1

EXECUTIVE SUMMARY

Askari Commercial Bank is one of the leading banks in Pakistan, which is growing
rapidly. Economy of Pakistan specially banking sector is developing with high rate,
so there are opportunities in banking sector.
That’s why I chose to do internship in Askari Commercial Bank Ltd. Peoples Colony
Branch.
During my internship I was sent to different departments including Credits, Exports,
Imports, Collection, Remittances and Accounts. It provided me good learning and I
had chance to have the exposure of how a bank undergo its functions. All in all, it
was very good learning for me, which will be helpful in my career.
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DEDICATION

I dedicate this report to my parents, specially my mother, teachers, friends and to all people
who helped me in preparing this report.
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Table of Contents

History 04
Awards and Achievements 05
Mission 06
Growth 07
Corporate Citizenship 07
Technological Innovation 08
Customer relationship 08
Employee relationship 09
Products and Services 10
Main Competitors 10
Marketing Strategy 11
Competitive Strategy 11
Departmentalization and Management of Branch 12
SWOT Analysis 17
SWOT Analysis Matrix 30
Most Critical Area 31
Strategic development 32
PEST Analysis 33
My Finding 34
Conclusion 40
Suggestions and Recommendations 40
New Knowledge Acquired 43
Problems Encountered 43
Impact of Experience on my Career 44
Organ gram 45
Bibliography 46
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HISTORY OF ASKARI COMMERCIAL BANK LTD.

Incorporated in Pakistan on October 9, 1991, Askari Bank commenced its

operations in April 1992, as a Public Limited Company, and has since expanded
into a nation-wide presence of 58 branches, supported by a network of online
ATMs. The Bank is listed on the Karachi, Lahore & Islamabad Stock Exchanges
and the initial public offering was over-subscribed 16 times. While capturing the
largest market share amongst the new banks, Askari has provided good value
to its shareholders. Our share price has remained approximately 12% higher
than the average share price of quoted banks during the last four years. Askari
Bank is principally engaged in the business of banking as defined in the
Banking Companies Ordinance, 1962. As at December 31, 2003, the Bank
had total assets of Pak Rupees 85.4 billion, with over 250,000 banking
customers. Askari Bank is the only bank with its operational Head Office in the
twin cities of Rawalpindi-Islamabad, which have relatively limited opportunities as
compared to Karachi and Lahore. This created its own challenges and
opportunities, and forced us to evolve an outward-looking strategy in terms of our
market emphasis. As a result, we developed a geographically diversified assets
base instead of a concentration and heavy reliance on business in the major
commercial centers of Karachi and Lahore, where most other banks have their
operational Head Offices.
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Awards & Achievements

Over the years, Askari Commercial Bank Limited received

several awards for the quality of banking service to individuals
and business.

ACBL have been declared “The Best Bank in Pakistan” by

Global Finance magazine for the years 2001 & 2002. Also,
have been given the “Best Consumer Internet Bank” award for
Pakistan by the same magazine for the year 2002. In 1994,
1996 and 1997, they received Euro money and Asia money
awards. Askari has an A 1 + rating for short term obligations -
the highest possible for the category, whiles the long-term
rating stands at AA. Askari Bank won the prestigious “Best
Presented Annual Accounts” awards for 2000 and 2001 from
the Institute of Chartered Accountants of Pakistan and the
Institute of Cost and Management Accountants of Pakistan, for
the services sector. For the past four years, they have
received prizes from the South Asian Federation of
Accountants for “The Best Presented Annual Accounts” for the
financial sector, in the SAARC region.

Over the years, Askari Bank has proved its strength as a leading banking sector
entity, by achieving the following firsts in Pakistani banking.

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

country-wide basis

ii) First Bank with a nation-wide ATM network

iii) First Bank to offer Internet Banking services

iv) First Bank to offer e-Commerce solutions

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Mission

To be

leading private sector bank in Pakistan

with an international presence,

delivering quality services

through innovative technology

and effective human resource management

in a modern and progressive organization

culture of meritocracy, maintaining

high ethical and professional standards,

while providing enhanced value to all our stake-holders,

and contributing to society.

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GROWTH

“THERE IS NO SIN PUNISHED MORE IMPLACABLY BY NATURE THAN

THE SIN OF RESISTANCE TO CHANGE”

We live in a moment of history where ever thing is changing so fast that we begin
to see the present only when it is already disappearing.

