Final Intership Report Askari

ACBL Internship Report
PREPARED BY: Anum Naz
Roll no:
IAS University of the Punjab Lahore.

ACKNOWLEDGMENTS
Turning ambitions into reality is quite easier when there are people who provide you
constant support from sharing of knowledge, experiences and precious time to moral
support. I thank all the persons who shared their knowledge, experiences and time with
me, and provided me firm moral support in times of desperation as I compiled my report.
I extend my utmost appreciation and thanks to the professional and emotional
endorsement of all these personalities.
I would Thank God almighty who gives me ability and strength to make and complete
this report, then to my teachers and parents who are always there to support me when
ever I find any problem.
I would also like to thank to the entire team pf Askari bank Johar town branch Lahore,
who shared their knowledge and experiences with me and spared their precious time in
helping me to understand the working of their bank, banking systems and related
terminology.
Professional accomplishment is not the result of a single day's work. Carefully considered
actions build upon one another throughout life until the goal is achieved. So I am grateful
to all the teachers who taught me directly or indirectly during the course of my studies
because without them, I would not have been able to achieve my present position.

PREFACE
In BS (Hons) Management sciences, Internship Program is an important part to give

students an opportunity to have an experience of practical field. Unless and until the
students experience the novelty of practical work, their knowledge of what they study in
theoretical courses remains incomplete. The most important point in an Internship
Program is that the student should spend their time in a true manner and with the spirit to
learn practical orientation of theoretical study framework.
This internship report is on my six weeks practical training at Askari bank Johar town
Lahore. In this internship report I have tried to give details about the Bank, its working
and different other aspects.

INTRODUCTION
Banking sector performs the core function of funds mobilization in an economy.
A vibrant and performing banking sector fuels the growth and development by providing
timely and efficiently priced funds, while at the same time helping savers earn a good
return on their savings. Banking sector in Pakistan has witnessed a strong growth since
the start of the decade. Although, it did get affected from the recent financial crisis, it still
managed to show resilience.
Askari Bank is one of the most trusted names in the banking sector of Pakistan.
Following is an introduction of the AWT that heads it, followed by a detailed description
of the bank.
ARMY WELFARE TRUST
 Army welfare trust was established mainly for the welfare of army officials.
 The office of army welfare trust is situated at AWT PLAZA Rawalpindi.
 AWT offers the “AWT Saving Scheme” to the army officials only.
 AWT has further as units.
1. Askari Associates
2. Askari Leasing
3. Askari General Insurance
4. Private Businesses
(a) Textile Mill
(b) Cement Industry
(c) Petroleum
5. Askari Commercial Bank

ARMY WELFARE TRUST AWT
ASKARI ASKARI
ASKARI
GENERAL COMMERCIAL
ASSOCIATE
INSURANCE BANK
(PVT) Ltd.
ASKARI BUSINESSES
LEASING
CEMENT
PETROLEUM TEXTILE
Askari bank Limited – History & Introduction

Askari Commercial Bank Ltd was incorporated in Pakistan on October
09, 1991, as a Public Limited Company. It commenced operations 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 the Karachi, Lahore & Islamabad Stock
Exchanges.

While capturing the target market share amongst the few banks, Askari has provided
good value to its shareholders. Its share price has remained approximately 12% higher
than the average share price of quoted banks during the last four years.
Since 1992, it expanded into a nation wide presence of over a 200 branches, comprising
commercial and Islamic banking branches, out of which 20 are dedicated Islamic
branches, while one wholesale bank branch in Bahrain, connected online and supported
by a network of 2991 Automated Teller Machines (ATMs). It also enjoys an offshore
banking unit in Bahrain.
Over the years, Askari Bank Limited has proven its strength as a leading banking sector
entity with ever increasing commitment to its clients, through a strategic investment in
electronic technology. It has A1+, the highest possible credit rating, for short-term
obligation, and AA+ for long-term rating. Beside day-by-day banking solutions, Askari
Bank Limited has a wide range of Corporate, Consumer, and Islamic Banking products.
Bank’s growth and success patterns since its foundation have far outgrown industry
standards. It is a matter of pride for the bank to be able to offer one of the widest arrays
of products to its customers through its extensive branch network all over the country.
Following is brief snapshot of the bank’s financial position1:
Total Assets Rs. 206.19 billion
Total Equity Rs. 12.97 billion
Total Employees 6496
Following is general information of the bank2:
Type Public Company
Median Age of Employee 28

1
Annual Report 2008
2
Business Week, August 12, 2009

Gender Diversity Males: 90%, Females: 10%
Subsidiaries of Askari Bank

Subsidiaries of Askari Bank are:
• Askari Investment Management Limited: engaged in managing mutual funds
• Askari Securities: engaged in managing share brokerage respectively
Re Branding in July 2008

History has shown that change is the only constant and that with time, change
always comes. Just like innovation brings improvement, and progress offers the promise
of perfection. The bank is evolving, and the desire to grow with time coupled with a firm
commitment to maintaining excellent standards of banking quality and services has
enabled the bank to realize that they need to evolve from within.
The recent re-branding of the bank was a part of the same evolution process.
The New Logo
It is said that the shorter, smarter name, crisper new colors and fresh new look are
an insight to the views on banking. The bank aims to provide innovative financial
solutions to its customers, with the security of knowing they are dealing with one of the
strongest financial institutions in the country.
The New Slogan

The new slogan of the bank reflects the customer service philosophy – we’re Askari
Bank, ask us!
Latest News at Askari Bank
Ongoing Mergers
Askari Bank pursued a deal to amalgamate with Mybank, which according to

experts was a survival bid by smaller banks to consolidate their businesses. The merger
was an attempt by the two banks to raise their capital to a level sufficient enough to meet
SBP’s minimum capital requirement (MCR).
However, the deal was cancelled recently and no reason of it was disclosed officially. But
it is believed that one of the banks had a big infected portfolio because of which the two
disagreed on the swap ratio. As a result, talks broke down. Another source said the two
banks might have concluded that they would not be able to achieve the purpose for which
they were seeking to merge. Askari Leasing is also interested to merge with sister
concern Askari Bank. This deal is in the pipeline.
Special Asset Management Team (SAM)
Keeping in view the recent financial turmoil and its repercussions, a Special Asset
Management Team has been strengthened at the head office with a purposeful approach
of facilitating recoveries of bad loans in coordination with field staff and ensuring regular
monitoring of the efforts made by them.
Investment in IT
OFSS
In 2009, the Bank has embarked upon one of the most ambitious projects in its history
by undertaking to upgrade its entire technology platform. The Bank has acquired Oracle
Financial Services Software (OFSS) (previously I-flex) as the core banking software and
its implementation has already commenced. The key objectives of this project are to

• improve business management,
• upgrade customer service
• strengthen the internal control environment
• improve quality and timing of financial and non-financial information
People Soft and Siebel
In addition to OFSS, the Bank has also signed-up for acquisition of Oracle
Financial as finance and MIS software, PeopleSoft as human resource management
software, and Siebel as customer relationship management software. These soft wares
will be fully integrated with OFSS and collectively strengthen the bank’s product and
service delivery capacity while improving the overall operational and internal control
standards.
ISO 27001
Another major initiative on the technology front is compliance with ISO 27001
Information Security Management System (ISMS). Major work on this project has been
completed and it is in an advanced stage of implementation. It is hoped that the Bank will
achieve full compliance during the ensuing year.
MOTIVATION OF ASKARI COMMERCIAL BANK
While successfully penetrating the key domestic markets through strategic

expansion and business diversification they remain alive to the challenge emanating from
the development in the global financial markets; the opportunities and threats engendered
by greater deregulation and increased customer expectations. These provide them the
impetus (moment) to make the best use of available resources, including modern
technologies, to meet the challenges ahead.
Historically, Askari’s core marketing focus for its asset base has been the middle
and upper middle business houses (including wholesalers and manufacturers) operating in

the large urban centers of Pakistan, which are primarily oriented towards foreign trade.
This segment constitutes significant revenues to the bank. The liability side remains
focused on the middle and upper middle class retired and serving government and armed
forces personal and mid-size business houses.
Their corporate banking division was established in April 1999 with the primary
focus on servicing large corporate and multi-national companies (MNCs). Benefiting
from the bank’s growing balance sheet size, this division B now gaining momentum and
their long-term aim D to develop it into an independent Strategic business unit (SBU)
With this branch network of 75 and further expected increase in future, the
ATM’s facility and internet Banking, Askari Bank’s reach is ever increasing. In
recognition of this reach, they have set up a retail-banking group in July 2000, the mobile
ATM’s facility is first time started by Askari commercial bank in 2005 dedicated to
serving the urban consumer market; Askari is committed to aggressively market this
segment. The strategy is to provide their customers with a basket of innovative products
to meet their varying needs.
Askari Commercial Bank is the only Private Sector bank that has been approved by the
World Bank as a Participating Financial Institution for the US$ 200 million Line of
Credit sanctioned (authorized) to the Government of Pakistan for the Financial Sector
Deepening and Intermediation Project.
Askari's emphasis on further broadening its core foreign trade business translated into
handling a higher volume of Export and Import business of Rs. 36 billion registering a
growth of 42% over the pervious year. This enhanced foreign trade business was secured
due to excellent customer services and efficient international settlement arrangements
with our correspondent banks.
Askari Bank is operating throughout Pakistan. Most of the branches are connected
through our State of the Art, On-line Communications Network, which gives the bank a
competitive edge in providing instant services to its clientele. We also offer direct access
to the latest Foreign Exchange Rates through our Online Communications.
THE MISSION STATEMENT:

To be the leading private sector bank in Pakistan

With an international presence,
Delivering quality services
Through innovative technology
An effective resource management
In a modern and progressive organization
Culture of meritocracy, maintain
High ethical and professional standards,
With providing enhance value to all our stakeholders,
And contributing to society
Vision
To be the leading bank in the region.
Thinking
“Consolidation and creating opportunities with innovation”
Core values
"Professionalism without integrity is like a book without pages"
Because the right may not always be obvious, Askari must be guided in every action
by a set of well-defined values, governing Askari decisions. Askari understand that its
commitment to satisfy customers’ needs must be fulfilled within a professional and
ethical framework. Askari subscribe to a culture of high ethical standards, based upon
development of right attitudes.
The following primary core values provide the guiding principles for Askari corporate
behavior:
• Commitment
• Integrity
• Fairness

• Team-work
• Service
As part of Askari internal communications program, these core values are inculcated
in Askari employees through internal memos, posters and most importantly leading by
example.
Corporate objectives
As Askari Bank looks ahead to the future by moving through the decade of the 1990's
its efforts are guided by a broad framework of corporate objectives, which are as
follows:
 To achieve sustained growth and profitability in all areas of business.
 To build and sustain a high performance culture, with a continuous improvement
focus.
 To develop a customer-service oriented culture with special emphasis on
customer care and convenience.
 To build an enabling environment, where employees are motivated to contribute
to their full potential.
 To effectively manage and mitigate all kinds of risks inherent in the banking
business.
 To maximize use of technology to ensure cost-effective operations, efficient
management information system, enhanced delivery capability and high service
standards.
 To manage the Bank's portfolio of businesses to achieve strong and sustainable
shareholder returns and to continuously build shareholder value.
 To deliver timely solutions that best meets the customers’ financial needs.
 To explore new avenues for growth and profitability.
Strategic Planning

 To comprehensively plan for the future to ensure sustained growth and

profitability.
 To facilitate alignment of the Vision, Mission, Corporate Objectives and with the
Business Goals and Objectives.
 To provide strategic initiatives and solutions for projects, products, policies and
procedures.
 To provide strategic solutions to mitigate weak areas and to counter threats to
profits.
 To identify strategic initiatives and opportunities for profit.
 To create and leverage strategic assets and capabilities for competitive advantage.
HOW CHALLENGE BE DELIVERED

These objectives and guiding mission will be achieved through
• Focused objective
• Winning as a team
• Excellence in delivery
• Relentless quality
• Upward rising sales
CODE OF BUSINESS PRINCIPLES

Askari code of business principles is to:
• Deliver solutions that meet customers financial need;
• Build and sustain a high performance culture;
• Build trusted relationships with all shareholders;
• Build and manage the bank’s portfolio of businesses to achieve strong and
sustainable shareholder returns; and
• Create and leverage strategic assets and capabilities for competitive advantage.
CORPORATE PHILOSOPHY
“The Challenge... to bring a dream to life”

From knowing Askari customers' requirements to understanding employee needs,

from utilizing modern technology to making responsible social contributions, from
enhancing stake-holders' value to practicing corporate ethics, Askari is continuously
and consistently striving to address newer challenges with a single motivation
“The power to inspire and be inspired”.
Organizational goal and strategy define the purpose and competitive techniques that set it
apart from others organizations. Goals are often written down as an enduring statement of
company intent.
A strategy is the plan of action that describes the resource allocation and activities for
dealing with the environment and for reaching the organizational goal. Goals and
strategies define the scope of operations and the relationship with employees, clients and
competitors.
With over 14 years of experience in trade finance and an extensive international branch
network, Askari Commercial Bank is committed to help the customer succeed in every
competitive environment. To keep pace with changing needs, ACBL constantly review
its comprehensive cash, trade and treasury products and services, ensuring that a full
range of flexible and innovative services is always available for the customer wherever
they trade.
Awards and achievements
In 1994, 1996 and 1997 the bank received

Euro money and Asia money awards. Askari
has A1+ rating for short-term obligations the
highest possible for the category, while the
long-term rating stands at AA. Askari Bank Won the prestigious “Best presented Annual
Accounts” awards for 2000 and 2001 from the institute of cost and Management
Accountants of Pakistan, for the services sector.

