Internship Report

On
ASKARI Bank Ltd. KHANEWAL

Compiled By:
Imran Mehmood
Mc070200390
MBA (Finance)
Session 2007-2009
Cell # 0333-5585694
Date of Final Report
Jun 29, 2009

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Dedication

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 ACKNOWLEDGEMENT

First of all I praise to Almighty Allah who gave me the strength and
courage and patience to complete this report.

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 I am highly thank full to Mr. Rehmat Ali Sheikh (Manager
Operations), Miss Farhana Ali (In charge General Banking Officer) and
Mr. Mehmood Ali Siddiqui (Head Cash Department).

I am also thanks full to Instructor FINI 619 (Virtual University) who

provided me this opportunity to carry out this report. In the end I praise
my friends who assist me in completing this report.

Executive summary

Internship is an integral part of MBA program. Main purpose of internship is to

have a practical experience. It provides a student to get a practical experience and
give inner view of the organization selected. During this internship, a student comes
to practical knowledge. I have also done my internship in ASKARI Bank Ltd.
Khanewal. Knowledge can not perfect without practical. So, in Khanewal branch I get
practical exposure and to get familiarized with the ways to live in the organizational
environment which is dramatically different from the educational environment.

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 First of all I will tell you about Bank then I will tell operations of different
department. In preparing this report Mr. Muhammad Arif Waseem Manager
Khanewal branch and all staff members help me about all topics, I have put
all of my best efforts and tried my level best to give maximum knowledge.

Scanned Copy of Internship Report

Ghgh

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Table of Contents

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Brief introduction of the organization’s business
sector

There are at present 20 domestic banks with 7,590 branches and 21 foreign
banks with 71 branches in operation in the country. Total Paid-up capital of
scheduled banks amounted to Rs. 33.82 billion as on 1st April, 1993 as compared to

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Rs. 29.29 billion on 2nd April, 1992. Their total assets amounted to Rs. 1089.76
billion on 1st April, 1993 as compared with Rs. 864.92 billion on the corresponding
date last year. Their assets increased by 13.1 per cent during the first nine months of
the current year up to 1st April, 1993 compared to an increase of 12.0 per cent during
the corresponding period a year earlier.

During this period their credit showed a rise of Rs. 55.54 billion or 20.3 per
cent as compared with a rise of Rs. 30.54 billion or 13.0 per cent during the
corresponding period last year. They mobilized deposits aggregating to Rs. 46.74
billion during the first nine month period of the current year as compared with an
increase of Rs. 40.01 billion recorded during the same period last year, indicating a
rise of 16.8 per cent. Their investment in government securities, treasury bills and
other investment in shares and securities increased by Rs. 13.00 billion as compared
with an increase of Rs. 24.84 billion in the comparable period last year.

PRIVATE BANKING

Pakistan's private banks seem to have made deeper inroads in the saving
habits of people as the promising working results published by half of them for last
year alleyed fears about their commercial viability in a tight liquidity market and a low
savings rate. Most of them have completed the first year of their operation
successfully, showing profits and in some cases good payouts too. Many financial
analysts felt that years to come could be much better if the current pace of growth
was maintained. What seem to have impressed them are economics of scale at all
levels and an efficient management of the financial affairs. "If the maiden year is any
yardstick to the future, they have snatched away their due share with skill and
professional efficiency, "says a leading financial analyst. But most of them have
transferred big amounts to reserved fund or special reserve funds, a tendency might
be good or bad at the same time for a new bank, he added.

In some cases they did not share profits with the share holders but made it a
point to transfer certain amounts to the reserve funds. What is important for us is to
maintain a strong liquidity position at least for the initial few years as a cushion
against high borrowing costs and other allied compulsion of the situation, another

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banker said and added it was also necessary to meet the central bank's
requirements.

Some two years ago Pakistan government allowed the private sector to set up
commercial and investment banks and soon after more than a dozen banks were
established. Pakistan had five banks in the public sector, out of which two Muslim
Commercial Bank (MCB) and Allied Bank Limited (ABL), have been sold to the
private sector.

Most of the new banks were owned by powerful industrial groups including
Saigols, Habibs, Dawoods and Nishat groups, some of them have stake in more than
one bank. Banking sources said though some of the banks catered to the needs of
their group business, they are as open to others as to their own group.Banks in
Pakistan have been catering basically to the needs of the Government

Organizations, subsidizing the fiscal deficit, serving a few large corporations and
engaging in trade financing. There was no lending to small and medium enterprises,
to the housing sector or to the agricultural sector, which create most of the growth
and employment in Pakistan. Most important, the financial system suffered from
political interference in lending decisions and also in the appointment of managers.
The middle class which is the backbone of any Reproduced from Blue Chip – The
Business People’s Magazine - January 2005 economy was not given due attention
by the banking sector. There were legitimate reasons for such an errant behavior.
First, the government’s fiscal deficit was so high that most of the deposits the banks
used to get, were loaned to the government and government corporations. This was
safe lending which fetched good returns and the banks made good profit out of it.
Naturally, there was little incentive for them to do anything else except lend to the
Government which was both risk free and highly remunerative. Secondly, the
government owned most of the banks. In the government banks the staff worked like
typical government employees, coming to office at 9:00 a.m., checking files; having
nothing important to do and leaving at 5.00 p.m. without doing much work. These
banks suffered from a high bureaucratic approach, overstaffing, unprofitable
branches and poor customer service. Administrative costs were high reducing profits
of depositors. Thirdly, recovery rate was so low that almost 25% of the loans were
stuck up as a large number of loans to the private sector borrowers were not given

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on the merit of the proposal but on political considerations. These influential
borrowers hardly repaid their loans. Fourth, banking industry faced a high tax rate of
58 percent while the rest of the corporate sector paid only 35 percent. This high
punitive rate along with the burden of stuck loans and inefficiency of the staff was
passed on to the customers in form of high lending rates and low deposit rates. The
banking industry was not attractive for new entrants who could foster competition and
improve efficiency. Because of these factors, i.e. high administrative costs, burden of
stuck-up loans and excessive tax rates, the average interest rate for lending was
about 21% per annum. The middle class borrowers could not afford to get credit on
such high interest rates and pay it back. Banking sector reforms were thus needed
badly to address these and other constraints so that the banks could play their due
role in the economic development of the country. Although, there is no room for
complacency and a lot still needs to be done, even the worst critics of this
government do concede that if there is one sector which has undergone basic
transformation that is the banking sector. The IMF and the World Bank who are not
always very generous or effusive in their praise had this to say about the Banking
sector in Pakistan after completing a comprehensive and thorough review in early
2004. Quote: “far reaching reforms have resulted in a more efficient and competitive
financial system. In particular, the pre-dominantly state-owned banking system has
been transformed into one that is predominantly under the control of the private
sector. The legislative framework and the State Bank of Pakistan’s supervisory
capacity have been improved substantially. As a result, the financial sector is
sounder and exhibits an increased resilience to shocks”

Recent trends in the Banking Sector

 Increased Merger & Acquisition activity in the banking sector with local private
banks having made several domestic acquisitions
 Large expansion of branch network and deposits by private and some foreign
banks
 Rationalization of branches by nationalized banks
 Increased focus towards consumer finance

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  Increased focus on attracting local rupee deposits
 Increased emphasis towards automation and customer service
 Reduction in the increase in non performing loans as a result of better
governance of banks and greater accountability process initiated by the
government
 Significant increase in inward remittance business as a result of governmental
clamp down on unofficial remittance channels following September 11.

