Internship Report On Askari Bank Limited

INTERNSHIP REPORT ON
Askari Bank Limited

Internship Report submitted to the Faculty of Management & Administrative Sciences in
Partial Fulfillment of the Requirements for the Degree of Master of Business Administration.
Program & Session - MBA 2012 to 2015
UNIVERSITY OF GUJRAT
Date of Submission
15/09/2013
Name of Program Coordinator ___________________

Signature of Program Coordinator_________________
Business Administration
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2. Acknowledgment:
IN THE NAME OF ALLAH THE MOST BENEFICIENT AND MERCIFUL.
First of all I would like to thank Allah who gave me strength, patience and capability to complete this report.
I am thankful to my family for their support and motivation.
I would like to express my gratitude to the branch manager and staff members of Askari Bank Limited who
helped me and gave possibility to complete my report. I am thankful to those who provide me guidance
about the working of bank and gave satisfactory answers of my questions. I also acknowledge the help of
teachers who taught me and guide me about writing projects.
I am highly indebted to Madam Imrana Yasmeen operation manager of branch for her guidance, support and
information about bank without her help would not be able to complete my report on time.
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3. Table of contents:
Title Page..1
Acknowledgment.2
Executive Summary..4
Main Body of Report....4
Introduction..4
Overview of the organization...5
History..6
Nature of the organization....6
Business volume, Rewards and Honors...6
Product and Services8
PESTL Analysis9
Contribution of organization towards economic development10
Organizational Structure..12
Organizational hierarchy chart.13
Number of employees...14
Main offices..14
Introduction of all departments15
Comments on organizational structure.18
Internees Work.18
Brief introduction on branch18
Detail of supervisors.....18
Weekly time tables...19
Detail description of departments I worked in....25
Description of tasks assigned ..39
Summary of learning41
Critical Analysis...43
Conclusion43
SWOT Analysis44
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Recommendations46
References46
4. Executive Summary:
This report is about my internship that I have undergone at Askari Bank Limited, Tariq Road Sialkot Cantt
from 1 August 2013 to 11 September 2013. I observed practical aspects and get good practical experience. I
worked in six different departments during my internship period. On first day of my internship I met
operation manager Imrana Yasmeen who gave me a brief introduction of working of bank and its
departments. Every internee is rotated among bank departments after one week and so was I.
In this report I gave the introduction of bank and its department its products and services. In internees work
I portrayed my internship plan. I got training in remittance department like any other bank askari bank is
using instruments like telegraphic transfer, mail transfer, demand draft and pay order for transferring money.
I learnt the process of issuance and payment of DD and PO, dealing with customer and maintaining their
deposits, working and responsibilities of clearing department. Accounts department maintains the budget of
branch and makes daily condition statement of branch by summarizing daily activities and forward it to
head office. Also makes correction of issues pointed out by audit department maintains the record of
vouchers and check them I did so. Credit department is responsible for providing funded and non funded
facilities and obtaining information of client. Foreign trade department deals with imports and exports
related facilities issuing advance, E-Form, swift message and LC as Sialkot is an industrial city most of the
exports and imports of Sialkot are done through askari bank. Foreign Trade department maintains the
accounts in foreign currency and reports in dual currency.
Low deposit rates are major reasons of not meeting targets askari bank is now providing high profit rates to
attract customers and to ultimately increase their profits. Centralization has also become a major reason of
slow working and leads to pending work in departments.
Every internee has to face some problems while working that internees are not allowed to work on computer
systems due to secrecy reasons and most of the working is done through computer systems now a days
which confines the exposure of internees. After concluding report and completing SWOT analysis I gave
recommendations.
5. Main Body of Report
5.1 Introduction:
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This internship report is aimed at studying and analyzing Askari Bank Limited in general and in particular a
branch office at Sialkot. Askari bank works round the clock to provide services to its customers. Since 1991
Askari bank has played a pivotal role in the development of Pakistan. Askari bank has adopted a customer
oriented approach like other multinational banks to provide quality services and stands as a role model for
other banks. Being a student of MBA finance its mandatory to know how a bank works. The main purpose
of the internship is to prepare and submit a report as a partial fulfillment of MBA degree from University of
Gujrat. The purpose of this report is to fulfill my academic requirements. Some other purposes are:
To develop an understanding of various functions of the bank.
To highlight the facilities and products offered by Askari bank to its customers.
To develop the interpersonal communication skill.
To apply knowledge gained in practical field.
To give some recommendations for the problems pertaining to Askari Bank by identifying areas in the bank
where there is some room for improvement.
It can also provide help to Askari Bank management in identifying their strengths, weaknesses,
opportunities and threats.
The purpose of the study also is to do practical work in the field to apply my knowledge to real life situation
which enables a student to be a future banking practitioner. Another purpose is to understand the financial
operations being performed by the bank and to know how banks working is divided into various
departments. How working take place in the bank to handle financial matters. This report has the aim to
share my knowledge and experience that I have gathered during my academic and practical training at
Askari Bank.
Banking has a broad scope. In only six weeks of internship it is hard to understand each and every aspect of
bank. Due to the barrier of limited time the scope of work usually confined.
5.2 Overview of the Bank:
Banking is as ancient as human society and its importance as a financial intermediately cannot be denied.
Askari Bank Limited was incorporated on October 9, 1991 and is playing a leading role in the banking
sector. Its head office is located at AWT Rawalpindi. Bank is providing broad product lines and customer
need based services. Bank is operating with 261 branches in conventional banking as well as 34 Islamic
banking moods of financing. Askari bank limited has maintained both ACBL long term and short term
ratings at AA and A1+ respectively as given by Pakistan Credit rating Agency (PACRA). Rating A1+ is the
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highest in short term rating. This rating specifies low credit risk, very strong capacity for timely payment of
financial commitment and a very high credit quality.
Corporate Social Responsibility is an integral part of the way Bank do business. In order to fulfill our CSR
objectives, ACBL attempt to promote public interest by encouraging community growth and development
through sponsoring social service events, supporting education, sports, and environment and also contribute
in socio-cultural activities.
Vision Statement of ABL
To be the bank of first choice in the region.
Mission Statement of ABL
To be the leading private sector bank in Pakistan with an international presence, delivering quality service
through innovative technology and effective human resource management in a modern and progressive
organizational culture of meritocracy, maintaining high ethical and professional standards, while providing
enhanced value to all our stake-holders, and contributing to society.
5.2.1 History:
Askari Bank Limited was incorporated in Pakistan on October 9, 1991, as a public limited company. It
commenced operation on April 1, 1992, and is principally engaged in the business of banking, as defined in
the Banking Companies Ordinance, 1962. The Bank is listed on Karachi, Lahore and Islamabad Stock
Exchanges. It is the only bank in the world run by an army. The head office of Askari bank limited is located
at AWT Rawalpindi.
Since inception, the bank has concentrated on growth through improving service quality, investment in
technology and people, utilizing its extensive branch network which includes Islamic and Agricultural
banking.
5.2.2 Business volume Rewards and Honors:
Business volume:
Business volume depicts the banks performance in terms of revenue, deposits advances and investments.
Performance of the bank can be evaluated by its business volume. According to the financial report of the
year 2012 bank had the equity of 19.7 billion and total assets of 353 billion which have realized an increase
from 2008 to 2012 with 907984 banking customers which are serviced by 5597 employees. Total liabilities
of the bank have also increased continuously from 2008 to 2012 amount of liabilities is Rs 333,3368
million.
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Operating profit of the bank increased by 4.1 Percent than last year. The shareholder fund or equity is
19,688 million rupees which have recognized an increase of 10.8 percent over the last year and it is
increasing from 2008 to 2012.
Current and Saving Deposits:
Customer deposits as on 31, December 2012 realized a growth of about 5.3 over the last year. Customer
deposits reached Rs 307 billion from Rs 292 billion on December 31, 2011. Saving deposits increased by
15.8 percent which has realized an increase than last year. The major increase was in current and saving
accounts which increased by 14.4 percent while term deposits registered a decrease of 15.5 percent. Current
deposits improved by 11.5 percent over the last year. The average deposit size of the bank maintained its
