Organization:

Update Date: 18-Feb-2009

The Vision
To be the Bank of first Choice in the Region

The 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 stakeholders, and contributing to society.

CORE VALUES
The intrinsic values, which are corner stones of Askari corporate behavior, are:
• Commitment
• Integrity
• Fairness
• Team-work
• Service

Corporate Philosophy
From knowing customers requirements to understanding employee needs, from utilizing modern
technology to making responsible social contributions, from enhancing stake-holders value to
practicing corporate ethics. Askari bank is continuously and consistently striving to address newer
challenges with a single motivation:
“the power to inspire and be inspired”

Brief History
An important player in Pakistan’s financial services industry, Askari Bank is now leading the way to
the most modern and dynamic banking in the country.

Incorporated in October 1991, Askari Bank commenced its operations in April 1992, and has since
expanded into a nation wide presence of 150 branches, including 14 dedicated Islamic Banking
branches connected online and supported by a shared network of over 2,670 online ATMs covering
all major cities in Pakistan supports the delivery channels for customer service. Askari Bank also has
an Offshore Banking Unit in Bahrain.

ASKARI BANK is the leading private sector bank in Pakistan, delivering quality service through
innovative technology.

In the success story of ASKARI BANK, one of the most important factors, apart from its dynamic
management and prudent approach, is the QUALITY of its SERVICES, which gives it a great edge
over its competitors. ASKARI BANK has always strived to facilitate its customers by introducing
various high quality hi-tech services for the first time in Pakistan.

Askari Bank is proud of it’s pioneering role in providing the most modern and technologically
advanced services to their customers. Knowing their customers and their needs is the key to their
business success. Their products and services are as diverse as their market segments. Technology
has played a pivotal role in meeting customer expectations, particularly with respect to the speed
and quality of services.

Askari Bank has fully automated transaction-processing systems for back-office support. The branch
network is connected on-line real-time and customers have access to off-site as well as on-site
ATMs, all over Pakistan. This includes not just establishing and maintaining technology infrastructure
for providing operational support to all units of the Bank, but also encompasses introducing latest
state-of-the-art technology-driven products and service delivery systems, such as ATM networking,
 Internet Banking, Mobile ATM, Credit Cards, Debit Card, Prepaid Card, utility bills payment through
ATMs & Internet which have brought about cost-effectiveness, timesaving and safety.

Askari bank has also achieved another milestone with the launch of Askari Bank Zari Credit Card.
This is the first ever credit card offered to the farmers in Pakistan with complete product features
and service benefits. It aims to meet farmer’s production and development needs and to
supplement cash flows, whenever required.

It is also a matter of satisfaction that ASKARI BANK has been the first bank to introduce PTCL and
WAPDA utility bills payment electronically through ATM and Internet on an Online-Real-Time Basis.
For the first time in Pakistan, they have introduced Mobile ATMs to provide banking facilities at the
doorsteps of their customers. Askari bank’s mobile ATMs first in the banking history of Pakistan, now
four in number, continue to serve customer needs.

Their Phone Banking and Internet Banking Facility allows customers, to access their accounts from
anywhere in the world, and effect transactions.

Visit Askari Website (www.askaribank.com.pk)

Askari Bank has an internationally recognized website, containing comprehensive information on

Askari Bank and its products. The bank is proud to mention that the website was developed in-house
and has received several awards. Bank has established its Data Warehouse and Customer Care
Centre, a dedicated customer call center to provide one window service to valued customers in
terms of their telephonic enquires.

Askari bank remains focused on using technology for improving customer service standards and
expanding the range of products being offered and other technology based solutions.

Brief History
Askari Commercial Bank Ltd. (ACBL) was Incorporated in Pakistan
on October 09,1991,
ACBL commenced its operations in April 1992, as a public limited
company, and has
since expanded into a nation-wide presence of more than 50
branches, handled by the
human capital of more than 1600 employees and has lowest
turnover in Pakistani
Banking Sector.
The Bank is listed on the Karachi, Lahore & Islamabad stock
exchanges and the initial
public offering was over subscribed by 16 times.
ACBL is principally engaged in the business of banking as defined
in the Banking
Companies Ordinance, 1962.As at December 31, 2002, the Bank
had total assets of PKR
70.313 billion, with over 250,000 banking customers.
ACBL has a Correspondent Bank Network in more than 95
countries with about 167
banks. ACBL 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 and outward-looking strategy in terms of our market
emphasis. As a result, ACBL
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.

Branch Network
The system of Regional and Area offices has been introduced since
1999 for effective
supervision and control of branches. The Bank's branch network
has been divided into 4
regions:
North Region Central Region.
South Region West Region.
Under this system the Regional heads have the primary
responsibility for

business development, profitability, productivity, operational

efficiency and credit quality..