Mr. Kalim-ur-Rahman, President Askari Bank, with group having award of

'The Best Retail Bank of Pakistan 2004'
For the past four years, the Bank has received prizes from the South Asian Federalism of
Accountants for “The Best presented Annual Accounts” for the financial sector, in the
SAARC region.
Over the years, Askari Bank has proved its strength as a leading banking sector
entity, by achieving the following firsts in Pakistan banking.
i) First Pakistani Bank to offer on-line real-time banking on a countrywide basis.
ii) First bank with a nation-wide ATM network.
First bank to offer Internet Banking services
First Bank to offer e-commerce solutions.
The Askari Commercial Bank Limited has been declared “The Best Bank in
Pakistan” by the Global finance, an international financial magazine of high repute as a
result of their latest study of Banks in the Emerging Markets. This is the 2nd consecutive
year that the magazine has selected their bank for this prestigious Award.
Over the years, we have received several awards for the quality of our banking
service to individuals and corporate.
These Include:
 Best Commercial Bank Consumer Choice award 2005 by The Consumers
Association of Pakistan
 Best Retail Bank in Pakistan award 2004 & 2005 by The Asian Banker
 Best Corporate Report 1st prize awarded for 2000, 01, 03 & 04 by Institute of
Chartered Accountants of Pakistan (ICAP) and institute of Cost & Management
of Accountants of Pakistan (ICMAP)
 Corporate Excellence awards for 2002 & 03 The Management Association of
Pakistan (MAP)
 Best Corporate / Institutional Internet Bank in Pakistan award for 2004 by
Global Finance magazine

 Best Consumer Internet Bank in Pakistan

award for 2002, 03 & 04 by Global Finance magazine
 The Best Bank in Pakistan
award for 2001 & 02 by Global Finance Magazine
 Best Presented Accounts
Ranking prizes awarded from 1997 to 2002 by South Asian Federation of
Accountants (SAFA)
 Commercial Bank of the Year
award for 1994 & 96 by Asia money magazine
 Best Domestic Bank in Pakistan
award for 1995 by Euro money
Corporate Information
Management
Lt. Gen. Javed Zia (HIM) Chairman
Lt. Gen (R) Imtiaz Hussain Chairman Executive Committee
Mr. Muhammad Rafiquddin Mehkari President & Chief Executive
Maj Gen (R) Saeed Ahmed Khan 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. M. A. Ghazali Marghoob Company Secretary

Audit Committee
Chairman
Dr. Bashir Ahmad Khan
Member
Mr. Ali Noormahomed Rattansey
Member
Mr. Zafar Alam Khan Sumbal
Auditors
A.F.Ferguson & Co. Chartered Accountants
Legal Advisors
Rizvi, Isa, Afridi & Angell
Registrar & Share Transfer Office
M/s THK Associates (Private) Limited,
Ground Floor, State Life Building # 3,
Dr. Ziauddin Ahmad Road, Karachi - 75530
P.O.Box No. 8533, Karachi.
Telephone: (021) 5689021, 5686658, 5685681
Fax: (021) 5655595
UAN: 111-000-322
Registered Office /Head Office
AWT Plaza, The Mall,
P.O.Box 1084, Rawalpindi.
Tel: (051) 9063000
Fax: (051) 9272455

URL: www.askaribank.com.pk

BOARD OF DIRECTORS
Executive Committee Internal Audit
President and Chief

Executive
Corp. Banking & Operating and Retail Banking

Regions Credit Cards
Fin. Inst. Group credit group Group
Rawalpindi Planning and

International ORGANOGRAM
Credit /Islamabad Asset Products Corporate affairs
Electronic Investment Human

North
Treasury Resource
Technology products
Corporate and Systems and

Lahore Finance
Merchant Banking Operations
Data Reporting East
Legal Affairs South I
South II
West
PRESIDENT
SENIOR EXECTIVE VICE PRESIDENT
EXCUTIVE VICE PRESIDENT
SENIOR VICE PRESIDENT

BRANCH HIERARCHY
VICE PRESIDENT
HIERARCHY STRUTURE
ASSISTANT VICE PRESIDENT
OFFICER GRADE I
OFFICER GRADE 2
OFFICER GRADE 3
JUNIOR OFFICER
PABX OPERATOR
DRIVER
PEON
Managerial Policies
• Financial policies
• Procurement policies
• Marketing policies
• Promotional policies
• Lending policies
• Personal policies
Financial Policies
The financial policies of any bank are the most important policies through which the
whole banking activity is conducted. These policies are primarily conducted on:
• Source of funds
• Use of funds

Source of funds
The bank finance policy is acquiring funds from the following sources:
• Deposits of account holders.
• Interest on advances and loans granted to the borrowers.
• Income and commission from the services provided by the bank.
• Bank opens various types of accounts for its customers Services are provided for
earning.
• Interest income and commission bank providing the services to its customer.
Use of funds
After the acquisition of the funds their mobilization becomes necessary. The bank
seeks the best way for making investment to get more profit with the maximum security.
The bank has an investment portfolio in which it allocate its funds for crediting to
borrowers, investment in the stock market, investment in the real estate property etc. for
allocation of funds a bank has to follow some banking policies and the prudential
regulations of SBP these are:
• A bank has to maintain a liquidity with central bank ,i.e. 25 % of its total deposits.
• A bank cannot invest all of its funds otherwise it will be difficult to meet urgent
needs.
• A substantial part of funds is received from interest on loans and advances. Before
granting a loan the bank analyzes and observes the borrower and conduct a
complete ratio analysis. Bank prepares credit line for this purpose the major thing
is granting an advance is the security offered by the borrower and its actual
market value.
Procurement policies
Procurement policies are more concerned with manufacturing organizations. In
bank industry that is service industry procurement means the procurement of funds from
various sources such as deposits. It involves attracting and holding the funds of the
depositors. After the acquisition of funds, the bank invest the acquire funds. One

alternative is to lend its money and earned interest markup or invest in govt. securities etc.
as already mentioned in the above paragraph the major sources of funds for a bank are the
deposit of the general and the other sources of income includes interest or markup charges
received for various services offered by the bank to its clients.
A bank tries to attract maximum no. of accounts so that it can increase its deposits and
this lending ability. In order to get maximum no. of accounts the staff of the bank must be
efficient as compared to the other banks and the manager of the branch must take
personal interest in attracting deposits. Good quality of the service is the key to success.
Marketing policies
Marketing policies are also one of the most important policies because they are
related to the growth of the organization. Marketing for a bank would mean:
1. Creation of new product and services.

2. The bank marketing must be consumer oriented.
Following are the marketing policies of Askari Bank

• Keeping the track of latest development in the world and incorporating the latest
and most modern equipment to make the banking procedures simple and easy for
the customers
• Development of products for the customers
a. Giving good services and maintaining good relations with the customers.
These policies can be implemented by providing the right product and service to the
customer at the right place, at the right time, at the right price. It is necessary for the
managers to keep in touch with consumers, observe their needs and develop products,
which meet their needs.
Promotional policies
Public relation and advertising has assumed a great importance in the modern banking
business. As for as promotional activities are concerned, the main objective of the bank is

to inform the existing clients and other people about its new products or change in the
existing services. AB establishes its purpose through:
• Direct contact with customers
• Relation with business organizations
• Community relations
• Standard medium of advertising and promotion
Lending policies
Every bank has its own lending policies except for those, which are common for all
the banks, i.e. the policies, which are imposed on all the commercial banks by the SBP,
are known as prudential regulations. The lending policies of ACBL are as follows:
• The bank only invests in those sound and viable projects, which have good rate of
return
• Bank prefers to advance loan to their account holders
• Loan is given to reliable person only
• No political loan is sanctioned by bank
• Any account holder can apply for running finance or demand finance. The
manager appraises the past record of account holder and his credit worthiness. If
he finds any thing wrong he can refuse to sanction the amount
• The bank while taking security prefers govt. Securities to shares
• It also advances working capital loans
Personnel policies
Personnel policies have an important role in the success of any organization.
ACBL have its proper personal policies. Good personal policies motivate the employees
towards hardworking.

Following are the main personnel policies of ACBL

• Selection of employees on merit
• Selection of capable employees
• Attractive salary package for motivation of employees
• To train and develop the future management of the bank
• Every employee must have certain set of clearly defined duties
• Effective communication at al levels of the organization
All of these policies are formulated by the top level management after gaining sufficient
insight into market norms and employees feedback at lower level. Every branch of Askari
Bank has a ‘Suggestion Box’ where even employees can suggest changes and work for
improvement. In this way, all employees get a chance to have a say in management
decision making. Employee feedback is considered very important in this regard, and this
motivates employees as well.
Building Blocks of the Askari Bank Empire
Customer Relationships
"Before we discover, we must explore"
Knowing Askari customers and their needs is the key to Askari business success.
Askari products and services are structured to touch and improve the quality of lives of
all segments of society. Service quality standards are designed and monitored to ensure a
consistent and convenient customer experience. Askari client relationship managers are
well equipped and well trained to provide most efficient and personalized service to each
and every customer. Askari products and services are as diverse as Askari market
segments. Askari have structured and syndicated financing arrangements, working capital
finance, Balancing-Modernization Replacement (BMR) facilities, financing of
international trade, consumer credit, small business loans, credit cards and unparalleled
investment products for the individual saver. Askari Bank is proud of the pioneering role

in providing the most modern technological services to its customer base, which today
exceeds 150,000 relationships.
Employee Relationships
"Unusual effort on part of the employees who are apparently ordinary workers is
one of the key indications of a superior enterprise"
Askari staff is Askari most valuable asset. The human resource philosophy at
Askari Bank focuses on multi-talent hiring, professional grooming, requisite training
and meritocracy based reward system. Askari lays great emphasis on the development
and nurturing of "Askari Culture", a cohesive teamwork, where each relies on the
strength of the other and together they achieve common objectives.
Staff welfare has always been a priority. New initiatives like hospitalization
plan, car buy-back facility and home loan insurance have added new dimensions to
the staff-care policy and motivated them to out-perform Askari competitors.
Employee productivity enhancement is organized through extensive in-house
and external training programs. Askari continue to offer opportunities for people to
develop their knowledge, skills and personalities, thus ensuring greater self-
fulfillment and progression in the organization.
Technological Innovation
"Modern science is not an option, it is an obligation”
Technology is rapidly changing the way Askari think, act and does business. It has
played a pivotal role in enhancing customer expectations, particularly with respect to
speed and quality of service.
Askari enjoy a strategic competitive advantage over all domestic players by virtue of
Askari leadership in technological innovations. Askari have fully automated transaction-
processing systems for back-office support. Askari branch network is connected on-line

real-time and Askari customers have access to off-site as well as on-site ATMs, all over
Pakistan.
Askari Phone Banking service and Internet Banking facility allows customers to enjoy
routine banking services from anywhere in the world, 365 days a year, 24 hours a day.
Askari have also pioneered commerce venture in Pakistan through a major retail
distributor.
Askari qualified and experienced technology team is now focusing on data
warehousing to enhance the Customer Relationship Management (CRM) program
Inspiring Ethical Values and Code of Conduct
Integrity is the most valued standard in whatever AB does. They understand that their
commitment to satisfy customers' needs must be fulfilled within a professional and
ethical framework. They subscribe to a culture of high ethical standards, based upon
development of right attitudes.
Askari Bank follows a stringent code of ethics policy which encompasses the following
items
• Presence of a corporate culture that seeks to create an environment where all

employees are treated equitably and with respect
• Employees must carry out their responsibilities in a professional manner at all

times. They must act in a prudent manner and must avoid situations that could
reflect unfavorably on themselves, the Bank or its customers.
• Employees must commit to the continued development of the service culture in

which the Bank consistently seeks to exceed customers’ expectations.
• Fairness, Truthfulness and Transparency govern customer relationships in

determining the transactional terms, conditions, rights and obligations.
• Employees must safeguard confidential information which may come to their

possession during the discharge of their responsibilities. Respect for customers
confidential matters, merits the same care as does the protection of the Bank’s
own affairs or other interests.

• Employees must ensure that ‘know your customer’ principles are adhered by
obtaining sufficient information about the customers to reasonably satisfy
themselves as to their reputation, standing and the nature of their business
activities.
• Employees must avoid circumstances in which their personal interest conflicts, or

may appear to conflict, with the interest of the Bank or its customers.
• Employees must never use their position in the Bank to obtain an advantage or
gain.
• Employees must not enter into an agreement, understanding or arrangement with

any competitor with respect to pricing of services, profit rates and / or marketing
policies, which may adversely affect the Bank’s business.
• Employees must not accept gifts, business entertainment or other benefits from a
customer or a supplier / vendor, which appear or may appear to compromise
commercial or business relationship.
• Employees must remain alert and vigilant with respect to frauds, thefts or illegal
activities committed within the Bank premises.
The Bank’s Philosophy
"The greatest of life's pleasures are shared"
The philosophy followed at the bank is: Corporate Responsibility for Askari Bank is
embodied by the concept of “Privileged”. What this means is that everything that the
bank must take from this society is taken as privilege, not a right. This is why the bank
believes in giving back to others who have accorded it with this “Privilege” of being a
part of this society.
Askari Bank believes in taking utmost care of its customers and society – of which we are
all part of. This is how business is conducted, and is the core of the bank’s overall
strategy to make Askari Bank the Bank of First Choice in the Region. It requires the bank
to make informed, reasoned and ethical decisions about how business is conducted, how

employees are treated and how the bank behaves towards its customers and clients and
how it acts as a corporate citizen.
Askari Bank gives key importance to accountability and transparency to build

trust and confidence among its stakeholders. The bank is committed to integrity and
considers it as most precious attributes of the organization. The competitive environment
in the banking industry is shaped by the increasing demand for accountability and
knowledge-driven economies. Therefore, the credibility and innovation are keys to value
creation. Compliance with international standards, good corporate governance and
adherence to ethical norms has become a necessity.
Askari Bank managed to manifest sustainable performance over the years in the banking
sector of Pakistan. Over the past the banking industry of Pakistan remained fraught with
financial scandals which shattered the confidence of the customers as well as
shareholders. Askari Bank while fully acknowledging the volatility and vulnerability
factor prevalent in the contemporary banking industry of Pakistan, from the time of its
inception remained fully committed to watch the security and interest of all the
stakeholders.
"Community investment is the substantial time given by our staff in supporting the work
of community organizations, whether raising money, organizing sporting or educational
events, providing business expertise or simply providing another willing pair of hands."
Askari Bank believes in giving back to society that has blessed it with an environment to
thrive in. Just like the ancestors who fought great wars so that we may live in peace and
harmony.
Askari Bank supports the community in which it operates both through the involvement
of its employees and through sponsorships. Persons with physical, sensory, or mental
impairments, that can make performing an everyday task more difficult, have special
needs. They are a part of the bank and Askari Bank enthusiastically promotes functions
organized for them.
GROWTH

"There is no sin punished more implacably by nature than the sin of resistance to
change"
Askari live in a moment of history where everything is changing so fast that

Askari begin to see the present only when it is already disappearing.
Askari customer needs are changing and their expectations are growing.
Technology is fast proliferating the distribution channels and now banking services
can be accessed from multiple contact points. Askari believe that balanced growth is
the key to survival in today's global banking environment.
From a humble beginning with just 7 branches in 1992, today Askari enjoy a
network of 73 outlets in Pakistan, spread across the country. A network of self-service
ATMs supports these outlets.
Askari total assets now exceed Rs.50.9 billion and Askari have over 17
products and services to match Askari customers' individual needs. Bank's equity base
stands at Rs. 2.58 billion with 20% growth over the last 5 years. The human resource
capital of the bank today exceeds 1,200 employees. As part of Askari growth strategy
Askari is now extending Askari banking services to the remote and rural areas.
Divisions of the Bank
International Division
International Division of the bank strives to place at the disposal of the branch
network, efficient correspondent banking arrangements on global basis. With this
attempt, it would be possible to cater to the needs of bank’s client Diaspora. This is made
possible through a variety of arrangements with various banks around the globe, which,
amongst other benefits of liaisons and linkages, ensures placement of suitable Credit lines
at bank’s disposal by the counter-party banks to facilitate Foreign Trade and Treasury
related activities.
Askari Bank today has an International Division which prides itself in multi-faceted
correspondent banking relationships with over 200 Banks in 77 countries around the
world thereby improving the capacity of Askari Bank’s branches in serving their clients.

