INTERNSHIP REPORT ON

ASKARI BANK LIMITED UPPER ADHA

BRANCH MUZAFFARABAD

BY
KHIZRA IRSHAD
ROLL NO: 40915
BBA (HONS) FINANCE

DEPARTMENT OF MANAGEMENT SCIENCES

HAZARA UNIVERSITY GARDEN CAMPUS
MANSEHRA

SESSION 2015-2019

1
 INTERNSHIP REPORT ON
ASKARI BANK LIMITED UPPER ADHA
BRANCH MUZAFFARABAD

The Internship Report which is submitted to the Department of Management Sciences

Is in the Partial Fulfillment of the Requirements for the Degree of Bachelor of
Business Administration.

DEPARTMENT OF MANAGEMENT SCIENCES

HAZARA UNIVERSITY GARDEN CAMPUS
MANSEHRA
SESSION 2015-2019
2
 INTERNSHIP REPORT ON
ASKARI BANK LIMITED UPPER ADHA
BRANCH MUZAFFARABAD

APPROVAL SHEET

Supervised By:

Signature: ______________________________

Name: Ma’am Saira Ahmed Awan

Designation: LECTURER

Organization: ______________________________

External Examiner:
Name: ________________________________

Signature: ________________________________

Chairman:
Name: Prof. Waseem

Signature: ________________________________

DEPARTMENT OF MANAGEMENT SCIENCES

HAZARA UNIVERSITY MANSEHRA
i
 DEDICATED

To
My Lovely Parents;
Who at all times pray for my successful future
& To My Devoted Teachers;
Who helped me finish this challenging task

ii
 ACKNOWLEDGEMENTS

God Al-Mighty is Worthy of all acknowledgements Whose Grace has no limits and
who gave me the strength and will to complete this report.

Secondly I am thankful to my parents who supported me morally and financially for

the last two years despite of their limited resources and social pressures.

Special thanks to my internship supervisor Ms. Ma’am Saira for her kind co-
operation, guidance and support to compile this report.

I would like to pay special thanks to Mr. Talha Iftekhar (Askari Bank Limited
Muzaffarabad Upper Adha Branch) for his constant guidance and motivation.

And last but not the least, the entire staff at Askari Bank Limited, for being very
cooperative and courteous with me and providing me with the congenial environment
at the bank during my six weeks stay at Askari Bank Limited.

Special gratitude to all my honorable teachers who taught me different courses during
the last two years with addict zeal and zest.

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 EXECUTIVE SUMMARY

Now a day’s strong and efficient capital and financial institutions are the basic
requirements of each county. So no country can be considered strong without having
strong enough capital and financial institutions and markets. One of the components
of these financial institutions is the bank. No one can deny the role the banks are
playing in the economic development of a country.
Bank play significant role in mobilizing saving thus taking great part in capital
formation process. Their role in development of a country has increased, with the
advent of modern technology. The intense competition, among banks, the
privatization of the financial institution and financial liberalization in general are
gradually and continuously making the bank sector efficient and effective.
Because of the reason mentioned above banking has always been the main field of
interest for most of the students of business administration. It is also an academic
requirement to undergo internship therefore the main purpose behind this report is
partial fulfillment of requirement or the degree of BBA. The report is categorized into
the following chapters.
I have divided my report in five chapters.
First chapter is about the introduction of the report. In the first chapter introduction to
the report, background of study, scope of the study, merits, limitation and scheme of
the study are given.
The second chapter is about history of Askari Bank, introduction to the organization,
its background, role and functions of organization, its core values, and miscellaneous
topics related to Finance department of AKBL. This chapter also includes
organizational structure of AKBL.
The third chapter is the major portion of the report. It covers structure of AKBL, the
different departments working at AKBL and working of capital management. This
chapter also gives the information about various products and services offered by the
Askari Bank Limited.
The fourth chapter of the report covers the analysis of the report and findings which
have been observed. Financial statements are analyzed horizontally and vertically.
Also the performance of the bank has been shown through ratio analysis and trend
analysis. Non-financial analysis including SWOT analysis of AKBL.

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The fifth chapter and the end of report is about recommendation based on the analysis
in chapter four. It mainly focuses on the recommendation pertaining to
management/administration, to let AKBL, capitalize on the opportunities and
overcome the weakness by using is strength

