" )ank that the" !ant to, at their convenience( ATM car hol ers can take mone" out of their accounts, from an" K+ linkB net!ork ATM, the largest ATM net!ork of the countr"( -ther ATM net!orks inclu e KMnetB an K2irrusB( To a" all )anks are mem)ers of K+ linkB, !hile most of them are mem)ers of Mnet an 2irus( Internet %anking is another ma7or technological pro uct intro uce )" ifferent )anks of

#akistan( With the help of internet )anking, customers !ith the convenience of their o!n personal computers can transfer mone" from their accounts, vie! their )alances an a lot more(

?.>.+ A0%*1(% *) *; *2er(% *)(. %(&,&

*echnical advancements have also impacted the daily operations of banks in #akistan( -nline transfer of mone" )et!een )ranches has increase the efficienc" of e*change of mone" )et!een ifferent account hol ers of the same )ank( 4imple tasks such as )alance in,uir" an )ank statements have )ecome as eas" as a click of a )utton !ith highl" sophisticate information s"stems( All )anks to a" have their o!n information s"stems that the" can use in almost all epartments like clearing, account opening, car leasing an remittances(

?.>.> I))*v(% *)
Innovation is a must in mo ern times, as it !ill help )anks to compete in to a"Bs highl" technologicall" a vance in ustr"( 4ome of the innovations that the )anking in ustr" is looking for!ar are9 More a vance means of connectivit" )et!een )ranches through )etter an a vance soft!are an har !are to maintain connections !ith )anks in remote areas an uring

6@

natural calamities in #akistan( These might inclu e )etter connection through WiFi or WiMa*, )oth ne! technologies( More a vance information s"stems in )anks that are more secure than )efore to

eliminate an" chances of frau an !hich are even more user frien l" to help emplo"ees to use them not onl" to make critical ecisions )ut also satisf" customer nee in a more timel" manner( A vancements in online transfer from inter )ranch to an even more helpful inter )ank transfers( Automation of simple operations task that !ill not onl" improve efficienc" )ut also re uce costs like stationer" an courier services, like automation of check )ooks etc(

?.? SOURCES OF FUNDS

2CC?
6,6<<,?C+ +6,C6<,:</ +6E,C+@,:E+ %orro!ings 1eposits J other accounts

2CCD
%ills #a"a)le

2CCE

2CCF

2CCG

3D(%( S*0r$e/ DIB F )()$ (. S%(%e1e)%&4

The anal"sis of the )alance sheet of the )ank sho!s that current lia)ilities increases over the perio of time, the increase in lia)ilities an increase in loan sho!s that compan" !ants to have more cash in han rather than len ing it to others an losing the return on that investment( As for as the fi*e lia)ilities of compan" are concern the" are sho!ing increasing tren an same is case !ith the current an long term lia)ilities )ut the increasing tren in assets is lo!er than the increasing tren in lia)ilities !hich in not a goo position for the )ank as sho!n in the ta)le )orro!ing are more increase in 6//E(

6A

?.D GENERATION OF FUNDS

2CC?
6/,E@C,<<< A,/EE,+EA :CA,++< 5on.mark.up income -ther income

2CCD
Mark.up income

2CCE

2CCF

2CCG

3D(%( S*0r$e/ DIB F )()$ (. S%(%e1e)%&' In generation of fun s of 1I%, the most important source is mark.up income( There are three earning revenues( %anks earning are mark.up income, non.mark.up income an other income( In 6//A, the mark.up income is 6/E@C<<< !hich sho! a goo strength of 1I%#L( With the passage of time the revenue of 1I%#L is increasing !ith goo figures an market share( The revenue generate )" the 1I%#L is investe in the market to ma*imi0e its market share an to increase its profita)ilit" in e*( In last five "ears the tren s in generation of fun s are positive an remarka)le(

?.D ALLOCATION AND MOBILIZATION OF FUNDS

Allocation an mo)ili0ation of fun s refers to the composition of fun s in ifferent sectors( Ho! man" fun s are use in ac,uiring assets, to pa" the short term an long term o)ligations, for investment purposes, to e*pan the )usiness volume, to ac,uiring latest machiner" an up ate technolog", to pa" the ivi en etc( The finance epartment of 1I%#L allocates the fun s in ifferent sectors accor ing to the policies of the management( Allocation of fun s provi es a track ho! fun s shape inflo! an outflo! in 1I%#L(

2CC?

2CCD

2CCE

2CCF

2CCG

6?

+E,C/:,A+: <,+:<,EAC . <A,A/<,+E? :<,E<+,@// @,6:/,A/@ . <,66?,EAE

Cash & balances with treasury banks

Balances with other banks Lending to financial institutions Investments Advances Fixed assets Deferred tax assets Other assets

154,834,534

248,313,793

275,685,541

328,895,152

348,990,764

3D(%( S*0r$e/ DIB F )()$ (. S%(%e1e)%&4 In )alance sheet of )ank the most important item is earning assets( There are four earning assets( %ank has strong earning assets like a vances investments an len ing to financial institutions has ma7or percentage in of assets of )ank( In lia)ilit" an e,uit" anal"sis the )orro!ing from financial institutions an eposits have ma7or portion an reserve an share capital has ma7or portion in e,uit"( -ut of the three earning assets $len ing to financial institutions, a vances an investments' onl" a vances have recor e a gro!th !hile Len ingBs to financial institutions an Investments fell respectivel"( Anal"sis of )alance sheet sho!s increase or ecrease in each item as a percentage of assets means that assets are chosen as ke" figure( As !e have seen in the ta)le the interest e*pense is increasing !ith the turnover so the )ank is more utili0ing on a vances( As for as the fi*e lia)ilities of compan" are concern the" are sho!ing increasing tren an same is case !ith the current an long term lia)ilities(

CRITICAL ANALYSIS D.C FINANCIAL ANALYSIS

6C

D.1 FIVE YEAR BALANCE SHEET

2CC? 2CCD 2CCE 2CCF 2CCG $3upees in ///'

ASSETS
+E,C/:,A+: <,+:<,EAC . <A,A/<,+E? :<,E<+,@// @,6:/,A/@ . <,66?,EAE Cash & balances with treasury banks

Balances with other banks Lending to financial institutions Investments Advances Fixed assets Deferred tax assets Other assets

154,834,534

248,313,793

275,685,541

328,895,152

348,990,764

LIABILITIES
6,6<<,?C+ +6,C6<,:</ +6E,C+@,:E+ +,:EE,@:/ . %ills #a"a)le

6CA,:<@ 6,6CA,<@@
%orro!ings 1eposits J other accounts 4u). -r inate loans Lia against asset su)7 to finance lease 1eferre ta* lia)ilities -ther lia)ilities

1>GHD??HDDG

2>CHF>GHDDE EH>D>H12D

2D+H>>+H?GD 12H2>1HG>?