level.
Profit Advances and Mark up Revenue:
Profit after taxation stood at Rs 1255 million which has realized a decline from previous year as the profit
for 2011 was Rs 1628 million which is decreased by 22.9 percent this is due to non performing loans. Gross
advances declined by 2.7 percent to Rs 163 billion from Rs 167 million which is the lowest growth rate
since 2008. Net mark up revenue is declined by 6.3 percent in 2012 which is due to rise in losses against
non performing assets. Revenue is not steadily increasing or declining from 2008 to 2012 in fact revenue is
facing a random situation.
Rewards and Honors:
Recently Askari bank has been given the best annual report award for the year 2010 by ICAP and ICMAP.
In the same year bank has also won the best presented accounts award 2010 2 nd Runner Up-joint by South
Asian Federation of Accountants.
5.2.3 Nature of business:
Principle activities of bank are to facilitate its customer by providing depository, lending and related
financial services. These financial services are internet banking, credit cards, debit cards, corporate retail
and commercial banking, credit risk management agriculture banking and customer services. Askari bank is
providing corporate, retail and commercial banking products and services primarily in Pakistan.
Bank strives to meet the expectations and requirements of corporate clients by providing the customized and
relationship based banking approach. Bank provides services in the area of mergers, acquisition,
privatization and underwriting. In retail banking products provide services to small borrowers it includes,
personal finance loan schemes, automobile loans, credit card facility, internet banking, travelers cheques,
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debit card, Mortgage finance home loan, business finance, finance facility for consumer, agriculture finance
program. Commercial banking involves activities related to export finance, project finance, leasing, trade
finance, guarantees, lending, deposits from corporate customers and bills of exchange, treasury and money
market services, locker services. Askari bank also offers agriculture banking products and services.
Financing products includes live stock development finance, tractor finance etc. and a wide range of Islamic
banking products and services such as home Musharka and deposit schemes.
Askari Bank is the first bank in Pakistan to offer online banking and ATM facility on a county wide basis
having 5903 ATMs covering all major cities of Pakistan.
5.2.4 Product or service lines:
Askari bank is providing comprehensive range of products and services to its customers. Whether you are
looking for lockers for your valuables, high returns on deposits, provides liquidity for your business needs,
financing for purchasing a car, financing for purchasing a house, loans to meet your emergency cash needs
Askari Bank would be the right choice.
Branch Banking
Following are the products provided by Askari bank to their customer at branch level.
Roshan Mustaqbil Deposit
Value Plus Deposit
Paishgi Munafa Account
Mahana Bachat Account
Deposit Multiplier Account
Rupee Traveler Cheques
Current Account
Saving Account
Consumer banking:
There are two types of consumer banking that deals by Askari bank Limited Consumer Banking Products
and Consumer Banking Services.
The state bank of Pakistan has given boost to consumer financing by removing restrictions imposed on
national commercial banks. In Consumer Banking Divisions products mainly comprise auto finance,
personal finance, mortgage finance, smart cash, Askari Credit Cards (Master Card), Corporate Credit Cards
and Zarai Credit Cards.
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In consumer Banking Services bank facilitate its customers by providing Internet Banking service,
Electronic Bill payment service, Cash Management Service, Investment Certificates, Call Center and ATM.
Agriculture Finance service:
Pakistan is having diverse geographical and climate conditions country has great potential for agricultural
growth and development. Role of agriculture in our economy is pivotal in nature. Agriculture finance
service launch for farmers to improve their life style. Bank has launched a separate division Askari Bank
Agriculture and Rural Business Divisions (ARBD) that offers following products and services.
Kissan Aabpashi Finance, Kissan Ever Green Finance, Kissan Farm Mechanization Finance, Kissan Tractor
Finance and Kissan live stock development.
Islamic banking service:
In order to meet customers demand of Shariah compliant banking. Askari bank is offering Islamic banking
by providing services of Islamic corporate baking, Islamic investment banking, Islamic trade finance,
Islamic general banking and Islamic consumer banking.
Following are the product and service that offer by Askari Islamic Banking Profit rates, Deposit Schemes,
Ijarat Bi Sayyarah, Declared Weight Ages and Home Musharakah.
Corporate & investment banking Service:
Corporate banking includes providing corporate and investment banking activities. Corporate & investment
banking service are specially designed for business requirement of region clients and try to meet their
expectation through providing customized and to create personal relational base service business sector of
different region of Pakistan.
Corporate and investment banking Group(CIBG):
Corporate and investment banking Group (CIBG) is further divided into key two divisions, Corporate
Banking Division(CBD) and Investment banking Division(IBD).
Corporate Banking Division (CBD):
Corporate Banking has following products and services to satisfy corporate customers by providing
Working Capital, Term loans, Structured Trade Finance, Letters of Guarantee, Letters of Credit, Fund
Transfers, Bill Discounting, Export Financing and Receivable Discounting.
Investment banking Division(IBD):
In investment banking division bank is providing Bonds, Syndicated loans, Structured Finance, Leveraged
Buyouts, Project Finance, Quasi Equity Product, Privatization, Private Equity, Equity Underwriting &
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Placement, Mergers, Equity De-Listing and Corporate Restructuring, Acquisitions Friendly / Hostile /
Tactical stakes.
Alternate Delivery Channels:
Askari bank is the first bank in Pakistan that introduced online banking facility Internet banking (I-NET),
visa debit card, Call Center and Auto Teller Machine (ATM).
5.2.5 PEST Analysis:
Political and Legal Analysis:
Askari Bank is operating in Pakistan which is one of the worlds most volatile political environments. War
against terror is going on and there is very weak Government. Askari bank Ltd is part of Askari Welfare
Trust which is running by Pakistan Army so the bank has the advantage of not being interfered directly by
the government but political forces have an imperative impact on Askaris business through consumers and
businesses which are directly affected by political instability. There are also some other global challenges
such as climate changes e.g. floods, earthquake, poverty, scarcity of resources, change of law, change in
government regulations and demographic shifting.
Economic Analysis:
Pakistani banking sector remains relatively downbeat despite the potentially vast consumer market in the
country. However, we should not expect rapid sector development. Recent floods have put a lot of pressure
on the economy of Pakistan. Government regulations affect the working and profits of bank. Following
economic factors have severe affects on Askari banks prosperity Interest rate, inflation, taxation, disposable
income, unemployment and exchange rates.
Social Analysis:
Currently the usage of credit card is limited to middle class only there has been a marked increase in the use
of credit cards in Pakistan. At the same time spread of internet in the country people are more inclined to use
the net to do banking transactions specially bill payments. Since Askari bank has the reputation of being a
conservative bank consumers are quite loyal and will stay with the bank. Factors such as population shifts,
education, living standards, housing trends, occupation and earning capacity have major affects on the
business activities of Askari bank.
Technological Analysis:
The technology makes possible to empower the banking system and establish a competitive advantage.
Pioneering the new ideas, adding skills and operational excellence leads to a successful working
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organization. Recently askari has been investing heavily in Information technology as bank is having wider
ATM network in Pakistan and also providing the facility of online banking.
5.2.6 Contribution of organization toward Economic Development:
Pakistan is a developing country and its financial system consists on several financial institutes. In economic
development commercial banks are playing vital role. In trade development not only domestic but foreign as
well bank is providing the facility of transfer of money from one place to another place safely and quickly.
You need just one click to transfer money from one place to another from one account to another account
whether they are in same bank or not. Askari bank is providing agricultural finance as agriculture is the most
important sector for the development of Pakistani economy. Bank is also helping to increase the capital
formation in country. Bank is providing loan facility to its customers working in all sectors of the economy
to make them more develop than before. Besides financial advices askari bank is giving financial advices to
its corporate customers to promote their business. Bankers are trained to provide such advices to their
customers. Askari Bank is persuading people to invest their extra money to get handsome percentage of
profit. In this way bank gets money at a specific rate and invest in more profitable securities. By
strengthening the capital structure of economy askari bank is playing an important role to increase
production capabilities.
Sound banking system promotes the economic status. By providing these entire things askari bank limited
ultimately leads to economic prosperity.
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5.3 Organizational Structure