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Contents
APPROVAL SHEET ...................................................................................................... i
DEDICATED .................................................................................................................ii
ACKNOWLEDGEMENTS ..........................................................................................iii
EXECUTIVE SUMMARY .......................................................................................... iv
CHAPTER 1 .................................................................................................................. 1
INTRODUCTION TO REPORT................................................................................... 1
1.1. Introduction ........................................................................................................1
1.2. Background of study ..........................................................................................1
1.3. Scope of study ....................................................................................................1
1.4. Benefits of the study ..........................................................................................2
1.5. Limitations of study ...........................................................................................2
1.6. Data collection Methodology.............................................................................2
1. The primary source of data ................................................................................ 2
2. The secondary source of data ............................................................................. 2
CHAPTER 2 .................................................................................................................. 4
INTRODUCTION TO ASKARI BANK ....................................................................... 4
2.1. Brief History ......................................................................................................4
2.2. Vision .................................................................................................................4
2.3. Mission...............................................................................................................4
2.4. Core Values ........................................................................................................5
2.5. Awards and Achievement ..................................................................................5
2.6. Objectives ..........................................................................................................5
2.7. Corporate Philosophy.........................................................................................6
2.8. Corporate Information .......................................................................................6
2.9. Organization structure ........................................................................................8
2.10. Corporate Social Responsibility ........................................................................9
2.11. Inspiring Relationships ......................................................................................9
2.12. Inspiring Customer Relationships ......................................................................9
2.13. Inspiring Employee Relation .............................................................................9
2.14. Inspiring Ethical Values ...................................................................................10
2.15. Inspiring Technological Innovation .................................................................10
2.16. Corporate Citizenship ......................................................................................10
2.17. Inspiring Growth ..............................................................................................11
2.18. Inspiring Corporate Achievement ....................................................................11
2.19. Annual Account ...............................................................................................11
2.20. Corporate Banking and Financial Institutions group .......................................11
2.21. Corporate and Merchant Banking Division .....................................................11
2.22. Treasury ...........................................................................................................12
2.23. International Division ......................................................................................12
2.24. Operations and Credit Group ...........................................................................12
2.25. Retail Banking Group ......................................................................................12
2.26. Credit Card Division ........................................................................................13
2.27. Finance Division ..............................................................................................13
2.28. Training and Development Programme ...........................................................13
2.29. Foreign Trade and Correspondent Banking .....................................................13
2.30. Consumer Banking...........................................................................................14
2.31. Electronic banking includes: ............................................................................14

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2.32. Askari Bank’s Value Plus ................................................................................14
2.33. Ask Card ..........................................................................................................14
2.34. What Is Ask power? .........................................................................................15
2.35. Askari Bank’s Personal Finance ......................................................................15
1. One Of The Quickest Approval Processes Around!!! ..................................... 15
2. ASK SMART Cash .......................................................................................... 16
3. Car Financing Made Easy ................................................................................ 16
2.36. Askari Bank's Cash Management Services ......................................................16
2.37. Account and its Classification .........................................................................17
1) Definition of account ....................................................................................... 17
2) Classification of accounts ................................................................................ 17
2.38. Types of Accounts ...........................................................................................18
a. Current Deposit Accounts ................................................................................ 18
b. Pls (profit loss sharing) saving Account .......................................................... 19
c. Pls Term Deposit Account ............................................................................... 19
d. Pls Short Term Deposit Account ..................................................................... 19
e. Deposit at Call or Call Deposit ........................................................................ 19
f. Value plus Account .......................................................................................... 19
g. Foreign Currency Saving Account................................................................... 19
CHAPTER 3 ................................................................................................................ 20
FINANCIAL ANALYSIS ........................................................................................... 20
3.1. Consolidated Statement of Financial Position: ................................................20
3.2. Consolidated PLS: ...........................................................................................21
3.3. Consolidated Cash Flow Statement: ................................................................22
3.4. Current ratios: ..................................................................................................23
3.5. Cash ratios ........................................................................................................24
3.6. Operating cashflows to current debt ratio: .......................................................25
3.7. Turnover of receivables: ..................................................................................26
3.8. Assets turnover: ...............................................................................................27
3.9. Fixed assets turnover: ......................................................................................28
3.10. Net profit margins: ...........................................................................................29
3.11. Return on investment: ......................................................................................30
3.12. Return on equity:..............................................................................................31
3.13. Advances to deposits ratios:.............................................................................32
3.14. Investment to deposits ratios:...........................................................................33
CHAPTER4 ................................................................................................................. 34
SWOT ANALYSIS ..................................................................................................... 34
4.1. Strengths ..........................................................................................................34
4.2. Weaknesses ......................................................................................................35
4.3. Opportunities....................................................................................................35
4.4. Threats..............................................................................................................36
CHAPTER5 ................................................................................................................. 37
CONCLUSION AND RECOMMENDATIONS ........................................................ 37
5.1. Conclusion .......................................................................................................37
5.2. Recommendations ............................................................................................37
References .................................................................................................................... 38

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 CONTENT OF TABLES

Table 1 ......................................................................................................................... 23
Table 2 ......................................................................................................................... 24
Table 3 ......................................................................................................................... 25
Table 4 ......................................................................................................................... 26
Table 5 ......................................................................................................................... 27
Table 6 ......................................................................................................................... 28
Table 7 ......................................................................................................................... 29
Table 8 ......................................................................................................................... 30
Table 9 ......................................................................................................................... 31
Table 10 ....................................................................................................................... 32
Table 11 ....................................................................................................................... 33

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 CHAPTER 1

INTRODUCTION TO REPORT

1.1. Introduction

For the objective of degree completion of BBA we are permitted to carry out a six
week internship .This internship is related to banks or other organizations. So, for
completing my internship report I have selected Askari Bank Limited Muzaffarabad
Upper Adha Branch. During this internship I have learned from operational
department of Askari Bank Limited. I have also experienced how to deal with the
customer’s. At the end of this internship I have submitted the report to the
Management Sciences department of Hazara University Mansehra.

