Askari Bank Report Original

Internship Report of Askari Bank Ltd.
INTERNSHIP REPORT ON
ASKARI COMMERCIAL BANK LIMITED
Syeda Mariam Nida
Submitted in partial fulfillment of the requirements

for the degree of Master / Bachelor of Business
Administration
At
National University of Modern Languages

Islamabad, Pakistan
June 2010
© Copyright by Syeda Mariam Nida, 2010
NUML Page 1
DEDICATION
"I owe immense sense of gratitude to my beloved Parents & family members
who not only support me financially throughout my career and also gave
confidence to me. I also dedicate the project to my teachers and friends who
remained the source of encouragement throughout.
At the last very humbly raising my hands to pray for success in world, good
health and long life of my parents and teachers whose encouragement and
prayers enable me to complete my studies".
NUML Page 2
ACKNOWLEDGEMENT
By the Grace of Almighty Allah, the most Merciful, the most Beneficial, I'm
today submitting my internship report; I have the pearls of my eyes to
admire the blessings of the compassionate, omnipotent, the Merciful and
the beneficent Allah who is the entire source of knowledge and wisdom.
Further more, I would like to acknowledge the help on this as well as many
other writing projects over the years that I received from my teachers who
taught me over the whole of my course in this university. Second, 1 want to
give special thanks to two of my teachers who specially helped me in making
this project i-e Madam Hina Shahab. Next, I would like to acknowledge the
interaction that I have had with my colleagues, Sir Abid, Sir Sajjad Haider, Sir
Rizwan Malik, Miss Uzma, Sir Aftab Iqbal, and Sir Tahir Jamil during my
internship in the Askari Commercial Bank (G.T Road Branch, Kharian.) and
helped me to learn a lot. In particular I would like to acknowledge the total
support and standards of excellence provided by my teachers and long time
Management Sciences staff. I can never forget the education,
encouragement, and scholarly values that I received from all the teachers
when starting out in my academic career. Over the course, I would have
been very lucky to have been associated with excellent management
students; I would like to thank them all for teaching me as much as I have
learned from them.
NUML Page 3
EXECUTIVE SUMMARY
The banking structure in Pakistan comprises of the following types. State

Bank of Pakistan, Commercial Bank of Pakistan; Exchange Banks, Saving
banks, Cooperative banks, specialized , credit institutions. The state bank of
Pakistan is the Central bank of the country and was established on July 01,
1948. The network of bank branches now covers a very large segment of
national economy. The State Bank of Pakistan issues the shares of these
periodically. Bank employees and other common peoples can also purchase
these shares and earn profit.
This internship report is based on the job, which I did in Askari Commercial
Bank as Internee in the Different departments from June 9th 2008 to July
26th 2008.
In remittance department like any other bank NBP also have instruments for
transferring of money, Telegraphic Transfer, Mail Transfer, cash department
both deposits and withdrawals go side by side. This department works under
the accounts department and deals with cash deposits and payments. This
department maintains the following sheets, books, and ledger of account
cash received voucher sheet.
Cash paid voucher sheet, Paying-in-slip, Cheque Book, Cash balance book.
Bank provides this facility to the people who need advance money to meet
their requirement. Party dealing with other banks financial condition of
borrower business and as a first step credit proposal is being made.
Demand Finance, Cash Finance, Foreign bills purchased. Finance against
imported goods, Finance against foreign bills, Export Refinance Part I (Pre
Shipment) & others. In foreign exchange, ACBL is dealing Foreign Currency
Accounts, Foreign Remittances, and Foreign Bills for Collection, Imports &
Exports. Letter of credit facility is being provided by ACBL in foreign
exchange.
NUML Page 4
SWOT & PEST Analysis prepared primarily for decision-making. They play a
dominant role in setting the framework of managerial decisions.
NUML Page 5
TABLE OF CONTENTS
Title page
Approval Page
Dedication
Acknowledgement
Executive Summary
Table of Contents
Chapter-1 Introduction
1.1 Definition and purpose of Bank 09
1.2 History of Askari Commercial Bank 09
1.3 Vision statement 10
1.4 Mission Statement 10
1.5 Goals of Askari Commercial Bank 11
1.6 Objectives of Askari Commercial Bank
11
1.7 Organization Structure 11
1.8 Level of Customer service, Rating & Achievements
12
Chapter-2 Product & Services of Askari Commercial Bank
2.1 Products 15
2.1.1 Deposits 15
2.1.1 (a) Local currency deposits 15
2.1.2 Advances 16
2.3 Products
16
2.3.1 Ask card
16
NUML Page 6
2.3.2 Ask power

16
2.3.3 Ask Smart Cash
17
2.3.4 Askari Master Card
17
2.3.5 Askari Traveler's Cheques
18
2.4 Services 18
2.4.1 Foreign Remittances 18
2.4.2 Telegraphic Transfer 19
2.4.3 Demand draft & Pay Order 19
2.4.4 Mail Transfer 19
2.4.5 Bank Draft 20
2.4.6 Letter of Credit 20
2.4.7 Askari Commercial Bank ATM 20
Chapter - 3 Departmentalization
3.1 Cash Department 24
3.2 Clearing Department 26
3.3 Advances Department 27
3.4 Foreign Exchange Department 28
3.5 Deposit Department 30
Chapter No-4 ACBL SWOT Analysis
4,1 Strengths 35
4.2 Weaknesses 36
4.3 Opportunities 36
4.4 Threats 37
Chapter-5 PEST Analysis of ACBL
5.1 Political & Legal Environment 40
5.2 Economic Trends 41
NUML Page 7
5.3 Socio Cultural Environment 41

5.4 Technological efforts 42
Chapter-6 Human Resource Analysis of ACBL
6.1 Recruitment and Selection 45
6.2 Training and Development 46
6.3 Performance and Evaluation 47
6.4 Compensation 48
Chapter – 7 Internship Experience

7. Introduction
1st week 50
2nd week 51
3rd week 51
4th week 51
5th week 51
6th week 52
Experience and Learning 52
7.1 Worked In Different Department
52
Dynamic and Advanced Approach 52
Customer Orientations and Personalized Service
52
Professional Style of Management 53
Healthy, Competitive Working Environment
53
Modern Banking Policies 53
7.2 Negative Dimensions of Experience and Learning 53
Chapter-8 Conclusion and Recommendation
8.1 Recommendations 56
NUML Page 8
8.2 Conclusion 57
8.3 References 59
NUML Page 9
CHAPTER 1
ORGANIZATION OVERVIEW
NUML Page 10
Introduction of Askari Commercial Bank Limited- ACBL

