Bouquet of Acknowledgement

Beginning with many praises to ALLAH SUBHAAN-HO-WATALAH who enabled us

to commence the proceedings of the divine duty of man kind as his PROPHET
(S.A.A.W) says “seek knowledge from cradle to grave.” Secondly we are highly thankful
to our beloved parents and teachers especially Mr. Asif Rasool for his unforgetable,
remarkable, pure, professional and spiritual guidance. We hereby also acknowledge the
cooperation, wide heartedness, tolerance and hospitability of The Spanish Department of
National University Of Modern Languages, Islamabad.
Executive Summary
We started our TAM project journey with a little bit embarrassment of the non co-
operative attitude of Warrick pharmaceutical staff but we were energetic motivated and
curious about the organizational management system. Hence we stood up side by side
hands and together and became a surmountable wall and crossed all the barriers of our
way.
We were not new to visit the Islamic banking branches as the adventurous voyage
towards the beacon of success started since the month of January that is we join our mind
and hearts together to search out the growth of Islamic banking system in Islamic
republic of Pakistan.
About this project
This project is related to the subject TQM (total quality management). Our teacher Mr.
Qamar assigned us a class assignment that turned into an excellent team workout.
Actually in this project we had to visit any of the two organizations dealing in the same
business that is offering similar services or manufacturing similar products. We were
supposed to take an in video interview from any of the managers of both organizations to
analyze how do they manage the overall quality and standard of their organization. Hence
we visited Askari bank Islamic branch and MCB Islamic branch located at Jinnah
Avenue Islamabad.
Total quality management is an enhancement to the traditional way of doing business it is
a proven technique to guarantee survival in the world class competition. The entire
culture and actions of the organizations can be transformed just by changing the action of
management.
Therefore, it is the art of managing the whole to achieve excellence TQM is defined as
both a philosophy and set of guiding principles that represents the foundation of
continuously improving organization. It is the application quantitative manners and
human resources to improve all the processes with in the organization and exceed
customer needs now and in the future.

The Askari Bank

Mission
“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
all our stake-holders, and contributing to society.”

Corporate Information

Lt. Gen. Javed Zia (HIM) Chairman

Lt. Gen (R) Imtiaz Hussain Chairman Executive Committee
Mr. Kashif Mateen Ansari Director
Mr. Zafar Alam Khan Sumbal Director
Dr. Bashir Ahmad Khan Director
Mr. Shahid Mahmud Director
Mr. Muhammad Riyazul Haque Director
Mr. Ali Noormahomed Rattansey Director
Mr. Tariq lqbal Khan Director (NIT Nominee)
Mr. Muhammad Rafiquddin Mehkari President & Chief Executive
 Mr. Saleem Anwar Company Secretary
Audit Committee
Dr. Bashir Ahmad Khan Chairman
Mr. Ali Noormahomed Rattansey Member
Mr. Zafar Alam Khan Sumbal Member
Auditors
A.F.Ferguson & Co. Chartered Accountants
Rizvi, Isa, Afridi & Angell
Registered Office /Head Office
AWT Plaza, The Mall, Rawalpindi

Islamic Banking Services

Islamic Banking was launched under the brand 'Askari Islamic Banking', by opening 6
dedicated Islamic Banking branches in major cities of the country. Further expansion is
planned with improved capabilities for offering products conforming to the Shariah
principles.

Askari Islamic Banking opens the doors for Halal banking solutions. Our objective is to
put in place an efficient banking system suuportive to economic justice and welfare of
society in line with Shariah standards.

A comprehensive range of Islamic Banking products and services is bieng offered, in

order to meet customer's demand of Shariah Compliant Banking, in the following areas:

• Islamic Corporate Banking

• Islamic Investment Banking
• Islamic Trade Finance
• Islamic General Banking
• Islamic Consumer Banking

Islamic Banking products have been approved by the Bank's Shariah Advisor. As per
Shariah requirements, funds and products of Islamic Banking are managed seperately
from the Conventional Banking side. All funds obtained, invested and shared in Halal
modes & investments, under supervision of the Shariah Advisor.