AWARDS AND ACHIEVEMENTS

Askari Bank continues its success in competition. Over the years, ACBL
hasreceived several awards for the quality of its banking service to
individualsand corporate. These include:
Best Commercial Bank
Consumer Choice award 2005By The Consumers Association of Pakistan
Best Retail Bank in Pakistan
Award 2004 & 2005By The Asian Banker
Best Corporate Report
1st prize awarded for 2000, 2001, 2003 & 2004

By Institute of Chartered Accountants of Pakistan (ICAP) and institute of

Cost& Management of Accountants of Pakistan (ICMAP)
Corporate Excellence
Awards for 2002 & 2003The Management Association of Pakistan (MAP)
Best Corporate / Institutional Internet Bank in Pakistan
Award for 2004By Global Finance magazine
Best Consumer Internet Bank in Pakistan
Award for 2002, 2003 & 2004By Global Finance magazine
The Best Bank in Pakistan
Award for 2001 & 2002By Global Finance Magazine
Best Presented Accounts
Ranking prizes awarded from 1997 to 2002By South Asian Federation of
Accountants (SAFA)
Best Presented Annual Accounts
Award for 2000, 2001and 2002
By the Institute of Chartered Accountants in Pakistan (ICAP), and the Institute of Cost and
Management Accountants in Pakistan (ICAMP)
Commercial Bank of the Year
Award for 1994 & 96

By Asia money magazine

The Best Consumer Banking Award 2006
Award for 2006By the consumer Association of Pakistan
The Best Retail Banking Award 2008
Award for 2008By Pakistan Guarantee Export Corporation Ltd.

The Best Corporate Report Award

For the year 2008By ICAP & ICMAP

Best Domestic Bank in Pakistan award for 1995by Euro money

Over the years, Askari Bank has proved its strength as a leading
bankingsector entity, by achieving the following firsts in Pakistani
Banking:
First Bank to offer on-line real-time banking on a country-wide
basis.First Bank with a nation-wide ATM network.First Bank to offer
Internet Banking ServicesFirst Bank to offer e-commerce solution
CREDIT RATING
Askari bank has following credit rating by Pakistan Credit Rating Agency(PACRA)
Long term: AAShort term: A1+
AA represents very high credit quality. AA ratings denote a very low expectationof credit risk.
Also show very strong position of timely paymentsA1+ shows obligations supported by the
highest capacity for timely payments.
COMPETITORS
Banking industry is growing much fast. So Askari bank is facing a lot of competition
in the market. There are following competitors:
• ABN Amro
• Bank al Falah (Pvt) Ltd
• Union Bank Ltd
• Soneri Bank Ltd
 • Prime Commercial bank
• The bank of Punjab
• Bank Al-Habib Ltd
• My bank Ltd
• Silk Bank Ltd
• NIB Ltd

Audit Committee
Mr. Muhammad Afzal Munif, FCA Chairman
Brig (R) Muhammad Shiraz Baig Member
Brig (R) Asmat Ullah Khan Niazi Member
Mr. Zafar Alam Khan Sumbal Secretary
Auditors
A.F.Ferguson & Co
Chartered Accountants
Legal Advisors
Rizvi,Isa, Afridi & Angell

Corporate Citizenship
Askari bank’s role as a corporate citizen is as important to them as the products and services they offer.

As a leading financial institution Askari bank ensures that its business decisions linked with ethical values are in
compliance with legal requirements and convey respect for people, communities and the environment. Askari bank
is driven by the highest standards of corporate governance and social responsibility. Askari bank believes in
building strong relationships with customers, partners, employees and the communities in which it operates.

Askari Bank has made generous contributions in the areas of sports, culture, poverty alleviation, women & child
care, health & medical sciences, education, human development and scientific research.

Askari bank also contributes significantly to charities and community projects to help bring about a better quality of
life to the less privileged in the community and enrich the lives of Pakistani through support for local arts, education
and sports.

Sports

• Sponsorship of 13th, Fina World Swimming Championships

• Sponsorship of 2010 World Championship Qualification Tournament, held in 2009

• Sponsorship of 29th Punjab Open Golf Tournament

• Sponsorship of 7th Chief of the Army Staff (COAS) Squash Championship 2009

• Sponsorship of All Pakistan Garrison Open Golf Tournament

 • Sponsorship of COAS 7th International Squash Championship

• Sponsorship of COAS Open Golf Championship 2009

• Sponsorship of ITF Pakistan Junior U-18 Tennis Championship 2009

• Sponsorship of Pakistan Veteran Tournament Rawalpindi

• Sponsorship of Allama Iqbal Open Golf Tournament 2009

• Sponsorship of Gujranwala Golf Championship 2009

Education

• Sponsorship of Annual Function of the Old Hailians Association

• Sponsorship of branding for Islamic Educational Convention

• Sponsorship of Exhibition on International Conference on Medical

Education

• Sponsorship of Lahore Grammar School’s Annual Play 2009

• Sponsorship of Old Ravians Union event through publication

• Sponsorship of TNS Film Festival organized by BPS, School, Lahore

• Sponsorship of Zenith Leadership & Development Program, Karachi

Environment

• Sponsorship of a Campaign under the title of “Telephone a Tree”

• Sponsorship of Children Park at Istaqlal Camp, Chakwal

• Sponsorship of F-10 Roundabout, Islamabad

• Sponsorship of Park at Commercial Area, DHA, Lahore Cantt

• Sponsorship of Spring Gala organized by M/s ECI (Pvt) Ltd

Social Cause
• Sponsorship for CILT Pakistan’ International Seminar

• Sponsorship of ASF Annual Exhibition / Meena Bazaar

• Sponsorship of 19th, All Pakistan Multan Open Golf Championship

• Sponsorship of All Pakistan Me Exhibition, Karachi

• Sponsorship at Dawn Life Style Exhibition 2009

• Sponsorship of Civil Aviation Authority special publication is

• Sponsorship of Conference on of Retail Banking & Finance Ex Pakistan 2009

• Sponsorship of Food, Agri & Liv Asia 2009 for E-commerce Gate Pakistan.

