INTERNSHIP REPORT

INTERNSHIP REPORT
INTERNSHIP REPORT ON ASKARI BANK LIMITED

JINNAH COLLEGE MANSEHRA

SUBMITTED BY: WAQAS

BBA (HONS)

1014
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SESSION: 2009-2013

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SUBMITTED BY: WAQAS BBA 1014 YEAR OF SUBMISSION: 2013 SUPERVISOR: UBAID UR REHMAN REGISTRAR: ZAMEER MURAD

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DECLARATION

An internship report submitted to the department of Management Sciences Jinnah College Mansehra, in partial fulfillment of the requirement for the degree of BBA.

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DEDICATION
I dedicate my Internship Report to my Parents who really support me in every field of life and finally make me able to complete such a lengthy and complicated project.

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Preface
The main purpose of the internship is to fulfill the academic requirements of my study. It encourages learning with emphasis on assigned project. Beside this, the other purpose is to give a comprehensive review of ACBL (Askari Commercial Bank limited). The most important point in an internship Program is that the student should spend their time in a true manner and with the spirit to learn partial orientation of theoretical study framework. This report is about my internship that I have undergone at Askari Commercial Bank Limited Mansehra Branch from 16 July to_________. During my internship I am able to learn practical aspect of business, and get good working experience.

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Table of contents Chapter No 1 INTRODUCTION History and Background Business Philosophy Vision Statement/ Mission Statement Market Standing Topic s Page No

Management System Organization Chart Corporate Profile Management Hierarchy Policy Formation Process Managerial Policies

Marketing Mix Product Price Place Promotion Publicity

Financial Statement Analysis Horizontal Analysis Vertical Analysis Financial Ratio Analysis

SWOT ANALYSIS
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Strength Weaknesses Opportunities Threats 6 TRANNING PROGRAME Division or Department detail Activities of intern Projects assignments Completed 7 PROBLEMS AND PRCOMMENDATIONS CONCLUSION List of annexure

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EXECUTIVE SUMMARY
ACBL was incorporated in Pakistan on October 9, 1991. It started its operation during April 1, 1992 and in the 15 Year since; its growth and success patterns have far outgrown industry standards. Each year ACBL recruit and hires a number of undergraduate and graduate interns to work in various positions throughout the organization. Internship have been part and parcel of ACBLs history, offering a streamlined and comprehensive internship Programs. In this report I have tried to mention all the aspects of ACBL are banking operations.

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CHAPTER: 1 INTRODUCTION History and Background Business Philosophy Vision statement/ Mission statement Market Standing

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EVALUATION OF BANKING
Bank is a pipeline through which currency moves into and out of circulation. Bank accepts deposits and repays cash to its customers on their demand. The bank borrows money at lesser rate of interest and lends it to the borrowers at a higher rate. It is thus a profitlending concern. Word Bank is said to be derived from the words Bancus or Banque that means a bench. Other authorities hold the opinion that the word Bank from German word Back which means joint stock fund. Later on, when the Germans occupied major part of Italy, the word Back was Italianized into Bank (Aslam, 1999) It is therefore, not possible to decide as to which of the opinions is correct, for no record is available to ascertain the validity of any of the opinion.

EARLY GROWTH:
The history of banking is tracked to as early as 2000 BC. The priests in Greece used to keep money and valuables of the people in temples. These priests thus acted as financial agents. The origin of banking is also traced to early goldsmith. They used to keep strong safes for storing the money and valuables of the people. The persons who had surplus money funded It safes and convenient to deposit their valuables with them.

BANKING IN PAKISTAN
At the time of partition total number of Bankers was 38 only. Out of these Banks the Pakistan were only 2, Indian Banks 29 and Exchange Banks were 7. The total of deposits of Pakistani banks was Rs. 880 Million. And advances were Rs. 198 Million. Banking started in Pakistan after the bold and emergent decisions of formulation of SBP on July 30, 1948. At the time of independence Bank services was badly affected. But with the passage of time these are improving. The government of Pakistan nationalized all Banks of Pakistan in early 1974. Two Banks (Allied Bank of Pakistan and Muslim Commercial Bank of Pakistan Limited) have been denationalized. Since then Banks were working well. Now slogan of the Banks is to serve their customers n the best possible manner.