International division of the bank has to perform another very crucial role in international
scenario - the role of making feasibilities and risk management in international front,
which has gained immense importance due to recent financial turmoil. International
Division is entrusted to arrange evaluation and approval of exposure limits favoring
various local/overseas banks and Non-banking Financial Institutions with whom the
bank’s Treasury and branches deal on day-to-day basis. Within the context comes the
Country exposure, which is managed and monitored at this division, whereas the bank’s
liaison with State Bank of Pakistan, in respect of Foreign Trade related issues, helps the
bank to provide timely directions and efficient advisory to branch network.
Optimum monitoring of business reciprocity with other banks compliments this efforts to
manage the business flows and ensure greater profitability and balanced distribution of
business amongst international correspondents.
In addition and as a part of the ongoing exercise of Know Your Customer (KYC)
compliance with regard to the foreign correspondents, International Division carries out
regular Due Diligence exercises to ensure that the bank deals only with financial
institutions that are able to meet the prescribed standards and criteria.
Major correspondents are:
• Bank of Ceylon, Colombo • Credit Suisse, Zürich
• Standard Chartered Bank, Dhaka • Danske Bank A/S, Copenhagen
• Standard Chartered Bank, Mumbai • Bayerische Hypo-und Vereinsbank

AG, Munich
• State Bank of India, New Delhi • Citibank NA, London
• MashreqBank PSC, Dubai City • Commerzbank AG, Frankfurt am
• Commonwealth Bank of Australia, • Habibsons Bank Limited, London

Sydney
• Royal Bank of Canada, Toronto • Lloyds TSB Bank plc, London
• National Westminster Bank Plc, • Standard Chartered Bank, London

London
• Standard Chartered Bank, Tokyo • National Bank of Pakistan, Tokyo
• The National Commercial Bank, • Svenska Handelsbanken AB (publ),

Jeddah Stockholm
Legal Affairs Division
This is another very important division of the bank, and is responsible for
managing all legal matters pertaining to Bank and is mainly involved in the opinion
making, addressing queries, advising on the laws applicable to Bank and other concerns
relating to carrying out of pre-contractual investigations and securitization aspects.
This area includes
• Carrying out of analysis
• Preparing research studies
• Examining, scrutinizing, drafting of documents
LAD has also to strategize legal actions and supervise implementation and ensure
compliance. Advising on legal viability of the corporate and commercial lending
agreements also falls into the ambit of LAD’s duties. More frequently LAD suggests
ways for the efficient structuring of the transactions, effecting mortgages, perfection of
securities and provides general assistance to deal with the impacts of Regulatory,
Corporate, Labour and Fiscal Legislation. Attending litigation portfolio, which includes
Recovery cases and suits filed either for or against the Bank, is also one of the core
functions of LAD.
Islamic Banking Services
With the collapse of conventional banking in West and

its ripple effects on the global financial system, Islamic
banking is claimed to be one the banking styles in the future.
Keeping pace with the future trends and ensuring sharia-

compliant banking, 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. Objective of the
bank is to put in place an efficient banking system supportive to economic justice and
welfare of society in line with Shariah standards.
A comprehensive range of Islamic Banking products and services is being 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
• 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 separately
from the Conventional Banking side. All funds obtained, invested and shared in Halal
modes & investments, under supervision of the Shariah Advisor.
Corporate & Investment Banking Group (CIBG)
Askari Bank understands the unique business requirements of its corporate and
institutional clients, and accordingly, strives to meet their expectations through the
provision of a customized, relationship based banking approach, through the Corporate
and Investment Banking Group (CIBG).
The Corporate and Investment Banking Divisions (CBD & IBD) are strongly positioned
across priority markets with a distinct strategy for developing corporate business. CIBG
is a one-window operation that provides all requisite banking services for the corporate

clientele in an efficient, dependable, consistent, and competitive manner – the objective

being to become the “bank of first call” for all financial management needs of its
corporate and institutional clients.
CIBG is specifically structured to provide dedicated banking services and products to its
corporate customers through two key divisions.
Corporate Banking Division
The Corporate Banking Division (CBD) undertakes a number of dept re-pricing swap
transactions, aimed at reducing the financial burden of its key client portfolios and also
manages advisory and loan arrangement activities. The major relationships cover
telecommunications, oil and gas, and chemicals sectors.
Investment Banking Division
The investment banking activity mainly covers, debt / capital markets, advisory services
and trading (both equities and derivatives).After the initial start-up phase, the capital
market desk, based at Karachi, increased the volume of capital market related
transactions.
The bank’s strategic framework generates sustainable returns based on strong market
presence and financial solutions ranging from debt and equity market transactions to
syndicate finance, and from transaction banking to corporate finance advisory services.
The corporate and investment banking will continue to play a major role in loan
syndications, structured financing and debt / capital raising transactions with the
objective of providing entire range of corporate and investment banking solutions to its
valued clients under one umbrella.
Human Resource Department
The Challenge ….. To bring a dream to life
When it comes to hiring and managing people, Askari Bank has a very dedicated
approach. This is also reflected in its core values. At Askari Bank, the vision is to be the
“Employer of 1st choice in the Region”.

The Financial Services industry in Pakistan particularly the Banking sector has grown
tremendously over the past few years. Growth of local private sector banks coupled with
entrance of many foreign banks into the Pakistani markets has resulted in multifaceted
career growth for the Bankers. Such a tremendous growth has also put pressure on banks
to attract and retain good employees.
Since its inception, Askari Bank is taking rapid strides in developing new businesses to
offer complete financial services to cater all clusters of customers. The bank has entered
in to new avenues and remained focused on delivering quality service to customers. The
bank humbly gives the credit for all this to none but its employees who love challenge
and excellence in everything is their passion.
Askari Bank is an empowered organization in which individuals have the knowledge,

skill, desire, and opportunity to personally succeed in a way that leads to collective
organizational success. Bank gives the employees ample opportunities to deliver, grow
and prosper. But the story has just begun as the bank has only scratched the surface of
unlimited opportunities lying in the business domain around.
The bank offers very good growth opportunities and most congenial working
environment. Askari Bank, being in its expansion phase, offers unique career
development opportunities for both young graduates as well as experienced bankers.
HR Philosophy
Askari Bank has a progressive and a dynamic human resource (HR) philosophy.
The Bank believes in transforming its human capital into a key source of competitive
advantage. There is a strong value system in place, which is driven by result orientation,
adaptability to change, humility and respect for subordinates and peers. The Bank
believes that investment in human capital is critical for achieving and sustaining growth.
The Bank’s constant endeavour is to create a performance driven work culture with focus
on employee satisfaction and retention.
Believing in the core reality that the interests of the Bank and the employees are
inseparable leads to an employee-oriented approach followed by the bank. At Askari a
‘we’ culture is found where there is mutual trust and respect for each other. Ownership

behavior is encouraged so that everyone feels responsible for the performance and
reputation of the Bank. The bank is committed to develop and enhance each employee’s
skills and capabilities through extensive in-house and external training programs and job
rotations.
Hiring and Recruitment
Finding the right person for the jobs is a huge and risky task. So a certain set of standards
are followed along with other evaluations to ensure that the best talent is attracted and
retained by the bank.
• The first item looked at is academics and college/university. An excellent

academic history and degree classification is expected of potential incumbents.
The reputation of college/university also makes one stand in good stead.
However, it is the other, extra curricular activities that set one apart from his
peers.
• The right skills, personality and work experience helps one get the role one wants
in the division of his choice / preference. One needs to make the most of his assets
and experience and think about how his knowledge, qualifications and skills fit
into the desired applicant profile.
Applying to Askari Bank
Resumes may be submitted along with profile by establishing an account and

using the website’s “Current Jobs - Apply Online Section”.
One is not required to apply for a specific position. If one does not find an opportunity
that he is interested in, he can submit his profile only by logging in and using the Online
Registration. If he chooses to apply later, his profile information will be saved.
In this way, both the candidate profile and resume are stored in the bank’s database and
becomes available to the bank’s HR Department recruiters nationwide. Once a profile is
established on the site, one is able to access the profile at any time.

Recruitment Process-Entry Level Positions
For entry level positions (OG-III/II), the recruitment process involves the following steps;
• Criteria Based initial short-listing of those who have applied. Criteria may be
Age, minimum qualification, minimum CGPA/Percentage, year of passing etc.
• Written Test
• Interviews - The interviews for entry level positions comprise of,
o Behavioral Competency Set (Communication Skills, Analytical Skills,

Initiative Taking, Learning Aptitude etc)
o Personality Traits Set
o Academic Knowledge based.
Recruitment Process - Experienced Positions
For experienced positions, besides the above areas, the interview format also includes the
Technical Skills Set, required of that specific position. This means that a candidate would
also be evaluated about his past experiences (the quality, depth & relevance with the job
etc.).
Required Skill Set
Askari Bank values commitment, teamwork, integrity, fairness and professionalism.

Generally, the bank looks for strong quantitative and analytical skills as well as good
communications and selling abilities
Qualification
The bank hires graduates from following disciplines:
• Core Banking Positions: M/Com and MA/MSc Economics for core banking
positions. Recently, the bank has also started entertaining B.Sc 4 years

(Economics/Finance) degree holders from well-reputed universities. However,

there are occasionally areas that require a more specific skill set or background
accumulated via MS/M.Phil or Masters Degree in other disciplines.
• IT and HR Positions: MIT/ equivalent for IT Division, HR specialists for HRD
• Audit: ICMA/ACCA/CA/CFA for Audit, Finance & RM, depending on the

relevance of their studies to banking and previous work experience
In addition to above mentioned specialists, Askari Bank also recruits intelligent, dynamic
and focused graduates who we feel they will be able to excel in the
Commercial/Islamic/Corporate & Investment banking field. A financial or mathematical
background is not a pre-requisite for a successful application. The comprehensive
training programs cover much of the financial knowledge required and prepare successful
banking Officers including management trainees for their careers within Askari Bank.
Compensation
Askari Bank offers a very competitive package to its valued employees. It has a mix of
financial and non-financial benefits package for employees. Askari Bank frequently
participates in salary surveys to determine its positioning within the industry. The results
of the surveys are then evaluated for enhancing / maintaining Askari’s pay position in the
market. The pay includes all types of benefits in addition to monthly pay i.e. basic salary,
house rent and utilities including fuel. Other benefits include the following:
• Medical/Hospitalization Benefit
• Leave Fare Assistance
• Staff Loans (Personal, Transport & House Building)
• Consumer Loans (at a discount) & Credit Card facilities
• End of services benefits
• Miscellaneous benefits in Executive Grades

Training and Development at Askari Bank Limited
Human Resources are the most valuable assets of a financial institution. Their
progress ensures the prosperity of the institution. Askari Bank Training and Development
programs refer to the application of structured learning activities for current and future
tasks to improve work-based performance to achieve business goals and objectives
effectively and efficiently.
Askari emphasizes much on Training and Development of employees and based it on the
conviction that individual as well as organization growth and development respectively,
are interdependent and that each one, complements the other. Askari Bank is committed
to provide on-the-job trainings and development facilities to its staff members. The
Management makes very effort to match staff member’s skills, competencies and abilities
according to the job requirements.
The objectives of training and development programs are to enhance and improve the
capabilities, efficiency, and productivity of an employee up to the desired standards for
current and future assignments and responsibilities.
Askari Bank encourages employees to develop their professional skills by taking

advantage of both internal and external training opportunities. The bank focuses on
providing opportunities and facilitating its executives and officers for developing their
managerial and leadership skills through management development programs for present
and future responsibilities.
Training Centers
The bank has its own specialized in-house training facilities in the shape of Training
Academies. These are situated in the following cities
• Rawalpindi
• Lahore

The Training Academies of the Bank are equipped with modern state of the art facilities
and are responsible for imparting multi-functional high quality trainings to all staff
members in the following areas:
• Business Development
o Customer Service
o Liabilities Management
o Asset Development
o Consumer Finance
• Commercial Banking
o General Banking
o Foreign Trade
o Credit Management
o Credit Administration
o Risk Management
o Consumer Banking
• Soft Skills
o Effective Communication Skills
o Negotiation Skills
o Team Building
o Selling Skill
o Customer Care
Other Professional Courses

The employees of Askari Bank are also sent to attend specialized courses by
various banking /non-banking training institutes.
Career for Women
Askari Bank is an Equal Opportunity Employer and jobs are offered on the basis
of skills and expertise categorically. There are women working at all level positions
throughout the Bank.
Opportunities for International Exposure
Presently, the bank has one OBU at Bahrain, where Pakistani nationals have been
posted. With a vision to become bank of first choice in the Region, Askari Bank plans to
enter in to International Markets in near future that will create multiple opportunities for
local Askarians to grow globally.
Job Rotation
At Askari, banking is not one specific service or function. It is an umbrella term

for a range of financial activities. At Askari Bank these activities are grouped into
divisions/offices and branches, each of which offer different opportunities for graduates
depending on your qualifications, skills, and career aspirations. Jobs are accordingly
offered on the basis of incumbents’ aptitude. Also, there is sufficient job rotation to let
the employees chose their best area of interest and to keep growing with it.
Internships
Though Askari Bank offer internship programs round the year, majority of these
programs spread over six to twelve weeks, are conducted between June and September
during summer semester breaks for most colleges/universities.
Career Ladder
Askari Bank values performances. There is an objective system of performance
evaluation based on Management by Objectives and Behavioral Competencies. The
system allows for mid-year reviews and is 100% open to appraise. A jobholder is
therefore secured in terms of career progression if the desired performance levels are

achieved. Also, since Askari Bank is in its expansion phase, more and more jobs are
created at all levels providing opportunities for current jobholders as well as external
candidates. Promotions are also not time bound.
MANAGEMENT STYLES
Categories of Management Styles

There are three main categories of management styles:
• Autocratic
• Paternalistic
• Democratic
Autocratic (Or Authoritarian) Style

These managers like to make all the important decisions and closely supervise and
control workers. Managers do not trust workers and simply give orders (one-way
communication) that they expect to be obeyed. This approach has some limitations as
well but it can be effective in certain situations. For example:
• When quick decisions are needed in a company (e.g. in a time of crises)
• When controlling large numbers of low skilled workers.
Paternalistic Style & Laissez-Faire

These managers give more attention to the social needs and views of their
workers. Managers are interested in how happy workers feel and in many ways they act
as a father figure (pater means father in Latin). They consult employees over issues and
listen to their feedback or opinions. The manager will however make the actual decisions
(in the best interests of the workers) as they believe the staff still needs direction and in
this way it is still somewhat of an autocratic approach.
Democratic Style
This style of management will put trust in employees and encourage them to
make decisions. They will delegate to them the authority to perform their tasks

(empowerment) and listen to their advice. This requires good two-way communication
and often involves democratic discussion groups, which can offer useful suggestions and
ideas. These managers must be willing to encourage leadership skills in subordinates.
The ultimate democratic system occurs when decisions are made based on the majority
view of all workers. However, this is not feasible for the majority of decisions taken by a
business- indeed one of the criticisms of this style is that it can take longer to reach a
decision.
 As banking company is involved in high risk and law compliance business,
democratic and laissez-faire styles find less room. There are manuals and
directions made for each and every step to be done so the style can generally be
regarded as Authoritative. However, at branch level and for non-financial issues
like setup of branch, democratic style is usually followed by branch manager. But
this again varies from person to person. Overall, Askari Bank has a culture of
discipline accompanied with feedback.