• Sponsorship of Islamic International Medical College (IIMCT)

• Sponsorship of print/media campaign for IDPs

Statement of Compliance
With the Code of Corporate Governance for the year ended December 31, 2010, this
statement is being presented to comply with the Prudential Regulation No.XXIX, responsibilities of the
Board of Directors, issued vide BSD Circular No.15, dated June 13, 2002 and the Code of Corporate
Governance (the Code) as contained in Listing
Regulations of the stock exchanges where the Bank’s shares are listed for the purpose of establishing
a framework of good governance, whereby a listed company is managed in compliance with the best
practices of corporate governance.

The Bank has applied the principles contained in the Code in the following manner:

1. The Bank encourages representation of independent non-executive directors and directors

representing minority
Interests on its Board of Directors. At present the Board includes 5 non-executive Directors of which 2
independent
Directors represent minority shareholders.
2. The Directors have confirmed that none of them is serving as a director in more than ten listed
companies, including
Askari Bank Limited, except Mr Tariq Iqbal Khan who has been exempted for the purpose of this clause
by the Securities
and Exchange Commission of Pakistan (SECP).
3. All Directors are resident and registered as taxpayers and none of them has defaulted in payment of
any loan to a
banking company, a DFI or an NBFI or, being a member of a stock exchange, has been declared as
defaulter by that
stock exchange.
4. During the year one casual vacancy occurred on the Board, which was filled within the prescribed
period.
5. The Bank has prepared a statement of ethics and business practices, which has been signed by all
the Directors and
employees of the Bank.
6. The Board has developed a vision / mission statement, overall corporate strategy and significant
policies of the Bank.
A complete record of particulars of significant policies along with the dates on which these were
approved or amended
has been maintained.
7. All the powers of the Board have been duly exercised and decisions on material transactions,
including appointment
and determination of remuneration and terms and conditions of employment of the Chief Executive
Officer, have been
taken by the Board.
8. The meetings of the Board were presided over by the Chairman and the Board met at least once in
every quarter.
Written notices of the Board meetings, along with agenda and working papers, were circulated at least
seven days
before the meetings. The minutes of the meetings were appropriately recorded and circulated.
9. The Board members participated in an orientation course to apprise them of their duties and
responsibilities.
10. The Board has approved appointment of Company Secretary, including his remuneration and terms
and conditions
of employment, as determined by the Chief Executive Officer, however, appointment of Head of
Internal Audit is in
process.
11. The Directors’ Report for this year has been prepared in compliance with the requirements of the
Code and fully
describes the salient matters required to be disclosed.
12. The financial statements of the Bank were duly endorsed by the Chief Executive Officer and the
Chief Financial Officer
before approval of the Board.
13. The Directors, Chief Executive Officer and executives do not hold any interest in the shares of the
Bank other than that
disclosed in the pattern of shareholding.
14. The Bank has complied with all the corporate and financial reporting requirements of the Code.
Askari Bank Limited | Financial Statements
page |68
15. The Board has formed an Audit Committee. It comprises of 3 members. All members are non-
executive Directors
including the Chairman of the Committee.
16. The meetings of the Audit Committee were held in every quarter prior to approval of interim and
final results of the
Bank as required by the Code. The terms of reference of the Committee were fully complied with.
17. The Board has set-up an effective internal audit function on a full time basis.
18. The statutory auditors of the Bank have confirmed that they have been given a satisfactory rating
under the quality
control review program of the Institute of Chartered Accountants of Pakistan, that they or any of the
partners of
the firm, their spouses and minor children do not hold shares of the Bank and that the firm and all its
partners are
in compliance with International Federation of Accountants (IFAC) guidelines on code of ethics, as
adopted by the
Institute of Chartered Accountants of Pakistan.
19. The statutory auditors or the persons associated with them have not been appointed to provide
other services except
in accordance with the Listing Regulations and the auditors have confirmed that they have observed
IFAC guidelines
in this regard.
20. All material information required under the relevant rules have been provided to the stock
exchanges and to the
Securities & Exchange Commission of Pakistan within the prescribed time limit.
21. All related party transactions entered during the year were at arm’s length basis and these have
been placed before
the Audit Committee and the Board of Directors. These transactions are duly reviewed and approved
by the Audit
Committee and Board of Directors.
22. We confirm that all other material principles contained in the Code have been complied with.
For and on behalf of the Board

Rawalpindi Lt. Gen. Javed Zia

February 23, 2010 Chairman

SWOT ANALYSIS

SWOT (Strength, Weaknesses, Opportunities & Threats) analysis of AKBL is described below:

Strengths:

• AKBL has got a well-developed on-line system in most of its branches. Remittance
Department is working very efficiently in transferring the funds of people due to this
system.
 • The Bank has also started ATM facility in most of its branches. 24-hour Banking is new
trend in Pakistan and AKBL has also taken apart in this trend.
• One distinctive feature of the Bank is that it is the only Bank working for the welfare of
army officers, which was established by Army Welfare Trust.
• The productivity of the Bank is very good. Bank is providing a high quality service to its
customers.
• AKBL have strength that most of the imports which are done in Multan are handle by
AKBL Multan.