From a humble beginning

with just 7 branches in
1992, today they enjoy a
network of 50 outlets,
spread across the country.
These outlets are
supported by a network of
self service ATMs.
Their total assets now
exceed Rs.50.9 billion and
they have over 17
products and services to
match their customers’
individual needs. Bank’s
equity base stands at Rs.
2.58 billion with 20 growth
over the last 5 years.
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CORE VALUES

• Commitment
• Integrity
• Fairness

• Teamwork
As part of their internal communications program, these core values are
inculcated in their employees through internal memos, posters and most
importantly leading by example.

TECHNOLOGICAL INNOVATION

Technology is rapidly changing the way they think, act and do

business. It has played a pivotal role in enhancing customer
expectations, particularly with respect to speed and quality of
service.

CUSTOMER RELATIONSHIPS
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“Before Knowing their customers and
we their needs is the key to their
discover, business success. Their products
we must and services are structured to
touch and improve the quality of
lives of all segments of society.
Service quality standards are
designed and monitored to
ensure a consistent and
convenient customer experience.
Theirr client relationship
managers are well equipped and
well trained to provide most
efficient and personalized service
to each and every customer.
Their products and services are
explore” as diverse as their market
segments. They have structured
and syndicated financing
arrangements, working capital
finance, Balancing-Modernization
Replacement (BMR) facilities,
financing of international trade,
consumer credit, small business
loans, credit cards and
unparalleled investment products
for the individual saver. Askari
Bank is proud of the pioneering
role in providing the most modern
technological services to its
customer base,
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EMPLOYEE RELATIONSHIP
“Unusual effort on part of the employees who are apparently
ordinary workers is one of the key indications of a superior
enterprise”

PRODUCTS AND SERVICES

Bank provides following products and services to its customers

• Consumer Banking
• Retail Banking
• SME Financing
• Corporate Financing
• Foreign Trade Services

MAIN COMPETITORS OF ACBL

• Bank Alfalah Ltd.

• Faysal Bank Ltd.
• Union Bank Ltd.
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MARKETING STRATEGY

Askari Commercial Bank Church Road Branch is not undergoing any

promotion on media. But now, Retail Banking Group is considering this
option, as they are providing Business loan, Personal loan, Smart cash,
Mortgage finance etc. The main emphasis of Bank is on personal
marketing. Most of the clients of bank have come to the bank due to
personal relations.

COMPETITIVE STRATEGY

Due to stiff competition in financial market, there is cutthroat competition in banking

sector. Customers have many options, so banks need to be highly competitive in
order to gain and retain customers. Bank is mainly focusing on strong position of
Bank among highly rated banks of Pakistan. The rating of bank according to PACRA
is also very high which competitive edge of Askari Commercial Bank Ltd. is
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Departments & Management of the Branch

Department Name : Accounts

Managing Body : Officer Accounts

Functions:

• Preparing Daily Position Report

• Preparing Salary Sheet
• Vouchering

Department Name : Customer Services

Managing Body : Officer Deposits &
remittances

Functions:

• Opening of Accounts in the following categories

• Current account / saving accounts/ Fcy Accounts
• Managing Call Deposits Receipts
• Management of Short term Notice/ Fixed Deposits
• Managing foreign currency Accounts
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Department Name : Export

Managing Body : Manager Export

Function:

• Managing Foreign currency transactions

• Managing Exports

• Managing international foreign currency payments

• Managing Export documents for payment realization/ negotiation of post

shipment bills

Department Name : General Operations

Managing Body : Manager Operations

Function:

• Daily cash management

• Cash receipt & deposit management
• Supervision of overall branch operations

Department Name : Clearing Dept

Managing Body : Clearing officer

Function:

• Accepting transfer delivery and clearing checques

• Arranging receipt of cheques payment

• Amount collections on drawn checks for members and sub-members of local

clearing house
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Department Name : Remittance Dept

Managing Body : Remittance Officer
Function:

• Managing insurance of demand drafts

• Telegraphic transfer of money

• Mail transfer

• Pay order

Department Name : Credit

Managing Body : Manager Credit

Function:

• Preparation of Credit Proposals

• Management of following securities

• Mortgage

• Hypothecation

• Pledge

• Charge

• Issuance of guarantees

Funded Facilities

• Running Finance/ Cash Finance

• Term Finance
• Finance Against Packing Credit Part I (FAPC I)
• Finance Against Packing Credit Part II (FAPC II)
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• Finance Against Imported Merchandize (FIM)
• Payment Against Document (PAD)
• Finance Against Trust Receipt (FATR)
• Finance Against Foreign Bills (FAFB)
• Foreign Bill Purchased (Clean)
• Local Bill Purchased (Clean)
• Foreign Bill Purchased (Documentary)
• Local Bill Purchased (Documentary)