+12HDE?H+CF 1DH21GHF>>

++1HG>DHC2? 1EHC>>HE+G

NET ASSETS

?H2D1H>F>

6:

-RESENTED BY
2,500,000 1,008,772 860,300 6,387,372 4,369,072 4hare capital 3eserve &n appropriate profit 4urplus on revaluation of assets.net of Ta* 122>1G>? EH>D>H12D 12H2>1HG>? 1DH21GHF>> 1EHC>>HE+G

3D(%( S*0r$e/ DIB F )()$ (. S%(%e1e)%&4

6.2 FIVE YEAR PROFIT AND LOSS STATEMENT

2CC? 2CCD 2CCE $3upees in ///' 2CCF 2CCG

6E

Mark-up / return / interest earned

6/,E@C,<<< ?,AAE,<E: 1>H+FEHG+? +,A+A,<A@ +:A,C/C +@,6EC <6,:/C 1HE>FH1D?

<<,?<<,C<A +/,<6+,C?: 2+H+11HGDE 6,@@?,C<E $6@A,::+' . 6<,/?E 2H22+HG2E

@<,C::,?6: +<,?<@,E+6 +C1?+HE1D <,/CA,C6< $C/E,@?+' . A,6:@ 2H+E1?>D

A/,A?E,@:+ +?,E@/,/++ ++HD2GH>EC @,C6<,/:@ $@/,6@:' . <E,:EE >HE22HE+?

?/,E@/,CE: 6<,::@,C?: +EHC?FHC+C +/,AE/,A?A <C<,6@E @,/// LLLL.LLL 1CHGECHF1>

12HD+GHEE C
A,/EE,+EA +,6C<,:?< +,//:,E:: . . . :CA,++< FH2?EH1?G

21HCFFHC>C
@,E6?,?/@ +,C+:,@C: +,6/A,?<: . . . +,AC<,E/A GH>2>HD2?

2EHEF2H1EC
?,+@@,?6: 6,:E+,CAA +,<<<,:@/ +,+?E,A+A $@,@?@' ?6C,?+: 12H1D2HFG2

2FHGCDHE+?
?,C:+,?:< <,6?<,6@? +,/@6,:6C 6,<@+,?E/ $<+,E?@' +@C,<?< 1+H?>>HF>?

2DHCFEH21D
C,E6A,<C/ 6,:C:,E<6 <,E?E,/AC <EA,@6C +,C/C +,6@A,<?E 1DH>1?HFD2 >2H?C+HCEF +:,+C+,+E: C@C,A6+ A:<,<?+ 1GH?C2HCFC

+CH?12HDD?
++,+EA,+<< +E:,6E: ?<,6/? 11H>?DHD+E

+GHG>?HCD2
+<,@@<,@@+ $+C,6:<' 6/:,<6C 1+HD+>H>F?

>2H>?1H?FC
+@,6/A,E++ +?:,/6C +C,+@+ 1>H+G1HCEG

2CHFGDHG2 G
:,:C:,:/+ <6,6@< :,6:@L FHG1GH+2F

1GHC?DHC2F
9

11HGEEHDC 1 9 11HGEEHDC 1
@,EA/,/// :@C,EA: $+A,C6E'

1GHC?DHC2F
C,+A@,//6 $+,/E:,C/E' 6E+,6E+

2DH+1CH?EE 9 2DH+1CH?EE
:,?EA,AE: A</,?A6 ?+,E:+ GH2FFH2+1

2FHCDCH?C1
9

2+HCCCHGGF
9

2FHCDCH?C1
:,<++,A// <E+,@EC <6<,C<+

2+HCCCHGGF
++,C?6,?A/ . $@,66/,6@/'

DH+>DH?F> 12HECGH>>>
E,+?+,C@C @<,66+

1EHC22H+>D
+E,<C6,A6< ..............

GHC2DHE2F 1GHC++HEE+
<6,/C@,?CC <E,//C

EH?>2H>CF 1?H>?FH?GC
@A,<@@,+:: +</,@A?

?HEF2H22G DH1G?H+E2
A,:E6,E/6 @A,@E?

21HG1>H>12

+DH+G>HFDG

?1H1>EH>?E

DCHG++H2+>

21.?1

2C.FF

2+.+>

1E.>F

12H1++HEE C 1CH>F
Mark-up / return / interest expensed Net mark-up / return / interest income Provision against non-performing advances Provision for / (reversal of) diminution in the value of Investments Provision against off balance sheet obligations Bad debts written off directly

</

Net mark-up /interest income after provisions

i)

Non mark-up / interest income

Fee, commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale of securities-net Unrealized gain/(loss) on revaluation of investments Classified as held for trading Other income Total non-markup / interest income

ii)

Non mark-up / interest expense

Administrative expenses Other provisions / write offs Other charges Total non-markup / interest expenses Extra ordinary / unusual items

iii)
Taxation - Current - Prior years - Deferred

Profit before taxation

iv)

Profit after taxation

Unappropriated profit brought forward Transferred from surplus on revaluation of fixed assets on account of incremental depreciation

Profit available for appropriation Basic and diluted earning per share-after tax 3D(%( S*0r$e/ DIB F )()$ (. S%(%e1e)%&4

0.3 RATIO ANAL-SIS

'atios provide the means of showing the relationship# which exists between# figures of the Balance Sheets and Income Statements. *he analysis is undertaken to assess important characteristics of business like li.uidity# solvency and profitability. A study of these aspects enables drawing conclusions as to financial re.uirements and capabilities of business units. 'atios may be classified in a number of ways to suit any particular purpose.

<+

Different kinds of ratios are selected for different types of situations. Some of the ratios calculated for DIB ! are given below.

0.3.1 LI,UIDIT- RATIO

0omparison gives an indication of the short,term debt paying ability of an entity. Since a bank is also a business firm so to maintain ade.uate li.uidity is also crucial to carry out business activity.

0.3.1.1 Current Ratio

It is used to measure the ability of an enterprise to meet its current liabilities out of current assets. Current Ratio 1 Current A!!et! & Current Lia2i itie! 3Ru%ee! in45556 (555 0urrent Assets 0urrent liabilities Current Ratio 2A?#<2A <<>#2A? (.75 (550 B#@@?#CC2 A#>?2#DA> 1.5. (55/ <>#AC@#3? D <3#>@C#>? D 1.15 (557 C>#@C3#B< ? C3#>D2#>A 3 1.58 (558 22#CCD#@2 ? C>#2CD#3C > 1.13

CURRENT RATIO

<6

3 2.5 2 1.5 1 0.5 0 2005 2006 2007 2012 2009 CURRENT RATIO

INTERPRETATION
*he current ratio of DIB !# for the year C??># is <.<2 times of current liabilities. It is good to meet the short,term obligations# when compared with the current ratio C??D# which is <.?> times of current liabilities. *he company should maintain minimum limit of current ratio for Bank i.e.<.

0.3.1.( Net 9or:ing Ca%ita

Working capital compares current assets to current lia)ilities, an serves as the li,ui reserve availa)le to satisf" contingencies an uncertainties( A high !orking capital )alance is man ate if the entit" is una)le to )orro! on short notice( The ratio in icates the short.term li,ui it" of a )usiness an in etermining if a firm can pa" its current lia)ilities !hen ue( Net 9or:ing Ca%ita 1 Current A!!et! ; Current Lia2i itie! 3Ru%ee! in <5556 (555 0urrent Assets 0urrent liabilities Net 9or:ing Ca%ita 2A?#<2A <<>#2A? ((5=/8. (550 B#@@?#CC2 A#>?2#DA> (=0.0=3/ . (55/ <>#AC@#3? D <3#>@C#>? D (=./(=/5 5 (557 C>#@C3#B< ? C3#>D2#>A 3 (=5.(=/0 . (558 22#CCD#@2 ? C>#2CD#3C > 3=788=85 1

NET 9OR>IN? CAPITAL

<<

4000000 3500000 3000000 2500000 2000000 1500000 1000000 500000 0 2005 2006 2007 2008 2009 Net !"#$%& C'($t')

INTERPRETATION
/et working capital of C??> increases from year C??D. This is safet" cushion to cre itors( The volume of net !orking capital is sho!ing positive tren s(

D.+.2 DEBT RATIOS < SOLVENCY RATIONS

Solvency is a companys ability to meet its long,term obligations as they become due. An analysis of solvency concentrates on the long,term financial and operating structure of the business.