Overview of Organization

Brief History

Askari Bank Ltd (formerly Askari Commercial Bank) was incorporated in

Pakistan on October 9, 1991, as a Public Limited Company. It started its operations

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during April 1, 1992. The bank principally deals with banking, as defined in the
Banking Companies Ordinance, 1962. The Bank is listed on the Karachi, Lahore &
Islamabad Stock Exchanges and its shares are currently the highest quoted from
among the new private sector banks in Pakistan.
Askari Bank has expanded into a nationwide presence of 150 branches, and
an offshore banking Unit in Bahrain. A shared network of over 1,100 online ATMs
covering all major cities in Pakistan supports the delivery channels for customer
service. As on December 31, 2007, the bank had equity of PKR 12.27 billion and
total assets of PKR 182.17 billion, with over 800,000 banking customers, serviced by
our 6,808 employees.

Product lines (A complete range of products/ services of the

organization)

Consumer Banking Services

Askari Finance / Loans

Smart Cash

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Product Featuring:

Borrower: Resident Pakistani Nationals

Facility: Personal Line of Credit.
Maximum up to Rs. 500,000/-(Clean)
Financing Limits:
Maximum up to Rs. 1 Million (Secured)
Tenor: One year (renewable).
Monthly debt servicing on the outstanding
Repayment:
balance.
Markup Rates: Competitive.
Servicing: Available at all Askari Bank Branches
Balance Transfer
Available.
Facility:

Eligibility to Apply:

Age: Between 21 to 65 Years.

Income: Minimum gross monthly income of Rs. 25,000/-
only.
Employment: a) Salaried: Minimum length of confirmed service
with present employer is six months with a total
length of one year service. b) Self Employed:
Minimum 1 year in business. (against security).
Charges/Fees:As per current schedule of charges.

Personal Finance

One of the quickest approval processes around

One can avail unlimited opportunities through Askari Bank’s Personal Finance. With
unmatched financing features in terms of loan amount, payback period and most
affordable monthly installments, Askari Bank’s Personal Finance makes sure that you
get the most out of your loan. No matter what your need is, Askari Bank has more
ways to serve you than ever before.

Product Featuring:

Borrower: Resident Pakistani Nationals.

Facility: Term Finance
Financing Limits: Maximum up to Rs. 500,000/. (Clean)

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 Maximum up to Rs. 1 Million. (Secured)
Tenor: Maximum up to 5 Years
Repayment: Monthly Installments
Markup Rates: Competitive
Servicing: Available at all Askari Bank branches
Balance Transfer Facility: Available

Eligibility to Apply:

Age: Between 21 to 65 years.

Income: Minimum gross monthly income of Rs. 10,000/-
only.
Financing Maximum up to Rs. 500,000/. (Clean)
Limits:
Employment: a) Salaried: Minimum length of confirmed
service with present employer is
6 months with a total length of 1
year service.
b)Self Minimum 1 year in business.
Employed:
Charges/Fees: As per current schedule of charges

Mortgage Finance

Ever since the inception of life, shelter has been rated among the primary needs of
mankind. Owning a home for oneself still remains an exclusive dream for many.
Askari Bank has made the realization of your dream to have a house of your very
own possible. Whether you plan to build a house, tailor made to your requirements or
buy a constructed house, Askari mortgage finance enables you to pursue your goal
without any problems.

Product Featuring :

Borrower: Resident Pakistani Nationals.

Financing Limits: Maximum up to Rs. 30 Million.
Tenor: Maximum up to 20 years.
Repayment: Monthly Installments.
Prime Security: Mortgage of property.
Markup Rates: Competitive
Servicing: Available at all Askari Bank Branches
Balance Transfer Facility: Available
Balance Transfer Facility: Available.

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Eligibility to Apply :

Age: Between 21 to 65 years.

Income: a) Salaried: Minimum gross monthly income
of Rs.20,000/- only and a
permanent employee with at
least 2 years of service including
present employer.
b)Self Minimum length of 1 years in
Employed: business.
Charges/Fees: As per current schedule of charges.

Business Finance

You always wanted to put in that extra money into your business, which makes it
grow... and grow!. Now you can stop worrying about your daily cash requirements,
and start enjoying our unique Askari Business Finance facility.

Available up to 60% of the assessed market value of your residential property,

through equitable/token mortgage.

Product Featuring:

Borrower: Resident Pakistani Nationals.

Facility: Running Finance/Term Finance.
Financing Limits: Maximum up to Rs.1.0 Million
Maximum up to Rs.50.0 Million
Primary Security: Residential & Commercial / Built up Properly &
Land.
Mode of Financing: Running Finance: One year line of credit
(renewable).
Repayment: Running Finance: Monthly debt servicing on
the outstanding balance.
Markup Rates: Competitve.
Servicing: Available at all Askari Bank Branches.
Balance TransferAvailable

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 Facility:

Eligibility to Apply:

Age: 21 to 65 Years.
Borrowers: Resident Pakistani Nationals.
Business Requirements:Maximum up to Rs. 500,000/. (Clean)
Employment: Minimum one year's business or
professional experience in the present
business
Charge/Fees: As per current Schedule of charges

Investment Products

Askari Mahana Bachat Account (1 + 3 Years Term)

“Earn Rs. 925/- per month on investment of every Rs. 100,000/- for one year!"

“Earn Rs. 1,000/- per month on investment of every Rs. 100,000/- for three years!”

Askari Mahana Bachat Account is a Term Deposit facility available to individual

customer with the option of 1 and 3 Years tenure. It has been designed keeping in
view savings needs of individual investors who don’t want to block their funds for
longer terms, with a competitive rate of return paid monthly on the 1st of every
month. A financing facility up to 90% will be available for customers if required.

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Salient Features

Product Type: Term Deposit

Eligibility: Individuals Only
Minimum Rs. 50,000/-
In multiples
Balance requirements: of
Maximum up to Rs.
Rs. 25,000/-
10,000,000/-
Tenure(s): 1 + 3 Years
Profit payment: Monthly - 1st of every month
Profit Rates: Competitive
Servicing: Available at all Askari Bank branches
Financing Limits: Up to 90% of the principle amount

Askari Roshan Mustaqbil Deposit

Askari Bank has launched the Askari Roshan Mustaqbil Deposit, a saving plan
specially designed for individual investors who wish to invest now for a regular return
at a later stage while keeping their principal amount intact. With Askari Roshan
Mustaqbil Deposit you can double your investment in a time period of ten years.
Invest now in the form of monthly deposits for five years and get paid back the same
amount for the next five years while receiving your principal amount in full at the end
of the tenure.

Salient Features

Product Type: Term Deposit

Eligibility: Individuals Only
Minimum Rs. 5,000/-
Balance In multiples of
requirements: Rs. 5,000/-
Maximum up to Rs. 50,000/-
Tenure: 10 Years (5 + 5)
Profit payment: Monthly – on completion of first 5 years
Profit Rates: Competitive
Servicing: Available at all Askari Bank branches
Up to 90% of the principle amount after
Financing Limits:
completion of first 5 years

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Askari Deposit Multiplier Account

“Value of initial investment of Rs. 100,000/- will increase to Rs. 265,000/- at maturity!”

Aim higher with your investments with Askari Deposit Multiplier account. This account
is for individual investors whose purpose is long term savings with high returns. With
a tenure of 10 Years and a competitive rate of return on maturity this account is ideal
for investors who wish to start saving for their future today.