Non Funded Facilities

• Letter Of Credit
• Letter Of Guarantee

List of Documents for processing Credit Proposal

• Business profile
• Management Structure
• Product Mix
• List of Suppliers and Customers
• Borrowers Basic Fact Sheet
• Audited Financial Statements of last 3 years
• Resolution of Board of Directors
• Memorandum of Association and Articles of Association
• Certificate of Incorporation
• Certificate of Commencement of Business
• Copies of ID cards of Propitiator/ Partner/ Directors/ mortgagers
• Form A, Form 29 and Search Report
• Income Tax/ Sales Tax Certificate
• Copy of Import/ Export Registration
• EE Statement
• List of Machinery
• Title Deed, Fard, Non Encumbrance Certificate, Aks Shajra, Valuation
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• Certificate and Legal Advisor’s Opinion
• Business with other Banks

Types of Securities

• Deposit
• Saving Certificates
• Pledge
• Hypothecation
• Mortgage
• Charge
• Lien
• Cash Margin

Department Name : IT
Managing Body : IT Incharge

Function:

• Managing day to day cash transaction in computer

• Maintaining customers’ accounts in computer

• Receiving all mails from Head Office

• Fax

• Keeping ATM in working condition

• Printing daily reports

• Receiving IBCA

Types Of Financing

• Consumer Financing
• SME Financing
• Corporate
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SWOT Analysis of the Bank

Now a deep look of bank’s internal environment as well as its external environment.
The situational analysis will give us a clear picture of bank’s strengths and weakness
and the opportunities available in the open market to overcome expected threats.

Internal Environmental Audit

Strengths:
Proven Management:

The branch has a well established management infrastructure. Managerial position is

a leading tower of the bank. Management is using strong and strategic management
decision to make the bank a completely managed bank of the area.

Largest Product Range:

ACBL has the largest product range in banking sector.

Following is the list of its products and services range that will prove bank’s
strength;
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Askari Value Plus

The best that you deserve

Askari Bank leads the way, yet again ...... with the introduction of Askari
Bank’s Value Plus, rupee deposit account, which promises greater
financial freedom and security, in an unmatched way. Invest as little as
Rs.10,000/- in a value plus savings deposit and you are entitled to earn
monthly returns, while still enjoying the flexibility of a normal checking
account.
Advantages

• Partial liquidity offer on all time deposits

• Monthly return
• 24hours world-wide protection plan
• ASKCARD (Debit Card) &

unmatched service quality

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• Askari Bank is committed to provide you innovative and

competitive solutions to your banking needs in a more efficient
and personalized manner. Your Bank enjoys a strategic
competitive advantage over all domestic players by virtue of its
leadership, large network and technological advancement. In
line with tradition of innovation, Askari Bank takes pride in
announcing launch of “ASKCARD”- Askari Bank’s Debit Card.
ASKCARD is tailored to your shopping needs and is another
valuable financial solution reflecting its commitment to build
lasting relationship with you.
• ASKCARD means freedom, comfort, convenience and security, so that

you can have retail transactions with complete peace of mind. ASKCARD
is your new shopping companion which enhances your quality of life by
letting you do shopping, dine at restaurants, pay your utility bills, transfer
funds, withdraw and deposit cash through ATM anywhere, anytime.
• For queries about ASKCARD, feel free to contact nearest branch or
Call ASKCARD Centre at (051) 111-000-788. On behalf of Askari Bank’s
team, I wish you ecstatic moments with your ASKCARD

• WHAT IS ASKCARD?
• It is an innovative step in the evolution of today’s plastic money. It
gives you the freedom to access your Savings, Current or ASDA
Account at merchant locations and ATMs. Whenever you make
payments, the amount will be instantly debited to your account.
ASKCARD combines the key elements of ATM Cards, Credit Cards
and Checks- besides giving instant access to cash and acceptance.