PRODUCT AND SERVICES
The product & services of askari commercial bank limited are developed keeping
in view the customers needs & wants, & the expectation that the customer attaches with
its financial institutions.
A product ACBL includes all those services which customer normally required for
effectively managing his business.
ACBL offers the following financial services to its customers.
1) Deposits
2) Advances
3) Products
1) DEPOSITS
One of the basic functions of commercial banking is to receive deposits. ACBL

accepts deposits in both local & foreign currency.
2. ADVANCES
Advances are major sources of earning of income for commercial banks. Banks
attracts surplus balances from the customers at low interest rates & makes advances at
higher interest rates to the individuals or business firms.
ACBL offer these facilities in two forms:
• Funded facilities
• Non- Funded facilities

Funded facilities
In funded facilities the bank actually advances money against further repayment. These
facilities are known as cash credits.
Non- Funded facilities
Non- Funded facilities are those in which bank substitutes its own credit for its
customers.
ACBL offers to its customers are large number of non-funded facilities.
These facilities include:
1. Letter of Guarantee
2. Letter of credit
 Irrevocable letter of credit
 Revocable letter of credit
 Sight letter of credit
 Usance letter of credit
3. PRODUCTS
PERSONAL FINANCE
Personal Finance is a parameter driven product for catering to the needs of the general
public belonging to different segments. One can avail unlimited opportunities through
Askari Bank's Personal Finance. With unmatched finance features in terms of loan
amount, payback period and most affordable monthly installments, Askari Bank's
Personal Finance makes sure that one gets the most out of his/her loan.
MORTGAGE FINANCE
Askari "Mortgage Finance" offers the convenience of owning a house of choice, while
living in it at its rental value. The installment plan has carefully designed to suit both the
budget & accommodation requirements. It has been designed for enhancing financing

facility initially for employees of corporate companies for purchase/ construction/

renovation of house. The maximum financing amount is Rs. 10 million with repayment
tenure up to 20 years.
BUSINESS FINANCE
In pursuance of the National objectives to review the economy of the country, ACBL is
providing loans to small and medium size business enterprises under Askari Bank's
Business Finance Scheme. Their goal is to offer a loan, which enables business
community to receive the financing required by them based on their cash flows.
ASKCAR (Car Finance)

Yet another of Askari’s products, Askar offers the most convenient and affordable
vehicle- financing scheme, which provides its valuable customers an opportunity to own
a brand new vehicle of their choice. With minimum down payment, lowest insurance
rates and widest range of available car makes and models, Askcar offers the best value to
its esteemed customers.
ASKCARD
ASKCARD means freedom, comfort, convenience and security, so that you can have
retail transactions with complete peace of mind. ASKCARD 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.
TRAVELLER CHEQUES
"Your Best Traveling Companion"
The range of our products and value added services enhances with introduction of Rupee
Travellers Cheques (RTCs) launched in March 2002.

ASKPOWER
Askpower represents a useful tool with which to make secure payments without the need
to have any account, a debit or credit card. This card comes with a number of unique
features and diversified usage capabilities like cash withdrawal from ATMs, payment of
utility bills through ATMs and internet Banking, transfer of balance to another card and
refill option. The prepaid card is enjoying a great success all over the country.
VALUE PLUS
The first liability product launched by this unit is showing a remarkable acceptability in
the market. The growth of this product is witnessed by its share, which has presently
reached at Rs. 1,079 Million even after lowering down the profit rates due to sufficient
liquidity in the market.
ASKARI MASTER CARD
Features of Askari Master Card
NO JOINING FEE
When you successfully apply for an Askari MasterCard, we will not charge you any
Joining Fee. It’s almost like you are getting it for FREE!
GLOBAL ACCEPTABILITY
Your card provides you with service at thousands of locations in Pakistan, and at over 23
million establishments worldwide. As an added convenience, you will have the benefit of
receiving your monthly billing in Pak Rupees, regardless of the currency of purchase.
Think of the freedom this gives you!
24-HOUR CUSTOMER SERVICE

With Askari MasterCard, you are always a phone call away from the assistance you need.
To speak to one of our friendly Customer Service representatives, please call our UAN
111-000-787 for Karachi, Lahore or Rawalpindi/ Islamabad.
LOW SERVICE CHARGES

Askari MasterCard provides you the experience of revolving your spending at

comparatively low service charges. In addition, the same rate also applies to cash
advance obtained on your Askari MasterCard.
ZERO LOSS LIABILITY

Please report loss or theft of your Askari MasterCard immediately at our Customer
Services UAN 111-000-787 for Karachi, Lahore and Rawalpindi/Islamabad. Once you
have registered the loss of your credit card, your liability against its fraudulent use will be
limited and we will send a replacement card within 48 hours of reporting.
SUPPLEMENTARY CARDS FOR YOUR LOVED ONES

Save yourself the inconvenience of applying for a separate Askari MasterCard for your
loved ones by requesting supplementary cards when you apply for your own card. You
will receive a consolidated monthly account statement, which covers all the cards. This
offer is available for your loved ones over 18 years of age.
CASH ADVANCE FACILITY

Cash advance facility is available for Askari MasterCard holders. You can get up to 80%
of your sanctioned credit limit as cash advance in Pakistan or anywhere else in the world.
The facility is available at all ATMs displaying the Cirrus logo around the world and in
Pakistan. You may also avail this facility at designated branches of Askari Commercial
Bank, during banking hours.
BALANCE TRANSFER FACILITY

With Askari MasterCard, you can avail an incredible offer of a Balance Transfer at the
exclusive rate of just 1.5%* per month.
A special privilege exclusively for Askari MasterCard members
FREE TRAVEL INSURANCE

Just purchase your travel tickets on Askari MasterCard and you are automatically covered
under our Travel Insurance Plan (in case of personal accident resulting in death or
permanent disablement) for up to Rs.8,000,000/- on a Gold Card and Rs.4,000,000/- on a
Silver Card.
STRESS FREE TRAVELLING

When you purchase your airline tickets for international travel on Askari MasterCard you
get:
 · UPto * Rs.10,000 insurance cover for flight delays exceeding 6 hours.
 · Upto* Rs.10,000 insurance cover for baggage delays exceeding 6 hours.
 · Upto* Rs.20,000 as baggage loss claim.
(*Certain conditions apply)
COMPLIMENTARY CIP & RAWAL LOUNGE FACILITIES

The next time you travel internationally, be a privileged guest at the CIP lounge of
Quaid-e-Azam International Airport, Karachi and RAWAL Lounge of Islamabad
International Airport. Your Askari MasterCard entitles you to a host of Complimentary
services like;
 Snacks and Beverages
 Free Internet, phone and fax facilities
 Newspapers and magazines
 Flight details information
 Cellular phone charger connections
So, no matter where you are going, you are always assured of a red carpet welcome.
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.
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 investor can double his 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 the
principal amount in full at the end of the tenure.
Askari Deposit Multiplier Account
“Value of initial investment of Rs. 100,000/- will increase to Rs. 265,000/- at

maturity!”
Askari enables the consumer class to aim higher with their 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.
OTHER PRODUCTS
Internet Banking Services
In pursuance of its quest to provide the most modern service to its

customers, Askari Bank offers banking through internet. Askari Bank is the first

bank in Pakistan to provide such service to its valued customers which is

absolutely FREE.
Electronic Bill Payment Services
Askari bank achieves another milestone by adding electronic bill payment

service to its range of products. It has always been the bank’s endeavor to
introduce products and services tailor made to the requirements of its valued
customers.
Agriculture Finance Products
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. Askari bank offers the following agricultural
facilities:
Askari Kissan Agriculture Finance Program
Kissan Ever Green Finance
Kissan Tractor Finance
Kissan Aabpashi Finance
Kissan Live Stock Development Finance
Kissan Farm Transport Finance
Kissan Farm Mechanization Finance

Pricing Policies
Banks do not have much discretion when it comes to major part of pricing their
policies, as they themselves get funds from SBP and general masses, and there are
established economic principles that govern how the mechanism of fixing the mark-up
rates. (The price of bank’s products)
Lending rates are KIBOR linked and spread is the income of the bank. But
increased competition has limited bank’s ability to earn excessive profits in this way.
However, banks do charge for the services they provide, for example, remittances.
Lending Products
Personal Finance
Upto 3 Years 18%
Upto 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.
13% to 15%
Auto Financing

OTHER PRICES I.E. BANK CHARGES ARE MENTIONED IN ANNEXURE.
Distribution Policies
WHEN IT COMES TO DISTRIBUTION CHANNEL OF A BANK, WE HAVE TO SEE HOW VAST AND
EXTENSIVE THE BRANCH NETWORK OF THE BANK IS.

YELLOW SOUTH
LIGHT BLUE CENTRAL
DARK BLUE NORTH
ASKARI BANK HAS A FAIRLY WIDE AND LARGE BRANCH NETWORK ALL OVER THE COUNTRY, EXCEPT FOR
BALOCHISTAN. BUT THAT IS QUITE JUSTIFIED AS ECONOMIC ACTIVITY IS LESS IN THAT REGION.
ALSO, THE BANK HAS SHOWN A GOOD RATE OF INCREASE IN NUMBER OF BRANCHES, AND THAT IS
HEALTHY SIGN AND CAN BE USED TO PREDICT THAT ASKARI BANK WILL CONTINUE THE SAME PACE
(AS 55 BRANCHES WERE OPENED IN 2008). HOWEVER, IT STILL HAS TO ENHANCE ITS OUTREACH IN
RURAL AREAS AS THEY OFFER AN UNTAPPED SECTOR OF CREDIT ADVANCEMENT.
Promotional Policies
FOLLOWING ARE SOME OF THE MEANS OF PROMOTION AT ASKARI BANK:
 Brochures
 Sponsorships
 TV Commercials
 Special Efforts for Privileged and Valued customers (Mailing them about new
promotions, through postal mail or e-mail)
 Tele marketing

FINANCIAL ANALYSIS
Economy of Pakistan has seen one of the worst scenarios ever in the last two
years. Global financial crisis had a trickle down effect on the Pakistan’s economy.
Although it is believed by most of the experts that the financial sector of Pakistan was
saved from the impacts of the financial crunch in the global markets due to lack of
financial linkages, second round effects of a global slowdown of economy cannot be
ignored. With economic activity slowing down worldwide, and certain domestic issues at
home, banking sector has faced tough times in the last year despite excellent growth in
the earlier half of 2009.
OBJECTIVES OF FINANCIAL STSEMENTS
“Financial statements are like a firm perfume – to be sniffed but not to be

swallowed.” (Abraham Brillof)
The firm itself and outside providers of capital – creditors, and investors – all take benefit
from the firm’s financial statements. The type of analysis varies according to the specific
interest of the party involved. Similarly objectives of the financial statements analysis
vary from person to person.
 Trade creditors are primarily interested in the liquidity of the firm. Their claims
are short terms, and the ability of the firm to pay their claims quickly is best
judged by an analysis of the firm’s liquidity.
 Bondholders are more interested in the cash flow ability of the firm to service a
debt over a long period of time. They may evaluate their ability by analyzing the
capital statement of the firm.


 Investors usually focus on the profitability of the firm. They would be concerned
with the financial conditions insofar as its affects the ability of the firm to pay
dividends and avoid bankruptcy.
 Management employees financial analysis for the purpose of internal control and
to better provide what capital suppliers seek in financial conditions and
performance from the firm
 Management needs to undertake the financial analysis in order to plan and control
effectively.
 Financial ratios are the tools, which are used to analyze the financial conditions
and performances.
 Finally, financial statement analysis deals with the outcomes of the past decisions
and leads to the future planning.

Horizontal Analysis
Income Statement- Horizontal Analysis
All values in Million Rupees

Balance Sheet – Horizontal Analysis
(All values in Million Rupees)

Vertical Analysis
Income Statement- Vertical Analysis

Balance Sheet- Vertical Analysis

Balance Sheet Growth
180
160
140
120
100
Advances
80
Deposits
60
40
20
0
2003 2004 2005 2006 2007 2008
Balance sheet items, i.e. Advances and Deposits have been following an upward
trend since 2003 and even before that. That refers to increased lending activity and
deposit attraction by the bank, which is quite a case as Askari Bank is in growth stage. It
is in the phase of opening new branches, attracting deposits, lending comes along as a
natural other side of the coin. It is commendable that Askari bank has been able to
manifest deposit growth in the face on intense competition and decreased economic
activity.

Ratio Analysis
Ratio analysis is an important and age-old technique of financial analysis. However, the
ratios are only indicators, they cannot be taken as final regarding good or bad financial
position of the business other things have also to be seen.
Banks ratios analysis is some what different from the ratio analysis of manufacturing
concerns, as there are no sales, purchases, inventory, CGS, accounts receivable, accounts
payable etc. Therefore each bank has developed its own set of ratios for analysis. The
objective of ratio analysis is to evaluate the position of business with respect to its
liquidity, profitability, debts, capital adequacy and market. Most commonly used ratios in
banking sector can be divided into following five main categories:
Ratios and Their Analysis

 Liquidity Ratios
 Profitability Ratios
 Debt Ratios
 Capital Adequacy Ratios
 Market Ratios

Liquidity Ratios
The liquidity of a firm is measured by its ability to satisfy its short term obligations as
they come due. Liquidity refers to the solvency of the firm’s overall financial position.
1. Advances to Deposits Ratio

Advances
Formula =
Total Deposits
2008 = 128,818,242 = 0.7682 = 76.82%

167,676,572
2007 = 100,780,162 = 0.7046 = 70.46%

143,036,707
2006 = 99,179,372 = 0.7523 = 75.23%

131,839,283
Graphical Presentation
80
percentage
75
70
65
2006 2007 2008
years
Interpretation
This ratio demonstrates the degree to which bank has already used up its available
resources to accommodate the credit needs of its customers. This ratio is a
comparison of funds generation and its funds mobilization. It indicates the total loans

sanctioned by the bank in relation to total amount of money deposited with the bank.
In 2007 it was 70.45% and in 2008 it is 76.82%.This shows that the bank has
improved its potential to advance additional loans.
2. Due from Banks to Total Assets Ratio
Due from banks

Formula =
Total Assets
2008 = 4,479,754 = 0.02172 = 2.172%

206,191,138
2007 = 14,444,143 = 0.0792 = 7.92%

182,171,885
2006 = 8,392,950 = 0.0505 = 5.05%

166,033,588
percentage 10
0
2006 2007 2008
years
Interpretation
This ratio is an indication of Askari Bank’s funds management policies. Financing to the
banks is the most secure way of lending. In the year 2006 this ratio is satisfactory but in
2007 it has increased up to its maximum, up till now as this was never before in the
History of Askari Bank. The situation was very much in favor of the Bank, since bank’s

advances have been increased. But in 2008 it has reduced to 2.172%, which indicate that
bank's advances have been decreased. This needs a lot of improvement.
3. Due from Banks to Due to Banks Ratio
Due from banks

