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Dedication
This piece of work is dedicated to my beloved parent and teachers
who always helped me out in times of woe and distress
and taught me to follow the path of truth, justice, honesty
and to all those who love and care about me
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ACKNOWLEDGEMENT
A milestone of this nature could never have been possible to achieve
without the support of a galaxy of some truly loving persons. The events
and the process leading to the accomplishment of my objective have given
me a realization in depth of immense blessing of Allah.
Many people have contributed in the successful completion of this
internship report. My great appreciation goes to the whole team of Askari
Bank Ltd DHA II Lahore. They provided me with every kind of help in
the completion of this report. Let me also thank my teachers of Comsats
Institute of Information Technology (CIIT) for the knowledge they
gave me and their guidance in every field. I would also like to thank
Professor Samar Kamal Fazli for his guidance. Last but not the least I
would like to thank my parents who provided me love, support, patience &
good knowledge.
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Executive Summary
This internship report consists of profile of the banking sector (industry),
its origin, the functioning, how the banks are classified on the based on
function, ownership etc and the trends being followed in the industry.
Besides the above mentioned this report is focused on Askari Bank and to
be more precise it discusses the inner details of the bank situated in Lahore
DHA II Branch. Askari Bank origin and its setup in Pakistan are also
discussed in the report.
Askari Bank came to Pakistan and gave banking sector a new horizon,
today Askari Bank has set firm foot in the industry.
The report further guides through the department and working of the
general banking. The activities taking place in the bank, the various
products of banking are discussed in the report. The report is a very good
description of what Askari Bank and its significance is.
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Introduction
The name bank is derived from a Latin word bancho meaning desk/bench,
used during the renaissance by the Florentines bankers, who used to make
transactions above a desk covered with a green table cloth.
The first modern bank was founded in Italy in Genoa in 1406; its name
was Banco di San Giorgio (Bank of St. George).
The word bank can be traced down to the ancient Roman Empire, when
money lenders would set up their stalls in the middle of an enclosed
courtyard called macella on a long beach called bancu
A banker or bank is a financial institution that acts as a payment agent
for customers, and borrows and lends money. Banks act as payment agents
by conducting checking or current accounts for customers, paying cheques
drawn by customers on the bank, and collecting cheques deposited to
customers' current accounts.
Banks borrow money by accepting funds deposited on current account,
accepting term deposits and by issuing debt securities such as banknotes
and bonds. Banks lend money by making advances to customers on
current account, by making installment loans, and by investing in
marketable debt securities and other forms of lending.
Banking Companies Ordinance of 1962 defines banking as “banking
means accepting, for the purpose of lending or investment, of deposits of
money from public; repayable on demand or otherwise, and withdraw able
by cheques, drafts, to order or otherwise”.
Industrial profile
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Banking is one of the most sensitive businesses all over the world and play
important role in the economy of a country and Pakistan is no exemption
and in a contemporary world of money and economy. The banking system
of any economy is an undeniable determinant of its growth as it provides
an efficient channel that routes funds from surplus sectors in the economy
towards deficit ones. Banks are custodian to the assets of the general
masses.
It influences and facilitates many different but integrated economic
activities like resources mobilization, poverty elimination, production and
distribution of public finance. It is purchase of car or building of a home
bank is always there to serve public better. Banks play positive and vital
role in the overall economic development of the country.
Pakistan has a well-developed banking system, which consists of a wide
variety of institutions ranging from a central bank to commercial banks
and to specialized agencies to cater for special requirements of specific
sectors. The country started without any worthwhile banking network in
1947 but witnessed phenomenal growth in the first two decades.
A major achievement of the reforms process has been the transformation
of a primarily state owned and weak banking sector into a healthier,
market based system, owned by the private sector. This has been
facilitated by the restructuring of major banks, ongoing consolidation of
the sector through mergers and acquisitions, strengthening of the
regulatory regime and improvements in transparency, corporate
governance and credit culture.
Classification of Banks
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The commercial banks are classified into various types on the basis of
their spheres of activities, ownership, domicile etc. The main types of
banks are: -
Classification on the basis of functions
Classification on the basis of ownership
Classification on the basis of functions
Central Bank
Commercial Banks
Exchange Banks
Saving Banks
Agricultural Banks
Industrial Banks
Classification on the basis of ownership
Public sector banks
Private sector banks
Cooperative banks
Classification on the basis of domicile
Domestic Banks
Foreign Banks
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Banks in Pakistan
Government Owned Banks:
First Women Bank Limited
Industrial Development Bank of Pakistan
Khushhali Bank Limited
National Bank of Pakistan
SME Bank Limited
The Bank of Khyber
The Bank of Punjab
The Punjab Provincial Co-operative Bank Limited
Zarai Taraqiati Bank Limited
Privatized Banks:
Allied Bank Limited
Habib Bank Limited
MCB Bank Limited
United Bank Limited
Development Financial Institutions:
House Building Finance Corporation
National Investment Trust Limited
Pak Kuwait Investment Company (Pvt.) Limited
Pak Libya Holding Company (Pvt.) Limited
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Pak Oman Investment Company Limited
Saudi Pak Industrial & Agricultural Investment Company (Pvt.) Limited
Small and Medium Enterprise (PBA subgroup under
formation):
First Microfinance Bank Limited
Pak Oman Microfinance Bank Limited
Private Banks:
Royal bank of Scotland (RBS)
Arif Habib Bank Limited
Askari Bank Limited
Atlas Bank Limited
Bank Alfalah Limited
Bank Al Habib Limited
BankIslami Pakistan Limited
Crescent Commercial Bank Limited
Dawood Islamic Bank Limited
Dubai Islamic Bank Pakistan Limited
Emirates Global Islamic Bank Limited
Faysal Bank Limited
Habib Metropolitan Bank Limited (Merged with Habib Bank AG Zurich
in October 2006)
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JS Bank Limited
NIB Bank Limited
Meezan Bank Limited
Mybank Limited
KASB Bank Limited
SILK Bank
Soneri Bank Limited
Standard Chartered Bank (Pakistan) Limited (Re-constituted in December
2006)
Foreign Banks:
Citibank N.A., Pakistan
Deutsche Bank AG, Pakistan
Hong Kong & Shanghai Banking Corporation Limited, Pakistan
Oman International Bank S.O.A.G., Pakistan
Barclays
Non-Member Banks & Development Financial Institutions:
Bank of Tokyo Mitsubishi UFJ Limited, Pakistan
Network Micro Finance Bank Limited
Pak Brunei investment Company Limited
Pak Iran Joint Investment Company
Rozgar Micro Finance Bank
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Tameer Micro Finance Bank Limited
Till the end of 1980s Pakistan banking sector was heavily regulated in
most of the areas of activities. The regulated and nationalized banking
system created an industry structure where competition was unknown to
management of the banks, Forced by the structural reforms agenda and the
desire to strengthen its financial system. Pakistan moved towards
liberalization and financial sector deregulation in 1990. It started with the
privatization of state owned commercial banks and induction of new ones
from private sector established a market base banking system. The
government seems to be conscious about improving the efficiency of
banking sector in Pakistan. Few considerable efforts have been made in
this regard which include enhanced capital adequacy, strengthening asset
quality, improving management and increasing earnings. Furthermore
interest rates deregulation, abolition of credit controls and further
developments in capital market have also led towards a more competitive
banking environment.
The deregulated and increasingly competitive environment poses a
challenge in terms of efficiency as the most efficient banks would survive
while the less efficient will be driven out of the market. This phenomenon
of deregulation started from when banks privatized to increase efficiency
and effectiveness. The government of Pakistan permitted small private
sectors banks to operate, which indulged in doubtful policies to promote
business. The public sector banking which constituted the backbone, thus
continued to suffer because of their approach, size and carried over
liabilities.
In the mean while western banks started entering into the business. They
with the support of ruling elite, concentrated on the big business, leaving
the routine business to local banks. This reduced the profitability of the
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local banks. Banking industry has grown and still growing as numbers of
banks are increasing and other new entrants are coming to Pakistan.
Pakistan Banks’ Association
Pakistan Banks’ Association (PBA) represents the Pakistan Banking
Industry. Established in 1953, its main objective is to coordinate the
efforts of the banking industry, and to share a common vision of progress
and development with its members.