• MONEY MANAGEMENT:
• Every purchase and ATM
withdrawal will appear on your
monthly checking account
statement, including the date,
place and amount. It will allow
access to your money that you
have set aside to cover Checks
which have not yet cleared-an
•
easy way to track spending
and a key benefit over cash.
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The Ultimate ..........Power Player is here
What is ASKPOWER?
ASKPOWER is the name for Askari Bank’s Pre-paid Card. Although, it is a
“stored value” card, but unlike an ATM or debit card, ASKPOWER is not
connected to any account. It is an instant cash card that can be used at any
ACBL ATM or other ATMs carrying 1-Link symbol, i-Net Banking and at all
designated Point of Sale terminals. Play on Your Own Terms

The card offers remarkable convenience for:

• 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.
• The ideal accessory for students
• 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 topped up.
• Money can be conveniently loaded to any card either by depositing cash at
any ACBL Branch or through the ATM
• i-Net Banking from another ASKPOWER Card.
Key Features

• Issued to ACBL / Non-ACBL customers.(NIC Card holders)

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

• 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

Askari Travelers Checks

Askari Bank’s Travellers Cheques

Going places? Don’t leave home without the convenience of

Askari Travellers Cheques in your pocket. Available in the
denomination of Rs.10,000/-, it’s light, safe and ideal for all
travel purposes. Welcome to another valuable financial
solution from your trusted bank.

FREE ISSUANCE

You don’t have to pay any service charges for purchasing Askari
Travelers Cheques. You can buy these either against cash or
debit to your personal account. Simply visit any of ACBL
branches located all over Pakistan and enjoy the privileges of
buying Askari Travelers Cheques
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Earn 0.10% encashment Commission
This unmatched feature lets you experience yet another
innovative customer care solution. You will receive 0.10%
commission whenever the traveler cheque is encashed after
30 days of holding

Enjoy Added Safety & Security

With our state-of-.the-art in-built security features you can be rest 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 you the comfort of dealing in the most safest substitute for
cash, easily refundable in case of loss and theft.

Askari Bank’s Personal Finance

One of the quickest approval processes around!!!

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 you get the most out of your loan. No matter what your need is, Askari
Bank has more ways to serve you then ever before.
Featuring:
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Car Financing Made Easy

Askari offers the most convenient and affordable vehicle-financing scheme, which
provides customers an opportunity to own a brand new vehicle of their choice.
Askari’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, Askari offers the best value to you.

ASKARI BANK’S Cash Management Services

• “Askari Cash Management Services” aimed at effectively managing the
accounts receivable portfolio of medium and large corporate entities. While this
service will help the corporate entities improve their liquidity, due to our 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.
The product can be tailor made 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.

Personal Documents
• Copy of National Identity Card
• 2 recent photographs (passport
• size)

• Latest paid utility bill (copy), received at residence Business

Documents
Business Documents
• Properietorship declaration or partnership deed Title documents (copy) or rent dee

for business premises

• Latest paid utility bill (copy)”received at business address

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• Membership certificate (copy) and payment receipts of Chamber of

Commerce / Trade Body / Professional Association (for medium business finance

only)

• .Last tax assessment orders (for medium business finance only)

Banking Documents
• Bank statement of business (last 6 months/1 year)

 Bank certificate from existing bank indicating account title

and account opening date
Property Documents
• Title documents (copy)

• Latest property tax payment receipt (copy)

Weaknesses of ACBL

Work Overload
There is insufficient staff in the branch that is why one personnel has to perform
more than one jobs. So due to overloading of work, employees individual
efficiency is not up to the mark and they remained de-motivated.
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Lack of Time Management

Miss management in time and working capacity is an obvious weakness of the
branch. Due to overloaded work, there are no deadlines to complete a task and
employees generally have to face late hours sitting. This late hour’s sittings make
them annoyed and decrease their working efficiency. Ultimately customers of the
branch have to suffer. If branch’s top management set a proper timing for the
customer dealing and office working, many unwanted problems can be avoided.

Lack of Motivation
There is no trend of “job rotation” in the branch. Most of the employees have
been working at the same posts for the last many years. This stagnant trend in
daily working makes them less efficient and they generally take less interest in
new developments. Moreover no motivational activities, like performance rewards
scheme, annual recreational tours for changing environment, are being practiced
in this branch. That is why most of the staff is de-motivated.

Lack of necessary material

Branch manager wants to increase profit by reducing cost of operations. So many
necessary items that are very important and an integral part of day to day
operations have not been arranged and due to non availability of necessary
material for performing daily operations, customers as well as employees have to
face many difficulties and this bring a bad name to the branch.