1.1 Definition and purpose of Banks
Banking is the business of providing financial services to consumers and
businesses. The basic services a bank provides are checking accounts, which
can be used like money to make payments and purchase goods and
services; savings accounts and time deposits that can be used to save
money for future use; loans that consumers and businesses can use to
purchase goods and services; and basic cash management services such as
check cashing and foreign currency exchange. A broader definition of a bank
is
"Any financial institution that receives, collects, transfers, pays,
exchanges, lends, invests, or safeguards money for its customers."
Banking services serve two primary purposes:
First, by supplying customers with the basic mediums-of-exchange (cash,
checking accounts, and credit cards), banks play a key role in the way goods
and services are purchased. Without these familiar methods of payment,
goods could only be exchanged by barter, which is extremely time-
consuming and inefficient.
Second, by accepting money deposits from savers and then lending the
money to borrowers, banks encourage the flow of money to productive use
and investments. This in turn allows the economy to grow by letting people
to purchase cars or houses, and businesses to expand and build the new
factories that the economy needs in order to produce more goods and
services. Enabling the flow of money from savers to investors is called
financial intermediation and this is what banks are established for.
1.2 History of Askari Commercial Bank
The banking sector has witnessed a dramatic change during the last ten
years with the
NUML Page 11
development ofAskari Bank, which is not only redefining priorities and focus
of the banks, but also threatening the domination of traditional players.
Askari Bank Limited (ACBL) works as a Unit of Army Welfare Trust was
established for the Welfare of Army Officials. The office of Army Welfare
Trust is situated at AWT Plaza, Rawalpindi. AWT offers the "AWT Saving
Scheme" to the army officials only. AWT has itsunits as under:
Askari Associates
Askari Leasing
Askari General
Private Business
Textile Mills
Cement Industry
Askari Commercial Bank
The story begins with the incorporation of Askari Commercial Bank limited in
Pakistan on October 09, 1991, Askari Bank Commenced (begin) to operations
in April 1992, as a public limited company. The bank is listed on the Karachi,
Lahore and Islamabad Stock Exchanges and the initial public offering was
over subscribed by 16 times.
While capturing the target market share amongst the view banks, Askari has
provided
good value to its shareholders. Its share price has remained approximately
12% higher than the average share price of quoted banks during the last
four years.
Askari Bank has expanded into a nation wide presence of 140+ Branches,
and an Offshore Banking Unit in Bahrain. A shared network of over 800
online ATMs covering all major cities in Pakistan supports the delivery
channels for customer service. As on December 31, 2004, (he Bank had
equity ofRs. 6.016 billion and total assets ofRs. 107.168 billion, with over
475,000 banking customers, serviced by a total staff of 2,118.
Askari Bank is the only bank with its operational head office in the twin cities
of Rawalpindi-Islamabad, which have relatively limited opportunities as
NUML Page 12
compared to Karachi and Lahore. This created its own challenges and
opportunities, and forced as to evolve an outward-looking strategy in terms
of Askari market emphasis. As a result, Askari developed a geographically
diversified assets base instead of a concentration and heavy reliance on
business in the major commercial centers of Karachi and Lahore, where most
other banks have their operational Head offices.
1.3 Vision Statement
"To be the Leading Bank in the Region"
1.4 Mission Statement
"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 modem and progressive
organizational culture of meritocracy, maintaining high ethical and
professional standards, while providing enhanced value to all our
stakeholders, and contributing to society".
1.5 Core Values / Strategic Goals of ACBL
Commitment:
To deliver quality services through innovative technology and effective
resource management.
Integrity:
To create relationship with the customers based on trust, and to be a reliable
organization for the customers.
Fairness:
To be fair with the customers, to make fair dealings, and to create fair
relation, and to be fair the job.
Team Work:
To work with the organization and to achieve the goal by mutual efforts.
1.6 Objectives of Askari Commercial Bank
The following are the outlined objectives of the Askari bank limited.
• To build & sustain a high performance culture, with a continuous
improvement
NUML Page 13
focus.
• To develop a customer-service oriented culture with special emphasis on
customer care and convenience.
• To build an enabling environment, where employees are motivated to
contribute to their full potential.
• To effectively manage and mitigate all kinds of risks inherent in the
banking
business.
• To maximize use of technology to ensure cost-effective operations,
efficient management information system, enhanced delivery capability and
high service standards.
• To manage the bank's portfolio of businesses to achieve strong. and
sustainable shareholder returns and to continuously build shareholder value.
1.7 Organizational Structure
Organizations cannot function without proper arrangements for its specific
tasks and duties. For this purpose organizations are divided into
departments. "The process of grouping jobs according to some logical
arrangements" is called departmentalization. The basis of
departmentalization is commonly product, customers, function and location.
Askari Bank has done its departmentalization forming a matrix structure.
Following are the main divisions of the organization.
1.7.1 Organizational Chart;
Organizational chart shows the linkage of employee to employee infect it
covers every single individual who is working in one specific organization for
common goal. Organizational chart of Askari bank shows the step by step
relation from president to senior vise president then in branch hierarchy it
shows the step bye step relation from vise president to peon.
Organizational is shown in appendix.
 Army welfare trust was established mainly for the welfare
of army officials.
NUML Page 14
 The office of army welfare trust is situated at AWT PLAZA

Rawalpindi.
 AWT offers the "AWT Saving Scheme" to the army officials
only.
 AWT has further as units.
1. Askari Associates
2. Askari Leasing
3. Askari General Insurance
4. Private Businesses
a) Textile Mill
b) Cement Industry
c) Petroleum
5. Askari Commercial
 Askari Association deals with the share holding.
 Askari General Insurance & Askari Leasing are registered at stock
exchange.
 Cement Industry, Firstly produced "Nizam Cement".
 Recently AWT invested their capital with Mobil named as "Askari
Mobil.
1.8 Level of Customer Service, Rating & Achievements

• Customer Services:
Knowing your customer and their needs is the key to any business and
success. Their
products and services are structured to touch and improve the quality of
lives of all
segments of society. It's their constant endeavor to provide the most
efficient and
personalized service to customers.
NUML Page 15
Their products are as diverse as their market segments. They have

structured and syndicated financing arrangements working capital finance,
Balancing Modernization-Replacement (BMR) facilities, financing of
international trade, customer credit, small business loans, ' credit cards and
investment products for the individual saver.
Askari Bank is proud of the pioneering role in providing the most modern
technological 'service to its customer based, which today exceeds 350,000
relationships.
• Credit Rating:
During the year, the Pakistan Credit Rating Agency (PACRA) maintained both
our long term and shot term ratings at 'AA' and 'A+', respectively (the late
being the highest possible in this category). These ratings signify a very high
credit quality and very strong capacity for timely payment of financial
commitments.
• Awards & Achievements :
Over the years, ACBL have received several awards for the quality of our
banking service to individuals and corporate. ACBL have been declared "The
Best Bank in Pakistan" by the Global Finance magazine for the years 2001
& 2002. Also, ACBL have been given the "Best Consumer Internet Bank"
award for Pakistan by the same magazine for the year 2002. In 1994,1996
and 1997, ACBL received Euro money and Asia money awards. Askari has
A1+ rating for short-term obligations - the highest possible for the category,
while the long-term rating stands at AA. Askari Bank won the prestigious
"Best Presented Annual Accounts" awards for 2000 and 2001 from the
Institute of Chartered Accountants of Pakistan and the Institute of
Cost and Management Accountants of Pakistan, for the services sector.
For the past four years, ABL have received prizes from the South Asian
Federation of Accountants for "The Best Presented Annual Accounts"
for the financial sector, in the ASSRC region.
Over the years, Askari Bank has proved its strength as a leading banking
sector entity, by achieving the following firsts in Pakistani banking.
NUML Page 16
 First Pakistani Bank to offer on-line real time banking on a

countrywide basis.
 First Bank with a nation-wide ATM network
 First Bank to offer Internet Banking Services
 First Bank to offer E-Commerce
solutions
NUML Page 17
CHAPTER 2
PRODUCTS & SERVICES
OF ASKARI BANK
NUML Page 18
Products and Services:

The product & services of Askari commercial bank limited are developed
keeping in view the customers needs & wants, & the expectation that the
customer attaches with its financial institutions.
A product ACBL includes all those services which customer normally required
for effectively managing his business.
ACBL offers the following financial services to its customers.
1) Deposits
2) Advances
3) Products
4) International banking services
2.1.1 Deposits
One of the basic functions of commercial banking is to receive deposits.
ACBL accepts
deposits in both local & foreign currency
2.1.1 (a) Local currency deposits:
• Current Account
• PLS Saving Account
• Term Deposit
• Notice Deposit
• Askari Faida Account
• Askari Special Deposit Account

• Value Plus Saving Account
• Askari Advantage
• Askari Faida Account
• Installment account
• Compound advantages
NUML Page 19
2.1.2 Advances:
Advances are major sources of earning of income for commercial banks.
Banks attracts surplus balances from the customers at low interest rates &
makes advances at higher interest rates to the individuals or business firms,
ACBL offer these facilities in two forms:
• Funded facilities
• Non-Funded facilities
2.3 Products;
1. Personal finance
2 Mortgage finance
p. Business finance
4, Askcar (car finance)
5. Askcard
6. Value plus
7. Traveler cheques
8. Askpower
2.3.1 ASKCARD:
"ASKCARD" is an Askari Bank's Debit Card. ASKCARD has been introduced as
a shopping companion. It lets the customer do shopping, dine at restaurants,
pay their utility bills, transfer funds, withdraw and deposit cash through ATM
anywhere, anytime.
2.3.2 ASKPOWER:
ASKPOWER is the name for Askari Bank's Pre-paid Card. Although, it is a
"stored value" card, but unlike an ATM or debit card, ASKPOWER is not
connected to any account. It is an instant cash card that can be used at any
ACBL ATM or other ATMs carrying 1-Link symbol, 1-Net Banking and at all
designated Point of Sale terminals. The card offers remarkable convenience
for:
• Everyday purchases
NUML Page 20
• Payment of bills
•Safe alternative for carrying cash during traveling, special occasions, and
emergency back up.
• Easy transfer of money from one ASKPOWER card to other ASKPOWER
card.
• The ideal accessory for students
• As a pre-paid card, ASKPOWER has its own built-in spending limit; the
customer
can set how much money is loaded to it and how frequently it is topped up.
• Money can be conveniently loaded to any card either by depositing cash
at any ACBL Branch or through the ATM
• I-Net Banking from another ASKPOWER Card.
Key Features:
• Issued to ACBL / Non-ACBL customers.(NIC Card holders)
• Minimum Issuance Limit: Rs. 500/-.
• 100% customer acceptance.
• Card can be reloaded anytime.
• Transfer of money from one card to another card.
• Payment of Utility Bills through ATMs and Internet.
• Instant access to money; 24 hours a day, 7 days a week.
• Easy cash withdrawal through ACBL ATMs or ATMs carrying 1-Link or Orix
Leasing network symbol.
• Fast, private, safe and secure option for cash transfers.
• Replacement of card in case of loss, theft, damaged or defective card.
2.3.3ASK SMART CASH
This personal line of credit is set up with a specified credit limit agreed upon
by customer and ACBL.
• The customer can withdraw cash from his credit line as and when they
require.
• The markup is charged only on the utilized amount and for the number of
days the credit is used.
NUML Page 21
• The markup is lower than a credit card.

