Acknowledgment

To Him belongs the dimension of the Heavens and the Earth, it is He who Gives life and death and He have power over all things.
(Al-Quran)

All acclamations are to Allah, the most Merciful and Compassionate, who has Empowered and enabled me to accomplish this task successfully. After that I submit my earnest thank to my affectionate parents, who pray for My success and always been a source of encouragement for me. Secondly, I am Grateful to my prestigious institute that made this learning opportunity a part Of my education, especially I would like to thank my Professors as the Knowledge imparted by them enables me to gain knowledge and learning Exposure of the organization in best way. I would like to thanks for the staff members of Askari Bank Limited Allama Iqbal Town Branch Lahore, who were cooperative to me in the completion of this report and provide me their complete guidance.

DEDICATION

I would like to dedicate this Accomplishment To my beloved and caring parents, And to my teachers with The support of whom I Am standing at this step of My life stairs.

Executive Summary
The banking sector 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 S.B.P. is the Central Bank if the country and was established on 1st July, 1948. On October 9,1991 Askari bank appeared on the banking horizon in Pakistan and started operations with its first branch in Karachi. Today ASKARI BANK To open an account the customer has to meet the manager with an introducer. Individual, Joint, Partnership, Private Limited, ASKARI BANK Sole proprietorship and Minor accounts are the types of accounts. Different documentation is required for each type of account but the application form is same for all types of accounts. In Deposits department actual relationship is started with the bank that relationship is in the form of deposits or the accounts that are opened in the bank. At ASKARI BANK, customers can deposit in the form of current, saving, call, term and fixed deposits. Main difference between current and saving is of the profit that is provided only on saving account to the customer. In Cash department the main activity is of payment and receipt of cash and facility of utility bills collection is also performed at the counter of cash department. A cash book balance is maintained at the end of the day that is been provided in the form of statements that can be got from the computer. Accounts department is responsible for all the activities happening inside the branch in the form of any transaction whether it is for the customer or for the employees to provide them with utility services.

In Remittance Department like any other bank ASKARI BANK also have instruments for transferring of money like Pay Order, Demand Draft, Mail Transfer, Telegraphic Transfer. For remittances ASKARI BANK provided many services. . As for as there Foreign Exchange Deportment is concerned its activity is handled at the central branch as they have a department their and they provided the many services to the importers and the exporters in the trading of products. Preparation of LC on behalf of importer for the exporters and its bank is the main activity that is performs in the department. The main activity of the Central Branch, is to Advance the money that was collected in the form of deposits. They deposit money at low rate and advance it at high rate to earn the margin of
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profit. Financing can be made in the form of cash finance, demand finance, bridge finance, consortium finance, agriculture finance etc. Security is of utmost importance in this area and security can be like mortgage, pledge, hypothecation of stock, raw material or the guaranties and bankers lien. With their step in the field of customer financing like house and car financing and their services of Hamrah Rupee Traveler check, ASKARI BANK (ATM card) and their online system of ASKARI BANK-ONLINE it has been viewed that they will make tremendous achievement in the days to come. In my view ASKARI BANK has faced some hard time but after its privatization and its response to the changes in sector they will achieve what their ultimate goal is.

Contents

PART - I
HISTORY OF BANKING ................................................................................................................................... 8 INTRODUCTION ............................................................................................................................................. 8 COMMERCIAL BANK...................................................................................................................................... 8 HISTORY OF ASKARI COMMERCIAL BANK..................................................................................................... 9 MISSION ...................................................................................................................................................... 10 VISION ......................................................................................................................................................... 10 CORE VALUES .............................................................................................................................................. 11 SERVICES PROVIDED BY ASKARI BANK: ....................................................................................................... 12 PRODUCTS OF ASKARI BANK:...................................................................................................................... 12 DIFFERENT TYPES OF BANKING AT ASKARI BANK ....................................................................................... 13 Askari Islamic Deposit Products: ................................................................................................................. 14 PRODUCTS OF AGRICULTURE BANKING: .................................................................................................... 15 GOALS AND OBJECTIVES ............................................................................................................................. 15 CUSTOMER RELATIONSHIPS ....................................................................................................................... 16 EMPLOYEE RELATIONSHIPS ........................................................................................................................ 17 GROWTH ..................................................................................................................................................... 17 ASKARI AT PRESENT .................................................................................................................................... 18 AWARDS AND ACHIEVEMENTS ................................................................................................................... 19 BUSINESS ETHICS & CONDUCT ................................................................................................................... 20 CORPORATE INFORMATION ....................................................................................................................... 21 Board of Directors....................................................................................................................................... 21 Audit Committee......................................................................................................................................... 21 Management System: ................................................................................................................................. 27 POLICY FORMULATION PROCESS ................................................................................................................ 29 JOB ASSESSMENT METHODS ...................................................................................................................... 32 DEPARTMENTS ............................................................................................................................................ 33 GENERAL BANKING DEPARTMENT ............................................................................................................. 33 5

PRIVILEGE BANKING DEPARTMENT ............................................................................................................ 34 CREDIT DEPARTMENT ................................................................................................................................. 34 FOREX DEPARTMENT .................................................................................................................................. 34 ACCOUNTS DEPARTMENT........................................................................................................................... 34 TYPES OF ACCOUNTS .................................................................................................................................. 35 CLEARING DEPARTMENT ............................................................................................................................ 37 RULES AND REGULATIONS HAVE CLEARING HOUSE: ................................................................................. 38 CREDIT DEPARTMENT ................................................................................................................................. 40 SWOT ANALYSIS .......................................................................................................................................... 43

PART II
Activities During Internship Period ............................................................................................................. 47 FIRST WEEK ................................................................................................................................................. 47 SECOND & THIRD WEEK .............................................................................................................................. 49 FOURTH WEEK: ........................................................................................................................................... 50 FIFTH WEEK ................................................................................................................................................. 52 SIXTH WEEK................................................................................................................................................. 53

PART - III
OVERALL SUMMARY ................................................................................................................................... 55 Problem during Job: .................................................................................................................................... 56 RECOMMENDATIONS TO ASKARI BANK ..................................................................................................... 56 RECOMMENDATIONS TO INSTITUTE OF BUSINESS AND INFORMATION TECHNOLOGY (IBIT) .................. 56 CONCLUSION............................................................................................................................................... 58 BIBLIOGRAPHY ............................................................................................................................................ 59

PART I

HISTORY OF BANKING
The word bank is said to have been derived from the words Banc us or Banque. This history of banking is traced to as early as 2000 B.C. These priests thus acted as agents. Commercial banking began in England with goldsmiths.

INTRODUCTION
ACCORDING TO BANKING COMPANIES ORDINANCE 1962 Banking means the accepting, for the purpose of lending, or investment, of deposits of money from the public, repayable on demand or otherwise, and withdraw able by cheque, draft, order or otherwise. Banking companies mean companies which transact the business of banking in Pakistan.

