Chapter-9

Research Question

Chapter-9 Consumer Bank Bank which is incorporated in order to facilitate the individuals and consumers in their daily life.
9.1 Consumer banking in Askari Bank Limited

Consumer Banking Services Divisions products and services mostly comprise auto finance, personal finance, mortgage finance, Askari Credit Cards under the MasterCard brand, Askari Corporate Credit Cards and Zarai Credit Cards. The consumer finance segment adversely affected by the recent phenomena of inflation and changes in interest rates. The recent data suggests further decline to the already contracting market of this segment. In this situation, our consumer banking repositioned itself with focus on containing the growth of problem loans and improving recovery efforts and internal controls. Also, a very cautious and selective approach was adopted for fresh lending during the year. Such efforts have started yielding results and the key performance indicators for this business have started to register notable improvement. Going forward, with the improvement in economy, our consumer finance shall be focusing on expanding target market and enhancing our portfolio through new and improved initiatives and products. Special attention is being given to business opportunities involving strategic alliances that will earn sustainable returns. Also, greater emphasis will be placed on secured form of consumer lending. We believe that with these measures, CBSD is positioned to increase product offerings while improving and maintaining a quality of its risk asset portfolio.

Internship report on Askari bank limited

Chapter-9

Research Question

9.2 CBSDs current product offerings include:

Credit Cards
(Platinum, Gold, Silver Zarai & Corporate)

Ask Card (Askari Debit Card) Askari Banks Personal Finance. Askari Banks Mortgage Finance (Home loans) Askar (Auto loans) Rupee Traveler Cheques Smart Cash ( Running Facility for customers) Askari Banks Business Finance (Business loans) Flexible Credit Plan. I - Net Banking (Internet Banking Services) Askari Touch N Pay (Electronic Bill Payment Services) Cash Management Services. . Askari Value plus (Deposits)

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Chapter-9

Research Question

9.2.1 Credit card

Features Details

Eligibility:

Pakistani Resident. Basic Supplementary Min 18 Yrs.- No Max Age limit. Min 18 Yrs.- No Max Age limit. Silver Approved Cat. Perm. A B C 30,000/30,000/35,000/40,000/Cont. 35,000/35,000/38,000/45,000/Perm. 50,000/50,000/55,000/60,000/Cont. 60,000/60,000/70,000/80,500/Gold

Age:

Salaried: 21-61 years. SEB/SEP: 21- 65 years.

Salary/ Income per Month:

NAC

SEB/SEP

Avg. Bal. Rs. 30,000/119,999/- (For last 6 mth. statement).

Avg. Bal. Rs. 120,000/- 400,000/(For last 6 months bank statement).

Platinum Card Salaried 150,000/Employment Status: References: Businessman. 200,000/-

Salaried: 1 year & SEB: 1 year. 1 relative + 1 associate not working in the same organization.

Debt Burden:

Maximum 50% of the net disposable income. (Including all facilities appearing

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Chapter-9 in ECIB). Charges: As per schedule of charges. Salaried Mark-up Rates: Basic/Supply. Balance Transfer. 3.2% per month. 2.15% per month. SEB/SEP 3.45% per month. 2.15% per month.

Research Question

1. Complete filled & signed application form. 2. Clear copy of Valid CNIC. 3. Latest (not older than 2 months) salary slip. Original or Attested. 4. Copy of any utility bill (received at business & residential premises. 5. IT-2 form or income estimation, in case of SEB/SEP (Sole Proprietorship). Documentation: 6. Copy of the NTN or sole proprietorship letter from the bank in case of SEB/SEP (Sole Proprietorship). 7. Last 6 months personal bank statement or company bank statement in partnerships. 8. Copy of the registered partnership deed or Bank Letter confirming the partnership status. 9. Undertaking of Credit Facilities already availed from all banks & Undertaking for not utilizing the facility for IPO Subscription.
CREDIT CARD
Features Details

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Chapter-9 Askari Master Card gives you extra value for the money you spend. The accumulated points appear on your monthly billing statement. To redeem your points for existing vouchers, you can choose from Askari Master Card Reward Catalogue or call Askari Master Card at 111-000-787. You can withdraw cash against your sanctioned credit limit as cash advance in Pakistan and around the World through ATMs displaying a Master Card, 1-Link, Cirrus & Maestro logo or designated Askari Bank Limited branches, during banking hours. Transfer your outstanding balance of other cards on to your Askari Master Card. Now you can avail this offer of balance transfer at incredible rates.