Salient Features

Product Type: Term Deposit

Eligibility: Individuals Only
Minimum Rs. 50,000/-
Balance requirements:
Maximum up to Rs. 10,000,000/-
Tenure: 10 Years
Profit payment: On maturity
Profit Rates: Competitive
Servicing: Available at all Askari Bank branches
Financing Limits: Up to 90% of the principle amount

Askari Deposit Multiplier Account

“Value of initial investment of Rs. 100,000/- will increase to Rs. 265,000/- at maturity!”

Aim higher with your investments with Askari Deposit Multiplier account. This account
is for individual investors whose purpose is long term savings with high returns. With
a tenure of 10 Years and a competitive rate of return on maturity this account is ideal
for investors who wish to start saving for their future today.

Salient Features

Product Type: Term Deposit

Eligibility: Individuals Only

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 Minimum Rs. 50,000/-
Balance requirements:
Maximum up to Rs. 10,000,000/-
Tenure: 10 Years
Profit payment: On maturity
Profit Rates: Competitive
Servicing: Available at all Askari Bank branches
Financing Limits: Up to 90% of the principle amount

Askari value plus deposits

The Best You Deserve

Askari Bank leads the way, yet again with the introduction of Askari Value Plus
Rupee Deposit Accounts, which promise greater financial freedom and security, in an
un-matched way.

Now you can open a "Value Plus Account" while enjoying the flexibility of a normal
checking account.

1. Value Plus Current Account

2. Value Plus Saving Account
3. Value Plus Time Deposits

askari rupee traveller cheques

Askari Bank Limited has always remained at forefront in introducing innovative

and unique products in banking sector. Our financial instruments provide greater
financial freedom and security in an unmatched way to our valued customers.

Askari Bank offers you its "Rupee Traveller Cheques" eliminating all financial
risks while traveling. So avoid risk of carrying cash through Askari Bank's
Rupee Traveler Cheques.

"Your Best Travelling Companion"

ASKCARD

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Askari Bank is committed to provide you innovative and competitive solutions to your
banking needs in a more efficient and personalized manner. Your Bank enjoys a
strategic competitive advantage over all domestic players by virtue of its leadership,
large network and technological advancement. In line with our tradition of innovation,
Askari Bank takes pride in announcing launch of Askari Bank's Debit Card.

Askari Debit Card means freedom, comfort, convenience and security, so that
you can have retail transactions with complete peace of mind. Askari Debit Card is
your new shopping companion which enhances your quality of life by letting you do
shopping, dine at restaurants, pay your utility bills, transfer funds, withdraw and
deposit cash through ATM anywhere, anytime.

"Convenience at its best"

Internet Banking Services

In pursuance of our quest to provide the most modern service to our customers, we
offer banking through internet. Askari Bank is the first bank in Pakistan to provide
such service to its valued customers which is absolutely FREE

Important Features

1. Balance enquiry
2. Funds transfer
3. Statement of accounts
4. Chage of password
5. Free payment of utility bills
6. Payment of school fee

Electronic Bill Payment Services

It has always been our endeavour to introduce products and services tailor made to
the requirements of our valued customers. Now you can pay your Utility Bills through:

1. ASKCARD (Askari Debit Card),

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 2. Askari bank's ATMs Nationawide
3. Internet Banking Services
4. Call Center.

Cash Management Services

Askari Cash Management Services, aimed to effectively manage the accounts

receivable portfolio of medium and large corporate entities. While this service helps
the corporate entities to improve their liquidity, due to our well diversified branch
network.

The service primarily aims at providing clearing, collection and cash / transfer
facility to corporate, under one resource center, which will handle the process
through the branches and provide adequate reporting to the corporate clients, on
various aspects of their accounts receivable portfolio, every month

Investment Certificates.

Askari Bank's Investment Certificates not only provide the added security,
investment and monthly return to the customers. These certificates are negotiable
and can be transferred to third party. Investment Certificates can be issued for a
period of 3 months and profit is payable on monthly basis through pre-printed
tear-off coupons

Product Features

1. Free issuance and free encashment

2. Account relationship with Askari Bank is not mandatory
3. No penalty on pre-mature encashment
4. Negotiable and payable in Pakistan in Pak rupees only
5. No purchasing limit
6. Valid until encashed

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 7. Encashable at all Askari Bank Branches
8. Profit is payable on monthly basis through pre-printed coupons
9. In case of loss / theft or damage, there is replacement / refund to the original
purchaser
10. Encashment by third party

There is no penalty on pre-mature redemption, except that profit coupon shall be

valid only for completed month

Profit / Markup Rates on Retail Products

Rates of Profit Paid to Value Plus A/C Holders & on ABIC

Particulars Profit Rates

Value Plus Saving Deposits
Rs. 10,000/- to Rs. 24,999/- 2.50%
Rs. 25,000/- & above 3%
Value Plus Time Deposits
Three months 5%
Six Months 5.50%
One Year 6%
Investment Certificates
First Month 4%
Second Month 4.50%
Third Month 5%

Commission being paid to customers on retention of RTC for a period of One Month, @ 0.1%
of face value of RTC.

Lending Product Rates

Particulars Markup Rates
Personal Finance
Up to 3 Years 18%
Up to 5 Years 22%
Smart Cash
1 Year (Renewable) 22%
Business Finance
1 Year 1 Year Kibor + 3% to be reviewed
on yearly basis
Mortgage Finance
20 years maximum 1 Year Kibor + 3% to be reviewed
on yearly basis.
Auto Financing 13% to 15%

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Islamic Banking Services

Islamic Banking was launched under the brand 'Askari

Islamic Banking', by opening 6 dedicated Islamic Banking
branches in major cities of the country. Further expansion
is planned with improved capabilities for offering products
conforming to the Shariah principles.

Askari Islamic Banking opens the doors for Halal banking

solutions. Our objective is to put in place an efficient
banking system suuportive to economic justice and welfare of society in line with
Shariah standards.

A comprehensive range of Islamic Banking products and services is bieng offered, in

order to meet customer's demand of Shariah Compliant Banking, in the following
areas:

• Islamic Corporate Banking

• Islamic Investment Banking
• Islamic Trade Finance
• Islamic General Banking

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 • Islamic Consumer Banking

Islamic Banking products have been approved by the Bank's Shariah Advisor. As per
Shariah requirements, funds and products of Islamic Banking are managed
seperately from the Conventional Banking side. All funds obtained, invested and
shared in Halal modes & investments, under supervision of the Shariah Advisor.

ASKARI KISSAN AGRICULTURE FINANCE PROGRAM

Agriculture Finance Solutions

The role of agriculture in Pakistan economy is of

pivotal nature. Due to diverse geographical and
climatic conditions the country has tremendous
potential for growth and development in
agriculture. However, adequate and timely
financial assistance to the farmers will improve
production potential of agriculture sector in the
country. The modern concept of agricultural
credit envisages establishment of an efficient
institutional credit system to serve as a package
of credit, supplies and knowledge for the overall strength of the farmers who at
present suffer from low productivity and financial insecurity. A successful credit
evaluation system, therefore, should have the basic ingredients to provide adequate
amount at the right time and in the right form to help farmers in making a productive
use of loan funds.

The Askari Kissan Agri Finance Program (AKAFP) has been designed to meet ON
FARM / OFF FARM credit requirements of farmers on the most convenient, flexible,
easy terms and conditions. The program features:

• A broad array of credit lines designed to meet farming requirements.

• Repay and borrow at your convenience on revolving credit basis at lowest
mark-up rates renewal able after three years.

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 • Convenient repayment terms based on cash flow abilities.
• Availability of leased Tractors / Transport without Land / Collateral.
• No Hidden Cost.
• Availability of interest free package for inputs and tractors etc.
• No Pre-adjustment penalties.
• Earn prompt payment Bonuses and reduce financial costs.
• Insurance cover of leased assets, animals, crops and life assurance of
borrowers.

