INTERNAL ANALYSIS OF ASKARI

COMMERCIAL BANK LIMITED

DEDICATION

We dedicate this project to all the

dedicated staff
Of
Askari Commercial Bank.

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ACKNOWLEDGEMENT

By the grace of God and the most efforts of our group. We

are able to accomplish our project well in time. At this
moment we must pay special thanks to our guiders for
their Cooperation and guidance that made us accomplish
our Project. Also it is matter of great pleasure for us to
put our efforts just in front of well esteemed
Organization i.e. Askari Commercial bank. Also we are
grateful to the staff of the bank, who showed a keen
interest and cooperated whole heartedly through out the
entire course of activities.

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 ASKARI COMMERCIAL BANK LIMITED

INTRODUCTION:
Askari Commercial Bank Limited is a division of Army Welfare Trust of
Pakistan (AWT). It was incorporated in Pakistan on October 9, 1991, as a
public limited company. It commenced its operation on April 1, 1992. Askari
Commercial Bank Limited is a scheduled commercial bank and it works under
the prudential regulations of the State Bank of Pakistan and is engaged in the
business of banking, as defined in the Banking Companies Ordinance, 1962.
The Bank is listed in Karachi, Lahore and Islamabad Stock Exchanges and its
share price is currently the highest quoted from among the new private sector
banks in Pakistan currently 48% of its shares are held by AWT.
Askari Bank has expanded into a nation wide presence of 98 Branches, and
an Offshore Banking Unit in Bahrain. A shared network of over 1,100 online
ATMs covering all major cities in Pakistan supports the delivery channels for
customer service. As on December 31, 2005, the Bank had equity of Rs. 8.6
billion and total assets of Rs. 145.1 billion, with over 600,000 banking
customers, serviced by our 2,754 employees.

OBJECTIVES:
• To achieve sustained growth and profitability in all areas of business.
• To build and sustain a high performance culture, with a continuous
improvement focus.
• To develop a customer-service oriented culture with special emphasis
on customer care and convenience.

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 • To build an enabling environment, where employees are motivated to
contribute to their full potential.
• To effectively manage and mitigate all kinds of risks inherent in the
banking business.
• To maximize use of technology to ensure cost-effective operations,
efficient management information system, enhanced delivery
capability and high service standards.
• To manage the Bank’s portfolio of businesses to achieve strong and
sustainable shareholder returns and to continuously build shareholder
value.
• To deliver timely solutions that best meets the customers’ financial
needs.
• To explore new avenues for growth and profitability.

MISSION STATEMENT:

“To be the leading private sector bank in Pakistan with an

international presence, delivering quality service through
innovative technology and effective human resource
management in a modern and progressive organizational
culture of meritocracy, maintaining high ethical and
professional standards, while providing enhanced value to our
stakeholders and contributing to society”

THE VISION:
“To be the Bank of First Choice in the Region”

CORPORATE PHILOSOPHY:

Inspiring Relationships

From knowing its customers requirements to understanding employee needs,

from utilizing modern technology to making responsible social contributions,

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form enhancing stakeholders value to practicing corporate ethics, ACBL is
striving consistently and continuously to address newer challenges with a
single motivation, which is

“The power to inspire and be inspired”

Inspiring Ethic And Core Values Of ACBL:

Integrity is the most valued standard in whatever we
do. We understand that our commitment to satisfy customers' needs must be
fulfilled within a professional and ethical framework. We subscribe to a
culture of high ethical standards, based upon development of right attitudes.
The intrinsic values, which are the corner stones of our corporate behavior,
are:
 Commitment
 Integrity
 Fairness
 Teamwork
 Service

ANALYSIS OF ASKARI
COMMERCIAL BANK
LIMITED

OPERATIONAL ANALYSIS

The departments in ACBL are divided into large ‘groups’ and each group has
other small departments to handle and those small departments are called
‘divisions’. Each division is then divided into ‘units’. Following are different
groups along with their responsibilities and overview of their divisions and

5
units:

OPERATIONS AND CREDIT GROUP:

The operations and credit group is responsible for all operational as well as
credit and risk management activities of the Bank. This includes development
and implementation of systems, operational policies and procedures and
procedures, process re-engineering, automation, branch expansion and
acquisition of premises, regulatory reporting, compliance management and
legal affairs. The Group comprises of the
• Credit Division
• Electronic Technology Division
• Systems and Operations Division
• Compliance and Data Division
• Legal Affairs Department

THE CREDIT DIVISION (CRD)

The credit division is responsible for ensuring identification, control and
management of credit risk through its policies. It concentrates on evaluation
and appraisal of the credit proposals through a team of experienced bankers, at
all levels.

The Credit Administration Unit of the CRD constantly monitors the existing
credit portfolio and ensures timely action and constant follow-up to regularize
and mitigate any weak areas, which may emerge with the passage of time. A
Special Asset Management Unit, operating as a part of the CRD, closely
monitors the problem loans of the Bank. To ensure low ratio of Bad Debts, it
takes necessary remedial measures for timely recoveries.

ELECTRONIC TECHNOLOGY DIVISION (ETD):

The Electronic Technology Division is responsible for managing the Bank’s
technology needs. This includes not just establishing and maintaining
technology infrastructure for providing operational support to all units of the
Bank, but also introduces latest state-of-art technology-driven products and
service delivery systems. This division has made significant contributions
towards successfully expanding and managing the customer base of the bank.
This division has provided the entire Bank with a countrywide
communications network including Satellite, Radio, Leased Line Links, LAN,
and WAN, on-line countrywide ATM and inter-branch transaction capability.
Because of this division, the Bank won a “Best Consumer Internet Bank in
Pakistan” Global Finance Award for year 2003. Many other future

6
technological projects are under processes, which include Call Centers, Data
Mining and Warehousing, enhancement of ATM networks to international
standards.

SYSTEMS AND OPERTIONS DIVISION (SOD):

This division is responsible for ensuring smooth and effective systems and
operations of the Bank. It focuses on disseminating and facilitating
implementation of the Management’s policies and decisions for various
operational activities of the Bank. It also develops manuals for various
departments and operating activities of the Bank. It is also responsible for
procurement of equipment for branches and coordinates the development of
new branch premises. The responsibility for the Bank’s ‘Annual Branch
Expansion Plan’ and all aspects from planning to implementation rests with
this division. It includes cost-cutting measures by improving procedures and
providing capital and operating expenses budgets.

COMPLIANCE AND DATA DIVISION (CDD):

The compliance and Data Division is responsible for ensuring effective
compliance with regulatory and data reporting requirements.

LEGAL AFFAIRS DEPARTMENT:

This department is responsible for ensuring effectively managing all legal
matters pertaining to the Bank and to protect its interests in this regard. It
provides counseling on all legal matters, complicated corporate affairs and
other similar legal affairs.

CORPORATE BANKING AND FINANCIAL

INSTITUTIONS GROUP:
This group is responsible for serving the banking needs of large corporate
clients in the public and private sector, managing correspondent banking
relationships, overseas operations and undertaking money market/capital
market transactions. The Group is organized in three divisions namely

• Corporate and Investment Banking Division

• International Division
• Treasury Division

CORPORATE AND INVESTMENT BANKING DIVISION (CBD & IBD):

The Corporate and Investment Divisions (CBD & IBD) are strongly
positioned across priority markets with a distinct strategy for developing

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corporate business. The strategic framework generates sustainable returns
based on strong market presence and financial solutions ranging from debt and
equity market transactions to syndicate finance, and from transaction banking
to finance advisory services

CBD has dedicated marketing support units functioning at Karachi and

Lahore. In order to enhance focus on relationship management and service
quality, more dedicated staff is being assigned for this purpose. IBD is brought
up to full strength and is fast taking shape as an independent strategic business
unit. This will provide increased focus on debt/capital markets, advisory
services and capital raising, trading and portfolio management.