1.2. Background of study

The background of this study is to completing the degree requirement of BBA .The
main purpose of this study is to examine the environment of banks. The banking
sector execute a vital role for the improvement of our economy, industrial sector and
commerce etc.

1.3. Scope of study

After the complete verification of my document from head office of Askari Bank
Limited was appointed me as internee. The scope of this study was to consider the
financial aspects of the banks .My major subject is finance so I have significantly
focus on budgetary situation and ratio analysis of the bank .i have work in many
departments of Askari bank like ;

i. Client relation

ii. ATM

iii. Online cash move

iv. Remittance.

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 1.4. Benefits of the study

Major benefit for the student they gain the real work experience .This internship also
a chance to be acquainted with your field, get hold of more experience, appreciate
your capability to work also networking and interlinked with people, customers. It
also boosts up your CV that proves of work experience.

1.5. Limitations of study

Every institute having some drawback whichever industrialized or services. During

the internship I faced many problems. The six week of internship period is too short
time for the covering of whole operations of bank and not fully analyzed and
understand the function of bank .Doing anything in the bank are limited for the
students and privacy of the bank is the main thing and secrete the customer
information therefore a student cannot access the bank software properly .

1.6. Data collection Methodology

These two following sources of information were gathered for this report.

Primary data

Secondary data

1. The primary source of data

i. Individual observation

ii. Interviews directly from bank staff

iii. Practical involvement

2. The secondary source of data

Secondary data I have collected from subsequent sources

i. Bank Manuals

ii. AKBL Annual report

iii. AKBL Brochures

iv. From Magazines of the bank

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 v. From Related booklets

vi. From various Internship reports

vii. Magazines

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 CHAPTER 2

INTRODUCTION TO ASKARI BANK

2.1. Brief History

In Pakistan October 09, 1991 Askari bank limited was incorporated as “a Public
Limited Company”. The operation of Askari was in progress on April 1, 1992 as PLC.
It defines as (BCO) Banking Company Ordinance 1962, is primarily occupied in the
banking business sector. In Private Sector Currently the shares of the AKBL quoted
highest in Pakistan. Lahore, Karachi & Islamabad. The AKBL is listed in Stock
Exchanges.

All over the country existence 226 Branches of Askari bank has extended into the
state and in Bahrain an offshore banking unit as well as 31 committed Islamic banking
undergrowth, 22 sub branches. Online ATM public network cover the main cities of
Pakistan deliverance channel for clients chains.

Over the years, Askari Bank has established its potency as a leading banking sector,
by realizing the following firsts in Pakistani banking.

i Initial Pakistani Bank to offer on-line real-time banking on nation -wide basis.
ii It is the initial Bank which introduces ATM on wide nation.
iii It is the initial Bank who offered Internet Banking services and e-Commerce
solutions.

2.2. Vision

To be the Bank of first choice in the region.

2.3. Mission

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

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

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 2.4. Core Values

The core value is the intrinsic value, which is the root of this business or corporate
behavior, is

 To fulfill the commitment

 Integrity needed for the customer
 Deal the clients with fairness
 Teamwork is effect on performance
 Quality Service.

2.5. Awards and Achievement

ACBL at the whole achieving many awards for providing the excellence banking
services to industry and individuals.

 In the year of 2001&2002 ACBL stated the “The Best Bank in Pakistan” by
worldwide business journal.

 In the same journal year of 2002, the “Best Consumer Internet Bank” award
give to Pakistan.

 In 1994, 1996 and 1997 we have achieved Euro currency and Asia currency
award.

 From the organization of CA (Charter Accountants) and ICMA (Institute of

Cost and Management Accountant) of Pakistan.

 We have received an award of “The Best Presented Annual Account” for the
finance sector in the SAARC (South Asian Association for Regional
Cooperation) area from SAFA (South Asia Federation of Accounts) from past
four years.

2.6. Objectives

 The first objective is to attain continued enlargement and fruitful profit in

all region of industry.
 The second objective is to maintain and build a high performance customs
was well as permanent development.
 The third objective is to particular focus on customer care with
convenience and to increase a client-service oriented culture.
5
  The fourth objective is to make such type of environment in which the
workers are fully motivated to participate with their abilities.
 The fifth objective is to efficiently supervise and diminish all types of risks
in the banking sector.
 The next objective is to make the best use of latest technical equipments to
ensure cost-effective operations, effective management information
system, improve delivery capacity and high service standards.
 Another objective is to control the Bank's focal point of businesses to be
attaining sustainable and muscular shareholder returns and to constantly
make shareholder value
 Its objective is to bring timely solutions that best fulfill the customers’
financial needs.
 The last objective is to search new opportunities for growth and
productivity.

2.7. Corporate Philosophy

To know and understand the client’s demands, staff requirements and its necessities
and then utilizing recent technology on them to make responsible social contributions.
It is also necessary to increase stake holder’s value to involve in corporate ethics…
ACBL is constantly striving to deal with newer challenges with a single motivation.