Violation of Rules
Top management of the branch generally gives priority to their personal relations
instead of performance of the workers. This is quite obvious from the hiring
criteria. Generally those candidates are selected to perform in the branch that
has strong references. That is why high performers are discouraged to perform in
the branch instead; people with strong reference are permitted to perform with
their own will.
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Promotional Criteria
Branch top management does not promote its staff by evaluating their
performance. Instead, those employees are promoted that have personal
relations with the top management. This type of promotional criteria spread de-
motivation among the staff and they take less interest in their work.

Advertising and other promotional activities

Top management of the branch does not take interest in advertising the branch’s
products and services. No promotional mix is being launched to develop a god
market image of the branch.

External Environmental
Analysis

Opportunities
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Chance to be a biggest strategic Branch in Faisalabad

Since ACBL has active networked in the country as well as abroad, it can be the
biggest strategic bank in Faisalabad by developing a network among other
branches in Faisalabad. It means account holder of any branch can manage his
transactions through ACBL PEOPLES COLONYBranch

E-Banking Facility in Peoples Colony Branch

As ACBL is offering mobile banking and virtual banking facilities, it can be the
best in e-banking business by developing a strong e-brand for the future banking.
ACBL just need to develop its software section for preparing e-banking innovative
and convenient products for national and international customers.

Internationally Qualified staff

Banking sector internationally has made great progress. In Pakistan, now there
are many individuals that are very trained and foreign qualified in banking sector.
ACBL Peoples Colony Branch must change its hiring policies and must recruit
internationally qualified stuff so that they could introduce new trends and
innovative banking products..

Special Desk for export concerns

ACBL Peoples Colony Branch must initiate a special desk to facilitate exporters
of Faisalabad. As there are many export oriented firms in the Faisalabad, ACBL
PEOPLES COLONYBranch can take huge business from the exporters market.

Special Desk for local businessmen

ACBL PEOPLES COLONY Branch must develop a special desk for local
businessmen. As local businessmen deal a lot of money in their daily operations,
ACBL PEOPLES COLONY Branch can provide them facility at their convenience.
In this way local businessmen will give business to this branch as they will feel
ease in this branch.
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Internet Banking Facility
ACBL PEOPLES COLONY Branch still not offering Internet banking facility to
their account holders. Branch should initiate this facility. As there are a large
number of businessmen in Faisalabad market and generally they don’t have time
to pay frequent visits to the branch. Such internet banking facility will definitely
give

them an opportunity to save their time and they will give more and more business
to ACBL PEOPLES COLONY Branch as no other bank in Faisalabad is offering
such facility

Mobile Banking
ACBL has a large network of Mobile banking. ACBL PEOPLES COLONY Branch
can take benefit of this facility and can offer Mobile banking service to its local
account holders.

Threats

Cut throat competition

There is a great competition among different branches of the different banks.

These banks are offering bank services at very affordable prices. So such cut
throat competition can be a vital threat for the branch

Banks PR desk

As ACBL PEOPLES COLONYBranch don’t have any PRO (Public Relation

Officer). Others branches put great emphasis on customers relations and
facilitate their customers at maximum level. This could also be a great threat for
the PEOPLES COLONY Branch.

E-Banking
Many well renowned banks in Faisalabad are planning to offer e-banking facility
to their customers. If they start providing this facility before the ACBL PEOPLES
COLONY Branch starts it, this could be a great threat for the branch.
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Employees Turnover Ratio
Employees of the PEOPLES COLONY Branch are very de-motivated that is why
employee’s turnover ratio of this branch is very high. Employees of this branch
leave the job from this branch due to bad policies (Late hours sitting, de-
motivation) and join other branches that provide them a good working
environment. If the ratio of employees’ turnover remains same, this could be an
alarming situation for the branch.
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SWOT Analysis Matrix OF ACBL

STRENGTHS-S WEAKNESSES_W

1- Largest product line 1-Work Overload

2- Largest no of facilities. 2- Lack of Management
3- ISO & SA 8000 certified 3- Lack of motivation
company 4- Lack of necessary
4- Ability to offer online material
banking at branch level 5- Violation of rules and
5- Over ten years satisfied regulation
customers 6- No performance
6- Proven management evaluation criteria
7- Sophisticated IT 7- Insufficient capacity
banking products utilization
9- Market image as best
commercial bank.