INTERNATIONAL DIVISION (IND):

This division plays a key role in extending support to the branches
undertaking foreign trade and exchange business. While managing business
relationships with correspondent banks, IND remains on the look-out for
opportunities of extending its operations and presence in the international
market.

TREASURY DIVISION (TRD):

The Treasury Division is responsible for managing money market and foreign
exchange activities for the Bank.

RETAIL BANKING GROUP (RBG)

The Retail Banking Group is responsible for serving the banking needs of
retail market comprising of individual customers and small and medium sized
enterprises. These market segments are gaining increasing importance since
the margins in the corporate and commercial banking segments have reduced
to unprecedented levels, while margins in retail banking, though considerably
reduced are still much better than the former. The Group is managed in two
separate business divisions that are:

• Asset Production Division

• Investment Products Division

ASSET PRODUCTION DIVISION (APD):

Asset Production Division is responsible for development and managing of
retail credit schemes and is presently offering several innovative consumer
credit products. As far as future is concerned, APD continues to focus on
growth by innovating new products, creating strategic alliances, enhancing
marketing and sales efforts, and improving customer service through greater

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care and operational efficiency.

INVESTMENT PRODUCTION DIVISION (IPD):

The Investment Production Division is responsible for the development and
managing of brands that serve the investment needs of the retail market. It
focuses on deposit mobilization and provision of value added services and
products based on modern technology. IPD offers a range of products
designed to cater for diverse customer needs.

Apart from those divisions, which come directly under Groups, there are some
divisions, which do not come directly under any Group, which are:
• Credit Cards Division
• Planning and Corporate Affairs Division
• Human Resource Division
• Finance Division
• Internal Audit Division

CREDIT CARDS DIVISION (CCD):

The Credit Cards Division is responsible for managing the Credit Card
business of the Bank. It is headquartered in Karachi as a separate Strategic
Business Unit (SBU) of the Bank, with all internal functions including credit,
operations, marketing, sales, finance and audit; performed independently.

PLANNING AND CORPORATE AFFAIRS DIVISION

(PCD):
Established in September 2002, this division provides strategic direction to the
Bank and developing a futuristic outlook. It remains in touch with market and
assimilates both formal and informal information in order to identify new
opportunities for growth and increased profitability and counter any emerging
threats. A number of other activities are under consideration, including setting
up of an Islamic Banking Unit. The aim remains to constantly move towards a
learning organization and a dynamic culture.

HUMAN RESOURCE DIVISION (HRD):

This division is responsible for managing and facilitating the most important

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and strategic resource of not only ACBL but also any organization, which is
the human resource. Its focus is on harnessing the potential and energy of
workforce to ensure effective attainment of goals set by the Bank. Recruiting
the best, creating an environment that values merit across the entire
organization, improving human resource policies, enhancing monetary
benefits, organizing social events, providing training and development
opportunities, and initiating human resource planning, including carrier and
succession planning, are the major objectives of HRD.

FINANCE DIVISION (FND):

This division is the hub of all financial information for maintaining different
accounts and measuring the performance of the Bank. While ensuring overall
financial management, financial control, financial reporting and accounting
function, FND is responsible for maintaining the accounting records and
systems in accordance with internal policies, regulatory requirements,
corporate governance and international accounting standards. It also
establishes policies and procedures relating to finance function, monitors
returns/spreads and reports on various performance indicators. FND watches
for external factors and economic indicators to protect and enhance
shareholders value. The Division directs control of the budgeting process in
accordance with annual plans, policies, management directives and strategy. It
ensures quality budgets and forecasts for approval. FND exercises budgetary
control on all income and expense items, continually reviews accounting and
control systems, monitors capital adequacy. Many similar financial tasks lie
with this division.

INTERNAL AUDIT DIVISION (IAD):

The Internal Division (IAD) reports to the audit committee of the Board of
Directors as a part of good governance practice, primarily performs its
functions independent of the management. It focuses on monitoring and
promoting internal controls, risk management and governance. IAD serves as
a front line when it comes to monitoring and promoting internal controls, risk
management and governance. It also arranges workshops on anti-money
laundering. It maintains an appropriate internal audit infrastructure. IAD
ensures that it is abreast with the knowledge to meet challenges of modern-day
banking.

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These were the departments of ACBL overall. In AWT Plaza Main Branch the
departments that function are

• Credits
• Foreign Currency
• Foreign trade
• Deposits
• Remmittences
• Credit and ATM cards dealing and Locker Services
• Accounts
• OBC/Clearing
• Cash

INDUSTRY AND MARKET ANALYSIS

• SmartCash (Running Finance Facility for Consumers)

This perso Major product lines market segments

Askari Commercial Bank offers the following retail products to serve the
needs of the consumer market:

• Askari Bank’s Value Plus (Rupee Deposit Account)

“The best that you deserve”

Askari Bank leads the banking with the introduction of Askari Bank's Value Plus,
a rupee deposit account, which promises greater financial freedom and security,
in an unmatched way. With an investment of as little as Rs.10,000/- in a value
plus savings deposit and the customer is entitled to earn monthly returns, while
still enjoying the flexibility of a normal checking account.

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 • Askari Travellers Cheques (Rupee Travellers Cheques)

Askari Bank says

Don't leave home without the convenience of Askari

Travellers Cheques in your pocket.

Available in the denomination of Rs.10, 000/- , Askari Bank’s Travellers

Cheques are light, safe and ideal for all travel purposes.

Free Issuance:

Customer doesn’t have to pay any service charges for purchasing Askari
Travelers Cheques. They can buy these either against cash or debit to their
personal account. Customers can enjoy the privileges of buying Askari
Travelers Cheques by simply visiting any of Askari Banks branches located
all over Pakistan

Earn 0.10% encashment Commission:

This unmatched feature lets the customer experience yet another innovative
customer care solution. The customer will receive 0.10% commission
whenever the traveler cheque is encashed after 30 days of holding

Enjoy Added Safety & Security

With Askari Bank’s state-of-.the-art in-built security features the customer is
assured that this is the best way to make and accept payments. High security
lithography, ultra violet printing, special thread, anti scanner pyramid design
and unique micro lines, all done and printed in UK gives customer the comfort
of dealing in the most safest substitute for cash, easily refundable in case of
loss and theft

• ASKCARD (Debit Card)

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Askari Bank is committed to provide innovative and competitive solutions to
customers banking needs in a more efficient and personalized manner.
Askari Bank enjoys a strategic competitive advantage over all domestic
players by virtue of its leadership, large network and technological
advancement. In line with the tradition of innovation, Askari Bank is proud
on its recent launch of "ASKCARD"- Askari Bank's Debit Card. ASKCARD
is made to take care of your shopping needs and is a valuable financial
solution reflecting the commitment to build lasting relationship with its
customers.
ASKCARD means freedom, comfort, convenience and security, so that
customers can have retail transactions with complete peace of mind.
ASKCARD is a shopping companion which enhances customer’s quality of
life by letting them do shopping, dine at restaurants, pay their utility bills,
transfer funds, withdraw and deposit cash through ATM anywhere, anytime.

• ASKPOWER (Prepaid Card)

The Ultimate ..........Power Player is here

What is ASKPOWER?
ASKPOWER is another name for Askari Bank's Pre-paid Card. Unlike an
ATM or debit card, ASKPOWER is not connected to any account.
ASKPOWER is an instant cash card that can be used at any ACBL ATM or
other ATMs carrying 1-Link symbol, i-Net Banking and at all designated
Point of Sale terminals.