Research Question

BEST REWARD POINTS:

WORLDWIDE ACCEPTABILITY:

BALANCE TRANSFER FACILITY:

24-HOUR CUSTOMER SERVICES:

With Askari Master card., you are just a phone call away from the assistance you need. Our Askari Master card. customer service is available 24 Hours a day, 7days a week. To register complaints and to get response to your quires, please call UAN: 111-000-787.For Karachi, Lahore, Rawalpindi & Islamabad. Save yourself the inconvenience of applying for a separate Askari Master card. for your loved ones. You can request up to 5 supplementary cards when you apply for your own card. You will receive a consolidated monthly account statement which covers all cards. This offer is available to your loved ones over 18 years of age. Please report loss or theft of your Askari Master card. Immediately at our customer Services UAN: 111-000-787 for Karachi, Lahore and Rawalpindi/Islamabad. Once you have registered the loss of your credit card, your liability against its fraudulent use will be limited and we will send a replacement card within 48 hours of reporting. When you purchase your international ticket on Askari MasterCard, you are automatically covered under our Travel Insurance plan* (in case of personal accident resulting in death or permanent disability, up to Rs.8,000,000 for our Gold Card customers and Rs.4,000,000 for our Classic Card customers).

SUPPLEMENTARY CARDS:

LOST OR STOLEN CARDS:

YOUR TRAVELING SAFETY NET:

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Chapter-9

Research Question Next time you travel internationally, be our privileged guest at CIP Lounge, Quaid-e-Azam International Airport Karachi, and Rawal Lounge, Islamabad Airport. Your Askari MasterCard entitles you to a host of complementary services including:

COMPLIMENTARY LOUNGES AT AIRPORTS:

Snacks and beverages Internet, telephone and fax. Newspaper & magazine Flight information Cellular charger connections.

When you purchase your airline ticket for international travel on Askari MasterCard, you get: STRESS FREE TRAVELING:

Up to * Rs.10, 000 insurance cover for baggage delays exceeding 6 hours. Up to * Rs.20,000 as baggage loss claim

*Certain conditions apply DISCOUNT AND PROMOTIONS: Your Askari MasterCard also brings you a host of special discount and promotions across Pakistan. Remember to check your Credit Card statement inserts and our web-site for more information about ongoing promotions

9.2.2 Debit card

Activation/ De-activation

VISA DEBIT CARD

Details

tures

duct Type:

Debit Card.

tinctive Features: Classic Gold Cash withdrawal Limit is 50,000, Shopping Limit 200,000 & Funds Transfer Limit 250,000. Cash withdrawal Limit is 100,000, Shopping Limit 250,000 & Funds Transfer Limit 300,000.

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Chapter-9

Research Question 1. Literate individual customer. 2. Having Pak Rupee checking account under the category of Current, Saving, ASDA, Value Plus Accounts (Current & Saving) Basic Banking Account and Smart Cash etc., with credit balance and 'normal' status, may apply. 3. No minimum balance requirements for issuance or retention of the VISA debit card. An eligible customer may apply for any of the debit cards i.e. Classic or Gold. 4. Joint account holders, with the authority to operate the account singly, may be issued supplementary card(s). The supplementary Card(s) may be issued to only those joint account holders who can operate the account singly with either or survivor option. 5. A customer/staff is allowed to retain as many cards as number of accounts and is allowed to link multiple accounts with single debit card. 6. Multiple accounts of same customer, maintained at different branches of Askari Bank, may also be linked with single VISA Debit Card. If the customer has an account with other branch (es), the application receiving branch must verify & confirm the following either through online system or from the concerned branch (es). Five (05) Years. (New card will only be issued on customers written request ).

gibility:

idity

ivation/ Deivation

Through ABL Call Centre by calling at toll free number 0800-00078.

