Imran Mehmood

mc070200390

MBA (Finance)
Askari Bank Ltd.

Khanewal Branch
 Brief Introduction of the Askari
Bank
 Date of Existence October 9, 1991 by AWT (Army welfare Trust)
 Started operations during April 1, 1992
 Listed on KSE, LSE, ISE
 Business volume
 Assets over Rs. 206 Billion
 Over 8 Lacs Customers
Competitors of the Askari Bank
 National Bank of Pakistan
 Meezan Bank Limited
 Allied Bank Limited
 MCB Bank Limited
 NIB Bank Limited
 United Bank Limited
 Habib Bank Limited
 House Building Finance Corporation
 Khushhali Bank Limited
Organizational Hierarchy Chart
 Training Program

 Weekly Training Schedule

Agriculture - Finance Department

 Maintaining Database
 Completing files of Clients those request for Loans
 Providing necessary information about the loan
 Checking accounts of the customer in the
computer data base to giving current information.
 Computer Database Work

(Continue)
 Account Opening department
 How to fill the deposit Slip
 How to fill the different accounts Form
 How to fill the voucher for issuing of the
Cheque Book for the first time
 How to fill the requisition slip for the second
time issuance

(Continue)
 Account Opening department
 Formalities for opening an account
 How to issue the Cheque Book
 How to enter it in the register
 What are the procedures for the
issuing ATM card
 Clearing Department

Responsibilities

 1. Inward clearing

 2. Outward clearing

(Continue)
 Clearing Department

 Inward Clearing

 Entering the cheques lodged for inward clearing

e.g., cheque number, account holder name, cheque
number, bank name and amount to be paid

(Continue)
 Clearing Department
 Outward Clearing

 Same as entering cheque number account holder

name amount and Bank name
 REMITTANCE DEPARTMENT

 Demand Draft.
 Pay order.
 Traveler's Cheque
Structure of Finance Department

Departmental hierarchy

First Level
Senior Agricultural Credit Officer (SACO)
OG1
Second Level
Agricultural Credit Officers (ACO’s)
OG2
Third Level
Field Credit Officers
(Commission based staff)
 Functions of Finance
Department
Accounting system of the organization

1. Fully Computer Based Accounting system

2. Reliable Electronic data is used in decision making.
3. Generation of funds from Sales of Shares and Fixed Deposits from
Customers.
4. High rate of Interest on Loan and Different Services good Sources of
funds
5. Allocation of funds by providing Financial Services.
6. Double Entry Book keeping System
7. Foolproof
Finance system of the Askari Bank
 Based upon borrowing and lending
Use of electronic data in decision
making
1. Fully Computer Based Accounting
system
2. Reliable Electronic data is used in
decision making.
 Mobilization of funds

1. Advertisements
2. Sales Promotions Activities
 Generation of funds

1.Sales of Shares
2.Fixed Deposits from Customers
 Sources of funds
1.Fixed Deposits from Customer
2.Sales of Shares
3.General Banking Income
 Allocation of funds

1.Lending to Financial Institutions

2.Lending people on interest
E.g. Loans, Car Finance, House
Finance
 Critical Analysis

You are required to present all the financial

statements (balance sheet, profit and loss
account, cash flow statement, etc).
a) Financial analysis
• Ratio analysis
• Horizontal analysis
• Vertical analysis
b) Organization analysis in comparison with
its industry (or with its competitors)
c) Future prospectus of the organization
You are required to show complete
calculations.
 Financial Analysis
Ratio Analysis
Uses of Ratio Analysis
•Make comparison between investments
•Analyze working capital
•Adjusting the component of working capital if needed
Users of Financial Ratios

•Managers
•Stock Analyst
•Credit Analyst
Balance Sheet 2008
Profit and Loss Account
Cash Flow Statement
Statement of Changes in Equity
 Essential Financial Ratios for
2008
Current Ratio
 Current Ratio = Current Assets / Current Liabilities

= 19,984,449 / 17,774,976

= 1.12
 Working Capital

Working Capital = Current Assets – Current

Liabilities
=19,984,449 - 17,774,976
=2,209,473
 Times Interest Earned

Times Interest Earned = Earning Before Tax /

Interest Exp
= 461,382 / 5,915,615
= 0.077993919
 Debt Ratio

Debt Ratio = Total Debt /Total Asset

= 18,186,248 / 206,191,138
= 0.08820092
 Debt Equity Ratio
Debt Equity Ratio = Total Debt / Total Equity
= 18,186,248 / 12,034,895
= 1.51
 Return on Assets
Return on Assets = Operating Income / Average
Total Assets
= 2,531,035/ 206,191,138
= 0.012275188
 Return on Investment
Return on Investment = Net Income / Total Assets
= 2,531,035/206,191,138
= 0.012275188
Horizontal and Vertical Analysis
 SWOT Analysis of the Askari
Bank
Means
To analyze Strengths and weaknesses of the
organization, which are part of the internal the
environment

To analyze the threats and opportunities that are

part of external environment.
 Strengths
 Largest Financial Institution of Pakistan
 Strong Customer relationship management
 Vast & Integrated Network
 High Market Share
 Highest share price Rs. 418 in month of January ,
2009
 Military Sponsored Enterprise
 Weakness
 Lack of Marketing Promotions
 Furniture and Fixture
 White Elephant Branches
 Low number of branches
 Idle HR Department
 Opportunities

 Technological Advancement
 Facility for Illiterate people
 Emphasize on Agriculture Sector of Pakistan
 Closing White elephant branches
 Threats
 Economic Environment
 Political and Legal environment
 Threats from Competitors e.g. MCB
 Conclusion

Financialy Strong Bank

Rational Decision making from top management
at corporate level
Attraction for Depositors
Presentation of ethics from staff of bank
Creativity, Innovative and reliable
 Recommendations

High trained employees

Must create friendly environment with customers
Marketing promotions are necessary
Should deal in foreign currency
Should analytically analyze while issuing loan
Should increase the financing activites
Security system must be updated
Increase number of employees
Thank You