The card offers remarkable convenience for:

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 • Everyday purchases
• Payment of bills
• Safe alternative for carrying cash during traveling, special occasions,
and emergency back up.
• Easy transfer of money from one ASKPOWER card to other
ASKPOWER card.
• As a pre-paid card, ASKPOWER has its own built-in spending limit;
set by how much money is loaded to it and how frequently it is taken
out.
• Money can be conveniently loaded to any card either by depositing
cash at any ACBL Branch or through the ATM
• i-Net Banking from another ASKPOWER Card.

FEATURES:
• Issued to ACBL / Non-ACBL customers. (NIC Card holders)
• Minimum Issuance Limit: Rs. 500/- .
• 100% customer acceptance.
• Card can be reloaded anytime.
• Transfer of money from one card to another card.
• Payment of Utility Bills through ATMs and Internet.
• Instant access to money; 24 hours a day, 7 days a week.
• Easy cash withdrawal through ACBL ATMs or ATMs carrying 1-Link
or Orix Leasing network symbol.
• Fast, private, safe and secure option for cash transfers.
• Replacement of card in case of loss, theft, damaged or defective card.

ADVANTAGES:

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 • Ultimate way of carrying cash.
• Easy access to cash and commodities.
• No waiting in long queues for paying utility bills.
• No issuance fee.
• No credit approval required.
• Account relationship with ACBL not mandatory.
• Can be issued to anyone having National Identity Card.
• Convenient and inexpensive money transfers.
• Secured online access to transaction records and purchases.
• Countrywide acceptance and availability
ASKPOWER is acceptable at numerous locations including grocery
stores, retail stores, restaurants, gasoline stations and also at our existing
and continuously expanding network of ATMs and Point of Sales
terminals, where ASKPOWER symbol, 1-Link or Orix Leasing Network
logo is displayed.
ASKPOWER is safe and secure since it offers unmatched security to the
cardholders. It functions on a PIN-based mechanism as opposed to the
ordinary signature-based cards available in the market. Since only you
know your confidential number, you are protected against all sorts of
frauds.

The ATM Factor:

• Cash Withdrawal
• Utility Bills Payment
• Funds Transfer (to any other ASKCARD)
• Balance Enquiry
• Mini Statement

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 • ATM PIN Change

The Internet Factor:

• Utility Bills Payment
• Funds Transfer (to any other ASKCARD)
• Balance Enquiry
• Full Statement
• Internet PIN Change
• The POS Terminal Factor
• For product purchases

• Askari Master Card (Credit Card Facility)

This card has worldwide acceptability. It provides customers with service at

thousand of locations in Pakistan and over 14 million establishments’
worldwide.

Askari Master also gives traveling safety: Customer just needs to purchase
their travel tickets on ASKARI MASTER CARD and they are automatically
covered under ACBL’s Travel insurance plan. Askari Master Card has low
service charges. Askari Master Card provides customer the experience of
revolving their spending at comparatively low charges. It has no processing
fee on cash payments. When customer pays his/her Askari Master Card bills
in cash, bank does not charge any processing fee from them.

In case of card being lost or stolen the customer is always a phone call away
from the assistance needed. Once customer has registered the loss of credit
card, liability against its fraudulent use will be limited and we will send a
replacement cared within 48 hours of reporting.

The product now has a portfolio of more than 20000 cards. The brand is

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accepted worldwide and at over 3000 locations in Pakistan.
Askari bank’s cash management services
The product is for National and Multinational companies. The transaction
process flows, operational methodologies and service pricing varies from
customer to customer, with marginal modifications, depending upon volumes
and nature of transactions involved. Askari Cash Management Services aim at
effectively managing the accounts receivable portfolio of medium and large
corporate entities. This service helps the corporate entities improve their
liquidity, due to ACBL’s well-diversified branch network. The service
primarily aims at providing clearing, collection and cash/transfer facility to
corporate, under one resource center, which handle the process through the
branches and provide adequate reporting to the corporate clients, on various
aspects of their accounts receivable portfolio, every month.

• Askari Bank’s Personal Finance (Loan Scheme)

One can avail unlimited opportunities through Askari Bank’s Personal

Finance. With unmatched financing features in terms of loan amount, payback
period and most affordable monthly installments, Askari Bank’s Personal
Finance makes sure that the customers get the most out of their loan. No
matter what their needs are, Askari Bank has more ways to serve its
customers.

FEATURES:
• Loan amount from Rs.30, 000 to 300,000
• Repayment period from 1 to 3 years
• Fixed monthly repayment
• Low rates that never change
• No pre-payment penalties
• Shortest processing time
• Funds may be obtained at any ACBL branch

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 • ASKAR (Auto Loans)
Car Financing Made Easy

Askar offers the most convenient and affordable vehicle-financing scheme,

which provides its valuable customers an opportunity to own a brand new
vehicle of their choice. Askar's "No eligibility" clause automatically qualifies
a person to own a latest car of their choice. With minimum down payment,
lowest insurance rates and widest range of available car makes and models,
Askar offers the best value to its customers.

• Askari Bank’s Mortgage Finance (Home Loans)

Ever since the inception of life, shelter has been rated among the primary
needs of humanity. Owning a home for oneself remains an exclusive dream
for many. Askari Bank has made possible the dream of its customers to have
their own house. Whether the customer plans to build a house or buy a
constructed house, Askari mortgage finance enables to pursue goal without
any problems.

Askari mortgage finance offers the convenience of owning a house of its

customer’s choice while living in it at its rental value. The customer only has
to pay the price of property in affordable installments for a fixed time simply
as it pays monthly rentals for his/her residence. The installment plan is
carefully designed to suit both customers’ budget and accommodation
requirements. Askari Mortgage Finance brings the house of its customer’s
choice within its reach as no other mortgage-financing plan offers such a
facility, backed by the trust that is sealed into every transaction bearing the
Askari Bank mark.

• Askari Bank’s Business Finance (Business Loans)

Askari Bank’s Business Finance is a credit facility available for businesses. If
lack of funds has so far been the only reason why you haven't been able to
grow the business, then one can stop worrying about daily cash requirements
of the business, and start enjoying ACBL’s unique running finance facility
ranging from Rs. 500,000/ - to Rs. 5,000,000/-. Available up to 60% of the

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assessed market value of the residential property, through equitable mortgage,
the business pays mark-up on the daily outstanding loan balance.

Three good reasons why should this facility be availed

• Enjoy the flexibility of either small business finance (up to Rs.
1,000,000/ -)
• Medium business finance (up to Rs. 5,000,000/-).
The business is protected from immediate cash flow constraints. Businesses
enjoy the convenience of most attractive financing with minimum loan
approval turnaround time.

nal line of credit is set up with a specified credit limit agreed upon by the
customer and ACBL.
i.Customer can withdraw cash from his/her credit line as and when
required.
ii.The markup is charged only on the utilized amount and for the number
of days the credit is used.
iii.The markup is lower than a credit card.
iv.Personal loan and balance transfer facility.
v.Finance Amount: Up to Rs 1 Million revolving credit line

• Touch n Play (Utility Bills Payment)

Electronic Bill Payment Services lets pay utility bills through ACBL’s ATM
network. Customer can forget about the inconvenience of readjusting normal
daily routine to the traditional banking hours, or standing in long lines, since
Touch n Pay gives the option to pay multiple telephone bills, from different
accounts, in different ways - as per customer’s own choice and