COMMERCIAL BANK
We can take bank just like a heart in the economic structure and capital provided by it is like blood in it. Banks play very important role in the economic life of a nation. The growth of the economy is dependent upon the soundness of its banking system. Although banks do not create new wealth but borrow, exchange and consume. These make generation of wealth. In this way they become most effective partners in the development of that country. To encourage the habit of saving and to mobilize these savings is its basic purpose. Banks deposit surplus from the public and then advances these surpluses in the form of loans to the industrialists, agriculturists, businessmen and unemployed people under different schemes so that they set up their own business. Thus banks help in capital formation.

HISTORY OF ASKARI COMMERCIAL BANK

The banking sector has witnessed a dramatic change during the last ten years with the development of Askari Bank, which is not only redefining priorities and focus of the banks, but also threatening the domination of traditional players. 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 oversubscribed 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 nationwide presence of 83 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, the Bank had equity of Rs. 6.016 billion and total assets of Rs. 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 RawalpindiIslamabad, which have relatively limited opportunities as 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.

MISSION STATEMENT:

To be the leading private sector Bank in Pakistan with an international presence, delivering quality services through innovative technology and effective human source management, in a modern and progressive organizational culture of meritocracy, maintaining high ethical and professional standards, while providing enhance value to all our stakeholders and contributing to society.

VISION:
To be the bank of first choice in the region

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CORE VALUES
The intrinsic values, which are corner stones of Askari corporate behavior, are:

Commitment Passionate about our customers success and delighting them with quality of our service Integrity A distinctive investment, delivering outstanding performance, return and value Fairness Exemplary compliance, governess and business ethics Teamwork Caring for our people and helping them to grow Service Dedication towards social development and improvement in quality of life

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SERVICES PROVIDED BY ASKARI BANK:

Askari mortgage finance Askari Business Finance Askari Personal Finance Askari travelers cheques Askari Master card Askari Banks cash Management service Askari Car leasing

PRODUCTS OF ASKARI BANK:

Value plus Current Deposit Account: Askari bank has introduced Value Plus deposit account, which assurance of large autonomy and protection. It opened with the minimum deposit of Rs .25, 000. It has all other features of current account. Bank will not pay insurance premium in this account if minimum average balance is not maintained

Askari Special Deposit Account (ASDA): ASDA is a special product of Askari Bank in which customers are provided the profit every month

RoshanMustaqbil Deposit: Up to 5years customers have to pay but not less than 5,000 and not greater than 50,000and after 5 years bank will pay the profit

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DIFFERENT TYPES OF BANKING AT ASKARI BANK

Consumer Banking: Consumer Banking Services Divisions products and services mainly comprises of auto finance, personal finance, mortgage finance, smart cash, Askari Credit Cards (Master Card), Corporate Credit Cards, Zarai Credit Cards and I-Net Banking (Internet Banking Service). Our consumer finance is focused 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 to earn sustainable returns, with greater emphasis on secured form of consumer lending and an aim to increase product offerings while improving and maintaining a quality of its risk asset portfolio. In view of the recent phenomena of inflation and changes in interest rates, our Consumer Banking has adopted a selective approach for fresh lending and is focused on containing the growth of problem loans and improving recovery efforts and internal controls. Islamic Banking: The Bank has expanded its Islamic Banking network to 29 branches and 02 sub-branches in the major cities of Pakistan, covering the Capital and the four provinces. Further expansion is planned with improved capabilities for offering products conforming to Shariah principles. The products of Islamic banking provided by Askari Commercial Bank Limited are Ijarah Bi Sayyarah, Home Musharakah, Deposit Schemes, and Declared Weight Ages All Islamic Banking Products are approved by the Shariah Advisor of the Bank. As per Shariah requirements, funds and products of Islamic Banking are managed separately from the Conventional banking side. All funds obtained, invested and shared in Halal Modes & Investments, under the supervision of Shariah Advisor. Shariah Advisor An eminent scholar and recipient of the Presidents Medal for Pride of performance, Prof. Dr. Mohammad Tahir Mansoori, has been appointed as the Shariah Advisor of the Bank. Dr. Mansoori holds Moulvi Alim and Moulvi Fazil degree from Dar ul-uloom Mansoorah, and PhD in Islamic Studies from International Islamic University, Islamabad. He is the author of numerous publications which include Madkhal-al-Masrafi an introduction on Islamic Banking in Arabic, and Islamic Law of Contracts and Business Transactions, is published in English.

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Askari Islamic Deposit Products:

Askari Islamic Banking constantly and consistently strives to develop new Islamic Banking Deposit Products to cater to ever growing needs of its customers. Our Deposit Products menu card includes the following: AHSAN: Askari Halal saving and Notice Account, monthly profit payment. AHSAN Munafa: Monthly profit payment on daily product basis AHIA: Askari Halal Investment Accounts- certificates of investment with monthly, quarterly, six monthly and at maturity profit payment options. Customers may opt to invest funds in AKIDA, AITQAD and AHCAMM. Askari Islamic Consumer Products:
Askari Ijarah Bis Sayarah for new / used car financing & Askari Home Musharakah to buy, build and renovate home.

Islamic Corporate & Structured Finance:

Askari Bank is also offering tailor made Islamic Corporate & Structured Finance solutions to our corporate clients to meet their financial needs. Our products are very competitive, professionally serviced and in accordance with principles of Shariah.

Agriculture Banking: Askari Banks Agriculture and Rural Business Division (ARBD) has gained further strength with improved and efficient delivery and control mechanism for meeting increased demand for credit by the farmers in easy, accessible and affordable manner. With an innovative product range, being best rated in the market, the Bank continues to surpass its allocated targets for agriculture financing. While focusing on business development, this unit also achieved further refinement in back office processing including credit initiation, operations, risk management, in line with the business dynamics and regulatory framework. ARBD has extended to 89 branches across the country and remains proactively engaged with its stakeholders for aggregation of services and improving life standard of farmers through its distribution network.

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PRODUCTS OF AGRICULTURE BANKING:

Kissan Evergreen finance Kissan Tractor Finance Kissan Livestock Development Finance Kissan Farm Mechanization Finance Kissan Aab pashi Finance

GOALS AND OBJECTIVES

As Askari Bank looks ahead to the future by moving through the decade of the1990's its efforts are guided by a broad framework of corporate objectives, which are as follows. To achieve sustained growth and profitability in all areas of business. To build and sustained a highly performance culture, with a continuous improvement 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 potential. To effectively manage and mitigate all kind 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 banks portfolio of business to achieve strong and sustainable Shareholder returns and to continuously build shareholder value. To deliver timely solutions those best meet the customers financial needs. To explore new avenues for growth and profitability

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CUSTOMER RELATIONSHIPS
"Before we discover, we must explore" Knowing Askari customers and their needs is the key to Askari business success. Askari products and services are structured to touch and improve the quality of lives of all segments of society. Service quality standards are designed and monitored to ensure a consistent and convenient customer experience. Askari client relationship managers are well equipped and well trained to provide most efficient and personalized service to each and every customer. Askari products and services are as diverse as Askari market segments. Askari have structured and syndicated financing arrangements, working capital finance, Balancing-Modernization Replacement (BMR) facilities, financing of international trade, consumer credit, small business loans, credit cards and unparalleled investment products for the individual saver. Askari Bank is
16

proud of the pioneering role in providing the most modern technological services to its customer base, which today exceeds 150,000 relationships.