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HISTORY AND BACKGROUND:

Askari Bank was incorporated in Pakistan on October 9, 1991, as a public limited company. It commenced operation on April 1, 1992, and is principally engaged in the business of banking, as defined in the Banking Companies Ordinance, 1962. The Bank is listed on Karachi, Lahore and Islamabad Stock Exchanges. Since inception, the bank has concentrated on growth through improving service quality, investment in technology and people, utilizing its extensive branch network which includes Islamic and Agricultural banking. Corporate Social Responsibility is an integral part of the way we do business. In order to fulfill our CSR objectives, we attempt to promote public interest by encouraging community growth and development through sponsoring social service events, supporting education, sports, and environment and also contribute in socio-cultural activities. AWARDS AND ACHIEVEMENTS Best Retail Bank in Pakistan by The Asian Banker. "1st Consumer Choice Award" by the Consumer Association of Pakistan. 2004 "Corporate Excellence Award" by the Management Association of Pakistan (MAP). 2002, 2003 & 2004. The Best Bank in Pakistan by Global Finance magazine. 2001 and 2002. Best Consumer Internet Bank Global Finance magazine. 2002 and 2003. "Euro money and Asia money Awards" 1994, 1996 and 1997. Best Presented Annual Accounts by (ICAP) and (ICAMP). 2000, 2001and 2002. The Best Presented Annual Accounts by South Asian Federation of Accountants (SAFA), in the SAARC region. The Best Consumer Banking Award 2006 by the Consumer Association of Pakistan. 2007 The Best Retail Banking Award 2008 by Pakistan Guarantee Export Corporation Ltd. 2008

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INTERNSHIP REPORT "Best Corporate Report Award for the year 2008" by ICAP & ICMAP. 2008 "The Best Annual Report Award for the year 2010" by ICAP & ICMAP. "The Best Presented Accounts Award 2010 - 2nd Runner Up-Joint" by South Asian Federation of Accountants.

FUNCTIONS OF ACBL: ACBL is a commercial bank, which transacts the business of banking in accordance with the provisions of BCO, 1962. Section 7 of the Act authorized Banks to engage in the prescribed form of business. In the light of this ACBLs functions can be categorized as under: Agency services General utility services Underwriting of loans raised by the government Providing specialized services to customers Accepting deposits MISSION STATEMENT: As it is that an organizations culture, products, services. Employees, their attitude, philosophy, self-concept, market and environment throws light on the corporate mission, so one of the business executive at the banks, based on his personal observation and judgment, carved the following mission of the Askari Bank Limited as The Mission Statement of the Bank: To be the leading private sector bank in Pakistan with an international presence, delivering quality services through innovative technology and effective resource management in modern and progressive organization standards, while providing enhanced value to all their stakeholders and contributing to society CORE VALUE