PBA Membership is institutionalized and is available only to the Banks
operating in Pakistan. Currently there are 47 members, categorized into 6
groups (one of these groups is under formation). Its governing body is an
Executive Committee (EC) comprising of 14 members, represented by the
Chief Executives of the respective member institutions. Over the years the
role of PBA has broadened considerably. It is now referred to by the State
Bank of Pakistan in formulation of regulations for the banking industry,
and has been entrusted with the function of regulating and monitoring
certain services provided to the banking industry by outside service
providers. These service providers include ‘Professional Value’s’, who are
evaluators allowed to appraise the values of assets collateralized to banks,
and Security Agencies offering security services to the Banking Industry.
Trends of the Banking Industry
Pakistani Banking Industry these days has indulged itself in the following
activities to fulfill the needs of the society.
Consumer Financing
1. House financing
2. Auto financing
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Micro credit financing
Islamic Banking
Consumer financing:
Most of the commercial banks have ventured into consumer financing.
Consumer financing as the name indicates is simply financing for their
consumers that may include financing for household products. Consumer
financing also involves two major categories of products being financed
today i.e. House financing & Auto financing.
House financing is a part of consumer financing as it is also financing of
a product which is of a vital use to the consumers. It is basically providing
funds to the consumers especially for the purpose of buying or leasing a
house. In some banks it is also known as house loans.
Auto financing is another important concept undertaken by banking these
days and is without a doubt, the most profitable department as well for a
bank these days. Auto financing is also as the name indicates financing for
Automobiles
In the above mentioned trends there is a very visible benefit for the
customer that is easy purchasing of homes and automobiles. Banks pay the
amount required for the respective item of purchase and them the
customer pays back the bank in installment or as per his/her feasibility, the
earning of the bank in this procedure is what it get in return of doing the
favor to the customers, the bank charges a certain amount of interest on
the amount it gives to the customer for purchasing of the house or the car
and that is where they make profits.
Micro Credit financing:
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Micro financing focuses on the people with personal commitment to
improve their lot, do honest labor and have a genuine need for small loans.
Large loans imply few beneficiaries and similarly if big loans default their
losses can be equally hazardous. Converse is true for Micro Credit Loans.
Due to the tough economic conditions and failure of giant industrial
enterprise all over the world, people have started shifting from big loans to
small loans and similarly from Industrial financing to consumer financing.
Islamic Banking:
Islamic banking is a phenomenon which is continuously gaining
popularity in the country, a-lot of effort is being put in to make Islamic
banking penetrate through the conventional banking. The SBP has
initiated the process the process of converting conventional banks into
Islamic banks while the government has initiated a parallel banking
strategy of promoting Islamic banking alongside the conventional
banking. Islamic banking is not much different from the conventional
banking in terms of the processes being carried out but it deals with all in
a more Islamic way for e.g. they don’t charge interest in Islamic banking,
they only take profits which is in fixed amounts of money not interest rate
over the loan disbursed.
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Profile of the company (ACBL)
Askari Bank Limited (the Bank) was incorporated in Pakistan on October
9, 1991 as a public limited company and is listed on the Karachi, Lahore
and Islamabad Stock Exchanges. The registered office of the Bank is
situated at AWT Plaza, the Mall Rawalpindi. The Bank obtained its
business commencement certificate on February 26, 1992 and started
operations from April 1, 1992. Army Welfare Trust directly and indirectly
holds a significant portion of the Bank's share capital at the period end.
The Bank
has 227 branches (December 31, 2009: 226 branches); 226 in Pakistan and
Azad Jammu and Kashmir, including 31 Islamic banking branches, 22
sub-branches and a Wholesale Bank Branch in the Kingdom of Bahrain.
The Bank is a scheduled commercial bank and is principally engaged in
the business of banking as defined in the Banking Companies Ordinance,
1962.
Mission
To be the leading private sector bank in Pakistan with an international
presence, delivering quality service through innovative technology and
effective human resource management in a modern and progressive
organizational culture of meritocracy, maintaining high ethical and
professional standards, while providing enhanced value to all our stake-
holders, and contributing to society.
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Branches
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Board of directors
Lt. Gen. Nadeem Taj Chairman
Lt. Gen (R) Imtiaz Hussain Chairman Executive Committee
Maj Gen (R) Saeed Ahmed Khan Director
Mr. Zafar Alam Khan Sumbal Director
Dr. Bashir Ahmad Khan Director
Mr. Shahid Mahmud Director
Mr. Muhammad Riyazul Haque Director
Mr. Ali Noormahomed Rattansey Director
Mr. Muhammad Rafiquddin Mehkari President& Chief Executive
Mr. M. A. Ghazali Marghoob Company Secretary
Bank’s departmental functions
Finance department
Marketing department
Customer services department
IT department
Operations department
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Finance Department
Finance is the major driving force behind an organization, whatever the
business is, it may miss out any other department which will have an
effect but if it misses out finance the business can simply not run. The
basic thought before doing any business is to earn profits, and it is not
possible with the finance personal. If the firm doesn’t knows it expenses it
won’t know its surplus incomes as well. Good finance is the key to a
successful business.
The role of the support functions in the business management is as of any
front line business function as they primarily deal in managing the internal
dynamics of the organization to assist in accomplishment of business
objective, implementation of strategies and to enforce a sound control
environment of harmonizing profitability with governance goals.
It is one of the support departments of all the division of the bank. This
department is responsible for the following functions.
Preparation of financial budget for the annual operation of the bank.
Recording of transactions pertaining to the annually operations of the
bank.
Calculating and comparing the variances in the actual results with the
budgeted amounts
Reconciliation of various accounting records with the records for the
external entities.
Settlement of dues of the acquirer banks and other parties.
Scope of Activities of the department:
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The finance department of the bank is responsible for the budgeting,
accounting and reporting of all the operations of the bank.
Reporting line:
The finance department of the bank directly reports to the Group head
consumer finance and all the reports sent to the head office and other
authorities are under approval and authority of the group head Consumer
finance.
The finance department is of keen interest to the operations department. It
further includes different departments, each having a very vital role to
play.
Payables
Reconciliation
IP (Item processing)
Settlement
B.T.F
Balance transfer facility. Askari Bank offers a balance transfer facility to
all its members -an easy and convenient way to transfer and pay the
existing balances of their accounts, issued by other banks in Pakistan,
through their Banks account.
Marketing Department
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The marketing department handles the activities regarding the promotional
activities that are held time to time and making agreements with different
retailers for getting factory prices of their products in order to make their
products more attractive to the customers by cutting down prices on
buying from their credit cards, like special discount on purchase from
credit card.
Customer Services
Customer service is a very self explanatory term. Customer services
involve services like; after sale service and satisfying customer needs in
case they are facing any problems in the service.
They also handle the applications declined by verification department, by
reviewing them and sending letters to re apply for clients if they are
legible.
Operations Department
Survival and success of any organization requires its operations to be
tightly monitored and performed well. Askari Bank believes in handling
its operations in an efficient way. A department has been specially
designed to carry the operations held. The operations department has a
hawk’s eye over all the departments working for the bank but certain
departments are made a part of the operations department because of their
well known importance. The departments under the Operations
department are;
Embossing Department
Mailing Department
Recovery Department
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Collection Department
Authorization
Designing Department
Human Resource & Greeting Department
IT department.
- Embossing Department;
They receive data of clients; their work function is to print the account
numbers, it is very easy to say but this department has its own
significance.
- Mailing Department;
Mailing department has a very vital role in the structure their basic tasks
are listed below
Receive Mails; mail receiving is one of the jobs of this department this is
pretty tedious task, receiving mails for the entire bank, the mail include;
billing receipts, new applications, billing applications etc
Bills Mailing; The payment of and for the bank also follow the path which
pass the mailing department
Besides the above mentioned tasks though they are pretty tedious them
self, the mailing department is also responsible for the inventory
caretaking for the bank.
- Collection Department;
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These are the people who are always being “CURSED” by the customers
because to pay an amount from your very own pocket is not an easy thing.
Plastic money is just like honey when we use it. It gives us a yummy taste
because we are not using our own money, but when we receive our bills
we feel like having chilly taste with lots of black pepper of this yummy
honey. So people in collection department try to give customers black
pepper in a very pleasant way. They make calls, calls & calls (bundle of
calls) to late payment holders up till 3 months of bill issuance. They make
people afraid to collect due payment.
