INTRODUCTION OF THE ORGANIZATION

Askari Bank was incorporated on October 09, 1991 as a Public Limited Company and is listed on the Karachi, Lahore and Islamabad Stock Exchange. It started its operations from April 01, 1992. The bank was declared as Best Bank in Pakistan in 2001 in Global Finance. The banks registered office/Head Office is situated in AWT Plaza, The Mall, P.O.Box No. 1084, Rawalpindi, (Pakistan). Askari Commercial Bank Limited was the first bank in Pakistan to offer Internet banking Services and B2B e-commerce (Business to Business electronic Commerce) solutions for merchants looking to purchase on credit. They believe that balanced growth is the key to survive in the todays global banking environment.

Vision Statement: The vision statement of the bank is To be the Bank of first choice Mission Statement: The mission statement of the bank is To be the leading private sector bank in Pakistan with an international presence, delivering quality services through innovative technology and effective resource management in a modern and progressive organization culture of meritocracy, maintaining high ethical and professional standards,

while providing enhanced value to all their stakeholders, and contributing to society
Core Values:
We understand that our commitment to satisfy customers needs must be fulfilled within a professional and ethical framework. We subscribe to a culture of high ethical standards, based on the development of right attitudes. We believe in our 'core values' as the essential and enduring tenets of our organization - the very small set of guiding principles that have a profound impact on how everyone in the organization thinks and acts. They have an intrinsic value for us and bear significant importance to all our employees. They

are the few extremely powerful guiding principles; the soul of the organization - the values that guide all our actions. The intrinsic values, which are the corner stones of our corporate behavior, are:

Commitment Integrity Fairness Team-work Service

CORPORATE PHILOSOPHY:
From knowing our customers requirements to understanding employee needs, from utilizing modern technology to making responsible social contributions, from enhancing stake-holders value to practising corporate ethics.... We are continuously and consistently striving to address newer challenges with a single motivation: the power to inspire and be inspired

OBJECTIVES
Deliver solutions that meet customer financial needs. Build and sustain a high performance culture. Build trusted relationships with all stakeholders. Build and manage the Banks portfolio of business to achieve strong and

Sustainable shareholder return.

Create and leverage strategic assets and capabilities for competitive advantage. To facilitate the bank with modern banking technique.

To accelerate commercial activities and capture large market share.

Product and services:

Personal Finance

Personal Finance is a parameter driven product for catering to the needs of the general public belonging to different segments. One can avail unlimited opportunities through Askari Bank's Personal Finance. With unmatched finance features in terms of loan amount, payback period and most affordable monthly installments, Askari Bank's Personal Finance makes sure that one gets the most out of his/her loan. Once a good credit history is established, the door to opportunity opens much wider.

Business Finance
In pursuance of the National objectives to revive the economy of the country, ACBL 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. Our valued customers can enjoy the convenience of getting financing on attractive terms with the minimum processing turnaround time.

Smart Cash
This personal line of credit would be set up with a specified credit limit up to Rs. 500,000/-

Auto Financing
Yet another of our products, Askari offers the most convenient and affordable vehicle- financing scheme, which provides our valuable customers an opportunity to own a brand new vehicle of their choice. With minimum down payment, lowest insurance rates and widest range of available car makes and models, Sacker offers the best value to our esteemed customers

ASKARI CARD
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.

TYPE OF CREDIT CARD:

There are three types of credit cards issued. * Silver card has limit upto 2 lac. * Gold card has limit upto 5-lac.

* Local card has limit upto 2 lac. Silver and Gold card can be used internationally for shopping and also can be used for internet shopping.Local card can be used in Pakistan.

Travelers 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.

Value Plus Deposits

The first liability product launched by this unit is showing a remarkable acceptability in the market. The growth of this product is witnessed by its share, which has presently reached at Rs. 1,079 Million even after lowering down the profit rates due to sufficient liquidity in the market.

FUNCTIONS OF ASKARI COMMERCIAL BANKS

Accepting Deposits
Cash in the hand of the people is unsafe because it can be lost. moreover, because some people lack entrepreneurial talents and therefore do not make investment in any enterprise, but they want income on the amount of money they have. Bank promises to solve these problems of people. Banks receives three types of deposits from the people. Current deposits Fixed Deposits. Saving Deposits.

Advancing Loans
Every bank has learn experience that depositors do not draw whole of their deposits at a time. They only draw a part of it for day to day transactions. Therefore, a bank keeps a part of total deposits as cash reserve to meet the cash demand of depositors and advances the remaining part of deposits to businessmen on interest.