Weaknesses:

• AKBL has lesser number of branches as compared to many other branches. Due to this
problem, army officers can not avail the benefits of their own Bank.
• The human resource department is not performing the function of selection and
recruitment very effectively. Selection process is not on merit due to which competent
persons cannot be selected.
• Bank should boost the product development and increase the range of facilities offered
for customers.
• Bank is weak in its credit management. Bank should lend to very sound parties and
increase its payment rate.

Opportunities:

• Govt. is taking very bold steps to promote IT in Pakistan. AKBL has an opportunity to
improve in technology.
• AKBL is surrounded by many competitors. It has an opportunity to do aggressive
marketing to increase its business.
• AKBL may increase its branches in competitive areas

Threats:

• AKBL has many competitors, which are continuously increasing its products and
marketing aggressively. It may cause its customers to shift to competitors.
• Some other Banks have competent taskforce, which is also a threat for AKBL. Because
human resource is the most valuable resource.
• Due to the increased bad situation of Pakistan in which army is considered to be involved
increase the frequency of withdrawals, which would decrease deposits.

Recommendations:

Already the bank is having a good infrastructure not much recommendations are needed as a
manager but few can work :-

• Customers should be given some sort of facilities which can convince people for
investment and go for Askari bank for Exports n Imports.
• Fist floor of bank is much congested, there is needed to work on that.
 • There is not a proper environment of customer dealing on that floor that’s why customer
feels difficulty in that.
• Accounts department was much congested, so area of that department should be
extended.
• After biannually closing of bank there should be a get together of all the employees of
bank which can give them a healthy atmosphere to work.
• Few of the employees used to interfere in others work so they should be strictly advised
to perform their own duty well.

Askari Bank Ltd (formerly Askari Commercial Bank) was incorporated in Pakistan on October
9, 1991, as a Public Limited Company. It started its operations during April 1, 1992. The bank
principally deals with banking, as defined in the Banking Companies Ordinance, 1962. The Bank
is listed on the Karachi, Lahore & Islamabad Stock Exchanges and its shares are currently the
highest quoted from among the new private sector banks in Pakistan.

Askari Bank has expanded into a network of 226 branches, including 31 dedicated Islamic
banking branches, and a wholesale bank branch in Bahrain. A shared network of 4,173 online
ATMs covering all major cities in Pakistan supports the delivery channels for customer service.
Askari Bank achieved planned growth in business and operations during 2009.

Askari Commercial Bank Limited continued to scale new heights in all areas of its operations.
The safety and security of the depositor’s funds, high productivity, and optimum use of
technology are the hallmarks of it’s corporate strength.

ACBL is the first and so far the only Pakistani bank in private sector to have been rated as A1 +
(for short term category ) and A+ (for long term category) by PACRA Pakistan Credit raring
agency (Pvt.) Ltd. The rating of A1+ is the highest in the short term category and stands for
“obligation supported by the highest capacity for timely repayment”.

Objectives
To achieve sustained growth and profitability in all areas of business.
To build and sustain high performance culture, with continuous improvement focus.
To develop a customer-service oriented culture with special emphasis on customer care
and
convenience.
To build an enabling environment, where employees are motivated to contribute to their
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 meet the customers’ financial needs

To explore new avenues for growth and profitability.

What Askari Stand For
What AKBL’s Vision is To be the Bank of First Choice in the Region
What AKBL think The art of banking is about creating a balance
What AKBL’s Values are Commitment Integrity Fairness Team-Work Service
What is AKBL’s
Commitment to
stakeholders
Customers
Passionate
about our
customers’
success,
delighting them
with the quality
of our service
Investors
A distinctive
investment,
delivering
outstanding
performance,
superior returns
and values
Regulators
Exemplary
compliance,
governance and
business ethics
Our People
Caring for our
people and
helping them
to grow
Communities
Dedication
towards social
development
and
improvement in
the quality of
life
Askari Bank’s vision to be the Bank of first choice in the Region demands continuous strive
for creation of
business opportunities with innovation while maintaining core values to meet commitment
to all
stakeholders.
The range of products aims to serve diverse customer base that comprises of corporates,
SMEs, individual
savers, households, and farmers. At the same time, Askari’s people are constantly engaged
in assessing
customer needs and market dynamics to re-design products to attain brand recognition and
competitive
edge. They are reshaping portfolio of businesses by investing in higher growth areas,
extending and
developing core competencies and moving out of weak and non-core segments.
Technology has played a pivotal role in meeting customer expectations, particularly with
respect to speed
and quality of service. Askari Bank has fully automated transaction-processing systems for
back-office
support. Askari Bank’s branch network is connected on-line real-time and customers have
access to off-site
as well as on-site ATMs, all over Pakistan. Phone Banking Service, Askari TeleCare, and
Internet Banking
Facility allow customers to enjoy routine banking service from anywhere, anytime in the
world. Askari
Bank also pioneered an ecommerce venture in Pakistan through a major retail distributor.
Bank’s mobile

ATMs are the first in Pakistan.

Performance

Askari Bank continued to grow strongly in 2007 and posted substantially higher earnings
despite a highly
competitive business environment. Although monetary tightening helped in containing
inflationary
pressures in the economy during fiscal 2006/07, aggregate demand remained high as
indicated by the GDP
growth.
The deceleration in private sector credit growth during 2007 was mainly due to net
retirement by the sugar
and cotton spinning sectors and did not affect overall private sector activity in the economy.
Against the
background of a highly competitive environment, Askari Bank continually reviewed its
policies pertaining
to its sectoral exposures to derive optimum competitive advantage, maintain a conservative
risk profile and
achieve greater customer satisfaction.
On the operations side, Askari Bank took various initiatives to improve its ways of doing
business. The
significant ones included a radical reorganization of its management structure and important
information
technology initiatives. The primary objective of reorganization was to consolidate and align
internal
management capacities to best serve each business segment. The information technology
initiatives were
aimed to improve service quality standards, strengthen the internal control environment and
prepare the

Bank for future challenges.