Board of Directors
Audit committee
Executive committee
Risk management
committee
Budget committee
IT committee
HR &
remuneration
President & chief
Executive
Company
secretary
group head
transformation
Group head C
& Inv
GH Marketing
& strategic
GH commercial
banking
Chief
financial
Chief info
officer
Country head
risk
Group head
operation
Chief credit
officer
Global
treasure
Executive
incharge
CH Islamic
banking service
CH human
resource
CH asset
management
CH consumer
banking service
CH audit &
inspection
CH
international
CH
compliance
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5.3.1 Organizational Hierarchy:

Branch manager
Imtiaz Ahmed Mir
VP
Operation
manager
Imrana
Yasmeen
AMG
Accounts
In charge
Naveed
Ahmed
AMG
FT officer
importer.exp
orter,remitta
nce
Yasir Shah
AMG
CD in
charge
position
Vacant
Relationship
manager
Basharat Ali
Relationship
officer zafar
Iqbal AMG
Cashier
Abdul
Sammad
OG II
Remittance
officer
Sajjad
Hussain
PABX operator
(position
vacant)
ACO
(position
Vacant)
Chief
Cashier
(position
vacant)
Voucher
sorting
activity
checking
(position
vacant)
Account
Opening
Officer Gulzar
Ahmed OG II
System Admin
shehzada rauf
OG-II
On
Without pay
leave
ACO Ali
Nawaz
(contrat)
Cashier
Muhhammad
usman Raza
Clearing
officer
Muhammad
Asif OG II
FC officer
(position
Vacant)
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Peon syed Ali

Abbas &
Amir Javed
Bashir
5.3.2 Number of Employees:

According to December 2012 report total employees working in branches of Askari bank Limited are 5,597.
5.3.3 Main Offices:
Askari bank limited has a wide network of branches following are the main branches of bank in north,
south, central and west Region. The system of area and regional branches was introduced in 1999 for
effective control of branches.
North Region
AWT plaza branch, Rawalpindi
Chaklala Scheme-III Branch, Rawalpindi
Satellite Town Branch, Rawalpindi
Fakar e Alam Road Branch, Peshawar
DHA-Islamabad Branch, Islamabad
I-9 Industrial Area Branch, Islamabad
F-10 Markaz Branch, Islamabad
Blue Area Branch, Islamabad
Central Region
Rahimyar khan Branch
Jhang Branch
SAT Branch, Lahore
Tufail Road Branch, Lahore
Badami Bagh Branch, Lahore
Shahalam Market, Lahore
Gulberg Branch, Lahore
G.T. Road Branch, Gujranwala
Paris Road Branch, Sialkot
University Road Branch, Faisalabad
Abdali Road Branch, Multan
Club Road Branch, Sargodha
Noor Mahal Road Branch, Bahawalpur
Abdali Road Branch, Multan
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High Street Branch, Sahiwal

M.A. Jinnah Road Branch, Okara
GT Road, Gujrat Branch
Shahalam Market, Lahore Branch
Mandi Bahauddin Branch
Sheikhupura Branch
South Region
Nawabshah Branch
Kandkot Branch
Mirpurkhas Branch
5.3.4 Introduction of all Departments
Askari bank limited is a complete banking system. ACBL banking system is a collection of interrelated
departments that works together it is right to say that ACBL is a hierarchical system. Following departments
are working in ACBL branches:
General Banking Department
Accounts Department
Credit Department
Foreign Exchange Department
Cash Department
General Banking Department
General banking department involves Deposits, cash, clearing and remittance department.
Account opening Department:
Banker customer relationship starts from opening an account when a person opens an account with a bank
the banker customer relationship is established. This Department is intended to help customers to open an
account and to guide customers about different types of accounts being offered by the bank and help them to
choose a suitable account to open. From filling form till receiving an account number and receiving check
book or ATM card is the responsibility of this department to facilitate customers in all manners. It is
advisable that a banker should not open new accounts of unknown person unless banker obtains as much
information as possible about the character and integrity of the person his name, address and the person.
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Customer is a source of fresh deposits therefore is welcomed by the banker. References are demanded for
the following reasons:
Precaution to avoid fraud

Safeguard against unintentional overdraft
Inquiries about customer
Proof of reasonable care and enquiry
No bank can run its operations without deposits. Channelizing funds from the savers to ultimate users is the
main function of commercial bank. Bank borrows in form of deposits the borrowed capital of a bank is
greater than their own capital. Deposit creation is done by opening an account in bank. Two broad categories
of deposits are Demand Deposits and time deposits. There are different categories of deposits current
deposit, value plus current deposit, call deposit, sundry deposit or margin account, PLs saving account,
askari special deposit account, value plus, Askari Faida account and askari basic banking account.
Clearing Department:
Clearing department is concerned with a system by which banks exchange cheques and other negotiable
instrument drawn on each other within a specific area and secure payment for their clients through the
clearing house at specified time. Cleaning department does not involve any cash so there are no chances of
robbery. In this department entire transaction take place through book of entry. Number of transactions in
this department can be unlimited. It provides an extra service to the customers without any extra service
charges or cost. Clearing have two types inward clearing and outward clearing. In house balance book the
amounts which or to be received and paid to representative banks through their accounts at state bank of
Pakistan and number of cheques received and delivered by each bank is written down.
Remittance Department:
This department provides services to the customers of the bank. Transfer funds are main function of this
department. Instruments handled by this department are demand draft, telegraphic transfer, mail transfer,
pay order, pay slip. Remittance can be made through mail transfer, electronic transfer and instrument
transfer.
Accounts Department:
Accounts department is a department which deals with all the activities of all the departments of bank. Daily
transactions are recorded on computer its function is to get summary of all credit and debit transactions and
vouchers for record purposes. It deals and checks all the working of bank such as checking banks daily
activity, preparation of statements, calculation of depreciation, reconciliation and salaries payment. All
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vouchers are scrutinized at the end of day and computer prints are received. Next day activity is separated
vouchers are sorted out head wise and matched with entries in subsidiary ledger and immediately deal with
abnormalities if any. Also maintains books of accounts of head office and arrangement of stationary for
bank. Do pre audit checking also deals with external audit reports and state bank of Pakistan instructions.
Cash Department:
Physical movement of cash in bank is made through cash department. Cash department performs the
functions of receipts which include cash deposit by customers, payments against cheques, act according to
standing instructions, transfer funds from one account to another, verifications of signature, posting, ATM
handling and handling of prize bonds. All banks are required to follow the instructions of state bank of
Pakistan regarding cash management such as branches are required to prepare on daily basis a statement of
closing cash balances. Branches are required to maintain minimum surplus cash balance on daily basis.
Special teams of state bank will pay surprise visit to the branches to examine the quality of currency being
issued by the banks.
Credit Department
Extension of advances to individual and companies is the basic function of credit department. Lending is the
source of asset creation but it involves risks of losses. For extending advances credit department carefully
checks all the required documents and necessary securities. There are two types of advances funded
advances and non funded advances.
Types of credit can be classified as
Commercial Credit
Products credit
Consumer Credit
Investment credit
Bank Credit
Public and Private Credit
Foreign Trade Department:
Foreign trade refers to denote either foreign currency or the rate at which foreign currency is converted into
another currency. Foreign exchange is concerned with the international indebtedness. Foreign trade
department deals in foreign account, imports and exports. Foreign currency account mainly deals with
individual, personal and companies account. This account provides facilities to make remittance procedure
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flexible inward, outward remittance and travelling quota. Export mainly deals in Negotiation of documents,
Sending the documents for collection, Pre-shipment, Post-shipment financing, Remittance against agent
commission, Forward covered booking, Handling the documents for negotiation, Handling the documents
for collection, E form. This section helps the exporters to settle the financial affairs.
5.3.5 Comments on the organizational structure:
Askari Bank limited is having a well managed organizational structure. Bank is using centralized approach
for many departments, information flows from top management to lower level management. Askari bank is
going to centralize it all network now and at times some decisions are made by lower level management. All
departments are designed in such a way that goals and objectives will be achieved with in time frame to
ultimately achieve goals and objectives of bank and the organization. Organization is striving to improve
and enhance its day to day activities by increasing the employee coordination and job satisfaction.
Employees also carry out their responsibilities in a professional way. Bank achieve sustain growth and
profitability by optimizing usage of technology. The workers are delegated and assist each other in their
work. Overall work environment is friendly and admirable.
5.4 Internees Work:
5.4.1 Brief Introduction of Branch:
I did my internship at Askari bank limited Sialkot and it is located at Tariq road Sialkot cantt. It is not the
main branch having 15 employees working in it out of which only one is women and remaining are men.
Branch is well managed, well furnished and has an attractive building. I preffered to do internship at Askari
Bank Limited because it is a well reputed organization and I wanted to learn from an organization which
would be productive for organization and me as well. When I joined I had no practical experience regarding
the working of a bank.
Employees are ready to answer any queries above all staff is very intellectual and expert. I worked for six
weeks and learned a lot in this span of time. The branch is on the way to progress.
Starting and Ending Date of Internship:
My internship period at Askari Bank Limited was from 1 August 2013 to 11 September 2013. During six
weeks period of my internship I focused on my work and strived to learn as much as possible.
5.4.2 Detail of Supervisors:
Mr. Nadeem Ahmed is working as Accounts Manager AMG.
Mr. Gulzar Ahmed working as accounts opening officer AMG.
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Mr. Sajjad Hussain is working as in charge of Remittance OG II.