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INTERNSHIP REPORT We understand that our commitment to satisfy customers need must be fulfilled within a professional and ethical framework. We subscribe to a culture of high ethical standards, based on the development tents of our organization they very small sent of guiding principles that have a profound impact on how everyone in the organization thinks and acts. They have an intrinsic value for us and bear significant importance to all our employees. They are the few extremely powerful guiding principles; the soul of the organization the values that guide all our actions. The intrinsic values, which are the corner stones of our corporate behavior, are: Commitment Integrity Fairness Team-work Service Vision: To be the bank of first chpice CORPORATE PHILOSOPHY: From knowing our customers requirements to understanding employee need, from utilizing modern technology to making responsible social contributions, from enhancing stake-holders value to practicing corporate ethics. We are continuously and consistently striving to address newer challenges with a single motivation: the power to inspire and be inspired OBJECTIVES: Deliver solutions that meet customer financial needs Build and sustain a high performance culture Build trusted relationships with all stakeholders Build and manage the Banks portfolio of business to achieve strong and sustainable shareholder return. JINNAH COLLEGE MANSEHRA
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INTERNSHIP REPORT Create and leverage assets and capabilities for competitive advantage. To facilitate the Bank with modern Banking technique To accelerate commercial activities and capture large market share. Code of Business Principle: Our Code of Business Principles is to: Deliver solutions that meet customers financial needs Build and sustain a high performance culture Build trusted relationships with all stakeholders Build and manage the Banks portfolio of Business to achieve strong and sustainable shareholders returns Create and leverage strategic assets and capabilities for competitive advantage CORPORATE OBJECITVES: To achieve sustained growth and profitability in all areas of business. To build and sustain a high performance culture, with a 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 full potential. To effectively manage and mitigate all kind of risks inherent in the banking business. To optimize the Banks portfolio of business to achieve a strong and sustainable shareholder returns and to continuously build shareholder value. To deliver timely solution that best meets the customers financial needs. To explore new avenues for growth and profitability. STRATEGIC PLANNING To comprehensively plan for the future to ensure sustained growth and profitability. To facilitate alignment of the vision Mission Corporate Objectives with the business. To provide strategic initiatives and solutions for projects, products, policies and Procedures.

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INTERNSHIP REPORT To provide strategic solutions to strengthen weak areas and to counter threats to profits. To identify strategic initiatives and opportunities for profit. To crate and leverage strategic assets and capabilities for competitive advantage. CODE FO ETHCS AND CONDUCT: Askari Banks 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 conduct. Presence of a corporate culture that seeks to create an environment where all employees are treated equitably and with respect. Employee 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 confident information which may come to their possession during the discharge of responsibilities. Respect for customer confidential matters. Merits the same care as does the protection of the Banks own affairs or other interests. Employees must ensure that know your customer principle are adhered to by obtaining sufficient information about the customers to reasonably satisfy ourselves as to their reputation, standing and the nature of their business activities.

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INTERNSHIP REPORT Employees must avoid circumstances in which their personal interest conflicts, or may appear to conflict, with the interest of Bank or its customers. Employees must never use their position in the Bank to obtain personal advantage or gain. Employee must not enter into an agreement understanding or arrangement with any competitor with respect to pricing of services, profile rates and marketing policies, which may adversely affect the Banks business. Employee must not accept gifts, business entertainment or other benefits from a customer or supplier/ vender which appear or may appear to compromise as commercial or business relationship. Employee must remain alert and vigilant with respect to frauds, thefts or illegal activities committed within the Bank premises.

MARKET STANDING OF ASKARI BANK: ACBL have A1+, the highest possible credit rating, for short term obligations, and their long term rating stands at AA+ by PACRA (Pakistan credit rating agency). The rating specifies a very high credit quality and very strong capacity for timely payment of financial commitments. DIFINITIONS BY PAKISTAN CREDIT RATING AGENCY LIMITED (PACRA): Very high credit quality. AA denotes a very low expectation of credit risk. They indicate very strong capacity for timely payment of financial commitments. This capacity is not significant vulnerable to foreseeable events. Obligations supported by the highest capacity for timely repayment.

