Final Internship Report 1 PDF

INTERNSHIP REPORT 2018
INTERNSHIP REPORT ON ASKARI BANK LIMITED
SUBMITTED TO
MS AMBREEN AFZAL
SUBMITTED BY
SAMIA TAHIR
REGISTRATION NUMBER
M.Com-CMC-FA16-001
___________________________________________________________________
DEPARTMENT OF COMMERCE
LAHORE GARRISON UNIVERSITY
DHA, PHASE-VI, LAHORE
Lahore Garrison University Page 1

INTERNSHIP REPORT ON ASKARI BANK LIMITED
SUBMITTED TO
MS AMBREEN AFZAL
REMARKS: _________________________________________________________
___________________________________________________________________
HEAD OF DEPARTMENT
_________________________________
REMARKS: _________________________________________________________
___________________________________________________________________

EXECUTIVE SUMMARY
Askari Bank Limited. Established in 1991 it began its operations in 1992 and
offers a wide portfolio of services while maintaining a close link with the Armed forces
of Pakistan as it is currently owned by the Fauji Foundation and was previously owned
by the Army Welfare Trust. I did 6 weeks internship at Askari Bank Limited, Askari X
branch Lahore Cantt which started on 26 of July 2018 and ended on Sep 06, 2018. As
a compulsory requirement for Commerce department. I completed my six weeks
internship at the above mentioned organization. The purpose of this internship is to
enable students who are about to pass out from the institute to get a taste of practical
once we walk out from these gates. Those six weeks were a wonderful experience full
of learning and understanding and putting the knowledge we learned into perspective.
This report sheds light on what was learned during that time during my internship at
Askari Bank Limited. As an internee I got to work in four important sections of the bank
namely deposits, bills and remittances, accounts and credit. I have successfully
completed my tasks which were assigned to me.

ACKNOWLEDGEMENT
All praises to almighty ALLAH and our Holy Prophet Muhammad (PBUH) who
gave the courage and patience for completion of this final report. I wish to
acknowledge my gratitude to my inspiring teachers for their endless persistence,
support and encouragement, and for providing me a lifetime opportunity to work with
Askari Bank. I am also thankful to Askari Center branch, Lahore and the branch
manager Ms. Nisha who gave me opportunity to work with experienced employees
in their institute. I am also thankful to my parents, family and friends for continuously
encouraging me.

DEDICATION
God never ruins any exertion. Each bit of work is remunerated by the idea of
commitment for it. I offer my humblest and sincerest words to on account of
ALMIGHTY ALLAH. The most Compassionate and Merciful, whose bounteous
endowments empowered me to see and examine higher standards of life and who
favored me with the potential and capacity to make some commitment to the effectively
existing sea of information.
All the efforts in compiling this report are dedicated to my beloved Parents, friends &
my honorable faculty members of department of Commerce, as they helped me in this
Achievement.

LIST OF ABBREVIATIONS/ACRONYMS
Sr. No. Abbreviations/Acronyms Full Form

1 IA Internal Auditor
2 DPO Data Processing officer
3 FA Financial Analyst
4 FM Financial Manager
5 ABM Assistant Branch
Manager
6 ATM Automatic teller machine
7 OM Operation Manager
8 BM Branch Manager
9 CA Chartered Accountant
10 AO Account Opener
11 CSM Client Service
Manager

TABLE OF CONTENTS
Table of Contents
1. INTRODUCTION............................................................................................................ 8
1.1. Background of Industry: .......................................................................................... 8
1.2. Brief History of ASKARI BANK LIMITED in Pakistan: ....................................... 10
1.4.2. Mission Statement of ASKARI BANK: ................................................................ 13
1.4.3. Corporate Information:........................................................................................... 14
1.4.4. Core Values of ASKARI BANK: ................................................................................. 16
1.4.5.Corporate Social Responsibility: .............................................................................. 16
1.5. Branch Hierarchy: ..................................................................................................... 17
1.6.Business/products and services: ................................................................................ 18
2. DEPARTMENTS AND POLICIES ................................................................................ 21
2.1. Divisions of Askari Bank Limited: .......................................................................... 21
2.3 DEPARTMENTS:.................................................................................................. 25
Departments of ASKARI BANK:....................................................................................... 25
3. EXPERIENCE AT ASKARI BANK: ............................................................................. 30
4. ANALYSIS OF ASKARI BANK: .................................................................................. 34
4.1 SWOT Analysis of ASKARI BANK: .................................................................... 34
4.2. PEST Analysis: ........................................................................................................ 37
5. CONCLUSION & RECOMMENDATIONS: .................................................................. 40
5.1. Conclusion: ......................................................................................................... 40
5.2. Recommendation: ................................................................................................... 41
References:..................................................................................................................... 42

CHAPTER NUMBER 1
1. INTRODUCTION
1.1. Background of Industry:

Askari Bank limited since 1991 has played a pivotal role in the development of
Pakistan. Like other multinational banks, ABL has adopted a customer-oriented
approach, in order to provide quality products according to customer needs and stands
as a role model for the other banks. The internship is followed by a comprehensive
report writing, which is presented to the respective business administration
department.
Bank Origin:
There are distinctive perspectives about starting point of "Bank".
As indicated by a few people word "Bank" is gotten from "Bancus" which implies a
"Seat". They contend their point by this that they executed their business of cash trade
on the seats. In the event that the matter of any specialist fizzled, his seat was
decimated by the general population. Because of this training "Bankrupt" was like wise
utilized. Then again a few people say that "Bank" is gotten from German time "Bank"
was supplanted by "Bank" which is classified "Banco" in Italian dialect.
Formal Definition Of Bank:

Bank is an institution, which revives money from one party and lends to another
party.
There are the following types of banks:
 Central Bank
 Commercial Bank
 Industrial Bank
 Exchange Bank

Meaning of Bank:
There are extensive number of definitions, which are offered by the distinctive
creators keeping view the different definitions we may characterize the bank in the
accompanying words.
"A bank is dependable budgetary establishment which gets the cash from one
gathering of individuals and loans to other gathering of individuals. So bank plays out
the obligation of monetary go-between among the general population and makes the
credit cash."
Development of Banking In Pakistan:

The whole keeping money business was controlled by the non-Muslims before
the parcel of sub-landmass. At the point when Hindus turned out to be certain about
the division of the sub-mainland, they furtively began to exchange their cash-flow to
the protected places in India. The assets and different resources were exchanged to
India.
Foundation of State Bank:

After autonomy it was impractical for Pakistan to setup the Central Bank quickly.
The Reserve Bank of India went about as a national bank of Pakistan till thirteenth
September 1948. In any case, it couldn't secure the interests of Pakistan.
To expel the money related troubles and build up sound keeping money
framework. Government set up the State Bank on first July 1948. In the improvement,
to managing an account framework it assumed essential job as a Central bank of the
nation.
Business Bank:
Business Banks are organizations that execute business of keeping money in
Pakistan business banks have comprised the most critical wellspring of institutional
credit in the economy of Pakistan.

1.2. Brief History of ASKARI BANK LIMITED in Pakistan:
1.3. History of Askari Bank Limited:

Askari Commercial Bank was incorporated on October 9th, 1991 as a Public
Limited Company and is principally engaged in the business of commercial banking.
The Bank obtained business commencement certificate on February 23rd 1992 and
started operations from April 1st 1992.Askari Commercial Bank is a Scheduled
Commercial Bank and is principally engaged in the business of Banking as defined by
the Banking Companies Ordinance 1962. The bank is listed on the Karachi, Islamabad
and Lahore Stock Exchanges.
ACBL was founded by the Army Welfare Trust which is a charitable

organization formed to cater to the needs of widows and orphans of Army personnel.
The AWT was assisted by two overseas Pakistanis, who hold a significant stake in the
bank’s equity.The Bank’s constitution requires the chairman to be the Adjutant General
of the Pakistan Army. Besides the chairman, the 12 directors also include the MD of
the AWT (Ex-Army), four other retired senior army officers and two overseas sponsors.
Army appointed directors do not influence the daily operations of the bank as their
presence is intended to provide a general policy framework. The remaining top
management of the bank is sourced out from other Pakistani and foreign banks
operating in the country.

1.4. Introduction of Askari Bank Limited:
Askari Bank Limited is a Pakistani bank currently owned with a majority share of
50.57% by the Fauji Foundation. It is a Pakistani bank which offers a wide portfolio of
services ranging from basic banking facilities and credit options. It has a network
consisting of 222 branches and the operating in three regions in Pakistan namely
North region, Central region and South region with Khyber Pakhtunkhwa,Azad Jammu
Kashmir and Gilgit Baltistan making up the North region while Punjab lies in the Central
region and Sindh and Baluchistan making up the South region. Askari Bank Limited
has a total of 263 ATM’s (Automated teller machine) located across Pakistan
customers of other banks and also has its operations in Bahrain. In 2009, its revenue
was Rs.1.1billion, its net income was Rs.9.03billion, its total assets amounted to Rs.
25, 432 billion and it had 7279 employees. The map of Pakistan illustrates the major
cities where Askari Bank carries out its operations.

1.4.1. Vision Statement of ASKARI BANK:
“To be the bank of first choice in the region”

1.4.2. Mission Statement of ASKARI BANK:
“To be the leading private sector bank in Pakistan with an international

presence, delivering quality service through innovative technology and effective
human resource management in a modern and progressive organizational culture of
meritocracy, maintaining high ethical and professional standards, while providing
enhanced value to all our stakeholders, and contributing to society”.