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convenience.
At present, ACBL joined hands with PTCL and this arrangement facilitates
Utility Bills subscribers to pay their monthly Utility bills from Askari Bank's
ATMs, Point of Sale Terminals (POS), and the Internet and at the Bank's
branches through direct debit to their personal accounts. In future, such
transactions can be made through Kiosks and Smart cards.
ACBL currently has more than 150 ATMs in more than 17 cities including
ATMs of the Consortium Banks, which will be made available for bill
payment

Other products/services offered:

In addition to the above-mentioned products, other products/services offered

by ACBL are:
• On-line Branch Banking Network
• Askari i-Net Banking (Internet Banking Solutions)
• One Link (ATM Sharing Network)
These were the major products and services offered by ACBL. The following
show various products and services along with the market segments they
cater:

CONSUMERS (including housewives, employees and self employed

people):
• Askari Bank’s Personal Finance
• Askari Bank’s Mortgage Finance
• Askari Traveler’s Cheques
• Askari Master Card
• AskCard
• Ask Power
• Smart Cash

BUSINESSES:
• Askari Bank’s Cash Management Services
• Askari Bank’s Business Finance

BOTH CONSUMERS AND BUSINESSES:

• Askar

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 • Touch n Play
• Askari Value Plus

Growth rate for the entire industry

Banking industry is an industry whose growth rate has always been on an

increase during past, in the present and in the future. Each sector has small
branches of various banks are opened that are convenient for customers. As
far as growth rate is concerned, there the hot topic and of focused area of
banking these days is Retail Banking also called consumer banking. These
days growth rate of retail banking/consumer banking is rapidly increasing.
Now almost every bank is offering consumer-financing products. Because of
the various retail products, a common person’s life is made easy. Retail
banking is on the growth and this area of banking is to grow more in future.
COMPETITOR ANALYSIS

Major Competitors

These days there is cutthroat competition amongst the banks to get a biggest
market share possible. Specially, in the banking industry each bank is a
competitor of every other bank whether it operating on a large scale or a small
scale. SPCBL has many competitors but the following banks are its major
competitors:

 Bank Alfalah
 MCB Bank
 Habib Bank Limited
 Askari commercial bank

As far as multi national banks such as Citibank, ABN Amro and Standard
Charted Bank are concerned, SPCBL has competition in only one or two
products but they are not major competitors. the target market of the above
mentioned banks are different where as target market of SPCBL is different.
That is why SPCBL is not in direct competition with them.

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 DEPARTMENT WORKED
DURING INTERNSHIP AND
SPECIFIC/LEADING
CONTRIBUTIONS MADE

WEEK # 1
Accounts Department

MAJOR FUNTIONS OF ACCOUNTS DEPARTMENT.

Following are the major functions of Accounts Department, which is carried

out, in the daily course of business:

 Daily position reporting

 Daily Activity Checking
 Reporting
 Purchasing Function


REPORTING OF DAILY POSITION.

Daily position is prepared daily by the Accounts department to calculate the

cash balance to be maintained with the SBP and it involves the following
points.

1. Firstly the NIFT

statement is obtained
from the OBC

22
 department, which
involves the Main
summary page, Inter
city clearing (Rwp-
Isd) and Intercity
Clearing (Isd-Rwp).
2. The Balance of main
summary page is
favourable if it is
positive otherwise it is
against.
3. The Balance of
Intercity Clearing of
(Isd-Rwp) [Cheques
which is received by
us] is subtracted from
the Net Nift balance
of the main summary
page.
4. Similarly the Balance
of Intercity Clearing
of (Rwp-Isd)
[Cheques which is
delivered by us] are
Added in the balance
of main summary
page.
5. The balance so
arrived by Adding and
subtracting is said to
be favourable
Clearing if it is
positive otherwise
unfavourable clearing.
6. SBP balance is
obtained from
UNIDD100 and the
balance of the Net
Nift Clearing is added
or subtracted
accordingly.
7. Afterwards, any
cheque favouring SBP

23
 prepared by the cash
Department should be
subtracted from the
balance
8. Any Deposit in the
State Bank should be
added back to arrive
at the net balance
maintained with the
State bank.
9. This balance is then to
be reconciled with the
Annexure A.
10. The balances of
Assets and liabilities
is posted in Annexure
1A which includes the
following:

 Demand Deposits.
 Saving Accounts & ASDA Accounts
 Time Deposits.
 Borrowing from SBP (If any)
 Short Term Payable
 Sundry Creditors DTL
 Sundry Creditors OL
 Contra Accounts
 Other Liabilities Excluding FCF FE-25
 FCF FE-25

11. The balance of Liabilities

should be matched with
the balance of liabilities
of the Affairs.
12. The Balance of Assets
from the Affairs should
be posted in the Asset
side of the Annexure 1-A
and includes the
following items:

24
 Cash on Hand in Foreign Currency Account, Local
Currency Account and Cash in ATM (from
UNIDD 100)
 Balance with SBP
 Investment in National Prize Bonds
 Total Loans and Advances
 All Other Assets
 M.O Account
 Expenditure Account
 M.O Account

13. The balance of Assets

should be matched with
the balance of Assets of
the Affairs.
14. Following Figure should
be entered from UNIDD
100 in the Annexure 1B
statement which includes
the following:

 Payment Against Document PAD (7240)

 Local Bill for Purchase LBP (7280)
 Foreign Bills for Purchase FBP (7260)
 Finance Against Foreign Bills FAFB (7270)
 LC’s Foreign (8240)
 LG’s Other Guarantees (8230)

15. Punching the Number of

Accounts from
UNIDD170 is made by
entering the Total
Number of Live Accounts
in Annexure 1D. This
report the total number of
accounts in which any
movement takes place in
the preceding day.
16. In Annexure 1C the
posting of Foreign
Currency Account having
code Number (3255,

25
 3855,4040) is entered on
every Saturday so that
these figures should be
deducted from the
demand and time
liabilities. 5% of these
Demand & Time
Liabilities is calculated
which is considered to be
the Cash reserve
requirement for the whole
week (From Monday-
Friday).

17. After preparation of these

reports, these should be
signed from the Accounts
In-charge and Manager
Operations. Afterwards
the Statement of Cash
reserve with the State
Bank of Pakistan
(Annexure A) should be
faxed to treasury well on
time.

18. After Fax is made to

treasury this statement is
filed in daily cash
position file along with
other files.

19. Reports such as

UNIDD62, UNIDD170,
UNIDD100, is filed
separately.

20. Main Summary,

UNIDD100, UNIDD113,
UNIDD110 Today is filed
jointly in miscellaneous
file.

26
DAILY ACTIVITY CHECKING
Current Deposit Account (CD)

Types of Customers:
 Business
 Business Man
 Business Partners
 Salaried Persons

Classification:
 01-01-010-1234-5
 01-01-012-1234-5
 01-01-014-1234-5
 01-01-015-1234-5 (President Earth
Quake Relief Fund)

H.O EXTRACT

Before getting print of H.O Extract, we have to balance the Dr. & Cr. Side of
H.O Extract. H.O is also known as M.O (Main
Office).It is treated as Asset as we send the excess fund to the Treasury.
Treasury after receiving funds made investment on it and pay 8% per month
on the balance of M.O account with them.

Through this H.O IBCA (Inter Branch Credit Advice) we transfer funds
from One Branch to another branch.

There are two types of H.O Vouchers namely:

 Originating

 Responding

ORIGNATING VOUCHERS.