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ORGANIZATIONAL CHART:

Corporate Banking

Group Head Corp. Banking & Financial institution

Merchant Banking

International

treasury

Credit

President & Chief Executive Board of directors Executive Committee

Electronic Technology Group Head operations & Credit System & Operations Regions / Areas Legal Affairs

Investment Products

Group Head Retail Banking

Assets Products

Credit Cards

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CORPORATE PROFILE BOARD OF DIRECTORS

Lt Gen Muhammad Mustafa Khan, HI (M) (Retd) Chairman - Board of Directors Lt Gen Muhammad Zaki, HI, HI (M) (Retd) Director Lt Gen Naeem Khalid Lodhi, HI (M) (Retd) Director Mr. Qaiser Javed Director Dr. Nadeem Inayat Director Khawaja Jalaluddin Roomi Director Mr. Manzoor Ahmed (NIT) Director Mr. Asif Reza Sana Director Syed Majeedullah Husaini - President & CE

Mr. M. A. Ghazali Marghoob

Company Secretary

AUDIT COMMIT
Mr. Qaiser Javed Chairman BAC

Dr. Nadeem Inayat

Member BAC

COMPANY SECRETARY Mr. M. A. Ghazali Marghoob JINNAH COLLEGE MANSEHRA

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INTERNSHIP REPORT CHIEF FINANCIAL OFFICER: Mr. Saleem Anwar, FCA. Auditors: AF. Fergus & Co Chartered Accountants. LEGAL ADVISORS Rizvi, Isa, Afridi & Angell Dr. Muhammad Tahir Mansoori Legal Advisors

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INTERNSHIP REPORT CORPORATE INFORMATION

Lt Gen Muhammad Mustafa Khan, HI (M) (Retd) Chairman - Board of Directo

Lt Gen Muhammad Zaki, HI, HI (M) (Retd) Director

Lt Gen Naeem Khalid Lodhi, HI (M) (Retd) Director

Mr. Qaiser Javed Director

Dr. Nadeem Inayat Director

Khawaja Jalaluddin Roomi Director

Mr. Manzoor Ahmed (NIT) Director

Mr. Asif Reza Sana Director

Syed Majeedullah Husaini - President & CE

Mr. M. A. Ghazali Marghoob Company Secretary

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INTERNSHIP REPORT EXECUTIVE PROFILE Mr. Haseeb Saulat Senior Executive Vice President Group Head - Branch Banking Mr. Haseeb Saulat is currently holding the position of Group Head, Branch Banking. Mr. Saulat possesses a rich Banking experience of more than 22 years starting from 1985 at BCCI as Incharge General Banking. He joined Askari Bank in 1992 and served at key managerial positions. When he was serving as Chief Manager at Blue Area Branch, Askari Bank undertook its Restructuring & Change Management Program under which he was elevated to Area Manager-Islamabad position in 2007. He is a business graduate from Greenwich University, Lahore. He has attended a number of foreign and local training courses. Mr. Farrukh Iqbal Khan EVP/Chief Credit Officer Mr. Farrukh Iqbal joined Askari Bank in February 2010 as EVP/Head of Audit & Inspection Division and is currently holding the position of 'Chief Credit Officer'. He caries diversified banking experience of 20 years. He started his professional career with State Bank of Pakistan in 1993 and later on also served as Head of Audit in KASB Bank Limited from January 2004 to 2010. Academically he is CISA & CICA qualified, holds Banking Diploma from IBP and has done Masters in Business Administration. He has also got Certificate of Directors Education from Pakistan Institute of Corporate Governance and serving as nominee Director on the Boards of 'askari general insurance' and 'Askari Investment Management Limited'. He has attended number of training courses during his service.

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INTERNSHIP REPORT Mr. Khurshid Zafar EVP/ Group Head Corporate & Investment Banking Group Mr. Khurshid Zafar is presently designated as Group Head- Corporate and Investment Banking Group. He joined Askari Bank Limited in July 2010 and served on key positions including Regional General Manager South and as Group Head- Commercial Banking. Mr. Khurshid possesses a vast experience of over 23 years in the field of Corporate, Investment Banking, Retail and Commercial Banking. He has served in various Investment and Commercial Banks at senior positions and has attended number of local and foreign training courses. He holds an MBA Degree from Quaid-e-Azam University, Islamabad. Mr. Saleem Anwar EVP/Chief Financial Officer Mr. Saleem Anwar, Chief Financial Officer (CFO) has extensive experience spanning over 20 years in the fields of finance, taxation, audit, planning & corporate affairs in Pakistan & abroad. He joined Askari Bank in June 2008 as head of strategic planning and company secretary and was later assigned the role of CFO in April 2009. After completing his training from M/s Price Waterhouse Coopers, Chartered Accountants, he joined Al Faysal Investment Bank Limited in 1992 where he worked till 2001 as vice president. Later, he served Faysal Bank as Financial Controller. Prior to joining Askari Bank, he served as head of finance and special projects for Islamic banking initiative of Mashreq Bank, Dubai, and UAE. Mr. Anwar is a fellow member of the Institute of Chartered Accountants of Pakistan. He has participated in various professional training courses / seminars in Pakistan and abroad.