EMPLOYEE RELATIONSHIPS
"Unusual effort on part of the employees who are apparently ordinary workers is one of the key indications of a superior enterprise" Askari staff is Askari most valuable asset. The human resource philosophy at Askari Bank focuses on multi-talent hiring, professional grooming, requisite training and meritocracy based reward system. Askari lays great emphasis on the development and nurturing of "Askari Culture", a cohesive teamwork, where each relies on the strength of the other and together they achieve common objectives. Staff welfare has always been a priority. New initiatives like hospitalization plan, car buyback facility and home loan insurance have added new dimensions to the staff-care policy and motivated them to out-perform Askari competitors. Employee productivity enhancement is organized through extensive in-house and external training programs. Askari continue to offer opportunities for people to develop their knowledge, skills and personalities, thus ensuring greater self-fulfillment and progression in the organization.

GROWTH
"There is no sin punished more implacably by nature than the sin of resistance to change" Askari live in a moment of history where everything is changing so fast that Askari begin to see the present only when it is already disappearing. Askari customer needs are changing and their expectations are growing. Technology is fast proliferating the distribution channels and now banking services can be accessed from multiple contact points. Askari believe that balanced growth is the key to survival in today's global banking environment. From a humble beginning with just 7 branches in 1992, today Askari enjoy a network of 73 outlets in Pakistan, spread across the country. A network of self-service ATMs supports these outlets.

17

Askari total assets now exceed Rs.50.9 billion and Askari have over 17 products and services to match Askari customers' individual needs. Bank's equity base stands at Rs. 2.58 billion with 20% growth over the last 5 years. The human resource capital of the bank today exceeds 1,200 employees. As part of Askari growth strategy Askari is now extending Askari banking services to the remote and rural areas.

ASKARI AT PRESENT
The banking sector has witnessed a dramatic change during the last ten years with the development of Askari Bank, which is not only redefining priorities and focus of the banks, but also threatening the domination of traditional players. The external factors contributing to this performance include a growing economy, overall positive market sentiment and political stability, while the internal factors continue to be efficient management of assets and liabilities, effective control over operating expenses, introduction of market oriented products, and customization of existing products and strategic expansion of branch network. During 2005, Askari Bank continued with its growth momentum and posted substantial profits in an environment of good economic growth but highly competitive business conditions. The economic growth was propelled by the above-target contributions from the three major sectors, i.e., large scale manufacturing, agriculture and services. The low interest rates, particularly during the first half of fiscal 2005, growing demand for consumer credit, increased credit access, revitalization of the construction industry and growth in large scale manufacturing, were the main factors behind the phenomenal expansion in net private sector credit, which increased by Rs. 429 billion during fiscal 2005, against the estimates of Rs.350 billion. The increase in consumer credit also had an expansionary effect on corporate finance, as the demand for automobiles and consumer durables, particularly electronic items, pushed up production in these sectors. In a highly competitive environment, Askari Bank continually reviewed its policy pertaining to the sectoral exposures to derive optimum competitive advantage, maintain the risk profile and achieve greater customer satisfaction. Accordingly, Askari Banks corporate / commercial business accounted for 59% of the total credit disbursed during the year, followed by SME at 25%, Retail and Agriculture credit at 10%, and commodity financing at 6%.

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AWARDS AND ACHIEVEMENTS

Over the years, we have received several awards for the quality of our banking service to individuals and corporate. These include: Commercial Bank of the Year awards for 1994 & 1996 from the Asia money magazine Best Domestic Bank of Pakistan award for 1995 from the Euro money magazine The Best Bank in Pakistan awards for 2001 & 2002 from the Global Finance magazine Best Consumer Internet Bank in Pakistan awards for 2002 to 2004 from the Global Finance magazine Best Corporate / Institutional Internet Bank in Pakistan award for 2004 from the Global Finance magazine Best Retail Bank in Pakistan awards for 2003 & 2004 from the Asian Banker, Singapore Corporate Excellence awards for 2002 to 2004 from the Management Association of Pakistan (MAP) Bank of First Choice award for 2004 from the Consumer Association of Pakistan Best Corporate Report, for the Financial Sector 1st prizes for 2000 to 2004 from the Institute of Chartered Accountants of Pakistan (ICAP) and the Institute of Cost & Management of Accountants of Pakistan (ICMAP) Best Presented Accounts Ranking prizes (2nd or 3rd) for 1997 to 2002 & 2004 from the South Asian Federation of Accountants (SAFA), for the whole South Asian Region Askari Bank has also proved its strength as a leading banking sector entity, by achieving the following 'firsts' in Pakistani banking: i) First Bank to offer on-line real-time banking on a country-wide basis ii) First Bank with a nation-wide ATM network iii) First Bank to offer internet banking services

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BUSINESS ETHICS & CONDUCT

Askari Bank seeks to maintain high standards of service and ethics enabling it to be perceived as impartial, ethical and independent. In addition to the general guidelines, the following are the salient features of the Banks code of ethics and conduct. Presence of a corporate culture that seeks to create an environment where all persons are treated equitably and with respect. Employees must carry out their responsibilities in a professional manner at all times. They must act in a prudent manner and must avoid situations that could reflect unfavorably on themselves, the Bank or its customers. Employees must commit to the continued development of the service culture in which the Bank consistently seeks to exceed customers expectations. Fairness, Truthfulness and Transparency govern our customer relationships in determining the transactional terms, conditions, rights and obligations. Employees must safeguard confidential information which may come to their possession during the discharge of their responsibilities. Respect for customers' confidential matters, merits the same care as does the protection of the Bank's own affairs or other interests. Employees must ensure that know your customer principals are adhered by obtaining sufficient information about the customers to reasonably satisfy ourselves as to their reputation, standing and the nature of their business activities. Employees must avoid circumstances in which their personal interest conflicts, or may appear to conflict, with the interest of the Bank or its customers. Employees must never use their position in the Bank to obtain an advantage or gain. Employees must not enter into an agreement, understanding or arrangement with any competitor with respect to pricing of services, profit rates and / or marketing policies, which may adversely affect the Bank's business. Employees must not accept gifts, business entertainment or other benefits from a customer or a supplier / vendor, which appear or may appear to compromise commercial or business relationship. Employees must remain alert and vigilant with respect to frauds, thefts or illegal activities committed within the Bank premis.