• Personal loan and balance transfer facility.
• Finance Amount up to Rs 1 Million revolving credit line
2.3.4 ASKARI MASTER CARD:
The distinguishing characteristics are:
• No joining fee
• Worldwide acceptability:
This card is acceptable all over the world. It provides services at thousands
of locations in Pakistan and over 14 million establishments all over the
world. The customer can receive their monthly billing in Pak Rs, regardless
of the currency of purchase.
• Traveling safety net
In case the travel tickets are purchased on Askari master card, they are
automatically covered under the travel insurance plan for up to Rs.8 million
on a gold card and Rs.4 million on silver card.
2,3,5 ASKARI TRAVELER'S CHEQUES:
Askari Bank's Travelers Cheques are available in the denomination of
Rs.l0,000/-.the
distinguishing feature of these travelers cheques are:
• Light and safe
• No service charges for purchasing Askari traveler's cheques. They can
be brought against cash or debit to the personal account of the
customers
• The customers are charged only 0.10% commission whenever the
traveler cheque is encashed after 30 days of holding
• High security lithograph
• Ultra violet printing \
• Special thread
• Anti scanner pyramid design
• Unique micro lines
NUML Page 22
• Easily refundable in case of loss and theft

2.4 Services of Askari Commercial Bank
2.4.1 Foreign Remittances:

Remittance department performs the function of remitting funds i.e. to
transfer funds for customers from one location to another. The transfer of
funds may be from one branch to another or from one bank to another
Remittances mean "the transfer of money or fund from one place to another
place through bank". It may be "inland remittance" or "Remittance" Inland
remittance may be classified as:
1) Within locality.
2) Outside locality.
Within Locality:
When a branch situated in Islamabad is required to send the draft to any
other branch
situated in the same locality, the process will say to be within locality. I.e.
ACB main branch Islamabad, send any draft to ACB Apara branch, this is
known as within locality.
2.4.2 Telegraphic
Transfer:
Telegraphic transfer is an important mode of remittance. It is the quickest
mean of transferring the funds from one place to another place by the use of
telephone or
telegraphic.
Now a day, new technology is used for this purpose i.e. fax, e-mail. The big
traders and
businessman use this method of remittance in this method of remittance the
purchaser is not responsible for the dispatch.
How One Can Apply:
NUML Page 23
The purchaser fills an application form in which he mentioned the sum of

(T.T) name of payee, accounts number of payee and place of payment etc.
The purchaser signs the application form and the bank charge the
commission for this purpose.
2.4.3 Demand Draft & Pay Order:
For safe, speedy, and reliable way to transfer money, ACB Demand Drafts
and pay orders are available for customers at very reasonable rates. Any
person whether an account holder of the bank or not, can purchase a
Demand Draft from a bank branch. A demand draft is an order drawn by a
bank on its branch or on another bank in a different place requiring the later
to pay on demand the sum of money specified in the draft. Pay order is just
like demand draft except the pay order is made for local transfer of money
whereas demand draft is meant for remittances of funds from one city to
another.
2.4.4 Mail Transfer:
Mail transfer draft is one of the bank modes of remittance. Mail transfer is
issued by one branch of bank to another branch of the same bank by
instructing to branch to pay the other branch by issuing mail transfer
receipts.
In M.T the purchaser is not responsible for dispatch, but the bank will be
responsible for dispatch.
How to Apply:
The purchaser fills application forms, which includes the amount of M.T name
of payee, account number of payee, name of the bank branch. Place of
payment and signature of purchaser. Bank charges the commission for this
service.
2.4.5 Bank Draft:
Bank draft is the most important type of remittance. Draft is an instrument
issued by a bank.
Draft is issued by one branch to another branch out of the city. The
difference branches of same bank can issue the bank draft to each other and
NUML Page 24
it is also called the banker cheques i.e. the main branch of ACB in Islamabad
issued the draft to the ACBL Daska.
2.4.6 Letters of Credit
ACBL is committed do offering its business customers the widest range of
options in the area of money transfer. If you are a commercial enterprise
then our letter of Credit service is just what you are looking for. With
competitive rates, security, and ease of transaction, ACBL Letters of Credit
are the best way to do your business transactions.
2.4.7 ATM;
Automated Teller Machine is a hi-teq. Invention in the field of the banking, it
facilitate that a depositor can withdraw money at any time without the need
of banking personnel. We can also deposit money with the help of this
machine. But it is not so much practiced here because of sonic drawbacks.
In these terms and conditions, "Cardholder" means the individual to whom
the ATM Card is issued, "Bank" means Askari Commercial Bank Limited and
"Bank Account" means the account of the Cardholder maintained with the
Bank.
1. The issue of ATM card (ASKCARD) entitles the Cardholder to avail the
facilities
of the Bank's Automated Teller Machines (ATMs) also referred to as
machines.
2. It is a condition of issue and use of the Card that the Cardholder
maintains a Current or PLS-SB Account with the Bank at one of its
branches in Pakistan. In the event of the stopped for any reason,
whatsoever the Card shall immediately be returned to the Bank by the
cardholder and its validity shall cease to have any effect on the date of
such closure of A\C henceforth.
3. The card shall remain the property of the Bank at all times. The bank
may, at its sole discretion and without prior notice, cancel or refuse to
re-issue or renew the card or suspend its use for the time being and
NUML Page 25
call for its return at any time, in which case the Cardholder shall
immediately return the Card to the Bank.
4. The cardholder shall be responsible for the payment of any taxes,
duties, levies, which may be attracted, to payments related to the
issuance and use of the card by the cardholder.
5. The cardholder undertakes not to disclose his/her Personal
Identification Number (PIN) to any other person. In the event of the PIN
becoming known to someone other than the cardholder, that person
may be treated by the Bank as an acting agent of the cardholder. The
Cardholder indemnifies the bank against all losses or damages which
may occur as a result of the PIN becoming known to anyone else from
any source whatsoever.
6. The bank shall not be responsible for any loss or damage arising
directly or indirectly from any malfunction of the Card or ATM or any
technical or non-technical defect or breakdown of the machine and/or
any part thereof or the temporary non-availability of case in such
machines.
7. Except as otherwise prescribed by law, ACBL shall have no
responsibility or liability for any act or omission or inability to perform
any of its obligations hereunder which results from any cause beyond
ACBL's control.
8. The Cardholder agrees to accept that any cash or instrument(s)
delivered through ATM with the use of Card shall be, for the all the
purposes, at the entire risk and sole responsibility of the Cardholder.
The bank would hence be assuming no responsibility whatsoever in
this behalf. The Cardholder understands and accepts that the crediting
of account, as specified on the frontal side of the envelope, designed
for the purpose, will be subject to:
I. In the case of Cash Delivery: Upon physical checking and verification of
the currency note(s) that would be found contained in the envelope,
NUML Page 26
and confirmation of the correctness of the particulars mentioned on

envelope.
II. In the case of Delivering the Instrument(s): Upon checking and
confirmation of the correctness of the particulars of instrument(s) that
would be found contained in the envelope and after its clearance
and/or realization of its proceeds through lodgments in collection as
per procedure.
III. The physical checking and verification of cash so delivered shall be
carried out by the Bank through its two officials, whose count, checking
and findings will be accepted by the Cardholder as correct and final.
The Cardholder also expressly
waives its rights to, in any way, question or challenge the same.
IV. The amount stated on the ATM screen or on the printed transaction
record/slip shall not for any purpose whatsoever be takes as conclusive
of the status of the
Cardholder's account with the bank.
V. The Cardholder further undertakes to accept full responsibility for all
transactions made by the use of the Card whether or not made with
his/her knowledge/authority or consent and he/she shall accept the
Bank's record of transactions as binding for all purposes.
VI. The Cardholder shall take every possible due and proper care to
prevent the Card from being lost, mislaid or stolen and shall not pass
the Card to any other person. He shall notify the Bank immediately if
the Card is lost, mislaid or stolen or if it comes into the hands of a third
party.
NUML Page 27
CHAPTER 3
DEPARTMENTALIZATION
NUML Page 28
The Askari Commercial Bank is having more than thousand branches in the
country. Main branch of Askari Commercial Bank in Daska deals with
following departments.
3.1 Cash Department
3.2 Clearance Department
3.3 Advance Department
3.4 Remittance Department
3.5 Foreign Exchange Department
3.6 Deposit Department
3.1 CASH DEPARTMENT
Cash department performs the following functions
3.1.1 Receipt
The money, which either comes or goes out from the bank, its record should
be kept. Cash department performs this function. The deposits of all
customers of the bank are controlled by means of ledger accounts. Every
customer has its own ledger account and has separate ledger cards.
3.1.2
Payments
It is a banker's primary contract to repay money received for this customer's
account usually by honoring his cheques.
3.1.3 Cheques and their Payment
The Negotiable Instruments Act, 1881
"Cheque is a bill of exchange drawn on a specified banker and not
expressed to be payable otherwise than on demand".
Since a Cheque has been declared to be a bill of exchange, it must have all
its characteristics as mentioned in Section 5 of the Negotiable Instruments
Act, 1881. Therefore, one can say that a Cheque can be defined as an:
NUML Page 29
"An unconditional order in writing drawn on a specified banker, signed by the

drawer,
requiring the banker to pay on demand a sum certain in money to, or to the
order of, a specified person or to the bearer, and which does not order any
act to be done in addition to the payment of money".
3.1.4 The Requisites of Cheque