A bank gives loans entrepreneurs/businessmen in the following ways: By Opening a loan account. By means of overdraft. By discounting bills of exchange. By purchasing bonds and securities. Creation of the safest medium of exchange: It is neither safe nor easy to make payment in the form of metallic coins or paper notes. Therefore, payments are made by cheques these days.

Agency Services
A commercial bank performs many services as an agent of its clients or depositors. It makes payments on order cheques issued by its depositors. It receives the amount of money on crossed cheques issued in the favour of its clients and deposits the amount in their accounts.

General Utility Services

A bank provides general utility services to its clients as well, for example it keeps their precious documents, gold ornaments, bonds and shares etc. in safe custody in its lockers

Financing of Foreign Trade

A commercial bank receives foreign exchange earned by exporters and makes payment also in foreign exchange in foreign countries on behalf of importers. It also advances loans.

DEPARTMENTS
DEPOSITS DEPARTMENT:
Deposit is the functional unit of a Commercial Bank. No bank can run its operations without deposits. Main function of a commercial bank is to channelize saving from the savers to the ultimate users of funds. The process of collecting saving is called Deposit Mobilization. Two board categories of deposits with reference to time period are:

Demand Deposit: These are payable on demand. They include current account,
sundry deposit (e.g. margin account) and call deposit receipt. No profit is given on demand deposits.

Time Deposit:

These are payable on demand with certain maturity. Attracts

profit with respect to time.

TYPE OF ACCOUNTS
There are three types of accounts dealt in the ACBL

PLS Saving Bank Account

Saving deposits were introduction to inculcate and encourage the of saving among people of small means in order to achieves of Islamisation of the banking system in the country, the government authorized the banks to accept Saving Deposit on profit and loss sharing basis. Deposits received under this scheme are invested in non-interest bearing advances and other avenue so as to eliminate the element of interest.

Current Account
A current account is a running account, which is continuously in operation, by the customer on all working days of the bank. The customer deposits without the current deposits without previous notice to the bank.

PLS Term Deposit

Fixed or term deposits are the major source of funds of a commercial bank. Term deposits, as the name implies, are deposits kept with a bank for a certain period of time.

They are not payable on demand like the current deposit. The depositor can only withdraw them after the specified period of time. The persons or firms trust, religious bodies, which have surplus funds keep the money in fixed deposits with bank.

REMITTANCE DEPARTMENT:
The need of remittance is commonly felt is commercial life particularly and in everyday life generally. The main function of the remittance department is to transmit money from one place to another. By providing this service to the customer, bank earns a lot of income. Also customer is able to meet its day to day financial requirements.

Demand Draft
It is an instrument payable on demand for which value has been received, issued by the branch of the bank drawn i.e. payable at some other place (branch) of the same bank. If two banks are involved then the DD is sent to other bank but in other case it is handed over to the applicant.

Telegraphic Transfer (TT)

It is the quickest way of transfer of funds from one place (Branch) to other place (Branch) of the same bank. Generally, a mail transfer advice reaches the drawer branch the next day through courier services. But sometimes, a customer demands that his funds should be transferred through the quickest means. In such cases, transfer of funds message is passed through telephone or telegram. This mode of transfer was used before online. Online system is very effective for this purpose now-a-days. In Askari Commercial Bank online system is used.

Pay Order
It is an instrument issued for payment in same city. Pay order issued from on e branch can only be payable from the same branch. It is normally referred to as bankers cheque. It is also called confirmed cheque, because bank issues this on it own guarantee.

Pay Slip
It is an instrument issued by the bank for the settlement of its own payment. It is used for payment by the bank to anyone (may be employees) in this case only one bank is involved. He is the issuer as well as the payer. No Excise Duty

No Commission

Outward Bills for Collection

The bills, which are received by the bank and sent to other cities (branches) for the local clearing in that city, are called Outward Bills for Collection.

Inward Bills for Collection

The bills, which are received by the bank from other branches out of the city for local clearing, are called Inward Bills for Collection.

On Line Transaction
Askari Bank has provided the facility of on line transaction. In this case the accounts and their details in the other branches of ACBL can be displayed on computer which is connected through server to the computer at the other end. Commission is charged on providing this service this is beneficial as it takes very little time in the transference of funds. This facility is available all the branches of Askari Bank except Bhai Pheru Branch.