0.3.(.1 De2t to A!!et & De2t Ratio

#rovi es information a)out the compan"=s a)ilit" to a)sor) asset re uctions arising from losses !ithout en angering the interest of cre itors( De"% R(% * I T*%(. L (" . % e& < T*%(. A&&e%& 3Ru%ee! in <5556 (555 *otal Assets *otal liabilities De2t Ratio A>B#2>2 <<>#2A? 5. A#>?2#DA> 5.571. (550 D#A2A#CD? (55/ C<#2?D#CA B <3#>@C#>? D 5./850 (557 2C?@??B2 C3#>D2#>A 3 5.7.18 (558 2@#23D#D> A C>#2CD#3C > 5.7(8(

<@

DE@T RATIO
0.880

0.660 De*t R't$! 0.440

0.220 200* 2009 2010 2011 2012

INTERPRETATION
0reditors prefer low debt ratio# debt ratio shows that how much asset the company has to honor their obligations. *his ratio is increased from ?.DA<> to ?.DC>C. *his is a good for the company because the company has < asset to pay ?.DC>C debts.

0.3.(.( De2t to EAuit+ Ratio

In icates ho! !ell cre itors are protecte in case of the compan"=s insolvenc"( The e)t to e,uit" is a significant measure of solvenc" since a high egree of e)t in a capital structure ma" make it ifficult for the compan" to meet interest chargers an principal pa"ments at maturit"( De"% %* E70 %8 R(% * I T*%(. De"% < T*%(. S%*$,'*.5erB& E70 %8 3Ru%ee! in <5556 (555 *otal Debt *otal 4.uity De2t to EAuit+ Ratio <<>#2A? A<D#<D@ 5.(75 (550 A#>?2#DA> (55/ (557 (558 C>#2CD#3C > 3#BB3#?2? ..3(7 C3#>D2#>A <3#>@C#>?D 3 2#><B#AD? @#<C3#C2? 3#?<B#BD? 1.(5( 3.35/ ...7.

<A

DE@T TO E,UIT- RATIO

5 4 3 2 1 0 +1 2008 2009 2010 2011 2012 De*t t! E,-$t. R't$!

INTERPRETATION
Debt to e.uity ratio is the relationship borrowed funds and owners capital and e.uity multiplier is the relationship between total assets and total e.uity. But it is good that the ratio is decreasing in C??> than C??D. *he overall leverage position is showing better trend as compare to previous years.

0.3.3 PRO"ITA@ILIT- RATIOS

*his ratio shows that what percentage of net profit to the total income is.

0.3.3.1 Net ProBit )argin

This ratio measures the firmBs profita)ilit" of salesI interest earne after taking account of all e*penses an income ta*es( This ratio can )e calculate as9 Ne% -r*; % M(r= ) I Ne% -r*; % < Reve)0e J1CC 3Ru%ee! in <5556 (555 /et rofit 'evenue Net ProBit )argin 3<>#@2B C#?>A#B22 (8.5/C (550 (55/ (557 <#>?2#2BB @#?@3#>AD 3/.0.C (558 <#@A@#D@> 3#?>A#?B> (5.3/C <#CB?#>AA <#B?C#C2A 2#232#2B2 3/./8C A#2BD#D3C 37.7/C

<?

NET PRO"IT )AR?IN

40.00/ 35.00/ 30.00/ 25.00/ 20.00/ 15.00/ 10.00/ 5.00/ 0.00/ 2005 2006 2007 2008 2009

Net P"!0$t M'"&$%

INTERPRETATION
From the calculation it is ver" much clear that the performance of 1I%#L is ver" goo still to 6//C( An the tren is up!ar ( It tells us a firmBs net income per rupee of revenue( As the tren is up!ar it sho!s the high profits in revenue per rupee in case of 1I%#L( It is )ecause of high a vances the 1I%#L has given to the people )ut in 6//: the ratio tren is o!n!ar !hich not goo for 1I%#L(

0.3.3.( Return on EAuit+

Measures the income earne on the sharehol er=s investment in the )usiness( Re%0r) *) E70 %8 I Ne% I)$*1e < Aver(=e T*%(. E70 %8 3Ru%ee! in <5556 (555 /et rofit :After *ax rofit; *otal 4.uity Return on EAuit+ 3<>#@2B C#AD>#>B3 (..77C (550 (55/ (557 <#>?2#2BB 3#>CB#?32 (/..7C (558 <#@A@#D@> D#<23#B?? 17.88C

<#CB?#>AA <#B?C#C2A 2#3<@#DAB 35.15C @#2?A#A3A 3(.58C

<C

RETURN ON E,UIT40.00/ 35.00/ 30.00/ 25.00/ 20.00/ 15.00/ 10.00/ 5.00/ 0.00/ 2005 2006 2007 2008 2009

Ret-"% !% E,-$t.

INTERPRETATION
It is decreasing every year with different rate. *his condition is not good for DIB ! because every investor want to earn high income on his investment.

0.3.3.3 Return on Tota A!!et!

Measures the compan"=s a)ilit" to utili0e its assets to create profits( Re%0r) *; T*%(. A&&e%& I Ne% I)$*1e < Aver(=e T*%(. A&&e%& J1CC 3Ru%ee! in <5556 (555 /et rofit :After *ax rofit; *otal Assets Return on Tota A!!et! 3<>#@2B @@#2C2#<A 3 1.1(C (550 <#CB?#>AA (55/ <#B?C#C2A (557 <#>?2#2BB (558 <#@A@#D@> D<#BB@#D2 C 1.78C

@B#BB<#>< 32#@<2#CB< B3#C<>#2@ < > (.(5C (.07C (.55C

<:

RETURN ON TOTAL ASSETS

3.00/ 2.50/ 2.00/ 1.50/ 1.00/ 0.50/ 0.00/ 2005 2006 2007 2008 2009 Ret-"% !% T!t') A11et1

INTERPRETATION
*he results show that the 'eturn on Asset are decreased which show that the DIB ! Assets are not properly utili5e in C??> or may be there are no proper environment for Banking sector because in C??D economic crisis. akistan face the

0.3.. @AN> SPECIAL RATIO

0.3...1 Inve!t'ent to A!!et Ratio
Inve!t'ent to Tota A!!et! 1 Inve!t'ent & Tota A!!et! 3Ru%ee! in <5556 (555 Investment *otal Assets Inve!t'ent to Tota A!!et! <<2#>2? A>B#2>2 5.(( (550 D2C#>C@ (55/ (557 (558 C#DCC#BC2 2@#23D#D> A 5.57 C#>BA#?DB 2#?<>#C33

C<#2?D#CAB 2C#?@?#?B D#A2A#CD? 2 5.15 5.1. 5.58

<E

INVEST)ENT TO ASSET RATIO

0.3 0.25 0.2 0.15 0.1 0.05 0 2005 2006 2007 2008 2009

I%2e1t3e%t t! A11et R't$!