2.8. Corporate Information

Board of Directors

Lt. Gen. Javed Zia (Chairman)

Lt. Gen. (R) Imtiaz Hussain

Maj. Gen. (R) Saeed Ahmed Khan

Mr. Zafar Alam Khan Sumbal

Mr. Muhammad Riyazul Haque

Mr. Shahid Mehmood

Mr. Ali Noormahomed Rattansey, FCA

Dr. Bashir Ahmad Khan

6
Mr. Tariq Iqbal Khan, FCA

Mr. M. R. Mehkari (President& Chief Executive)

Audit Committee

Dr. Bashir Ahmad Khan (Chairman)

Mr. Ali Noormahomed Rattansey, FCA

Mr. Tariq Iqbal Khan, FCA

Company Secretary

Mr. M. A. Ghazali Marghoob, FCA

Auditors

A. F. Ferguson & Co.

Chartered Accountants

Legal Advisors

Rizvi, Isa, Afridi & Angell

Registered / Head Office

AWT Plaza, The Mall,

P. O. Box No. 1084,

Rawalpindi, Pakistan.

Tel: (92 51) 906 3000

Fax: (92 51) 927 2455

E-mail: webmaster@askaribank.com.pk

Website: www.askaribank.com.pk

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 2.9. Organization structure:

Figure 2-1

Source: www.askaribank.com.pk

8
 2.10. Corporate Social Responsibility

AKBL facilitate their staff to work with community firm and give significant time for
community investment. It also contributes in increasing currency; sustain educational
events, giving business expertise as long as another enthusiastic pair of hands.

2.11. Inspiring Relationships

It is the worker responsibility to knowing and fulfills the client demand is social
responsibility and participation in using recent technology and encouraging
stakeholder working in ethics corporate. ACBL always trying to accomplish new
challenges with single motivation.

2.12. Inspiring Customer Relationships

The success AKBL is that they first familiar with their customer and then their
requirements. They also introduced such type of product and services which increase
the quality of lives of all sector of the society. It make sure constantly observe the
client experience; designed a standard for quality services and give the personalized
services to a single and each client. Customer manager well prepared for their clients
and they give proficient services to them. There are various products and services are
in different sectors of market. AKBL provides planned financing arrangements,
running capital finance, Balancing-Modernization Replacement (BMR) services,
investments in international trade, customer credit, and loan for small scale business,
credit cards and incomparable investment products for the personal saver. . AKBL is
proud of the new responsibility in serving the most up-to-date recent technical
services to its client base, which now excessive from 984,485 relationships.

2.13. Inspiring Employee Relation

The most important asset of AKBL is its employees. The focus of AKBL is on
requisite training, professional groom, multi-talented recruitment and meritocracy
hold up compensation system. Askari focusing on promotions and growing “AKBL
Culture” and focusing on organized group work, where they collectively accomplish
the same objective.

Askari always gives preference to the employee’s welfare. They give new ideas for
employee care policy such as hospitalization plan, car buy-back services and home
loan insurance and forced them to outperform the competitors.

9
 2.14. Inspiring Ethical Values

AKBL should be conduct to all actions by a set of definite values and prevailing its
decision. AKBL well know that its obligation to convince client’s desires must be
satisfied within ethical and professional framework. AKBL based on accurate manner
of improvements and high moral standards in culture.

2.15. Inspiring Technological Innovation

Now the technology is changing fastly according to the AKBL thinking of doing the
business. It plays an important role in encouraging the client hopes and especially
with respect to standard of the services.

AKBL have an advantage of strategic competitive advantages to all over the

businesses in its technical innovations and the leadership.

Askari bank has the future of fully automated transaction processing systems for
back-office support. AKBL network is linked with online- real-time and the clients
can approach to off-site and on-site ATM in all over the Pakistan.

AKBL Phone Banking facility and Internet Banking services permit clients to have
routine banking facilities from everywhere in the world, 365 days a year, 24 hours a
day. AKB establish e-commerce business enterprise in Pakistan through a most
important retail distributor.

The staff of AKBL is trained and qualified employees and now giving more attention
on data warehousing to encourage the (CRM) Customer Relationship Management
program.

2.16. Corporate Citizenship

As a shared responsible citizen AKBL task to offer products and services. AKBL
participate in the field of sports, education, improvement in scarcity, science research,
medical and health science.

AKBL participate in the NGOs and devoted for the wellbeing and dealing sightless
for ray of hope in the dimness. AKBL participate in controlling programs of drugs-
addiction, aids and mental, community wellbeing of women and child which contain
much win appraisals.

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 2.17. Inspiring Growth

We are living in which era where the things are change very fast and the needs and
wants of consumer changes rapidly. There is enlargement in technical distribution
channel and customer can easily access to banking services from everywhere. Now a
days in global environment, there are needed for the growth in survival of
organization. In 1997 AKBL have only 7 branches but now having 226 branches, it
shows great achievement in nationwide.

2.18. Inspiring Corporate Achievement

AKBL strives in given better quality services to its consumers have been recognized
at the national and international levels. This recognition give out a better means of
appreciation and promotion at one side and encourage it to perform on the other side.

AKBL has received the award of “The Best Bank in Pakistan” from Global Finance
Magazine. Askari bank also received the Euro money and Asia money awards as early
as 1994, 1995 and 1996.