Islamic branches

There are 20 Islamic branches of Askari Islamic bank all over the country.
Askari Islamic banking operates its business on two basic portfolios

• Assets
• Liabilities
Assets
Branches of askari Islamic bank dealing with assets e.g. property and auto mobiles
analyze to safe guard the deposit of depositor, where and how the bank should invest and
where to bring more and more profit from by using the tools like Ijarah and Musharakah
similarly the consumer and corporate departments analyze and deal with heavy
investments e.g. investments of a company on machinery or production plants.
Liabilities
At liabilities side the bank approaches individuals, small medium enterprise, government
servants, offer services and products to bring maximum deposits to the bank especially
the bank has got an edge dealing with individuals in terms of selling, buying and renting
the property in Islamabad e.g. DHA housing schemes.
Mode of business of Askari Islamic Banking
Askari Islamic banking deals in the products like diminishing Musharakah.
Requirements
The basic requirement to create Musharakah is that financing from both parties that is
client and the bank should be received and added while financing in a project or
agreement.
The second requirement is to define the profit sharing ratio at the time of agreement.
Both the parties define the ratio of capital as well like 50-50% or 30-70% etc. especially
in the housing products. For insurance the Takaful Pakistan is involved in the agreement.
Bank doesn’t have any concern with the value of property or clients deal but it takes its
own value especially when a customer approaches the bank in order to buy or sale the
property. In fact the bank contacts real estate expert known as evaluator who tells:-
• The estimated market price (to buy)
• The for sale value (to sell out) of the property in which the client is interested for
purchase rental or sale. Then the bank takes the sale out value and bring forth the
financing on the basis of that value. Hence, main concern of bank is the for sale
 value. Then Takaful is created on that value that is insurance. e.g. if there is a
share of the bank and the property of worth 10million and the clients demands
financing of 5million from the bank 5million will become the share of bank and
Takaful is created on that 5million. Hence, insurance rate is charged on bank
shares.
Basic concept of Total Quality Management
TQM requires six basic concepts
• A committed and involved management to provide long term top to bottom
organizational support.
• An unwavering focus on the customer, both internally an externally.
• Effective involvement and utilization of entire workforce.
• Continuous improvement of the business production and services.
• Treating suppliers as partners.
• Established performance measures for the processes.
These concepts outline and excellent way to run an organization.
Concept of Quality at Askari Bank and Quality Management
The quality statement of Askari bank is “to provide quality services to the quality
customers”
Hence, Askari Islamic banking system pays due attention towards the management of
quality of its services and value able products to earn maximum profit by providing the
customers with the quality products and offering standard services.
In this regard the bank has to manage the quality of services as well as the quality of
customers therefore, the three important tools of Askari Bank’s quality policies are
• Attracting quality customers.
• Annual audit.
• Recovery.
• Repayments from clients.
For TQM purpose Askari bank has a separate department responsible for maintenance
and management of standard and quality. Following are a few modes and requirements
for the quality management of askari Islamic bank.
Services Quality Management
Visit of property for sale
The criteria of property for sale like houses or buildings standard and quality is very strict
at the bank.
When the bank receives information about any plot or constructed house from evaluator
about its area, condition and price located at different housing schemes e.g. margalla
housing scheme, bahria town and DHA etc. the special inspection team of bank visits the
property and prepare a branch visit report before selling and handing it over to the
customer under diminishing Musharakah. The team also analyze the original market price
through other real estate agents.
Legal proceedings
The bank then proceed for the legal actions. Lawyers at the bank panel analyze the title
document of the property to see weather
• The plot is register on CDA documents or registrar.
• If there is any claim against that property.
• The lawyers then approves documents and issues the original seen reports on his
official letter head about clearance of all the legal issues and that mortgage or
financial sale or deal can be conducted or created for this property. Hence, the
bank creates the feasible agreements on the property with the customer such as
token register mortgage or equitable mortgage etc.
Customer Quality Management
This is the most sensitive issue and requires the minute analyses of customer’s financial
position and his social status. The most important tool to analyze the customer’s position
is CIB report. Its mean credit information bureau report to check the dead burden ratio
which shouldn’t increase then 45%.
When ever a customer approaches the bank to buy property or auto mobiles the manager
gathers information about his requirement and net income and make judgment about his
financial position whether he is a business men or a government servant just like it he
demands a house costing sixty to seventy million in F-8 sector the manager makes up
mind about the first installment e.g. 400,00 monthly then he inquires the clients source of
payment according to the manager the client must have monthly income or reserves two
time the first installment e.g. for an installment of 100,000 his income should be more
than 200,000. every officer here has different criteria of inquiring the client and client
quality management similarly, for car Ijarah security deposits, rental and installment and
down payments the net income of client is inquired then it is verified whether the person
owns his own house or is living on rents, his dependence, school going children and over
all unavoidable expenses and other finance payments to be deducted from his salary and