1.4.3. Corporate Information:
Board of Directors:
Chairman:
Lt Gen Syed Tariq Nadeem Gilani, HI (M) (Retd)
Directors:
Lt Gen Tariq Khan, HI(M) (Retd) Lt Gen Javed Iqbal, HI (M) (Retd)
Mr. Qaiser Javed Lt. Gen. Shafqaat Ahmed (Retd)
Syed Ahmed Iqbal Ashraf Mr. Mushtaq Malik

Registered Office:
AWT Plaza, The Mall,
P.O Box 1084,
Rawalpindi.
For Investor Relations Contact:
Phone: 051-8092624
E-mail: ir@askaribank.com.pk
Head Office:
Third floor, Plot No.18
NPT Building, F-8 Markaz, Islamabad.
Phone: 051-8092000, 051-2857424-39
Fax: 051-2857448

1.4.4. Core Values of ASKARI BANK:
Commitment: Passionate about our customers’ success and delighting them with
quality of our service.
Integrity: A distinctive investment, delivering outstanding performance, return and

value.
Fairness: Exemplary compliance, governess and business ethics.
Teamwork: Caring for our people and helping them to grow.
Service: Dedication towards social development and improvement in quality of life.
1.4.5.Corporate Social Responsibility:
Corporate Social Responsibility (CSR) is an integral part of the way we do business

at Askari Bank, and is a vital element of our strategy. As a socially conscious
organization, Askari Bank actively contributes to the lives of the less privileged through
various charitable organizations that work for the welfare of the society. We promote
various initiatives that encourage community growth and development. As such,
Askari Bank contributes to a number of programs related to education, health and relief
work, environmental causes, cultural endeavours and sports events.
We have also initiated an in-house training program for the graduate children of our
less-earning employees with the aim of enhancing employment opportunities for them.

1.5. Branch Hierarchy:

The hierarchy of ASKARI BANK LIMITED follows:

1.6 . Business/products and services:
PRODUCTS:
Corporate and venture managing an account includes two divisions as pursues:
a) Corporate Banking Division
b) Investment Banking Division
Askari Bank offers Corporate and venture keeping money to full fill business
prerequisites through one window issues arrangement. Persistent business require
investigation for new items increase is occurring under corporate and venture
managing an account. Mr. Tahir Aziz, Group Head, Corporate and venture saving
money. Corporate and venture managing an account items are as per the following:
Corporate Banking Division:

CBD is long haul colleague that is equipped to help in meeting business
development goals. The business is overseen by a group of expert who comprehend
prerequisites and can solidly remain by side.
Committed relationship directors for every one of corporate customers guarantee

fulfillment, which is our best need. Relationship arranged standpoint centers after
giving a total cluster of custom-made financing arrangements, that are useful and
financially savvy, some of which include:
 Working Capital Facilities
 Term Loans
 Structured Trade Finance Facilities
 Letters of Guarantee
 Letters of Credit
 Fund Transfers/Remittances
 Bill Discounting
 Export Financing
 Receivable Discounting

SERVICES:
Bank provides services as follows:
a) Consumer Banking Services
b) Islamic Banking services
Consumer Banking Services: Under consumer banking services following are

products.
• Askari Card
• Value plus Deposit
• Personal Finance
• Mortgage Finance
• Business Finance
• Travelers Cheque
Master cards
1. 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.
2. Value plus Deposit:

Askari Bank introduced value plus deposit account which gives assurance of
immense financial autonomy and protection.
3. Personal Finance:
Askari bank provide personal finance product which help to its borrower to come up
with all the inelastic demands. This can be pay back to bank on easy installments.
4. 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 a repayment tenure up to 20
years.

5. ASK 4 CAR:
This financing can be used to finance both new and used cars
with an 18% markup for the 3 year plan, 19% for the 4 year plan
and 20% for the 5 year plan. The down payment that can be made
in this financing ranges from a minimum of 15% to a maximum of
60%. Insurance is mandatory in this financing and for used
vehicles the markup rate is slightly higher with a 20% markup for
the 3 year plan and 21% for 4 year plan and for the used
vehicles, they must not be older than 5 years the time of loan.
6. Business Finance:
ABL is providing loans to small and medium size business enterprises under Askari
Bank's Business Finance Scheme. Our goal is to offer a loan, which enables business
community to receive the financing required by them based on their cash flows. Ore
valued customers can enjoy the convenience of getting financing on attractive terms
with the minimum processing turnaround time.
7. Traveler Cheques:
The range of our products and value added services enhances with introduction of
Rupee Travelers Cheques (RTCs) launched in March 2002. In spite of our constraint
on issuing higher denomination of RTCs against restrictions imposed by the Central
Bank of Pakistan we have been striving to attain our shares with sizeable portfolio.
Total volume handled by the department during the year 2004 is Rs.798 Million
8. Askari Master Card:

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. These cards may be of Gold, Silver and
Platinum.
Islamic Banking Services:

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

CHAPTER NUMBER 2
2. DEPARTMENTS AND POLICIES
2.1. Divisions of Askari Bank Limited:

There are following divisions which includes:
1. Investment Product Division:

Investment product division (IPD) is responsible for the development and
managing of brands that serve the investment needs of the retail market. It focuses on
deposits mobilization and provision of value added services and products based on
modern technology.
IPD offers a range of products design to carter for diverse customer needs, such as;
ASK CARD (Debit Card) cash management services, Rupee Travelers Cheques and
customer deposit products such as Askari Bank’s value plus.
2. Credit Cards Division:

The credit cards division (CCD) is responsible for managing the credit cards
business of the bank. CCD is headquarter in Karachi as separate strategic business
unit (SBU) of the bank with all internal functions including credit, operations, marketing,
sales, finance and audit, Perform independently. Its present focus is on managing the
‘Askari Master Card’’ brands, accepted worldwide also in 4000 locations in Pakistan.
3. IT Division:
The electronic technology division (ETD) is responsible for managing the
bank’s technology needs. This includes not just establishing and maintaining
technology infrastructure for providing operational support to all units of h bank, but
also encompasses introducing latest state-of-the-art technology-driven products and
service delivery systems.
4. HR Division:
The human recourse division (HRD) is responsible for managing and
facilitating the most important strategic resource of any organization. Its focus is on
joining the potential and energy of a professional work force to ensure effective
attainment of goals set by the bank.

5. Finance Division:
The finance division (FND) is the hub of all financial information for
maintaining statutory accounts and measuring the performance of the bank. FND is
responsible for maintaining the accounting records and systems in accordance with
internal policies, regulatory requirements, corporate governance and international
accounting standards.
6. Assets Products Division:

Assets product division (APD) is responsible for the development and the
managing of retail credit schemes and is presently offering several innovative
consumer credit products. In order to cater for the increasing demand for retail credit,
APD, during 2005, started 4 more retail asset unit, taking the total no to 14,
countrywide.
2.2. Managerial Policies of Askari Bank:

1. Financial policies
2. Procurement policies
3. Marketing policies
4. Promotional policies
5. Lending 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
a) 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 open various types of accounts for its customers Services are provided
for earning.
 Interest income and commission bank providing the services to its customer.

b) Use of Funds:
After the acquisition of the funds their acquisition become necessary.The bank
seek 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.
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 are rececived from interest on loans
advances.
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.
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 the ABL.
 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
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. ABL establishes
its purpose through:
1. Direct contact with customers.
2. Relation with business organizations.
3. Community relations.
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 ABL are as follows:
1. Bank prefers to advance loan to their account holders.
2. Loan is given to reliable person only.
3. No political loan is sanctioned by bank.
4. Any account holder can apply for running finance or demand finance.

2.3 DEPARTMENTS:
Departments of ASKARI BANK:
Account Opening Department:

This department is responsible for the opening and closing of accounts. In
consideration of Askari Bank, the Account Holder/Depositor or Investor would be
bound by the terms and conditions written on the account opening form.
The first part establishes the preference regarding the type of account to be
maintained. The various choices offered in this regard are:
a) Current Account
b) Saving/ PLS Account
c) Royal Profit Account
d) Term Deposit Account
e) Basic Banking Account
a) Current Account:
Current account enables the client to do cash transactions in a more efficient
manner.
Features:-
 Current Accounts can be opened in the Askari bank with the sum not less
than Rs.5, 000.
 No deduction of Zakat
 Account close charges Rs.150
b) Saving / PLS Account:
In Pakistan (PLS) saving account was introduced in January 1982.Individuals
who wish to invest their money in order to get profit maintain this account.
Features:-
 The minimum balance requirement for opening the account is Rs.10, 000.
 There can be profit or loss on the investment of the Customer’s funds
deposited with the bank and this amount shall be acceptable to the
Customer. The profit is paid half yearly.
 Deduction of Zakat
 Withholding tax on profit @ 10%
 No Service Charges to close the account
 Service Charges for maintaining minimum balance Rs.50
 Online Charges Rs.150
Term Deposit Account:

A term deposit is a deposit that is made of a certain period of time. At the end of
specific period the customer is allowed to with draw the principal amount.

Features:-
 Fixed Profit
 The longer the period for which the amount is kept higher is rate of interest.
 Term Deposit usually for the period of three months, six month, One year and
five years.
Remittances Department:
Meaning of Remittance:-
“Remittance is transfer of funds from one place to another or from one person
to another.”
A Remittance is an important service provided by banks to customers as well as non-

customers. Since it is not a free service it is a source of income for the bank.
Parties Involved In Remittance
Four parties involved in remittance:-
 Remitter
 Remittee
 Issuing Bank
 Paying Bank
Remitter:-
One who initiates, or requests for a remittance.The remitter originating branch, asks
for a remittance to be made, and deposits the money to be remitted. The bank charges
him a commission for this service. He may or may not be the branch’s customer.
Remittee:-
A remittee is also called the beneficiary, or the payee. The person in whose name the
remittance is made.A remittee is also the one who receive the payment.
Issuing Bank:-
The bank that sends or effects the remittance, through demand drafts, telegraphic
transfers, or Mail Transfers.
Paying Bank:-
Paying Bank also known as the drawee branch.The branch on whom the instrument
is drawn. It has to make the payment (usually located in a different city country).
Instruments Used In Remittances

 Demand Draft (DD)
 Pay Order (PO)
 Pay Slip
 Call Deposit Receipt (CDR)
 Telegraph Transfer
 Rupees Traveler Cheque (RTC)