- Authorization;
This department monitors all transactions being made on the accounts
through the system. This department also looks for any fraudulent
activities.
- HR & Greeting Department;
Human resource department has a check on the entire system and make
sure that the employees are performing their best. Some activities
performed by HR department are:
Hiring new employees.
Contract Renewals.
Performance Appraisals
Increment in salaries
Bonuses Decisions
Leaves
Greeting employees are there to greet walk in customers and guide them.
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IT Department
IT is one of the most important sectors these days, no organization is
complete without the aid from IT department similar is the case with
Askari Bank, IT department has the most important role that is joining the
departments with each other, every department is linked with the other
department by means of networking of Computer and an intercom with
about 300 telephone set is laid in the center. The IT department has a lot
more to contribute in the center for instance everything nowadays is done
on computers and there are different software’s for different business
activities, the IT department keeps everything ready for every department.
This department though does not have a visible role but can without a
doubt be referred to as the back bone of the company.
GENERAL BANKING
ACCOUNT OPENING PROCEDURE:
Opening of bank account is the primary step to a relationship between the
bank and the customer. As the opening of a bank account by a person
makes him a customer of the bank, the account opening process must not
be considered just a formality. Knowing the customer should be the
objective of the banker and customer due diligence must be done prior to
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establishment of the relationship. The basic documents to be obtained at
the time of opening of account are:
Account opening form (Annexure ‘I’)
National identity card or Passport
Specimen signature card (Annexure ‘II’)
Additional documents depending on the constitution of the account
Know your customer (KYC):
While opening accounts of customers, all reasonable efforts
must make to determine the true identity of the customer and the sources
& utilizations of funds. To have a uniform procedure for customer due
diligence, a Know Your Customer (KYC) Form (Annexure ‘III’) has been
introduced which is to be completed by the account opening officer/
operations manager/ branch manager. During the course of meetings with
the customer to complete the account opening formalities, they should be
asked about the type of the transactions for which the bank account would
be used and any information gathered must be recorded on the KYC Form.
Any further information felt necessary and obtained during conversation
with the customer should be recorded on the KYC Form and placed on
record.
Informal session with the customer:
An informal session with the customer should be arranged
to assess and ascertain his/her credibility. While having a face to face
interactive session with the customer, following points must be borne in
mind, so that at the time of filling the KYC form, comments column
would contain all the required and necessary information.
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For a salaried person:
Name of employer
Designation of the customer
Approximate salary
Area of residence
Residence status whether owned, rented etc.
Expected inflow/ transfer of funds in the account
Overall background
Source of funds
Accounts with other banks
Any other information
For self-employed:
Name of the concern
Constitution of the concern
Field of operation
Nature of transactions
Expected inflow/ transfer of funds in the account
Source of funds
Legitimacy of the business
Accounts with details of facilities with other banks
Area of residence
Residence status whether owned, rented etc.
Overall background
Any other information
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For an organization:
Check all necessary documentation as mentioned in the manual has been
obtained and all necessary formalities of account opening have been
completed.
Obtain brief profile of the partners, directors etc. to ascertain their
credibility.
Take adequate measures to obtain all relevant information i.e. independent
verification of the partners, directors etc. and the organization.
Obtain a report from the customer’s other/ previous bankers
Clearly understand the pattern of transactions to be conducted by the
organization.
Make possible efforts to gather information relating to the customer’s
source of wealth to ensure that business is transacted only with customers
of repute involved in legitimate business activities.
Account opening officer/ manager operations/ branch manager should
personally meet the key individuals of the organization and conduct their
due diligence.
Account Opening Form:
A senior officer should be designated by the branch manager to
handle the account opening function. Prior to opening of the account, the
account opening form and all the related documents must be scrutinized
and approved by the branch manager personally. It must be ensured that
all columns of the account opening form are correctly & properly filled
and the customer has read & understood Rules & Regulations for conduct
of accounts that are printed on the reverse of the account opening form.
No column of the form should be left blank and columns not applicable to
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a particular customer should be marked so to guard against unauthorized
additions. Following guidelines must be followed in this regard:
Title of account must be in block letters and it should corroborate the
name on the National Identity Card/Passport.
The type of account i.e. Current, PLS or Term must be clearly mentioned.
The status of the account holder i.e. Resident or Non-Resident must be
specifically marked.
The currency in which the account is to be opened must be specified.
Full name of the customer along with the father’s/ husband’s name, NIC
number/ Passport number, place of birth, NTN, occupation & occupational
details including occupational address (the occupation must be clearly and
specifically defined, vague terms such as business, trading, service etc. are
insufficient, the extract nature of the occupation or the place of
employment must be ascertained and recorded) personal communication
details & details of Next of Kin, as applicable must be recorded.
Instructions for deductions of Zakat must also be noted on the AOF.
Any other instructions such as holding of mail etc. must also be mentioned
on the AOF.
Terms of operation of the account whether singly, jointly, by either or
survivor or jointly by any of the authorized signatories of the account must
also be noted.
Introduction of an account
To ascertain the credibility of the customer, the account must be
introduced by another account holder.
Preference should be given to introduction by an existing account holder
of the branch. Emphasis is being made for introduction by an existing
account holder because the existing account holder’s integrity has already
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been assessed by the branch at the time of opening of the account of the
introducer. Such introduction must be accepted.
In case where an existing account holder of the bank is introducing the
account, the account opening form must be sent to the concerned branch
where the introducer is maintaining his account for verification of the
introduction and the account of the customer should be opened only upon
receipt of the verified Account Opening Form. Alternatively, the
signatures of the introducer can also be verified through On-line Banking
System.
Where the introducer is not an account holder of our bank, the
introduction should only be accepted and account opened after having the
signature of the introducer verified from the bank where the account is
being maintained. The signature of the verifying authority must be
authenticated from the Authorized Signatures Book of the bank.
Introduction from employees may also be accepted but should be
discouraged. In cases where a staff member introduces the account, it
should only be accepted when the employee personally knows the
customer’s background/ activities.
Where the customer is bringing in substantial deposits and a customer
maintaining a nominal balance introduces the account, discreet market
investigation must be done for such a customer.
Only verification of signatures of the introducer is not sufficient to
establish a new account relationship and the account must only be opened
if the branch is satisfied with the antecedents of the customer.
Regulation:
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State Bank of Pakistan Regulation M-1 of Prudential Regulations for
Corporate/ Commercial Banking relates to Account Opening and thus it
has been made an integral part of the this Manual as Annexure ‘IV’.
Status of customer
RESIDENT:
A resident would mean any person residing in Pakistan and
holding a Pakistani Nationality or an expatriate having a valid permit for
residing in Pakistan or an employee of a consulate of a Foreign Country or
firms which are incorporated abroad but operate in Pakistan or a Judicial
Entity licensed to operate in Pakistan.
NON-RESIDENT:
Individual firms and companies resident in countries outside
Pakistan are designated as Non-Resident. All Pakistani Nationals and
persons domiciled in Pakistan except persons holding office in the service
of Pakistan who go out of Pakistan for any purpose viz., employment,
study, business, pleasure etc. are treated as Non-Resident for so long as
they remain outside Pakistan and all such accounts are regarded as
accounts of countries in which the account holder is residing. Non-
Resident accounts can be categorized as follows:
Pakistani nationals permanently residing and domiciled abroad
Pakistani nationals who are abroad for short visits
Foreign nationals residing abroad
Foreign nationals ordinarily residing in Pakistan but gone abroad for short
visits.
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Where an account of a resident is held jointly with a Non-Resident, it shall
be treated as a Non-Resident Account.
TYPES OF ACCOUNTS
1) Current Account
It is an account in which profit is paid on the balances. Any
individual, firm, charitable institution, corporation, association etc, and
residents as well as non-residents can open and operate a current account.
2) Profit and Loss Sharing Account
It is an account in which profit is paid on the balances.
Depending on the nature of the account the profit is calculated and
credited to the account monthly, quarterly or bi-annually. Temporary
Running Finance Facility is not extended to PLS Accounts.
Profit Calculation and Payment
Depending on the nature of the account
i.e. whether the profit is to be calculated on minimum monthly balance,
average monthly balance or on daily product basis, the same must be
defined in the system. The indicative rates of profit are to be fed into the
system which would then automatically accrue the profit and credit the
account on monthly, quarterly or half-yearly basis as the case may be.