There is no prescribed form of words or design of a Cheque, but in order to
fulfill the requirements mentioned in Section 6 above the Cheque must have
the following.
a) It should be in writing
b) The unconditional order
c) Drawn on specific banker only
d) Payment on Demand
e) Sum Certain in money
3.1.5 Parties to Cheque
The normal Cheque is one in which there is a drawer, a drawee banker and a
payee, or no payee but bearer,
3.1.6 Types of Cheques
Bankers in Pakistan deal with three types of cheques
a) Bearer Cheques
Bearer cheques are cashable at the counter of the bank. These can also be
collected through clearing.
b) 0rder Cheque
These types of cheques are also cashable on the counter but its holder must
satisfy the banker that he is the proper man to collect the payment of the
cheque and he has to show his identification. It can also be collected through
clearing.
c) Crossed Cheque
These cheques are not payable in cash at the counters of a banker. It can
only be credited to the payee's account. If there are two persons having
NUML Page 30
accounts at the same bank, one of the account holder issues a cross-Cheque
in favour of the other account holder. Then the cheque will be credited to the
account of the person to whom the cheque was issued and debited from the
account of the person who has actually issued the cheque.
3.1.7 Payment of Cheques
It is a banker's primary contract to repay money received for his customer's
account usually by honouring his cheques. Payment of money deposited by
the customer is one of the root functions of banking. The acid test of banking
is the receipt of money etc. from the depositors, and repayment to them.
This paying function is one, which is the distinguishing mark of a banker and
differentiates him from other institutions, which receive money from the
public. However the bankers' legal protection is only when payment is in
'Due Course'. The payment in due course means payment in accordance with
the apparent tenor of the instrument, in good faith and without negligence to
any person in possession thereof under circumstances, which do not afford a
reasonable ground of believing that he is not entitled to receive payment of
the amount therein mentioned. It is a contractual obligation of a banker to
honor his customer's cheques if the following essentials are fulfilled.
3.2 Clearing Department
In clearing department, clearinghouse is a device, which enables banker to
settle check and other instruments, drawn on each other.
Askari Commercial Bank Limited is the member of SBP Clearing House and
receives checks The easy, safe and most efficient way is to offset the
reciprocal claims against the other and receive only the net amount owned
by them. This facility of net inter bank payment is provided by the
clearinghouse. The representatives of the local commercial banks meet at a
fixed time on all the business days of the week. The meeting is held in the
office of the bank that officially performs the duties of clearinghouse. The
representatives of the commercial banks deliver the cheques payable at
other local banks and receive the cheques drawn on their bank. The cheques
are then sorted according to 'he bank on which they are drawn. A summary
NUML Page 31
sheet is prepared which shows the names of the banks, the total number of
cheques delivered and received by them. Totals are also made of all the
cheques presented by or to each bank. The difference between the total
represents the amount to be paid by a particular bank and the amount to be
received by it. Each bank then receives the net amount due to it or pays the
net amount owed by it.
3.2.1 In-Word Clearing Books
The bank uses this book for the purpose of recording all the cheques that are
being received by the bank in the first clearing. All details of the cheques are
recorded in this book.
3.2.2 Out-Word Clearing Books

The bank uses outward clearing register for the purpose of recording all the
details of the cheques that the bank has delivered to other banks.
3.3 Advances Department
The Credit Management Division of Head Office directly controls all the
advances. As we known bank is a profit seeking institution. It attracts surplus
balances from the customers at low rate of interest and makes advances at a
higher rate of interest to the individuals and business firms. Credit
extensions are the most important activity of all financial institutions,
because it is the main source of earning. However, at the same time, it is a
very risky task and the risk cannot be completely eliminated but could be
minimized largely with certain techniques.
3.3.1 Procedure of Advances:
Following are the steps regarding the sanction of advantages:
I. First the application comes in the branch.
II. After filling up the application the signature of the party has to be
confirming from their deposits or accounts they have.
III. After that proposal of advances is consider which includes all
particulars about the party such as their name, business, how much
advance they need? Why? Securities, margin etc.
NUML Page 32
IV. Now this proposal of advance is forward to H.O., which scrutinize

proposal, and if the request is legal then H.O. make it approved for
further processing otherwise cancel the proposal.
V. After the approval the H.O. set some conditions regarding advance.
3.3.2 Credit Worthiness
The following five C's are pillars of credits management for determination of
credit worthiness of a borrower.
3.3.2.1 Character
The expected borrower must be selected as a 'good citizen' in all respects.
Banker's opinion regarding the character may be establishing on the basis of
following source of information:
a) Past credit history showing willingness and ability to pay.
b) Character reference forms other valued customers.
c) Market reputation
3.3.2.2 Capacity
The ascertaining of the capacity of the borrower to repay its obligation
carries a great importance to a banker. Following are three sources of loan
repayments.
3.3.2.3 Capital
What is the volume of the wealth put into business by proprietor or partner
of shareholders in case of limited companies? What is the ability of these
entrepreneurs to meet up emergency losses?
3.3.2.4 Collateral
Securities may be in the name of borrowers or in the name of third parties.
Usually securities against which the finance as allowed are called "Primary"
whether in the name of borrower or third partners that are offered by the
borrower in addition to primary security/securities are called collateral
securities.
3.3.2.5 Conditions
NUML Page 33
Terms and conditions must be properly assessed before allowing any finance
and especially in case where the transactions involve more than one country
like opening of letter of credits or issuance of letter of guarantees.
3.4 Foreign Exchange Department
Askari Commercial Bank is providing services of foreign currencies through
foreign exchange department. Foreign exchange department in all
prominent branches like city branch, Airport branch, Chamber of Commerce
branch and many others branches engaged in foreign exchange demand
draft and other negotiable instruments for the presentation of its payment
and also provides excellent services for clearing checks and other inter bank
obligations between the banks.
In this way different banks get checks drawn by the customers on one
another. So, to off set the inter-bank claims 14 branches of SBP are providing
clearing facility for scheduled of banks whose accounts and services are
maintained with it. It is easier for member banks to adjust their claims
against each other in the books of the state bank. services. Foreign
exchange services includes accepting deposits, issuing foreign currency
travelers cheque, providing imports/exports services, foreign currency
remittance, foreign exchange bearer certificates.
3.4.1 LETTER OF CREDIT

Letter of Credit is very useful instruments in facilitating commercial relations
between businesses at various places in the world. Letter of credit state the
limit of credit and the time during which it id held at the disposal of grantee
but they are neither negotiable nor transferable. Before issuing the letter of
credit the bank demands the following documents:
1. Invoice
2. Purchase Order
3. Import/export license
4. Installation/operating /maintenance manual.
NUML Page 34
5. Insurance
3.4.2 Documentary Letter of Credit
Parties to a letter of credit:
1. Applicant/Importer
2. Issuing Bank
3. Advising Bank
4. Confirming Bank (if any)
3.4.3 Mechanism of Letter of Credit
Importer and Exporter enter into a contract through Performa invoice to
export and import goods from one country to another. They agree to certain
terms to be incorporated in the letter of credit. Importer applies to his band
of opening of LC, and hence after is called opener or applicant.
After going through their internal procedure, importer's bank opens a Letter
of Credit, in favors of the exporter, who shall, hence after be called as
beneficiary. Opening bank sends letter of credit their correspondent bank in
beneficiary's country for advising to beneficiary such bank is called Advising
Bank. Advising bank, after establishing its authenticity, forwards the letter of
credit to beneficiary under their covering letter. On receipt of letter of credit
the beneficiary ships the goods and prepares documents in terms of the LC
for submission to bank nominated in the LC, as negotiating bank. Beneficiary
submits documents for negotiation to negotiating bank.
Negotiating bank after having determined that documents are strictly in
terms of LC negotiates the documents. (Negotiation means giving value of
documents to beneficiary). On negotiation the negotiating bank claims
reimbursement from the bank mentioned in the LC as reimbursing bank and
forwards negotiated documents to opening bank. Opening bank on receipt of
documents, examines the documents to ascertain that these conform to
terms of the LC. If found in order, documents are lodged and presented to
opener for payment Opener makes payment for the documents and gets the
documents from opening bank duly endorsed in his favors, for release of
goods.
NUML Page 35
3,5 DEPOSIT DEPARTMENT