Cash Department:
The cash department is the most important department of the bank. It receives cash
from customers and then deposits it into the accounts of the customers.The officers in
this department are called teller and there were four tellers at the counter.This
department involves in two activates:-
 Deposit cash in customer’s account
 Make payments from customer’s account
Deposit Cash in Customer’s Account:-

When the customer want to deposit amount in his account at opening of account or
after that then he has to fill a deposit slip that shows the amount and the account in
which the cash will be deposited. Then teller will receive amount and credit the
customer’s account that shows
increase in customer’s bank account.
Make Payments from Customer’s Account:-

When the customer draws a cheque on the bank to pay a certain amount then teller
will debit the customer’s account that shows reduction in his account Askari Bank.
There are two types of cheques that are:
Open Cheques:-
Open Cheques are those cheques, which are paid across the counter of bank.Open
cheques may be
 Bearer Cheques
 Order Cheques.
Bearer Cheque:-
If the drawer orders the bank to pay a stated sum of money to the bearer, it is called
a bearer cheque. Any person who lawfully possesses a bearer cheque is entitled to
receive payment of that cheque.
Order Cheque
The amount of this cheque is payable to the person whose name is written on the face
of the cheque. The amount is paid at counter after identification of that person.
Crossed Cheque
The amount of this cheque is not paid at counter. The amount of this cheque is
transferred to the person’s account whose name is specified on the cheque. Two
parallel transverse lines are drawn across the face of the cheque.
Kinds 0f Crossing:
Legally there are two kinds of crossing
 General Crossing
 Special Crossing

Deposits Department:
It is the most important department of the bank and working of banks initiate from this
department.
There are two types of deposits:
 Demand Deposit
 Time Deposit
 Demand Deposit:
These deposit are payable by the bank on demand and no profit is given on
these deposits.
It includes:
Current Account
Call Deposit Receipt
 Time Deposit:
It includes:
 PLS saving Deposit
 Askari Special Deposit Account.
 Askari FISDA Account
 Askari FAIDA Accounts
 Value Plus Saving Deposit
 Notice Deposit
 Askari Advantage
 Term Deposit
Clearing Department:
Meaning of Clearing:-
The 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 at specified time in an efficient way.”
Instruments to be presented in Clearing:

 Cheques
 Demand Drafts
 Pay Orders

TYPES OF Clearing:
There are four types of clearing:-
 Inward Clearing
 Outward Clearing
 Intercity Clearing
 Same Day Clearing
 Inward Clearing:
Those Cheques and other negotiable instruments which are drawn on Askari
Bank, sent by other banks, constitutes the inward clearing of Askari Bank. After having
all the stamps and dates of cheques confirmed, the concerned drawer’s accounts are
debited in Askari Bank Limited.
 Outward Clearing:
When cheques and other negotiable instruments drawn upon other banks like,
MCB, ABN-AMRO or ABL of the same city (Lahore) are presented in Askar Bank to
deposit them in the respective payee’s accounts, these instruments are lodged In
outward clearing of Askari Bank.
 Inter City Clearing:

The cheques that are presented in intercity clearing are of another city and
received by air.In this type of clearing the bank confirm at that time that the cheques
are clear or not and give to the rider.

CHAPTER NUMBER 3
3. EXPERIENCE AT ASKARI BANK:

In Askari Bank, I really enjoyed working with the staff. It was impossible to work in all
departments within the limited time period. But the staff of the branch provided me the
opportunity to work with in different department for the sake of practical knowledge. I
feel highly indebted to work in ABL center. During my internship period I have work in
different department and learned more.
 How to deal with the different type of customer.

 Account opening
 Cheque book issuance
 Outward clearing
 Voucher filling
 Experience of working in a well reputed organization.
Internship of six week:
First Week :
on the very 1st day I was introduced with how to arrange the cheques amount wise
and how to arrange deposit slips and then i have learned the work of activity. Activity
means work activity of all department for example the cash department, deposit
department. Account opening department.Miss Nimra head of clearing department
and locker operator daily make a report and then I have sort out all the deposit slips
cheques bills fees and match the amount in words and amount in figures date and the
serial no of cheques with that report. Sometime amount will be different on cheques
and name match with the report. That activity means to correct all the work on daily
basis.if these activity not done may be the bank will suffer loss.The 1 st week I have
learned the work of Activity.
Second Week:
Inside clearing:
ABL clear the Cheque through emails in which they send email to other ABL branches.
If cheques are from ABL other branches with in city which they are not apply charges.
Moreover: if cheques are belonging to different bank like ALLIED bank, HABIB bank
etc. ABL send this Cheque to Karachi head quarter through NIFT and they send it in

state bank. it clear in two are three days and after clearing the amount on cheques are
credit or send to customer account.
Outside clearing:
if the Cheque are belong to ABL branch or any other branch that are located in
Rawalpindi or any other cities of Pakistan then cheques are to Rawalpindi head office
then they are clear it through state bank of Pakistan and resent to Lahore attaching
intercity clear advisory.
Third Week:
In this week, I was introduced with remittance department.
Remittance working:
Remittance means transfer money any ware where customer want to send .AKBL
offering four type of services regard it to their customer who want to transfer their
money within Pakistan.
Instruments used for remittance:
 Call deposit receipt CDR