Kissan Tractor Finance

Traditional modes of cultivation viz Bullocks,

Camels, horses etc can no longer keep pace with
the demands of present times due to manifold
increase in the population. Power in the form of
modern technology is therefore the need of the
hour. To meet this emergent requirement, Askari
Bank has launched a Askari Kissan Tractor Finance to bring power to the fields.

Salient Features of the Program are:

• This program has been designed to benefit the owner as well as non-owner
farmers.
• The farmer will have privilege of availing non-funded facility at a reduced cost
under this program on account of more equity participation.
• Although the facility is available for a period of five years. However, good
farmer bonus will be available to the borrower in case the loan is repaid as per
terms of sanction.

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 • Priority in delivery of tractor will be given by manufacturer as per
arrangements with the bank.
• The farmer’s life & tractor will be insured against contingencies, which will
provide comfort and piece of mind.

Kissan Aabpashi Finance

Agriculture farming is impossible without adequate

water. We can combat the prevalent water scarcity by
harnessing more natural resources. Increased use of
mechanical means thus provides a ready alternative.
Keeping in view the scarcity of water, which is the
lifeblood of arable lands, Askari Bank has started a
program for farmers, to finance installation of Tube-Wells (electric, diesel and solar
energy units) water management equipments and water channel development etc.,
which will help farmers to make optimum use of limited water resources.

Salient Features of the Program are:

• To facilitate the farmer, to overcome the scarcity of water.

• To develop mechanical water resources, sprinkler and drip system etc.
• To avoid traditional / inefficient modes of irrigation and waste of available
water.
• To manage natural / available resources through water management
practices.

KISSAN LIVE STOCK DEVELOPMENT FINANCE

In order to supplement the income of the farmer, Askari

Bank has launched a program enabling the farmer to
purchase Milch Animals, Goats, Sheep, Poultry and
Fisheries without incurring extra expenditure because
of availablility at his farm. He will be able to get milk,
meat and eggs etc., which normally do not form part of

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his diet. This program has the added advantage that besides fulfilling his own family’s
consumption needs he will be able to market the surplus and earn additional income.
This will further improve their cash flows to repay their other Loans / Revolving Credit
on due date

Salient Features of the Program are:

• The program will provide regular day to day income to the farmer to meet his
own consumption and surplus to be marketed.
• This will revive / accelerate and supplement the income generating capacity.
• It will enhance the repayment capacity of the farmer.

KISSAN FARM MECHANIZATION FINANCE

Beside Power at the farm i.e. Tractor, the benefits /

advantages of power are maximized with the use of
Mechanical Support i.e. modern and improved
equipments which essentially complement one another
due to their cost effectiveness and time efficiency.
Askari Bank has launched an Askari Kissan Farm
Mechanization Finance for the assistance of the small farmers and provide finance
for farm equipment, trailer, thresher, drills & rotavators etc.

Salient Features of the Program are:

• Under this program the farmer will get benefit of use of modern agricultural
tools, implements and equipments which are cost and time effective.
• Improves per acre yield of agri crops and quality of agriculture produce to get
good price in the market.
• Helps to match / compete with international standards for exportable
agriculture produce.

KISSAN FARM TRANSPORT FINANCE

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A grave handicap that afflicts our farmers is their
inability, due to lack of proper facilities, to take their
produce to the market through efficient means of
transportation. This adversely affects the freshness,
quality of the product and denies them the desirable
Price-Fetching opportunity. Conversely, they lack
mobility to acquire much needed inputs essential for their farming needs. One can
safely conclude that if provided with appropriate and speedy transport, the farmer
can benefit by enhancing his selling ability and thus increase his income / cash flow.
it is pertinent to mention that a number of Banks, Leasing Companies and Private
Agencies have geared their marketing efforts to concentrate on and have mainly
captured the urban markets. There is no support provided to cater to the transport
needs of deserving rural farmers community. Askari Bank true to its commitment, has
taken the lead to launch Askari Kissan Farm Transport Finance.

Salient Features of the Program are:

• To increase mobility and access of the farmer to the markets.

• To lower the burden / cost of transportation against hired transport.
• To create awareness of market movements in order to obtain maximum price
of their produce.
• This will also supplement the income of the farmer which will ultimately
enhance the repayment capacity of the borrower.
• Additional income can be generated if used for hired services to the fellow
farmers.

Competitors

In the success story of ASKARI BANK, one of the most important factors, apart from
its dynamic management and prudent approach, is the QUALITY of its SERVICES,
which gives it a great edge over its competitors. ASKARI BANK has always strived to
facilitate its customers by introducing various high quality hi-tech services for the first
time in Pakistan.

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• National Bank of Pakistan
• Emirates Global Islamic Bank
• Meezan Bank Limited
• Allied Bank Limited
• MCB Bank Limited
• NIB Bank Limited
• United Bank Limited
• Habib Bank Limited
• House Building Finance Corporation
• Khushhali Bank Limited
• Askari bank Limited

Organizational structure

Organizational Hierarchy chart

President
(CEO)

Senior Executive Vice

President
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Executive Vice
President

Senior Vice
President

Vice President

Assistant Vice
President

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 Branch Manager

Assistant Manager

Operations Manager

Officers Grade I,
II, III

Clerical Staff Non-Clerical Staff

Cashier Typist & Clerks Guards & Messengers
Assistant

32
Corporate Information
Lt. Gen. Javed Zia (HIM) Chairman

Lt. Gen (R) Imtiaz Hussain Chairman Executive Committee

Mr. Kashif Mateen Ansari Director

Mr. Zafar Alam Khan Sumbal Director

Dr. Bashir Ahmad Khan Director

Mr. Shahid Mahmud Director

Mr. Muhammad Riyazul Haque Director

Mr. Ali Noormahomed Rattansey Director

Mr. Tariq lqbal Khan Director (NIT Nominee)

Mr. Muhammad Rafiquddin Mehkari President & Chief Executive

Mr. Muhammad Ahmed Ghazali Marghoob Company Secretary

Audit Committee

Dr. Bashir Ahmad Khan Chairman

Mr. Ali Noormahomed Rattansey Member

Mr. Zafar Alam Khan Sumbal Member

Auditors
A.F.Ferguson & Co. Chartered Accountants

33
Legal Advisors

Rizvi, Isa, Afridi & Angell

Number of employees

Permanent 4,834
Temporary / on contractual basis 1,273
Commission based 789
Bank's own staff strength at the end of the year 5,896
Outsourced 912
Total staff strength at the end of the year 7,808

Main offices

AWT PLAZA BRANCH, Rawalpindi Branch Code : 0001

34
Address : ASKARI BANK LIMITED AWT PLAZA BRANCH RAWALPINDI
City: Rawalpindi Region : North
Manager: 9063200 / 9273178 Manager (Ops) : 9063198 / 9273177
PABX #: 9063158 Fax No: 9273175 / 9273180 /
9273181
E-Mail: b0001@askaribank.com.pk Tlx:

Main Br, Karachi, Karachi Branch Code :0002

Address : Saima Trade Tower I.I.Chundrigar Road Br,karachi
City: Karachi Region : South
Manager: 0333-2335404 Manager (Ops) : 0321-3077975
PABX #: 021-2630731 Fax No: 021-2631176
E-Mail: b0002@askaribank.com.pk Tlx:

M.A. Jinnah Road,Quetta Main, Quetta Branch Code : 0003

Address : M.A.Jinnah Road
City: Quetta Region : South
Manager: 081-2833333 Manager (Ops) : 081-3836051
PABX #: 081-2843751-4 Fax No: 081-2845602
E-Mail: b0003@askaribank.com.pk Tlx:

PESHAWAR CANTT, Peshawar Branch Code : 0004

Address : FAKHR-E-ALAM ROAD PESHAWAR CANTT
City: Peshawar Region : North
Manager: 091-5271653 Manager (Ops) : 091-5279683
PABX #: 091-9212433-6 Fax No: 091-5276391
E-Mail: b0004@askaribank.com.pk Tlx:

Main / SAT Branch, Lahore Branch Code : 0006

Address : 7-A, Shahrah-e-Aiwan-e-Tijarat
City: Lahore Region : Central
Manager: 042-9203081 Manager (Ops) : 042-9203633
PABX #: 042-9203673-7 Fax No: 042-9203351
E-Mail: b0006@askaribank.com.pk Tlx:

Jinnah Avenue Branch, Islamabad Branch Code : 0008

35
Address : 24-D, Rasheed Plaza, Jinnah Avenue, Blue Area, P.O. Box 1499
City: Islamabad Region : North
Manager: (051) 2871144 Manager (Ops) : (051) 2271801
PABX #: (051) 2271794-6 Fax No: (051) 2271797
E-Mail: b0008@askaribank.com.pk Tlx: 54683 ASKRI PK

University Road Branch, Faisalabad Branch Code : 0009

Address : University Road Faisalabad
City: Faisalabad Region : Central
Manager: 041-9201001,0333-6509781 Manager (Ops) : 041-9201003,0333-
6664285
PABX #: 9201008-11 Fax No: 041-9201006
E-Mail: b0009@askaribank.com.pk Tlx:

Gujranwala Branch, Gujranwala Branch Code : 0012

Address : Opposite General Bus Stand G.T Road Gujranwala
City: Gujranwala Region : Central
Manager: 055-9200857 Manager (Ops) : 055-9200859
PABX #: 055-9200855-56 Fax No: 055-9200858
E-Mail: b0012@askaribank.com.pk Tlx:

Abdali Road Multan, Multan Branch Code : 0013

Address : 64-A, Abdali Road
City: Multan Region : Central
Manager: 061-9201399 Manager (Ops) : 061-9201388
PABX #: 061-9201391-4 Fax No: 061-9201395
E-Mail: b0013@askaribank.com.pk Tlx:

Bahawalpur, Bahawalpur Branch Code : 0025

Address : 1-Noor Mahal Road Bahawalpur
City: Bahawalpur Region : Central
Manager: (062)-9255325 Manager (Ops) : (062)-9255323
PABX #: (062)-9255320-22 Fax No: (062)-9255324
E-Mail: b0025@askaribank.com.pk Tlx:
Introduction of all Departments

Askari bank khanewal has following departments

36
  Account Opening department
 Cash Department
 Account Department
 Remittance Department
 Clearing Department
 Foreign Trade Department
 Credit Department
 Credit Card Department

ACCOUNT OPENING DEPARTMENT

Borrowing funds from different sources has become a crucial feature of today's
business enterprises. 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. The borrowed
capital of a bank is much greater their own capital. Banks borrowing is mostly in the
form of deposits. These deposits are lent out to different parties. Such deposit
creation is done through opening an account in the Bank.
In Askari bank khanewal Miss Farhana Khan is operating the account opening
department along with performing some auxiliary functions of Check Book Issuing.

ATM CARD
Issuance of ATM card is carried out by same account opening department. ATM
Cards are only issued to Account Holder

ISSUING PROCEDURE
 The person, first opens the account within the blank.
 Then he fills the ATM application form in which name of account holder,
Fathers name account number and national identity card number are
mentioned.

37
  A copy of C.N.I.C is also attached with the application form.
 After completing this process, the application package is sent to head office
 Askari Head office branch takes a period of 15 working days for preparing and
processing of ATM cards. First, list of card holder is issued and then after 15
days cards are send to Askari bank issuing branch. The card and list are not
sent simultaneously in order to avoid any mishandling.
 Askari bank takes Rs. 300/- per year as maintenance charges for a card

CASH DEPARTMENT

Cash department of Askari bank works under the operation department. This
department is given the complete responsibility of cash, as result of transaction in
touch local and foreign currencies. It is also responsible for the book keeping of these
transactions and the safe custody of cash.
This department performs the main function.
Cash receipts
Cash payments

Cash Receipts
In cash department depositors use deposit slips for depositing the amount
in their accounts. The officer checks if the deposit slip is properly filled up containing
title of account, Account number, date and amount in words and figures. Detail on
both counter file and cash receipt voucher should be the same. The cash details are
written on the back of the deposit slip and are also entered in cash receiving register.
Cash received stamp is affixed on the face of the deposit slip along with the signature
of the cash receiving officer. Cash receiving officer, after twice counted and matched
with the deposit slips will handover cash to the customer.

Cash Payments
First the cheque is presented by the customer or holder to cash payment
officer. He confirms particulars of cheque are properly filled in. Two signature of the

38
drawer is taken on the back of the cheque. Cheque is handed over to the officer cash
department for inspection where officer checks the date, amount in words and
amount in figures, payee’s name, crossing if any, account number, cheque serial
number, any material alterations / endorsements and signature of the customer.
Account is debited and then the officer cancels cheque. It is posted in the system and
posting stamp and number is affixed on it. Cheque is handed over to the cash
payment officer for payment, then cash is paid to the cash detail is written on the
back of the cheque. Cash paid stamp is affixed on the face of the cheque. Entry is
passed in the cash payment register and system.

ACCOUNTS DEPARTMENT
Accounts department is a department which deals and checks all the activity of all
the department .It also deals in expression of finance of the bank. Salary payment is
also one function of the bank. These are responsibilities of accounts department.
OTHER ACTIVITIES

I. Preparation of daily bank positions statement

II. Payment of salaries
III. Preparation of the statements
IV. Depreciation calculation
Checking Bank’s Daily Activity

REMITTANCES DEPARTMENT

Remittance department provides services to the customer of the bank. The main
function of this department is transfer of funds. The instruments that are handled in
the B & R department are as follows:

I. Demand Draft.
II. Traveler’s Cheque
III. Telegraphic transfer.

39
IV. Mail transfer.
V. Pay order.
VI. OBC.
VII. IBC.

CLEARING DEPARTMENT

“The process by which cheque exchanged between the collecting and paying bank
and the ensuing financial settlement is called “clearing”. This facility is provided by
the state bank of Pakistan for offsetting of cross obligations between the different
banks. Clearing is of two types.

1) Inward clearing
2) Outward clearing
Inward Clearing

When cheque drafts, etc, of our branch presented to us for clearing by the SBP.
Cheque to be honored by bank.

Outward Clearing

The cheque of other banks, which the account holder deposit in their accounts is,
sends for collection.

CLEARING procedure

Here the local cheques are received that are drawn on Askari bank. All the cheques
are received on one counter along with the paying slips duly filled in properly
containing particulars of cheque and account holder. Counter folio of paying slip is
handed over to the customer by putting stamp for cheque received for collection for
Askari bank on it duly signed by officer. These cheques are scrutinized and cheques
for local clearing are separated from OBC. These are then entered in clearing
register and cheques for collecting are entered in OBC register and handed over the
bills department of collection. Clearing officer checks and verifies title of all the

40
cheques deposited by the customer to confirm the good title of the cheques.
Cheques are scrutinized properly and paying slips are separated from cheques.
Special crossing, endorsement and clearing stamps are affixed on the cheques.
Cheques of each bank are sorted and arranged branch wise. All the cheques are
then entered into the clearing system of bank. Print out of the clearing is taken and
details are attached.