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CORPORATE INFORMATION
Board of Directors
Lt. Gen. Waseem Ahmed Ashraf
Lt. Gen. (R) Masood Perwaiz Mr. Kalim-ur-Rehman Brig (R) Mohammad Shiraz Baig Brig (R) Muhammad Bashir Baz Brig (R) Asmat Ullah Khan Niazi Brig (R) Mohammad Safdar Ali Mr. Javed Ahmad Noel Mr. Zafar Alam Khan Sumbal Mr. Shahid Hafeez Azmi Mr. Mohammad Afzal Munif, FCA Mr. Tariq Iqbal Khan, FCA Chairman Chairman Executive committee President & Chief Executive Director Director Director Director Director Director/Secretary Director Director Director (NIT Nominee)

Audit Committee
Mr. Muhammad Afzal Munif, FCA Brig (R) Muhammad Shiraz Baig
Brig (R) Asmat Ullah Khan Niazi Mr. Zafar Alam Khan Sumbal Chairman Member Member Secretary

Auditors
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A.F.Ferguson & Co Chartered Accountants

Legal Advisors
Rizvi,Isa, Afridi & Angell

Registrar & Share Transfer Office

M/s THK Associates (Private) Limited Ground Floor, Modern Motors House, Beau mount Road, Karachi, 75530 Tel : (021) 5689021, 5686658, 5685681 Fax: (021) 5655595

E-Mail: Askari@isb.compol.com
Registered Office /Head Office
AWT Plaza, The Mall, P.O.Box 1084, Rawalpindi. Tel: (051) 9063000 Fax: (051) 9272455

Website: www.Askaribank.com.pk

Management

M. R. Mehkari President & Chief Executive

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Head Office

S. Suhail Rizvi Group Head-Business Transformation Haseeb Saulat Group Head-Marketing & Strategic Planning Javed Iqbal Chief Information Officer Rehan Mir Global Treasurer Khalid Muhammad Khan Group Head-Operations Khawaja Shaukat Iqbal Country Head-Agriculture & Rural Business Farooq Abid Tung Country Head-Special Asset Management Saleem Anwar Chief Financial Officer Muhammad Munir Ahmed Country Head-Electronic Technology Lubna Azam Tiwana Country Head-Risk Management Zahid Mehmood Chaudhry Country Head-International Banking

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Israr Ahmed Executive Incharge-President Support Office Farrukh Iqbal Khan Chief Credit Officer Hassan Aziz Rana Head-Legal Affairs Muhammad Ahmed Ghazali Marghoob Company Secretary Babar Waseim Country Head-Establishment Zain Ul Abidin Country Head-Compliance & Data Abdul Farooq Acting Country Head-Human Resource Muhammad Iftikhar Baloch Head-Central Processing Unit Abdul Waseem Country Head-Credit Administration Shahid Abbasi Country Head-Audit & Inspection

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Commercial Banking

Khurshid Zafar Group Head-Commercial Banking

North Region

Syed Tauqir Haider Rizvi Regional General Manager Inamullah Khan Niazi Area Manager-Azad Kashmir Tanveer Afzal Khan Area Manager-Peshawar heikh Muhammad Ibrar Ali Area Manager-Rawalpindi-II Muhammad Tayyab Khan Area Manager-Islamabad Sher Afgan Khanzada Area Manager-Rawalpindi-I

Central Region

Tahir Yaqoob Bhatti Regional General Manager Saulat Hameed 25

Area Manager-Lahore-II Ejaz Musarrat Area Manager-Lahore-I Mushtaq Ahmed Area Manager-Gujranwala Tariq Waheed Area Manager-Faisalabad Javed Iqbal Area Manager-Multan Adnan Asghar Area Manager-Sahiwal

South Region

Mirajuddin Aziz Regional General Manager Saif Ur Rehman Khan Area Manager-Karachi-III Irfan Malik Area Manager-Karachi-II Maqbool Ahmed Soomro Area Manager-Hyderabad Hassan Raza Kari Area Manager-Karachi-IV Saleem Sohail Butt

26

Area Manager-Quetta Ahsan Noor

Management System:

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POLICY FORMULATION PROCESS

Any policy that is being suggested is to be approved by the board of directors. Before this, the management of the bank takes up the affairs that are to be discussed in the board meeting and the agenda is prepared. Circular is sent to the persons who have to attend the meeting. And the policies and issues are discussed for possible approval or rejection in the meeting. ASKARI COMMERCIAL BANK has its policy making function centralized to the upper management. The upper management after making the policies communicates them to the respective departments and branches. The meetings for policy making are held as and when required. Lower management loses not take part in policy formulation but can give suggestions.

MANAGERIAL POLICIES

Managerial policies include all those policies which are adopted by the bank in performing all it internal activities as well as external operations. Different policies are required in order to introduce innovation and ensure maximum operational efficiency at minimum cost. Financial policies Procurement policies Marketing policies Promotional policies Lending policies Personal policies

FINANCIAL POLICIES

The financial policies of any bank are the most important policies through which the whole banking activity is conducted. These policies are primarily conducted on: Source of funds Use of funds SOURCE OF FUNDS: The bank finance policy is acquiring funds from the following sources: Deposits of account holders. Interest on advances and loans granted to the borrowers.
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 Income and commission from the services provided by the bank. Bank opens various types of accounts for its customers Services are provided for earning. Interest income and commission bank providing the services to its customer. USE OF FUNDS: After the acquisition of the funds their acquisitions become necessary. The bank seeks the best way for making investment to got more profit with the maximum security. The bank has an investment portfolio in which it allocate its funds for crediting to borrowers, investment in the stock market, investment in the real estate property etc. for allocation of funds a bank has to follow some banking policies and the prudential regulations of SBP these are: A bank has to maintain liquidity with central bank, i.e. 25 %of its total deposits. A bank cannot invest all of its funds otherwise it will be difficult to meet urgent needs. A substantial part of funds is received from interest on loans and advances. Before granting a loan the bank analyzes and observes the borrower and conduct a complete ratio analysis. Bank prepares credit line for this purpose the major thing is granting an advance is the security offered by the borrower and its actual market value.

PROCUREMENT POLICIES

Procurement policies are more concerned with manufacturing organizations. In bank industry that is service industry procurement means the procurement of funds from various sources such as deposits. It involves attracting and holding the funds of the depositors. After the acquisition of funds, the bank invest the acquire funds. One alternative is to lend its money and earned interest markup or invest in govt. securities etc. as already mentioned in the above paragraph the major sources of funds for a bank are the deposit of the general and the other sources of income includes interest or markup charges received for various services offered by the bank to its clients. A bank tries to attract maximum no. Of accounts so that it can increase its deposits and these lending ability. In order to get maximum no. of accounts the staff of the bank must be efficient as compared to the other banks and the manager of the branch must take personal interest in attracting deposits. Good quality of the service is the key to success.