Mr. Muhammad Asif is working as in charge of clearing Department AMG.
Mr. Yasir Shah is working as in charge of Foreign Trade department OG II.
Mr. Basharat Ali is working as Relationship Manager.
Mr. Wazir Hassan Butt is working as Credit Manager AMG.
5.4.3 Weekly Time Tables:
Week 1
Remittance Department
1 August 2013 to 7 September 2013
Supervisor: Mr. Sajjad Hussain
Day
Thursday
Activities
I was introduced to the staff, and Mr. Nadeem Ahmed gave me the brief overview of
department and its functions. I started from remittance department information
about different categories of deposits, types of deposits with their duration,

monthly profit rates and W.H.tax to be deducted on those deposits was given to
me.
Friday
My supervisor guided me about cheques how different types of cheques are

stamped, filled and how their payment is made to customer.
Monday
Guidance about how to fill the online banking slip and deposit slip and required
documents needed to attach with forms was given to me.
Tuesday
I learnt how to fill a demand deposit and pay order application slip procedure
of Issuance, Payment and necessary vouchering information were given to me.
Wednesday
Todays learning was how the record of demand deposits and pay orders and
daily transactions is maintained into system and printed.
Supervisors signature:
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Week 2
Account Opening Department
12 August 2013 to 16 August 2013
Supervisor: Mr. Gulzar Ahmed
Activities
Day
Monday
On first day I was introduced how to deal with customers and inform them about
kinds of accounts offered by bank I also learnt about deposit authority and
action
Tuesday
Thursday
Friday
Introduction about how to fill the account opening application form and
required documents to be attached with the application form such as signature
specimen and account details form. Lecture was given to me about society and
trust accounts. I filled locker application form and made entry into locker
operating register.
My supervisor guide me how to fill the ATM application form and kinds of
ATM cards being offered and how many accounts can be maintained on one card
card charges and amount that can be withdrawn. I also learnt about partnership
and private limited company account opening requirements.
I learnt mandatory requirements for opening an account and requirements for
opening minor, public limited and partnership company accounts. I did the
manual record keeping new arrived cheque Books and ATM cards. I issued
cheque book to new and old customers and receive requisites from new
customers of the bank and filled the account opening application and attach
signature specimen cards and other required documents and complete the record
keeping of forms by attaching some other documents.
Supervisors signature
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Week 3
Accounts Department
Supervisor: Mr. Nadeem Ahmed
Activities
Day
Monday
Information was given to me about how leaves are approved and how to fill them and
how bank pays general sales tax and bank do internal audit.
Tuesday
Information was given to me about how bank approves its expenses from head office
and expenses are paid and received budget from head office.
Wednesday
Instructions were given to me about how to check Daily GL Movement Accounts

and I did activity checking.
Thursday
I was instructed how to check the Daily Customer Movement Accounts and I checked
them and help to record them.
Friday
I did activity checking of daily GL movement accounts and customer accounts

and write them on books and recorded them. Information about softwares being
used by bank and how bank reconcile the statement in case of any notification from
head office or discrepancy
Week 4
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Clearing Department
Supervisor: Mr. Muhammad Asif
Activities
Day
Monday
On first day my supervisor gave me detailed description of clearing department

how it works how to maintain account with state bank role of head office and
NIFT.
Tuesday
I was guided about the conditions to reject a cheque or when to bounce cheque
which is presented to bank and why bank stops payment. I was guided about
how to attach 24 reason memo or other banking slips with the cheque, how to
make entry of cheques to be returned without payment and what is the use of
different stamps.
Wednesday I came to know about the contents of cheque how to deal with cutting on cheque
Same day payments post dated cheques and intercity clearing process. I was also
told about how to attach system generated vouchers with banking instruments
and how to stamp and sign them. The use of IBC and how to deal with difference
in IBC and other banking instruments and balance the enrty.
Thursday
I make an understanding of how to stamp each instrument while doing their

clearing and verify signatures and amount written on cheque. I learnt about
making entries into system
Friday
I separated vouchers from army salaries cheques, made the list of vouchers
according to sequence in excel and stamped them. Checked all the stamps along
with signatures and attach their lists with them.
Week 5
Foreign Trade Department
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2 September 2013 to 6 September 2013

Supervisor: Yasir Shah
Activities
Day
Monday
A brief introduction of department and its working was given to me that what
kind of financial and commercial documents are being made and maintained
for record purposes by bank. My supervisor told me about the whole export
process.
Tuesday
I came to know about the E-Form and its copies and distribution of copies
among parties. I was also told about swift, NASTRO and VASTO account,
how collection process follows a route and use of IBAN and how IBAN is
generated from system. I learnt INCOTERMS 2000 and origin of terms.
Wednesday I move towards doing some practical work I made PRCs then attach them with
E-Form and heir relevant commercial documents then I did E-form verification
and made their entries into E-Form certification register. I also attached exchange
rate with PRCs for customers. I learnt the process of issuing foreign TT and DD
then I filled FTT forms for foreign remittance.
Thursday On Thursday I made PRCs of Advance Payment and partial payments and
made their record after E-Form verification. I learnt about swift message and letter
of credit. I was told about four types when letter of credit is available its
amendment and clauses of letter of credit. I also learnt about collection payment
and presentation of documents under URC-522. I also did coding of E-Form and
filed it. I also calculated cross rate according to instructions.
Friday
I was told about different entries to be made when amount is received on behalf of
customer from remitting bank and how treasury account is maintained and what
branch receives against its accounts in foreign currency and reporting is made in
dual currency. I learnt the whole process of encashment entries to be made
and debit voucher to be attached.
Week 6
Credit Department
9 September 2013 to 11 September 2013
Mr. Wazir Hassan Butt & Mr. Basharat Ali
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Activities
Day
Monday
lecture was given to me about earning of bank thats how banks earn and the
process of issuance of letter of credit and letter of guarantee funded and non
funded facilities provided by bank. I was also told about mandatory requirements
for credit and 5 Cs, 3 Ps and ECIB.
Tuesday
I was guided that state bank of Pakistan gives rules about disbursement of finance
how to fill BBFS. How to fill information form and application form of SME for
providing finance facility and what statement is to be received.
Wednesday lecture was given to me securities against letter of guarantee, running finance
revolving finance and some other types of finance what bank earns from it.
5.4.4 Detailed description of the operations/activities of the departments I worked in.

Internship Departments:
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I worked as an internee and experienced a good time with Askari banks employees. I worked for one week
in each department it was a wonderful learning experience in following departments.
Remittance Department.
Account opening Department.
Accounts Department.
Clearing Department.
Foreign Trade Department
Credit Department.
Remittance Department:
Transfer of funds from one place to another place can be done through mail transfer, instrument transfer and
electronic transfer.
Demand Draft:
Demand Draft (DD) and Pay Orders (PO) are issued to customer on request by bank. Demand Draft is
issued by one branch and paid by the other branch of the same bank or different bank.
The stock of Demand Draft and Pay Order is being supplied from head office must be recorded in stationary
register and kept in locker. Draft book and pay order book in use should be kept in locker overnight. At the
end of day issued DD and PO should be verified with register that all entries have been made and in the next
morning officer must check the DD and PO with reference to the previous day last leaf.
Procedure:
Before issuing demand draft the officer must ensure that that the amount and service charges for are
received.
Application form is given to the customer to fill it and sign it.
Officer of remittance department checks the information and sign it.
Cashier checks the amount and service charges.
Entry is made in DD register and instrument is given to customer.
Posting of DD and vouchers is made into system advises are printed and mailed to the concerned
branch.
If any concession is allowed as army officers do not have to pay any charges then commission is not
collected.
Finally entry is made in register as DD payable Nil.
When DD is received payment is made an entry of Branch Dr. and DD payable Cr. is made.
Unclaimed DD:
Amount of unclaimed DD is transferred to head office as a bank draft is valid for six months from the date
of issuance.
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Cancellation of Demand Draft:

Purchaser of demand draft can request to cancel it in such case charges should be deducted and payment of
DD should be stopped.
Safeguards to be followed:
Safeguards should be followed while writing the amount in figures or words no gap should be left between
the words. Notion (/-) should be used at the end of amount. There should be no alteration or overwriting if
any should be attested with signature of customer. Instrument should be crossed. Reverse carbon must be
attached.
Pay Order:
Pay order issued by one branch is payable from the same branch. It is used for the payment within city. It is
like bankers cheque payable locally. Procedure of its issuance is:
Get the application form from remittance officer.