INTERPRETATION
*his ratio indicates that out of total asset how much bank utili5e its asset for further investing. *his ratio in decrease in C??># which is not useful for the bank to enhance its revenues.

0.3...( A$vance! to De%o!it Ratio

A$vance! to De%o!it Ratio 1 Tota A$vance! & Tota De%o!it 3Ru%ee! in <5556 *otal Advances *otal Deposit A$vance! to De%o!it Ratio (555 2#<>@#@B@ A#3@@#B<B 07.0.C (550 2#CB2#>@ B A#2CC#3C < /5./.C (55/ <<#2AB#>B > <3#<<A#A3 < /5..(C (557 (558 <D#?B2#@? C?#@D>#3< < 2 C@#A@D#>< ? /5.88C CB#>D?#>? 3 /3.57C

ADVANCES TO DEPOSIT RATIO

80.00/ 70.00/ 60.00/ 50.00/ 40.00/ 30.00/ 20.00/ 10.00/ 0.00/ 2005 2006 2007 2008 2009

A42'%5e1 t! De(!1$t R't$!

@/

INTERPRETATION
!oans or advances are the ma$or assets of a bank while deposits are ma$or liabilities of a bank. "igher ratio shows the better solvency of bank.

0.3...3 Ca!D to De%o!it Ratio

Ca!D to De%o!it Ratio 1 Ca!D & De%o!it 3Ru%ee! in <5556 (555 0ash *otal Deposit Ca!D to De%o!it Ratio >AA#A3@ A#3@@#B<B (5.(8C (550 B<>#D22 (55/ (557 (558 C#>2C#C3A C@#>D?#>? 3 11.(8C C#3><#@BC <#>>C#AC@ A#2CC#3C< <3#<<A#A3< C@#A@D#>< ? 10.05C 1(.30C 15.5/C

CASE TO DEPOSIT RATIO

20.00/ 15.00/ 10.00/ 5.00/ 0.00/ 2005 2006 2007 2008 2009 C'16 t! De(!1$t R't$!

INTERPRETATION
*his ratio shows that how much cash you have to pay the liabilities :deposits;. As this ratio show that company has fewer amounts of cash than @+

deposits. It also indicates that bank is investing so the bank is enhancing its business. But at the same time it could be risk for bank for li.uidation.

0.3.... EAuit+ to A!!et!

EAuit+ to A!!et! 1 EAuit+ & Tota A!!et! 3Ru%ee! in <5556 (555 4.uity *otal Assets EAuit+ to Tota A!!et! A<D#<D@ A>B#2>2 ./.55C (550 2#><B#AD? (55/ (557 3#?<B#BD? (558 D#<23#B?? 2@#23D#D> A 18.10C

@#<C3#C2? D#A2A#CD? C<#2?D#CAB 2C#?@?#?B 2 .0..5C (..50C 17./7C

E,UIT- TO ASSETS
50.00/ 40.00/ 30.00/ 20.00/ 10.00/ 0.00/ 2005 2006 2007 2008 2009 E,-$t. t! A11et1

INTERPRETATION

@6

*his ratio shows the position of e.uity in total assets of business. *his ratio is in increasing trend. But the bank should increase its e.uity by increasing the wealth of shareholders.

0.3...5 EAuit+ to De%o!it!

EAuit+ to De%o!it 1 EAuit+ & De%o!it! 3Ru%ee! in <5556 (555 4.uity *otal Deposits EAuit+ to Tota De%o!it! CAD#>>B 3@@#B<B 3/.8/C (550 2#><B#AD? (55/ (557 (558 D#<23#B?? C@#>D?#>? 3 31.3(C @#<C3#C2? 3#?<B#BD?

D#2CC#3C< <3#<<A#A3< C@#A@D#>< ? ./.5/C 31.71C (3.0.C

E,UIT- TO DEPOSITS
60.00/ 45.00/ 30.00/ 15.00/ 0.00/ 2005 2006 2007 2008 2009 E,-$t. t! De(!1$t

INTERPRETATION

@<

*his ratio shows that how much e.uity part is there in total structure. *he capital advocacy re.uirement is CDE. *he bank was not fulfilling the re.uirement in C??@ 7 C??3 but now bank has 2<.2CE# which is good.

0.3...0 Earning Per SDare

Earning Per SDare 1 Net Inco'e & No oB Or$inar+ SDare! 3Ru%ee! in <5556 (55. /et rofit :After *ax rofit; /o of Frdinary Shares Earning Per SDare 3EPS6 3<>#@2B A>#CA<#?3 C 1(.57 (555 <#CB?#>AA (550 (55/ (557 <#@A@#D@> D>#3>B#@< ? 1/.(3 <#B?C#C2A <#>?2#2BB

@>#?D>#CB B?#>?B#<C> D<#@A2#<> A D (1.51 (. (3.3.

EARNIN? PER SEARE

24 22 20 18 16 14 12 10 8 6 4 2 0 2005 2006 2007 2008 2009

E,-$t. t! De(!1$t

INTERPRETATION
@@

As their earnings per common share is good year by year it mean that results of the ratio indicate that firm has paid a handsome return on investment showing the profit generations. Because the companys net income is increasing gradually. As shown above the bank basic earning per share is increasing due to increase in net income. *his shows how mush profit each share has earned in any particular year. It is most important ratio for peoples who decide about investing their money. Although it decreased in C??> but the overall performance is good.

0.3.3.3 Return on Tota Inve!t'ent

Measures the income earne on the sharehol er=s investment in the )usiness( Re%0r) *) I)ve&%1e)% I Ne% I)$*1e < T*%(. I)ve&%1e)% 3Ru%ee! in <5556 (555 /et rofit :After *ax rofit; *otal Investment Return on Inve!t'ent 3<>#@2B C#AD>#>B3 (..77C (550 (55/ (557 <#>?2#2BB 3#>CB#?32 (/..7C (558 <#@A@#D@> D#<23#B?? 17.88C <#CB?#>AA <#B?C#C2A 2#3<@#DAB 35.15C @#2?A#A3A 3(.58C

RETURN ON INVEST)ENT

@A

40.00/ 35.00/ 30.00/ 25.00/ 20.00/ 15.00/ 10.00/ 5.00/ 0.00/ 2005 2006 2007 2008 2009

Ret-"% !% E,-$t.

INTERPRETATION
It is decreasing every year with different rate. *his condition is not good for DIB ! because every investor want to earn high income on his investment.

0.3.3.3 Return on "i#e$ A!!et!

Measures the compan"=s a)ilit" to utili0e its fi*e assets to create profits( Re%0r) *) F :e5 A&&e%& I Ne% I)$*1e < Aver(=e F :e5 A&&e%& J1CC 3Ru%ee! in <5556 (555 /et rofit :After *ax rofit; *otal %ixed Assets Return on "i#e$ A!!et! 3<>#@2B @@#2C2#<A 3 1.1(C (550 <#CB?#>AA (55/ <#B?C#C2A (557 <#>?2#2BB (558 <#@A@#D@> D<#BB@#D2 C 1.78C

@B#BB<#>< 32#@<2#CB< B3#C<>#2@ < > (.(5C (.07C (.55C

RETURN ON "IFED ASSETS

@?