CLEARANCE DEPARTMENT:
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 draw on each other within a specified area and thereby secure payment for their client through the clearing house at specified time in an efficient way. Since clearing does not involve any cash etc and the entire transaction take place through book entries, the number of transactions can be unlimited. No cash is needed as such the risks of robbery, embezzlements and pilferages are totally eliminated. As major payments are made through clearing, the banks can manage cash payment at the counters with a minimum amount of cash in vaults.

Clearing House (National Institution of Facilitation Technologies)

It is a place where representatives of all scheduled banks sit together and interchange their claims against each other with the help of controlling staff of State Bank of Pakistan and where there is no branch of State Bank of Pakistan the designated branch of National Bank of Pakistan acts as controlling member instead of State Bank of Pakistan.

Procedure of Settlement
Presume that ACBL got the cheques which are drawn on HBL, NBP and MCB for amounts Rs. 50,000/-, Rs. 15,000/- respectively, its total being amounts Rs.95,000/-, it means that this amount is to be credited to ACBL A/C with S.B.P. on the other hand the cheques drawn on ACBL are from HBL, NBP and MCB of Rs.15,000/-, Rs.75,000/- and Rs.30,000/- respectively, its total being Rs.1,20,000/-, it means that this amount is to be debited from ACBL account. The difference between Rs.95,000/- credit and debit Rs.1,20,000/- debit is Rs.25,000/- debit which means the house is against ACBL for Rs.25,000/-. Hence ACBL A/C with State Bank of Pakistan will be debited with Rs.25,000/- and the contra will be other banks accounts respectively. This called as Debit and Credit Rule.

Clearing at the Branch

If an instrument is in order then out banks special crossing stamp is affixed across the face of the instrument. Clearing stamps is affixed on the face of the instruments, payingin-slip and counterfoil (The stamp is affixed in such a manner that half appears on paying-in-slip and half on counterfoil). The instrument is suitably discharged, where a bearer cheque does not required any discharge and also an instrument in favor of a bank need not be discharged. The instrument along with paying-in-slip is retained while the counterfoil is given to the customer duly signed.

Inward Clearing of the Branch

The particulars of the instruments are compared with the list. The instruments are detached and sort out department wise. The entry is made in the Inward Clearing Register (serial number, instrument number, account number, amount of the instrument is written). The instruments are sent to the respective departments against acknowledgement in the Inward Clearing Register. The instruments are scrutinized in each respect before honoring the same

Retail Banking Division

Retail banking division is also working separately. Its basic features are the consumer finance products, among them ACBL Saddar is offering following products only.

10

Askari Banks Personal Finance

You can avail of unlimited opportunities through Askaris Bank Personal Finance. No matter what you need is, Askari Bank has more ways to serve you than ever before. Askari bank is now offering you Askaris Bank Personal finance, a loan that is perfect solution for most of the needs.

Askari Banks Smart Cash

ASKSMART Cash is ideal credit line you need to maximize your financial freedom. No matter you are a salaried individual or a self-employed businessman or professionals, it is answer to all financial challenges. It is not an ordinary personal loan or overdraft facility, rather it is an unmatched flexible credit line that poses no complications and presents no worries.

Askari Mortgage Finance

Askari Mortgage finance offers the convenience of owing the house of own choice while living it at its rental value. Customer pay the price of property in affordable installments for a fixed period of time simply pay rental for residence. The installment plan has been carefully designed to suit budget and accommodation requirements.

Askari Banks Business Finance

Through this loan available up to 60% of the assessed market value of customer residential property. Customer has to pay only mark up on the daily outstanding loan balance.

The following are the different departments in which I work in my 6 weeks internship tenure
Ist WEEK : During the first week, I worked in the Remittances Department. I worked under the supervision of Sir Nyazi and Miss Shehla. They told about the functions of Remittances department that the Remittances department receives the cheques of different banks from different customers and get it cleared through NIFT ( National Institute of Facilitation Technologies). If the cheque is cleared, then it is stamped as Clearing. This department also transfers the amounts through online transactions. They also deal in making of Pay