 Pay Order
 Cheque
 CDR: (call deposit receipt):
It’s similar to pay order but the main difference between in it that its manual way of
transfer the money and pay order is electronic way for transfer the money. Its consist
call deposit receipts from in which customer mention the name of man to whom they
want to give money with amount and also mentioned account number with name in
the below of page with their signature. It made free of cost that’s way many customer
prefer CDR for money. Additionally some customer have no account in the bank they
can also made CDR through submitted the amount in the bank and bank will made
CDR Behalf of this amount and the customer will get this demand draft from bank and
bank will made CREDIT VOCHER in which bank credit his account in the name of
CDR and DEBIT his account in the name of CDR and credit to who show present
DEMAND DRAFT and keep it in their record.
 PAY ORDER:
It’s an electronic page in which customer told name of person to whom they
want to give money with amount. A fund transfer form attached with this pay order in

which all details are mentioned about beneficiary and customer name with amount
and finally this fund transfer forms kept in bank records and pay order gave to
customer by charging same commission on it.
 Cheque:
Some customer gives their Cheque and wants to transfer money in another
account in another bank like Allied bank, Faisal bank, Habib bank etc. bank debit their
account and sent amount to other amount to other banks accounts but ABL deals
those Cheque which belong to ABL other branches in this or outside cities. If customer
wants to transfer the money to ABL other branches that are located in Rawalpindi then
he will fill deposit ship in which will write account number with the amount of ABL
Rawalpindi and pay some commission in return to bank. Then ABL will debit the
customer account and credit the accounts that are in Rawalpindi.
Fourth Week:
In fourth week, I was introduced with Account opening department. Ms. Zainab work
in Account opening department. She inform me about Account opening form that how
we fill the form of Account opening. First of all she tells me that there are two types of
account first is minor or single Account and second is Joint Account.
 Minor Accounts
The minor can only open the saving account and only jointly with their guardian.
And guardian will also sign the AOF and SS card.
Joint Accounts
The bank will fulfill the stop payment instruction of any Cheque stuck by any
member of joint account but removal of these instruction must be signed by all the
member
Documents required to open individual account are:

i. Account Opening form (AOF)
ii. Specimen Signature Card
iii. Copy of NIC
Documents required for partnership Firm:
Account Opening Form
 SS Card
 Copy of NIC of all Partners
 Copy of registration certificate
 Copy of partnership Deed

Fifth Week:
In this week, I was introduced with Deposit Slips that how we fill deposit slips. Miss
Ruba tells me that first of all we write the account number then name of the person
who deposit the amount then the bank name branch name, cheque No, amount in
words and amount in figures and signature of the depositor and their mobile No.
receiving is given to the customer and the message is received when the money is
transfer to the bank.
In case of clearing cheques the amount is transfer after 4 to 5 days in the account.Miss
Ruba informed me that in case of same banks the money will be transfer soon. But in
case of different Banks as like from HBL Bank to Askari Bank the money will will
transfer after 4 to 5 days.
Sixth Week:
In this week I learnt how to enter the customer detail are enter in cheque requisition
register in which operation manager received the requisition slip from customer
services department and then accordingly the issue the cheque book to customer. I
have been given three type of cheque book that name are current cheque book, PLS
cheque book, Assan current cheque book. There are two blocks in cheque book
register.
In first block:
I did entry of current cheque books with the name, account number, cheque number
from start to end from customer. Addition: when the customer came to taking the
cheque book then they sign with the date of receiving the cheque book and operation
manager also sign in it for verification.
In second block:
I also entry for PLS and Assan current with the same method that I have mention
above for current cheque book in which I entered all the detail of customer. I also learnt
how operation manger apply request online for cheque book. In which he take all
cheque requisition slip and specimen signature card from customer services
department then he scan all card and enter the Signature of customer in system and
this date transfer supervisor who verify all signatures when customers comes for
withdrawal cash from their accounts.

CHAPTER NUMBER 4
4. ANALYSIS OF ASKARI BANK:
4.1 SWOT Analysis of ASKARI BANK:

Strengths (S) includes internal capabilities, resources and
positive situational factor they may help the company to
serve its customers and achieve its objectives.
Weakness (W) includes internal limitations and negative

situational factor that may interfere with the company’s
performance.
Opportunities (O) are favorable factors or trend in the external environment that the
company may be able to exploit to its advantage.
Threats (T) are unfavorable factors or treads that may present challenges to
performance.
Strengths:
First we analyze the strengths of ABL that are as follows:
 ABL is one of the largest private banks with deposit base of Rs.167.68
billion showing constant growth over the period 1999 till day and with
many online branches in major cities of Pakistan.
 I.T group of ABL has been able to create the largest network for secure
electronic financial transactions in Pakistan.
 With over 5,319 online ATMs network ABL is again an undoubted

industry leader with connectivity extended to above than twenty five
cities of Pakistan. ABL ATMs not only serve 24 hours cash convenience
but also improve on the counter services and turnaround time at cash
counters.
 The ABL ATMS Master Card has become a global service furthering the
convenience to the customers. Traveling customers can access their
accounts from a large number of internationally deployed ATMs and
point of sale unit.