3.00/ 2.50/ 2.00/ 1.50/ 1.00/ 0.50/ 0.00/ 2005 2006 2007 2008 2009 Ret-"% !% T!t') A11et1

INTERPRETATION
*he results show that the 'eturn on Asset are decreased which show that the DIB ! Assets are not properly utili5e in C??> or may be there are no proper environment for Banking sector because in C??D economic crisis its assets to create profits( akistan face the

D.> VERTICAL ANALYSIS

In vertical anal"sis a significant item of a financial statement is use as a )ase value, an all other items of the financial statement are compare to it( In )alance sheet, total assets are assigne +//;( >ach asset account is e*presse as a percentage of total assets( Total lia)ilities an stockhol erBs e,uit" is also assigne +//;( >ach lia)ilit" an e,uit" account is then net income is given the value of +//; an all other amounts are evaluate in comparison to net sales( The resulting figures are then given a common si0e statement(

@C

A&,(r B(), -(, &%() L%5. B(.()$e S'ee% Ver% $(. A)(.8& & 3R& CCC4 F*r %'e 8e(r e)5e5 De$ +1H 2CCK
2CC? 2CCD L +6(<6 A(A? 6C(+C 6(:6 @?(@< @(+/ +(?/ 2CCE L +6(<: ?(@/ 66(/< <(?6 @E(CC +(A6 . @(6C 2CCF L +6(@A @(E6 6C(C/ 6(:6 @@(?A <(@/ . @(/C 2CCG L +<(/< @(?E 6/(:E 6(/E A/(A/ 6(E? /(<E A(@A

ASSETS
2ash J )alances !ith treasur" )anks %alances !ith other )anks Investments.net Len ing to financial institutions A vances. net -perating Fi*e assets 1eferre Ta* Assets -ther assets.net

L +C(/: E(// 6?(EE +(E/ <E(E6 <(@A +(?? .

T*%(. A&&e%&

1CC +(@6 6(+E E+(:@ /(//< /(//? @(AA

1CC /(<A +(C6 E6(/? /(//< /(:E @(E?

1CC +(E6 6(+6 E/(6 (//6 /(@< A(:/

1CC +(/E +(?: E+(?A /(//A /(C: @(CE

1CC +(@A A(?A :C(<? (//< /(// A(A@

LIABILITIES
%ills #a"a)le %orro!ings 1eposits J other accounts Lia)ilities against asset su)7ect to finance lease 1eferre ta* lia)ilities.net -ther lia)ilities

T*%(. . (" . % e& NET ASSETS -RESENTED BY

4hare capital 3eserve &nappropriate profit 4urplus on revaluation of assets

1CC +/(?A 6<(<: +E(:+ ?+.F> @?(+?

1CC C(EA +:(6/ 66(@: >F.D+ A+(<C

1CC :(?A +?(E@ <E(+@ D>.E+ <A(6C

1CC C(// +<(A? <:(E: ?G.?? @/(@?

1CC :(CA +E(@? A+(+E EG.>C 6/(?/

T*%(. L (" . % e& ()5 E70 %8

1CC

1CC

1CC

1CC

1CC

@:

A&,(r B(), -(, &%() L%5. -r*; % A L*&& A$$*0)% Ver% $(. A)(.8& & 3R& CCC4 F*r %'e 8e(r e)5e5 De$ +1H 2CCK
2CC? L +// <+(<+ C(6< /(:E /(/?: /(+? :(<@: 2CCD L +// </(?E 2CCE L +// <+(?< 2CCF L +// <<(A/ 2CCG L +// <E(+E

Mark.up I return I interest earne Mark.up I return I interest e*pense

Ne% 1(r,902 < re%0r) < )%ere&% )$*1e

#rovision against non.performing a vances #rovision for iminution in the value of Investment Provision against off balance sheet obligations %a e)ts !ritten off irectl"

DF.D

C(6C ?(EC $/(C<' $+(?+' . . /(/C /(/+ ?(EC A(<C

DG.+

DF.+

DD.?C
E(<@ $/(/:' . /(/: E(<@

DC.F1
?(E: /(?+ /(//? . C(E?

Ne% 1(r,902 < )%ere&% )$*1e (;%er 2r*v & *)&

N*) 1(r,902 )%ere&% )$*1e Fee, commission an )rokerage income 1ivi en income Income from ealing in foreign currencies Gain on sale of securities.net &nreali0e gainI$loss' on revaluation of investments 2lassifie as hel for tra ing -ther income T*%(. )*)91(r,02 < )%ere&% )$*1e Non mark-up / interest expense Administrative expenses Other provisions / write offs Other charges Total non-markup / interest expenses

DC.+
6@(<@ ?(/: @(:+ . . @(+C <E(@/

D2.+
+@(?A A(++ <(A: 6(A: . @(?: </(?/

D+.C
+<(E< ?(A? <(/6 6(?A $/(/+' +(@6 6C(AC

?E.1D
+<(@+ ?(@A 6(/? @(?C $/(/?' /(6E 6?(C:

?2.F?
+<(6+ <(+? ?(?@ +(/@ /(6+ /(6< 6?(A@

GG.E
@6(<: /(+A /(/@ @6(AC

G2.G
<<(6E /(AE /(+E <@(/?

GC.?
</(@: $/(/@' /(@C </(E6

F+.G?
6:(/E /(<< /(/< 6:(@?

EC.D>
6?(6+ /(@+ /(:A <+(C<

T(:(% *) M 2urrent . #rior "ears . 1eferre

-r*; % "e;*re T(:(% *)

6<(?< 6+(6+ @(/@ $<(6C' $/(/C' /(:C 6C(?/ +:(:C

?E.1

?F.F

+E(C6 +(6/ /(+@ 6+(/?

?G.D

??.>G
+?(@@ /(CC /(?@ +C(:A ?<(@6 /(/:

+F.G1
+E(/< . $?(E6' +6(++ C@(@/ /(6+

-r*; % A;%er T(:(% *)

Unappropriated profit brought forward Transferred from surplus on revaluation of fixed assets on account of incremental depreciation

2G.> + 6:(+<
/(66

>C.C 1 6C(6@
/(+<

+F.D C @@(6@
.