remaining part left to pay the car rental are analyzed and estimated properly.
In addition to this PTCL land line must be connected to the residence of the client to trace
the customer, verification and recoveries the client must possess Pakistan nationality
having new computerized ID card and should be able to produce original documents like
birth certificate, qualification certificates, residential authorities business legal documents
etc. At the time of agreement.
Employee Standard Management
Askari banks hires the high qualified, competent and energetic employees passing MTS
test. Market conditions affect the bank business due to recession period in banking sector
askari management has restricted its policy and started downsizing on large scale in fact
employees are hired according to market operations, earnings and keeping the income of
bank in consideration by the end of fiscal year of the bank due to unique nature of
banking and less diversified portfolio of askari Islamic banking, quality of operations is
to be managed strictly because there isn’t any concept of interest and accumulation of
wealth.
Conflict management
Conflict mostly arises between the employees during high rush hours in the branches
dealing a great number of customers. However the over all management and staff is very
co-operative in caring. The senior management officers often resolve the conflicts at its
embryonic stage.
Employee valuing
The senior managers at askari bank Ltd. Arrange dinners with the newly appointed
employees at good reputed hotels and restaurants and try to make them frank with each
other. This promotes productivity and motivation. In addition to this a dinner at head
office is arranged for the employees, middle and first line managers once in September
and once in the month of June every income year. The environment of all the branches of
Askari bank Ltd is very friendly and free of hierarchical discrimination so that managers
from first line or middle management can directly visit the top line managers and
exchange their views freely and get guidance from them.
Employee Training at Askari Bank
At askari bank there is a complete setup of training of employees even for 3-3 months.
The staff office located at Peshawar road Rawalpindi conducts training. Every branch
manager is informed about the training programmed via e-mail and is restricted to send
every employee for the training of minimum 3 to 5 days. Every employee is obliged to be
sent for 3 to 5 days training at the end of each income year. The training is operated by
the head office of Askari bank. There are 15 pre-leaves for every employee. The newly
hired employees at Askari bank ltd are trained in different cities and appointed at various
branches for a specific period in order to get training, expertise and gaining the
experience of sales, customer attraction and management. When they become skillful
enough they are posted to concerning branches and departments.
Employee and customer feed back
In consumer banking while meeting with the consumer head the managers personally
give feed back and discuss the problems to be faced by clients because of technological,
environmental, behavioral miss-management or lack of awareness etc. they can also give
fruitful suggestions to bring innovation and to remove the flaws from the banking system.
In written form there is no system of getting feed back by either employees and
customers at askari bank limited. However, customers can approach the management by
dropping their written complaints and requests in the drop box. During the period of audit
of branches every employee is called for complaints or problems. In consumer banking
there is no concept of customer feed back.
Customer valuing
The higher management is arrange a dinner especially Aftar dinner during the holly
month of Ramazan for the clients having huge deposits at Askari bank and enquire about
their problems, future investments and also inform them about the future strategies of
creating financing opportunities.
Management styles at Askari bank ltd.
Unlike the name there is no concept of autocracy like military system of management in
fact the environment is democratic. In consumer banking the government employees or
salaries clients are given priorities due to security of their deposit and banks investment.
Major customer range of askari bank comprises upon the employees of strategic
departments or defense departments e.g. NDC (national defense complex), PAEC
(Pakistan atomic energy commission) and KRL (Kahota research laboratories). The
manager says “the services vary from customer to customer”. That’s why the manager
focuses upon customer needs, wants and demands, market competition, customer care
and standard of services before planning to invest. All policies and decisions are taken at
Askari bank viewing the business and the clients financial positions. The manager at
Islamic banking branch of Askari bank ltd. convince and guide the client personally but
not to sales executives. In addition to this the managers at every branch and their sub-
ordinates give due protocol to their especial customers having well known social,
educational and professional status.
Biggest steps towards TQM
Investment or financing of black money in any of the Askari bank’s schemes or its
deposition in any of bank account is highly prohibited and discouraged. It never offers
accounts to the politicians for this purpose they have developed a program known as
AML (anti money laundering) by which the technical experts of accountancy analyze the
nature of money and invest about the legality of sources through which it is earned.
Customer care
Askari Islamic bank ltd has designed customer friendly policy keeping the benefits given
to customer by conventional and other Islamic bank against the similar products. The
Islamic branches of askari bank always encourage and entertain the customers
approaching the bank them selves for the first time, how ever, since this the age of
globalization that demands facilities and services at door step. Therefore the sales and
marketing staff also target, attract and persuade the people going door to door.
Joke!!!
 However, unlike MCB we found flies in the branch of Askari bank. TQM of
Askari Bank seemed to be failing at killing or at least trapping the pests.