Formula =
Due to banks
2008 = 4,479,754 = 0.2949 = 29.49%

15,190,148
2007 = 14,444,143 = 0.8228 = 82.29%

17,553,525
2006 = 8,392,950 = 0.5608 = 56.08%

14,964,087
percentage 100
50
0
2006 2007 2008
years
Interpretation
This ratio is an indicator of the relationship between what the bank owes from other
banks and what is due to it. In 2006 position became unfavorable and the year 2007 the
situation is again very favorable. This indicates a reduction risk. In the phase of economic
instability, the bank’s management had efficient to assess the risk involved in lending and

they had control this ratio up to an extent and they are doing well needs to be improved.
But in 2008 this ratio is 29.47 %, which is again a decline, showing the fact that the bank
has to receive fewer funds from the financial institutions and has to pay more. This ratio
needs a lot of improvement.
4. Due to Banks to Total Deposits Ratio
Due to banks
Formula =
Total Deposits
2008 = 15,190,148 = 0.0905 = 9.05%

167,676,572
2007 = 17,553,525 = 0.1227 = 12.27%

143,036,707
2006 = 14,694,087 = 0.1115 = 11.15%

131,839,283
15
percentage
10
0
2006 2007 2008
years
Interpretation

This ratio is an indicator of the proportion of the lending from the financial institutions in
relation to the total funds raised by the bank in the form of deposits.
This ratio for Askari Bank is 9.05% in the year 2008. There has been a significant decline
in this ratio as previously the bank depended slightly more on the borrowings from
financial institutions. It shows that the bank is concentrating on raising funds from
depositors and trying to rely less on the borrowed funds. It is a favorable indication in the
sense that the bank has large potential to ask for borrowed funds in the phase of tight
liquidity position. Further more, it shows the efficiency of the marketing department to
have created so much of deposits that the bank does not need to look at the financial
institutions for help in improving its liquidity position. There is another favorable aspect
of this declining tendency. The rate of interest offered to the depositors is very low in
comparison with the interest to be paid to the financial institutions for their funds. A
decline in this ratio means less mark up burden on the bank resulting in less financial risk
for the bank. This ratio has decreased as compared to the previous year.
PROFITABILITY RATIOS
The continued viability of any bank depends on its ability to earn an appropriate
return on its assets and capital. Good profitability performance enables a bank to expand
it operations and remain competitive in the market. There a many measures of a bank’s
profitability. Some of these are stated below:
1. Return on Total Assets
Profit after Tax

Formula =
Total Assets
2008 = 386,225 = 0.00187 = 0.187%

206,191,138

2007 = 2,681,012 = 0.014 = 1.47%

182,171,885
2006 = 2,249,974 = 0.0136 = 1.36%

166,033,588
percentage 2
1.5
1
0.5
0
2006 2007 2008
years
Interpretation
This ratio indicates the profit earned by the bank on the resources employed. As far as
Askari Bank is concerned, there is an increase in the utilization of the resources. In 2007
it keeps on increasing from the previous year, but in 2008 this ratio has decreased to
0.187.This shows that management needs an immediate attention.
2. Return on Deposits
Profit after Tax

Formula =
Total Deposits
2008 = 386,225 = 0.002303 = 0.23%

167,676,572
2007 = 2,681,012 = 0.018 = 1.87%

143,036,707

2006 = 2,249,974 = 0.017 = 1.71%

131,839,283
percentage 2
1.5
1
0.5
0
2006 2007 2008
years
Interpretation
This ratio indicates to what extent deposits which represent funds mobilization on the
part of the bank, contribute towards income generation. In 2007 it is increasing. But in
2008, it has declined to 0.23 %, which is an indicator that deposits have not been
efficiently utilizing by the Bank.
3. Earning per Share
Profit after Tax

Formula =
No. of outstanding Shares
2008 = 386,225 = Rs. 0.95

405,877
2007 = 2,681,012 = Rs. 8.91

300,649
2006 = 2,249,974 = Rs. 11.23

200,433

25
Rupees
20
15
10
5
0
2006 2007 2008
years
Interpretation
The earning per share of Askari Bank is quite satisfactory in 2006 but it declined in 2007
and it is keep on declining till 2008, management has to take in to account this issue and
must increase its EPS.
DEBT RATIOS
The debt position of a firm indicates the amount of other people’s money being used to
generate profits. In general, the financial analyst is most concerned with long-term debt,
because these commit the firm to a stream of payments over the long run. Commonly
used debts ratios include debt ratio and times interest earned ration.
Debt Ratio
Total Liabilities
Formula =
Total Assets
2008 = 193,219,775 = 0.9370 = 93.70%

206,191,138

2007 = 169,905,898 = 0.9326 = 93.27%

182,171,885
2006 = 154,980,358 = 0.9334 = 93.34%

166,033,588
Percentage 100
80
60
40
20
0
2006 2007 2008
years
Interpretation
The debt ratio measures the proportion of total assets financed by the firm’s creditors.
The higher this ratio, the greater the amount of other people’s money being used to
generate profits. As far as Askari Bank is concerned the situation is quite interesting
because it has very high debt ratio since past 3 years. This also shows the bank’s higher
degree of indebtedness.
2. Interest Coverage Ratio
Profit before Interest and Tax

Formula =
Interest Expenses
2008 = 6,376,997 = 1.07 times

5,915,615

2007 = 7,101,372 = 1.48 times

4,801,587
2006 = 6,630,349 = 2.02 times

3,283,494
Times Interest 3
Earned
2
1
0
2006 2007 2008
years
Interpretation
This ratio shows whether the bank is earning enough profit before mark up charges to be
paid to the financiers. The above figures indicate the bank’s ability to cover its interest
payments. Now it is less than 2 times, which means that bank is not earning as much as
its interest obligations.
Capital Adequacy Ratios
These ratios measure the extent of capital funds used by the banks for financing their
resources. Most commonly used capital adequacy ratio is capital fund to total assets ratio.
1. Capital Fund to Total Assets Ratio
Capital Fund
Formula =
Total Assets

2008 = 12,034,895 = 0.058 = 5.83 %

206,191,138
2007 = 12,099,645 = 0.0664 = 6.64%

182,171,885
2006 = 9,619,066 = 0.0579 = 5.79%

166,033,588
percentage 6
5.9
5.8
5.7
5.6
2006 2007 2008
years
Interpretation
This ratio takes into account the extent of the funds employed by the bank in the total
assets as shown in the balance sheet. It keeps on increasing in 2007 it is 6.64% which is
the highest. This means that more and more of capital funds are being utilized by the
bank for raising the assets.

Market Ratios
Market ratios relate the firm’s market value as measured by its current share prices, to
certain accounting values. Most commonly used market ratios are price/earning (P/E)
ratio and market/book (M/B) ratio.
Market / Book Ratio
Market Price per Share

Formula =
Book Value per Share
2008 = 14.57 = 1.457

10
2007 = 99.75 = 2.19

45.60
2006 = 104.95 = 2.23

47.00
M/B Ratio 3
2
1
0
2006 2007 2008
years

Interpretation
This ratio provides an assessment of how investors view the firm’s performance. In 2007
it has decreased to 2.19 but still fair enough But in 2008 ,it has decreased to 1.457 which
means that investors are currently paying Rs. 1.457 for each Rs. 1 of book value of
Askari’s share.
Future Outlook
Pakistan’s banking industry has tremendous potential for further investment in the
financial sector of the country. Continued interest of international investors in the
banking industry of Pakistan is a good omen and it reflects the immense potential of the
country, specifically in the financial sector.
“Given the current economic scenario, where we are faced with many difficulties, it
is comforting to see expansion in the financial sector, which is a manifestation of
confidence of foreign investors.3”
Development in the financial sector over the years has led to increased competition,
product offerings, and diversification of business activities which, in turn, not only
benefited local consumers but financial institutions as well. Although Pakistani banks
showed great resilience in face of global financial turmoil, there is still a lot to be done.
Banks should expand their outreach to serve vast un banked areas of the country, and
develop consumer friendly products that benefit the ultimate consumer as well as
corporate sector both.
3
Saleem Raza, Governer, SBP, April 15, 2009

INTERNSHIP ACTIVITIES
Askari Bank Johar Town Branch
During my internship, I was rotated in the following departments:
• Account Opening
• Lockers and ATM
• Remittances
• Credits
• Foreign Trade
Following is description of what I have learnt and observed in the general banking
procedures.

ACCOUNT OPENING DEPARTMENT
Borrowing funds from different sources has become an essential feature of today’s
business enterprises. But in the case of a bank borrowing funds from outside parties is all
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.
Functions of Account Opening Department
• Providing account opening form according to the customer's requirements,

• Guide the customer about the requirements of the account opening and form
filling,
• Check the forms whether they are correctly completed or not,
• Stamping on the form,
• Maintaining account opening register,
• Pasting of forms in register after release from general banking in charge,
• Issuance of cheque books,
• Issuance of accounts maintenance certificate,
• Closure of account
• Verification of signature in case of cheque presented before releasing of account
opening from SS card is not yet scanned

TYPES OF ACCOUNTS
In ACBL, there are the following types of accounts:
 Current Account.
 PLS saving account.
 Askari Special Deposit Account.
 Askari Bachat Certificate.
 Notice Deposit.
 Term Deposit.
 Asakri Faida account
 Value plus saving account
Current account
It is mainly opened for business purpose for making/receiving day-to-day payments. It is
also called chequing account because cheques can be drawn on it to the extent of balance
in the account.
 Open with a minimum amount of Rs. 5,000.
 No minimum balance requirement.
 No profit is given on this type of account.
PLS Saving account

This type of account carries a rate of profit with it.
 Profit is announced semiannually.
 The profit is subject to 10%.
 This account is subject to the deduction of Zakat.
 Open with a minimum balance of Rs. 10,000.
 A minimum balance of Rs. 10,000 is required to be maintained and in case of
default there is a penalty of Rs. 100 per month.

Return on saving accounts is applied on the basis of minimum balances held every month
during the relevant half year.
Askari special deposit accountant (ASDA ACCOUNT)

ASDA account is an interest bearing current account interest is paid on it at the
rate of 8.00% with the minimum balance from Rs.50000 Million to Rs.50000. The
payment of return is monthly, where as the rate of return with aspect to the amount of
minimum deposit clear from deposit schedules in annexure. It is also chequing account
because cheques can be drawn on it. It is necessary for this account that the client must
maintain a minimum balance of Rs.50000 at the end of the month, otherwise no interest
is paid.
Askari bachat certificate

ABCs are long term fixed deposit for 3 and 5 years. These are not term deposits
because payment of return is on monthly basis rather than on maturity of deposits. The
minimum balance requirement is Rs.25000/- and maximum balance requirement is Rs.1.0
million. If ABC is for 3 years, the rate of return for 3 years is 12%; if ABC is for 5 years
the rate of return is 13.00%. Because in such account the balance is kept for either ‘3’ or
‘5’ years within the bank no cheque is drawn on it. That’s is why it is not a chequing
account, but only payment of return is made monthly.
Notice deposits
Notice deposits are kind of fixed deposits. The minimum balance requirement for
opening the account is Rs.5000/- and payment is drawn on maturity of the specific
period. Notice deposit is of the two kinds:
 One for which a prior notice of 30 days and above is required from the
customer before with drawing deposited amount and for which rate of return
is 8%.
 Second for which a prior notice of 30 days and above is required from the
customer before with drawing the deposited amount and for which rate of
return is 10%.

Term deposits
A term deposit is a deposit that is made for a certain periods of time. At the end of
the specific period, the customer is allowed to with draw the principle amount.
ACBL term deposits are of types clear in the deposit scheme in the Annexure.
One of them is “Askari” Advantage one month. The rate of return on this account is
12.0% for 4 years.
The term deposit account varies from one month to 5 years, and the minimum
balance requirement is Rs.5000/- for all other nine accounts.
Account Codes & their Description:

 Branch Code(Johar Town, LHR) 0100
 Current Deposit 01010
 Askari Special Deposit Account 01650
 Saving Deposit 01100
 Value Plus 03200
 Basic Bank Account 01700
There are various parts of an account number of different accounts these are as
follows: say an account number is 01000101100035-9 here 0100 is the Branch Code,
Then the next 01 shows the Pakistan Currency, Then 0110 is the account type this is
saving account, Then 035 is the account number, Then 9 last digit is computer
generated figure.
Account opening procedure
For the chequing accounts (C/A, ASDA, SAVING), there are different types of
account holders are required for all these types of account holders. The operation /
procedure requirement that is needed for “Individual Account” differ greatly from “Joint
Account” Proprietorship “Partnership”, “Limited Company” and “Club Society or
Association” as explained below.

INDIVIDUAL ACCOUNT
When a single man or woman opens an account in his/her own name and has the
right to operate it is called individual account.
Documentation
For literate person copy of National Identity Card is required as a primary
requirement. For illiterate person and Pardanashin Woman, along with the copy of
National Identity Card requirement he or she must come in person for opening the
account.
JOINT ACCOUNT
When two or more persons, neither partners, nor trustees, open an in their name is
called joint account. Joint account can be opened by husband and wife or two persons of
same sex.
Documentation
For joint account copy of N-I-C Card of all the persons is obtained other things
remaining same as in individuals account.
PROPRIETORSHIP ACCOUNT
When the owner of the firm operating singly, opens an account in his firm name
of when an owner of a firm operating singly, opens an account in his firm name, this
account is called a proprietorship account proper himself liable for all his acts.
Documentation
For this kind of account, an application for opening the account on the firm letter
– pad (having the firm name) is required along with the N-I-C Card of proprietor.
PARTNER SHIP ACCOUNT

The account is opened in the firm name and all partners designate one or two
persons to act on behalf of the partnership firm all acts on behalf of firm. The partners in
the partnership firm are liable for the acts of the firm jointly and severely. Every partner

has in a firm has an implied authority bind his co. partners by drawing and enclosed
cheques.
OPERATION
All other requirement remain same except that the form is dully signed by all
partners cards are signed by all those partners who will act on behalf of the firm,
LIMITED COMPANY ACCOUNT
Documentation
 Memorandum of associations.
 Articles if the association.
 Resolution of the Board of Directors.
 Certificate of incorporation.
 Certificate of commencement of business.
 N.I.C.
OPERATION
The person authorized in the resolution of the Board of Directors put their
signature on SS Cards.
Next of Kin requirement is not need in case of a limited company.
After completing all these formalities,customer signatures are admitted by
stamping “Admitted” near signatures and again signatures on SS card are admitted in the
same way. The same process of verification and admission of signature is repeated on the
form-A and signature on next of Kin area.
After completing each and every formalities, are signed by all those partners who
will act on behalf of the firm..
LETTER OF THANKS
At the start of the 2nd day, ACBL issues letter of thanks to “Account opener” for
the trust the have on ACBL.

STAMPING “POSTED”
After completing all this process, the forms are signed from manages of the
branch after which they forms are stamped across as “POSTED” on one corner of the
front side of the form. Then they are posted in the respective. “Account opening file”
very next day chequebook is issued to the customer.
OTHER RESPONSIBILITIES OF ACCOUNT OPENING DEPARTMENT
Cheque-book issuing
Check books are issued only for chequing account such as current account, saving
account and ASDA account. They are not issued for other fixed and term deposits
because of their long term accounts “nature”.
When an account is opened, cheque-book is usually issued the next day, however
they too are issued on the same day of opening the account keeping in view the energy
requirements the account holder and after that cheque-books are issued whenever
customer need cheque-books.
Cheque-books leaves varies with the nature of the account. For example, 25
leaves and 50 leaves chequebook are issued for current and ASDA accounts. Where as 10
leaves and 25 leaves chequebook are for saving accounts.
In ACBL, the fact behind issuing current and ASDA and 50 leaves for and 10
leaves and 25 leaves for saving accounts is the SEP requirement which is of the view
that, because current and ASDA accounts are for business transactions purposes, there
fore they need more leaves cheque-book. Each leaf of cheque book costs 6 rupees.
Issuing procedure
Firstly, signatures on chequebook requisition are verified by matching with
signatures on SS Cards.
Secondly, cheque book leaves number, account number, account holders’ name
are mentioned in the cheque book.
Thirdly, the name of A/c holder and date of cheque book issuance is written on
cheque book requisition the account opening officer puts his initials on requisition leave.