2.19. Annual Account

AKBL received award in services sector from Chartered Accountants in Pakistan in

2000. During the last four years AKBL also won award from South Asian Federation
of Accountants. Askari bank was the first bank in Pakistan to propose Internet
Banking facilities and B2B e-commerce (business to business electronic commerce)
solution for trade to acquire credit; these successes definitely are the effect of constant
and honest efforts to be the best.

2.20. Corporate Banking and Financial Institutions group

The responsibility of this group is to helping and satisfying the desires of big
business customers in public and private sectors, dealing an d organizing with
money market transaction. The group is divided into three sectors

 Treasury

 International Division

2.21. Corporate and Merchant Banking Division

This division provides funds to customers of big business which includes loan,
granites running finance underwriting and advisory services. This division also plays
11
a Vitol role in giving funds for the purpose of country and industry development.
There are three units which has been established at Lahore, Karachi and Rawalpindi
for sales and operation which are facilitated by centralized marketing from the head
office.

2.22. Treasury

In the market our treasury is very active for organization and conscientious in
the banks liquidity and foreign exchange transaction. During repo
transactions, purchase of foreign exchange trading and Government paper, the
Division significantly includes to maintain the Banks earnings

2.23. International Division

The division play an important role in organizing the planning for foreign
exchange operations and banking relationships. The foreign trade transaction
facilitates the 277 outlets which are expanded in 76 countries. During this
year the bank constantly to enhance its leadership position in trade finance
and transacting business of almost rupees 70 billion.

2.24. Operations and Credit Group

A group which is help in processing developments process reengineering,

computerization and management of credit is known as operations and credit group.
The Group is organized in three divisions:
 Systems & Operations Division
 Electronic Technology Division
 The Credit Division.

2.25. Retail Banking Group

 AKBL value plus

 AKBL Travelers Cheques
 Cash Management Services
 AKBL Net Banking Touch and Pay
 AKBL Debit Card
 AKBL Pre-paid Card
 AKBL Investment Certificates

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 2.26. Credit Card Division

The AKBL MasterCard is managed by Karachi head office. This is a new brand
which was re-launched in 2001, supported by a campaign of aggressive
advertising and strong group sales network. Now this product portfolio is almost
at 20,000 cards, in less, than one year. This brand is internationally accepted at
almost 15,000 locations in Pakistan.

2.27. Finance Division

This Division is responsible for maintaining the accounts and financial

transactions `from the head office. . This Division is concerned with the planning
of market comparative analysis, Bank's budgets consolidation and examining
different financial indicator. Finance Division sponsors all the Banks’
operations. The reports are directly send to the President and Chief Executive of
the Bank because this can help in planning future business strategies of Banks...

2.28. Training and Development Programme

Management of ACBL’s considers that the training and development of banking

employees is very necessary. For this purpose Training Academy set up in
Rawalpindi, Lahore and Karachi. The center gives multi-level high quality training
programs to all employees in the operational, customer services and marketing. There
are different courses which are offered to the employees:

 General banking
 Foreign trade
 Credit management
 Team building
 Customer care

2.29. Foreign Trade and Correspondent Banking

The bank focused on the growth and wants to create a reliable relationship with
correspondent network. When they want to introduce something new then they have to
need special focus on it.

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 2.30. Consumer Banking

Customer banking in Pakistan is become the most competitive industry because it

provides various attractive products and service packages for the customers. Due to the
sensible financial policies and understandable market situation, AKBL make proficient to
sustain its place with the leaders in consumer banking in Pakistan.

2.31. Electronic banking includes:

 Online banking
 Phone banking
 ATM’s

Most latest and fast technology of ATM network set with high standard securities.

2.32. Askari Bank’s Value Plus

AKBL starting deposit account and give value plus assurance of security, in a
matchless way. In a value plus savings account if you little deposit Rs.10, 000/- then
you can earn monthly profit.

Advantages

 AKBL provides partial liquidity on deposits

 AKBL provides monthly return on amount

 AKBL support 24hours world-wide protection plan

 Debit Card( ASKCARD)

2.33. Ask Card

AKBL fulfill your banking wants in a more effective way to giving you an inventive
and aggressive solutions. Askari bank have a benefit on other banks because of its
huge network technical progress and leadership. AKBL innovate its new ASKCARD.
AKBL ASK CARD helps you in shopping and also valuable for your financial needs.
It gives security, freedom, relieve and connivance. ASK CARD increase your quality
of life and It facilitate you in your daily life through ATM at anywhere at any time.

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 2.34. What Is Ask power?

The Pre-paid Card of AKBL is known as ASKPOWER. It is a unlike ATM or debit

card, ASKPOWER is not related to any account. It is direct cash card which can be
used at any ACBL ATM or other ATMs.

The Card Offers Remarkable Convenience For

 Facilitate in daily basis purchases

 Facilitate in paying of bills

 Provide facility in moving cash during traveling and special occasions.

 Provide facility in moving of money from one ASKPOWER card to other

ASKPOWER card.

 Facilitate in moving Money to any card and also depositing cash at any AKBL
Branch or through the ATM.

Key Advantages
 Important way of carrying cash.

 Provide easy access to cash and commodities.

For paying utility bills there is no need for waiting.

 There is no need of issuance fee.

 There is no need to required acceptance for credit.

 Account relationship with ACBL not compulsory.