With the cheques of each bank. Details of these banks are then entered into
the clearing schedule containing number of cheques presented and their total
amount against the name of each bank. Then total number of cheques presented to
all banks and their total amount is written on the foot of that schedule, which is tallied
with the clearing register.

Next morning, these cheques are delivered to the respective banks in clearing
house of SBP between 9:00 to 9:30 AM. In the same manner, other banks present
their clearing drawn on Askari bank. Total number of cheques and their amount
delivered to other banks are received from them are written on the clearing house
schedule and handed over to the officer clearing house SBP. Cheques / DD received
in clearing are given to the officer cash department of the branch for their repayment.
After I proper scrutiny of cheques, verification of signatures and confirmation of
balance in the account, officer cash department pays these cheque by canceling and
posting them in the system.
If any cheque is not passed due to insufficient balance or any other reason,
officer cash department returns the same cheque by attaching a cheque return
memo containing reason for return. This cheque is entered into the cheque returned
register and bank charges are deducted according to the schedule of charges.
Second clearing is called at 2:30 PM to check the fate of the Cheques presented to
other banks in the morning. If any cheque is to return, that is delivered to the same
bank in second clearing. In the same manner, if any cheque presented by Askari
bank in first clearing is returned, they receive it and once again give schedule of
clearing figure to the officer-clearing house SBP containing number of cheques and
their amount delivered and received unpaid.

41
FOREIGN TRADE DEPTARTMENT
Nature has distributed its wealth un-evenly. Some countries are rich in human
resources other have mineral wealth in abundance and yet other have arable land
and favorable climate conditions for agricultural production. This un-even distribution
of resources basically determines the productive efficiencies of different countries.
This is the point where different countries come together to exchange their
competencies and efficiencies. The countries, which lack in any of the resource, start
importing those resources from the country that is having excess of it. In this way the
trade starts between different countries.

CREDIT DEPARTMENT

Credit department is also one of the most important departments of the bank. It is
called the mind of the bank. This department controls the affairs of bank related with
the finances or loans.
The credit department of askari Bank also performs the functions relating to the credit
administration and credit accounts. It performs following functions. Our Credit and
Department aims at providing complete financial solutions for its customers. Skilled
professionals deliver contemporary corporate banking services in a personal manner.
Committed to maintaining stable and long term relationships with our customers,
Askari Commercial Bank combines personalized services with technological
capabilities to deliver sophisticated banking solutions.

Followings are the products and Services offered include:

I. Trade finance
II. Short Term Working Capital Finance
III. Local Currency Syndication Finance (Foreign Currency Syndication can also
be arranged)
IV. Medium Term /Long Term Finance
V. Term Finance Certificates
VI. Offshore Loans

42
 VII. Advisory Role (Balance Sheet Restructuring).

OBJECTIVES OF LENDING.

In the modern economics, more than 90% business concern raises their funds from
various financial institutions to meet their multifold transaction. Actually it is very
difficult for the modern businessman to run his business on a huge scale solely. He
has to float his shares to the public or knock the doors of financial institutions, for
example the banks.

CREDIT CARD DEPARTMENT

Miss Muneeb deals this department. He told me that the bank is authorized to issue
the credit card of two companies, which are under bank of America.
I. Master Card
II. Visa Card

There are following types of master card.

I. Silver card
II. Gold card

43
Plan of internship program

I got a golden chance of internship in Askari bank khanewal branch. It was the first
step of my professional life. Day before I have not got the experience of professional
taste. Askari bank khanewal branch is situated at DAHA plaza on Markazi Jamia
Masjid Chowk. The site is situated in very busy area of the city. That is why this
branch has a competitive advantage over the other branches.

Starting and ending dates

I have done my internship of nearly eight weeks.

Followings are the starting and ending dates of my internship tenure.

Starting Date 30-03-2009

Ending Date 27-05-2009

The training schedule was divided weekly. Followings are the departments in
which I got training during the internship.

Followings are the departments where I was given duties.

 Account Opening department

 Cash Department
 Account Department
 Remittance Department
 Clearing Department
 Credit Department
 Credit Card Department

44
  Account Opening Department

In my first week in Askari Commercial Bank commercial bank, they assigned me

work in Account Opening Department. Miss Farhana very nicely and I learned lot of
things in this department. He told me different accounts names and their codes. How
to open the account .
I. New Computerized national identity card is must for opening of new account.
II. For current account 10,000 and for saving 5,000 are required.
III. What are the necessary requirements of different accounts to be opened.
IV. Other activities are
V. How to fill the deposit Slip if anyone wants to transfer cash in the account or
online transfer
VI. How to fill the different accounts Form
VII. How to fill the voucher for issuing of the Cheque Book for the first time
VIII. How to fill the requisition slip for the second time issuance
IX. How to issue the Cheque Book

X. How to enter it in the register

XI. What are the procedures for the ATM card

 Clearing Department

Second was the clearing department.
Responsibilities
There are two types of clearing.

1. Inward clearing
2. Outward clearing

I entered the cheques lodged for inward clearing in clearing register as their cheque
number account holder name cheque amount and bank name amount to be paid.
Secondly I prepared (O/W) clearing for next day. Same as entered cheque number

45
account holder name amount and Bank name. In this week I also entered cheque
return in cheque return register and put cheque return slip on cheque.
CLEARING PROCESS

State Bank of Pakistan is a main clearing house. In those cities SBP is not
available; SBP has assigned this duty to National Bank Of Pakistan. In clearing
process the local cheques are received that are drawn on askari bank. All the
cheques are received on one counter along with the paying slips duly filled in
properly containing particulars of cheque and account holder. Counter folio of
paying slip is handed over to the customer by putting stamp for cheque
received for collection for askari bank on it duly signed by officer. These
cheques are scrutinized and cheques for local clearing are separated from
OBCs. These are then entered in clearing register and cheques for collecting
are entered in OBC register and handed over the bills department of collection.
Clearing officer checks and verifies title of all the cheques deposited by the
customer to confirm the good title of the cheques. Cheques are scrutinized
properly and paying slips are separated from cheques. Special crossing,
endorsement and clearing stamps are affixed on the cheques. Cheques of each
bank are sorted and arranged branch wise. All the cheques are then entered
into the clearing system of bank. Print out of the clearing is taken and details
are attached.

With the cheques of each bank, details of these banks are then entered into the
clearing schedule containing number of cheques presented and their total
amount against the name of each bank. Then total number of cheques
presented to all banks and their total amount is written on the foot of that
schedule, which is tallied with the clearing register.

Next morning, these cheques are delivered to the respective banks in clearing house
of SBP between 10.00 AM. In the same manner, other banks present their clearing
drawn on Askari bank. Total number of cheques and their amount delivered to other
banks are received from them are written on the clearing house schedule and
handed over to the officer clearing house SBP. Cheques / DD received in clearing
are given to the officer cash department of the branch for their repayment. After I
proper scrutiny of cheques, verification of signatures and confirmation of balance in

46
the account, officer cash department pays these cheque by canceling and posting
them in the system.
If any cheque is not passed due to insufficient balance or any other reason, officer
cash department returns the same cheque by attaching a cheque return memo
containing reason for return. This cheque is entered into the cheque returned register
and bank charges are deducted according to the schedule of charges.
Second clearing is called at 2:00 PM to check the fate of the cheques presented to
other banks in the morning. If any cheque is to return, that is delivered to the same
bank in second clearing. In the same manner, if any cheque presented by askari
Bank in first clearing is returned, they receive it and once again give schedule of
clearing figure to the officer-clearing house SBP containing number of cheques and
their amount delivered and received unpaid.