OPPERTUNITIES- O SO- Strategies WO- Strategies

1-Chance of being a 1- Introduce new products 1- Use management

strategic branch due to in internet banking. strategies to decrease
good management overload of work
2- Open special desk for
2- E-banking facility in exporters 2 - Give In-house
Peoples Colony Branch training to dissatisfied
3-Use IT integrated
employees to increase
3- Internationally qualified technology for Mobile
their motivation level.
stuff available in banking banking services
sector 3- Use of new
4- Use market image edge
technology for Max.
4-Opening of a special to get business from
Capacity utilization.
desk for local businessmen exporters.
 31

THREATS- T ST- Strategies WT- Strategies

1- Competitors with 1-Advertise ACBL’s 1- Decrease work load

computerized e- banking Largest product line and by hiring new employees
services 2- attract customers
2- Bank’s public relations
Bank’s PR desk is not
2- Use proven desk should be
active
management techniques developed properly
3- Threat of E-banking
to reduce employees’
initiative from competitor
turnover ratio.
side 4-
Employees high turnover
3- Develop new products
ratio and joining of
(R & D) for local
competitor’s banks
businessmen and
exporters

Most Critical Area

The critical areas that should be addressed in future policies and strategies of
ACBL Peoples Colony Branch are the following

• Innovative online services for local businessmen and exporters

• Advertisement of the branch in local market to develop good images in the
market
• Special services and products for exporters
• E-banking & mobile banking facility for exporters, local businessmen and also
for individuals
• Hiring of well educated and experienced stuff for modernizing the banking
strategies of P.C Branch
 32
Strategies Development

• Advertise ACBL’s largest product line and attract local customers (Exporters
and local businessmen)
• Use proven management techniques to reduce employees’ turnover ratio.
• Develop new products (R & D) for local businessmen and exporters i.e. E-
banking facility & mobile banking facility. For this purpose develop E-banking cards
for local businessmen and exporters
• Introduce new products in internet banking.
• Open special desk for exporters
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P E S T A N A L Y S I S o f A C B L

Political Factors:
1. Government policies for commercial banks are not appreciable
2. Unstable political conditions of the state bank of Pakistan that definitely
disturb the commercial banks performance and working conditions

Economical Factors:
1. Less finances with bank to manage day to day operating material
2. Comparatively Less salaries of the staff
3. No compensation and beneficiary funds for the high performers in the
bank

Social Factors:
1. Not very well educated staff in Faisalabad.
2. People generally hesitate to take responsibilities.
3. Comparatively tough market for banking sector as too many competitors
are in competition.
4. Banks working environment is not of international standard because
of local manager caliber.
5. General habit of local businessmen is not to involve banks in their daily
transactions
6. People do not give any importance to savings.

Technological Factors:
1. Bank has a well-established IT department. Especially the bank’s
MNET banking system and Mobile banking system
2. Latest computerized account management system
3. Less technical staff that do not comply with modern banking tools.
4. Sophisticated IT department of the Bank.
 34

Description of My Findings in ACBL

Internship Learning Phase

I started my internship in Askari Commercial Bank Ltd. Peoples Colony

Branch to all functional areas and departments of the bank. During my
internship period I performed internship in all departments of the bank and
took a deep understanding of every department of the bank. Following are
some departments of the bank in which I personally performed and learnt
a lot.

 Collection
 Remittance
 Deposit
 Clearing
 Credit department
 Export & Import department
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Collection Department

The checks from different cities other than Faisalabad are collected in this
department. The checks may be of ACBL or any other branch. After realizing the
nature and originality of checks, amounts are credited in the account

Remittance Department

This department basically deals in transferring of money. I worked in this department

for 4 days during internship. Remittance can be of two types

1) Inward remittance
2) Outward remittance

Inward remittance
Inward remittance consists of Telegraphic transfer (TT), Mail Transfer (MT), and
Demand Draft (DD). These are the different modes of remittance through which
customers are facilitated and their cash remittance is made easy and safer.

Outward remittance
Outward remittance are also consists of TT, MT, DD and Pay order (PC) customer
approach the bank for transferring their money to other cities of Pakistan

Deposit Department

ACBL P.C branch receive money against following accounts

1) Current deposits
2) Profit and loss accounts
3) Fixed deposits
4) Term deposit accounts
5) Short term deposits
6) Call deposits
7) Foreign currency deposits
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8) Askari Special Deposits
9) Value Plus Saving Deposits
I worked in this department for the 5 working days and learnt the whole procedure of
depositing money in any type of account.