Fill the form, sign it and attach necessary documents.
Charges are applied then cost memo is signed and given to customer
Entry is made in pay order register and a voucher is made and posted on computer finally customers
account is credited or cash is paid.

Should be crossed payees account only with stamp.
In case of Payment
Pay in Slip:
This instrument is used by bank for its payment. No other bank is involved. Branch is itself issuer and payer.
No excise duty is charged and procedure of issuance and payment is same as pay order.
Telegraphic Transfer:
In telegraphic transfer request is received from customer to make telegraphic transfer by account debit or by
receiving cash. It is the fastest way of transferring money.
Issuance:
Request is taken on a printed form and is given to customer to fill it and sign it. Then a neat TT is made with
three copies of it one for branch second for Head office and original is faxed to respective branch and
charges are received.
Received:
When a TT is received then test numbers and signatures should be checked. Entry in TT payable register is
made and recorded into system as Head Office Dr. TT payable Cr. and TT payable Dr. Customer Account
Cr.
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F.D.D and F.T.T is used to conduct foreign remittances. Foreign Exchange department of askari bank
limited is equipped to deal with such needs of customers.
Accounts Opening Department:
Great care should be taken in matter of opening an account because opening of an account is of crucial
importance for a bank. There are specified rules and procedures for opening account which are being abide
by all branches of askari bank.
Responsibilities of department:
Account opening officer is responsible for
Opening bank account

To complete documentation at time of opening an account.
Issue checkbook
Issue ATM card
Closure of account
Account Opening:
When a person enters into the bank with an intention to open an account banker must determine category of
account customer wants to open with bank.
Askari commercial bank Ltd has the following categories of accounts:
Individual Accounts.
Partnership Firm Accounts.
Joint Stock Company Accounts.
Agency Accounts.
Clubs, Societies and Association Accounts.
Administrators Accounts.
Local Bodies etc.
Trusts.
Proprietorship.
Joint Accounts.
Other Miscellaneous Accounts.
Documentation:
Each account has different requirements regarding documentation. Some common documents are:
National Identity card (CNIC)
Application form
Source of income
Individual Account:
Documents to be obtained for opening an individual account are:
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Attested photocopy of computerized national identity card or passport of the individual by an officer
of the bank.
If CNIC does not contain a photograph then bank should obtain any other document that contains a
photograph.
Attested copy of service card should be obtained in case of salaried person.
For illiterate person his\her photograph and thumb impressions on the specimen signature card must
be obtained.
Minor Account:
The natural guardian signs both account opening form and specimen signature card. Title of account
indicates both the names of minor and guardian such as
Zafar Islam Khan (minor) Islam-ud-din Khan (guardian)
Only guardian will operate the account even if minor attains the age of majority.
Required documents are
Guardians National Identity Card
Minors Form B
If guardian is appointed by court then attested copy of guardianship certificate must be obtained for
record.
Joint Account:
National identity card of all account holders is required. Joint account holders are required to sign as
applicant.
Accounts of Proprietorship concerns:
Required documents for this account are:
National Identity Card of proprietor

Account opening form
Letter of request to open the account
Declaration of proprietorship concern
Third party mandate.
Signature of proprietor as applicant
Accounts of partnership Firms:

Following documents are required:
National Identity card attested copy

Attested copy of partnership deed signed by all partners
Registration certificate copy from registrar if not registered then it must be mentioned.
Third party mandate.
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Signature of all partners.

Accounts of Limited Company:
Certified copy of deed

Copy of NIC
Resolution of trustee
All trustees are required to sign the account opening form.
Accounts of Liquidators:
Account should be opened in the name of company with the words in liquidation
Documents required are letter of appointment
Powers of the liquidators
Accounts of Clubs and societies:
Account must be opened in the name of organization
Copy of regulations
List of members
Copy of certificate of registration
List of names of officials
Signatures of authorized officials and secretary signatures.
Procedure of Account Opening:

A procedure is followed to open an account in this regard first step is
Account Opening Form:
First step in account opening procedure is filling of account opening form. It contains all information
needed to open and operate account.
Contents of account opening form are:
Title of account
Account number
Personal information
Corresponding address
Nature of account
Currency of account
Signatures of account holder
Instruction for Zakat deduction
Instructions for operating account
Terms and conditions
Verification of Documents:
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When documents are collected from customer then necessary verification is done. Such as verification of
CNIC, signature differences from CNIC if any, Signature specimen card, online banking application, letter
of thanks.
Issuance of Cheque Book:
Customer requires a cheque book after opening an account to conduct operations. To have cheque book
customers shall apply for it.
Reissuance of cheque book:
When two or three leaves are left then customers can demand for a new cheque book. Customers fills a slip
which is attached with existing cheque book and receives a new cheque book from banker in two to three
days.
Loss of cheque book:
In case customer has lost his or her cheque book then customer should stop payment first step should be
stop payment of all cheques. Next step should be issuance of a new cheque book.
Closing of Account:
Reason why an account is closed:
At clients request
Account holders death
Bankruptcy of account holder
Winding up or liquidation
Dormant account
Procedure:
Customer gives written request and surrenders the cheque book then banker destroys the cheque book.
Account closed file is printed and account opening form is filed in closed accounts files. The cancelled
account is never issued to any other person.
Updating Information:
Account opening information is updated by account opening officer such as change in phone number,
operating instructions and address.
Accounts Department:
Accounts department deals with all other departments of bank. This department maintains record of all the
debit and credit transactions and financial activities of the bank and informs head office about these
activities. Mostly working of this department depends on statements sent by head office.
Activity Checking;
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Checks all the debit and credit transactions and vouchers of the branch and in case of errors send them back
to concerned department for correction.
Maintenance of Budget and stationary:
Maintain the record of daily expenses of bank. If expenses are not routine then approve those expenses from
head office. Stationary record is maintained with consumed stationary and left over.
Statement of Condition:
Prepares statement of condition on daily basis and files it.
Some other tasks performed by this department are:
Calculation of Depreciation.
Approval of medical allowance from head office to facilitate employees and their families.
Reconcile discrepancies.
Correction of accounts according to auditors instructions.
Salaries payment to staff.
Clearing Department:
A place where debtors and creditors of different commercial banks settle their claims. In clearing funds are
transferred from on branch to another branch may be of the same bank or other bank on which instrument is
drawn. All banks are maintaining their accounts with SBP that makes easy to settle daily balances. Basically
clearing department provides the services of collecting cheques from other banks to customers. Customer
can get the money in his account at askari bank from other banks.
Previously clearing house was used clearing house is a place where representatives of all schedule banks sit
together and interchange their claims against each other with help of controlling staff of SBP if there is no
branch of state bank the branch of National bank of Pakistan acts as controlling member but now NIFT has
taken its place. Clearing is made through NIFT in local and intercity.
Head office maintains an account with state bank of Pakistan by debit and credit. When amount of credit is
more than debit amount then such clearing is favorable for bank. If amount of credit is less than debit
amount such clearing is unfavorable for the bank.
National Institute Facilitation Technology:
NIFT (pvt) limited was incorporated in September 1995. All banks avail the facility of NIFT. NIFT has data
centre to provide services of cheque clearing, reconciliation, within city, intercity and inter branch clearing.
This service is being provided in Karachi, Lahore, Islamabad, Faisalabad, Rawalpindi, Sialkot, Sargodha,
Multan, D.I.Khan, Hyderabad, Quetta, Sukkur, Bahawalpur, Gujranwala, Muzaffarabad, Abottabad, jehlum,
Sahiwal and Mirpur. NIFT riders came twice a day for inward and outward clearing cheques.
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Timing of Clearing:
According to rules and regulations of clearing house timing of clearing is
First clearing at 10:00 AM
Second Clearing at 2:30 PM
Types of clearing:
Clearing department deals with two types of clearing first is inward clearing and second is outward clearing.
When cheques delivered to other banks it is called outward clearing, whereas cheques received from other
banks for payment are called inward clearing.
House balance book:
The amount and number of cheques received and delivered by each bank as well as the amounts to be
received and paid.
Acceptance of Cheques from Account Holders:
Transfer voucher is filled then receipt is given to account holder and voucher is kept with bank. Stamps are
placed and entry is made in NIFT register in local and Sialkot portion. Signature of the officer on back,
NIFT card is made and bank charges are deducted.
Outward Clearing:
Following points are considered while doing outward clearing
Name of the branch appears on its face where it is drawn on.