Operating Expenses
During the year, the operating expenses
increased by

46% over last year

NPLs and Provisions Against NPLs

During the year the NPLs increased by 89% to
Rs. 6.91 billion
as against Rs. 3.66 billion last year. This
increase is a result of
further down grade of few large exposures besides some new
classifications. Proportionally, an amount of Rs. 3.92 billion
was provided for against NPLs this year as against Rs. 1.13

billion last year.

Current, Savings and Other Deposits

Deposits increased by 8% to Rs.
143.04 billion as at December 31,
2007 as against Rs. 131.84 billion last
year. Analysis of deposits show that
current and saving deposits increased
by 20% and 25% respectively
whereas negative growth of 26%
recorded in fixed deposits. The
aggregate number of accounts grew
by 13% from 665,000 to 751,000 as
at close of years 2006 & 2007
respectively - thus average deposit
size further strengthened.

The solvency of the company has been successfully maintained over the years. As evident, the
share of equity is increasing. This may be regarded as a move against the rise in deposit rates and
a decrease in the banking spread of the banking sector. This healthy trend in solvency may be
predicted to continue in the future. The greater than earning assets deposits are the result of
excess reserve money growth while the increase in the non-performing advances has undermined
the advances performance. With the gradual shift to investments, we may expect the adverse
impact of the NPLs to reduce, but this may take a long time.

The trend of maintaining healthy solvency was carried out even in FY09, as the equity to assets
was maintained at 6.1%, along with this the earning assets to deposits remained 100%. This
shows the asset based is well utilized by the bank and with the new trend to shift towards low
risk investment of government securities. As observed more of the deposits are concerned with
long-term deposits.

Asset quality has been improving since 2008. We saw a decrease in provisioning to NPLs in
FY09, as it decreased by 7% from FY08. With the new regulation by the SBP of keeping Forced
Sale Value to 40%. The upcoming provisioning would be lower than the previous ones. The
asset quality was also maintained as low advances were given to consumer as well as other
corporate sectors, therefore the NPLs to advances also stood still at 9% in FY09. Whereas the
NPLs were still the same for the period but not increasing as can be seen through previous years.

The market value of the bank has shown an upward trend throughout. The bank has been a
consistent distributor of the dividends. The increased profitability of the banking sector (an
increase of around 100%) has made this sector one of the most lucrative ones to invest. This
increasing marketability profile is reflective of Askari's high yields on earning assets and
favourable liquidity and solvency positions. We may expect such trend to continue in the future.
In FY06, the high share-price of the bank is accountable for this trend. Market value to book vale
are not reliable measures of performance anymore as the market prices of shares are distorted
therefore it does not depict a true picture.

In FY09, the market value rose after the nine months ending showing a late year push towards
the recovery of the economy. As the investors gained confidence in the company, the results
were shown as the EPS surged from Rs 0.95 to Rs 2.18 in FY09. However the dividend payout
remains very low, as low as 0.07%.

The bank has maintained its reputation as one of the consistent payers of dividends. This year the
bank did not give any cash dividends rather it gave stock dividend, this would help bank in two
ways, first, by maintaining liquidity and second by making up for the MCR requirements.

The bank was able to maintain a healthy 11.5% contrast to minimum requirement of 10%.

The required minimum capital requirement can be achieved by the bank, either by fresh capital
injection or retention of profits. The stock dividend declared will be counted towards the
required paid up capital of the bank pending completion of the formalities for issuance of bonus
shares. The bank intends to meet this requirement by way of bonus issue subsequent to balance
sheet date, in this year.

Future outlook

The banking industry can be seen positively as some private credit increase is observed in the
year-end of 2009 and started picking up. With key policy rate at 12.5% the SBP maintains to
keep a balance and wants to increase the circulation of the money in the economy and not
keeping it tied up.

On the other hand, much of the investments still lie on the government securities as the
government borrowing.

With uncertainty still hovering in the economy and the inflation till feb2010 still remains high at
13.8%, the key policy rate is designed neither to be tight nor to be sluggish. Therefore much can
be expected in the upcoming year, as the pace for economy recovery along with increase private
credit can uplift the economic cycle.

Concerns of SLR and CRR are not in consideration for most banks as healthy safety is kept to
ensure no bankruptcy is involved.

The only matter of concern would remain the outcome of the new monetary policy which is said
to be designed in a way to boost the economy.

Askari Bank in particular remains strong in terms of their balance sheet as their asset base is
strong and their liabilities are more of long term. Along with this the current year performance is
considered extraordinary. Therefore positive expectation can be anticipated for the bank.