 Easy and economical money transfers.

 Safe online access to records, purchases and transactions..

2.35. Askari Bank’s Personal Finance

1. One Of The Quickest Approval Processes Around!!!

Through AKBL personnel Finance everyone can get benefit of limitless chance.
Askari Bank’s Personal Finance makes certain that you acquire the loan. It does not
matter that what you want but AKBL has many sources to facilitate you.

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Featuring
 Loan amount upto 500,000

 Refund period from 1 to 5 years

 Monthly refund amount will fixed.

 Lower rates will not change

 No prepaid penalties

 Less time required for processes.

 Money can be acquired from any ACBL branch

2. ASK SMART Cash

This is an individual line of credit which is fixed for everyone with a

special limit.

 You can take out money from your credit line when you want.

 The markup is charge only on the amount which is used.

 The markup is less than a credit card.

 Provide facility of individual’s loan and money transfer facility.

Car Financing Made Easy

For the purpose of vehicle-financing scheme AKBL gives the reasonable prices to
facilitate the regular clients to become the owner of the new motor vehicle with their
own selection. AKBL offers the motors to their customers with low rate of down
payment and less insurance rates.

2.36. Askari Bank's Cash Management Services

Askari Bank's Travelers Cheques: AKBL provides the facility of the travelers
Cheques with the denomination of the Rs.10, 000/- . It is safe and ideal for all
travelers’ purposes.

Free Issuance: Customer have enjoyed the free services of the traveler’s cheque
over the countrywide outlets.

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Earn 0.10% encashment Commission: After 30days when we encash the traveler
Cheque this will increase the 0.10% commission. This matchless attribute gives you
another innovative client care solution.

Enjoy Added Safety & Security: This way of acceptance and making of the
payment is one of the best methods. This is the most secure and easily refundable in
case of theft and loss.

2.37. Account and its Classification

1) Definition of account

Account is the complete summary of the account which is relate to the individuals.

2) Classification of accounts

There are three types of accounts which are as follows.

 Real accounts

 Nominal accounts

 Personal accounts

 Personal accounts:

Personal accounts are those accounts which are related to individuals. It has
following types.

 Natural person’s accounts:

Any individual accounts are known as natural person’s account.

 Artificial person’s and body of person’s account:

 Any account which is on the name of any business or industry is called

artificial people and body of person’s account.

For example: Khyber Bank‘s account, Oil Mill’s Limited account or any
institution or any club’s account.

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 Representative personal account

When an account represents certain person or persons then it is called a representative

personal account. Account of the same nature and many in number, the amount
standing against these accounts are added and put under one common title.

For example: Outstanding Salaries account .In which amount due to the
employees will be added and put under that title.

 Real or property accounts

Any account which is open for keeping the record of any property is known as real
account.

For example Machinery account, Land account, Furniture account, Building

account.

 Nominal or proprietary accounts:

Any account which is open for gain, losses and expenses is known as nominal
accounts.

For example Salary account, Wages account etc.

2.38. Types of Accounts

 Current deposit account

 Profit and loss saving accounts

 Profit and loss term deposit accounts

 Profit and loss. short term deposit account

 Call Deposit account

 Value Plus Account

 Foreign currency saving accounts

a. Current Deposit Accounts

Current deposit accounts are those accounts which are open for customer current
deposit. The customer can deposit and take out the amount at any time and there is no
profit is given on this type of account.

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 b. PLS (profit loss sharing) saving Account

Accounts which is opened by persons for charitable institutions, companies,

educational institutions and organizations etc. This type of account can be opened
with fewer amounts.

c. PLS Term Deposit Account

Term deposit accounts are those accounts which are opened for fixed time period and
also the amount is taken out after fixed time. The amount holder cannot withdraw the
amount through cheques. After the maturity of account, he obtained the actual money
along with the profit.

d. PLS Short Term Deposit Account

Those account which is opened for the time of 7 days notice or 30 days notice is
called short term deposit account.

e. Deposit at Call or Call Deposit

Those accounts which is opened in favor of some other businesses or company is

called call deposit.

f. Value plus Account

Those accounts which is same like the current account is known as value plus account
Its opening; closing, depositing and withdrawing services are same like the current
account and profit is paid on daily basis at the end of month.

g. Foreign Currency Saving Account

 This account can be opened by Pakistani and foreigners.

 The limit for closing, Cheque-book issue, opening, withdrawing are the same like
the Pls saving account.

 This account is also checked with the minimum monthly balance.

 The client has the facility of take out money in foreign and Pak currency.

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 CHAPTER 3

FINANCIAL ANALYSIS

3.1. Consolidated Statement of Financial Position:

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3.2. Consolidated PLS:

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3.3. Consolidated Cash Flow Statement:

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 3.4. Current ratios:

This ratio shows organization ability to cover short-term debt through short-term
assets. The 2-year comparison of Askari Bank Limited is as follows.

Current asset /Current debt Current ratio

2018 53,281,047/21,178,476 2.51

2017 47,433,160/17,098,223 2.77

Table 1
Analysis:
 The current ratio for the financial year 2018 is in decline from the financial
year 2017. It tells that for every Rupee 1 current liability it has 2.51 rupees,
which covers through current assets.