MCB Bank
OUR VISION & MISSION
Vision Statement
Challenging and Changing the Way you Bank.
Mission Statement
MCB Bank’s team of committed professionals is dedicated to maintaining long term
customer relationships through outstanding service and convenience.
Introduction
MCB is one of the leading banks of Pakistan with a deposit base of about Rs. 280 billion
and total assets of around Rs.300 billion. Incorporated in 1947, MCB soon earned the
reputation of a solid and conservative financial institution managed by expatriate
executives. In 1974, MCB was nationalized along with all other private sector banks.
The Bank has a customer base of approximately 4 million and a nationwide distribution
network of 1,026 branches, including 8 Islamic banking branches, and over 300 ATMs,
in a market with a population of 60 million. During the last fifteen years, the Bank has
concentrated on growth through improving service quality, investment in technology and
people, utilizing its extensive branch network, developing a large and stable deposit base.
MCB; Muslim Commercial Bank being one of the oldest bank came into
existence right after a few years of independence of Pakistan a separate abode of Muslims
of South Asia is known as a Titanic of the Fleet of Pakistani Banks. Its one of the leading
National Bank having diversity of branches, huge National Capital reserves, unlimited
products and services, nationally qualified and trained staff, well equipped, lavishly
decorated, spacious, tasteful furnished huge buildings and enormous number of clients is
the proud core competence of MCB.
 MCB has now become MCB Limited since it has started operating its branches in
foreign countries. MAY in a Malaysian Bank is the partner in 20% business of MCB.
Unlike the newly emerged foreign or local banks operating in Pakistan MCB’s operations
aren’t subjected to rush on. Infact MCB doesn’t compromise on quality and doesn’t want
to speed up the business process keeping customer at risk. Hence customer care through
slow but steady process is being adopted at MCB limited.
• The employees of MCB are free of burden to exercise best of their knowledge and
expertise to provide valuable services to the customers.
• Working environment of MCB Ltd. Is friendly and promotes organizational
learning.
• MCB has organized a separate Branches and departments to maintain and ensure
the quality of business operations in every branch all over the country over 1000
quality experts are working in those departments.
Values of MCB
Trust
We are the trustees of public funds and serve with integrity & commitment. Ethical
behavior is of critical importance to us. We adopt full compliance with internal and
external policies and procedures, operating within the legal framework.
Customer Focus
We continuously seek to exceed our customer’s expectations, forging and maintaining
long term relationships
Innovation
We strive to be the market leaders in innovative products and services offering
customized financial solutions with flawless execution.
Teamwork
The diversity of our people is our strength. We inspire and challenge each other –
working together to achieve synergy.
Achievement
Our people are our most valuable asset. We are committed to a result oriented culture.
Our goals are clear and merit is the only criterion for reward.
Social Responsibility
As responsible citizens we contribute to the social welfare of the community we live in.