Deduction of withholding tax on profit
The system automatically calculates the
amount to be deducted as withholding tax currently 10% for residents and
30% for non-residents on profit paid and credits the respective tax payable
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head for onward payment to the tax authorities. The withholding tax so
deducted must be deposited in the Govt treasury within seven days of
deduction. Withholding tax on profit shall not be deducted if the customer
submits a valid tax exemption certificate issued by the Income tax
Commissioner.
Deduction of Zakat
Zakat would be deducted @ 2.5% on the credit
balance over and above the declared NISAB for the year. PLS account
holders would be required to furnish a Zakat Exemption Certificate on the
prescribed format to be exempted from this compulsory deduction. The
exemption certificate must be executed and submitted to the branch, one
month prior to the month of Ramadan. Signatures of the customers must
be verified on the Zakat Exemption Form. A check has to be applied in the
system in case of Zakat Exemption failing which the system would
automatically debit the same from the account on the 1st day of Ramadan
each year. The NISAB and procedure for deposit of Zakat is circulated
each year before the 1st day of Ramadan by the systems and operations
department, Head Office.
3) Profit and Loss Sharing Term Deposit Receipt
PLS TDR is a time deposit for a fixed tenure in the shape of
a deposit receipt payable on demand. The rate of return applicable on PLS
TDR is based on the indicative rates of profit declared by the systems and
operations department, Head Office. Full account opening formalities
including KYC procedure should be followed for issuance of PLS TDR.
The customer however should be encouraged to open an account. As the
PLS TDR is in the shape of a deposit receipt, no cheque book is issued. In
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case of deposit through cash, voucher would be prepared by the concerned
officer and handed over to the customer for deposit of cash with the teller.
Silent features:
It is not negotiable
It is not transferable
Rates applicable on the original Term Deposit would be applied on the
whole completed period in case of late encashment
The encashment could be made either in cash over the counter or credited
to an account in case an account is maintained with the branch issuing the
PLS TDR
Withholding tax at 10% for residents and 30% for non-residents would be
deducted from the profit amount
In case where the instructions are for roll over on maturity, same would be
rolled over and converted into a new PLS TDR
Preparation of a PLS TDR:
Each branch is supplied with a stock of pre-numbered
printed blocks of PLS TDR. The same being security stationery must be
kept under lock and key in dual custody and the running block, which is in
use and in possession of the concerned officer, must be kept in the safe at
the end of the day. The PLS TDR is in two parts, the Counterfoil that is
retained by the bank as a permanent record and the Receipt, which is given
to the customer.
While issuing the PLS TDR following is recorded:
- Amount of deposits in words and figures
- Tenure
- Name of depositor
- Maturity due
- The amount in figures is imprinted by a cheque writer
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- Signed by two authorized signatories as per signing instruction
The PLS TDR is delivered to the depositor upon acknowledgement which
is his signature on the reverse of the counterfoil which would be verified
from the signature on the Account Opening Form.
Due Date Diary:
A Due Date Diary shall be maintained for maturity of TDR’s.
FOREIGN CURRENCY ACCOUNTS
Foreign Currency Accounts can be opened in US Dollars, Pound sterling,
Japanese Yen and Euro for both resident and non-resident. The account
opening procedure would be discussed and the following types:
i. Current
ii. Saving
iii. Fixed Deposit
Additional requirements and exceptions are outlined hereunder:
No Zakat is deducted
Interest on Saving account and Fixed Deposit are circulated by the
International Division
Prior approval of International Division would be sought for deposits of 3
months and above
Deposit in cash should be avoided if the retention period is less than 2
weeks
All deposits and withdrawals in all types of foreign currency accounts
along with balances in each foreign currency are to be communicated to
the Treasury Division on a daily basis as per the cut off time.
Deposits in cash would be subject to cash handling charges as per
Schedule of Charges in force.
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Safe Custody & Deposit Facility
Safe Custody Facility
Bankers accept valuables from customers as they have adequate security
arrangements.
Banker-Customer Relationship is based on the contract of bailment.
Bailment:
It is the delivery of goods by one person for some purpose upon a
contract that the goods shall when the purpose is accomplished shall be
returned or otherwise disposed of according to the directions of the
persons delivering them.
Obligations of the banker:
Banker should take proper care
Bailee has to return the goods subject to the demand from the bailor
Banker should not use the articles
Banker has to deliver the goods to the customer according to his
instructions
Receipt of securities:
Sealed Boxes:
- Bank accept sealed boxes of convenient sizes
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Banker Bailee
Customer Bailor
4
- While accepting a box banker should see that the box is seal with the
customer’s seal
- Words “CONTENTS UNKNOWN” should be prominently written on
such boxes
Sealed packets containing wills:
- Banker also accepts from customers for safe custody wills or sealed
packets said to contain a will
- With the instructions to deliver the packet after his death to a named
person
- Before delivering the packet banker should satisfy himself that the person
is named as an executor in the will
Safe Custody Receipt:
In case of shares, securities or articles
- Name & address of customer
- Mode of operation
- Full particulars of shares/securities
Delivery of securities
Full Delivery: Customer has to surrender receipt duly discharged/signed
by him
Part Delivery: Customer has to submit a delivery order along with receipt
The bank will strike out the delivered articles from the receipt
Safe Custody Facility
Banker Customer Relationship
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Lockers cabinets are installed in separate rooms
Each locker has only one key to be used by the customer
The number of the key and the locker to which it relates are not the same
2nd key is known as master key it is applied by the banker while opening
the locker along with the key of the customer
Operations of locker
Locker operations are controlled by contract, which contains the rules and
conditions which govern the vault operations
So contract is the basic document that set out the relationship between
banker and a customer
Guidelines to minimize improper access
In case of joint locker, never deviate from its terms
Never allow access even to an authorized agent on notice of death, mental
incapacity or in solvency of the licensee or one of the several joint
licensees until legal requirements have been properly fulfilled
Never allow excess if served with an attachment order or other restraining
orders without first consulting the legal department
Customer’s keys should never be in the possession of the custodian of the
vault
Licensing of lockers
Lockers can only be rented out to the legally capable persons
Can be allotted singly or jointly
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Customer Lessee
Banker Lessor
4
Filling up and signing of application form and SS card
Admission of signatures
Pasting of application forms
Allot locker from the “locker chart” and mark locker number so allotted in
pencil on the chart
Demonstrate operation of the locker to the licensee
Keys of the un-rented lockers and those surrendered by the licensees must
be kept in the safe under dual control of the officers
Rent Key Deposits
Initial recovery of rent & key deposit must be recorded on application
form
Recovery of charges are to be balanced on monthly basis and record of
each licensee of lockers is to be maintained in locker issue register
Record of key deposits and their subsequent refunds is to be made in the
locker issue register
As rent of locker is received in advance the custodian of locker must
check the record and diaries them for necessary compliance
In case rent is not deposited within 7 days from the date it becomes due
the licensee be requested to deposit the rent, subsequent reminders be sent
on monthly basis and if after 4 reminders the rent is not received a notice
be sent through Registered A/D giving therein 30 days to deposit the rent
and in case of failure the locker will be broken open
VOUCHERS
Dr: Cash / Party’s Account
Cr: Income Account Rent-Locker
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Cr: Sundry Deposits-Key Deposits
Forced Opening of Locker
In the extreme event of forced opening due to termination of lease
agreement for non payment of rent locker may be opened subject to:
Prior approval of Head Office
In the presence of
i. Notary Public
ii. Custodian of Locker
iii. Branch Manager
iv. Resident Authority
After the force opening of locker:
Remove contents
Prepare inventory of the removed articles in quadruplicate
i. Original copy of Notary Public
ii. Duplicate is to be sent to the licensee through registered A/D post
iii. 3rd copy is to be kept along with the articles of the locker in the packet
iv. 4th copy is retained as office copy by the custodian of the lockers
The packet containing the removed articles and inventory is sealed in the
presence of all the persons, mentioned earlier.
The packet is retained under lien against unpaid rent of the locker and
other expenses incurred on the forced opening.