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Chapter-9

Research Question

9.2.3 Personal Finance

One can avail unlimited opportunities through Askari Banks Personal Finance. With unmatched financing features in terms of loan amount, payback period and most affordable monthly installments, Askari Banks Personal Finance makes sure that you get the most out of your loan. No matter what your need is, Askari Bank has more ways to serve you than ever before. Product Featuring: Borrower: Facility: Financing Limits: Tenor: Repayment: Markup Rates: Servicing: Balance Transfer Facility: Eligibility to Apply: Between 21 to 65 years. Minimum gross monthly income of Rs. 10,000/- only. Maximum upto Rs. 500,000/. (Clean) Financing Limits: a) Salaried: Employment: Minimum length of confirmed service with present employer is 6 months with a total length of 1 year service. b) Self Employed: Minimum 1 year in business. As per current schedule of charges. Charges/Fees: When you are working towards your financial goals, how you borrow can be just as important as how you invest. The right borrowing options can improve your savings, your cash flow and your ability to take advantage of personal or business opportunities. So, choose the right options and call us now to enquire about your entitlement amount and exclusive service. At Askari bank we make every effort to serve our customers with care. Age: Income: Resident Pakistani Nationals. Term Finance Maximum upto Rs. 500,000/. (Clean) Maximum upto Rs. 1 Million. (Secured) Maximum upto 5 Years Monthly Installments Competitive Available at all Askari Bank branches

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Chapter-9

Research Question

Not restricted to new financing, under Personal Finance scheme, we offer extended facilities, which are: Back to Original: Under this scheme borrower can avail extended amount of finance upto the utilized allocated amount, if his/her repayments are regular. Balance Transfer Facility: It gives the customer the opportunity to pay off his/her outstanding dues on their credit cards or other loans at a rate of interest much lower than what one pays on them. That not only frees up their credit limit, but cost of servicing the debt is greatly reduced. Computer Loans: This scheme was launched to promote the I.T. technology in the country. In this regard, we have signed MOUs with Multinational companies and large local corporates including schools & colleges. Dream Life (Financing for Consumer Durables): We are the financial market player in delivering quality service to customers with highly professional standards. We have joined hands with various Electronic Companies for sale, of the domestic appliances against consumer financing. Under this scheme, Askari Bank is financing products of these companies, which would benefit those people who can only afford to buy home appliances on installments due to limited resources. In addition to this, we have also signed agreements with other top manufacturers of automobiles for financing of motorcycles to the general public at most competitive rates.

9.2.4 ASKARI MORTGAGE FINANCE

PRODUCTS SPECIFICATION Ever since the inception of life, shelter has been rated among the primary needs of mankind. Owning a home for oneself still remains an exclusive dream for many. Askari Bank has made the realization of your dream to have a house of your very own possible. Whether you plan to build a house, tailor made to your requirements or buy a constructed house, Askari mortgage finance enables you to pursue your goal without any problems. Mortgage is a premium home financing product for customers aged between 23 65 years belonging to the upper, upper middle and middle income groups, residing in the urban areas of Pakistan. Askari Mortgage Finance offers you to get Home Loan Financing with five variations: Build a Home (Tranche Loans) Buy a Home Buy a plot and Construct

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Chapter-9 Renovation Balance Transfer Facility

Research Question

9.2.4.1 Build a Home: This type of loan is extended to customers who already own a piece of land and need funds to meet cost of constructing property on that land. The disbursement of this loan is made in four or less tranches during the construction phase depending upon the bills of quantity (BOQ) submitted by the customer and the quantity and quality of construction done. 9.2.4.2 Buy a Home: As the name suggests, this type of loan is meant for the purchase of an already constructed property. 9.2.4.3 Buy a Plot and Construct: This loan type is extended for the customers who want to buy a plot and construct a property on that plot. The disbursement of this loan is made in lump sum for the purchase of plot and then in four or less tranches during the construction phase depending upon the bills of quantity (BOQ) submitted by the customer and the quantity and quality of construction done. The bifurcation of limit for purchase of plot and construction will be applicable as per prevailing SBP prudential regulations. 9.2.4.4 Renovation: This loan is offered to customers who already posses a house and require funds for renovation/ improvement. Disbursal will be made only after customer has provided BOQ and an undertaking for utilization of this facility for the purpose of renovation/ improvement. 9.2.4.5 Balance transfer facility: This kind of loan is offered to existing borrowers of other institutions, who may want to switch over to Askari Bank Limited because of service, pricing or relationship reasons. The loan with the other financial institute should have been paid in accordance with banks credit history and debt burden requirements. Balance transfer facility is strictly not allowed for the properties that are still under construction. Branches Offering Housing Finance: All Branches in the following cities can be contacted for Askari Mortgage Finance: Karachi, Lahore, Islamabad, Rawalpindi, Peshawar , Gujranwala & Sialkot.