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MARKETING POLICIES

Marketing policies are also one of the most important policies because they are related to the growth of the organization. Marketing for a bank would mean: Creation of new product and services. The bank marketing must be consumer oriented.

Following are the marketing policies of the ACBL. Keeping the track of latest development in the world and incorporating the latest and most modern equipment to make the banking procedures simple and easy for the customers. Development of products for the customers. Giving good services and maintaining good relations with the customers. These policies can be implemented by providing the right product and service to the customer at the right place, at the right time, at the right price. It is necessary for the managers to keep in touch with consumers, observe their needs and develop products, which meet their needs.

PROMOTIONAL POLICIES
Public relation and advertising has assumed a great importance in the modern banking business. As for as promotional activities are concerned, the main objective of the bank is to inform the existing clients and other people about its new products or change in the existing services. ACBL establishes its purpose through: Direct contact with customers. Relation with business organizations. Community relations.

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LENDING POLICIES

Every bank has its own lending policies except for those, which are common for all the banks, i.e. the policies, which are imposed on all the commercial banks by the SBP, are known as prudential regulations. The lending policies of ACBL are as follows: The bank only invests in those sound and viable projects, which have good rate of return. Bank prefers to advance loan to their account holders. Loan is given to reliable person only. No political loan is sanctioned by bank. Any account holder can apply for running finance or demand finance. The manger appraises the past record of account holder and his credit worthiness. If he finds anything wrong he can refuse to sanction the amount. The bank while taking security prefers govt. Securities to shares. It also advances working capital loans.

PERSONAL POLICIES

Personal policies have an important role in the success of an any organization. ACBL have its proper personal policies. Good personal policies motivate the employees towards hardworking. Following are the main personal policies of ACBL: Selection of employees on merit Selection of capable employees. Attractive salary package for motivation of employees. To train and develop the future management of the bank. Every employee must have certain set of clearly defined duties Effective communication at al levels of the organization

JOB ASSESSMENT METHODS

There is no objective method as such or there is no hard and fast rules following which the job efficiency of any worker can be assessed. But of course there are some subjective methods, which help the management to assess the job efficiency. The factors, which are considered, are as under:
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 First of all the management itself considers the repute of the officer, his attitude towards his job and his sense of responsibility. Secondly, each and every department is given a target at the month start or at the year start. They are required to achieve those targets collectively. Each officers efforts are considered in the accomplishments of those targets. This also shows the commitment of the officer towards the job. Then efficiency is also measured through the business, which has been brought by the employee. Every employee has some contacts but the management considers the fact that how far the employee is committed to use those contacts for his organization. This also shows the loyalty of the employees for the bank. Another counting factor is the business, which has been brought to the bank by any officer. At the year end all these factors are taken into consideration by the management and inferences are drawn and upon the managements recommendation the officer is rewarded or given promotion or is advised to perform better.

DEPARTMENTS
GENERAL BANKING DEPARTMENT CREDIT DEPARTMENT FOREIGN EXCHANGE DEPARTMENT

Banking procedures are divided between various departments. Different departments do their jobs in occurrence with the bank policies. In ACBL each branch is divided into various departments. Head of department manages each department & officials of the branch follow procedures. The departments working within a branch are as:

GENERAL BANKING DEPARTMENT

Account opening department Remittances department Cash department Clearing department

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PRIVILEGE BANKING DEPARTMENT

Online banking Lockers

CREDIT DEPARTMENT
General Credit Department Agri- Credit Department

FOREX DEPARTMENT
Import department Export department Foreign currency department

ACCOUNTS DEPARTMENT
ACCOUNT OPENING DEPARTMENT
Account Opening In-charge

Officer

Officer

Functions of Account Opening Department

Providing account opening form according to the customer's requirements, Guide the customer about the requirements of the account opening and form filling, Check the forms whether they are correctly completed or not, Preparing checklist, Stamping on the form, Maintaining account opening register, Pasting of forms in register after release from general banking in charge,
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Issuance of cheque books, Issuance of accounts maintenance certificate, Closure of account Verification of signature in case of cheque presented before releasing of account opening from SS card is not yet scanned

ACCOUNT OPENING PROCEDURE:

The Account Opening Form Completion of The Form Introduction of the person Specimen Signature Card Cheques Book Requisition Online Form Signature Difference Form Vernacular Form Account Number Issuance Of A Cheque book Undertaking

TYPES OF ACCOUNTS
i. Proprietorship Account

When the owner of the firm operating singly, open an account in his firm name Documents required Computerized National Identity Card (CNIC) of proprietor. Declaration for proprietorship concern. Proprietorship Stamp Visit report Letter of request to open the account on the letterhead of proprietorship. Third party Mandate, in case any other person has been authorized by the proprietor to operate the account. National Tax Number (NTN) but it is optional

ii.

Partnership Firm Account

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The documents required for these accounts are Account Opening Form SS Card Copy of NIC of all Partners Copy of registration certificate Copy of partnership Deed

iii.

Joint Account

These are the account of two or more persons who are neither partners nor trustees. Special instructions are needed to be filled in. Both persons must provide their CNIC. ATM card are not issued in joint operation. Other documents required Account Opening Form Specimen Signature (SS) Card Up to date Memorandum Article of Association Certificate of incorporation. Certificate to commence business. Resolution of board passed under company seal to open account. NIC Passport of all the directors authorized signatures. List of directors authorized signature

iv.

House wife account:

They just need to fill in the undertaking form; there ID card is also required v.

Salaried Person account:

Salaried persons are required to provide: Employer certificate Copy of appointment letter Copy of ID card

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vi.

Value Plus account:

Value plus account is usually used for loan disbursement and it carries no charges for cheque book issuance or ATM issuance but on the first time and later on it will be charged

CHEQUE BOOK ISSUANCE PROCESS:

A requisition form is provided to the customer and signed by him/her and then signatures are verified. This is entered in the register and cheque book number is taken. Number is matched from the cheque book and is written down on the requisite. Cheque book is stamped and leaves (cheques) are counted. Then entry in the system takes place and requisition slip is marked for the charges

CLEARING DEPARTMENT
MEANING OF CLEARING
The word clearing has been derived from the word Clear and is defined as a system by which banks exchange cheques and other negotiable instruments drawn on each other within a specific area and thereby secure payment for their clients through the Clearing House At specified time in an efficient way. Since clearing does not involve any cash etc. and all the transaction take place through book entries, the number of transaction can be unlimited. No cash is needed as such the risk of robbery, embezzlements and pilferage are totally eliminated. As major payments are made through clearing, the banks came manage cash payments at the counters with a minimum amount of cash in vaults. A lot of time, cost and labor are saved. Since it provides an extra service to the customer of banks without any service charges or costs, more and more people are inclined and attracted towards banking.

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

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MEMBERSHIP CEASES
It ceases to be a scheduled Bank. It is not able to meet its liabilities. State Bank of Pakistan or Central Govt. prohibits it to receive fresh deposits.