If the contents remained unclaimed for 6 months, rent and other dues have
also not been paid, then the licensee be given a 30 days notice, after Head
Office approval, stating that articles in whole or part will be sold to
appropriate the proceeds towards the recovery of dues
Surplus amount, if any, shall be remitted to the ex-licensee
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Breaking open lockers
In case the locker is required to be broken open by the licensee due to loss
of key following steps to be taken:
1) Letter of request from the licensee on the prescribed format
2) Verification of signatures
3) Approval of manager
4) Arrangements for breaking open and replacement of lock to be made
5) Licensee is asked to remain present in the bank at that time
6) Locker should be broken open in presence of
Licensee
Custodian of locker vault
Manager operations
7) After breaking open the licensee should remove his articles from the
locker
8) A certificate as per specimen is obtained from the licensee, which
contains that:
Locker was broken open on his request
In his presence
He has received the contents
He has checked the contents and found in order
REMITTANCES
“Transfer of funds from one place to another”.
Products:
Demand draft (intercity)
Mail transfer (inter/intra city)
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Telegraphic transfer (intercity)
Pay order (intercity)
Rupee traveller’s cheques (inter/intra city)
Online transfer of funds (inter/intra city)
Know Your Customer
The officer in charge of remittances department should check the
following registers on daily basis
Inward Remittances Register
Outward Remittances Register
Travellers Cheques Register
Clear & complete particulars of the beneficiary of outward remittances
should be obtained & recorded in the Remittances Application Form
Genuineness of funds being remitted should be investigated keeping in
mind following factors:
Debit in the account is not an aggregate of smaller credits
Deposit of cash in account immediately prior/along with request of
remittances
Several accounts are not being debited to build up the aggregate amount of
remittances where nature of business does not justify
The account is not being used only for the purpose of effecting/receiving
remittances/transfer of funds to other accounts without any business
personal banking related transactions
While handling remittances it should be ensured that the amount is in line
with the business size/profession of beneficiary
All electronic/telegraphic transfers should bear the name/address of
remitter
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Branches should ensure purpose & genuineness of large purchase of
multiple monitory instruments of significant amount by the customer
Due notice must be taken of unusual instructions such that remitted funds
are expected back through some different source/country
Large remittances to/from countries generally associated with the
production/distribution & making of narcotics, illegal weapons & other
unlawful trades should be monitored
Genuineness of funds being remitted should be investigated keeping in
mind following factors:
Debit in the account is not an aggregate of smaller credits
Deposit of cash in account immediately prior/along with request of
remittances
DEMAND DRAFT
Written Order
To pay Money
Drawn by one office of a bank upon another office of same bank
Uses:
One of the most reliable modes of transfer of funds
Used for intercity remittances of funds
Eligibility Criteria:
Should not be a:
Minor
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Illiterate Persons
Insane Persons
Can be issued to:
Individuals
Joint Names
Business Concerns
Can be issued against:
To the debit of customer’s account
- Against cheque
- Debit authority
Issuance of DD
Filling up of application form
Recovery of charges
Deposit of cash/cheque
Entry in system for preparation of DD, IBCA, printing of DD issue
register
Delivery of DD
Payment of DD
On receipt of IBCA
Scrutiny of IBCA
Verification of signatures of officers of issuing branch
Entry in the system
Vouchering
Payment through suspense account
Special care must be exercised
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Entry in system
Intimation to drawee branch
Payment through suspense account should be authorized by the Manager
Operations
Cancellation of DD by authorized officers
Issuance of Duplicate DD
Written Request
Verification of Signature
Marking in the System
Intimation to Drawee Branch
On receipt of reply from Drawee branch
Intimation to purchaser
Letter of indemnity
Duplicate DD, which must contain on its face following wording:
“Duplicate DD issued in lieu of original No-……….. Dated ……….
Reported lost”
Noting in DD system
Intimation to drawee branch
Cancellation of DD for refund
Written request by purchaser
Verification of signature
Genuineness of DD is established
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Scrutiny of DD specially on the grounds that it has not been negotiated or
duplicate of the same has been issued
DD is cancelled by tearing the signed portion of DD and marking the same
as “Cancelled”
Mark cancellation of DD and date of cancellation
On original application form
DD system
Refund of Amount
If purchaser is not account holder than the amount of DD is
credited in his account otherwise refund is made through Pay Slip.
The original DD is defaced & stapled with the Debit Voucher of Suspense
account
On receipt of IBCA from the drawee branch entry of suspense account is
reversed
Issuing Branch Drawee Branch
Receipt of application o Scrutiny of
Cancellation of DD Intimation
Dr: suspense a/c DD cancelled System
Cr: party’s a/c. cash o Vouchering
Dr: Bills payable a/c
DD payable
Intimation to drawee branch Cr: Mo a/c of Issuing
Branch
On receipt of IBCA
Dr: MO a/c of drawee branch
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Cr: suspense a/c DD cancelled
Crossing
Section 123 of N.I.Act 1881:
Where a cheque bears across its face an addition of the words and
company or any other abbreviation between two parallel transverse lines
simply, either with or without words not negotiable the addition shall be
deemed to be a crossing and cheque shall be deemed to be crossed
generally.
Cheque Crossed Account Payee
Sec 123 A:
Where a cheque crossed generally bears across it’s an addition of the
words “account payee” between two parallel transverse lines constituting
the general crossing, the cheque besides being crossed generally is said to
be crossed.
Special crossing
Sec 124:
Where a cheque bears across its face an addition of the name of the banker
either with or without words not negotiable that addition shall be deemed a
special crossing and the cheque shall be deemed to be crossed specially
and be crossed to the banker.
Development of crossing
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A bank clearing clerk named Irvin originated the idea which finally led to
the establishment of the London Clearing House at Lombard Street in
1775.
Protection available to the Collection Banker
Sec 131 of N.I.Act 1881:
Condition essential for obtaining protection:
Cheque must be crossed
Payment must be received by the banker on behalf of the customer
Collecting banker must act in good faith
Role of SBP
Being central bank, SBP is responsible for smooth operation of clearing
system. SBP acts as bankers’ bank.
NBP performs this function on behalf of SBP where office of SBP does
not exist.
Clearing Membership
All scheduled banks are full fledged members of clearing house.
Non-scheduled banks can be sub members through a scheduled bank.
Application in writing with a nominal fee is needed for membership.
The membership ceases when a bank ceases to be a scheduled bank.
Outward clearing at branches
Receipts of Instrument
Instrument must be accepted on the Bank’s pay-in-slip
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Deposit slip should contain
Instrument number
Name of drawee bank and branch
Signature of depositor
Immediately on receipt on instrument
Affix bank crossing & clearing stamp on the face of the instrument
Proper discharge on the reverse of instrument
Depositor account number on the reverse for ease of any subsequent
reference
Computerized bank wise schedule is prepared in duplicate one copy of
which is retained in the branch while other copy is sent to the main branch
along with instruments
Consolidation bank wise summary is also prepared in duplicate one copy
of this is sent to the main branch along with outward clearing
Guidelines for giving discharge on instrument
If instrument is Bearer/open, draw in favour of a limited company
If instrument is bearer but crossed “Account Payee Only”
If instrument is bearer but crossed generally (& Co/Not negotiable) drawn
in favour of a limited company.
If instrument is order (whether crossed or not deposited in payee’s
account)
If instrument is order & crossed generally & being deposited in endorsee’s
account
If instrument is bearer & crossed either generally or crossed not
negotiable, drawn in favour of a limited company
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If instrument is mutilated but being credited to a well known customers
account as payee
If instrument is collected as agent for another bank
In case DD being deposited in a well known customer’s Account as payee
In case of cheque being collected in special clearing for payee
Collection
Article 2 of URC 522
For the purpose of these Articles
“Collection” means the handling by banks of documents as defined in
sub Article 2(b), in accordance with instruments received, in order to
i. Obtain payment or acceptance OR
ii. Deliver documents against payment &/or against acceptance
iii. Deliver documents on other terms & conditions
Documents means financial documents and/or means commercial
documents
i. Financial document means bill of exchange, promissory notes, cheques or
other similar instruments used for obtaining the payment of money
ii. Commercial documents means invoices, transport documents, documents
of title or other similar documents or any other document what so ever, not
being financial document
Clean collection means collection of financial documents not
accompanied by commercial documents
Documentary collection means collection of:
i. Financial documents accompanied by commercial documents
ii. Commercial documents not accompanied by financial documents
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BUSINESS OPERATIONS
Organizational chart
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Marketing strategy
Most companies use the term marketing mix to describe the combination
of elements that they use to achieve goals for selling and promoting their
products and services. When the company decides which elements it will
use, it calls that particular marketing mix its marketing strategy.