Internship report on Askari bank limited

Chapter-9

Research Question

General Terms and Conditions: An Individual must fulfill the following requirements to be eligible for applying Home Loan: Must be a Tax Payer. Must have a Valid Computerized National Identity Card (CNIC). Mobile is mandatory. In case of Buy / Build a Home cases, we do not require land line at current or potential residence,in case of Home Renovation cases in absence of PTCL Land line, any mobile or Wireless connection at residence is acceptable. Extracts of relevant SBP regulations and Banks policy on mortgage financing: Regulation R-15: Banks / DFIs shall determine the housing finance limit, both in urban and rural areas, in accordance with their internal credit policy, credit worthiness and loan repayment capacity of the borrowers. At the same time, while determining the credit worthiness and repayment capacity of the prospective borrower, banks / DFIs shall ensure that the total monthly amortization payments of consumer loans, inclusive of housing loan, should not exceed 50% of the net disposable income of the prospective borrower. Banks Policy The portfolio acquired through Mortgage Finance program shall include properties only in urban residential areas of major cities. New cities can be added only after setting up verifications & collections infra-structure. Aggregate debt burden will be considered. Debt burden inclusive of all existing and proposed liabilities should not exceed 50% of net disposable income OR as per SBP Prudential in force. Regulation R-18: The house financed by the bank/ DFI shall be mortgaged in banks/ DFIs favor by way of equitable or registered mortgage. Banks Policy Lien Marking, Equitable plus Token registered mortgage/ full registered mortgage/mortgage under section 58(f) of transfer of property act 1882. ELIGIBILITY CRITERIA: Primary Borrowers age Salaried Minimum age: 23 Years Maximum age: 60 Years at maturity SEB/P

Age

Minimum age: 23 Years Maximum age: 65 Years at maturity Co-borrower Only Son and Spouse are allowed as Co-borrower. However, a blood relative Internship report on Askari bank limited

Chapter-9 is allowed in case of joint ownership in property: Minimum age: 18 Years Maximum age: 65 years Income Rs. 35000/- per month Additional / 1. Rent Agreement has become a major source of additional income of Surrogate our applicants. Therefore, to authenticate, all rent agreements will Income Source have to be supported by the title documents of that particular property. 2. The title has to be in applicants name (primary or co-borrower). 3. Any other source of Income which can be verified through documents. a) Salaried Employees with a minimum service length of 2 years including present employer. )Self Employed Professionals Architects, Doctors/ Dentists, Engineers, Chartered Accountants and Consultants. Minimum 2 years in profession) Self Employed Business Individuals 1. Minimum 3 years in same line of business 2. In family businesses only, where a Director was engaged in the business prior to being elevated to Director, or was made Director at least a year ago due to educational responsibilities/ engaged in other family related business, the same will also be considered. The business in such case must be 3 year old at least, and the Director applying for loan must have been in the same post for minimum of 1 year.

Research Question

Length of Employment

Eligible Financing limits under each product category: Product Category Minimum limit Maximum Limit Build a Home (Tranche Loans) Rs. 300,000 Rs. 30,000,000 Buy a Home Rs. 300,000 Rs. 30,000,000 Buy a plot + Construction Rs. 300,000 Rs. 30,000,000 Renovation Loan amount calculation not to exceed the 50% of the total asset value OR 60% of Assets value, whichever is lower. Pricing Criteria (Base rate and frequency of revision) Markup for Salaried (All Categories) Mark up for Self Employed Businessmen *12 month KIBOR ask side average.