+E.D>

2D.DF

Profit available for appropriation

?E.E F
@E

DE.+ F

F2.F >

1C1.1 >

1C1.2G

In )alance sheet of )ank the most important item is earning assets( There are four earning assets( %ank has strong earning assets like a vances investments an len ing to financial institutions has ma7or percentage in of assets of )ank( In lia)ilit" an e,uit" anal"sis the )orro!ing from financial institutions an eposits have ma7or portion an reserve an share capital has ma7or portion in e,uit"( -ut of the three earning assets $len ing to financial institutions, a vances an investments' onl" a vances have recor e a gro!th !hile Len ingBs to financial institutions an Investments fell respectivel"( Fertical anal"sis of profit an loss sho!s increase or ecrease in each item as a percentage of sales means that sales are chosen as ke" figure( As !e have seen in the ta)le the interest e*pense is increasing !ith the turnover so the )ank is more utili0ing on e*penses( 5et Interest income !as +/; higher this "ear to 3s <C(/A: )illion o!ing to volume gro!th( The interest earne in the +6 months of 6//: is 6+; higher than that of 6//: )ut it !as matche )" more than proportionate increase in the interest e*penses, !hich rose )" @+;( 4o in vertical anal"sis the net interest income is ecrease in 6//E as compare to 6//:( 1I%#L irectors give some of reasons in increasing in interest e*penses( Firstl", the )anks have )een impose a minimum of A; eposit rate on all the savings schemes( This ha previousl" )een left at the )anks= iscretion as to ho! much the" have to pa"( A fe! of the )anks have also )een penali0e )" the 4%# for acting like cartel in eposits( 4econ l", there has )een other attractive scheme from the 5ational 4avings, !hich offere )etter rates an raine the li,ui it" from )anking sector(

Furthermore, the econom" !as going through high inflation, so the people !ere not too optimistic a)out saving in )anks as the mone" !as losing its value ver" fast(

A ministrative e*penses sho!s

ecreasing tren

also the profit after ta* is in

ecreasing

position uring last t!o "ears, that position in not goo for the compan"( -nl" profit availa)le for appropriation is increasing as compare to previous "ears, !hich is +/+(6E; in 6//E(

A/

D.? HORIZONTAL ANALYSIS

In hori0ontal anal"sis ifferent perio Bs ata is compare an in one "ear item is selecte an item is compare !ith the same categor" of item of ne*t perio ( In this anal"sis the "ear shoul )e consecutive for the anal"sis an then percentage ifference is taken to see the performance over the perio of time( This anal"sis is use to evaluate the tren in the accounts over the "ear(

A&,(r B(), -(, &%() L%5. B(.()$e S'ee% H*r M*)%(. A)(.8& & 3R& CCC4 F*r %'e 8e(r e)5e5 De$ +1H 2CCK
2CC? 2CCD
B(&e 2CC? +/(@< <+(/6 @+(<< $+/(:A' +C(A: 6(@+ +<(6A

2CCE
B(&e 2CC? 6/(?C 2CC?2CC? $C(:/' $?(C<' A/(:C C(?A +?C(C@ +@(<+

2CCF
B(&e 2CC? +6(6? 6(<6 $6/(/6' $+E(/E' 6+(<A ?(A: @<(C<

2CCG
B(&e 2CC? ++(<A 6/(@+ $@/(6A' $+A(A/' +A(AA 6@(+6 C(?E

ASSETS
2ash J )alances !ith treasur" )anks %alances !ith other )anks Len ing to financial institutions Investments.net A vances. net -perating Fi*e assets -ther assets.net

B(&e 2CC? +// +// +// +// +// +// +//

T*%(. A&&e%&

1CC.C
+// +// +// +// +// +//

G.G>
A/E(6 <<(?? :(</ $6/(@+' $@?(A+' ?(@E

2C.C1
$<<(@+' $?(EE' +C(E@ +A<(A6 ++<(A? +?(/C

E.2G
@@(C+ 6C@(/E ?(6@ $6@(?C' $+//' 6:(+C

2+.+E
6@(?/ $E/(E/' 6A(+C $<6(+A' 6A(+@ 6<(@A

LIABILITIES
%ills #a"a)le %orro!ings 1eposits J other accounts Lia)ilities against asset su)7ect to finance lease

1eferre ta* lia)ilities.net -ther lia)ilities

T*%(. . (" . % e&

4hare capital 3eserve &nappropriate profit

1CC.C
+// +// +// +//

G.FG
6/(// 6(A@ E+(E+ @?(C $6@(6E'

1D.E?
+A(// +<(?@ @+(<C </(AE ?6(:+

1C.E?
+/(// 6?(@< +A(?: +C(@? $AA(+:'

32>.DG4
+E(<A </(66 +?(<A 6A(<A $@+(:E'

NET ASSETS -RESENTED BY

4urplus on revaluation of assets

T*%(. L (" . % e& ()5 E70 %8

1CC.C

1C.2>

>1.G?

311.G+4

>G.+F

A+

A&,(r B(), -(, &%() L%5. -r*; % A L*&& A$$*0)% H*r M*)%(. A)(.8& & 3R& CCC4 F*r %'e 8e(r e)5e5 De$ +1H 2CCK
2CC? B(&e 2CC? +// +// 2CCD B(&e 2CC? <+(+6 <A(+6 6A(C/ +::(A@ 6A(C+ .CC(/E ?(?@ 2CCE B(&e 2CC? +@(?C 6+(@? A<(A? .E@(<< A<(A? ?AA(/E EE(+@ 2CCF B(&e 2CC? 6/(E< @/(E? +6@(6< .6?A(66 .E6(+< .:E(EC +<<(+< 2CCG B(&e 2CC? <A(6< 66(@:

Mark.up I return I interest earne Mark.up I return I interest e*pense

Ne% 1(r,902 < re%0r) < )%ere&% )$*1e

#rovision against non.performing a vances #rovision for iminution in the value of Investment Provision against off balance sheet obligations %a e)ts !ritten off irectl"

1CC.C
+// +// +// +// +//

2G.+?

11.?+

1C.F>

+C.1?

@?(6A +CA(6A @/(<A .<A(@A AA(+?

Ne%

1(r,902

< )%ere&%

)$*1e

(;%er

1CC.C
+// +// +// +// +// +// 1CC

+1.E>
6@(C6 ?:(6C +/(?< $+@(<C' +6A(AC $?/(+6' 2G.?C

>.C?
+/(<C +6(:A $6+(:6' +//(6< ?+?(/@ $C?(A6' 11.+D

9G.1>
+C(CA $<?(/@' 6:A(? $:<(/@' $A/6' C@A(+/ 21.1G

>C.E?
6/(:E ?@(6< 6<?(6A $CA(+?' $</6' @6+(6< 2?.+D

N*) 1(r,902 )%ere&% )$*1e Fee, commission an )rokerage income 1ivi en income Income from ealing in foreign currencies Gain on sale of securities.net &nreali0e gainI$loss' on revaluation of investments 2lassifie as hel for tra ing -ther income T*%(. )*)91(r,02 < )%ere&% )$*1e

1CC.C

+C.G1

D.2E

C.12

2E.2D

A6

Non mark-up / interest expense Administrative expenses Other provisions / write offs Other charges Total non-markup / interest expenses

+// +// +// 1CC

6/(/: $+/:(C6' 66E(?/ 1G.C1

A(?C +/C6(6+ $E+(CC' ?.??

6E(6C <@@(:: <@C(+E +D.FF

6@(6A <?6(6+ 6/@(+/ DC.2?