RULES AND REGULATIONS HAVE CLEARING HOUSE:

i. ii. Timing:(Monday through Saturday) 1st Clearing at 10:00 a.m. 2nd Clearing at 2.30 p.m. Each bank will send competent representative to exchange the cheques. Each bank is required to insure that all cheques and other negotiable instruments are properly stamped and suitably discharged An objection memo must accompany each and every cheque when return unpaid duly initialed. Each bank is required to maintain sufficient funds in the principal account with SBP to meet the payment obligations. The State Bank of Pakistan debit the account of each member of the clearinghouse with the proportionate working expenses incurred on the operation of clearing house. These expenses are very nominal. OUTWARD CLEARING AT THE BRANCH:

The following points are to be taken into consideration while an instrument is accepted at the counter to be presented in outward clearing: The name of the branch appears on its face where it is drawn o. It should be stale or post dated or without date. Amount in words and figures does not differ. Signature of the drawer appears on the face of the instrument. Instrument is not mutilated. There should be no material alteration ,if so, it should be properly authenticated. If order instrument suitably indorsed and the last endorsees account being credited. Endorsement is in accordance with the crossing if any. The amount of the instrument is same as mentioned on the paying-in-slip and counterfoil. The title of the account on the paying-in-slip is that of payee or endorsee (with the exception of bearer cheque)

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If an instrument is in order than our bank special crossing stamp is affixed across the face of the instrument. Clearing stamp is affixed on the face of the instruments, paying-in-slip and counterfoil (The stamp is affixed in such a manner that half appears on counterfoil and payingin-slip). The instrument is suitably discharged, where a bearer cheque does not require any discharge and also an instrument in favor a bank not need be discharged. The instrument along with pay-in-slip is retained while the counterfoil is given to the customer duly signed. Then the following steps are to be taken: The particulars of the instrument and the pay-in-slip or credit voucher are entered in the outward clearing register. Serial no is given to each voucher. The register is balanced; the credit vouchers are balanced from the instruments and are released to the respective departments against acknowledgement in the register. The instruments are arranged bank wise. The schedules are prepared in triplicate, two copies which are attached with the relevant instrument and the third is kept as office copy. The house page is prepared from schedules in triplicate. The schedules and house pages are signed by the house in charge with branch stamp. The grand total of the house page is taken and agreed with that of the outward clearing register. The instrument along with duplicate schedule and house page are sent to the main office.

However the amount is kept in float till final status of various instruments is known from respective paying banks in second dealing. The entry of the instrument returned unpaid is made in Cheques returned Register. If the instrument is not to be presented again in clearing then a covering memo is prepared. The covering memo along with returned instrument and objection memo is sent to the customer who sent the same to his account.

INWARD CLEARING OF THE BRANCH:

The particulars of the instruments are compared with the list. The instruments are detached and sort out department wise. The entry is made in the inward clearing register (serial no. Instrument no. Account no. Is written). The instruments are sent to the respective departments The instruments are scrutinized in each respect before honoring the same.
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OUTWARD CHEQUES RETURNED UNPAID:

These are the cheque returned unpaid by us in inward clearing. due to some objections.

INWARD CHEQUES RETAINED UNPAID:

These are the cheques retained unpaid to us which were lodged by us in Outward Clearing.

RETURN OF CHEQUES AFTER CLEARING HOUSE:

Suppose all cheques received in the inward clearing are passed and later on it is found that a cheque should have been returned, in such cases, we contact the collecting branch and request them not to make payment against the proceeds of the cheque which was not returned unpaid by us in due time. the cheque with objection memo along with a covering letter is sent to the collecting branch, making request to issue a payment order in favour to balance the Cash-cumday book we may debit suspense account sundry debtors with the approval of the manager. When the payment order is received, it is lodged in clearing and suspense account, sundry debtors is adjusted accordingly.

CREDIT DEPARTMENT
General Credit Department Agri- Credit Department General Credit Department
This department is intended to satisfy general public needs who want to take loan from bank for their particular purpose or for business. Askari bank offers wide and unique package to their customers. Following products are offered by this department:

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 Smart Cash:
It has maximum financing limit of up to Rs. 500,000/-(Clean) and up to Rs. 1 Million (Secured) Its borrower are Pakistani national resident Its tenor is for one year Its services is available at all braches Askari Bank Limited Mark up rate is competitive Repayment by monthly debt servicing on the outstanding balance

Personal Finance
Borrowers are Pakistani national resident It has maximum financing limit of up to Rs. 500,000/-(Clean) and up to Rs. 1 Million (Secured) Repayment by monthly installments Mark up rate is competitive Its tenor is maximum for five years Eligible for age between 21 years to 65 years

Business Finance
Borrowers are Pakistani national resident It has maximum financing limit of up to Rs. 50 Million Primary security is residential & commercial / Built up Properly & Land Repayment by monthly debt servicing on the outstanding balance Its services is available at all braches Askari Bank Limited

Mortgage Finance
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
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Agri-Credit Department
In this branch, this department is in direct supervision of branch manager and well as credit manager. It deals in both running as well as term financing. It offers the following services, Kissan Ever Green Finance Kissan Tractor Finance Kissan Aabpashi Finance Kissan Livestock Development Finance Kissan Farm Mechanization Finance Kissan Transport Finance

FOREIGN EXCHANGE DEPARTMENT

The term "foreign exchange" is used to denote either a foreign currency or the rate at which one currency is converted into another or the means & methods by which one currency is exchanged for another.

Functions of Foreign Currency Account Department

Foreign exchange department performs following functions:

Foreign Bills for collection (FBC) Foreign telegraphic transfer (FTT) Foreign Demand Draft (FDD) TDR Issuance of Proceed realization certificate Inward remittances Daily Reporting

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Requirement of Funds Transfer

For transfer of fund in foreign currency, a person must have his account in foreign exchange in the bank. Requirement of account opening is $500 or any other currency equivalent to $500.
Types of currency Dollar Pound sterling Euro Interest p.a. .25% 2% 1%

SWOT ANALYSIS
An analysis indicating towards the organizations strengths, weaknesses, opportunities and threat is termed as SWOT Analysis. Such an analysis is very important for the management in retaining the strength, overcoming the weaknesses, capitalizing over the emerging market opportunities, and carving ways to successfully tackle with the threats and ultimately converting them in the strengths for the organization. During six weeks of my stay at Askari Commercial Bank, Shahalam Market Lahore, I have come across the following SWOT analysis of the bank.

1) Strengths :
ACBL was organized by Army Welfare Trust (AWT), it has strong army background The bank has entered in international business by establishing its international branch in Bahrain. Bank received Best Presented Annual Accounts prize for the financial sector in the SAARC region by the south Asian federation. Askari Bank also started Islamic banking in December 2005.