The major marketing management decisions can be classified in one of the
following four categories:
Product => physical item/service provided by bank
Price => commission received
Place (distribution)=> placement of product/service
Promotion => means of spreading the words about the
product/service
These variables are known as the marketing mix or the 4 P's of
marketing. They are the variables that marketing managers can control in
order to best satisfy customers in the target market.
1) Product
“The end result of the manufacturing process, to be offered to the
marketplace to satisfy a need or want.”
Askari Mahana Bachat Account (1 + 3 Years Term)
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“Earn Rs. 925/- per month on investment of every Rs. 100,000/- for one
year!"
“Earn Rs. 1,000/- per month on investment of every Rs. 100,000/- for
three years!”
Askari Mahana Bachat Account is a Term Deposit facility available to
individual customer with the option of 1 and 3 Years tenure. It has been
designed keeping in view savings needs of individual investors who don’t
want to block their funds for longer terms, with a competitive rate of
return paid monthly on the 1st of every month. A financing facility up to
90% will be available for customers if required.
Features:
Product type Term deposit
Eligibility Individual only
Balance requirement Mini Rs.50, 000/- max Rs.10, 000,000
In multiples of Rs.25, 000/-
Tenure 1+3 years
Profit payment Monthly - 1st of every month
Profit rates Competitive
Servicing Available at all Askari bank branches
Financing limits Upto 90% of the principal amount
Askari Roshan Mustaqbil Deposit
Askari Bank has launched the Askari Roshan Mustaqbil Deposit, a saving
plan specially designed for individual investors who wish to invest for a
regular return at a later stage while keeping their principal amount intact.
With Askari Roshan Mustaqbil Deposit you can double your investment in
a time period of ten years. Invest in the form of monthly deposits for five
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years and get paid back the same amount for the next five years while
receiving principal amount in full at the end of the tenure.
Features:
Product
Type: Term Deposit
Eligibility: Individuals Only
Balance
requirement
s:
Minimu
m Rs.
5,000/-
Maximu
m upto
Rs.
50,000/-
In
multipl
es of
Rs.
5,000/-
Tenure: 10 Years (5 + 5)
Profit
payment:
Monthly – on completion of first 5
years
Profit
Rates: Competitive
Servicing: Available at all Askari Bank branches
Financing
Limits:
Upto 90% of the principle amount
after completion of first 5 years
Askari Deposit Multiplier Account
“Value of initial investment of Rs. 100,000/- will increase to Rs.
265,000/- at maturity!”
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Aim higher with your investments with Askari Deposit Multiplier account.
This account is for individual investors whose purpose is long term
savings with high returns. With a tenure of 10 Years and a competitive
rate of return on maturity this account is ideal for investors who wish to
start saving for their future today.
Features:
Product
Type:
Term
Deposit
Eligibility:Individuals
Only
Balance
requirements:
Minimum
Rs. 50,000/-
Maximum
upto Rs.
10,000,000/-
Tenure: 10 Years
Profit
payment: On maturity
Profit Rates: Competitive
Servicing:
Available at
all Askari
Bank
branches
Financing
Limits:
Upto 90%
of the
principle
amount
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Askari value plus deposits
“The Best You Deserve”
Askari Bank leads the way, yet again with the introduction of Askari
Value plus Rupee Deposit Accounts, which promise greater financial
freedom and security, in an un-matched way.
Types of Value plus Account
1. Value Plus Current Account
2. Value Plus Saving Account
3. Value Plus Time Deposits
Why Askari Value Plus Account?
1. Free issuance of Debit Card
2. Free global accidental insurance coverage against debit card irrespective
of balance in the account or age of the cardholder
3. Free ATM Cash Withdrawal insurance
4. Free online funds transfer facility
5. Free internet banking services
6. Free of cost 24 hours global accidental insurance coverage up to Rs. 2
million
7. Facility of Supplementary Debit Cards
8. Monthly returns on saving deposits
9. Partial encashment facility for time deposits
10. Automatic roll over facility for time deposits
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11. Our un-matched service quality
ASKCARD
Askari Bank is committed to provide innovative and competitive solutions
to banking needs in a more efficient and personalized manner. 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 Askari Bank's Debit Card.
Askari Debit Card means freedom, comfort, convenience and security, so
that one can have retail transactions with complete peace of mind. Askari
Debit Card is new shopping companion which enhances quality of life by
letting you do shopping, dine at restaurants, pay utility bills, transfer
funds, withdraw and deposit cash through ATM anywhere, anytime.
"Convenience at its best"
Why ASKCARD?
Free of Cost (24) hours Global Accidental Life Insurance upto Rs.
500,000/- for every cardholder irrespective of balance in the account
Free ATM Cash Withdrawal Insurance upto daily cash withdrawal limit of
the cardholder against snatching, armed hold-up or forced deprivation of
money
Free issuance of Debit Card for new Value Plus Accountholders
Umrah Tickets for 2 lucky cardholders (Each year)
Home insurance of 10 lucky cardholders (Each year)
No hidden charges
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Free from carrying cash or cheque books
Free Funds Transfer Facility
Free Utility Bills Payments through ATM’s
Shopping Facility at POS terminals
Maximum daily cash withdrawal limit
Balance Inquiry, Mini Statement
Supplementary Cards
Un-matched Online Real-time Services
Askari rupee traveller cheques
Askari Bank Limited has always remained at forefront in introducing
innovative and unique products in banking sector. Financial instruments
provide greater financial freedom and security in an unmatched way to our
valued customers.
Askari Bank offers you its "Rupee Traveler Cheques" eliminating all
financial risks while traveling. So avoid risk of carrying cash through
Askari Bank's Rupee Traveler Cheques.
"You’re Best Travelling Companion"
Why Askari Bank's Rupee Traveler Cheques?
1. Free issuance
2. Free encashment
3. Profit will be offered at the time of encashment*
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4. Nationwide acceptability
5. Facility of encashment in cash to the purchaser
6. Facility of encashment through clearing
7. No purchasing limit
8. Valid until encashed
9. Easily transferable
10. Account relationship not mandatory
11. Fastest refund procedure in case of loss / theft
12. Safe & secure mode of funds transfer
13. Available in Rs. 10,000 Denomination at all branches of Askari Bank
14. Perfect substitute of your cash
Smart Cash
Product Featuring:
Borrower:
Resident
Pakistani
Nationals
Facility:
Personal
Line of
Credit.
Financing
Limits:
Maximum
upto Rs.
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500,000/-
(Clean)
Maximum
upto Rs. 1
Million
(Secured)
Tenor: One year
(renewable).
Repayment
:
Monthly
debt
servicing on
the
outstanding
balance.
Markup
Rates: Competitive.
Servicing:
Available at
all Askari
Bank
Branches
Balance
Transfer
Facility:
Available.
Eligibility to Apply:
Age: Between
21 to 65
Years.
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Income: Minimum
gross
monthly
income
Rs.
25,000/-
only.
Employment:
a)
Salaried:
Minimum
length of
confirmed
service
with
present
employer
is six
months
with a
total
length of
one year
service. b)
Self
Employed:
Minimum
1 year in
business.
(Against
security).
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Charges/
Fees:
As per
current
schedule
of charges.
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 than
ever before.
Product Featuring:
Borrower:
Resident
Pakistani
Nationals.
Facility: Term
Finance
Financing
Limits:
Maximum
upto Rs.
500,000/.
(Clean)
Maximum
upto Rs. 1
Million.
(Secured)
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Tenor:
Maximum
upto 5
Years
Repayment
:
Monthly
Installments
Markup
Rates:Competitive
Servicing:
Available at
all Askari
Bank
branches
Balance
Transfer
Facility:
Available
Eligibility to Apply:
Age: Between
21 to 65
years.
Income: Minimum
gross
monthly
income of
Rs.
10,000/-
only.
Financin
g Limits:
Maximum
upto Rs.
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500,000/.
(Clean)
ASKARI MORTGAGE FINANCE
Product specification:
Ever since the inception of life, shelter has been rated among the primary
needs of mankind, owning a home for oneself still remains an exclusive
dream for many. Askari Bank has made the realization of your dream to
have a house of your very own possible. Whether you plan to build a
house, tailor made to your requirements or buy a constructed house,
Askari mortgage finance enables you to pursue your goal without any
problems. Mortgage is a premium home financing product for customers
aged between 23 – 65 years belonging to the upper, upper middle and
middle income groups, residing in the urban areas of Pakistan.