The branches usually transfer funds from one branch to other. The branch,

27
 which transfers the funds, is called the originating branch whereas the
branch to which the funds are transferred is called the responding branch.
Originating vouchers basically credit vouchers. For example:

Br. Code

FROM: Rawalpindi Main 01

MAIL TO: Karachi Main 02

RESPONDING VOUCHERS:

These vouchers are Dr. Vouchers and used by the

responding branch that actually receives those funds from
the originating branch. For Example:

Br. Code
FROM: Karachi Main 02
MAIL TO: Rawalpindi Main 01

Following things should be check in case of H.O Extract:

 Branch Code
 Transaction Number
 Amount of IBCA
 IBCA Number

Transaction Code 14 is used for Credit Amount, Transaction Number 15 is

used for Debit Amount and Transaction Number 05 is used for online
transaction.

The first posting of transaction in the H.O Extract is considered as final

posting as no amendment is accepted again in the report on the same day.
Any amendment made is highlighted on the next day.

ASKARI SPECIAL DEPOSIT ACCOUNT (ASDA)

ACCOUNT NUMBER: 01-01-165-0001-3

28
01 Shows The Branch Code
01 Shows The Currency Code
165 Denotes The Asda Account
0001 Is The Account Number Of The Asda Account Holder
3 Is The Computer Digit Generated By Computer Itself.

ASDA is the hybrid account having the features of both CD Account and PLS
Account.

ACCOUNT (FISDA) FINANCIAL INSTITUTION

SPECIAL DEPOSIT

Account Number: 01-01-168-0001-3

01 Shows The Branch Code
01 Shows The Currency Code
168 Denotes The Fisda Account
0001 Is The Account Number Of The Fisda Account Holder
3 Is The Computer Digit Generated By Computer Itself

This A/c is specially for financial Institution like Askari

Leasing & Askari General Insurance.

FAIDA ACCOUNT.

Account Number: 01-01-172-0001-3

01 Shows The Branch Code
01 Shows The Currency Code
172 Denotes The Faida Account
0001 Is The Account Number Of The Faida Account Holder
3 Is The Computer Digit Generated By Computer Itself

FAIDA account was an option given to those customers of Askari commercial

bank who have their accounts in foreign currency to convert them to local
currency, after the nuclear explosion in 1998 according to SBP regulations.
No FAIDA account is opened now days.

29
ACTIVITY CHECKING OF CD, ASDA, FISDA &
FAIDA ACCOUNT

Modes Of Posting:

 Cash
 Clearing
 Transfer

Types Of Vouchers:
 Cheques
 Deposit Slips
 Debit Vouchers
 Credit Vouchers

Physical Checking:

CHEQUES
a. Sorting of Cheques:

Separation of Cheques according to

classification of Account such as 010-,
012-,014-,015-
Arrange the Cheques in Ascending Order
according to Account Number.

b. Checking of Cheques:

The Instrument containing the Account

Number, Document Number, Cheque
Number, and Amount in figures, Date of
Instrument (i.e. The instrument should not
be post dated), stamp must be reconciled
with the activity in order to ensure that
the posting in the Unibank is done
accurately in all respect.

30
DEPOSIT SLIPS
a. Sorting of Deposit Slips:

Sort the deposit slips according to account

numbers

b. Checking of Deposit Slips:

Check the Account Number, Title of Account,

document Number, Instrument number,
Amount in figures, stamps with Activity
report.

DEBIT VOUCHERS (Yellow / Pink Vouchers)

Debit voucher used by Bank employee for transfer of funds.

The reconciliation of Account Number, Document Number,
Title of Account, Amount in Figures, stamping with the
vouchers is required.

CREDIT VOUCHERS (Green Vouchers/CMA Credit

Slips)

It also requires the same checking of vouchers with the

activity as requires in Debit Vouchers.

TALLY UNCHECKED AMOUNTS WITH

TRANSFER REGISTER.

Those entries, which are unchecked, should be checked with

the transfer register to find out the ID of the person. Any ID
other than 00, 99, and 95 should be entered in the Missing
Vouchers Register for follow up.

31
MISSING VOUCHERS REGISTER.

Missing vouchers register is maintained to note down all

missing vouchers in daily activity report. Following
particulars should be entered in the register:

 Date of Missing Vouchers

 Account Number
 Title of Account
 Amount
 Dr / Cr
 Type of Account
 ID

BUNCH BINDING OF VOUCHERS.

Staple the vouchers separately in Dr/Cr bundles in Yellow

Paper. Counting is done for the vouchers to enter on the
front page of the Yellow Wrapping Paper.

VOUCHERS NUMBER REGISTER.

Total Number of Dr and Cr is counted and entered in the

Vouchers Number Register for the respective Account for
completion of the process.

VOUCHERS BAGS.

After making bunch of vouchers it is transferred in white

cotton bags. The date of activity is entered on the bags for
easy access to the vouchers in case of need.

32
 Week #2
FOREIGN TRADE

Foreign trade is the act of import and export or

transaction of goods between different countries of the world. It is also called
International trade. It plays an important role in the development of the
economy of the country. Exports are more preferred than import by all the
countries but countries have to import the goods that are not available in their
own country. Foreign trade take place as a result of three factors regarding the
endowment of productive resources in different parts of the worldwide i.e.
Climate conditions, availability of the natural resources and technical know
how. If a specific resource of a country is abundant than that good is easily
available in that country and vice versa.
It is also called the External Trade that involves the external or foreign
countries.

FOREIGN TRADE DEPARTMENT

IN ACBL:

This department deals in

imports and exports of the goods for its customers.
In exports goods are export or send to the other
foreign countries mentioned by the exporters and
in imports goods are imported for the applicant.

33
 EXPORT’S WORKING:

When documents are received for collection in FDBC (Foreign documentary

Bills for Collection). Following steps are followed: -
1. FDBC stamp will be affixed on all the documents.
2. FDBC number from FDBC register will be allotted.
3. Proper register entry is made.
4. Taking two photocopies of each bill of exchange commercial invoice and
bill of lading or AWB (Air Way Bill).
5. Liability is booked.
6. Schedule is prepared.
7. Documents are send.

• In Vouchering:
DR: Customer’s Liability
CR: Banker’s Liability

• For KTML:
Customer’s liability A/c:01.703.0005.7
Banker’s liability A/c :5420.04-01.5

For LDBC only A/C number of the customer and banker’s liability change.

• For KTML:

DR: 01.685.0005.2
CR: 5410.0410.0

Realization of FDBC:

For simple realization:

Above step are followed.

For Advance Payments:

There will be no courier, postage charges are

involved.Foriegn currency accounts of the party will also not credited.
Liability will be lodged and reversed in the same day.

34
FCF Loan Involve:

When IBCA is received from KHI Treasury, if there is

FCF Loan involve, that IBCA is returned to KHI Treasury requesting them
to send the data for two different IBCA.One for FCF loan and for exports
proceeds.
When IBCA is received:

DR: FCF LOAN A/c

CR: H.O A/c

 FAFB (Finance against Foreign Bills):

For FAFB markup’s amount is calculated through bank

rate Sheet on quarterly basis markup is calculated. Different rates will be
applied for different quarters.

Goods are exported on two terms defined by the State Bank of Pakistan i.e.
FOB and CNF.

FORMS:
Forms that are used in exports are
E Form
M Form

“E” FORM:

These are used by exporters who give a declaration to

customers’ authorities for goods exported. This form has four parts
“original, duplicate, triplicate and quadruplicate. Triplicate part is used for
reporting to state bank of Pakistan along with the copy of commercial
invoice and B/L/AWB. Quadruplicate part is used by exporter on which he
gives declaration to custom authorities for goods exported. E forms are issued
free of cost on the written request of exporters. E form is issued to the exporter
having an account with the same branch of the bank. In case the exporter
maintains his account at a branch other than the exchange dealing branch, the
request is routed through his branch.