Islamic Banking
2007 was effectively the first full year of operation for Islamic Banking. During this year,
eight additional
Islamic banking branches were opened thereby extending branch network to four new cities
of Faisalabad,
Sialkot, Gujranwala, and Multan, in addition to enhancing coverage in Lahore and Karachi.
The total
network has now increased to 14 branches covering key cities and all provincial capitals as
well as the
Federal Capital.
The total assets for Islamic Banking grew from Rs 650 million at end-2006 to Rs 4,556
million at end-
2007. This was primarily due to increase in earning assets, including Sukuk investments and
advances
against Ijarah. Profit for 2007 is Rs 15.15 million as compared to a loss of Rs 38.69 million for
the previous
year.
Askari Bank strictly complies with the Shariah principles and guidelines issued by the Bank's
Shariah
Advisor and the State Bank of Pakistan, Islamic Banking Department. All product offerings
are duly vetted
by our Shariah Advisor, Dr. Mohammad Tahir Mansoori, an eminent scholar and recipient of
the
President's Medal for Pride of Performance, as well as a Professor and Dean of Shariah Law
at the
International Islamic University.
Products
Askari Ijarah Bis Sayyarah
Shariah Compliant Car Financing

Askari Home Musharakah Financing

 1. ORGANIZATIONAL STRUCTURE

2. CONCLUSION
Askari Bank in particular remains strong in terms of their Balance Sheet as their asset base is
strong and their liabilities are more of long term. Along with this the current year performance is
considered extraordinary. Therefore positive expectation can be anticipated for the bank.

3. R E C O M M E N D A T I O N S
The global economic environment has changed, creating challenges and opportunities for the
world’s policy makers. Now there is a greater awareness that Banks are playing very important
role in the economic growth of any country. A.C.B.L, no doubt a positive contributor in this
respect but I think there are certain points which bank needs to adopt in order to serve in a more
effective and efficient manner. These points are as under:
1) A.C.B.L should create business opportunities for themselves. Nowadays there is a intense
competition between the banks. All the banks are expanding with aggressive approach.so Askari
bank needs to open more branches to capture the market.

2) Model Banks like Citibank, M.C.B Bank, Standard Chartered Bank are using media very
effectively to increase the business of banks.So A.C.B.L should need to use electronic media for
its business developments.

3) The working of the A.C.B.L Tufail Road, Lahore Cantt Branch is satisfactory rather very
good but still these working efficiencies are

far from the standard of modern banking system. Because there are many hurdles and
discrepancies in the existing system.

4) The bank should finance its loans in those projects that are meeting the required standard
and should avoid the political pressure.

5) The bank should bring forward the new talent as fresh knowledge and education is
considered very important to increase the efficiency and production.

6) There is need to make the outlook situations of branches in those manners that can
complete the other modern banks in the banking market.

7) Keeping in view the hard work by the staff members at all levels of management, staff
should be given bonus and increment every year. Nepotism should be avoided in this connection.

8) Separate desk or counter should be established in every branch to provide the information
as required by the clients. Normally the Personal Assistant of the Branch Manager act as a Public
Relationship Officer.

9) The environment of the offices should be comfortable so that

the client and staff must feel comfort during business in bank.

Unsecured loan are not to be provided in case of banks directions,

their families, companies or firms.

10) There are some employees untrained which decreases the efficiency of the bank branch. All
the employees should well trained.

11) 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 operation. In my opinion each
employee should have regular job change.
12) .People have to wait for re-cashing their cheques and for paying their School Fees, which is
not good for reputation of bank, it should be improved.

Obligations

Additional obligations affecting ACCBank and its customers

The bank must provide the customer with details relating to payment instructions, specifically:
a) the main characteristics of the payment service;
b) cut-off times;
c) execution times; and
d) information surrounding the options for amending/cancelling a payment instruction.

If customers provide correct payment details and the bank incorrectly processes the payment, the
bank must refund the customer and return the customer’s account to the state in which it was
prior to the incorrect / unauthorised payment being processed.

The bank must inform customers 60 days in advance if they wish to close the customer’s
account/terminate the service (EBB).

From 1 November 2009, the bank must inform customers of any change in Fees and Charges or
any changes in the Terms and Conditions on these products 60 days in advance of the change
taking effect.

Customers may request a refund in relation to a payment made on an account which was initiated
by or through a payee from the bank up to eight weeks after the date on which the funds were
debited from the account. Within 10 days of receiving such a request, the bank must either
refund the full amount or it will give the reasons as to why it is refusing the refund.

The customer is responsible for ensuring the correctness and accuracy of all payment instructions
relating to their account. The bank will have no obligation to check whether the information
provided with the payment is correct. If the customer provides incorrect payment details, the
bank will not be liable for the non-execution or the execution/defective execution of the relevant
transaction.

Upon becoming aware of an authorised or incorrectly executed payment transaction, a customer

must advise the bank without delay and no later than 13 months after the transaction has taken
place.

The EBB customer/authorised user must advise the Bank immediately if he/she thinks any of
their EBB authentication requirements (Digipass, User Name, PIN, Code) has become known to
someone else or that the Digipass may have been lost or mislaid or otherwise may be in the
possession of a person other than the Authorised User. If the customer does not inform the bank
immediately, the customer will be liable for some or all of the losses resulting from any
unauthorised transactions on the account(s).
The bank will provide a voicemail service on our EBB helpline (1850 721722) during non-
business hours to facilitate customers reporting lost/stolen/fraudulently used EBB authentication
requirements (Digipass, User Name, PIN, Code).

• Assisting customers with opening new accounts.