Business Finance
You always wanted to put in that extra money into your business, which
makes it grow... and grow. Now you can stop worrying about your daily
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cash requirements, and start enjoying our unique Askari Business Finance
facility.
Product Featuring:
Borrower: Resident
Pakistani
Nationals.
Facility: Running
Finance/Term
Finance.
Financing
Limits:
Maximum
upto Rs.1.0
Million
Maximum
upto Rs.50.0
Million
Primary
Security:
Residential &
Commercial /
Built up
Properly &
Land.
Mode of
Financing:
Running
Finance: One
year line of
credit
(renewable).
Repayment
:
Running
Finance:
Monthly debt
servicing on
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the
outstanding
balance.
Markup
Rates:
Competitive.
Servicing: Available at
all Askari
Bank
Branches.
Balance
Transfer
Facility:
Available
Eligibility to Apply:
Age: 21 to 65
Years.
Borrowers: Resident
Pakistani
Nationals.
Business
Requirements
:
Maximum
upto Rs.
500,000/.
(Clean)
Employment: Minimum
one year's
business or
professional
experience
in the
present
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business
Charge/Fees: As per
current
Schedule of
charges
2) Price
“Market value, or agreed exchange value, that will purchase a definite
quantity, weight, or other measure of a good or service.”
Products prices of ACBL are determined by:
1) SBP
2) Head Office, Rawalpindi
The markup or price paid for services mainly includes:
Long term loans
Short term loans
Letter of credit
Guarantees
Bill discounting
Remittances
Lockers
Bank drafts
Appraisal fee
Bank commission
3) Promotion
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Promotion is one of the four elements of marketing mix (product, price,
promotion, distribution). “It is the communication link between sellers and
buyers for the purpose of influencing, informing, or persuading a potential
buyer's purchasing decision.”
The following are two types of Promotion:
Above the line promotion : Promotion in the media (e.g. TV, radio,
newspapers, Internet, Mobile Phones, and, historically, illustrated songs)
in which the advertiser pays an advertising agency to place the ad
Below the line promotion : All other promotion. Much of this is intended
to be subtle enough for the consumer to be unaware that promotion is
taking place. E.g. sponsorship, product placement, endorsements, sales
promotion, merchandising, direct mail, personal selling, public relations,
trade shows
Askari bank does its promotion through following ways:
Brochures
Banners
Billboards
Ad in the newspaper
Direct marketing
Public relations
4) Place
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Last marketing tool is placement, which includes the various activities a
bank undertakes to make product and services easily accessible or
available to customers. ACBL has opened almost all its branches at
Commercial areas or near to commercial areas so that the customers or
clients face no problem in reaching to the bank.
Competitive strategy
As Askari more on to device a strategic plan for coming years for Askari
bank, it need to constantly remind itself that the margins are shrinking.
The number of financial players in the market has gone up several times
since the early 90’s. Not only the number of players has increased many
folds but they are also much better equipped with much stronger capital
bases, reach and competent managements.
Analysis
I m conducting the competitive analysis between ACBL and Bank Alfalah
with respect to the working of their HR department, Before conducting an
analysis it is feasible to briefly overview the competitor’s findings.
Introduction: (Askari Bank Ltd)
Askari Bank Limited (the Bank) was incorporated in
Pakistan on October 9, 1991 as a public limited company and is listed on
the Karachi, Lahore and Islamabad Stock Exchanges.
Human Resource department:
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ACBL is an organization that provides opportunities for its staff to have a
challenging and rewarding long-term career. To this end the Human
Resource Group (HRG) encourages and motivates its employees to excel
in the responsibility that they have in the organization .It believes that
creativity and innovation comes from talent, knowledge and experience
and it is ACBL’s endeavor to provide and maintain an environment which
not only nourishes these strengths but also provides opportunities for the
staff to have a career which has multidimensional growth opportunities.
In doing so, HRG has been restructuring and redesigning the overall
structure of the organization, which includes rationalization, cutting down
the decision layers, improvement in staff training and hiring professionals
and MBAs at entry-level management.
The overall direction of HRG has been towards nurturing the strengths of
the human capital to its maximum with a defining principal to help create
a progressive environment and sustain a thorough commitment of our staff
towards focused customer service.
Recruitment & Selection
In ACBL recruitment is done by following three ways:
Internal job announcement
Hiring through talent pool
Job advertisement
1: Internal Job Announcement:
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Internal job announcement is
divided into four sections. The whole procedure of recruitment passed
through these sections, from announcement to recruitment. These sections
are:
Segment
HRD (human resource division)
Staff
Candidate’s Supervisor
Steps of recruitment process:
Following are the steps of whole
recruitment process through announcement:
Step 1:
Request is raised by the segment on a “Requisition Form” with
complete information.
Step2:
Budgetary and position related requirements are checked by
HRD, recruitment and an internal job announcement is broadcasted
through e-mail.
Step3:
Staff reads the internal job announcement, fills in application and
submits it to HR before the mentioned cut-off date.
Step4:
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Recruitment reviews and shortlist the applications, the entries are
forwarded to the segment for selection by HRD.
Step5:
HR conducted initial interviews of interested employees, filled
IAF and sent it to the relevant segment.
Step6:
Segment receives the application from recruitment and calls the
candidates for interview.
Step7:
“Interview assessment form”/ Comments of segment are filled for
the candidate with details if he/she is selected or rejected.
IF SELECTED:
If candidate is selected then:
Step8:
Recruitment sends an e-mail request containing relevant
information to HR Operations for the issuance of internal transfer letter to
the candidate. In reply to the e-mail HR Operations issues a transfer order
to the candidate.
Step9:
HR files interview Assessment form into the employee’s personal
file. Master Database is updated.
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Step10:
Candidate’s Supervisor receives the mail from HR with
appropriate release date for the candidate.
IF REJECTED:
After step 7 if candidate is rejected then:
Step8:
Staff and his Supervisor are informed.
2: Hiring through talent pool:
Hiring through talent pool is divided
into two sections. The whole procedure of recruitment passed through
these sections. These sections are:
Segment
HRD (human resource division)
Steps of recruitment process:
Following are the steps of whole
recruitment process through talent pool:
Step1:
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If an appropriate resource is not selected from within the bank,
HR revisits the ERF (Employee’s Requisition Form) and searches for
resumes and searches for resumes from the HR Talent Pool (On-Line)
Step2:
Resumes are selected / screened by HR recruitment as per the
given criteria. These are scrutinized, short listed and forwarded to the
segment.
Step3:
Segment receives the short listed resumes and contacts the
candidate for interview.
Step4:
The Segment completes the IAF with detailed comments
(Recommended package, positive traits etc).
Clearly indicating if the candidate is RECOMMENDED or DECLINED
sent to HR with all delegated approvals.
Step5:
Interview Assessment Form is received by HR.
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IF DECLINED:
If resume is rejected then:
Step6:
Process is closed.
IF RECOMMENDED:
If resume is recommended then:
Step6:
Candidate is called for a final interview. HR completes the IAF
and discusses the salary package with the candidate.
Step7:
HR prepares the letter of Appointment and calls candidates for
collection.
Note:
Upcountry / remote areas: Telephonic interviews will be conducted by
manager / Assistant manager recruitment.
CV’S are uploaded into website (www.askaribank.com or HR online) by
segments or interested candidates.
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CV’S received through walk-in, post & or e-mail will also be uploaded on
the Talent Pool after through screening by HR.
HR will utilize the database to get resource information as and when
required.
3: Job advertisement:
Hiring through job advertisement is divided
into two sections. The whole procedure of recruitment passed through
these sections. These sections are:
HRD (human resource division)
Marketing
Steps of recruitment process:
Following are the steps of whole
recruitment process through job advertisement:
Step 1:
If an appropriate resource is not selected from within the bank
Internal Broadcast & HR Talent Pool, HR will then proceed with the
advertisement channel.
Step 2:
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Recruitment will draft a write up for the vacant position and send
it to Marketing along with a target date for publishing.
Step 3:
Marketing will coordinate with the agency and develop a sample
proof of the desired advertisement.