*KIBOR + 4% *KIBOR + 5%

OR otherwise according to a corporate deal between Askari Bank Ltd & a corporate entity.

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Chapter-9 Research Question The rates will be based on a floating rate arrangement wherein the loans linked to 12 month KIBOR will be reviewed after a 12 month interval based on the calendar year i.e. 1st January of every year till maturity.

SCHEDULE OF CHARGES Processing Fee Rs.6,500/- (Flat) as Per SOC Legal/documentation/valuation/income At actual estimation charges Enhancement Charges Rs.6,500/- (Flat) as per SOC Late Payment Charges Rs.750/- per installment Cheque return charges Rs.500/- per cheque Premature Termination Charges a) In case of early settlement by the borrower charges will be applicable in the following manner. i) 1st Year: Upto 6.5% on outstanding balance ii) 2nd Year: Upto 5.5% on outstanding balance iii) 3rd Year onwards: Upto 4.5% on outstanding balance. b) Upto 11% of the outstanding balance, in case of balance transferred to other bank, irrespective of the time period. Balloon Payment Balloon Payment allowed upto a maximum of 20% of the outstanding balance in a year. Additional balloon payments will be upto 6% charges on the amount being paid (balloon payment amount). DOCUMENTATION: Along with a filled out Application Form where all details & mandatory fields duly filled, we will require the following documents: 1 2 3 Salaried Individuals 4 5 6 7 1 2 Attested copy of CNIC. Two passport size photographs Copy of the latest paid utility bill received at the residential address. Employment confirmation letter from the employer mentioning the length of service, designation, gross salary and additional monthly perks Lass three months original salary slip or attested photo copy Lass six months bank statement Copy of the Me documents/other supporting documents of the properly to be placed with the bank as security. Attested copy of CNIC Two passport sire photographs

Internship report on Askari bank limited

Chapter-9 Proprietorship Certificate from Bank Indicating title & account opening date 4 Copy of the title documents or mot deed of business premises 5 Copy of the latest paid utility bill reserved at the residential address 6 Copy of the latest bill received at the business address. Sole 7 Lost six months batik statement (business / personal) Proprietorship Copy of the title documents/other supporting documents of the property 8 Concerns to be placed with the bank as security. Copy of the latest income tax return or NTN Certificate or other levy 9 able payment receipts 1 Partnership Concerns 2 Attested copy of CNIC. 3 Two passport size photographs. Partnership Deed or Bank Certificate Indicating title, account opening 4 data 5 Copy of title documents or rent dad of business premises 6 Copy of the latest paid utility bill received at the residential address. Partnership 7 Copy of the latest bill received at the business address. Concerns 8 Lost six moths book statement (business / personal) Copy of the title documents/other supporting document of the property to 9 be placed with the Cash as security. Concerns, of the latest income tax return or NTN Certificate or other levy 10 able payment receipts 3 1 2 3 4 5 6 7 Attested espy of CNIC. Two passport size photo graphs, Bank Certificate Indicating title & account opening date Copy of the title documents or rent deed of bottoms premises. Cops of the latest paid utility bill received at the residential address Copy of the latest bill received at the boon= address. Last six months bank statement (business I personal) Copy of the title documents/other supporting documents of the property 8 to be placed with the bank as security Copy of the latest income tax return or NTN Certificate or other levy 9 able payment receipts 10 Memorandum and Articles of association duly certified by SECP 11 Form 29 and Form A duly certified by SECP.

Research Question

Limited Companies

Repayment Frequency and mode etc. Equal Monthly Installment comprising principal and mark-up according to the amortization schedule based on pricing and tenure. The amortization schedule will be revised consequent upon review of the floating rate at the specified intervals.