• Make loan payments.
• Deposit or cash checks for customers.
• Make with drawl's for customers.
• Update information to the customers on new banking products.
• Answer any questions for the customer or refer them to someone who can help answer
phones
• Balance cash drawers
• Process night deposits or mail deposits
• Provide excellent customer service by answering or referring financial questions to
correct supervisory staff.

Read more:
http://wiki.answers.com/Q/What_are_the_main_duties_of_a_bank_teller#ixzz1LqUGzVei

Employee
Employee satisfaction
Because employee motivation, dynamism and satisfaction are the driving force behind much of
the success of any company, particularly of financial institutions, Askari bank regularly measures
levels of satisfaction and involvement by surveying its staff. It uses the findings of these surveys
to take specific measures. These surveys have revealed that employee satisfaction has improved
in recent years.
Equal treatment and anti-discrimination
In its staff regulations, its selection and promotion policy, and its performance appraisal systems,
the KBC group does not make any distinction whatsoever on the grounds of sex, religion, ethnic
background, sexual orientation, etc. Moreover, KBC prohibits all forms of discrimination during
its recruitment and promotion processes.
Social dialogue
KBC works very closely with the employee organisations, holding monthly talks with the works
council and its committees, and consulting with the health and safety committees and union
representatives
Developing talent and managing knowledge
KBC makes an extensive range of opportunities for development available to its employees, who
can choose from a number of integrated types of training which complement and reinforce each
other (conventional learning, individual study, e-learning, learning on the job and mentoring).
Developmental needs are also an important focus of the job performance interviews with line
managers.

The development, integration and motivation of our employees is the main goal of our human
resources policy. The main lines of work are:
 • promoting stable and quality employment
• ensuring occupational health and safety
• social dialogue
• training and professional development
• ensuring equal opportunities and work life balance
• promotion of corporate volunteering

creditor
The rules surrounding creditors and debtors, then, are designed to allow for the fair judgment on
the repayment of debts, especially with regard to exactly what a creditor can claim from a debtor.
A trial might give a creditor a lien against a property or asset of the debtor, thus allowing the
creditor to seize that property in order to pay off the debt. This creditor/debtor relationship
matters significantly to the interactions between banks and their customers, as banks can give out
loans to customers or can buy up the loans that consumers made with other companies. As such,
banks often act in the creditor role. For more information on the relationship between creditors
and debtors and exactly how each is protected under law, follow the link.

PRODUCT AND SERVICES

The product & services of askari commercial bank limited are developed keeping in view the
customers needs & wants, & the expectation that the customer attaches with its financial
institutions.
A product ACBL includes all those services which customer normally required for effectively
managing his business.
ACBL offers the following financial services to its customers.
1) Deposits
2) Advances
3) Products
4) International banking services
5) Agency services to customers

1.DEPOSITS
One of the basic functions of commercial banking is to receive deposits. ACBL accepts deposits in both local &
foreign currency.
Local currency deposits
• Current Account
• PLS Saving Account
• Term Deposit
• Notice Deposit
• Askari Faida Account
• Askari Special Deposit Account
• Value Plus Saving Account
• Askari Advantage

Current Account
A current account is a running & active account, which may be operated upon any number of transactions during a

working day. The banker undertakes to repay these on demand & therefore theses account are called demand

deposits.

Saving Accounts

The saving account is usually opened by lower or middle class people so that they can meet their future

contingencies, as the objective of such account is to promoting the habit of thrift among people, the bank impose

certain restrictions on withdrawals from the saving accounts.

2. ADVANCES

Advances are major sources of earning of income for commercial banks. Banks attracts surplus balances from the

customers at low interest rates & makes advances at higher interest rates to the individuals or business firms.

ACBL offer these facilities in two forms:

• Funded facilities
• Non- Funded facilities
Funded facilities
In funded facilities the bank actually advances money against further repayment. These facilities are known as cash
credits
Non- Funded facilities

Non- Funded facilities are those in which bank substitutes its own credit for its customers.

These facilities includes:

1. Guarantee
2. Latter of credit

3.PRODUCTS

PERSONAL FINANCE
Personal Finance is a parameter driven product for catering to the needs of the general public
belonging to different segments. One can avail unlimited opportunities through Askari Bank's
Personal Finance. With unmatched finance features in terms of loan amount, payback period and
most affordable monthly installments, Askari Bank's Personal Finance makes sure that one gets
the most out of his/her loan. Once a good credit history is established, the door to opportunity
opens much wider.

MORTGAGE FINANCE
Askari "Mortgage Finance" offers the convenience of owning a house of choice, while living in it at its rental value.

The installment plan has carefully designed to suit both the budget & accommodation requirements. It has been

designed for enhancing financing facility initially for employees of corporate companies for purchase/ construction/

renovation of house. The maximum financing amount is Rs. 10 million with a repayment tenure upto 20 years.

BUSINESS FINANCE

In pursuance of the National objectives to review the economy of the country, ACBL is providing loans to small and

medium size business enterprises under Askari Bank's Business Finance Scheme. Our goal is to offer a loan, which

enables business community to receive the financing required by them based on their cash flows. Ore valued

customers can enjoy the convenience of getting financing on attractive terms with the minimum processing

turnaround time.

ASKCAR (Car Finance)

Yet another of our products, Askar offers the most convenient and affordable vehicle- financing scheme,

which provides our valuable customers an opportunity to own a brand new vehicle of their choice. With minimum

down payment, lowest insurance rates and widest range of available car makes and models, Askcar offers the best

value to our esteemed customers.

ASKCARD

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.