It controls the following activities:
a) A/C opening.
b) Issuance of cheque book.
c) Current a/c
3.5.1 Account opening
The opening of an account is the establishment of banker customer
relationship. Before a banker opens a new account, the banker should
determine the prospective customer's integrity, respectability, occupation
and the nature of business by the introductory references given at the lime
of account opening. Preliminary investigation is necessary because of the
following reasons.
I. Avoiding frauds
II. Safe guard against unintended over draft
III. Negligence
IV. Inquiries about clients.
There are certain formalities, which are to be observed for opening an
account with a bank.
• Formal Application
• Introduction
• Specimen Signature
• Minimum Initial Deposit
• Operating the Account
1. Pay-In-Slip Book
2. Pass Book
3. Issuing Cheque Book
3.5.2 Qualification of Customer
NUML Page 36
The relation of the banker and the customer is purely a contractual one,
however, he must have the following basic qualifications.
Type of Accounts:
 Current Account.
 Saving Account.
 Askari Special Deposit Account.
 Askari Bachat Certificate.
 Notice Deposit.
 Term Deposit.
Current account:
In current account there is no interest on it. It is for only transaction
purposes. They are paid on demand. When a banker accepts a demand
deposit, he incurs the obligation of the paying all cheques drawn against him
to the extent of the balance in the account. As there is no profit paid on this
account it is also called chequing account because cheques can be drawn on
it. Current account is mostly opened for business.
Saving account:
The purpose of this account is to induce the habit of saving individuals in the
neighborhood. The profit is PLS saving and ASDA Accounts in ACBL are
chequing accounts paid on the basis of profit and loss sharing at the rate of
8.5% six monthly. The minimum deposit for opening the account is Rs.100/-
Askari special deposit accountant (ASDA ACCOUNT):
ASDA account is an interest bearing current account interest is paid on it at
the rate of
8.00%. The payment of return is monthly, where as the rate of return with
aspect to the amount of minimum deposit clear from deposit schedules in
annexure. It is also chequing account because cheques can be drawn on it. It
is necessary for this account that the client must maintain a minimum
balance of Rs.0.05 million at the end of the month, no interest is paid. That’s
why it is similar to current account.
NUML Page 37
Asian Bachat Certificate:

ACB's are long term fixed deposit for 3 and 5 years. These are not term
deposits because payment of return is on monthly basis rather than on
maturity of deposits. The minimum balance requirement is Rs.25000/- and
maximum balance requirement is Rs.1.0 million. If ACB is for 3 years, the
rate of return for 3 years is 12%; if ACB is for 5 years the rate of return is
13.00%. Because in such account the balance is kept for either '3' or '5'
years within the bank no cheque is drawn on it. That's why it is not a
chequing account, but only payment of return is made monthly.
Notice deposits:
Notice deposits are kind of fixed deposits. The minimum balance
requirement for opening the account is Rs.5000/- and payment is drawn on
maturity of the specific period. Notice deposit is of the two kinds:
• One for which a prior notice of 30 days and above is required from the
customer before with drawing deposited amount and for which rate of
return is 8%
• Second for whom a prior notice of 30 days and above is required from
the customer before with drawing the deposited amount and for which
rate of return is 10%.
Term deposits:
A term deposit is a deposit that is made for a certain periods of time. At the
end of the specific period, the customer is allowed to with draw the principle
amount.
ACBL term deposits are of types clear in the deposit scheme in the
Annexure. One of them is "Askari" Advantage one month. The rate oftetum
on this account is 12.0% for 4 years. The term deposit account varies from
one month to 5 years, and the minimum balance requirement is Rs.5000/-.
3.5.4 Issuing of Cheque Book:
This department cheque books to account holders. Requirements for
issuing cheque book
a) The account holder must sign the requisition slip
NUML Page 38
b) Entry should be made in the cheque book issuing book

3.5.5 Current account
These are payable to the customer whenever they are demanded. When
a banker accepts demand deposit, he incurs the obligation of paying all
cheques etc. drawn against him to the extent of the balance in the
account. Because of their nature, these deposits are treated as current
liabilities by the banks. Bankers in Pakistan do not allow any profit on
these deposits, and customers are required to maintain a minimum
balance, failing which incidental charges are deducted from such
accounts. This is because the depositors may withdraw Current Account
at any time, and as such the bank is not entirely free to employ such
deposits.
3.5.6 Saving account
Savings Deposits account can be opened with very small amount of
money, and the depositor is issued a cheque book for withdrawals. Profit
is paid at a flexible rate calculated on six-month is under the Interest-Free
Banking System. There is no restriction on the withdrawals from the sit
accounts but the amount of money withdrawn is deleted from the amount
to be taken for calculation of products for assessment of profit to be paid
to the account holder. It discourages necessary withdrawals from the
deposits.
3,5,7 Cheque cancellation:
This department can cancel a cheque on the basis of;
a) Post dated cheque
b) Stale cheque
c) Warn out cheque
d) Wrong sign etc
NUML Page 39
CHAPTER 4
ACBL SWOT ANALYSIS
NUML Page 40
SWOT is an acronym for an organization’s strengths, weaknesses,

opportunities and threats. A SWOT analysis consists of sizing up a firm’s
internal strengths and weaknesses and its external opportunities and threats
in order to get an overview of the organizations strategies and its
environment. The basic purpose of such an analysis is to develop strategies
along with exploiting opportunities and strengths and neutralizing threats
and removing weaknesses.
The SWOT analysis ofACBL as follows:
4.1 STRENGTHS:
4.1.1 E. Banking:
The revolution in the banking in the form of electronic banking
operations have opened avenues of excellent, efficient and quick
services saving the time and costs of the customers |aid fortunately
ACBL is among those few banks who are already reaping the benefits of
electronic transactions.
4.1.2 Askari Atm:
The bank has the largest ATM Network across the country. Customers of
ASKARI BANK. can withdraw and access their accounts at any time
through ATM Sites with one link.
4.1.3 Customer Centered Banking:
The priority banking centres are established in every branch of the bank,
where customers receives highly privileged services in a highly elegant
environment. It gives the chance of experiencing new standards in banking.
Priority Banking offers the very highest levels of penalized banking to match
customer's unique status.
4.1.4 Automatic Operations:
The operations performed by the bank are highly automated that result in
assurance for the customers that their transactions are completed reliably,
efficiently and securely.
NUML Page 41
4.1.5 Tele Phone Banking:

Phone banking service is very attractive for those classes of customers who
don't have time to personally come to the bank i.e. banking on the phone
line thus saving the precious time of the customers.
4.1.6 Eight Hours Banking:

One can avail the benefit of the services provided at the bank till 5:00 P.m.
which is highly useful for those customers who find it difficult to leave their
officers in the morning.
4.2 WEAKNESSES:
In my opinions these, are the points that might be detrimental to the
efficiency and
profitability of the bank.
4,2.1 Manual Banking:
Although the bank has computerized accounting system but, still the bankers
use to make their entries in the accounting register
4.2.2-Generalizaiton:
This famous and useful concept given by Adam Smith in 1776 seems to be
missing in the bank. Employees are constantly rotated from one job to
another job for the sake of having the complete know-how of all the
departments. But I think this is not a very good tactics used by the
management. Otherwise the situation might be like this 'Jack of all an4
master of none.
4.2.3-Centralization:
There is a high degree of centralization in the bank. Almost all the decision-
making is in the hands of the upper management. But centralization is
effective up to a certain level otherwise it becomes inefficient and at times
costly too. I personally observed that delay occurred in the operations of the
employees only due to the fact that they had not got any instructions from
the head office,
NUML Page 42
4.2.4 Less Training Facilities:

Presently there is no specific training given to the newly hired employees.
Only on the [job training is given to the new employee.
4.2.5 Not Highly Automated:
The bank has still some of the traditional ways of operations in this advanced
technological environment.
4.3 OPPORTUNITIES;
Apart from the ones discussed in External Factors Evaluation Matrix, the
bank is facing the following threats and opportunities currently:
These are positive external environmental factors effecting the
organization.
1. 1 Army accounts: Generally army persons prefer Askari bank. ,
2. Two more branches in remote areas: The bank can work for formers
more.
3. Islamic Banking: Bank can work more in Islamic banking b/c peoples
want Islamic
banking.
4. It deals in bulk business: The bank can work for big business men
more.
5. Sharp increase in imports and exports: The banks have to improve its
letter of credit facility.
6. Technology development and innovation.