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Chapter-9

Research Question

Frequently Asked Questions: 1. What is the Mark up rate for Mortgage Home Finance scheme? *KIBOR + 4% for Salaried Person and * KIBOR +5 for SEP & SEB 2. What will be the loan tenor? Askari Mortgage Finance is available for the period ranging from 1 to 20 Years 3. What are the minimum and the maximum loan amount that can be acquired? Minimum amount is 300,000 and Maximum amount is 30Million. 4. What is the Loan to Value ratio? Or how much financing can I get against my property? Loan amount calculation not to exceed the 50% of the total asset value OR 60% of Assets value, whichever is lower. 5. Who is eligible to apply? Please see the Eligibility Criteria. 6. Who will assess the value of property? Different Qualified and experienced property valuation firms which are on approved panel of Askari Bank Ltd conduct the property valuation.

7. Will my spouses income also be considered? Yes you can also club your spouses income to qualify for higher amount of loan. In this caseyour spouse will be treated as a c borrower. 8. I live in Karachi and want to Purchase/ Renovate/Construct a house in Lahore. Can I avail your financing facility? Yes, but certain terms and conditions are applied 9. I am a property dealer. Will I get an incentive from Askari Bank if I bring in Mortgage customers? No, we do not offer any commissions/ rewards to the property dealers. 10. How much will I have to pay for: Loan Processing, Legal Opinion Property Valuation and Income Estimation? Please see the Schedule of Charges.

11. Are these refundable, if my loan is declined? Legal Opinion Property Valuation and Income Estimation charges are non refundable, however, the processing fee is charged once the loan application is approved Internship report on Askari bank limited

Chapter-9

Research Question

12. I am a Businessman/Self Employed Professional, how will you assess my income? Income will be accessed through Qualified CAs/ Income estimators who conduct this estimation through documentation and business activity to estimate a minimum income of your business. 13. I want to co-own a property with my cousin. Is it possible to avail Askari Mortgage for this purpose? No, only son and spouse are allowed to apply for a Mortgage Finance as a co-borrower.

9.2.5 Ask 4 car

ASK 4 CAR
Features Details

Product Type: New Vehicles:

Financing for New & Used Vehicles.

Mark-up: 18% p.a for 3 Years, 19% p.a for 4 Years & 20% p.a for 5 Years. Down Payment: Minimum 15% & Maximum 60%. Charges: As Per "Schedule of Bank Charges". Insurance: Built in Insurance. Used Vehicles: Mark-up: 20% p.a for 3 Years, 21% p.a for 4 Years. Down Payment: Minimum 30% & Maximum 60%. Charges: As Per "Schedule of Bank Charges".

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Chapter-9 Insurance: Built in Insurance. Makes:

Research Question

Suzuki, Honda, Toyota & Hyundai (Please note 800 CC used vehicles are not allowed).

Vehicle Age: Year of manufacturing not older than 5 years at the time of loan. Ownership Status: Third Registration in the name of AKBL (Registration in the cities where Askari Branches are located). 1. Standard Finance Documents. 2. Other Mandatory Documents. Documentation: 3. 15 Report (Police Clearance Report). 4. Evaluation Report by approved surveyors. 5. Fresh Vehicle ownership certificate from ETO prior to transfer in the name of AKBL. Standard Financing Documents 1. Completely filled signed Application. 2. Clear Attested photocopy of CNIC of applicant & references. 3. Attested Photograph. 4. PTCL Bill or Utility bill relevant with the address mentioned on application. 5. Post dated cheques. 6. One Year bank statement. 7. Specimen Signature card verified by the bank. 8. Undertaking on signature if signature differs from CNIC. 9. Latest Salary slip. 10. Proof of business & other income. 11. NTN certificate (optional). 12. Bank letter for proprietorship.

Internship report on Askari bank limited

Chapter-9

Research Question 13.Wealth statement required in case of financing of 1.5 M & above. 14. Partnership deed (if applicable). 15. Verified CNIC of the guarantor. 16. Guarantor Net worth Statement (optional).

9.2.6 Askari rupee traveller cheques

Askari Bank Limited has always remained at forefront in introducing innovative and unique products in banking sector. Our financial instruments provide greater financial freedom and security in an unmatched way to our valued customers. Askari Bank offers you its Rupee Traveller Cheques eliminating all financial risks while traveling. So avoid risk of carrying cash through Askari Banks Rupee Traveler Cheques. Your Best Travelling Companion

Why Askari Banks Rupee Traveler Cheques ?