The set of E from after completion of all formalities is then entered in the E
form issuance register and acknowledgement is obtained from the exporter or
any authorized person of the exporter. Blank E form is not issued if full and
exact details of consignment are not available. At least exporters’ name,

35
address, goods to be exported etc must be filled in the E form. After filling all
the required spaces on the E form, it is submitted to the authorized dealer for
certification purposes. The authorized dealer would scrutinize the E form and
will pay the special attention to the following points.

Exporter’s registration number is verified.

All blank spaces should be correctly filled without any overwriting.
Goods should not be exported to ban countries like Israel etc.
Banned items should not be exported.
E form should be signed by the authorized person; his
signature will be verified by the bank indicating the capacity of the
signatory. E form can only be signed by the attorney holder of the bank.
After certification on E form, all four copies are submitted by the exporter
along with shipping bill to the custom authorities for clearance of the
consignment. Three copies of E form are returned by the custom authorities
retaining the original after the endorsement of shipment on the relative
portion of the E form. The quadruplicate copies retained by the exporter,
while the duplicate and triplicate copies are submitted to the authorize dealers
along with other documents for negotiation within fourteen days from the
shipment. The bank retains the duplicate copy for its record while the
triplicate copy is send to SBP on realization of proceeds.

“M”form:
These forms are used for reporting to SBP on monthly basis. Four
types of M form are prepared for reporting:
a. Bank commission
b. Agency commission
c. FCF loan
d. Adjustment of FCF loan.
All charges are reported on this form. Different stamps are used on this form

Export proceeds realization:

This is also used for report of export proceeds to the
state bank of Pakistan.this is also prepared on monthly basis. This includes:

FDBC number.
Invoice date and value.
Shipment date.
Bill amount.
Equivalent Pak rupees.
Bank charges.
Realization date.
Month in which it is prepared.

36
Statements used for reporting:
For:
E form A1.O1
I form E2,P2
M form E4,P4
R form JO3

R form is also used for reporting to SBP.

IMPORT
In import section goods are imported on behalf of their
customers by opening a letter of credit on the request of the customer.
Exporters and importers do not trust on each other, so they involve to bank to
help them to complete their transaction of importing and exporting of goods.

Letter of credit(L/C):
A letter of credit is the written undertaking by the
importer’s bank known as the issuing bank on behalf of its customers. The
importer promising to make payment in favor of the exporter within the
prescribed time limit and against stipulated documents.

How does LC works:

The mechanics of the LC are easily understood and
separated into the following three steps.

issuance

flow of goods

flow of documents and payments

Issuance:
After the importer and exporter agree on a sale of goods,
where the payment are made by the letter of credit (LC). The importer
requests that its bank (issuing bank) issued an LC in favor of the exporter. The
issuing bank then sends the LC to the advising bank (exporter’s bank).
A request may be included for the advising bank to add its confirmation. The
advising bank is usually located in the country where the exporter does
business and may be the exporter’s bank. The advising bank verifies the LC
and sends to the exporters.

37
Flow of goods:

Upon receipt of the letter of credit the exporter used the LC

to insure that it correspond to the terms and conditions in the purchase and
sale agreement. Assuming that the exporter is in the agreement with the LC
then he arranges the shipment of the goods.

Flow of documents and Payments:

After the goods are shipped, the exporter present the

documents specified in the LC to the advising bank. Once the documents
are checked and found to comply with the LC, the advising bank forward
these documents to the issuing bank. The issuing bank examiner the
documents to insure that they comply with the LC. If the documents are3 in
order, the issuing bank obtain payment from the importer for payment already
made to the confirming/advising. Documents are delivered to the importer to
allow it to take possession of the goods.

Who can get an LC opened:

Customer maintaining a current account with the branch and you

are satisfied that the goods being imported match the customer’s line of
business.

Process of opening an LC:

Customer approaches L/C department with

L/C application form.

Performa Invoice (duly signed by the applicant & beneficiary).
I. form (signed by applicant).
Insurance Policy (110% of LC value).

Customer, s group statement is taken using UNI BANK System.

A stamp is affixed on the statement.

Customer’s group statement is sent to the credit dept. which gets its
approval.
Approval from International Division is obtained. International Division may
authorize a different advising bank that what was requested by the applicant.
Int.Division is requested for its approval and following is also sought.
L/C advising bank.
Reimbursing bank.

38
Request is faxed to the International Division.
L/C particulars are entered in L/C opening register in the following manner:
Date
L/C #
Name & Address of the opener.
Name & Address of the beneficiary.
Amount of L/C in FC.
Equiv. Pak Rs.
Expiry date.
Name & address of the Advising bank.
Shipment date
Particulars.
Initial.
Date at which documents are received and liability reversed.
Remarks.
9. L/C message is prepared on an excel sheet and is signed by two
attorney holders and a round stamp is affixed on it before TEST is
applied on it by the TEST Key Holders in the bank.
10. It is faxed to the Swift Centre which prepares SWIFT messages
on Mt 700 and transmitted the L/C.
11. Copy of the transmitted message is sent back to the branch.
12. In Vouchering
DR: Customer account
CR: Commission on L/C
CR: Postage charges.
CR: SWIFT charges.

Commission is different on different amounts but Postage charges are Rs.300

flat and SWIFT charges are Rs.1600 flat.
13. For every L/C a separate L/C file is opened for following documents.
L/C application
I. form
Performa invoice
L/C check list.
Approval from International division.
L/C message to be transmitted to SWIFT Centre.
14. On the basis of the approval form the International Division
Reimbursing. Authorization is sent to the reimbursing bank using
MT 740 as application.
15. Documents are received in two mails.
16. After the first mail received, documents are scrutinized according
to a Scrutiny sheet in order to make sure that L/C terms and
conditions are met.

39
17. Payment is made on behalf of the customer to the advising bank
and latter that amount is collected from the importer by the bank.

Types of L/C:
Sight
Usance

If payment is to be made at the time that document are presented, this is

referred to as a site of L/C.If payment is to be made at a future fixed time from
the presentation of documents, this referred to as Usance L/C.

WEEK # 3
CREDITS DEPARTMENT
Officer in Charge: Ms Nadia Khatoon
Supervisor: Mr.sajid

There was a lot of work in credits department. Reason being every borrower
had to pay monthly installments of the loans since ACBL has hundreds of
borrowers. These include borrowers of both, small and heavy amount loans.
My job was to help Sir Sajid in updating Personal Finance (PF) files and
records. ACBL has an information system which keeps a record of not only
loans taken by businesses and consumers and their payments but also day to
day transactions whether they are of General Banking, Foreign Currency,
Credits or Accounts. Each employee has its own ID, branch code and
password. Internees are not authorized to use that information system because
they don’t have ID as they are internees not employees. During the first four
days my job was to sit with Sir Sajid and dictate name of borrower, amount of
loan, personal account number, loan account number, number and amount of
loan installments and disbursement date (date at which loan is given to
borrower) from a huge file that contained PF Due Date Diaries and his job was

40
to check whether the payments have been credited to
customer’s account at a specified date. If the payments have
been credited to customer’s account, then again my job was
to enter the month, date of installment, initials and remarks.
If no then my duty was to flag that person’s record. Flagging
the record means to attach a pink colored piece of paper, this
shows that there is some problem. When this checking job is over then these
flagged records are included in exception report. In addition, there was a
Loan Amortization Schedule attached with each PF Due Date Diary, which
contained the month, principal amount, interest and some other calculations.
Some of the entries were to be made manually and some were automatic.
Meaning to say in the manual entries, each debit and credit entry is to be made
by the person itself. The person first checks whether the payment is made by
the borrower then the installment amount is debited to its account where as
interest is credited. Interest is calculated by subtracting the loan installment
amount with the principal, which is in the amortization schedule. The interest
was already present in that schedule but to counter check, this calculation was
done. Where as, in automatic entries (also called auto) the
debit and credit entries are made automatically by the system,
the only thing is to check the borrower’s account if the
installment has been paid then the entry is to be made.