Corporate Information
Board of Directors
Mian Mohammad Mansha Chairman
S.M.Muneer Vice Chairman
Tariq Rafi Member
Shahzad Saleem Member
Sarmad Amin Member
Dr. Muhammad Yaqub Member
Mian Raza Mansha Member
Dato' Mohammad Hussein Member
Aftab Ahmad Khan Member
Atif Bajwa President / CEO
Audit Committee
Tariq Rafi Chairman
Dr. Muhammad Yaqub Member
Mian Raza Mansha Member
Dato' Mohammad Hussein Member
Aftab Ahmad Khan Member
Human Resources Committee
Mian Mohammad Mansha Chairman
Dr. Muhammad Yaqub Member
Mian Raza Mansha Member
Shahzad Saleemn Member
President Member
Risk Management & Portfolio Review Committee
Shahzad Saleem Chairman
Tariq Rafi Member
Sarmad Amin Member
Mian Raza Mansha Member
Aftab Ahmad Khan Member

Committee on Physical Planning, IT System & Contingency Arrangements

Sarmad Amin Chairman

S. M. Muneer Member
Mian Raza Mansha Member
President Member
Business Strategy & Development Committee

Mian Mohammad Mansha Chairman

S. M. Muneer Member
Shahzad Saleem Member
Mian Raza Mansha Member
Dr. Muhammad Yaqub Member
Dato' Mohammad Hussein Member
President Member

Chief Financial Officer

Ali Munir

Principal Office

MCB 15 Main Gulberg, Lahore

Shariah Advisor

Dr. Muhammad Zubair Usmani, working as Sharia Advisor in our bank since July 2000
is a prominent scholar having Ph.D. degree in Islamic Finance as well as Fazil Takhassus
from Jamia Darul Uloom Karachi, (i.e. specialist of Islamic Fiqh and Fatawa). He has
attended and addressed several international and local seminars / conferences as guest
speaker in Pakistan as well as abroad. He has also worked as Research Scholar and
member of various forums and committees formed for promoting the cause of Islamic
Banking in Pakistan and abroad. All products are approved by our Sharia Advisor Dr.
Muhammad Zubair Usmani and these are further approved and vetted by Dar ul Ifta,
Jamia Dar ul Uloom Korangi Karachi. Majority of the products are signed by Maulana
Muhammad Taqi Usmani.

Legal Advisor

M/s Mohsin Tayebaly & Co., Advocates & Legal Consultants, has vetted all
documentation. The Co. for this purpose not only have expertise in legal and corporate
affairs but also have competent lawyers possessing knowledge of Sharia.

Customers feed back

• Customers care in one of the tools of core competence of MCB hence there is a
strong setup of customer suggestions and feed back.
 • Customers can complaint about any of the employees, supervisors or manager in
written form on complaint hand bills which is kept confidential.
• Clients can also complaint against the technological setup to facilitate them e.g.
ATM machines etc.
• MCB also compensate the clients in case of products and services e.g. if any of
the accessories of an automobile rented on lease to the client is subjected to
malfunctioning with in the warranty period the bank would take responsibility to
repair or replace it.

Employee feed back in MCB

• Any employee of MCB can write a confidential complaint report against his
peers, subordinates or managers for any kind of misbehave or conflict.
• A speedy sever action is taken by the management against the person responsible
for the misconduct.

Learning at MCB
• In MCB Ltd. There is a unique setup of organizational learning and operational
and professional coaching. The training programmes are operated and governed
by head quarter at Karachi under the supervision of experts and senior bankers of
MCB.
• Actually the employees learn with fun.

Joke!!!
The operational manager told us that after spending even five years at MCB and
attending a lot of workshops he still doesn’t understand the concept of total quality
management.

However according to him training workshops, seminars, and conferences are refreshers
for all the employees and trainings and learning schemes at different cities provide them a
platform to have introduction with employees with different branches of the same city or
from different cities of the countries. Hence, it give rise to a healthy working
environment and absolutely the exchange of vies and skills among the staff and strategies
to deal with the future challenges and to remove the flaws from the system.
That is why the pioneer Islamic banking system introduced by MCB in the country is
flourishing speedily and steadily thus, promoting a profitable environment in accordance
with Islamic Shariah.