1. 2. 3. 4. 5. 6.

Free issuance Free encashment Profit will be offered at the time of encashment* Nationwide acceptability Facility of encashment in cash to the purchaser Facility of encashment through clearing

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Chapter-9 7. No purchasing limit 8. Valid until encashed 9. Easily transferable 10. Account relationship not mandatory 11. Fastest refund procedure in case of loss / theft 12. Safe & secure mode of funds transfer 13. Available in Rs. 10,000 Denomination at all branches of Askari Bank 14. Perfect subtitute of your cash .

Research Question

9.2.7 Askari Touch N Pay

(Electronic Bill Payment Services through this the customer can easily pay their bills utility bills through this you can pay different utility bills of kesc, lesco, pepco,and ptcl etc. mobile phone bills customer can pay and rechrge their postpay and pre paid connections of mobilink Jazz,ufone , warid , ant telenor etc. funds trasferr askari bank limited and 1 link members banks funds transferr facility available through askari ATMs

9. 2. 8 Cash Management Services

Askari Cash Management Services, aimed to effectively manage the accounts receivable portfolio of medium and large corporate entities. While this service helps the corporate entities to improve their liquidity, due to our well diversified branch network. Important Features The service primarily aims at providing clearing, collection and cash / transfer facility to corporate, under one resource center, which will handle the process through the branches and provide adequate reporting to the corporate clients, on various aspects of their accounts receivable portfolio, every month.

Internship report on Askari bank limited

Chapter-9

Research Question

The high difference between lending and deposit rates indicates that the depositors are not getting due returns, as compared to huge profits being earned by the banks. Indeed, the lending rates have increased and deposit rates have decreased over the last few years.

Diversified portfolio due to huge customer base enables bank to reduce their dependence on few or single borrower

The spread (higher lending rates and lower deposit rates) is much higher in which of the following country?

Sri Lanka India

Pakistan

Bangladesh Providing access to purchasing power to the middle class consumer has been the most significant achievement of this product class Consumer finance is an established financial product across the globe, particularly in mature economies, where it constitutes a significant portion of banks lending portfolios The concept of consumer financing is based on the need for an institutional arrangement that provides consumers with financing support to enhance their consumption and, as a result, improve their standards of living The net wealth, or financial position, of the household sector is therefore estimated on the basis of selected indicators including trends in personal deposits of the banking system, individual investments in the stock market, and growth in personal investments in National savings Schemes (NSS

Banks have a vital role to play in credit expansion and Pakistani consumers are now faced with more consumer banking opportunities and options than ever before. I think as the consumer banking market grows, so will the sophisticatio

Benefits of Consumer Finance

Rising standard of living Forced savings Help consumes meet emergencies Increase in demand for physical Goods

merits
Finance purchases out of future income Internship report on Askari bank limited

Chapter-9 Raise standard of living Financial emergencies No borrowing from friends or postponing of present consumption Higher demand for physical goods and Services

Research Question

PROCEDURE FOR AVAILING CONSUMER FINANCE

a) Pre-sanction stageI. Submission of proposal- On a prescribed format supplied by a financier. Contents Personal profile Employment credentials Financial aspects Product details Financial requirements Guarantor profile Enclosures required

.5 Conclusion: The real beneficiaries of consumer finance are the people who did not have capacity to purchase expensive household items in a single go but could afford them because of consumer finance, the commercial banks that have been earning large interest and huge returns on their investment in consumer finance and the economy that got impetus for growth. The point of concern is that consumer finance is helpful only for those who are to some extent affluent to opt for it. In case economy is to sustain growth through consumer finance as one of the important factors of growth, then income inequalities should be bridged and income level be increased to develop paying capacity of large number of consumers. Inflation should be contained and a strong broad based middle class be built. Unless these imperatives were met, it is doubtful if consumer finance based on weak middle class supported by remittances can really play the same role that it is played by strong and affluent middle class both in developed economies and to some extent in emerging economies

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Chapter-9 references

Research Question

http://www.kpmg.com.pk/industries/ind_bankingsurvery.htm

Internship report on Askari bank limited