Fourthly5, A/c number is stamped over the leaves of cheque book and finally
authorized person affix his signature over the debit voucher and he voucher is attached
from the cheque book and is handed over to the customer.
Receiving inward checks

Another responsibility and function of account opening department is to receive
inward cheques for collection of other banks as well as of ACBL. Then these cheques are
sent to clearing official who clears these checks at SBP from other banks.
Account closing
Account is closed on the written request of the customer. The account holder
withdraws the amount by writing a cheque. But to surrender the chequebook yet if some
leaves are yet to be write to the bank as a necessary requirements for closing the account.
Everyday posting
At the end of each day, posting of cheque books is performed, the account
department OG3 or OG2 makes credit vouchers of excise duty and provincial tax on
cheque book leaves, and posts it in the company.
Rate of Return on Different Accounts:

The features and rates of return on various types of deposits are given in the following
table.
Type of Account Profit Rate Payment of

% p.a. Return
Saving Accounts
Up to Rs. 9,999 0.00 After Six Months
Rs. 10,000 to Rs. 24,999 2.50 After Six Months
Rs. 1,000,000 and above 4.00 After Six Months
Askari Special Deposit Account
Rs. 50,000 to Rs. 999,999 1.50 Monthly
Rs. 1,000,000 to Rs. 4,999,999 2.00 Monthly

Rs. 5,000,000 to Rs. 19,999,999 2.50 Monthly

Rs. 20,000,000 to Rs. 99,999,999 2.75 Monthly
Rs. 100,000,000 and above 3.00 Monthly
Value Plus Saving Account
Rs. 10,000 to Rs. 24,999 2.50 Monthly
Rs. 25,000 and above 3.00 Monthly
Notice Deposit
7 days 2.00 Maturity
29 days 3.00 Maturity
Term Deposit
One Month 4.00 Maturity
Two Months 4.50 Maturity
Three Months 5.00 Maturity
Six Months 5.50 Maturity
1 year 6.00 Maturity
2 Years 7.00 Maturity
3 Years 8.00 Maturity
5 Years and above 9.00 Maturity
Askari Bachat Certificate
3 Years 7.00 Monthly
5 Years 8.00 Monthly
Askari Advantage (TDR) Min. Rs. 100,000
One Month 4.00 Maturity
Value Plus Time Deposit Min. Rs. 25,000
Three Months 5.00 Maturity
Six Months 5.50 Maturity
One Year 6.00 Maturity
Askari Bank Investment Certificate
First Month 4.00 Maturity
Second Month 4.50 Maturity
Third Month 5.00 Maturity
Online Banking Department
Online banking means that the customer of Askari Bank can deposit / withdraw funds in /
from other branches of Askari Bank. Askari bank provides online facility to all its
branches. Online Banking is normally a single person department where entries in online
system are made.

 Facilities Provide by Askari Bank through Online Banking

• Cash deposits
The customer can deposit any sum of amount, through any branch of Askari Bank
Limited, of any sum in its account of any branch. The cash when deposited online to any
other branch of the Askari Bank Rs. 300/- will be deducted by the bank from the
customer. These charges vary from location to location the above charges are of the
AWT Plaza, Rawalpindi Main Branch of Askari Bank
• Cash Withdrawals
The customer can withdraw any sum of amount, through any branch of Askari Bank
Limited, of any sum in its account of any branch.
• Deposit Cheque
Customers can deposit their cheques of in other branches of Askari Bank through online
banking facility.
• Access to balance information

The customer can get access to determine the balance information about his or her
account, through any branch of Askari Bank Limited, of any sum in its account of any
branch.
RREMITTANCE DEPARTMENT
emittance department provides services to the customer of the bank. The main function of
this department is transfer of funds.
INSTRUMENTS OF BILLS AND REMITTANCE DEPARTMENT
The instruments that are handled in the Remittance department are as follow:

 Demand Draft.
 Telegraphic transfer.
 Mail transfer.
 Pay order.
 Pay slip.
 OBC.
 IBC.
DEMAND DRAFT
A demand draft is an instrument, which is drawn by one bank upon another bank
for a specific sum of money payable on demand. It is made by the bank and given to the
purchaser against cash or cheque. If two banks are involved, then one bank sends a DD to
anther bank. But in customer – Bank case the customer sends his DD to the receiver.
Issuance Procedure
A demand draft application to given to the customer, he fills in a relevant information
and signs it.
 The officer in charge then checks the information form.
 In case of cash deposit the cashiers counts his amounts and sign the DD application
and enters it in computer.
 Then the officer of the bills and remittance department signs it and operation manager
counter signs it.
 It is given to the customer.
 Vouchers are passed.
The bank when receives DD after verifying signatures the bank pays the amount to the
receiver of DD after crediting the account.

TELEGRAPHIC TRANSFER/ MAIL TRANSFER
Concept
A telegraphic transfer is a fastest and safest way to transfer money. The message
is fixed.
Issuance
 The request for maintenance through T.T is taken on the standard printed from.
 The customer fills it and signs it.
 The Head and remittance department checks it, the charges such as commission, tax
and telex as per effective schedule and sign it .
 Then a neat T.T is made on the white slip. There are 3 copies. The original faxed to
the branch, one to the Head Office and one are kept as record.
 When commission bill is received, it is attached to the T.T office copy in the file.
Payments
 When a T.T arrives, the test numbers are checked and the signatures are
verified.
 If there is no account then the T.T receipt needs revenue stamps and then
the payment is made.
Charges on issue of DD & TT:
Amount (Rs) Charges (Rs)

1 - 10,000 0.13% or 135 Min.
10,001 – 100,000 0.095% or 295 Min.
Over 1000000 0.080% or 1300 Min.
PAY ORDER
A pay order is written authorization to the person named for receiving payment from the
issuing bank. It is normally issued for payment in the same city. It is referred as banker's
cheque. The following are some of the steps involved in issuing a pay order.

 Get the application form.

 Issue pay order after recovering cheques.
 Do necessary vouchering.
 All pay order shall be crossed" payees account only".
 Then the amount is credited to the account of the receiver of PO or paid in cash.
 The P.O is posted at the computer.
Charges on issue of Pay Order
Amount (Rs) Charges (Rs)

Less then 100,000 50
Above 100,000 Nil
PAY SLIP
The bank for settlement of it own payment issue pay slip.
• No excise duty
• No commission
OUTWARD BILLS FOR COLLECTION
Concept
The bills, which are sent to, their city banks for the local clearing in that city are
called outward bills for collection.
Procedure
 The cheques that are banks in other cities are separated.

 The OBC forwarding schedules / (Annexure) are prepared for the different branches.
 The respective cheques are attached with the schedule.
 Two authorized officers sign the schedule.
 The office copy is filled and the original schedule is mailed.

 On clearance the respective banks send back the OBCS along with IBCA. Inter
branch credit advice.
 Charges i.e. commission charges and postage charges are deducted from the A/C.
 Vouchers are made.
INWARD BILLS FOR COLLECTION
Concept
The bills, received from other banks out of city for the local clearing, are called
inward bill for collection.
Procedure
 The OBC of the other branches will be IBC’s of this branch. So an OBC forwarding
schedule is received by mail.
 The cheques are lodged for clearing.
 After realization, an IBCA is prepared and mailed to the branch.
 At the end of the day two contra vouchers are made and posted.
CCASH DEPARTMENT
ash department is very sensitive and risky part of the bank. Very cautious and competent
personnel, are needed for the job. ACBL has really such a diligent staff with appreciable
competencies and will to do work. All physical movement of cash in the bank is made
through the cash department. Normally cash department performs following functions
 Receipt
 Payments
 Act according to any standing instructions
 Transfer of funds from one account to another
 Handling of ATM
 Verification of signatures

 Posting
 Handling of prize bond
Cash receipt section

The procedure followed in the cash department in this case as follows:
1. The customer fills the pay -in slip. There are two types of pay-in slips. The
red slip is Filled if he is a current holder. The cashier receives the pay -in slip and
cash.
2. He counts the cash and makes the detail of the notes at the bank of the
pay-in-slip.
3. Then he compares the detail with amount written on the pay-in slip.
4. Signs the pay-in Slip.
5. Writes the entries in the Receiving cashier's book, i.e. serial No, account
type, Account Number, Cheque No and amount.
6. Puts the stamp of the Cash Received on the pay-in slip of writes the serial
number from the receiving cash book.
7. The first portion i.e. the Receipt is taken and given to the customer. While
the latter portion is handed over to the person for the entry in order to update the
data.
Cash payment section

In this section honoring the cheque through following process makes payment.
Process of payment
Cheque is presented at Cheque is recorded &

token counter token # is allotted

Cashier counts the Cancellation officer
amount & payment cancels cheque
is made
Two signatures on
Posting is made
back of the cheque by
customer
CALCULATION OF ENDING CASH BALANCE
The official time for receiving deposits and payments is till 1:35. However some
important customer are accommodated afterwards.
 The cash in hand is counted. It contains the cash at the counter and the cash in the
strong room.
 Then opening balance is taken, i.e., the ending balance of the previous day.
 The receipts are added.
 The payments are deducted.
 This daily cash position is written down on the daily cash position book.
CASH MANAGEMENT
Cash management is a technique of managing cash according to the requirements
of the bank on daily basis. The operation manager manages this aspect of cash. Every
Branch has an accountant at the State bank Of Pakistan . A 5% of the total deposits has to
be maintains so there are two main sources of the cash.
 State Bank of Pakistan.

 head Oftice.
If Branches borrows cash from Head Office it has to pay an interest of 13%. On the
other hand. If the cash is remitted to head Office, The branch gets a profit at 12.75%.
CLEARING DEPARTMENT
T
he word clearing has been derived from the word “Clear” and is defined as a system by
which banks exchange cheques and other negotiable instruments drawn on each other
within a specific area and thereby, secure payment for their clients through the Clearing
House (NIFT) at specified time in an efficient way. Clearing does not involve any cash
and the entire transaction take place through entries in the bank’s system. Since no cash is
involved as such the risk of robbery, embezzlements and pilferage is totally eliminated.
In this way through clearing arrangement a lot of time, cost and labor are saved. These
days an institution named National Institutional Facilitation Technologies (NIFT)
facilitate banks in performing clearing operations. Finally the banks then adjust their
claims against one another through State Bank of Pakistan.
There is no legal obligation on a banker to collect cheques drawn upon other banks for a
customer. However it is function of almost every modern bank of the collection of
cheques and bills on behalf of the customer.
♦ Types of Cheques Received

⇒ Transfer Cheques:

Transfer cheques are those cheques which are collected and paid by two different
branches of the same bank situated in the same city.
⇒ Clearing Cheques:
Clearing Cheques are those cheques which are drawn on the branches of some other bank
of the same city or of the same area which covers a particular clearing house.
⇒ Collection Cheques:
Collection Cheques are those cheques which are drawn on the branches of either the same
bank or of another bank, but branches are not in the same city or they are not the
members of clearing house.
ROLE OF THE CLEARING DEPARTMENT
Suppose X is an account holder of ACBL, and he has to pay Rs.2, 000/- to a

person who is an account holder of MCB. X draws a cheque in favor of Y and gives it to
Y. Now Y instead of coming to ACBL for payment, deposits the cheque at MCB. Then
the role of NIFT starts. It collects cheques from all banks and then sorting of these
cheques are done. It delivers those cheques to their respective banks. The cheque will
reach ACBL through NIFT. Then ACBL after checking its validity clears it. If the cheque
is not valid it is returned to NIFT which then delivers it back.
The courier of NIFT visits the bank 3 times a day. First, at 9:30 am when inward clearing
is received. Second, at 11:30 am when he takes cheques returned. Third, at 2:30pm when
he takes the outward clearing and brings the cheques returned.
Each bank is required to ensure that all cheques and other negotiable instruments are
properly stamped
Inward Clearing:
The cheques which are received by the banks through NIFT which their customers have
issued are referred to as inward clearing. Cheques drawn on Askari Bank and presented
to other banks are inward clearing for Askari Bank Limited. The bank after receiving

these cheques debits the customer’s account. So inward clearing results in outflow of
funds to collecting banks, reducing the balance in the clearing account.
Excess of outward clearing over inward clearing results in a net increase in the clearing
account balance. Excess of inward clearing over outward clearing produces a net
decrease in the clearing account balance. The first case is referred to as favorable clearing
& the second case as unfavorable clearing.
OUTWARD CLEARING AT THE BRANCH:

The following points are to be taken into consideration while an instrument is accepted at
the counter to be presented in outward clearing:
 The name of the branch appears on its face where it is drawn on.
 It should not be stale or post dated or without date.
 Amount in words and figures does not differ.
 Signature of the drawer appears on the face of the instrument.
 Instrument is not mutilated.
 The amount of the instrument is same as mentioned on the paying-in-slip and
counterfoil.
 The title of the account on the paying-in-slip is that of payee or endorsee (with
the exception of bearer cheque).
A stamp of clearing with the next day is impressed on the cheque as well as on the pay in
slip. Then a stamp naming “Payees Account Only & Proceeds will be impressed on
Realization”.
Then the following steps are to be taken:

1. The particulars of the instrument and the pay-in-slip or credit voucher are entered
in the computer.
2. Serial No. is given to each voucher.
3. The computer record is balanced; the credit vouchers are balanced from the
instruments.

4. Then the instruments are put in a bag along with a clearing bundle cover on which
no of instruments, total amount, date, signatures and name of sending branch is
written
5. Then the bag is given to NIFT employer.
The next day employer of NIFT returns those cheques which are not valid. The entry of
the instrument returned unpaid is made in Cheques returned Register. If the instrument is
not to be presented again in clearing then a covering memo is prepared. The covering
memo along with returned instrument and objection memo is sent to the customer who
sent the same to his account.
ACCOUNTS DEPARTMENT
A
ccounts department is a department, which deals and checks all the activity of
all the department. The main functions of the accounts department of Askari
Bank are as follows:
 Maintaining the vouchers record

 Processing and maintaining record of staff salary
 Preparation of statements
 Preparation daily activity report
 Approval of day-to-day expenses
 Tax returns
 Budgeting
 Pay order/telegraphic commission transfer
 Charging Depreciation
 Head office reports
 Monthly assets and liability position
 Maintaining and issuing stationary
 Maintaining and issuing office supplies

 Customer's A/c statements

 Backup of computer based data
 Service Charges deduction
 A/c to be dormant
 Sending letters to customers
 Staff loans
 Accounts to be blocked and unblocked
 Zakat Calculations
 Voucher System
The following points are of importance explaining voucher system:
 Voucher is a written authorization issued in approving a transaction for recording
and payment.
 Voucher is a system, which is generally designed to provide strong internal
control over the transaction, which takes place during the business hours.
 Whenever a transaction takes place in any department of the bank a voucher is
prepared which serves as a record of that transaction.
 One debit and one credit voucher is prepared. At the start of the day, all the
vouchers of the previous day are collected and sent to the accounts department.
 Accounts department sorts and arranges these vouchers. The vouchers are then
tallied with the reports generated by the system. This process id called as ticking
and the whole process is called as activity. The purpose of all this activity is to
compare the system generated reports with the actual evidence of the transaction.
 Debit Vouchers
Debit vouchers are used in three cases:
 When ever any expense is incurred.
 When a depositor withdraws some amount from his account.
 When the account of the customer is debited with the amount, a debit voucher is
prepared.