7. Business and product development.
8. An unfulfilled customer need.
9. Arrival of new technologies.
10. Well established position with a well defined market niche.
4.4 Threats
4.4.1 Reduction in Private Credit Investment
NUML Page 43
The challenges to corporate business in year 2009 were manifold, including

reduction in
private credit investment as a result of slowing down of economy as well as
rising interest rates. The credit investment as a result of slowing down of
economy as well as rising interest rates. The increasing pressure on the
textile industry reduced the lending to this sector. In addition the bank's
corporate loans yields also faced pressure as substitute form of funding
sources are available in the market in form of Islamic financing, mutual
funds, issuance of debt instruments like TFCs and Bonds and the Capital
markets.
4.4.2 Emergence of New Competitors
The bank is facing threats with the emergence of new competitors especially
in terms of foreign banks. These foreign banks are equipped with heavy
financial power with excellent and innovative ways of promoting and
performing their services. The bank has to take initiative in this regard or will
find itself far back in competition.
4,4.3 Political Pressure by ElectedGovernment
The ongoing shift in power in political arena in the country effects the
performance of the (bank has to forward loans to politically powerful persons
which create a sense of insecurity and demoralization in the customer as
well as employees.
4.4.4 Downsizing
The bank is currently acting upon the policy of downsizing which threaten
the environment of the bank Employees feel insecurity in doing their jobs
and work, hence affecting the overall performance of employees negatively.
4.4.5 Customers Complaints
There exists no regular and specific system of the removal of customer
complaints. Now a day a need for total customer satisfaction is emerging and
in their demanding consequences customer's complaints are ignored.
NUML Page 44
CHAPTER 5
ACBL PEST ANALYSIS
NUML Page 45
A broad view of market is important when management is interested in

introducing better services for customers. Rapid technological change, global
competition and the diversity of buyers preferences in many markets require
the constant attention of the market vouchers to identify promises business
opportunities, see the shifting requirements of the buyers, evaluate changes
in competitors positioning and guide the choice of which buyers to target
and classify them according to respective segments. Identification of
external and macro factors that influence buyers and thus change the size
and composition of market overtime involves initially building customer
profiles. These influences include:
1. Political and legal environment
2. Economic trends
3. Socio cultural environment
4. Technological factors
5.1.1-Political and Legal Environment:
Political factors include government regulations and legal issues and define both formal and
informal rules under which the firm must operate. Banks are strongly affected by the
political and legal considerations. Current political situation of Pakistan is not
very encouraging. No one can make plane long term objectives or goals in
Pakistan because of political destabilization in Pakistan. Because of political
destabilization many foreign and local investors are not showing their
interest regarding investment in Pakistan. This environment is composed of
regulatory agencies and government law that influence and limit various
organizations and individuals. Some of main political factors which effects
banking sector in Pakistan.
• Tax policy
• Employment laws
NUML Page 46
• Environmental regulations
• Trade restrictions and tariffs
• Political stability
5.1.2-Business legislation has following main purposes:

• To protect banking companies from unfair competition.
•To protect consumers from unfair business practices adopted by banking
companies
• To protect the interest of the society from unbridled business behavior.
5.2 Economic Trends:
The World Bank considers Pakistan a low-income country. GDP is around $166 billion at the
official exchange rate. The population numbered some 167 million in 2008 with a 1.81% growth
rate. No more than 55.0% of adults are literate, and life expectancy is about 64 years. In FY
2008-2009, the GDP growth rate was 3.7%, and unemployment was estimated at 14%. Year-
over-year consumer price inflation averaged 13.6% in 2009. Main inflation drivers include food
and utility prices, the Pakistani rupee’s depreciation versus the U.S. dollar, and higher
international commodity prices. Low levels of spending in the social services and high
population growth have contributed to persistent poverty and unequal income distribution.
Pakistan's extreme poverty and underdevelopment are key concerns, especially in rural areas.
The country’s economy remains vulnerable to internal and external shocks due to internal
security concerns and the global financial crises. According to banking market it
requires better consumer market in volume along with higher borrowing
power. The available borrowing power depends on
 Consumer income
 Saving rates
 Consumption patrons
 Rates of interest
 Budget deficit
 Exchange rates
 Cost of living
NUML Page 47
 Inflation
5.3 Socio-Cultural Environment:
Social factors include the demographic and cultural aspects of the external macroenvironment.
These factors affect customer needs and the size of potential markets. Trends in social factors
affect the demand for a company's products and how that company operates. For example, an
aging population may imply a smaller and less-willing workforce (thus increasing the cost of
labor). Furthermore, companies may change various management strategies to adapt to these
social trends (such as recruiting older workers). A society is shaped by beliefs, norms and
values. People in a society consciously and unconsciously interact with:
 Themselves
 Others
 Organization
 Society
 Nature
Following are the main factors. Which arise because of change in socio-
cultural environment?
 Consciousness about services
 Concern for environment
 Improved customer relation
 Health consciousness
 Population growth rate
 Age distribution
 Career attitudes
 Emphasis on safety
5.4 Technological Factors:
Forces of technological advancement- have played the most dramatic role in shaping the lives of
people. The rate of change of technology has greatly affected the rate of growth of economy.
New technology is creating deep rooted affects which could be observed in long run. The
NUML Page 48
improvement techniques involved in on line banking. Technological factors can lower barriers to
entry, reduce minimum efficient production levels, and influence outsourcing decisions. Some
technological factors include:
 R&D activity
 Automation
 Technology incentives
 Rate of technological change
In brief PEST analysis affects the overall banking companies and provides us
the information about the external macro condition.
NUML Page 49
CHAPTER 6
HUMAN RESOURCE ANALYSIS OF
ASKARI COMMERCIAL BANK
NUML Page 50
6.1 Human Resource Analysis:
Human resource analysis of ACBL is mainly depends on the following four

categories.
1. Recruitment and Selection
2. Training and Development
3. Performance and Evaluation
4. Compensation
6.1.1 Recruitment and Selection
Recruitment, assessment and selection are the three key steps for hiring employees. Of these, recruitment
and selection are typically the most challenging for employers. The keys to finding the right candidates at
the right time and hiring them are being strategic and thinking about the organization's future.
ACBL follows two methods for recruitment.
6.1.2 External Recruitment

ACBL develop relationships with guidance and career counselors at colleges and universities and
ask for help in recruiting for open positions. Reach out to professional organizations that are in
line with the organization's mission, and ask to them to list open positions in their newsletters
and emails to members. ACBL consider working with a recruitment firm in this method of
recruitment, especially when the position is at a higher level or requires a specific skill or type of
experience.
6.1.3 Internal Recruitment
ACBL also use this type of method of recruitment for hiring potential employees. In this method
ACBL focuses on skills and experience an applicant must possess. Post an open position
internally ACBL assess qualified candidates within the organization. Consider interns,
volunteers, temporary workers or consultants who may have been working in a similar capacity
to the open position.
NUML Page 51
6.1.3 Selection Methods

Once the applicant pool has been narrowed and candidates have been assessed, it's time to make
a selection decision. ACBL think long-term. Is the applicant qualified for the present job as well
as future positions? Look for a candidate with solid experience and new ideas and a fresh
perspective. Weigh his or her willingness to learn. Also, no matter the industry, market
conditions inevitably will change ACBL selects someone who not only can adapt, but also can
flourish under those conditions. ACBL never discount candidates who are making career
changes. For example, someone with five years of corporate-sector experience can bring a
strategic view to a nonprofit organization, while someone from a nonprofit who has made the
most with limited resources can bring a fresh approach to a corporation. ACBL consider other
needs such as diversity, and to follow the guidelines of the Equal Employment Opportunity
Commission.
6.2.1 Training and Development
In general, education is 'mind preparation' and is carried out remote from the actual work area,
training is the systematic development of the attitude, knowledge, skill pattern required by a
person to perform a given task or job adequately and development is 'the growth of the
individual in terms of ability, understanding and awareness.
ACBL fuscous these points regarding Training and Development:
• Develop workers to undertake higher-grade tasks.

• Provide the conventional training of new and young workers.
• Raise efficiency and standards of performance.
• Meet legislative requirements e.g. health and safety.
• Transfer learning from observation of trained workers.
• Receiving coaching from seniors.
• Learning via involvement in research, report writing and visiting other works or
organizations.
• Lectures and talks by senior or specialist managers.
• Discussion group (conference and meeting) activities.
NUML Page 52
• Briefing by senior staffs.