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INTERNSHIP REPORT Mr. Abdus Samad Khan EVP/Executive Incharge PSO & Country Head - HRD Mr. Abdus Samad Khan has joined Askari Bank as Executive Vice President and Executive Incharge in May 2012. He was given additional charge of Country Head HRD in October 2012. Mr. Samad holds an MBA Degree and is a Diploma Associate of the Institute of Bankers in Pakistan. He has been director on the Boards of Commercial Bank/Investment

Bank/AMCS/Leasing and Insurance companies and remained a member on the Board of Governors of Sarhad University at Peshawar. He has attended a number of local & foreign training courses, workshops and seminars. He possesses diversified banking experience spanning over 33 years in the field of Commercial, Corporate, Treasury and Investment Banking. He started his career in 1978 with Habib Bank Limited and within few years was posted overseas at Bahrain to Head the Offshore Banking Unit of HBL. In 1993 he became the Treasurer of HBL during which he founded the FMA (Financial Markets Association of Pakistan). In 1998 he joined Saudi Pak Industrial & Agricultural Investment Company Limited as EVP and Country Head Treasury & Capital Markets. He also served at Capital Development Authority for two years as Head of Investment Management with the status of Member. Prior to joining Askari Bank he was the Chief Executive Officer of First Dawood Investment Bank Limited.

Mr. Rehan Mir EVP/Global Treasurer Mr. Rehan Mir joined the Bank in January 1995 and is presently designated as the Global Treasurer at Treasury Division since December 2008. Before his designation as Global Treasure, he worked on different important assignments in the Treasury. JINNAH COLLEGE MANSEHRA
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INTERNSHIP REPORT Mr. Mir holds a graduate degree from the University of the Punjab, Lahore. During his Banking career, he has attended a number of foreign and local training courses on treasury and Foreign Exchange operations. He possesses over 34 years of rich Banking experience mainly comprised of treasury operations, money market and foreign exchange operations. He started his professional career in 1978 with UBL as a Trainee Officer and later on switched to Askari Bank Limited in 1995. Mr. Waqar ul Islam EVP/Regional General Manager - South Mr. Waqar Ul Islam is an MBA from IBA Karachi. He is a seasoned international banker with a professional experience of 37 years including 26 years with Swiss financial institutions where he has also served as member of Management Committee of a Swiss Bank. Mr. Waqar is an expert in Credits, Treasury and Risk Management with experience of setting up business and rolling out branches. He has an excellent track record in soliciting and developing new business for financial Institutions in UK, Luxembourg, Bahrain, UAE, Cayman Islands and Pakistan. Mr. Waqar started his career in 1976 with BCCI Karachi and was posted to Central Credit Division in London. Mr. Waqar joined Banque de Commerce et de Placements (BCP), Geneva in Dec 1982 and served this Bank for 23 years in Luxembourg and Bahrain as Country Manager. He successfully set up the dealing room in Luxembourg. In addition to Treasury business, he successfully developed Private Banking & Correspondent Banking business for Luxembourg and Bahrain branches. He successfully set up Askari Bank OBU operations in Bahrain in 2003 and served as Senior Vice President and General Manager. Mr. Waqar joined Fortis Banque (Suisse) SA, Dubai office in 2005 as the Vice President & Head of Private Banking - Pakistan desk. He also served as Advisor to the CEO of Equitable Management Consultants, Dubai for two years. JINNAH COLLEGE MANSEHRA
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INTERNSHIP REPORT Mr. Waqar also served as Head- Risk Management Division at KASB Bank for 6 months prior to joining AKBL as EVP/ RGM South from 1st July 2013.