11

orders and Demand Drafts. While explaining the functions of NIFT, he told that before this organization it was difficult for the State Bank of Pakistan to give different cheques of different banks to their respective banks. Then State bank of Pakistan introduced an organization named NIFT. Now Askari bank is working with this organization. The function of this organization is to receive the cheques of different branches and banks from different banks personally, take them to their organization where different banks receive the respective cheques of their banks and give the cheques of Askari Bank to their branches, likewise for other banks. My responsibility in the Remittances department as an internee was to receive the cheques along with the deposit slips, of different banks from different customers, check whether the title name (on the cheque and deposit slip), cheque number and amount is correctly written and the depositor has signed on the deposit slip. Then it was given to Sir Nyazi who signs the deposit slip. I stamped on the deposit slip as Collection Askari Bank. Depositors copy of the deposit slip was given to depositor and the bank copy was received by the bank. If the cheque is of Askari Bank, it is not necessarily need to be verified. Then Rawalpindi and Standard Chartereds cheques are separated and Islamabad and other cities cheques are separated. Inward Billing Clearance (clearance of Rawalpindi and Standard chartered cheques) was done by the Remittances department while Outward Billing Clearance (clearance of Islamabad and other cities cheques) was done by Sir Faisal in OBC (Outward billing clearance)/Clearing department. Clearing registers were also prepared and maintained on day to day basis. 2nd WEEK: In the 2nd week, I was shifted to Accounts Department. There I worked under the supervision of Sir Munir, Sir Sahil. All the ending up of cheques, deposit slips and vouchers was done in the Accounts department. My responsibility in the Accounts department as an internee along with the other internees was firstly sorting out all the cheques, deposit slips, vouchers and multiple papers. Then arranging all cheques, deposit slips and vouchers (GL vouchers were separated) in ascending order. Cheques, deposit slips and printed vouchers were arranged by first separating on the basis of Account nature e.g. Current Deposit account (CD)

12

having code 010, Saving Banking Account (SB) having codes 100, 107,109, Basic Banking Account (B.B.A.) having 109,107, Askari Special Deposit Account (ASDA) having 021 etc., then all these were individually arranged in ascending order according to their account numbers. Foreign currency cheques and other branches cheques (known by Branch code) were separated. Unprinted credit and debit vouchers were also separated. Then the third step was the checking of all these cheques, deposit slips and vouchers in the checking list according to their account numbers and amounts deposited. Some transactions that were done through ATM, they were also marked in the checking list. 3rd WEEK: My third week of internship in Askari Bank was in the Deposits Department where the supervisor was Miss.Amna. I worked with Miss. Amna for some period and then I worked with Miss Rubina who was also working as an employee in the Deposits Department. When I asked her about the functions of that department, she told that basically this department deals in the following areas: Accounts Opening TDR (Term Deposit Receipt) CDR (Call Deposit Receipt) Zakat Deduction KYC (Know Your Customer) Reporting Filing

She told me about these areas and also about the types of accounts. I worked with Miss. Rubina and I came to know that how work is done in that department. Some customers were coming for opening their new accounts. They were asked by Miss what type of account they want to open whether they want to open Basic Banking Account , Current Deposit Account , Saving banking Account or any other account. A form was filled by them according to the type of account and also KYC form (know your customer form) which is an important part of opening an account. Account opening formalities were completed from the customers. Required documents were attached along with the form.

13

On the other hand, some customers were coming for asking their balances in their accounts. Some customers were coming for the issuance of cheque books that was done by Sir Talha in Deposits department. If the customer wanted to issue a new cheque book, Form A was filled for him. If the customer wants to replace his cheque book in case his cheque book has completed, Form B was filled. If it has been lost then form C was filled. All type of issuance of cheque books contain some charges depending upon the number of leaves (the number of cheques) in the cheque book but for the lost cheque book, the charges are more than other cheque books. The account opening formalities and forms were checked by Miss. Rubina and Miss. Amna Signatures of the customers on the form were matched by checking with the specimen signatures (which the bank already have). Then it is stamped on different places as Verified and I.D. card was stamped as Original Seen. Then it was signed by Miss. Amna. All the documents must be signed by Operation Manager. Some customers were also coming for asking for their Bank statements (telling them that what type of transactions and withdrawals and at what time they have done in their accounts). 4th WEEK : I spent 4th week of internship in Credits Department where I worked under the supervision of Miss Asia and Sir Turab also works in the Credits Department who told about the functions of that department. He told that the Credit department provides different types of loans to different people. These may be consumer loans, business loans, secured and unsecured loans, Funded and non funded loans etc. He also told about the division of loans. 5th WEEK : In the 5th week, I shifted to Foreign currency and Lockers & OBC/ Clearing Department. Foreign Currency (F.C.) and Lockers & OBC/ Clearing, both were supervised by Miss Shafaq. She told about Foreign currency department and Sir Faisal told about the Lockers & OBC/ Clearing. Miss. Shafaq told that for a person who needs foreign currency, he/ she should have his account in this branch of the bank. If a person has foreign currency in his/ her account and he/ she needs Pakistani Rupees, then it is called Encashment. Bank can provide him Pakistani Rupees and he can also exchange through money changers. If the person wants foreign currency in place of Pakistani