• Role-playing exercises and simulation of actual conditions.
• Video and computer teaching activities.
• Case studies (and discussion) tests, quizzes, panel 'games', group forums, observation
exercises and inspection and reporting techniques.
Evaluation of the effectiveness of training is done to ensure that it is cost effective, to identify
needs to modify or extend what is being provided, to reveal new needs and redefine priorities
and most of all to ensure that the objectives of the training are being met.
The latter may not be easy to ascertain where results cannot be measured mathematically. In the
case of attitude and behavioral changes sought, leadership abilities, drive and ambition fostered,
etc., achievement is a matter of the judgment of senior staffs. Exact validation might be
impossible but unless on the whole the judgments are favorable the cooperation of managers in
identifying needs, releasing personnel and assisting in training ventures will cease.
In making their judgments senior managers will question whether the efforts expended have
produced:
• More effective, efficient, flexible employees.

• Faster results in making newcomers knowledgeable and effective than would follow from
experience.
• More effective or efficient use of machinery, equipment and work procedures.
• Fewer accidents both personal and to property;
• Improvements in the qualifications of staff and their ability to take on tougher roles.
• Better employee loyalty to the organization with more willingness to innovate and accept
change.
6.3.1 Performance Evaluation
In ACBL Performance appraisal defined as a structured formal interaction between a subordinate

and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in
which the work performance of the subordinate is examined and discussed, with a view to
identifying weaknesses and strengths as well as opportunities for improvement and skills
development.
NUML Page 53
In ACBL appraisal results are used, either directly or indirectly, to help determine reward
outcomes. That is, the appraisal results are used to identify the better performing employees who
should get the majority of available merit pay increases, bonuses, and promotions.
By the same token, appraisal results are used to identify the poorer performers who may require
some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay.
(Organizations need to be aware of laws in their country that might restrict their capacity to
dismiss employees or decrease pay.)
Whether this is an appropriate use of performance appraisal - the assignment and justification of
rewards and penalties - is a very uncertain and contentious matter.
6.4.1 Compensation
In ACBL Compensation includes topics in regard to wage and/or salary programs and structures,
for example, salary ranges for job descriptions, merit-based programs, bonus-based programs,
commission-based programs, etc. (Also see the Related Info (including Benefits). Compensation
is payment to an employee in return for their contribution to the ACBL, that is, for doing their
job. ACBL associate compensation/pay ranges with job descriptions in the organization. The
ranges include the minimum and the maximum amount of money that can be earned per year in
that role. Employees have certain monies withheld from their payroll checks, usually including
federal income tax, state income tax, FICA (social security) contributions, and employee
contributions to the costs of certain benefits.
Professional, management and other types of skilled jobs are classified as exempt. Exempt jobs
get a salary, that is, a fixed amount of money , usually a fixed amount per month. It's not
uncommon for exempt positions to receive higher compensation and benefits than non-exempt
jobs, although non-exempt jobs often can make more money than exempt jobs simply by
working more hours. Unskilled or entry-level jobs are usually classified as non-exempt. Non-
exempt jobs usually get a wage. Non-exempt jobs also get paid over-time, that is, extra pay for
hours worked or on certain days of the week or on holidays.
NUML Page 54
CHAPTER 7
INTERNSHIP EXPERIENCE
NUML Page 55
Analysis
It is handling government federal and private operation as well. This bank is
providing many facilities like submission of utility bills, salary accounts,
current accounts, different kind of loan schemes, overdraft facilities and so
on.
Other than these benefits it has some weaknesses as well. This bank is not
customer oriented especially pensioners really suffer during getting pension.
There is no proper guidelines and information for customers. They have to do
wait for a long for completion of their desired work. Work load is too high
whereas staff is very low. ATM facility is not available in this respective
branch. ACBL is suffering from low customer orientation and this is a big
marketing threat for it. In this way this can be loose those customers which
have current accounts. Career opportunities are very low; compensation
plans are not well planned.
Employees want more salary and benefits and they are ready to switch their
jobs this can increase ratio of turnover. Jobs are not granted on the basis of
merit.
Introduction:
During my internship I was involved in the following departments.
1 Costumer Service
2 Agri Finance
3 Account Opening
4 Personal Finance
5 Information Technology
6 Credit Card
7 Remittances
1st Week:
NUML Page 56
In the first week they gave me detail information about whole organization
and respective branch in which I was working. They gave me detail
introduction about working of ACBL.
Scroll sheets: In 1st week I have made scroll sheets of utility bills, traffic
challans.
One copy of scroll sheet is sent to respective organization e.g.; WAPDA,
PTCL and
so on and one copy is kept by bank as a record.
Manual record keeping of new open Accounts: In 1st week I have also
done manual record keeping of new accounts, in which name of customer,
form and account no and date on which account is to be opened is written
off.
2nd Week:
Voucher making: In 2" week I have learnt that how to make vouchers of
scrolls of utility bills and traffic challans as well. Original copy of branch is
sent to respective institute and copy of it is kept by bank.
Issuance of cheque books: In 2" week I also issue cheque books to old
customers and j new as well. I also receive requisition for cheque book from
very new customers.
Entry of pensioners: In 2nd week I learnt how to keep monthly record of
pensioners and how to give monthly, bimonthly, semiannually and yearly
pensions.
3rd week:
Customer dealing: In 3rd week, I have performed as a front desk person. I
have learnt that how to deal different kind of customer and how to fulfill their
requirements and how to give their desired and relevant information. This
practice increases my patience and high level of control on my emotions; it
enhances my communication skills as well.
Account Opening: In 31 week I came to know about that how a person will
be able to
NUML Page 57
open an account. I issues 70 account opening form in a day and guide all
customer one by one and tell them requirements to fill and submit a form.
Within week I receive back these forms and after making necessary
requirements I finalize these forms.
Computerized record keeping: In ^ week, I have also done computerized
record keeping of new opening accounts. I also learnt that how to check the
balance of old and new accounts as well.
4TllWeek:
Token Issue: In the start of 4th week I have worked in cash department and
leamt to issue token to the customers who want to withdraw cash. I also
cash their cheques and give them their desired amount.
5th Week:
Vouchers of un-issued cheques: When cheques are rejected due to certain
reasons these cheques are returned back to their respective departments.
One voucher is made for this purpose on which name of cheque holder and
account no and amount which is to be drawn is written on the back side of
voucher is prepared and sent.
In the last of 5th week I issue forms of different services which are offered by
Askari Bank. I provide all information regarding specific service to customers.
These services include:
1 ACBL rozgar scheme
2 ACBL advance salary scheme
3 ACBL gold scheme
6th Week:
Review of Marketing Practices: In last week I review Marketing practices
of ACBL. That on which basis Marketing is hired and compensated.
Prepare medical forms for each employee: In last week I prepare
medical form of each employee and its family member. I make report of their
last month's visit to doctor and sent it into head office.
NUML Page 58
Procedure of Transfer: I have also learnt that how employees are transferred
from one branch to another. I review and finalize their papers of transfer.
Every employee is transferred right after 3 years.
EXPERIENCE AND LEARNINGS
The six weeks long internship at Askari Bank of Pakistan Main Branch Daska
has been a sufficient duration to personally observe and experience the
working and analyze certain factors related to the environment of all the
Departments in the Branch.
7.1 Worked In Different Department:
Dynamic and Advanced Approach
The Bank employed skilled and professional approach to management, which
took a series of successive measures to make the people of Pakistan
banking, and saving-minded. The dynamic approach and personalized
service met the expectations of the customers.
Customer Orientations and Personalized Service
The banker customer relationship attained a new dimension courtesy the
politeness and efficiency of professionally trained staff and fair induction
policies of its Human Resource Department.Convenience of the customers
has been the sole criterion of this relationship. The introduction of different
schemes, good atmosphere, proper guidance and team effort have proven to
be the catalyst in not only improving the financial standing of the bank but
has also been the source of the prestige it holds today.
Professional Style of Management
Although the concept of professional management is still in its transition
stage in Pakistan Askari Bank from the very first day employed skilled and
professional management, which had the capacity to take quick, decisions,
and respond to the changing business conditions.
Healthy, Competitive Working Environment
The obligation to give all its employees an equal chance to succeed has been
one of the most fundamental and challenging responsibilities of the bank. It
has always provided its employees the scope within which to make the most
NUML Page 59
of their abilities. In Askari Bank survival, growth and expansion demand

full use of one's own talent and ability. Such a competitive environment was
instrumental in introducing professionalism, which in the ultimate analysis
transformed the entire outlook of the industry.
Modern Banking Policies
With the entry of Askari Bank and a new era, banking underwent a complete
metamorphosis. When Askari Bank challenged the major banks of the time
due to quality services they began to evaluate their policies and were
surprised to find that they had a lot to change. Before long, they began to
change and adopt a more modem and relevant strategy.
7.2 Negative Dimensions of Experience and Learning
• Departmental Problems at the Branch