 The current ratio for 2018 is declining from the 2017 fiscal year. It means that
current liability of Rupee 1, it has 2.51 rupees of current assets.

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 3.5. Cash ratios:

Sometimes we need to consider the liquidity of the company from a very conservative
point of view. For example, a company may have committed its receivables and
inventory. In such situations, the best indicator of short-term liquidity is the cash ratio.

Cash/Current debts CR

2018 49,187,645/21,178,476 2.32

2017 44,239,325/17,098,223 2.58

Table 2
Analysis:
 The cash ratio is decreasing in fiscal 2018, so the current ratio is decreasing
rapidly. The current ratio in fiscal 2018 is 2.32 rupees.

 In 2018 the value is 2.32 decrease 2.58 in 2017

 This is not a good sign for Investors of NBP

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 3.6. Operating cashflows to current debt ratio:

The ratio of operating cash flow to current liabilities represents the cash flow per unit
of our current liabilities.

Operating cashflow/current Operating cashflow to

Liabilities current Liabilities

2018 (43,574,473)/21,178,476 2.05

2017 26,339,803/17,098,223 1.54

Table 3
Analysis:
 Askari Bank limited has increased its operating cash flow to current debt ratio.
The increase was due to cash flow operations, which increase more than six
times.

 In 2018 the ratio was 2.05 and its increases from 1.54 in 2017.

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 3.7. Turnover of receivables:

Turnover of receivables provides insight into the quality of receivables or advances of

the company and the extent of its success in the collection.

Interest earned/Advances Turnover of receivables

2018 43,669,883/343,107,147 0.12

2017 36,367,220/258,693,086 0.14

Table 4

Analysis:
 Bank receivables turnover in 2018 are slightly down side from previous year.

 In 2018 the number of receivables turnover is better than 2017

 In 2018 is 0.12 then it decrease to 0.16 in 0.14

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 3.8. Assets turnover:

Total asset turnover measures the ability of a business to generate profit / sales using
assets by using if its assets.

Revenue earned/ total TAT

assets×100

2018 43,669,883/706,666,079 6.17%

2017 36,367,220/662,938,624 5.85%

Table 5
Analysis:
AKBL's asset management results grow to 6.17% in 2018 compared with 2017 is
5.85%. In other words, it can be said that a Rs 1 investment in total assets yields 6 as a
return. The main factor in the decline is the decrease in total profit / earnings earned
in 2018.

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 3.9. Fixed assets turnover:

In order to generate sales and profits, it may be necessary to find out the impact of
fixed assets. Fixed asset turnover is a tool to examine the effectiveness of a company's
fixed assets to generate interest income.

Revenue/ Fixed assets×100 FAT

2018 43,669,883/12,791,827 341%

2017 36,367,220/9,885,958 367%

Table 6
Analysis:
A two-year comparison of fixed asset sales to the AKBL shows that this ratio has
risen in the year 2018. The increase in the total amount of markup income and
decrease in fixed assets has raised this ratio.

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 3.10. Net profit margins:

This is conservative way for sales profitability.

Net profit/ revenue earned NPM

2018 4,428,619/43,669,883 10.14%

2017 5,128,297/36,367,220 14.10%

Table 7
Analysis:
 The value of profit margin decreases from 10.14% to 14.10%

 Table represent the amount of net profit margin i.e. base year profit 10.14%
whereas in 2017 it was 14.10%

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 3.11. Return on investment:

ROI measures the ability to use an asset to make a profit by comparing the profit to an
asset that benefits from the DuPont approach.

N.P/Total investment ROI

2018 4,428,619/33,557,083 0.13

2017 5,128,297/32,500,883 0.15

Table 8
Analysis:
Askari bank showed a low ROI in 2018 compared to 2017. Its ROI decreased from
2018 to 0.15 to 0.13 in 2017. Asset Turnover, though declining, is still improving.
NBP will bring the ratio up.

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 3.12. Return on equity:

This ratio compares net income with the capital that shareholders have invested in the
company. Return on equity is high, reflecting strong investment opportunities and the
ability to accept cost-effective management. The high return on equity reflects strong
investment opportunities and effective cost control accepted by the business.

N.P/equity ROE

2018 4,428,619/12,602,602 0.35

2017 5,128,297/12,602,602 0.40

Table 9
Analysis:
In the above ratio comparison, the ROE ratio in 2018 decreased from 0.35 to 0.40 in
2017. While the share dividend and asset turnover rates have fallen, the improvement
of the net profit ratio in 2017 is favorable to the ROE ratio.

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 3.13. Advances to deposits ratios:

The bank compares advances with deposits and see comparisons of 2 years.

Advances /Deposits Advances to deposits

2018 343,107,147/573,596,926 0.59

2017 258,693,086/525,805,051 0.49

Table 10
Analysis:
There is an increase in both advances and deposits in 2018. This shows a good signal
to the bank. But it declined compared to 2017.

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 3.14. Investment to deposits ratios:

The banks compares its investments to deposits and sees comparisons of 2 years.

Investment /deposits ITOR

2018 260,233,987/573,596,926 0.45

2017 314,956,748/525,805,051 0.59

Table 11
Analysis:
It shows that the bank made a good investment to decrease its total in 2018, compared
to 2017.