14

Rupees then he/ she has to go for money changers to exchange it. Bank cannot do this type of exchange. A person can know market rate. Money changers will exchange money at the market rate but the bank rates are less than the market rate. She also told about the Foreign Telegraphy Transfer (FTT) and Invert Telegraphy Transfer (ITT). Then I went to Sir Faisal to get information about lockers/ OBC Clearing. She told that lockers are basically of three sizes and types. Small, medium and large. Small lockers charges are Rs. 25,000, Rs.30,000 for the medium size and Rs. 40,000 for the large size. For a person to get the facility of lockers, he should have his account in this banks branch so the charges of lockers at the rate of 5% annually can be deducted from the persons account. An application form is filled by the customer to take the services and facility of lockers. A person can keep anything (e.g. gold, documents etc.) except weapons in his locker. A person is given the respective key of his own locker. In case if the key is misplaced by the customer, a panel of judges in the bank sit and take decision. She also told that as they have almost 790 lockers so they have to provide lockers facility and service to their valuable customers (who provide them big deposits). OBC means Outward Billing Clearance. The cheques of different cities (except Rawalpindi and Standard Chartered) and banks which are received in the Remittances department are worked by Sir Faisal. She entered those cheques in the computer and then they are sent to NIFT where different banks received their respective cheques and Askari banks cheques are sent to their Askaris branches. 6th WEEK : I spent 6th week of internship on ATM Desk where I worked under the supervision of Miss. Amna. She told that ATM desk relates to the issuance of ATM cards. For a person who wants to issue a new ATM card , he/ she should have his/ her account in this branch of the bank. If the person does not have his account, he has to open his account to apply for the ATM card. A form is filled for the issuance of new ATM card and also for the ATM card in case of replacement. New ATM card is issued in almost 15 days. Some customers also apply for I- Net Facility that is Internet Banking Facility through which they can check their balances and can avail other services at their homes. My responsibility on ATM Desk (Front Desk) was to deal with customers in case of issuance of ATM cards, then assigning numbers to the forms (according to the register)

15

separately for the issuance of new ATM card and for the replaced card, then registering those names and then Miss. Amna save the customers names in the computer.

Recommendations and Suggestions:

To survive in the industry and to earn profits bank should not rely on its present sources and facilities but also it should establish new ways of acquiring, managing and sharing market information. To increase the computer specialist at branch level. To improve the services and to remove the problems of customer by making a spread customer complaint department. To increase locker facility and decrease the charges of lockers. Law and order situation in Pakistan is faulty that is why people are not confident to invest anywhere so we must control it. Job description must be clear so that it can define the job related duties and responsibilities.. To increase the number of branches. Bank should not give targets to employees for deposits because it distracts their attention from their duties. Keep the up to date information on their web sites. Bank should try to separate the working area and customers visit area. Instead of preferring the old employees of the other banks management should hire new and well-educated talent. This will contribute to the long-term benefits of the bank. Credit policy should cover both the rural and as well as urban areas. Credit facilities should be enhanced to small-scale businesses. The facilities currently availing by the army persons only, can be extended to general public e.g. house building finance. Employees who perform extraordinary and achieve more than their targets should be given bonuses.

16

 There should be separate marketing department in each branch. Although it will increase the expenses but benefits will be greater than expenses. Returns on the term and fixed deposits should be increased to the level of competitors.

CONCLUSION:
Overall analysis of the bank leads to the conclusion that bank is performing at satisfactory level. The bank is no doubt the best Modern Bank in Pakistan. And to keep competitive advantage over its existing and potential competitors bank is trying to introduce latest techniques on regular basis. The customers of the bank are increasing every year and that is why not only the deposits of the bank are increasing but also advances by the bank shows a steady growth during the last 5 years. As a result of increasing advances and investment in higher yielding Treasury Bills. Equity base of the bank is also increasing and in year 2000 it showed a positive growth of 20% over the period of last 5 years. Total assets of the bank are also increasing continuously. Similarly the earning per share is also increasing. During last year this ratio was highest in last 5 years. During its short life of operation bank has achieved many awards not only with in Pakistan but also from outside the Pakistan. So we easily without any qualm can conclude that; "Bank is going exactly on the way of development and progression"

17