The following are some of the problems and shortcomings that were
inevitably prominent.
• Deposits Department
In order to save time the addresses filled in the required section of the
account opening forms are filled without confirming that they are
appropriate for using for correspondence purposes in case of any
notifications to be sent to the customers. The present format of the
account opening forms seems more complicated to the lesser-educated
customer and hence he takes it away to be filled with somebody's help,
but unfortunately, rarely comes back.
• Bills and Clearing Departments
The carelessness of the officers at times result in delay of collection, as
the original advice is lost in post and proper filing of the copy is not
done. The same officer of the branch does the posting of the bills and
cheques, clearing and collection that result in unnecessary delay. The
procedure of applying tests is not know to all the officers as it is
practiced by only one of them and hence it causes delay when it is
applied by the others in case the said officer is absent. The test
NUML Page 60
application officer works manually and there is no other person to assist

him that results in spending most of the time in applying these.
• Cash Department
Rare instances of fake currency notes result in loss to the branch and the
cashier who accepted them, that affects their work negatively. Manual
counting system by the cashiers is a very time consuming exercise,
especially if there is a rush of customers.
• Advances Department
The filing and record maintenance of the credit related documents is
not done‘‘Efficiently due to lack of computer skills of the related
officers. Lack of infrastructure for carrying out computerized/ automatic
financial analysis of the borrowers' businesses is another shortfall of
this Department.
NUML Page 61
CHAPTER 8
CONCLUSION AND
RECOMMENDATION
NUML Page 62
8.1 Recommendations
These are some recommendations & suggestions, which I think will be
helpful in enhancing the image and performance of ACBL.
• People working in the planning department, should not only be
qualified but also experienced and familiar with the working of the
bank.
• Scheme should be launching only on the basis of the research work
and should be discussed before they are made available to the
customer.
• The entire economics scenario should be taken into consideration. The
minimum amount of deposit should be increased, in this way ACB will
have safer depositors, who will deposit large amount with the bank and
will also reduce the number of depositors so that bank can provide
better services to its existing clients.
• Both corporate banking and retail banking should be combined to
reduce costs. There should be combination between FORIX and retail
banking so that those customers, who have defaulted once, are not
allowed loan from the bank again.
• Every branch should be made into separate unit and should be
evaluated individually, this way ACB would know in which areas,
localities, function it is not working up to the standard and give the
management a chance to investigate and improve the functions the
function for the particular branch.
• There is and immediate need to make a new recruitment policy so that
the bank can get properly trained employees who are suited for the
vacant positions. Political interface especially in recruiting should be
tolerated. Because under the present circumstances of the bank,
educated and skilled people are just what the doctor ordered to
NUML Page 63
improve the performance of the bank. After all it is the employees who
make or break an organization.
• Performance appraisal should be done on a semi-annual basis rather
than an annual basis.
• In this way the employees will be realize his or her short coming and
put in more effort.
• Promotions should not only done the basis of seniority but rather
performance and the time period spent in a certain position should
also be considered furthermore, position blockage should be
eradicated.
• It is recommended that ACB should train its first line and middle line
managers so that they are able to build good relations with
customers.
• When I examined the annual report of ACB, their fixed assets were
very small in number most of their offices in different cities are on rent.
So they have to pay heavy rent, which decreases their profit. ACB
should try to buy their own buildings or even it can give it to rent to
other companies like "State Life" Head Office of ACB is also in State
Life Building.
• There is no marketing department is should be created in order to cope with future.
• In ancient days the security of money and money management requirements emerge, the
situation for the bank to be established for offering banking function to public and
especially to business person. 17th and 18th centuries are witnessed centuries during
which banks than were privately owned and were involved in financing activities for
merchants, bills collection on behalf of clients.
• Feeling the importance of banks in economy of the nation most state government started
to govern banking and started their interface in this sector so that all financial activities
may be monitored. There are various types of banks as per their specialized field of
operation.
NUML Page 64
8.2 Conclusion:
Askari bank limited was established as a semi public commercial bank on

November 8, 1949. The primary objective of the setting of the bank was
to purchase jute form the growers in the former East Pakistan in the
country. The bank provides all types of banking services to the
government and private sectors. The overseas branches under a trust
deed the bank also provides services as trustee to national investment
trust including sage custody of securities on behalf of nit in consideration
for annual service charge and commission.
Askari bank limited is placing high priority on automation and it
development. The bank is shifting its focus from routine personnel
administration to human resources development, with due emphasis
being placed on the optional utilization of existing human resources.
Motivating pay structures and performance based on incentives were also
introduced enhance the productivity of employees. Additionally, objective
appraisal system is being instituted to facilities transparent ratings /
promotion. Askari bank limited is working on the restructuring program to
make the bank more attractive with the eventual aim of privatization as
the largest bank in the country with a customer base of 8.5 million. The
key components of the restructuring programmers are reduction-
operating cost; increased in earnings decrease in non-performing loans,
and effective use of information technology.
Askari bank limited brought a great revolution on our banking system by
introducing new products, adopting all the new methods and technologies
requited for an international bank. Askari bank limited is desired to play a
vital role in the development of Pakistan in the 21st century. Its
management and workers must accept the competition and challenge of
the new millennium through innovative policies products and untiring
application.
NUML Page 65
8.3 REFERENCES
URL:http://www.angelfire.com/ia/yasir710/history/history.html/onli
ne
URL:
http://www.pakistaneconomist.com/issuel999/issue49/f&m.htm/onl
ine
URL: http://en.wikipedia.org/wiki/State_Bank_of_Pakistan/online
URL:
http://en.wikipedia.org/wiki/IndustrialJDevelopmentJBank/online
URL: http://en.wikipedia.org/wiki/AskariJBank/online
URL: http://en.wikipedia.org/wiki/MCB_Bank_Liniited/online
URL:http://en.wikipedia.org/wiki/Bank_Of_Punjab/online
URL: http://www.highbeam.com/doc/lGl-9265528.html/online
URL:
http://en.wikipedia.org/wiki/Govemor_of_State_Bank_of_Pakistan/o
nline
Askari Commercial Bank, Annual report 2008/online
http://askaribank.com. pk/index.php?id=156/online
Askari Commercial Bank Limited, organgram, departments,
website/online
www.askaribank.com.pk/online
NUML Page 66

Askari Bank Report Original

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Askari Bank Report Original

Uploaded by

Copyright:

Available Formats

Internship Report of Askari Bank Ltd.

Syeda Mariam Nida

Submitted in partial fulfillment of the requirements

National University of Modern Languages

© Copyright by Syeda Mariam Nida, 2010

The banking structure in Pakistan comprises of the following types. State

2.3.2 Ask power

5.3 Socio Cultural Environment 41

6.2 Training and Development 46

6.3 Performance and Evaluation 47

Chapter – 7 Internship Experience

Introduction of Askari Commercial Bank Limited- ACBL

 The office of army welfare trust is situated at AWT PLAZA

1.8 Level of Customer Service, Rating & Achievements

Their products are as diverse as their market segments. They have

 First Pakistani Bank to offer on-line real time banking on a

Products and Services:

• Askari Special Deposit Account

• The markup is lower than a credit card.

• Easily refundable in case of loss and theft

2.4.1 Foreign Remittances:

The purchaser fills an application form in which he mentioned the sum of

and confirmation of the correctness of the particulars mentioned on

"An unconditional order in writing drawn on a specified banker, signed by the

3.1.4 The Requisites of Cheque

3.2.2 Out-Word Clearing Books

IV. Now this proposal of advance is forward to H.O., which scrutinize

3.4.1 LETTER OF CREDIT

3,5 DEPOSIT DEPARTMENT

3.5.2 Qualification of Customer

Asian Bachat Certificate:

b) Entry should be made in the cheque book issuing book

SWOT is an acronym for an organization’s strengths, weaknesses,

4.1.5 Tele Phone Banking:

4.1.6 Eight Hours Banking:

4.2.4 Less Training Facilities:

6. Technology development and innovation.

The challenges to corporate business in year 2009 were manifold, including

A broad view of market is important when management is interested in

5.1.2-Business legislation has following main purposes:

5.4 Technological Factors:

6.1 Human Resource Analysis:

Human resource analysis of ACBL is mainly depends on the following four

1. Recruitment and Selection

2. Training and Development

3. Performance and Evaluation

6.1.1 Recruitment and Selection

ACBL follows two methods for recruitment.

6.1.2 External Recruitment

6.1.3 Selection Methods

ACBL fuscous these points regarding Training and Development:

• Develop workers to undertake higher-grade tasks.

• Briefing by senior staffs.

• More effective, efficient, flexible employees.

In ACBL Performance appraisal defined as a structured formal interaction between a subordinate

of their abilities. In Askari Bank survival, growth and expansion demand

• Departmental Problems at the Branch

application officer works manually and there is no other person to assist

Askari bank limited was established as a semi public commercial bank on

You might also like