Account Opening

A person who wants to open a bank account with ACBL follows the following
procedure

Any person who wants to open a current account, saving account, profit & loss
sharing account has to fill a account opening form. Bank usually requires the
applicant to show a guarantee of an old account holder of that particular branch. If
manager is satisfied he will get the form filled from the account applicant and take
his/her full signature with a deposit of minimum Rs. 200. The following books will be
given to a new account holder.

Pay-in Slip

Money is deposited with the bank after filling in a pay-in slip. The objective of this
book is to provide the customer with the bank’s acknowledgment for receipt of
money.

Check Book

A check book that contains many checks in it is also given to the account holder.
This check book is used to withdraw money from the bank.

Pass Book

Pass book is a copy of customer’s account as it appear in the bank. Balance of the
account is recorded by the clerk in this book
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Clearing Department

Every bank acts both as paying as well as a collecting bank. The legal obligations on
a bank are to collect checks drawn up to other banks for a customer and pay against
drawn on it for the check holder. A large part of checks payments and collects
against checks is carried out by the clearing department of the bank. A clearing
house is a place where all representatives of all banks get together and settle the
receipt and payments of checks drawn on each others. I also learnt the whole
procedure of clearing department in ACBL P.C Branch. Following are the types of
checks collected and paid by clearing department

 Transfer checks
 Clearing checks

Functions of clearing department

 To accept transfer delivery and clearing checks from the customers of the
branch and arrange their collections
 To arrange the payment of cheque drawn on the branch and give for
collection in any other branch of ACBL or any other member or sub-member
of the house.
 To collects amounts of checks drawn on member branches.
 Clearing the different checks.

Credit Department
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Credit department of ACBL P.C Branch gives loans. The bank in lump sum grants
loans so these types called fixed or demanded loans. Interest is charged on the
whole amount of the fixed loans these types of loans generally granted

against security of gold and documents. In case of demand loans against gold or
document, a demanded promissory note for the amount of loan is taken from the
borrower. Following loans are granted in advances department

 Loan against Gold

 Loan against pledge of stock
 Cash credits
 Advance against pledge stock-in-trade or products
 Hypothecation of stock or finished products

Export & Import Departments

International business is basically done with the help of banks. Banks generally play
the role of bridge between a customer and a goods supplier. Faisalabad being a
textile city contributes a lot to the country’s total textile exports. Following documents
are necessary regarding the documents for an export firm.

 The Export form (E-Form)

 Bill of Exchange
 Commercial Invoice
 Packing List
 Weight list
 Certificate of chamber of commerce
 Certificate of quality control
 Certificate of origin
 Certificate of black listed countries
 Certificate of export license
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Import Department

International business is basically done through export & imports. Banks perform all
export & import related operations under L.C. (Letter of Credit)

My learning about LC:

Importer’s bank basically makes a financial commitment in favour of exporter’s bank

on the behalf of importer to make payments to exporters, if the terms and conditions
are stipulated in L/C are fulfilled by him. L/C is opened against different margin
securities to involve importers’ stake in the transactions. For opening the L/C bank
needs to know the following information.

 Date of application
 N.T.N number of the importer
 Importer’s registration number
 Name of applicant with full address
 Name of importers’ bank
 Name of beneficiary bank with full address
 Name of beneficiary with full address
 Detail of Goods to be imported
 Name and address of port of loading and port of destination
 Terms and conditions regarding negotiation
 Quantity and unit price of imported merchandise
 Terms of payment i.e. sight
 Terms of payment of freight
 Mode of transportation
 Signature of Applicant
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Conclusion of Facts & Findings

M y F i n d i n g s

During my internship I found following facts about ACBL P.C branch.

From management point of view the bank branch is very weak.
 Employees are highly de-motivated
 Online billing collection facility is not available
 Evening banking facility is not being offered to customers
 No Promotional criterion is being practiced.

S u g g e s t i o n s
&
R e c o m m e n d a t i o n s

ACBL is now a consolidation stage designed to lock in the gains made in

recent years and prepare the groundwork for future growth. The bank has
restructured its asset portfolio and rationalized the cost structure in order
to remain a low cost producer. From the quantum of the profit and its
financial data it can be easily be judged that after the privatization, Askari
Commercial Bank is performing exceptionally well. Its deposits are
growing day-by-day and so is its profitability. The management deserves
full credit for the productive performance of the bank.
Following are some suggestions to further improve the efficiency and
performance of the bank’s operations:

1. INTRODUCING NEW INNOVATIVE PRODUCTS:

Moving on the same track as before ACBL should try retaining its position
as market leader in innovative banking products, which it had previously
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enjoyed. The Rupee Traveller checkss, ATM net work, Retail Banking
schemes need to be revived and new innovative modern products need to
be developed like: M-net, E-commerce & E-merchant to achieve its target
to be the Pakistan’s No.1 Bank. Where as, gift checks scheme is quite
innovative.