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 Technology and automation is a backbone of ACBLs strategic competitive advantages overall domestic players The human resource philosophy at Askari bank focuses on professional grooming, on the job as well as offsite training The bank has also started ATM facility in most of its branches. 24-hour banking is new trend in Pakistan and ACBL has also taken apart in this trend All the braches of ACBL are online and automated Askari Bank has wide range of ATM network across the country The bank has established a good branch network within a short span of time The bank design service quality standards to establish inspiring relationships to its stakeholders

2) Weaknesses
Though much of the work is computerized but even then at few places, the employees do some work at hands and then also record at computer. This dual recording takes more time ACBL has lesser number of branches as compared to many other banks. Due to this problem, army officers can not avail the benefits of their own bank. Bank marketing is not very strong. Advertisement done by the bank is less than the requirement Though Askari Bank is offering locker facility but it is limited and is not offered in all of its branches The dedicated Islamic Banking Branches offered by Askari Bank are very less as compared to its competitors. In Askari Bank, most of the time merit not has importance in hiring of employees. Such practices are black spot on the face of bank and resulted big losses and fraudulent acts by ASKARI BANK own employees. Askari Bank is providing credit facilities mostly in the urban areas but this facility is much limited and strict in rural areas

3) Opportunities
Askari Bank has a less branch network as compared to its competitors, opening more branches in existing as well as new markets will also be huge opportunity for the bank Setting of target for of making at least 300 branches country wide online
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 ACBL can increase its operations by proper promotional campaigns of its new innovative services. House financing schemes should be offered to general public Bank has only one foreign branch in Bahrain so it should open its branches outside the country especially in U.K, U.S.A and in U.A.E Illiterate people are also an opportunity for ACBL in regarding this service. ABL can serve these people by giving instructions in Audio and in Urdu. They can also have instructions written in Urdu on card or even they can have a display in Urdu. Comprehensive training programs has been develop to upgrade the core banking skills of the existing staff as well as integrate high-quality hiring

4) Threats
SBP levy heavy penalties on bank in case of violating the prudential regulations especially in case of advances. Some other banks have competent taskforce, which is also a threat for ACBL. Because human resource is the most valuable resource. Recently banks and other financial institutions have introduced innovative schemes to attract deposits, like gift cheque scheme by MCB. These schemes offer prizes on short and long term fixed deposits, through lucky draws but Askari Bank is not offering such offers Now the other players of banking are also providing the modern technology based services like online and Internet banking facility so there is no more competitive advantage in this are Now banks are using technology which covers the distance no matter how far away any one, through a satellite based, on-line real-time banking system and by offering telephone banking, electronic funds transfer, E-Banking and other modern facilities

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Part II

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Activities During Internship Period

INTERNSHIP EXPERIENCES DIFFICULTIES FACED

INTERNSHIP EXPERIENCES One of the most important aims of the student life is to express herself correctly and adequately. This was believed in my mind when I first decided to go to Askari commercial Bank to complete my internship program.

FIRST WEEK
I started my internship from simple banking work "in the first week. Which is basically divided into the following sub departments, which are as follows? Account opening Bills and remittances Clearing Term deposit Cash department

The first day of exposure to the practical field was at the (sub department) Account opening. The relationship of customer starts with this department. Everyone is not allowed to come and open an account in the bank, for this purpose there should be an introducer who himself is the account holder in the same branch. He has to introduce the new client by signing the opening account form and then his signature is verified. Applicant's fills the account opening form and provides it to the bank with photocopy of I.D. card and signatures card. Then the banker inquires the about the option of opening a joint account or individual. If the customer wants to open joint account then either it is "either or survivor" (i.e. Only one persons signature is sufficient) or jointly (i.e. Both should sign the cheque).

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Account opening
Issuance of cheque book:

Once the account is opened, ACBL issues the cheque books to the customer so that they could withdraw their money whenever they like. The producer of issuance of the cheque book is as follows: For the customer who already has an account with the bank, the lastly consumed cheque book requisition slip with the help of which a new cheque book is issued. And the person who is going to open a new account for the first time gets the cheque book free without any requisition slip. For the new depositors the cheque book is not issued at the time of opening of account, rather it is issued after three days but, as the most of the customers are from the armed forces so the usually get the cheque earlier. ACBL issues the cheque books for both the local and foreign currency accounts. ATM SECTION

I worked in ATM department. The countrywide network of automated teller machine carrying the brand name "ASKCASH". The branch network is corrected on-line real time and its customers have access to off-sites as well as on-site ATMs all over Pakistan. Being a part of the first inter-bank ATM switch in Pakistan with ABN AMRO and Habib bank, the customer now here has access to about 90 ATMs through the country. For ATM cards first the customer open account in the bank after that he/ she fills the application form for the ATM. the Head office send a ATM cards in a ATM department but pin codes are sent in other department. So in this way the customer gates his/ her ATM cards. ATM means "24 hours services" the customers get money at any time at any place but during my period the function of ATM were held by the Head office for three days. The branch has no authority to hold the machine, if it is not working; the Head office knows the reason for it. On the whole, it is an excellent strategy of ACBL and to sign a strategic partnership with ABNAMRO for ATM sharing arrangement is first time in Pakistan.

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SECOND & THIRD WEEK

I spend 2 weeks in this department. The credit Department of ACBL Allama Iqbal Town Branch is divided into 2 parts
General Credit Department( dealt by Mr. Hussnain) Agri- Credit Department (dealt by Mr. Haroon)

General Credit Department

This department is intended to satisfy general public needs who want to take loan from bank for their particular purpose or for business. Askari bank offers wide and unique package to their customers. Following products are offered by this department:

Smart Cash
It has maximum financing limit of up to Rs. 500,000/-(Clean) and up toRs. 1 Million (Secured) Its borrower are Pakistani national resident Its tenor is for one year Its services is available at all braches Askari Bank Limited Mark up rate is competitive Repayment by monthly debt servicing on the outstanding balance

Personal Finance
Borrowers are Pakistani national resident It has maximum financing limit of up to Rs. 500,000/-(Clean) and up to Rs. 1 Million (Secured) Repayment by monthly installments Mark up rate is competitive Its tenor is maximum for five years Eligible for age between 21 years to 65 years

Business Finance
Borrowers are Pakistani national resident It has maximum financing limit of up to Rs. 50 Million Primary security is residential & commercial / Built up Properly & Land Repayment by monthly debt servicing on the outstanding balance Its services is available at all braches Askari Bank Limited
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 Mortgage Finance
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

Agri-Credit Department
In this branch, this department is in direct supervision of branch manager and well as credit manager. It deals in both running as well as term financing. It offers the following services, Kissan Ever Green Finance Kissan Tractor Finance Kissan Aabpashi Finance Kissan Livestock Development Finance Kissan Farm Mechanization Finance Kissan Transport Finance

FOURTH WEEK:
In the fourth week of my internship I was shifted to the Clearing section and Bills for collection section as well. Three days I worked with the "Clearing" and then with the "Bills for collection" section. CLEARING: This is a "Inter-city clearing" i.e. the cheques of Lahore city from different banks like National Bank of Pakistan, Standard Chartered Bank, Muslim Commercial Bank are deposited here. The deposited cheque is received carefully by checking the title of cheque, date, amount, and signature on the cheque. All the cheques go to the State Bank of Pakistan. Everyday NIFT receives all cheques and arranges them. By establishment of NIFT a lot of time, cost and labor is saved. The cheques are stamped carefully. Two stamps are required on the cheques. Clearing stamp Payee's account will be credited
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If any stamp is missed or unclear, SBP returned one the cheque with reason. When the cheques are deposited they enter all the cheques on the computer with account number and these figures go to SBP. There are four types of Balances in the computer Available balance Float amount Block amount Ledger balance

NIFT collects all the cheques at 2:00 pm. After that the computer department give clearing sheet that is checked in clearing.