Format of the debit voucher includes:

• Name of branch
• Date
• Branch No.
• Account No.
• Transaction Code
• Amount and other details (Narration)
 Credit Vouchers
There are two types of transaction in which credit vouchers are used.
 When a depositor deposits any amount in his account because the liability of bank
is created.
 Any income received by the bank e.g. commission, various charges etc. Askari
Bank uses different types of credit vouchers for different types of transactions.
 Expense Vouchers
All the expense vouchers passed by each department are routed through accounts
department. These expenses include:
• Salaries of the staff
• Wages
• Rent
• Lease installments
• Insurance - vehicle
• Insurance - cash
• Utility Bills
• Medical allowances (reimbursed)
• Cash carrying charges etc.
Preparation of statements

Another function of accounts department is the preparation of various statements.

These include weekly statements, monthly statements showing the movements in various
accounts. Accounts department also prepare the statements required by operations
manager from time to time.
Preparation of Daily Bank Position Statement
The department prepares Bank’s Daily Position. It is prepared by taking in to

account computer printouts. The set of a computer printouts is called End of the Day. The
first job in the morning is to prepare these statements
.
Preparation of monthly Statements
The monthly statement sends to finance Division at Head Office are:
 Statements and Liabilities.

 Statements and Expenditure.
 Statements of sundry creditors outstanding.
 Statements of sundry Debtors outstanding.
 Statements of operations in sundry creditors during the month.
 Statements of operation in miscellaneous expenditure account during the
month.
 Salary statement.
Monthly statement to SBP

A monthly statement is prepared and sent to SBP. The statement is called
“statement of liabilities and assets” as on 30th of the month. It includes “classification of
other private sector and advances and Bills purchased and discounted by scheduled Banks
of Pakistan”.

Half-Yearly Statement of Assets and Liabilities

This is a statement showing the details of assets and liabilities as on 30 th June and
then on 31st December of each year it is sent to head office.
Payment of Salaries
Payment of salaries is also a function of the accounts department. Head Office
provides the salary schedules to each branch. According to the schedule Salary
statements are prepared.
It is a tradition of an Askari Commercial Banks that the pay is dispatched on the
26th of each month all over Pakistan. The maintenance and record keeping of allowance is
done the Accounts Department
Depreciation calculation
The depreciation of assets is calculated through “straight line method”. The
depreciation is calculated both manually and on the computer.
All the accounting functions are organized by the incharge of Account
Department calculated the manually checks it with computer data.
FOREIGN EXCHANGE DEPARTMENT
T
he FOREX department works effectively with an extensive correspondent network and
deals with the following :
 Import
 Export
 Foreign currency accounts
 Foreign Remittances
 Submission of monthly statements to SBP

IMPORT SECTION
In case of import, first a L/C is opened in the bank on behalf of importer. Importer
submits a request for opening a L/C and prepares an application form. The importer
seeking to open a L/C, must be registered with Export Promotion Bureau, it is the basic
requirement.
Foreign Trade Department
Work can be divided Foreign Trade Department into three portions, one is the
foreign currency, second Import and third is the Export portion. In foreign currency
portion bank deals in foreign currency business. In Import it deals with Letter of Credit
issuance matters and in Export portion the bank deals in export financing.
Letter of Credit
International trade involves numerous factors such as payment for imports in the
exporter’s country; shipment of goods within the limitations prescribed and difficulties of
enforcing legal rights in the foreign country etc. Therefore, to overcome these
impediments a system has been enforced, this system is represented by ‘Letter of Credit”.
“A bank’s written undertaking given to the exporter for payment of a certain sum of
money on behalf of the importer provided the exporter tenders to the bank, or its overseas
agents, the specified documents within a specified period in accordance with the terms of
the undertaking”.
Parties of Letter of Credit

There are four basic parties involved in an L/C:
• Importer
• Issuing Bank
• Exporter (Beneficiary)
• Beneficiary’s Bank
Types of a Letter of Credit

There are two main types of an L/C that are being practiced in Askari Bank.
Sight L/C
“If the beneficiary of a credit is to obtain payment immediately on presentation of

stipulated documents, it is a Sight Credit”.
In this form of credit the exporter draws a sight or demand draft payable at the
counters of the advising bank or the bank specified in the letter of credit. The draft (bill of
exchange) is paid on presentation provided that all the other terms of the credit have been
complied with.
Usance L/C
“When a credit stipulates payment to the beneficiary upon the maturity of a bill of
exchange drawn under the terms of the credit, it is an ‘acceptance credit’, ‘terms credit’
or Usance credit”.
In this form of credit the beneficiary draws a draft for a particular Usance (e.g. 30,
60 or 90 days etc.), payable upon either the correspondent bank or the issuing bank.
Qualifications for an Importer to Get an L/C Issued
A Letter of Credit cannot be opened on behalf of a person unless he fulfills the

following requirements:
• The person must be an account holder of ACBL.
• No person can be an importer without first being registered with EPB. So the
person must have valid import registration with Export Promotion Bureau (EPB)
of Pakistan. This registration is not necessary for those who have been exempted
from it.

• The person must process a valid membership certificate of Trade Organization,

licensed and recognized by Federal Government like a Chamber of Commerce
(e.g. Lahore Chamber of Commerce)
• The person must possess a valid NTN (National Tax No.) certificate.
• The person must have the Sales Tax Registration Certificate. Obtaining of Import
License is no more required.
L/C Application Form

After having an approved L/C limit, the process of L/C opening starts with L/C
Application form. The bank has prescribed a standard application form that contains the
required guidelines, instructions and other relevant terms and conditions under which the
L/C is to be opened and claims from the beneficiary are to be settled.
• Description of the goods, detail of quantity, unit price, total price and currency of
credit
• Instructions about the advice of credit, whether it should be sent by airmail, by
courier or telecommunicated
• Form of credit: whether revocable or irrevocable, confirmed or unconfirmed. Due
to permission of irrevocable credit only, it is prescribed on form
• The name and address of the beneficiary
• Type of credit: whether sight, Usance etc.
• Validity period of credit and last dates for shipment and negotiation
• Port of shipment and port of destination and whether trans-shipment and/or part-
shipment are allowed
• Types and number of sets of documents required to be submitted by the exporter
• Shipping terms in the contract of sale, e.g., FOB, C&F or CIF etc.
• The application form is a formal contract between the issuing bank and the
applicant; therefore, it is signed by the customer, who by doing so undertakes to
abide by the terms and conditions of L/C, mentioned in the application form
Documents required for opening an L/C

For getting an L/C issued, the importer needs to submit the following documents along
with the application form.
• Performa Invoice
• Insurance Policy
• Promissory Note
• Form I
L/C Margin
It is a certain percentage of the value of L/C that is retained by the bank as

security. In ACBL Regional Office, margin requirements are usually 0-10% depending
upon the client’s credibility.
L/C Commission
Commission is also charged from the importer for the issuance of L/C. After
getting L/C Margin, L/C Commission and other mailing charges, the Letter of Credit is
issued to the importer.
Communication of L/C
LC messages are communicated through SWIFT system, where every message has a pre
defined format and code. For example:
• MT 740: authorization to reimburse
• MT 747: amendment to MT 740
• MT 799: Free message of Letter of Credit
Export Operations
Conditions for Exporter

Like an importer, there are certain conditions that a person must fulfill to become an
exporter.
• No one can export any commodity until and unless he/she is a Pakistani and has a
valid export registration with the EPB
• The person must process a valid membership certificate of Trade Organization,
licensed and recognized by Federal Government like a Chamber of Commerce
(e.g. Lahore Chamber of Commerce)
• The person must possess a valid NTN (National Tax No.) certificate.\
• A person cannot export any good unless he files a Form E (E stands for exports)
with his application to the bank. The form E must be filled in writing and all
specifications stipulated on the form, must be met.
• The person must have the Sales Tax Registration Certificate
Complete Export Cycle
The process of export starts with the receipt of the letter of credit (or contract) by
the bank. The issuing bank sends the L/C to the bank. Road through the advising bank.
Upon receipt of L/C, an intimation letter is prepared and is sent to the beneficiary of the
L/C, advising him that his reached ACBL and he should collect it immediately.
As mentioned earlier, an E-form is necessary for exports out of the country. It is a part of
exchange control mechanism of the State Bank of Pakistan. When an exporter receives an
L/C, the next job is to get an E-form from the bank. The E-form is a quadruplicate and
contains the following information.
• The Commodity
• The quantity
• The price
• The port of shipment
• The port of destination

• Terms of shipment
• Export registration number
After filling in the complete information about the goods to be exported, the exporter
brings the E-form to the bank for verification. The bank verifies the contents in
accordance with the documents and not by physical checking.
After getting the E-form verified from bank, the exporter starts preparing for his
shipment. As the banks only deal in documents, so in order to receive the payment for his
good to be exported, the exporter has to send certain documents to the L/C issuing bank
via negotiating bank.
A very important step in the export process is to scrutinize the documents, before
sending them to the issuing bank. It requires utmost care and attention of the bank officer.
When the documents are presented in the bank, they are always scrutinized and they must
be in accordance with the requirements stipulated on the L/C. Any deviation could result
in rejecting the documents by the importer, hence causing loss to the exporter or even to
the bank if the documents are to be negotiated.
Collection / Negotiation
When the exporter comes to the bank with the documents, he has two options:
• Send them for collection
• Get them negotiated
Collection
The bank sends the documents on behalf of the exporter to the issuing bank and
payment against them is received after a specific period. In collection, the exporter is paid
only when the bank obtains reimbursement from reimbursing bank. The payment is made
to the exporter in PKR (Pak Rupees) and the exchange rate is the buying rate of the day
normally called T.T Buying Rate.
Negotiation

In case of Negotiation, the bank purchases the documents (clean documents

having no discrepancy, against L/C’s only) from the exporter, i.e. the exporter gets them
discounted before their maturity.
　
CREDIT DEPARTMENT
T
Credit department is the one of most important department in bank
sector. Normally credit department consider as backbone of the bank.
Because the major portion of the bank profit is earned from the credit
department in the shape of mark-up which is recovered from the customers. Dealing in
advances is main function of credit department. Timely recovery of mark up and
principal amount, build good relation with customers and correspondences with
customers also included in the functions of the credit department. In the credit
department, loans are issued on the commercial basis and for agricultural purposes also,
means the loans are given to companies, partnerships and the sole proprietorships &
farmers. The loans are issued against some securities and on a markup specified by the
policies of State Bank of Pakistan.
Types of Financing
Financing is divided into three major portions, which are:
• Consumer financing
• SME financing
• Corporate / Commercial financing

Types of Credit Facilities
Bank provides different credit facilities to its customers, in form of short-term and
long-term credit. Following are the credit facilities that the customers usually avail to
meet their requirements.
Running Finance
This acts as a line of credit into which unlimited credits and debits can be made and
markup is charged on outstanding amount only.
Security: In cases of R.F Clean, the promissory note acts as security for the extension of
credit.
Cash Finance
Advance is granted on a short-term basis against security (pledge or

hypothecation) of inventory. The inventory pledged/hypothecated operates as a security
for the advance. It is important that a Pledge/Hypothecated good should be executed with
the Customer. Additional security may also be obtained depending upon the risk element.
This is a very common form of borrowing by commercial and industrial concerns, and is
made available either against pledge or hypothecation of goods. Cash finance (being
short term credit) is utilized for the creation of current assets and to meet the permanent
working capital requirements. In cash finance, a borrower is allowed to borrow money
from the bank up to a certain limit, either at once or as required. The borrower prefers
this form of lending due to the facility of paying markup charges only on the amount he
actually utilizes.
Term Finance
These are loans repayable with a fixed repayment program. These may be clean
but they are generally secured and are further classified into clean and secured.

Term Finance for ASKCAR
This is term finance provided under the Ask car Scheme of the bank for purchase
of car and is repayable in monthly installments.
Overdraft
This is the most common form of bank lending. In overdraft facility, a customer is
allowed to withdraw on his account in excess of the balance that the borrowing customer
has in credit. So, when a customer withdraws in excess of his balance, an overdraft
occurs (balance becomes in debit). Overdraft facility can be availed for a certain limit
called OD limit and is used to meet the seasonal requirements of cash.
Staff finance
Facilities allowed to Staff members under different schemes of the bank and
categorized accordingly.
Security for Credit Advancement
No doubt, the advancing of credit involves a great risk for the bank. Therefore, to
cover this risk, the bank keeps different tangible and non-tangible securities, before
sanctioning the credit facility to a customer. The bankers prefer such securities that carry
less risk of depreciation due to market fluctuations and are easily saleable, even under
changing market conditions.
Common Securities
• Mortgage of Immovable Property / Fixed Assets
• Pledge of Goods
• Hypothecation of Goods
• Letter of Trust / Trust Receipt

• Stock of Shares
• Floating Charge
• Debentures
• Personal Guarantees
• Guarantees
• Assignment of Debts as Security
• Lien on Cash / letter of Set off
• Negotiable Instruments
Processing of Loan Application
Whatever money the banker holds is that of his customers who have entrusted the
bank only because they have full confidence in the expert handling of money by their
banker. Therefore, the banker must be very careful and ensure that his depositors’ money
is advanced to safe hands where the risk of loss does not exist. So, when a customer
requests his banker to facilitate him with different credit facilities. The banker, first,
assess the credibility of customer and the market conditions. The elements of character,
capacity, capital and market conditions help a banker in arriving at a conclusion
regarding the safety of advances.
Preparing a Credit Line Proposal (CLP)
After being satisfied with the credibility and integrity of the applicant, the
processing of loan application starts with the preparation of Credit Line Proposal (CLP).
According to my observation, it has been the vital and most important task assigned to
the credit officers in ACBL.
In a CLP, all information regarding the client and his business is stipulated as:
• Total existing facilities (limit), their outstanding value and the securities that were
provided against these facilities

• Total proposed limit of credit and the securities provided against it. The credit
officer does the analysis and verification of these securities
• Customer’s background, his relationship with the bank (if he is an existing

customer), his relationship with other banks
• Purpose of facility and the terms and conditions regarding the credit
• Nature of his business and what are the market conditions & opportunities for the
business
• Business Reciprocity/ reciprocal business is stipulated on the proposal, which

means the expected business that would be routed through the bank for these
facilities. Banks calculates his profitability on the basis of this business
• Financial Analysis of the business of the customer constitutes the vital most
important part of a proposal. Banker makes an analysis on liquidity, leverage and
profitability of his business
Documents to Attach with Proposal
For having the complete information regarding the client, his business and the
securities offered for advances (that already have been discussed), different documents
are prepared by the credit officers. All these documents are attached with the proposal to
get approval. These documents are as follows:
Grade Approval Sheet
On the basis of nature of business and the client’s relationship with the bank (and
other banks also), grades are assigned to client. For this assessment, the bank prepares
Grade Approval Sheet.
Basic Fact Sheet
Basic Fact Sheet stipulates the information of the client and his businesses like;
address, NTN, import registration No., corporate status, directors & management etc.