2. PROPER EMPHASIS ON MARKETING AND ADVERTISING:

The products copied by other banks, which were introduced by ACBL , are
become more popular than originals due to ineffective marketing and
advertisement policy of ACBL . ACBL should develop a, specializes
marketing force at every level to properly execute the marketing and
development of its products and to fetch low cost deposits.

3. RESTRUCTURING HUMAN RESOURCES POLICIES:

Trained staff is most valuable asset in an organization particularly in the

services sector. Discriminating and improper human resources policy can
lead to depletion of this valuable asset resulting in high staff turnover
causing financial and loses. Demotivated staff is the most dangerous
threat to a service oriented organization like bank. ACBL should try to
restore the confidence of its staff in management by altering resources
policy in such a way that employee motivation is achieved.

4. CAREER DEVELOPMENT:

a) JOB ROTATION:

Most of the bank employees are sticking to one seat only with the result
that they become master of one particular job and loose their grip on other
banking operations. In my opinion all the employees should have regular
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job experience all out-look toward banking. The promotion policy should
be adjusted.

b) PROFESSIONAL BREEDING:

Refresher courses for the staff are most important in any international
organization. All the employees should have these courses according to
their requirement. Foreign experts can also be called for this purpose.

5. EMOLUMENTS TO EMPLOYEES:

Motivated employees are the biggest assets of an organization. The

incentive policies and structure of emoluments can greatly alter the
motivational level of employees within an organization. Muslim
Commercial Bank by effective utilization of motivational techniques and
restructuring of its employee emolument policy can increase productivity
considerably.

6. COMPUTERIZATION:

Altogether ACBL is giving enormous emphasis on information technology

yet there is a lot of potential for further developments in this sector. You
can only maintain your growth if you are well prepared in terms of
advancement in the information technology and computerization of their
operations.
The development of effective computerized and technically advanced
information system will ensure its success.
For example: development of one common spreadsheet format over the
whole bank is required.
Moreover, intra network development can help the bank to save cost,
utilize the time efficiently and effectively. And according bank’s staff should
be trained to become computer literate.
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7. RELATIONSHIP MANAGEMENT CONCEPT:

Being a corporate branch, the relationship management concept should be

introduced in letter & spirit for which the branch requires adequate staffing
for close laison with the borrowers, on an on going basis. Although its
being introduced but more efforts are required for this.

New Knowledge Acquired

I learned a lot at Askari Commercial Bank Ltd. Peoples Colony Branch. I

got information about Export Department, Credit Department, Import
Department, I T Department, Accounts Department, Remittances
Department and Retail Banking etc. This knowledge can be helpful for me
in building my career.
I had no practical knowledge prior to my internship at Askari Commercial
Bank Ltd. But after my internship I have learned a lot about practical life
and I have gained practical experience, which cannot be acquired by
reading books only.

Problems Encountered

During my internship program I had to face many problems and difficulties,

some of them are
• Getting up early in the morning
• Working all day long
• Problems regarding Getting along with new people and
environment
• Doing same work again and again was very difficult
• Difficulties to learn banking jargons
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How experience will Impact my career

This internship will certainly be helpful for me in building my career. There

is no answer to experience and I have gained good experience working in
Askari Commercial Bank Ltd.
It took me some time to overcome difficulties, which I had to face during
early days of my internship, but later on it was easy going. Surely practical
life is different from what is described in books and with this experience I
will be able to communicate with people in much better manner.
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 46
Bibliography
www.askaribank.com
Musa Naseer Chief Manager
Sajjad Sarwar Chaudhry Manager Credit
Ali Imran Jan Manager Operations
Manzoor Hussain Manger Foreign Trade
Salahuddin Ahmad Accounts Officer
Thair Mahmood Assist. Manager Foreign Trade
Amer Altaf Assist. Manager Imports
Farhat Hussain Incharge Customer services
Miss Sadaf Rana Foreign Exchange Officer
Janbaz Rasool Officer RBG
Ms Qurat ul Ain Officer Customer Services
Asim Bin Azhar IT Officer