-r*; % "e;*re T(:(% *)

T(:(% *) M 2urrent . #rior "ears . 1eferre

1CC.C
+// +// +//

?F.FF
6+(AA $+@:(</' @?(<A

??.>G
$@(@6' $6?(66' @66(<+

+?.?1
@+(EA $+//' $+@/<(?6 '31F.E+4 @+(<C 6<@(@@

EC.2G
@/(<? E/(6A $+6A@'

-r*; % A;%er T(:(% *)

Unappropriated profit b/f transferred Trans from surplus on revaluation of fixed assets on account of incremental depreciation

1CC.C
+// +//

++.G+
+++(@A $+//'

11.F2 +E.D> ?A(AC

+//

?2.>?
+//(@A +CA(::

Profit available for appropriation

1CC.C

DD.CE

>C.+F

1G.1+

E2.D?

The hori0ontal anal"sis of the )alance sheet of the )ank sho!s that current assets increases over the perio of time, the increase in cash an ecrease in loan sho!s that compan" !ants to have more cash in han rather than len ing it to others an losing the return on that investment( as for as the fi*e assets of compan" are concern the" are sho!ing increasing tren an same is case !ith the current an long term lia)ilities )ut the increasing tren in assets is lo!er than the increasing tren in lia)ilities !hich in not a goo position for the )ank (as sho!n in the ta)le )orro!ing are more increase in 6//E( The hori0ontal anal"sis of #rofit J Loss account of "ears 6//C.6//E sho!s a continuous ecrease in mark up, non mark up an also there is a rapi an huge ecrease in the profits in 6//:( The a ministrative e*penses have )een ecrease in 6//: )ut again it !ill increase in 6//E( The income after ta* is ecrease, !hich !as +E; lo!er than the income earne in 6//:( The )ank profits )efore ta* are increasing tren , !hich is +:; higher than the previous "ear of 6//:( The management of the )ank gives man" reasons of the ra ical change in profita)ilit"( First of all, a verse economic con itions omesticall", the la! an or er, po!er shortages, recor high inflation, li,ui it" in the )anking s"stem, steep rise in interest rates, increase in government )orro!ing from the central )ank, rising import )ill an resulting gro!th in fiscal eficit( The interest e*pense is also increase in 6//:.6//E( The management give ifferent reasons that the )anks have )een impose a minimum of A; eposit rate on all the savings schemes( This A<

ha previousl" )een left at the )anks= iscretion as to ho! much the" have to pa"( A fe! of the )anks have also )een penali0e )" the 4%# for acting like association in eposits( 4econ l", there has )een other attractive scheme from the 4avings, !hich offere )etter rates an raine the li,ui it" from )anking sector( Furthermore, the econom" !as going through high inflation, so people !ere not too optimistic a)out saving in )anks as the mone" !as losing is value ver" fast( The provisions against non.performing loans !ere +6@; higher as compare to 6//C( The a vances recor e an increase )ecause the )ank !as len ing though ver" pru entl" ue to increasing 5#Ls $5on.performing loans'( Along !ith the increase in A vances, the composition has also change a )it( A shift from long.term to short.term loans is o)serve (

E.C ORGANIZATIONAL ANALYSIS WITH REFERENCE TO THE COM-ETITORS IN TERMS OF TOTAL ASSETSH TOTAL LIABILITIES AND TOTAL REVENUE
1I%#L is one of the lea ing Islamic %anks !ith Islamic compliant pro ucts( It has earne a
goo market share in a ver" short span of time ue to its efficient an effective management an proactive market approach( There are a lot of its competitors in market tr"ing to ominate its market strength an share( Here 1I%#L is compare !ith 5%# an %AF in terms of its total assets, total lia)ilities an total revenue etc( T*%(. A&&e%& T*%(. L (" . % e& R02ee& ) M .. *)& %anks 5%# %AF 1I%#L 6//E @/,<A@ 6?6?E<@6<E?@ 6+,E<C +C,C:+ 6//: <6,A:A +C,:A: +6,A?A 6//E +E,<E< +A,<?A +A<6< +/,<?6 6//: +@,?:C +6,<6@ :,A@6 6//E 6A,<?: 6A<?A@6, 6+,:A@ @<,EC+ +A,<?: 6//: 6/,A:C +:,AC@ +6,?A@ T*%(. Reve)0e

$4ource9 Annual reports of various )anks' As per the ta)le, the total assets of 5%# are @/<A@ million in 6//E !hich are ma*imum in volume as compare to %AL an 1I%#L( In 6//E, the total assets of 1I%#L are +CC:+ !hich A@

sho! a positive tren as compare to 6//:( 4imilarl" the tren s of all )anks from 6//: to 6//E are positive an sho! a goo change in terms of ,uantit"( The volume of lia)ilities of 5%# is higher as compare to other )anks ue to its e*tensive )ranching an net!orking( The volume of all the )anks sho!s positive tren s from 6//: to 6//E( This is )ecause of ne! pro7ects, increase in short term an long term lia)ilities( The volume of 5%# is high as compare to other )anks like %AL an 1I%#L in terms of ,uantit" ue to its e*tensive pro ucts net!orking an the other reason is that )ecause it pla"s the functions as an agent of the government( 1I%#Ls volume of revenue is comparativel" lo!er as compare lo!er then its competitors( %ecause 1I%#L has recentl" esta)lishe in 6//A thatBs the reason its volume of revenue is lo!er(

F.C FUTURE -ROS-ECTS OF DIB-L

1I%#L remains committe to the interest of all stake hol ers inclu ing its emplo"ees, o!ners, regulators an #akistani nation( 1I%#L has efine strateg" on !here an ho! !ant to procee in the "ears to come( With the implementation of the ne! K2ore %anking #ackageB, 1I%#L !ill completel" automate its functions !hich in turn !ill apprecia)l" enhance !ork efficienc"( 1I%#L !ill continue to iversif" customer segments there)" increasing pro uct offering( 1I%#L committe to!ar s the emplo"eeBs empo!erment I evelopment !ill continue 1I%#L )elieve that a motivate an !ell traine !ork force is necessar" to ensure sustenance an gro!th( -n the )usiness si e its main focus !oul )e to re uce non.performing loans an increase eposits( 1I%#L remain committe to its Fision, Mission J core values an its strateg" for the future inclu es recover" efforts an revival of non.performing loans, eposit mo)ili0ation, consoli ation of loans, e*pense management an tapping into untappe markets )" increasing our net!ork )oth omesticall" an internationall"( 2ustomer service !ill remain its main focus of -perations management( Finall" 1I%#L e*ten its appreciation to the )ankBs staff for their commitment, e ication an har !ork in achieving these e*cellent results( 1I%#L !oul like to e*press its sincere reverence to the %oar mem)ers !hose valua)le gui ance has al!a"s enlightene in ecision making( Finall" 1I%#L !oul like to e*press its appreciation to stakehol ers, regulators an its value customers for their support an continue confi ence in 1I%#L( 3S*0r$e DIB-L ())0(. re2*r% 2CCG4

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G.C WEAKNESSES OF THE ORGANIZATION WITH MAIN FOCUS ON FINANCIAL MANAGEMENT