Valuation Survey Report
For the proper valuation of securities offered against credit facilities, bank renders
the services of valuators (Nishat Mills Ltd.). These companies after conducting a proper
survey prepare Valuation Survey Report. Both the resale and forced sale values of
securities are mentioned on the report, in detail.
Property Visit Report
Credit officers conduct a proper visit of the property. After having a thorough
visit of property, Property Visit Report is prepared. It elaborately describes the nature of
property and associated threats. It can be prepared in tabular or essay form, depending
upon the nature of property.
Security Analysis Sheet
In Security Analysis Sheet, it is assessed that how much security have been
offered in form of cash, marketable securities and other illiquid securities, and after
meeting the margin requirements, how much facility can be sanctioned.
Relationship Profitability
Relationship Profitability report is prepared to calculate the net income (net

spread) of the bank against the credit facilities. Bank arrives at net spread by subtracting
the cost of funds from the total markup earned against credit facilities. All these
calculations are based on projections.
Statement of Accounts
Account of a customer constitutes the basis of his relationship with bank. So,
account statement of a customer reflects the nature of the relationship between the bank
and costumer. If required, the accounts statements of other banks of customer are also
obtained.

Financial Statements
Along with other documents, financial statements of the business concern are also
attached.
Approval of Credit
When the credit officers are fully satisfied with the proposal of credit, then they
recommend it for approval by the BCC (Branch Credit Committee) or Head Office. BCC
has an authority to approve the credit proposal upto a certain limit. However they have to
send the case to ROCC (Regional Office Credit Committee) for Post-Fact Review. The
case is send to branch and HOCC (Head Office Credit Committee) also for record. But,
beyond that limit, it has to be approved be the ROCC. The ROCC also has a limit and
above that limit proposals are send to HOCC. ROCC or HOCC if not satisfied they
usually send queries. And after getting complete facts make a decision.
Branch Credit Committee Rs. 500,000
Regional Office Credit Committee Rs. 1000,000
Head Office Credit Committee Above Rs. 1000,000
Credit Monitoring
Periodic Inspections
When a credit limit is approved for a customer and credit is sanctioned, then CLP
will converted into CSA (Credit Sanction Advice), the major task of credit officers is to
conduct periodic inspections (monthly, quarterly etc.) of securities that have been offered.
Banker must see that whether all the margin requirements and other terms & conditions
are being fulfilled by the customer or not.

ATM & Lockers Department
A
utomated Teller Machine is a hi-teq. Invention in the field of the banking, it
facilitate that a depositor can withdraw money at any time without the need of
banking personnel. We can also deposit money with the help of this machine.
But it is not so much practiced here because of some drawbacks.
Lockers
Askari bank offers facility of lockers of different sizes to its customers. Lockers can be
obtained in the following ways:
Security Deposit
This amount is fixated at the bank for a year. It differs from the size of lockers.
Security Deposit Schedule
Size of lockers Security Deposit

Large 25000
Medium 30000
Small 45000
On Rent
If a customer doest feel comfortable for blocking his money in the shape of Security
Deposit, he can pay the rent of locker which is according to the following schedule:
Rent Schedule
Size of lockers Rent of locker (Rs) p.a.

Large 3200
Medium 1800

Small 1200
• Late payment charges are Rs. 125 per month for all sizes.
• Locker breaking charges are Rs. 2660
Procedure to obtain and operate Locker
• Locker Application Form is filled by the customer
• This form is accompanied with his two photographs and NIC copies
• An SS Card is issued for the purpose of operating the lockers
• A copy of the form is retained by the banker and used for further verification
whenever the customer comes for operating the locker
• After all formalities are complete, the customer is informed of the Locker Number
and the key is handed over to him
• Whenever the customer comes to operate the locker, he has to record his name,
time of arrival and signature in the Locker Attendance Register.
ATM Card
Askari Debit Card is a very useful product as it gives the following facilities:
• Bills payment facility
• Balance Transfer Facility
ATM card is issued in the following way:
• A Debit card application form is filled by the customer
• The application for the card is forwarded to the Head Office
• It takes 10-15 days for the card to be made and delivered to the concerned branch

• The pin and card are mailed separately to different officers for the purpose of
security
• The customer collects his card and pin, and signs the register
• Due diligence is required by the staff before handing over the card and its pin.
SWOT ANALYSIS
An analysis indicating towards the organizations strengths, weaknesses, opportunities and

threat is termed as SWOT Analysis. Such an analysis is very important for the
management in retaining the strength, overcoming the weaknesses, capitalizing over the
emerging market opportunities, and carving ways to successfully tackle with the threats
and ultimately converting them in the strengths for the organization.
During six weeks of my stay at Askari Commercial Bank, Johar town Lahore, I have
come across the following SWOT analysis of the bank.
Strengths
Over the years, Askari Bank has provided its strengths as a leading bank in the banking
industry. The main strengths are as follows:
 Askari bank is one of the leading private sector banks in Pakistan.

 First bank to offer on-line real time banking on a country wide basis.
 The bank has one of the largest nationwide ATM network.
 First bank to introduce mobile ATM facility.

The operations performed by the bank are highly automated that result in assurance for
the customers that their transactions are completed reliably, efficiently and securely.
The management of the bank believes in customer oriented banking. So the products and
services are specifically tailored according to the individual needs of customers.
The priority banking centers of the bank are unmatched where the customer receives
privileged services in a highly elegant environment.
The revolution in the banking in the form of electronic banking operations have opened
avenues of excellent, efficient and quick services saving the time and costs of the
customers and Askari Bank is the first to offer internet banking services to its customers.
Askari Bank has the most comprehensive training and development system among all
banks in Pakistan.
Weaknesses
As for all other institutions, Askari Bank also has few weaknesses which can be
overcome by finding solutions for them:
 The accounting system used by the bank i.e. UNI BANK is not as much effective
as some advanced systems used by other banks.
 It appears that the employees have a lower level of job satisfaction. Askari Bank
must focus on this critical issue of lower job satisfaction.
 There is a high degree of centralization in the bank. The decision making is in the
hands of upper management. Centralization is effective up to a certain level afterwards it
becomes a problem in speedy working. I observed that many a time delay occurred in

operations of the employees only due to the fact that they had not got any instructions
from the head office.
 ACBL has lesser no. of branches as compared to many other banks. Due to this
problem, many army officers can not avail the benefits of their own bank.
 The human resource department is not performing the function of selection and
recruitment very effectively. selection process is not on merit due to which competent
persons cannot be selected.
 Bank is weak in its credit management. Bank should lend to very sound parties
and increase its payment rate
OPPORTUNITIES
Apart from the ones discussed in External Factors Evaluation Matrix, the bank is facing
the following threats and opportunities currently:
These are positive external environmental factors effecting the organization.
 It deals in bulk business.

 A large amount of foreign investment is attracted.
 Strong potential for growth
 Overseas Operations
 Branches In Remote Areas
 Islamic Banking
 Sharp increase in imports and exports
 Steady increase in Customer Deposits
Threats
Following are some threats to the profitable operations of the bank:

 As discussed above, the job satisfaction level of the employees is very low
resulting in high turnover, which is not in favor of any organization, as there are
monetary and non-monetary costs involved in fresh recruitments.
 Increasing competition is the biggest threat. As the competitors are coming up
with new and innovative products, it will be necessary for the bank to keep on working to
meet the changing and expanding demands of the customers.
 Commercial banks face considerable competition in attracting deposits from
individuals or small investors. In contrast, the Govt. of Pakistan national saving scheme
offers attractive rates of return (approx. 16 to 18 percent annually) on 10-15 year fixed
accounts, which banks find difficult to match.
 Owing to huge turnover of the employees, the number of experienced and well
trained staff is very low. Majority of the staff working in the bank branches is quite
young and inexperienced. If the bank failed to bring down its high employees turnover,
then it would be lacking the most important resources of any organization i.e. the
experienced staff.
Observations – Dilemmas Faced
Askari Bank is no doubt one of the leading private sector banks in Pakistan but as with
any other bank in Pakistan it is currently facing some dilemmas, which I observed during
internship. These are as follows:
 Askari Bank is facing some technical problems with their ATM machines and
their system. Part of this results from repeated breakdowns of electricity. No doubt bank
is using high quality generators but still the transfer of power supply from generator
creates problems.

 The bank is using accounting system named UNI BANK. This system does not
facilitate DD or PO issued. Therefore for DD and PO bank is using another accounting
system. Entering of data in two different systems is a problem for officer in remittances
department.
 Sometimes online system of certain branches fails to work due to which
customers have to return and they can not avail benefits of online banking.
 Lower job satisfaction of employees and high employee turnover are other
dilemmas currently faced by Askari Bank.

Recommendations
After spending six weeks in different departments of the bank, interacting with the
employees and customers, getting their views, observing the organizational structure and
design, I have come up with the following recommendations that in my opinion, will
contribute towards improvement of some weaknesses and dilemmas faced by the bank:
 The bank must identify the causes of low job satisfaction of their employees. The
bank should compare its salary structure with other banks as well to identify if the salary
structure needs revision. The bank should also adopt flexible policies in promotions of
the employees and progressive incentives related with the length of service should be
provided otherwise the high turnover observed in the bank will continue to create
problems for the bank now and in the future.
 In order to make a break through in attracting customers from SME sector the
bank should make its charges competitive as compared to other banks.
 The bank must give due attention to ensure the proper working of ATM machines.
 Bank must also consider adopting some modern accounting system in order to
overcome the drawbacks of the current system.
 The mobile ATM facility should be provided in those backward areas where
facility of ATM is not available, so that people can draw money from mobile ATM van.
 Too much dependence on manual record should be discontinued. This creates
useless burden on the concerned employees.
 Branches must be given authority of decision making. Credit approval limit of
certain branches needs to be increased.

Conclusion
It was a good experience to learn practical banking with Askari Bank Limited. It
provided the opportunity to implement the theoretical knowledge in dealing with
practical issues. It also provided a chance to study interpersonal behavior, interaction
with customer and matters related with management of human resource. It has provided
necessary know-how and confidence in dealing with a bank as a customer and in
resolving complicated banking issues arising in business dealings. The internship was
helpful in the grooming up of personality as well.
This internship will be definitely beneficial whether or not banking is adopted as a career.
If banking is adopted as a career, the internship will provide a sound background to begin
such a career. Otherwise too, it will be very helpful in practical and normal day to day
dealing with the banks.
Traditionally the banking operation cycle starts from account opening department. And as
discussed in the report other major departments include accounts, foreign trade, credits,
clearing, remittances and cash. There are some other support departments such as ATM,
Consumer Banking Services Group (CBSG) and Locker. At the level of regional office
and head office audit and human resources departments are also important.
I tried to spend maximum time in studying the working of these departments but as the
allowed time was limited, only a brief orientation was possible. But the major functions,
systems and procedures of these departments have been understood.
This internship provides the confidence that having found an opportunity to work for a
bank, it can be a good start with some back ground knowledge. Even while working for
any commercial / business organization the knowledge will be useful as a customer.

Apparently training in banking seems to be a simple matter. But it is not so. Modern
banking is a complex subject and in itself a science requiring in depth and thorough
knowledge. In this perspective, the allocated time of six weeks was not sufficient.
However I tried my best with the best cooperation of the bank offices to cover as much
areas as possible.
In short, six weeks stay at Askari Bank Limited has been beneficial in many aspects. The
outcome of this study project is this internship report which contains the information that
has been gathered during the course of internship.

References
 Askari Bank website www.askaribank.com.pk
 Askari Bank Annual Report 2004, 2005, 2006, 2007 and 2008
 Askari Bank Corporate Profile 2005, 2006, 2007
 Business Finance by Lawrence J. Gitman
 Practice and Law of Banking in Pakistan by Dr. Asrar H.

Siddique
 Business magazines and journals


Final Intership Report Askari

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Final Intership Report Askari

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ACBL Internship Report

PREPARED BY: Anum Naz

IAS University of the Punjab Lahore.

IAS University of the Punjab Lahore.

In BS (Hons) Management sciences, Internship Program is an important part to give

IAS University of the Punjab Lahore.

ARMY WELFARE TRUST

IAS University of the Punjab Lahore.

ARMY WELFARE TRUST AWT

Askari bank Limited – History & Introduction

IAS University of the Punjab Lahore.

Following is brief snapshot of the bank’s financial position1:

Total Assets Rs. 206.19 billion

Total Equity Rs. 12.97 billion

Total Employees 6496

Following is general information of the bank2:

Type Public Company

Median Age of Employee 28

IAS University of the Punjab Lahore.

Gender Diversity Males: 90%, Females: 10%

Subsidiaries of Askari Bank

• Askari Investment Management Limited: engaged in managing mutual funds

• Askari Securities: engaged in managing share brokerage respectively

Re Branding in July 2008

The New Logo

The New Slogan

IAS University of the Punjab Lahore.

Latest News at Askari Bank

Askari Bank pursued a deal to amalgamate with Mybank, which according to

Special Asset Management Team (SAM)

IAS University of the Punjab Lahore.

• improve business management,

• upgrade customer service

• strengthen the internal control environment

• improve quality and timing of financial and non-financial information

People Soft and Siebel

MOTIVATION OF ASKARI COMMERCIAL BANK

While successfully penetrating the key domestic markets through strategic

IAS University of the Punjab Lahore.

THE MISSION STATEMENT:

IAS University of the Punjab Lahore.

To be the leading private sector bank in Pakistan

“Consolidation and creating opportunities with innovation”

"Professionalism without integrity is like a book without pages"

IAS University of the Punjab Lahore.

IAS University of the Punjab Lahore.

 To comprehensively plan for the future to ensure sustained growth and

HOW CHALLENGE BE DELIVERED

CODE OF BUSINESS PRINCIPLES

“The Challenge... to bring a dream to life”

IAS University of the Punjab Lahore.

From knowing Askari customers' requirements to understanding employee needs,

“The power to inspire and be inspired”.

Awards and achievements

In 1994, 1996 and 1997 the bank received

IAS University of the Punjab Lahore.

Mr. Kalim-ur-Rahman, President Askari Bank, with group having award of

IAS University of the Punjab Lahore.

 Best Consumer Internet Bank in Pakistan

Lt. Gen. Javed Zia (HIM) Chairman

Lt. Gen (R) Imtiaz Hussain Chairman Executive Committee

Mr. Muhammad Rafiquddin Mehkari President & Chief Executive

Maj Gen (R) Saeed Ahmed Khan Director

Mr. Zafar Alam Khan Sumbal Director