Same day clearing:

All the cheques are cleared in coming day. But same day cheques are cleared other same day when it is deposited. The same day cheque amount is 50,000 below this amount the cheque, can't be cleared in the same day.

Clearing house:
It is a place where representatives of all scheduled banks sit together and interchange their claim against cash other with the help of controlling staff of "state Bank of Pakistan" where there is no branch of State Bank of Pakistan, the designated branch of State of Pakistan. BILLS FOR COLLECTION Two types of cheques are deposited here: Outstation cheques Askari other branch cheques (local) Outstation cheques mean different cities cheques are deposited and local means Askari's other Branches like cantt, circular road, defence, Gulberg etc. All cheques account numbers on the computer and these figures go to SBP. The cheques are cleared in 5-6 days. Because "NIFT" receives and delivered to SBP where these cheques are cleared in 3 days and deliver to the banks, which mention on the cheques.

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FIFTH WEEK
In the second last week of internship I was transferred to the "Remittances department". I met there with a quite sophisticated personality, she tells me about the issuance, procedure and the entries of the demand drafts and pay orders. DEMAND DRAFT: It is an instrument payable on demand for which value has been received, issued by the branch of the bank drawn. Demand draft is payable at some other branches of the same bank. But Askari Bank contract with MCB. So ACBL's demand draft are payable at MCB also. Demand draft is very useful because there is no chance o fraud. The person deposit cash and get demand draft. It is used for outstation payment. Issuance of demand draft On the application form following particulars are given: Name of beneficiary Amount Mode of payment The place where DD is drawn Signature Name and address of the beneficiary

Request shall be made on standard application form. The customer writes his name, address, I.D number, and phone number on the backside of the application form. Commission is charged as per schedule of charges. The issuance of DD is computerized and the amount is automatically protecting graphed drawing printing for the avoidance of forgery. The withholding tax and excise duty is deducted as per schedule. When the customer depots cash in the cash department, he got voucher from the cash department and gave it to the person who makes the DD. Payment of DD DD payable register Payment of DD from Suspense A/c. Cancellation of DD Types of DD TELEGARPH TRANSFTER PAY ORDER
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SIXTH WEEK
In the last week of my internship I worked in the "Accounts section".

ACCOUNT SECTION:
I worked in accounts department but as it is a confidential department so they did not give me enough information regarding their working. First day I sorted out the cheques of ACBL with the help of the serial number and the nature of the account and arrange them in sequence. After that i checked the activity which contains the title of the cheque, amount, date etc. Accounts department maintains the record of expenses of all the departments, it also maintain the record of all the employees regarding their basic salary, increment, benefits etc. It is the backbone of ACBL On the next day Is worked in the mail dispatch section, the person appointed here asked me to arrange the letters and to write the mailing address on the envelopes and then to put the letters into the envelops. It was an interesting job but, the single thing which I learned from here was that, I learnt by heart the addresses of many branches of the ACBL, which helped me to complete the Marketing Mix portion of the same report where I have given the detail of the Place of the ACBL. On the following day I repeated the same job and did nothing else.

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Part III

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OVERALL SUMMARY
At present there is no such organization in the world that is free from problems and challenges. Every concern has to strive and struggle a lot to be more profitable and to get more competitive edge. The management of AKBL is taking strategic steps to enable the bank to emerge as a strong and progressive institution. It is continuing to make efforts to refine its products and operations to make them more compatible. New deposit schemes have been introduced and an action plan to maintain revenue growth in future. During my internship I have learned many new things in spite of the knowledge gained at university and also came to conclusion that education alone is not enough, practical training in every field is crucial to become a successful manager. The bank has great image due to the trust but it needs to use it effectively to increase market share. Also the flaws in branch operations such as misallocation of resources should be rectified. As the business and economic conditions remain uncertain, AKBL continues to develop the new products like it has been doing in past.

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Problem during Job:

Not that there were any major problems during these two months that I have worked here I would say little incidents and experiences have added to my learning of what is called a little of politics and the needed training required would at times take a little longer to initiate as the planning was run on national level. Other than a few down the line experiences all I have is good memories and a great environment to work and be a part of. Doing the internship was a wonderful experience for me but as far as preparation of the report is concerned it was the most difficult part of the project. Preparing for report become most difficulty and tedious as most of the information was not available not only on net but also from the bank also.

RECOMMENDATIONS TO ASKARI BANK

As such there is no need of any improvement as Askari Commercial Bank is one of the leading bank of the country and upholds its name but still I have a few suggestions in my mind which I think my duty to mention. First of all, in order to make the working environment of the bank better some recommendations are given. In any organization we have to work like a group as a whole. The attitude of the one employee can cause tension in the whole environment so it is suggested that they should work as a team and co-operate with each other as well as with internees for better working environment. For this purpose they should either make a schedule for the internees or the rotation time period be reduced in those department, which have less work for internees. Because during the internship the internees come her to learn and know about the working of the organization. They should try to tell as much to the internees as possible. So that they can learn how they have to work in an organization when they get the job. Even if they get job in any other organization they know how working in the organization goes on.

RECOMMENDATIONS TO INSTITUTE OF BUSINESS AND INFORMATION TECHNOLOGY (IBIT)

While studying in IBIT, I have analyzed some problem. Keeping in views those problems followings are my recommendations: 1. The management of this prestigious institute should introduce the training Programmes among the departments i.e. IAS & IBA same as the UMT does with the IBA for the promotion of students.
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2. This institute also should organize the seminars with the cooperation of industries like with Chamber of Commerce and Supply Chain Group of Pakistan that assist its students and the market will knows its students. 3. The institute also should arrange the field tours for its students to enhance and give the market exposures. Institute

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

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BIBLIOGRAPHY
Web References: www.askaribank.com.pk www.investopedia.com www.ebay.com www.sbp.gov.pk www.askaribank.com.pk/network_branches.php www.scribd.com/doc/18676156/Pakistan-Banking-Sector www.scribd.com/doc/30857614/Banking-Industry-of-Pakistan Annual report of Askari bank 2010 Annual report of Askari bank 2011

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