 ABL is a subsidiary of ARMY WELFAE TRUST (AWT) so it has a strong

army background and it definitely adds to its prestige and provides it an
edge over the competitors.
 In order to save their customers’ time, ABL provides the good Phone
banking service that is very attractive especially for those customers
who don’t have time to personally visit to the bank.
Weaknesses:
The weaknesses of ABL are listed as:
 Due to risks such as political economy and legal the bank has suffered
losses the main reason was piling up to of large amount of irrevocable
debts.
 The bank has still some of the traditional ways of operations in this
advanced technological environment. ABL has use computerized
accounting system but, still the bankers use to make their entries in the
accounting register also.
 Bank’s marketing department is not very strong. Accumulated losses

pushed the bank to cut down its promotional activities in order to reduce
expenses for last few years.
 The management system in ABL is quite centralized leaving all the

decision-making activities to the upper management only. Employee
empowerment is also over looked due to such management policy.
 There is no specific training program arranged for the new recruiters.

They have to learn based on their observations and also their mistakes.
It takes a bit time for the fresh one to learn the banking the result is huge
amount of blunders, mistakes etc.

Opportunities:
These are positive external environmental factors affecting the ABL:
 New concept of mobile banking has been introduced by the bank, which will
prove to
\ be remarkable success in the field of consumer banking.
 Askari bank is an active player in the loan business. Its strength in loaning
stems from its ability to forge strong relationships not only with borrowers but
also with bank investors. Bank can capture more markets by introducing new
products for business community, as it is the only group, which can contribute
more towards increasing the assets of the bank.
 There is a large pool of free MBA graduates who can be hired to achieve
professionalism on its organizational culture.
 ABL also has an opportunity to expend its new technological advancement like,
Tele banking and Internet banking facilities in order to serve the customers
more efficiently
 It can be an opportunity for ABL to introduce ATM also as a credit card which
will invite a different segment and which will improve profitability. They can also
cut costs in this way
Threats:
 Political instability is also threat for the bank because instability leads to
lower business. The same situation is prevailing in Pakistan.
 In our county, the rate of inflation is increasing along with the

unemployment. So due to increase in price of the products, the savings
of the nation is decreasing with passage of time. So it is threat for the
banking sector. In the future, the deposits of the bank will decrease.
 As the banking procedures are complicated that is why general public

takes interest into other options of investments like in shares of
companies and in Term Finance Certificates. Being a commercial bank,
ABL faces considerable competition in attracting deposits from
individuals or small investors.
 Employee satisfaction level is very low in ABL due to stiff managerial

policies. Thus, its employees shift to other organizations whenever they

get an opportunity resulting in high turnover which is not a healthy sign for the bank.
4.2. PEST Analysis:
PEST is an acronym that stands for Political, Economic, Social, and Technological. It
is used to describe an analysis that is used for determining the opportunities and risks
of global expansion. Askari bank identified sustainability as a means of recognizing
and managing the economic, social and other environmental issues across the groups
and at the same time, contributing to the wellness of society. PEST analysis helps in
identifying the external factors that are or may affect the operations of an organization.
PEST analysis of ABL is as follows
Political Analysis:
Over past 10 years, Pakistan has been a victim of political instability. The main reasons
behind it are war on terror, martial law, American interference in Pakistan and
corruption. Operating in such a volatile political environment, ABL is facing numerous
challenges.
ABL has been surrounded by political factors such as
 Unpopular and weak government
 High level of corruption at all political levels
 Intense political activities throughout the country
 Violence in Karachi
 Military operation in SWAT And FATA
 High tax rates
Due to the currents law and order situation, ABL business was negatively affected as
people particularly foreigners lost their confidence in Pakistan and hesitated to keep
their deposits in Pakistan. Since Askari bank is part of Askari Welfare Trust which is
run by Pakistan Army so it has the advantage of not being interfered directly by the
government but political forces impact Askari’s business through consumers and
businesses which are affected directly by political instability.
However, ABL has been successful in meeting all these political challenges as it has
the advantage of a strong army background and also because it is considered as the
most safe bank in the eyes of the customers.

Economic Analysis :
ABL belongs to an “agro-based” economy dwelling in a developing country Pakistan.

So there are number of opportunities waiting for ABL as being a developing nation,
investment potential is very high and also high loan-business may be expected.
Pakistan has several characteristics that make for a favorable banking sector outlook
for instance buoyant demographics, a domestic economy geared towards private
consumption and an extremely under-banked population. But unfortunately, the
economic conditions of Pakistan are not that ideal. ABL, like other banks has been
bombarded with frequent economic loops and bounds namely:
 High rate of inflation
 Substantial decrease in foreign direct investment
 Fluctuating interest rates
 High cost of living
 Huge gap between different income groups
 A decrease in disposal income
 Immense increase in government debt
Due to high rates of inflation, people have been driven away from the culture of savings
as the cost of living has increased and thus customers have few or no savings to
deposit with bank. The gap between different social classes has also grown strong
and vast thus it has become quite a challenge for ABL to meet the needs of all income
groups. Energy crisis on the other hand has negatively affected many businesses who
are also the customers of ABL.
Loans accepted from the World Bank by our government have led to huge national
debt, which is the cause of many economic ills, particularly the depreciation of Pak
rupee and stiff tax policies. Thus ABL is forced to increase its prices charged for the
services and products that it offers.