It should not be without date.
Amount in figures and words should not differ.
Signature of drawer
Should be properly authenticated.
Endorsement is according to crossing.
Amount of instrument and pay in slip should be same.
Title of account on the pay in slip.
After this following steps should be taken
Entries of instruments in outward clearing register.

Serial number is given to each voucher.
Register is balanced
Instruments are arranged bank wise.
Schedules are prepared.
Schedules are signed.
Grand total is taken.
Entry of unpaid instruments is made.
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Inward Clearing:
Cheques drawn on our bank but are presented to another bank. These cheques are handed over to askari
bank. Inward clearing results in outflow of cash.
Compare particulars of instruments with the list.

Instruments are sorted out department wise.
Entry is made in inward clearing register.
Instruments are sent to departments.
Before honouring instruments are scrutinized.
Foreign Trade Department:

Foreign trade department works like general banking departments with the only difference that it deals in
foreign currency. Assignment of this department is to deal with foreign currency accounts, import, export,
foreign remittance and submission of report to state bank of Pakistan on monthly basis.
Import:
Import and export trade act 1950 governs import and export trade in Pakistan. Export promotion bureau is
the regulatory body of imports. Import license is required to import goods from foreign countries.
Application to license authority must be submitted to obtain license. Issued license must be registered with
state bank of Pakistan.
Letter of Credit:
Importer and exporter sign a contract and to make payment easily they require letter of credit. Letter is
issued by the importers bank. Letter of credit is a written undertaking by importer to exporter to pay at
specified date on future. In letter of credit four parties are involved such as importer, Exporter, issuing bank
and negotiation or advisory bank. Bank requires purchase order, import license, insurance and cash or
securities from importer to issue letter margin of securities depends upon credit worthiness of importer in
favor of exporter who is later called beneficiary. After authentication by advisory bank forward letter of
credit to the exporter under covering letter. When exporter receives letter of credit then he makes shipment
of goods to importers country. Beneficiary submits documents with his bank for negotiation and bank after
determining the documents in terms of letter of credit negotiated the documents. Negotiating bank claims
reimbursement from the issuing bank and forward documents. On receipt of documents opening bank
examine the documents to ascertain that these comply with terms of letter of credit. Documents are lodged
by opening bank to the opener and payment is made opener retains the documents for release of goods.
Negotiation of LC:
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Performa invoice must include the following note LC must be available by negotiation with any bank in
Pakistan (Field 41d) against drafts at sight or usance period (Field 42C). LC available by deferred payment
or by payment is not accepted.
Difference when LC is Available:
If by deferred payment LC is restricted with LC issuing bank. LC caanot be negotiated and payment
is made by LC issuing bank on maturity.
If by acceptance LC is restricted with LC issuing bank. LC cannot be negotiated and payment is
made by LC issuing bank.
If by payment LC is restricted with issuing bank, cannot be negotiated and payment is made by LC
issuing bank.
If by negotiation LC is restricted with a nominated bank such LC can be negotiated and payment is
made by nominated bank.
Export:
Exporter is required to have an account with bank. Bank issues E-form which is properly filled and verified.
After custom clearance bill of lading or airway bill is issued by shipping company Exporter should bring
other documents to be scrutinized. After fulfilling all the requirements bank purchases export letter and
makes payment in Pak Rs for the value of goods to exporter.
Lodgment:
In lodgment payment is made to exporter for purchase of bill. Bank gets the documents from the exporter
and makes entry into E-Form certification register in which name of importer, exporter and issuing bank is
written. Two types of rates are used at sight rate and Usance rate. Sight rate is spot rate and Usance rate is
discounted rate.
Realization of collection documents under URC-522:
When bank receives payment from foreign bank, bank receives treasury advice from treasury office at
Karachi. Prepares EPRCs after realization of export proceeds.
Foreign Documents Bills for Collection:
In foreign bills payment before maturity bank pays the amount to the exporter to get some charges and in
FDBC exporter deposits the export documents with bank for collection of bill.
Foreign Currency Accounts:
Depositors can open account in foreign currency such as US dollars, pounds and Euro. Account opening
form is provided to the customer minimum initial required deposit is 500 dollars, Euro or pounds. Procedure
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of opening foreign currency account is same as other accounts. No deductions are made from these accounts
such as zakat, W.H. tax and income tax deduction is made on monthly basis only if amount in account is less
than initial deposit.
Foreign Remittance:
Funds are transferred by bank through foreign telegraphic transfer and demand draft in foreign currency.
Record is properly maintained and must be forwarded to head office Lahore.
Preparation of monthly report:
Preparation of report duly submitted to state bank of Pakistan at the end of each month.
Preparation of EE/EF reports:
Export Entitlement and Export Finance reports are made at the end of each year duly submitted to SBP.
Preparation of EPRCs:
After realization of export proceeds foreign trade department is required to prepare export proceeds
realization certificates it is very crucial because SBP has imposed fine on banks for non submission of
EPRCs. This report is submitted to state bank of Pakistan on monthly basis.
INCOTERMS 2000:
INCOTERMS are stated in letter of credit decided between seller and buyer. Its terms include EXW, FCA,
FAS, FOB, CFR, CIF, CPT, CIP, DAF, DES, DEQ, DDU and DDP.
Credit Department:
This department gives advances to individuals and companies. Extension of advances is given by carefully
checking required documents and collateral. Advances have two types funded and non funded. Instruments
being used in credit department are promissory note, bills of exchange, letter of credit crossed, bearer, open
and order cheque.
Funded Advances:
In funded advances funds of the bank are involved.
Term Finance:
Term finance is for a specific time period. Period could be of one year, two years or three years. Account is
debited once even if there are any adjustments.
Secured Finance:
Secured finance is given against government securities e.g. price bonds or saving certificates.
Documents:
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Demand promissory note, L/C, L/G.

Clean Finance:
Extension of funds is given against personal guarantee of salaries people. In such case banks cannot ask for
any collateral against loan. This practice is being discouraged by banks because banks dont find it save.
Revolving Facility:
Limit of facility is called summing. There are two types of revolving facility running finance and cash
finance. Running finance is extended to government and business enterprises. Cash finance is given against
tangible securities.
Non Funded Advances:
In which bank funds are not involved.
Letter of Credit:
A written undertaking by issuing bank given to seller at request and on instruction of the buyer to pay at
sight or at future date. Types of letter of credit
Irrecoverable letter of credit