There are two differences between entries of manual records

and automatic records. First difference is the ‘initials’ column.
In manual entry the person has to sign in initials column
where as in automatic entry, word ‘auto’ is written. The word
auto shows that the entry is an automatic entry and the
signatures identify the person who has updated the record.
Secondly, in manual entries a document number is written in ‘Remarks’
column. Document number is a computer-generated number, which gives a
number to a transaction, in case there is a problem or inquiry, the transaction
is consulted with that document number. In automatic entries, nothing is
written in that column. Regardless of records being manual or automatic if
loan installment for July 2006 is last one then on its due date diary two
parallel lines are drawn and word ‘ADJUSTED’ is written between them and
then that page, having a particular file number, is taken out of file.

On first day, I with Sir Sajid checked and cleared the manual entries. It took
about five hours to complete this job since there were approximately five
hundred accounts to be checked and entries to be made. I was dictating the
above mentioned data as well as calculating the interest and was checking
whether the amount is correct and if there are any significant differences
between the calculated amount and amount mentioned in Amortization

41
schedule. After each calculation, I made entries in PF Due Date Diaries. While
doing the entries only job Sir Rashid did was his signature in initials column.

The next two days, we updated automatic records. Since, they were thrice in
amount as manual records so they took two days to be updated and their
entries to be madeOn fourth day, the exception report was prepared. This
report contains the name of those borrowers who have not paid their loan
installments whether recent or previous. The report (prepared monthly)
includes name of borrower, amount of loan, personal account number, loan
account number, loan disbursement date, total number of installments, number
of installments due and their amount. Flagged records were once again
checked whether their payment has arrived. If yes then flag was removed and
entry made. If no, then the name was included in exception report. When the
report is completed Officer in Charge Credits and Manager signs the report
which then goes to Head Office where the concerned people take action. In
preparing this report, my job was to give Sir Sajid all the relevant information
that was to be entered. This report took one day to be prepared.
Other three days were spent in filing PF records. PF due date diaries are
arranged according to file numbers. Many borrowers had their last installment
in the month of July whereas loans were given to new borrowers. This
disturbed the file numbers as the adjusted page was taken out of file. Loan
adjustment of present borrowers and giving loans to new borrowers created a
need to fill those empty file numbers and enter them in PF record after being
processed by RBG. This process is called loan disbursement.
The records of all the borrowers are kept in separate files, called personal
files, along with the necessary documents including the amortization schedule.
At ACBL, there is no manual calculation for Loan Amortization Schedule.
There is an information system, which does all the
calculations. There is just a need to give input and all the
calculation is done.
Filing of PF records or in other words loan disbursement
starts with the identification of adjusted file numbers. All
the missing and adjusted file numbers are written on a piece
of paper. Some new file numbers were also identified. On a
blank page of Personal Finance Due Date Diary the file
number, name of borrower, amount of loan, personal
account number, loan account number, total number of
installments, amount of installment, disbursement date and application number
is written. All this information is gathered from a file called personal file. The
second step is to take out Amortization Schedule from the file, write down the
name of borrower, personal and loan account number and disbursement date
along with two other account numbers; which are written on the front page of
file; on the schedule and then get it photocopied. The original copy goes back

42
in personal file while photocopied schedule is stapled with its due date diary.
At a first glance, this process seems to be easy. It is easy but time consuming
and tiring, as there were nearly hundred empty file numbers to file and it took
me approximately three days to complete this job. The main achievement for
me while doing this job is that I did it all by my own self, completed it before
deadline, no body helped me, and at all these points, staff at Credits
department was very happy with me. Staff at Credits department awarded me
with lots of appreciation and prayers. The day at which I completed the job
was my last day in credits.
Checking of manual and automatic PF due date diaries, doing their entries,
preparing exception report and filing empty file numbers were my
specific/leading contributions.

43
 WEEK # 4 AND 5
GENERAL BANKING
Officer in Charge: Mr. Zaheer
Supervisors:
• Mr. Ehtehsham and Ms Asma(account opening)
Mr. Bilal,Mr. Shahid, Mr.Daud (clearing)
Mr. Imran(ATM pins issuance)
Ms Zakia(chequebook issuance)

Departments in General banking are:

• Account Opening (including cheque book issuance)
• Cash department
• Clearing
• On line banking
• ATM Pins issuance

In General banking I was rotated in Account opening and Clearing

department. I also issued ATM pins willingly during my period in General
banking. I spent first three days in each department.
CLEARING
The clearing department consists of OBC, LBC and IBC. My job was to
prepare Inter Branch Credit Advices (IBCAs) both for Rawalpindi/Islamabad
and for areas outside them, do OBC, IBC, LBC entries in their respective
registers, and stamp the cheques.
IBC means ‘inward bills for collection’. When an account holder of ACBL
Main Branch makes a cheque payment to a person who has an account in
other bank, that bank presents the cheque to ACBL for payment. The cheque
then becomes IBC for ACBL as other bank presents it for payment. It is called
IBC because the bill (cheque) comes in the bank premises for
clearing/payment.
OBC means ‘outward bills for collection’. When an account holder of ACBL
presents a cheque of other bank along with the deposit slip, ACBL presents it
in that bank for payment. This cheque is OBC for ACBL because it presents
the cheque to other bank. If the cheque is OK, that bank credits ACBL Head
Office account, on realization ACBL branch debits Head Office Branch and
credits account holder’s account.
The cheques presented in OBC/IBC for collection can be of
other bank and can be of any other branch of ACBL.

44
LBC stands for ‘local bills for collection’. It is same as OBC. The only
difference is that OBC is for presentation of cheques outside
Rawalpindi/Islamabad area. LBC is for cheque clearing within
Rawalpindi/Islamabad. It is free of charge. OBC is for presentation and
payment of cheques outside Rawalpindi and Islamabad. The bank debits
courier charges from customer’s account.
Before the entries of IBC, OBC and LBC are made in their respective
journals, the cheques representing them are stamped. IBC cheques are
stamped with ACBL crossing and clearing stamp at the front. At the back, it is
stamped with a stamp showing that ‘payees account will be payees account
will be credited on realization’. The crossing stamp shows that the cheque is
property of ACBL Main Branch. Clearing stamp shows that the cheque has
been presented for clearing. OBC and LBC cheques are stamped with a
crossing and a stamp having a blank space for OBC/LBC number (which is
seen from register) at the front and at the back there is a stamp showing that
‘payees account will be payees account will be credited on realization’.

After stamping the cheques their entries are made in their respective journals.
OBC and LBC numbers, name of bank, the amount of collection, cheque
number (if it is a pay order then ‘Pay order” is written, date on which the
cheque was received and the date when payees account is credited, name of
payee account number of payer and payee are entered in OBC and LBC
journals respectively. In IBC register, name of payer and payee, cheque
number, account number of payer, name of bank that ACBL in this case,
IBCA number and date of payment are entered.

Inter Branch Credit Advices are white and blue colored slips which are sent to
ACBL branches in Rawalpindi/Islamabad telling that cheque of respective
branch is paid and the amount is listed both in figures and words. They have a
number at the top that is called IBCA number. It is different from IBC number
but is entered in IBC register. Authorized persons sign the slip, head office
account number of ACBL Main Branch is written and original cheques are
attached. Credit advices of ACBL branches other than Rawalpindi/Islamabad
are white in color.