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 CHAPTER4

SWOT ANALYSIS

This is a method or system that is carrying out for the organizational analysis in
Strategic Management Process. SWOT analysis is the strengths, weaknesses,
opportunities and threats of the corporation or company that is the estimate for the
upcoming.

4.1. Strengths

i. All the outlets of the Askari bank are fully automated with latest computer
software.

ii. All outlets are connected with each other through a huge network in
countrywide which are well-knitted and qualified and also cover the global
and domestic both market.

iii. AKBL are the huge classified sector with stable enlargement continuously
from 1999 and till today.

iv. Take a feedback from clients and work on their suggestions.

v. They are introducing the worldwide credit card through this AKBL contribute
in worldwide market.

vi. AKBL also introducing the MasterCard which gives the international services
to their clients.

vii. AKBL also enhance (improve) their services turnaround time at cash and
counter services.

viii. All branches of the AKBL placed at commercial area with providing the
worldwide network and easy access to their customers.

ix. They are always exercising with new abrogate.

x. They also execute their effort as a social reasonability.

xi. Askari also provide phone banking services to their customer for the purpose
of time saving.

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xii. AKBL provides a matchless offer for their customer by giving them the
highest level of personalized banking.

4.2. Weaknesses

i. In this technical environment AKBL also having some traditional ways of

recording the operations and also bankers use the register for the recording of
bookkeeping.

ii. The way of selection of employees are not according to criteria basis therefore
it have impact on organizational performance of personal differences of
AKBL.

iii. There is lengthy documentation and processing procedures due to lack of

sophisticated equipped.

iv. The media of AKBL mostly used the magazines for their publicity but in this
technical environment people are used the television mostly sand also other
institute use this therefore here the lack of publicity and poor marketing.

v. Middle Investment are discourages due to more markup rates.

vi. They are needs the proper training program session for their newly hired
employees.

vii. There is low level of job satisfaction for their employee’s due to lack of
focusing on human resource management sector and receive less feedback
from employees.

viii. Also channel of upward communication is not reliable.

ix. It gives more benefit to the army official’s account.

x. Having the overstaffed in outlets

4.3. Opportunities

i. AKBL having huge opportunity; there are needs to further spread out of their
outlets for more growing. They can open their outlets outside the country for
more expansion and also their growth.

ii. They require to offering extra product with attractive packages for their
clients.

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iii. Now AKBL focusing on the mobile banking concept which is newly
introduced for their customer.

iv. A lot of BBA former students those are free for a job and they can hire
professionals for their achievements.

v. Islamic banking is a great opportunity for the AKBL they can work on it and
expand this system for worldwide Muslims.

vi. For the customer ease, the banking hours should be increased.

4.4. Threats

i. Political instability is a threat cause to lower businesses.

ii. Inflation is also a threat because it decreases the country wealth.

iii. Employees moves in other organizations due to high turnover of employees in

other associations.

iv. Due to high charges of the bank services then other competitors which
decreases the number of customers.

v. A foreign banking competition and high attraction of the services is also a

threat.

vi. Due to complex procedures of the bank general public give preference to
invest in other sectors.

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 CHAPTER5

CONCLUSION AND RECOMMENDATIONS

5.1. Conclusion

I examine that the turnover of the Askari bank is raises day by day. The staff of
Askari Bank Limited Muzaffarabad Upper Adha branch working with full focus and
sincere with their bank therefore that branch gives the significant progress. The
manager of that branch is a cooperative person, polite since able, sincere with his
work and concerned about Askari Bank growth. Also the working environment of
Muzaffarabad upper adha branch is so relaxed since the employees are too
cooperative.

Though administration is very challenging about the objective of the Askari Bank
however better-quality reward at the attainment of assign is awarded. Recruits at Bank
are moderately well-organized. As the outlet is modernized and fresh workers are
appointing, its staff count among the list of good banks.

5.2. Recommendations

I observed that the staff is limited in Askari bank .In this branch same people handle
different department and also the work burden is more on limited persons. If one
employee is absent due reason then there is allot of problem handled by the specific
number of employees.
 Should be focus on the human resource sector and performance of employees.
 They are not as vast as compare to other organization therefore they need to
more focus on its advancement and enlargement.
 They also need to focus on the technology sector.
 They must cover their all work on computer like ignore the registered entries.

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 References

i ACBL (2007); Annual Report of Askari Bank Limited for the year 2007

ii ACBL (2008); Annual Report of Askari Bank Limited for the year 2008

iii ACBL (2009); Annual Report of Askari Bank Limited for the year 2009

iv Iffland, Charles & Langueton, Pierre. (1996); International Banking. New

York. Irwin Book Co:

v Khan Rana, Safdar Hussain & Ahmad, Shabir. (1991); Banking Currency and
Finance. Lahore Ilmi Kutab Khana:

vi Saeed, M Nasir. (1994); Economics of Pakistan. Lahore Ilmi Kutab Khana:

vii Siddique, Asrar H. (1998): Practice and Law of Banking In Pakistan (6th Ed).
Karachi. Royal Book Co:

viii www.askaribank.com.pk (last accessed on 3rd July 2010)

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