Irrecoverable confirmed letter of credit
Revolving credit
Transferable credit
Back to back credit or counter credit
Red clause credit or packing credit
Standby credit
Deferred payment letter of credit
Sight and usance letter of credit
Credit Policy:
Commercial credit activity of askari bank limited is determined by directors. Authority is delegated credit
committee policies are credit monitoring, administration, approval, portfolio limits and principals.
Objectives are to provide suitable credit services to its customers. Advancement shall concentrate on
development and enhancement of relationships with customers.
Administration:
Administration shall insure the compliance with all rules and regulations of regulatory authority and all
these things should be closely monitored. In case of one year total facility shall not exceed 30% of total
credit.
Conditions:
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Liquidity position of borrower should be checked debt to equity ratio of borrower shall not be more than
60:40. Credit reviews must be made. True identity of the customer must be determined and credit risk must
be assessed.
Secured finances are those finances in which any collateral is obtained such as hypothecation, pledges or
tangible assets. Unsecured advances do not have any tangible security.
Principles of Lending:
Some principles of lending should be followed apart from state bank directives.
Profitability:
Profitability is the main purpose of commercial banks. Askari bank seeks higher profitability on advances as
bank has its huge spending such as payment of profit on deposits, staff salary and other expenses.
Safety:
Safety of advances is another purpose. Bank does not want to lose its principle for the sake of profit. Bank
prefers to lend at lower rate than taking more risk for more profit. Bank selects its borrowers very
cautiously. Safety should not be taken as the meaning of security it means to safe principle amount of bank.
Selection of Borrower:
A trust worthy and a reasonable borrower shall be selected which is a very complicated task. Selection of
borrower requires decision making power of banker. Before sanctioning every application shall be tested.
Liquidity and Disposal:
Liquidity here means the ability to pay short term loan requirements. It is necessary to lend money to large
number of borrowers to avoid risk of loss.
While lending money 3 Ps and 6 Cs must be considered.
Character:
Banker got to know about the character of the person that the person will live up to his contract or not.
Character ultimately leads to the safety. Necessary information shall be collected about person who wants
loan.
Capacity:
Credit officer shall see the capacity of repayment of borrower before lending any amount. In case of
business man his business management, business volume, audited financial report and qualification is
checked.
Capital:
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The amount is required as a portion of borrower capital or for any project. Amount to be lent should not be
more than required. Bank should lend wisely according to customers requirements.
Cash flow:
Bank should know about the source of repayment it must be ascertained. While financing the asset of trader
bank should be confident about that the business of trader is running fine and repayment would be made
from the sale of stock of customer. Business position of borrower can be checked through audited
statements.
Conditions:
While lending bank must see the condition in which business is operating. Some factors of present and
future must determined like business will continue or its competitors affect will result in lower profits.
Market share of company and industry position must be examined. Anticipation plays a major role in it.
Collateral:
Bank needs collateral for the safety of its advances in case if party defaults then amount can be recouped
from the collateral. Simply we can say to lend money bank need safety of its money. Credit officer
according to circumstances decides what would be suitable to serve as security. Before the disbursement of
finance securities must be obtained and all other formalities must be completed.
Purpose:
Customer must tell the bank purpose of loan. To know the purpose is crucial for banks that loan will be used
for the productivity of economy.
Period:
Advances which are for one year or are short term are more preferred by bank than long term finance
because it has less risk. Askari bank limited mostly assist trading and manufacturing businesses to assist
their current assets and fixed assets needs.
5.4.5 Assigned tasks:
In Remittance Department I learnt about different types of remittance instruments and which instrument
should be used according to customers requirements and how to fill them. Debit and credit transactions
occurred are recorded on daily basis into system.
I came to know about the procedure of how to stock the DD and PO books. I filled the demand
deposit, pay order and made entry into register pay in slip and online money transfer form for
customers.
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In account opening department I assist Mr. Gulzar Ahmed he told me about the working of this
department and I learnt with great interest. I performed following tasks in this department:
Provide information to customers how can one open the account.
I filled the account opening forms.
Recheck the forms to make sure that there are no errors.
I stamped the documents according to instructions.
I checked the essentials to attach with the application forms like ID card and signature specimen.
I issued cheque books to customers and made entry of newly arrived cheque books in register.
I filled the Application form of ATM card and locker application request form and made entry into
locker operating register. I also did some pending work of this department such as stamping and
attaching confirmation letters and letter of thanks with account opening application forms.
At first I worked in accounts department under the supervision of Mr. Ahmed Nadeem. I worked there for
one week and I had a good experience in this department. My findings and tasks in this department are:
I was told about the maintenance of stationary record and other expenses how budget is approved,
managed and adjusted over time.
I did daily activity checking of MO and customer books and count the debit and credit vouchers of
both and help to record them into computer and I came to know about software being used by bank
and how entries are made in software.
Daily statement of condition is prepared it contains expenses on asset side and income at liabilities
side which is different from usual balance sheet.
I Clearing Department I assist Mr. Muhammad Asif he guided me about clearing types and process of
clearing operation manager also helped me to understand the whole process from beginning till the end.
According to given instructions I attached the vouchers or slips with the cheques and stamped them.
I made entries into the register manually about allegations I filled memorandum and attach them
with cheques by specifying reasons of cancellation. I attached other memos with cheques stamp
them and also help customers to rectify mistakes in instruments if any. I was assigned a task to find
the difference in the amount of IBA and deposit instruments and to find the related voucher which
should not be there to balance the amount of entry. Salary slips of army officers were given to me
for stamping and separating them according to number transactions then to make lists into system.
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In Foreign Exchange Department Mr. Yasir Shah was my supervisor and he guided me about working of
this department which was very interesting. I made PRCs of Advance partial and full payment and stamp
them. I did E-Form verification and made entries of PRCs in E-Form verification register. I gave PRCs to
customers by attaching exchange rates and made their entries into E-Form certification register. I checked
PRCs for internal audit submission. I did coding of PRCs and file the documents. I filled foreign TT and
DD form then made entry into home remittance register and convert the amount from one foreign currency
to another foreign currency, in Pakistani RS and calculation of conversion rate.
In Credit Department Mr. Basharat Ali and Wazir Hassan Butt brief me about working of department no
tasks were assigned to me as work there was complicated and errors were not accepted. I was told about
how to choose a customer and obtain information about person from BBFS and ECIB. They guide me that
SBP gives all the reforms regarding loans to banks and banks follows those reforms and securities required
against LC and LG.
5.4.6 My Learning as Internee:
Real life experience is key to success, experience provides a competitive advantage to build career.
Internship helps to improve organizational, written and communication skills. Internship helped me to learn
more about myself it also helped to improve my interview skills. One should be flexible enough to adapt
new environment.
As an internee I have learnt how each member and department works together and depends on each other
tasks. Branch manager manage all the functions of a branch which include hiring personnel, approving
loans, establish a rapport, overseeing work of employees of each department, bringing foreign trade
business for bank and assist customers problems. Branch Manager must have substantial knowledge of all
the products of bank as he is more oriented towards marketing.
Main branches of a bank are custodian of cash excess cash in branch is deposited with main branch. When
cash is required to pay off any deposits then branch manager is required to ask for cash and main branch
provides cash accordingly.
Every branch has its own accounts department which is responsible for record keeping of all transactions
occurring during working hours. Department assimilates and consolidates the branch position at the end of
day in form of assets, liabilities, revenues and expenses. Daily position of the branch is sent to Head Office
and state bank of Pakistan. State bank of Pakistan publishes consolidated statement of banks in business
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recorder. Accounts department also manages budget of branch and approves budget from head office for
additional expenses and maintains record of all vouchers.
Operation manager is responsible for working of general banking. General banking departments include
cash, remittance, account opening and clearing. Operation manager oversee accounting, audit and budget of
the organization and supervise all kinds of activities such as supervision of new accounts, activation of
dormant accounts, issuing bank statements, dealing with customers complaint and directs the employees.
When credit facilities are approved then work of credit department stats it performs functions of pre
dispersal and post dispersal. Credit manager oversee issuance of credit and collection of past due accounts.
It keeps three sections as processing, documentation and management information system.
Cash manager controls the flow of cash receipts and disbursements to meet needs of the branch. Determines
whether loans should be obtained or surplus should be invested.
As an internee I have tried my best to perform all the tasks well while working in account opening
department I filled forms required to open an account by attaching all the requisites and file the record of
forms. I filled ATM and locker application form after making entries into register issued cheque books and
ATM card to customers. In remittance I filled deposit receipt, online slip, demand deposit and pay orders
forms and came to know about their process of issuance and payment I also learnt about purpose of using
such instruments. In clearing department I completed the whole process from stamping and signature till the
separation of vouchers and to make lists into excel sheets of army officers salaries and separating them
according to sequence by sorting them from cheques of other branch. In accounts department learnt how to
maintain and approve budget from head office and make correction of accounts according to audit
instructions. I came to know about how this department checks the vouchers and make their record. I did
activity checking of MO and customer books and make their record and learnt about reconciliation and pre
audit checking. In credit department I learnt how to choose a customer to give credit facility and how to
obtain information about person asking for loan. I learnt the requirements for issuance of letter of credit,
letter of guarantee and about state bank of Pakistan reforms for giving loans to individuals and companies.
In foreign Trade department I learn the process of collection, responsibilities of parties to a contract under
URC 522, issuance of E-Form and submission of EPRC to SBP on monthly basis. I made PRCs, did
verification of E-Form and made entries into E-Form verification register. I told about the entries to be made
in computer system when to make payment and when payment is received on behalf of customer by bank.
Reporting is made in dual currency and interest is received from treasury and provision is maintained. I
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learnt the process of home remittance and I filled FTT forms and made entry into home remittance register
and I converted one foreign currency into another foreign currency. I got a chance to use the knowledge and
theories I studied in classroom.
Correlation with classroom knowledge:
Internship translates classroom knowledge into professional work it makes a bridge between classroom
knowledge and work environment. I observed bookish knowledge relates with practical work of bank.
Before starting internship I use my knowledge about writing CV that I read in business communication and
after starting I observed usage of business communication while communicating and writing business
letters. Human Resource principals are being applied in departments of bank e.g. job rotation, training and
development and recruitment. Concepts of finance and accounting such as interest rate calculation, General
entries, ledger, daily branch position consignment accounts and balance sheets are prepared by bank that. I
learnt about conversion of one currency into another and Pakistani Rs, letter of credit and guarantee,
negotiable instruments, invoice and bill of lading these are the documents being maintained by foreign trade
department that I had already studied.
Career paths
Internship provides learning experience which cannot be provided in class room. Internship enhances career
and academic goals. It is a kind of test drive which gradually connects academic experience to professional
work world. It allows gaining valuable exposure and provides opportunities for skill development and gives
a competitive edge in employment. Internship also helps to make career decisions above all internship
provides practical experience. Internship has also helped to improve my resume and increased my
confidence. Internship expanded my professional network and improved my work habits. Internship makes
it possible to observe individuals working as professionals and to know what occupation will be like. I was
able to do analysis because I already studied that in classroom.
6. Critical Analysis:
Askari bank limited is well organized well structured organization. Organization is using centralized
approach that means its decisions are being made by higher authorities and processed by middle and lower
level management. It is a good practice because top management is more experienced makes good decisions
and has better understanding of wrong and right conduct. Departmentalization is used through which work
is divided among employees of bank. Bank is working under state bank of Pakistan like other commercial
banks in the region. Performance appraisal system is used to evaluate the performance of employees and
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there is an audit committee which is controlling and monitoring of operations of all branches of the
organization. Actual performance of employees is compared with expected performance through internal
audit branch manager and operation manager and external audit is being held by state bank of Pakistan.
Bank is controlling information by using highly secured system. Askari bank limited has an authoritative
leadership style top management has the whole power of decision making, policy making and setting
objectives for whole organization.
Branch employees should be more efficient toward their work when employees come to the branch
employee should be on desk to help them otherwise customer would have to wait and ultimately would
create bad word of mouth. Proper check and balance must be applied. I have observed low motivation level
among employees. Promotions system is slow and as a result creates dissatisfaction among employees. HR
department should be there in bank to facilitate, train and observe working of employees.
7. Conclusion:
Since inception of askari bank limited is has maintained its growth and now it has become one of the
leading private sector banks in Pakistan. Services being provided by bank to their customers are
outstanding. Askari bank limited is the second bank in Asia having such a strong internal audit system. Bank
has played an important role in the improvement of economy by providing commercial, Islamic and
agricultural banking services rate but growth rate is little bit slow due to competitors. People or customers
are most valuable asset of bank so askari bank is investing more in people.
Overall performance of the bank is very well and growth is rapid. Just in few years bank has been spread in
various sectors. Bank has very few Islamic branches.
8. SWOT Analysis:
SWOT analysis has four parts out of which two are internal aspects and two are related to external aspects
of organization. Companies recognize and categorize its strengths, weaknesses, opportunities and threats.
Strengths and opportunities provides the competitive advantage and weakness and threats hinder it.
8.1 Strengths:
Strengths are strong points of business Askari bank limited has following strengths:
Askari bank limited is being running by army welfare trust due to strong army background bank is
trusted more than other banks.