Social Analysis:
Being a socially responsible bank, ABL takes a keen interest in analyzing and then
anticipating social changes taking place in the society. In the past few years,
customers have become more conscious about Islamic modes of banking and
therefore, ABL has introduces Islamic banking in some of its branches.
People have become more comfortable with IT based products and services as it
ensures convenience. There has been a marked increase in the use of credit cards in
Pakistan but the usage is currently limited to educated middle class only. At the same
time accelerated by the spread of internet in the country people are more inclined to
us the net to do banking transactions specially bill payments and within the bank
transactions. Owing to this, ABL was the first bank to introduce ATM-bus service, I-
banking and tele-banking.
Since Askari bank has the reputation of being a conservative bank so its consumers
are quite loyal and will stay with the bank even under tough economic situation or in
the presence of alternatives.
Technological Analysis:
IT has made the world a global village where everything is just a click away from your
hand. Askari has recently been investing heavily in Information Technology as a
means of competitive advantage against large Pakistani banks and has now gained
the status of online banking enabling real-time transactions to be made. The
technology makes it possible to empower the system and establish a competitive
advantage. Customers readily accept technological products such as ATM, Master
card, and I-banking.

CHAPTER NUMBER 5
5. CONCLUSION & RECOMMENDATIONS:
5.1. Conclusion:
Working in Askari Bank has given me an enormous certainty support. I would
now be able to distinguish issues assess the choices and after that execute the most
ideal choice with the end goal to explain them, for me this is one of the greatest
accomplishments. Interfacing with clients
I observed in these weeks that ABL is doing regarding offering services that they are
providing to their customers. ABL is also guided to their customers in a very well way
and give support in any problems related to account opening in bank. Customers are
also satisfied and have good relationship with ABL bank.

5.2. Recommendation:
 The bank should improve and increase its branch network in Pakistan as well
as in foreign countries.
 More and more facilities should be offered to general public instead of a specific
group of society.
 Bank should increase its advances by financing small-scale businesses to earn
better profit.
 House building finance facility should be offered to general public.
 The number of lockers should be increased.
 Training of the staff should be carried on regular basis in the field of banking
and operating computers.

References:
https://www.scribd.com/doc/27260636/Report-on-Askari-Ban
http://akbl.com.pk/investor-relations/financials/annual-reports/
http://www.academia.edu/4263846/Analysis_of_Management_Function_of_Askari_Bank
https://www.linkedin.com/in/sakina-alam-70732622
https://www.scribd.com/doc/47088526/Products-of-Askari-Bank

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INTERNSHIP REPORT 2018

INTERNSHIP REPORT ON ASKARI BANK LIMITED

Lahore Garrison University Page 1

INTERNSHIP REPORT ON ASKARI BANK LIMITED

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Sr. No. Abbreviations/Acronyms Full Form

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1.1. Background of Industry:

Formal Definition Of Bank:

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Development of Banking In Pakistan:

Foundation of State Bank:

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1.2. Brief History of ASKARI BANK LIMITED in Pakistan:

1.3. History of Askari Bank Limited:

ACBL was founded by the Army Welfare Trust which is a charitable

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1.4. Introduction of Askari Bank Limited:

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1.4.1. Vision Statement of ASKARI BANK:

“To be the bank of first choice in the region”

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1.4.2. Mission Statement of ASKARI BANK:

“To be the leading private sector bank in Pakistan with an international

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1.4.3. Corporate Information:

Lt Gen Syed Tariq Nadeem Gilani, HI (M) (Retd)

Mr. Qaiser Javed Lt. Gen. Shafqaat Ahmed (Retd)

Syed Ahmed Iqbal Ashraf Mr. Mushtaq Malik

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1.4.4. Core Values of ASKARI BANK:

Integrity: A distinctive investment, delivering outstanding performance, return and

Fairness: Exemplary compliance, governess and business ethics.

Teamwork: Caring for our people and helping them to grow.

Service: Dedication towards social development and improvement in quality of life.

1.4.5.Corporate Social Responsibility:

Corporate Social Responsibility (CSR) is an integral part of the way we do business

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1.5. Branch Hierarchy:

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1.6 . Business/products and services:

Corporate Banking Division:

Committed relationship directors for every one of corporate customers guarantee

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Consumer Banking Services: Under consumer banking services following are

2. Value plus Deposit:

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8. Askari Master Card:

Islamic Banking Services:

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2. DEPARTMENTS AND POLICIES

2.1. Divisions of Askari Bank Limited:

1. Investment Product Division:

2. Credit Cards Division:

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6. Assets Products Division:

2.2. Managerial Policies of Askari Bank:

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