In third week I perform following tasks relating to the banking system

IBC (Inward bills for collection)

OBS (outward Bills for Collection)

REMITTANCES DEPARTMENT
Remittance department provides services to the customer of the bank. The main
function of this department is transfer of funds.

INSTRUMENTS OF BILLS & REMITTANCE DEPARTMENT

The instruments that are handled in the B & R department are as follows:
 Demand Draft.
 Traveller’s Cheque
 Telegraphic transfer.
 Mail transfer.
 Pay order.

47
Finance DEPARTMENT

Car finance
Benefits and Features
• Quickest processing
• No hidden charges
• Minimum down payment
• Complete repayment at any point of time
• Balance transfer facility {BTF} for existing as well as new clients from other
Banks
• Tenure period ranging from 1 to 5 years.
• Financing of all brand new locally assembled vehicles and used cars.
• Financing limit ranging b/w Rs. 200,000/- to Rs. 2000,000/- for brand new cars
Corporate and individual car leasing
Askari bank recently introduced car leasing facility for individuals and corporate
sector has set new dimensions for the product. Now you are provided with the option
of either to get the vehicle leased or financed.
insurance
Renowned and reliable Insurance company EFU are offering the competitive rates of
Insurance. Pay year insurance premium in advance { at the time of down payment }
and remaining in the subsequent equal monthly installment.
how much extra money being paid? {Mark-up}
Askari bank mark-up rates are as follows
Pak Suzuki Cars 15 %
All other local assembled Cars 15.5 %
Repayment
Easily affordable installments on monthly basis in the form of postdated cheques will
set you free of depositing your rental cheques every month.
Security
Hypothecation of vehicle in the name of the askari bank ltd.

48
YOU CAN ACT AS A CO BORROWER
Acting as a co borrower, will enables your family members {spouse, children- 18 year
and above} to avail the financing facility and can get the car registered in their names
as well.
Documents required
• Two passport size photographs.
• Copy of National ID card.
• Bank statement for the last six months.
• Salary certificate {for salaried individual}.
• Business proof {for a business person}.
• N.T.N Certificate.
• Co borrower’s NIC copy {if the car is to be in the name of the co-borrower}.
Eligibility
Yes you get a car loan form askari bank to purchase a brand new car if you are:
Pakistani National Identity Card holder.
Over 20 years of age (Maximum 60 years in case of salaried and 62 in case of a

The finance system of the askari bank is entirely computerized. Transactions of

huge amounts can be compiled in no time. Such a latest and modern technology
helps managers and other employees to making decision.

For a bank like askari its biggest source of generation of funds is from
deposits in form of current and PLS accounts by the clients of the banks.

Funds deposited by the clients of the banks are allocated to different forms of
financing and investing activities. For example funds are allocated in the form of Auto
Finance leasing and crediting funds to agriculturists.

FINANCIAL ANALYSIS

49
The importance of financial statements lies in their utility to satisfy the
questions in the mind of different stakeholders. Different classes of people are
interested in the financial statements analysis with a view to assessing the economic
and financial position of any business or industrial concern in terms or profitability,
liquidity or solvency etc. for example, the commercial banks are mainly interested in
short term liquidity and profitability while prospective investors may be interested in
long terms profitability and solvency. Financial statements, among other things,
include balance sheet and income statement. Balance sheet presents assets and
liabilities of the business at a given date. Beside, showing the ability or the business
to servic3e the loans on the strength of its financial structure and on the history of its
profitability, it helps in judging the impact of financial and fiscal support and in
evolving secured basis for extending such support. Likewise, apart from showing the
progress and profitability or a business, income statements disclose, how the
business has been conducted and determines factors behind a rise or decline in the
net worth. The purpose of analysis of financial statements is to examine past and
current financial data so that a company’s performance and financial position can be
evaluated and future risk and potentials can be estimated. The analysis can yield
valuable information about trends and relationship, the quality of a company’s
earning, and it financial strengths and weaknesses.
 Is the business expanding or contracting?
 Is it more profitable than last year or less profitable?
 How efficiently is the capital employed in the business being utilized?
 Does the business have any financial problem?
 And much more

To evaluate financial statements, an analyst must:

 Be acquainted with business practices;

 Understand the business and accounting terminology; be aware of accounting
conventions and limitations of accounting;
 Be acquainted with the tools of analysis of FS

50
 i. Ratio analysis

The ratio analysis and industry analysis tools below are very useful for individuals
to instantly assess a company or industry by making two basic types of
comparisons. First, the analyst can compare a present ratio with past (or
expected) ratios for the organization to determine if there has been an
improvement or deterioration or no change over time. Second, the ratios of one
organization may be compared with similar organizations or with industry
averages at the same point in time. This is a type of "benchmarking" so that one
may determine whether the organization is "average" in performance or doing
better or worse than others. For the professional, conducting such in-depth
analyses is critical, allowing an analyst to make an informed business or
investment decision.

Current Ratio = Current Assets / Current Liabilities

2008 2007 2006

19,984,449 / 17,774,976 16,853,109 / 20,180,576 22,212,232 / 16,803,164

1.12 0.83 1.32

Working Capital = Current Assets – Current Liabilities.

2008 2007 2006
19,984,449 - 17,774,976 16,853,109 22,212,232
- -
20,180,576 16,803,164

2,209,473 -3,327,467 5,409,068

Times Interest Earned = Earning Before Tax / Interest Exp

51
2008 2007 2006
461,382 / 5,915,615 2,299,785 / 4,801,587 3,346,855 / 3,283,494

0.077993919 0.478963518 0.108186465

Debt Ratio = total Debt / Total Asset

2008 2007 2006
18,186,248 20,550,825 17,962,587
/ / /
206,191,138 182,171,885 166,033,588

0.08820092 0.11281008 3.320828468

Debt Equity Ratio = Total Debt / Total Equity

2008 2007 2006
18,186,248 / 12,034,895 20,550,825 /12,099,645 17,962,587 / 7,595,145

1.51 1.69 2.36

Return on Assets= Operating Income / Average Total Assets

2008 2007 2006
2,531,035/ 206,191,138 8,370,382 / 182,171,885 8,356,026 / 166,033,588

0.012275188 0.045947716 0.050327323

Return on Investment = Net Income / Total Assets

52
2008 2007 2006
2,531,035 4,480,991 / 182,171,885 3,867,571 / 166,033,588
/206,191,138

0.012275188 0.024597599 0.023293907

Working

2008 2007
Current Ratio 16,029,635 1.124302446 13,356,055 0.835115
3,954,814 3,497,054
19,984,449 16,853,109

2,584,828 2,627,051
15,190,148 17,553,525
17,774,976 20,180,576
Working Capital 2,209,473 -3,327,4
Time Interest 461,382 0.077993919 2,299,785 0.4789635
Earned
5,915,615 4,801,587
Debt Ratio 15,190,148 0.08820092 17,553,525 0.112810
2,996,100 2,997,300
18,186,248 20,550,825
206,191,138 182,171,885
Debt Equity Ratio 18,186,248 1.511126437 20,550,825 1.698465
12,034,895 12,099,645
Return on Assets 2,531,035 0.012275188 8,370,382 0.0459477
206,191,138 182,171,885
Return on 2,531,035 0.012275188 4,480,991 0.0245975
Investment
206,191,138 182,171,885

Account Rec 365 9.22926E-05 365 2.16577E-

16,029,635 16,853,109
19,984,449 3,954,814
Accounts Pay 365 1.41209E-04 365 1.38939E-
2,584,828 2,627,051
Earning per Share 2,531,035 1.012414 4,480,991 0.9410681
2,500,000 4,761,601

Price/Earning Ratio 98.06 96.85760963 95 100.54255

1.01 0.94
1.54

ii. Horizontal & vertical analysis of the organization for the last three
years

53
 a. Organization analysis in comparison with its industry (or with
its competitors)
b. Future prospects of the organization.