Another job that I did in clearing but not mentioned above was to attach
dishonored cheques with a special white colored slip, which had a blank space
for dishonored cheque number, and various reasons why cheque was
dishonored in MCQ form. I was supposed to write the dishonored cheque
number on that slip, attach original cheque and get the cheque along with the
slip photocopied. I was also supposed to cheque amount in words and figures.

45
ACCOUNT OPENING

In account opening, I was supposed to help the customers

in filling account-opening forms. Besides the table of
person dealing in account opening, first I was supposed to
make sets of account opening forms. Sets are made by
attaching the account opening form, chequebooks
requisition and specimen signature card then arrange these
forms on side table along with application forms for Debit
card, give the form to customers when they ask and help
them fill the form. Specimen signature card is a yellow colored card that
verifies signatures when a cheque is cashed or when a chequebooks
requisition is given. I also took customer calls when Sir Ehtesham was not on
his seat. Different people come and ask for their account statements. He used
to give printing command on computer and I was supposed to bring the
printed statement and it over to the customer. For an important client it was
supposed to be in an envelope. The reason for my bringing the statement and
handing over to the customer was to observe the difference between customer
handling of ordinary and important clients. In a day there used to be at least
fifty statements. I was also supposed to get the heavy amount cheques verified
by Manager Operations.

ATM PINS ISSUANCE

ATM cards have a pin number given by the Head Office, which is entered in
ATM. The ATM then asks for a new pin number. Customer enters pin number
of his/her own choice twice, which becomes his/her new pin number and
he/she has access to ATM usage. The pin given by Head Office is enclosed in
green and black colored envelope that I was supposed to issue to customers.
The envelopes have a series of numbers. These numbers are card numbers that
are arranged in series. The customer shows his/her ATM card that has the
account number, title of account and ATM card number. The envelope
corresponding to that card number is given. At the same time, their entry is
made in a register and the customer signs it. Date on which ATM pin was
issued, account number, card number and name of person are entered followed
by the signature. Before customer
timings, I used to arrange the pins according their series and kept them back
after customer timings. I did this job simultaneously with account opening as

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well as chequebook issuance.

CHEQUE BOOK ISSUANCE

Chequebook issuance was done during fifth week only. Customers give their
chequebook requisition to Sir Ehtesham. He verifies the signature from
computer signs it and gives the requisition to Sir Aqeel. Minimum number of
leaves in a chequebook is 10 and maximum is 100. On the requisition account
number, title of account and numbers of leaves required in a chequebook are
specified. Chequebooks normally have 10, 25 .50 and 100 leaves. Each type of
cheque has its own register. Chequebooks also have their own series that have
starting and ending numbers. Those series numbers along with account
number, title of account and number of leaves are entered in their respective
registers. Account number and title of account are written on cover of
chequebook. Numbers of account number stamp are adjusted according to
mentioned account number and bottom of each cheque is stamped. In General
banking, this is the most sensitive job. A single mistake can
cause a person to lose its job.

WEEK # 6
TELEPHONE EXCHANGE
Telephone Operator and Supervisor: Ms. Anjum

Last week of internship was spent in telephone exchange taking customer

calls, sending faxes to other ACBL branches through computer with a
program called i-fax (short name for Internet Fax), scanning specimen
signature cards, entering outgoing calls, incoming and outgoing faxes in their
respective registers and printing faxes and rate sheets.

I used to take customer calls when operator used to be busy or not on seat. Ms.
Anjum used to send faxes through fax machine where as I used to send them
through i-fax. Sending faxes through i-fax first needed scanning of message
then specification of e-mail address of destination branch, which consists of
branch code with alphabetical letter ‘b’ in beginning, then clicking the ‘Send’
command. I also scanned specimen signature card (mentioned in account
opening) and save them in computer system. There used to be about hundred
cards for scanning each day. I used to enter all outgoing calls with the
telephone number, incoming and outgoing faxes with their subjects,
destination and source branches in their respective registers. Daily during last
week, I used to connect ACBL’s computer system with Paknet (ISP). I was

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also supposed to keep track of mail from Treasury Division, print three copies
of foreign currency rate sheets ‘A’ and ‘B’ and give them to FC department.

Although the above-mentioned jobs seem to be very easy, every one can do
them but they are my leading contributions.

FOREIGN CURRENCY DEPARTMENT

Supervisors:
• Ms Alia Janjua
• Mr. Naeem.
• Mr. Adnan.

There was no specific week that was spent in FC department. Last two days of
week # 4 (fulltime) and whenever I was free regardless of the department
working, I used to see how FC works. I made FBC cheques entries in FBC
register. This process is called FBC lodging. FBC stands for ‘foreign bills for
collection’. This is same as IBC, OBC with the difference that the cheques are
send abroad through a bank called ‘American express’ and amount is in FC.
The cheque was stamped at front with ACBL Main Branch crossing and a
stamp having blank space for FBC number. At the back it was
stamped with stamp showing that payees account will be
credited on realization The only difference between entries of
LBC and FBC is that the FC amount is converted to Pakistani
Rupees and rounded off to nearest thousand and this rupee
amount is written and there is no room for mistake. I sorted
different reports according to their category and date. This
sorting took me two days and this report sorting is my major
contribution in FC department.

PHOTOCOPY
This is the only job that I did regardless of the department worked. The
photocopied items included national identity cards, student identity cards,
cheques, letters, defense saving certificates and profit coupons.

SWOT ANALYSIS OF ASKARI COMMERCIAL BANK

LTD

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 STRENGTHS:
 In Askari Bank I observe that there is a great co operation among all the
employees.

 Working Environment of all of the departments is very friendly.

 There is sharing of responsibility regarding work.

 Employee works as a team and coordination among the employees is
excellent.

 Employees are fully devoted towards their work.

 Employees of all of the departments are highly qualified and fulfill all the
job requirements.

 They maintain proper files, which helps them in case of different sort of
inquiries, regarding any document.
WEAKNESSES:
 Spacing Problem is very crucial here in Askari Bank.There is lake of
space in Accounts department according to the Employees.

 Designation of the employees is not properly mentioned which creates

a lot of confusion for customers as well as for the other employees of
the bank.

 There is lack of equipment according to the requirements of the

department like there are only four PC’s in Foreign Trade, but
the number of the employees in this department is seven. So
they have to wait for a long time for postings.

Beside the System of UNI BANK, they have to maintain proper files
and records which involve a lot of time consumption.

 Name of the department is not mentioned any where which

create problems for the new customers and ultimately frustrate
the customer.

 A lot of documentation creates overburden on employees which

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 sometimes irritate them.

 There is not any proper procedure for the Job Rotation foe the MTO’s
(Management Training Officers).

 There is not any specific Job Description of employees which

ultimately confused the employees regarding their Job responsibilities.

 Too much noise that makes the employees irritates and they
lost their concentration in the work.
 There should be separate washrooms for Ladies and Gents.
 Some employees think of internees as servents
IMPROVEMENTS:
 There should be proper spacing according to the number of
employees.

 Proper designation of the employees should be rightly

mentioned on each employee’s desk.

 There should be a separate place for the department.

 Name of the department should also be mentioned on a proper board.

 Number of the PC’s should also be increased. So that employees can

perform their duties properly.

 Filling of documents should be reduced and it can be reduced due to

proper reporting on the UNIBANK System. It is not an easy job to
maintain a lot of documents on file.

 Employees should show a positive attitude towards internees. And they

should guide them properly and should deliver as much knowledge as
they can.

BRANCH MANAGER SHER AFGHAN:

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