TRAVELLER CHEQUES

The range of our products and value added services enhances with introduction of Rupee Travellers Cheques

(RTCs) launched in March 2002. In spite of our constraint on issuing higher denomination of RTCs against

restrictions imposed by the Central Bank of Pakistan we have been striving to attain our shares with sizeable

portfolio. Total volume handled by the department during the year 2004 is Rs. 798 Million.
ASKPOWER
Askpower represents a useful tool with which to make secure payments without the need to have any account, a
debit or credit card. This card comes with a number of unique features and diversified usage capabilities like cash
withdrawal from ATMs, payment of utility bills through ATMs and internet Banking, transfer of balance to another
card and refill option. The prepaid card is
enjoying a great success all over the country.
VALUE PLUS

The first liability product launched by this unit is showing a remarkable acceptability in the market. The growth of

this product is witnessed by its share, which has presently reached at Rs. 1,079 Million even after lowering down the

profit rates due to sufficient liquidity in the market.

ASKARI MASTER CARD

When you successfully apply for an Askari MasterCard, we will not charge you any Joining Fee. It’s almost like you

are getting it for FREE!

Your card provides you with service at thousands of locations in Pakistan, and at over 23 million establishments

worldwide. As an added convenience, you will have the benefit of receiving your monthly billing in Pak Rupees,

regardless of the currency of purchase.

Think of the freedom this gives you!

LOW SERVICE CHARGES

Your Askari MasterCard provides you the experience of revolving your spending at comparatively low service

charges. In addition, the same rate also applies to cash advance obtained on your Askari MasterCard.

BALANCE TRANSFER FACILITY

With Askari MasterCard, you can avail an incredible offer of a
Balance Transfer at the exclusive rate of just 1.5%* per month.
A special privilege exclusively for Askari MasterCard members
FREE TRAVEL INSURANCE

Just purchase your travel tickets on Askari MasterCard and you are automatically covered under our Travel

Insurance Plan (in case of personal accident resulting in death or permanent disablement) for up to Rs.8,000,000/-

on a Gold Card and Rs.4,000,000/- on a Silver Card.

4) International banking services

Askari bank has a true global presence and can offer a variety of international banking products,
services and financial solutions to all cross-section of clients, tailor-made to their banking
requirements through one of the best international banking relationship networks both in terms of
strength and spread

The foreign exchange department provides the detail about the trade of thecountry the foreign
exchange covers imports, exports and foreign currencies. Ilearnt about LC opening, lodgment
and retirement and other ways of making animport. The foreign currency department shows the
currency come in and goesout of the country. Credit department covers all the schemes which the
bankoffers to benefit the people of the country.

On line remittance from Qatar via Doha Bank Limited.

Askari Bank has negotiated with Doha Bank Ltd. Qatar whereby remittances to Pakistan can be
sent using our branch network.

world using the vast correspondent banks network of Askari

Bank.

Our growing worldwide network of correspondent banks is already serving numerous customers
to route their home remittances favouring beneficiaries in Pakistan, necessary advisory is also
provided to facilitate smooth flow of transactions.

5) Agency services to customers

1) Collection and Payment of Cheques

2) Standing Instruction
3) Acting as correspondence
4) Collecting of bills- electricity, gas, WASA, telephone etc.
5) Purchase and Sales of stocks/ share-act as a banker to issue

On-Line Banking in Pakistan

22. In Pakistan On-Line Banking is not yet being practised at its full capacity. The State
Bank Of Pakistan (SBP) has not authorized On-Line payments and receipts due to absence of
safe and secure Internet browsers and sites. As Internet Culture has not been established in
Pakistan, the Internet in Pakistan is very insecure. The credit card numbers and banks pin codes
can easily be hacked so do to this reason only limited On-Line banking is allowed by the SBP
and it is being practised. Askari Commercial Bank has taken the lead in On-Line banking in
Pakistan. Its service is available for customers all around the country. Bank Alfalah also provides
On-Line banking facility but only for its Karachi branch and others like Sonairi Bank, ABN
Amro are also venturing in the field.
ASKARI BANK

23. Askari Commercial Bank provides following On-Line features.

• The facility to pay utility bills.

• Check the bank balance

• View the bank statement

• Pay school fees

• Transfer of funds among accounts.

• Change password and Pin Code

• There is a loan testing facility

• Updated currency exchange rates

• Product interest rates

• Product information

• Branch locations

• It is operational 24 hours a day

AGRICULTURE BANKING

The role of agriculture in Pakistan economy is of pivotal nature. Due to diverse geographical and climatic

conditions the country has tremendous potential for growth and development in agriculture. However, adequate and

timely financial assistance to the farmers will improve production potential of agriculture sector in the country. The

modern concept of agricultural credit envisages establishment of an efficient institutional credit system to serve as a

package of credit, supplies and knowledge for the overall strength of the farmers who at present suffer from low

productivity and financial insecurity. A successful credit evaluation system, therefore, should have the basic
ingredients to provide adequate amount at the right time and in the right form to help farmers in making a productive

use of loan funds.

ASKARI KISSAN AGRICULTURE FINANCE PROGRAM

 Askari Kissan Ever Green Finance
Askari Kissan Tractor Finance
Askari Kissan Aabpashi Finance
Askari Kissan Livestock Development Finance
Askari Kissan Farm Mechanization Finance
Askari Kissan Farm Transport Finance
Ask Card