SWOT analysis of organization in the business sector

SWOT analysis means to analyze the threats and opportunities that are part of
external environment and strengths and weaknesses of the organization, which are
part of the internal the environment. Based on this environmental analysis company
formulates the strategies to find out the target customer’s designs objectives and
mission statements to fulfill the needs of the target customers and strategies to
respond to the competitive environment.

Strengths

Customer relationship management

Askari bank has a customer oriented CRM strategy. Continues efforts are being
made by the bank to improve customer services and making need based strategies.
Askari bank is more committed to facilitate its customers with international standards
of banking sectors to help customers more strength. The strong culture of customers
services and more satisfaction indicates the its distinctive competencies.

Vast Network
It is another strength of askari bank. Askari bank has extensive and integrated global
network of its branches to facilitate its kind customers. Its upgraded global
infrastructure provides unique services system with higher and efficient to the
customers.

Internation Branches

54
The international branches of askri bank n the world make it unique and outstanding
in the banking sectors e.g, UK Europe, Middle East etc.

1. ASKARI BANK is one of the leading institutions of Pakistan with high share of
customer.
2. ASKARI BANK one of the largest financial institutions of Pakistan with high share
of customer.
3. ASKARI BANK cash provision as percentage of non performing loans equal to
60%.
4. Highest share price Rs. 418 in month of January , 2009 in Pakistan banking
history.
5. There is a facility of transfer of funds across Pakistan through ATM and payment
of utility bills through ATM makes askari bank prominent.
Weaknesses
Marketing Promotions
Askari bank is not performing it advertising and sales promotions in the marketplace.
It is not also promoting ATM services.
Cash Withdrawal Limit
Askari bank has the limitation on the cash withdrawal of money from ATM.
Furniture and Fixture
The general out look and interior layout of branches are not as required
according to modern banking.
 ASKARI BANK bearing up large burden in running those branches,
which are not producing any income but producing on adding expenditure.
 ASKARI BANK is relying on its traditional sources of income it has not
taken benefit from innovation in banking like introducing retail banking or
consumer banking and using any type of scheme to generate more
deposits and producing more advances.
 ASKARI BANK has only 160 on branches and only 75 branches
working on Symbol (Real online system). While from remaining branches
data gathering is time consuming, and not fool proof. Quantum of
settlement within different branches is pending because of this updating
daily record is becoming very difficult.

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In ASKARI BANK, most of the time merit not has importance in hiring of employees.
Such practices are black spot on the face of bank and resulted big losses and
fraudulent acts by ASKARI BANK own employees
Opportunities
Reorganizing efforts going on in the ASKARI BANK has
open many opportunities for ASKARI BANK to grow. ASKARI BANK current
management has boarder its vision. They have taken steps to improve customer
services, streamline internal procedure and creating a delectating climate for
technology initiative.

Technological Advancement
An introduction of technological advancement in its network branches create an edge
on other banks. This advantage draws the attention of potential customers. Askari
bank has obtained the software based in Linux of amount Rs.2 Billion, Which will be
launched very soon across its branches.
Facility for Illiterate people
Illiterate people which the askari banks customer don’t feel loneliness in the banks.
Because its employees provides guidance in urdu or any other local language. It
creates an edge over the customers.

Threats
• Economic Environment
Economic environment is a major threat to askari bank. For example in 2008
recession shakes every sector of economy , banking sector was one of them.
GDP growth and poverty alleviation in a different economic environment with
continued international sanctions.

• Political and Legal environment

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 Law and order situation has a direct impact on how frequently or how many
people use banking lockers. Political instability in the country produces threats to
bank and investor seeking profitable transactions in the banks.

 Major threats ASKARI BANK facing is from its competitor especially

from nationalized commercial bank. In which NBP is on the top of the list,
The Bank gets the all big accounts of Government.
 Retail banking and consumer banking resulting strong giving
completion to the ASKARI Commercial Bank. So it is very important for
the bank.
 Recently banks and other financial institutions have introduced
innovative schemes to attract deposits
 Now banks are using technology which covers the distance no matter
how far away any one, through a satellite based, on-line real-time banking
system and by offering telephone banking, electronic funds transfer, E-
Banking and other modern facilities.

CONCLUSION

Organizations exist when two or more people work towards achieving common goals.
An organization can never be better than the people it hires. Hence we have to get
the best to be the best because the performance of the employees reflects the
company’s image and standing in the market. Out of the three M’s i.e. Man, Money &

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Machine, probably the human dimension is of the utmost importance. Hiring
employees is not the sole objective rather the primary goal
is to devise a tool that can help the organization attract, maintain, retain and motivate
them enough to give their best to the organization. Training and development is
therefore the first step towards success. Better the quality of the employees better
the performance of the company. An organization’s ability to meet the training and
development challenges provides an opportunity to make significant contribution to
the company. With better quality people executing the company’s operations the HR
department can create a competitive advantage for the company. Askari Bank views
specialization and service excellence as the cornerstone of its strategy. The people
at bank realize that innovation; creativity, reliability, customized, services and their
execution are they key ingredients for their future growth.

RECOMMENDATIONS
This is the fact that in this universe nothing is perfect. In every field of life there are
some pluses and minuses. But the best institutions are those, which learn from the
changing environment and competition. So it is necessary for them to keep them
update with the changing environment.
After analyzing the Training and Development practice following
recommendations is made;
 For time being to share the burden of Training, more instructors should be
hired for the Training Wing.
 Like Askari bank, wherever the Training Department is unable to provide
focused training for certain groups of staff, reputable external trainers are
invited to fill the gap, Askari bank should also outsource trainers in such
cases.
 Marketing department is very active but the feedback or the follow up of the
customers should be improved.
 If possible, bank should arrange externships for some employees in other
reputable banks, to bring up new ideas and more accuracy in Askari bank.
 As every thing is computerized in Askari bank, the persons should be properly
trained in the computer systems.

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  The ATM service should be provided 24 hours. Because customers feel upset
when most of the times the machine is out of order.
 Audit should be held internally, rather there should be an audit department in
the branches to make audit on daily basis. This can become so, helpful as a
different banks are having this department of their own.
 In 3600Feedback method, there are chances of errors due biasness and halo-
factor. To avoid this error, ‘Rater Error Training’ and ‘Rater Accuracy Training’
should be given to the employees.
 If possible, bank should arrange externships for some employees in other
reputable banks, to bring up new ideas and more accuracy in Askari bank.

 Reference and Sourcing

I used following references and sources in the compilation of the report .
• Askari Bank Ltd. Khanewal
• Official Web site of Askari bank
• www.wikipedia.com
• www.kse.com.pk
• www.pakbiz.com
• www.dawn.com.pk
• Weekly Business week journal
• Official Financial Statements of askari bank 2006-2007-2008
• Corporate Reports of Askari Bank
• Accounting for Decision Making by Meigs & Meigs
• VU Hand Outs (FIN621, FIN622, FIN630, MGT201)

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