C0&%*1er S(% &;($% *)/ In 1I%#L customer ealing is !ell, )ut uring rush hour the customer has to !ait for a long time for their turn( ItBs ,uite har for a ne! customer or potential customer to get the re,uire information( -**r re$*r5 1()(=e1e)% ()5 ; . )= &8&%e19 1uring m" internship I o)serve that filing s"stem of )ranch is not goo ( When certain recor is nee e the staff has to struggle to fin it out an a lot of time is !aste ( U)e70(. 5 &%r "0% *) *; !*r,9 Work is not e,uall" istri)ute ( -n one han some

emplo"ee have to !ork all a" !ithout rela*ing !hile some others have nothing to o at all( This not onl" creates confusion among emplo"ees )ut also hurting an istur)ing for overall setup of the )ank( An a)ove all it results in issatisfaction among customers as !ell( D ;;ere)$e "e%!ee) %'e*r8 ()5 2r($% $e/ A vast ifference e*ists )et!een theor" an practice an 1I%#L has !ritten proce ure )ut practical !ork one )" emplo"ees is a )it ifferent from !ritten proce ures( B(), 50%8 %* 1( )%( ) &e$re$8/ The" onBt care a)out maintaining secrec", especiall" uring the rush hours( The" speak lou l" a)out the account position an !hile getting clearance of che,ue the person can easil" get the !hole information from the le ge( The eposit clerk must )e careful !hile passing an" che,ue( In this regar another shortfall is in giving the information a)out the )alance on telephone( E:$e&& ve 2(2er !*r,/ It is notifie that ue to the length" proce ure of paper !ork the )ank emplo"ee are over )ur ene ( The" are una)le to give proper attention to the clients an face ifficulties in getting their 7o) one( -ne reason for length" proce ure an e*cessive paper !ork in the )ank is the lack of computeri0e technolog"(

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M*re ($$*0)%& ;e!er 5e2*& %&/ >fficient )anking is one, !hich oes not emphasi0e on num)er of accounts )ut on greater amount of eposits( 1I%#L is more intereste in increasing its num)er of account irrespective to its eposit( De.e=(% *) *; (0%'*r %8/ Manager has ver" limite authorit"8 he has to take the approval from his management authorit" i.e( In case of a vance he has to take the approval of general an regional manager( The other pro)lem is create , !hen the manager is not present in his office, the customer having to !ait for hours( This iscourages )oth customer an officers )ecause the" have to suffer a lot( L($, *; &2e$ (. Me5 %r( ) )=/ 1I%#L oes not provi e a e,uate facilit" of speciali0e training to their staff( Training is generali0e rather than speciali0e ( As the !orker finishes his training, he is in ucte into a specific fiel !ithout having great eal of kno!le ge a)out the fiel ( (

1C.C CONCLUSION
1I%#L is an effectivel" operating an profit making organi0ation an carr"ing out its activities un er a specifie s"stem of proce ure( The main regulator" )o " is 4tate %ank of #akistan, !hich provi es polic" gui elines an professional )asis( While the hea streamline the approach an ensures that the mone" market operates on soun !ith the passage of time !ith a vie! to office specifies the !hole proce ure of function an

operations( This proce ure has )een mo erni0e

un erl"ing proce ure for effective overhauling of its o!n

capa)ilities so as to )ring them at par !ith international practices( There are people !ho are motivate to!ar s their !ork )ut on the !hole, it seems like

emplo"ees o not !ork on time an en7o"s !asting their time, !hich is a )ig hur le in its !a" to progress( Also !orking at the )ank, I also foun out that all the epartments are not linke together( >mplo"ees usuall" hi e their !ork from other emplo"ees as its match going on an !hoever oes the )est !oul )e a!ar e ( That shoul not )e the case( All the epartments shoul !ork as team not as in ivi uals, so that the !hole )ranch !oul get )enefit out of it( 4o

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there is a lack of team!ork, also ue to this !eakness of the )ranch, its customers are not satisfie ( I talke to man" clients of the )ank )ut most of them !ere not satisfie !ith the services provi e speciall" in the epartments namel" Account epartment, 2ash epartment an %ill collection section( 4o I !oul suggest to the emplo"ees to !ork !hole. hearte l" an sho! keen interest in their !ork(

11.C RECOMMENDATIONS AND SUGGESTIONS

Here I am giving some suggestions, !hich in m" vie! can a #articular The recommen ations are as follo!s9 In my opinion the process of a transaction should be short in order in save time for both customers and the bank. Staff strength should be enhanced and professional .ualified persons should be recruited. It is recommended that proper training be provided to the staff members that will ultimately increase the performance of Bank over all. It is suggested that promotion be given to the staff in due time and on the basis of performance to provide $ob satisfaction. *he bank should spend more on renovation of the branches to improve environment and atmosphere to attract the customers. Sitting arrangement# air conditioning and new furniture should be facilitated *he Bank should introduce the computers software to cope the heavy load of work and better control. some input for efficienc" an F.+/ Marka0 %ranch in

)etter performance of 1I%#L as an organi0ation in general an

A:

 4xtra counters should be established in order to facilitate during the rush days the difficulties faced by the bank staff as well as the customers. All Branches of the Bank must be online. All the departments should be established separately. Bank can increase its profit ratio by reducing extra expenditures and to enhance the volume of advanced especially retail loans. I done internship# I recommend that security level in the bank should be enhanced especially where I got internship and operation of (obile phones must not be allowed inside the Bank. Bank should take step to establish separate counters for the old age employees and pensioners. *he Bank should locate new market for its operational activities in the country as well as abroad. *he Bank should increase profit rate on deposits and saving schemes especially for pensioners and old age citi5ens. %or improvement of internal control and system the compliance wing and surprise inspection system should work more effectively. *o avoid complaints and leaving the bank $ob number of staff should be enhanced and their salaries should be leveled to the private8multinational banks. Double shift system should be introduced to improve attitude and behavior of the employees. ayment of salaries should be made separately to accommodate the valued customers and depositors. %or collection of utility bills i.e. 4lectricity bills# *elephone bills# &ater and )as bills separate cash receipt counter must be established. rocedure of receiving loans should be easy and short time to facilitate the borrowers and enhance the profitability of the Bank

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12.C REFERENCES
!!!( i)pl(com(pk !!!( i)pl(com(pkIAnL3eport(htm !!!(s)p(org(pk !!!(askare)ank(com(pk !!!(mc)(com(pk !!!()ankalfalah(com !!!(h)l(com(pk !!!(u)l(com(pk !!!(a)l((com(pk !!!( ail"times(com(pk Irsha , M( $6//C'( Mone" %anking an Finance, 5a""ar Asa #rinters( ?/

4i i,ui, A( H( $+EE:'( #ractice an la! of %anking in #akistan $6n > ', Narachi 1ecent #rint >nterprises( Fan Horne, D(2 an D(M Wacho!ic0, D3(++th > ition, GFun amental of Financial ManagementH 5e! Derse"9 #rentice.Hall, Inc(+EE:. (anagement Brief# Ganuary C??D published by "uman 'esources (anagement and administration )roup# Askari Bank akistan !td. "ead Fffice =arachi.

%inancials,"alf Hearly Account Gune 2?# C??D. 4conomic Indicators akistan# Ganuary C??D published by 4conomic 'esearch &ing# 0redit (anagement )roup# DIB ! "ead Fffice =arachi. Annual 'eport C??@#C??3#C??B#C??D# C??> published by DIB !# "ead Fffice =arachi. Brochure, DIB ! Awards 7 Achievements. %inancial 'eview of Banking Sector by State Bank of akistan Interviews of Bank staff of DIB !

ORGANOGRAM OF DIB-L

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ORGANOGRAM OF F91C MARKAZ BRANCH

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