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ORGANIZATIONAL HIERARCHY
PRESIDENT

Senior Executive Vice President

Executive Vice President

Senior Vice President

Vice President

Assistant Vice President

Branch Manager

Assistant Manager

Operations Manager

Officer Grade 1

Non Clerical Staff: Guards & Peaon

Clerical Staff : Cashier Typiest & Clerks

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Managerial Policies: A. Financial policies B. Procurement policies C. Marketing policies D. Promotion policies E. Lending policies F. Personal policies FINANCIAL POLICIES The financial policies of any bank are the most important policies through which the whole banking activities is conducted. These policies are primarily conducted on: Sources of Funds Use of Funds

SOURCE OF FUNDS The bank finance policy is acquiring funds from the following sources: Deposits of Accounts holders Interest on advances and loans granted to the borrowers. 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 becomes necessary. The bank seeks the best way for making investment to get more profit with the maximum security. The bank has an investment portfolio in which it allocate its funds for crediting to borrows, investment in the stock market, investment in the real estate property etc. For the allocation of funds a bank has to follow some banking policies and the prudential regulations of SBP these are: JINNAH COLLEGE MANSEHRA
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INTERNSHIP REPORT A bank has to maintain liquidity with state bank of Pakistan, 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 received from interest on loans and advances. Before granting a loan the bank analyzes and observes the major thing is granting an advance is the security offered by the borrower and its actual market value. PROCUTEMENT POLICIES Procurement policies are more concerned with manufacturing organization. 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 source of funds for a bank 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.

The 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 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 success. MARKETING POLICIES Marketing policies are also one of the most important because they are related to the growth of the organization. Marketing for bank would mean: 1. Creation of new product and services. 2. The bank marketing must be consumer oriented. Following are the marketing policies of the ACBL. a) Keeping the latest development in the world and incorporating the latest and most modern equipment to make the banking procedures simple and easy for the customers. JINNAH COLLEGE MANSEHRA
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INTERNSHIP REPORT b) Development of product for the customers. c) Giving good services and maintaining good relation with the customers. These policies can be implemented by providing the right product and services to the customer at the right place, at the right price. It is necessary for the managers to keep it touch with consumers, observe their needs and develop products, which meet their needs. PROMOTION POLICIES: Pubic relation and advertising has assumed a great importance in the modern banking business. As for as promotion activities are concerned, the main objective of the bank is to in form the existing client and other people about its new product or change in the existing services. ACBL establishes its purpose through: 1. Direct contact with customer. 2. Relation with business organization. 3. Community relations 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: 1. The bank only invests in those sounds and visible projects, which have good rate of return. 2. Bank prefers to advance loan to their account holders. 3. Loan is given to reliable person only. 4. No political loan is sanctioned by bank. 5. Any account holder can apply for running finance or demand finance. The manager appraises the past record of account holders and his credit worthiness. If he finds any thing wrong he can refuse to sanction the amount. 6. The bank while taking security prefers govt. securities to shares. JINNAH COLLEGE MANSEHRA
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INTERNSHIP REPORT 7. It also advances working capital loans. PERSONAL POLICIES Personal policies have an important role in the success of any organization. ACBL have its proper personal policies. Good personal policies motivate the employees towards hardworking. Following are the main personal policies of ACBL: 1. Selection of employees on merit. 2. Selection of capable employees. 3. Attractive salary package for motivation of employees. 4. To train and develop the future management of the bank. 5. Every employee must have certain set of clearly defined duties. 6. Effective communication at al levels of the organization.

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