Located in Sialkot cantt which is a very good area people can easily come to the bank.
Since inception bank has strong growth.
24 hours country wide basis ATM facility is provided.
Debit and credit card facility.
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Good credit rating.

Locker facility and western union fund transfer facility.
Service is provided according to customer expectations.
Internet banking facility.
Commercial as well as Islamic banking.
Sound repute.
Large number of branches.
Quick adoption to changes.
Well educated staff.
8.2 Weaknesses:
Some weak points of the organization are:
Slow decision implementation.

Bank is moving towards more centralization.
Offline and online entry system.
No information desk is there to serve customers needs.
Any time transfers from one branch to another branch.
Lack of specialization of more than one department.
Most of the facilities are provided to army officers not to civilians.
Rate of return on deposits is low.
No computer expert in branch in case of any problem expert comes from head office which takes
time.
Division of work is not defined among employees so some employees have over work.
No advertisement on print or electronic media.
More employees are required in branch.
8.3 Opportunities:
Positive aspects of external environment are:
Foreign investment and strong business potential.

Increase in number of branches.
Increase rate of return and better finance facilities.
Technological improvement through investment in technology.
Worldwide banking.
Expansion of business through mergers and acquisition.
Promotional campaigns.
8.4 Threats:
External factors that pose a threat to Askari bank limited are as follows:
Instable Political and legal environment of Pakistan.
Terrorism poses a great threat to country.
Increase in number of competitors.
Page 44
9.
Banks are introducing new products which are having low interest rates.
Increase in turnover ratio due to less job satisfaction.
Lack of training facility and low promotion rates.
Chances to lose market share due to no promotional activities.
Economic crises.
Need to increase branch network to capture market.
Recommendations:
During my internship at Askari bank limited I feel branch was lacking of some facilities that must be
provided.
There was no human resource department in bank. HR department should be there to motivate
employees and to train them. While working I have noticed banks employees were dissatisfied due
to the promotion system. Bank should provide promotion on merit basis to motivate its employees.
Bank is in need of more staff because of its working requirements. New qualified employees must be
hired.
I have found that all employees do not guide internees as they should few of them do so. Internees
must be guided properly about the working of bank and about tasks to perform.
Decentralization may be helpful because while working I have observed the anxiety among staff
members due to slow working of system which makes pending works now a days whole work of
bank depends upon computer system.
Work among the staff members must be divided properly and employees must stay on the desks
during working hours of the bank.
Bank should arrange externship for employees so they may get more and new information about the
working of other banks it will provide more accurate work to askari bank limited it will be helpful to
gain competitive advantage.
Separate information desk is required and some other departments to facilitate employees.
More frequent visit of audit committee.
Bank must provide high interest rates on deposits to increase its market share as other banks are
providing high interest rates than ACBL.
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9. References:
http://www.askaribank.com.pk/corporate_info.php, accessed 25 July 2013
https://en.wikipedia.org/wiki/Askari_Bank, accessed 25 July 2013
http://www.brecorder.com/company-news/235:pakistan/1206990:askari-bank-limited/?date=2013-07-04
accessed at 27, July 2013
www.scribd.com/doc/57587787/6/ORGANIZATIONAL-STRUCTURE-OF-ASKARI-BANK 31 July 2013
1 July 2013
Page 46

Internship Report On Askari Bank Limited

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INTERNSHIP REPORT ON

Askari Bank Limited

Name of Program Coordinator ___________________

5.3 Organizational Structure

5.3.1 Organizational Hierarchy:

Peon syed Ali

5.3.2 Number of Employees:

High Street Branch, Sahiwal

Precaution to avoid fraud

Mr. Sajjad Hussain is working as in charge of Remittance OG II.

about different categories of deposits, types of deposits with their duration,

My supervisor guided me about cheques how different types of cheques are

Instructions were given to me about how to check Daily GL Movement Accounts

I did activity checking of daily GL movement accounts and customer accounts

On first day my supervisor gave me detailed description of clearing department

I make an understanding of how to stamp each instrument while doing their

2 September 2013 to 6 September 2013

5.4.4 Detailed description of the operations/activities of the departments I worked in.

Cancellation of Demand Draft:

Get the application form from remittance officer.

account is credited or cash is paid.

Opening bank account

National Identity Card of proprietor

Accounts of partnership Firms:

National Identity card attested copy

Signature of all partners.

Certified copy of deed

Procedure of Account Opening:

Name of the branch appears on its face where it is drawn on.

After this following steps should be taken

Entries of instruments in outward clearing register.

Compare particulars of instruments with the list.

Foreign Trade Department:

Demand promissory note, L/C, L/G.

Irrecoverable letter of credit

trusted more than other banks.

Good credit rating.

Slow decision implementation.

Foreign investment and strong business potential.

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