Step 4:
Marketing will receive the sample proof of the advertisement
from the agency, proof read it and will forward it to HR for approval.
Step 5:
HR receives the sample proof from Marketing, coordinates with
the segment. If OK HR gets final approved sample proof to Marketing.
Step 6:
Marketing receives the approved sample proof from HR and
coordinate with the agency to place the advertisement in the local
newspaper.
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Introduction: (Bank Alfalah)
Bank Alfalah was established in July 1997. Its H.O is in
Karachi and bank has 49 branches allover Pakistan.
Services:
Bank is offering different types of services for all its valued
customers. These services are: ATM, online banking, home loan, car
financing etc.
Human Resource department:
Bank has a HR dept who perform
different sort of functions. The dept advertises in newspaper for the jobs
then recruitment and selection process occurs. Training and development
is major task of HR dept.
In HR dept there is one Executive incharge, one assistant executive
incharge and personal managers.
Selection & recruitment:
Bank advertises in newspaper & candidates
apply for the jobs, after test, interview and other formalities the selected
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candidates are given 6 months training. Every year the bank offers 30
vacancies for the post of MTO’S.
The MTO program is a highly competitive & sought after induction
scheme, in which short-listed applicants appear in a written test followed
by a panel interview. Successful candidates then receive comprehensive
training in essential areas of branch banking at the bank’s state of the art
training facility at Karachi. They are subsequently posted at the banks
prior to their posting at various branch locations in Pakistan. Preferred
educational background for entry into the MTO scheme includes an MBA
degree, MA economics or M.com from reputable Pakistani or foreign
institution with GPA of 3 plus or equivalent. Strong personal character, as
well as communication and interpersonal skills are essential pre requisites
to succeed as MTO.
Training & development:
Its management believes in developing the
potential of the bank’s employees to the fullest extent. T&D center of the
bank is housed in custom built, state of the art facility on the 4th floor of
the H.O building at Karachi. The center is responsible for providing multi-
level high quality training programs to all staff members in the following
areas:
Consumer banking operation
Credit marketing & credit proposal
Credit administration/documentation
Trade finance operation
Marketing & selling skills
Customer service skills
Performance appraisal skills
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Time management
Personal effectiveness
It is obligatory for each staff member of the bank to attend at least one
training program. Wherever the training department is unable to provide
focused training for certain groups of staff, reputable external training
providers are invited to fill the gap.
The candidates are given 6 month training in which theoretical lectures are
given along with different case studies, situations & presentations
techniques. Groups are made to enhance coordination and team building
candidates with different skills and abilities are appreciated for their
creativity. During the job formal & informal meetings are conducted
where all employees are free to speak and they can give different ideas
and plans. Employees are encouraged for continuous learning and bank
even send its employees for special training courses to abroad.
Main training pressure paid of Bank Alfalah is also same to that of ACBL,
i.e.
Identification that either the training of current employees is necessary or
not, depends on the result of Annual Performance Report.
Reward system:
Each manager submit the report of his subordinates to
his boss in which they evaluate his employees from different dimensions
and if audit report of any branch show negative impact than all types of
increments are stopped of all employees of that branch.
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Analysis
Analyzing the training and development practice of ACBL and comparing
it with T & D of Bank Alfalah it is concluded that currently ACBL is
effectively meeting its targets, but to encounter with future demands,
ACBL needs to overcome some short comings in order to maintain and
gain competitive edge.
Business process analysis
In FY09, for the first nine months banks were reluctant to lend to
corporate and individuals owing to skyrocketing bad loans amid lack of
demand from industries who were avoiding high financial charges. But,
with some sign of economic recovery, lately, with inflation tapering off
amid marginal growth in large-scale manufacturing sector, the demand for
corporate credit gradually rose. However, attractive rates offered by
government bonds still remain lucrative enough - wooing banks to put
depositor’s money in low risk papers instead of meeting the demand of
private sector (Industry review, Business Recorder, 2010).
Financial performance:
Askari Bank was able to post an after-tax net income of Rs 1.18bn in
FY09, which is 187% increase from the previous year of FY08. The bank
has been able to accomplish this through various ways. Its year-on-year
mark-up interest income increased by 23%, mounting to Rs 22bn in FY09.
Following this, we observed that there was a huge increase in particulars
of provision for impairment in value of investments by 1500%, as the
amounted augmented to Rs 76,784 million in FY09 compared to Rs 5
million in FY08. This was due to the charges for the year that were
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charged on the investments made by the bank. Second was the increase in
the gain on sale of investments, which increased by 291% amounting to
Rs 143 million in which two main particulars have to be pointed out.
GAIN ON SALE OF INVESTMENTS - NET (000s) 2009 2008
Market Treasury Bills 62,177 266
Shares - Listed 47,015 6,682
Such high increase in sale of investments, have yielded in high profits for
the bank for FY09.
The scenario of the NPLs does not seem very favorable for the bank. The
NPLs have consistently seen an increase, indicating that the bank is either
not very efficient at collecting the outstanding loans or has a very liberal
loan distribution policy. Their pace of growth has outdone the rate of
increase in advances. The bank may face considerable credit risk from its
loan defaulters. In FY06, bank s advances witnessed marginal increases in
consumer finances, especially Ijara financing, corporate financing while
they observed a slight decline in the shares of SME and agriculture.
The assets of the bank witnessed some shift in their composition away
from loans towards investments. This has also been the trend industry
wide to meet the MCR requirements as directed by the State Bank of
Pakistan. Though these investments offer lower returns than the loans,
they are more preferable in this situation for the bank as it is struggling to
get its loan..
In FY09, the bank maintained its marginal increase of lending to financial
institutions as it only increased by 3%, similarly the advances too are seen
as controlled lending as these also increased by a mere 5%. The reasons
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tend to be the same as it were in the previous year. Low advances because
of high NPLs raising from consumer banking and also from certain sectors
of the economy especially the textile sector. However, on the flip side, we
see a dramatic increase of 88% of investments, which amounted to Rs
135bn. The investments category is further broken down to see where
investments are done.
The liquidity of the bank has maintained a consistent upward trend, with
its yield on earning assets always above the cost of funding them. It s
imperative to note that cost and yield on funding earning assets run
parallel which means that banks are not compromising on their spreads in
the years of performance regardless of dynamic economic conditions. This
liquidity consistency in the years until FY06 may be attributed to the
excess liquidity that prevailed in the industry due to high reserve growth
of the banking sector.
The State Bank of Pakistan intervened in this situation by contracting the
monetary policy. Also, post-emergency declaration when the rupee fell,
the SBP intervened twice to ease the liquidity conditions in the market.
The SBP has prudently managed the liquidity while the bank also has
certain arrangements to maintain its liquidity. It has most of its
investments in treasury bills. The liquidity position may be predicted to
remain similar to the above in the coming years. However, at the same
time Askari needs to safeguard its liquidity against the increasing NPLs.
Askari Bank was able to maintain its liquidity condition with keeping its
ratios in line with previous year of FY08. The earning assets to assets
remained at 81% as much of the percentage was due to the fact of a high
increase of investments in the government securities. Subsequently,
advances to deposits remain constant at 71%, as the bank did not increase
its advances to consumers due to high NPLs to advances in the previous
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year.
The bank s spread was sustained at 4% as it only decreased marginally by
1%. This was because the industry average remains to be at 5-6% for
FY09. This again helps us to understand the positivity of the bank in such
recessionary condition that they are not compromising on their spread and
maintaining at 4%.
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
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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 favorable 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%.
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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 Feb
2010 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
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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.
S.W.O.T. Analysis
SWOT analysis gives a very good analysis of what the firm is, what it
wants and what can it do to get better than it is at the same time indicating
the factors that could lead to a havoc.
SWOT is an abbreviation for;
Strength
Weaknesses
Opportunities
Threats
Strengths
Askari Bank has set its firm foot in Pakistan and has gained its strengths
over the period of time an effort of enlisting its strengths can be done as
follow;
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The past decade has been the biggest strength because that was the time
when there was not much of the competition and it gave time for the
company to adjust and now it has grown better than the rest
It has a good reward policy of giving bonuses and incentives for its
customers.
Askari Bank has a flawless Customer services
The MIS they use in the company is always updated well ahead of time
giving the bank an upper edge
Honesty, Equality and fairness prevail throughout the organization and
that is the utmost requirement.
The card division has strong network facilities nationwide
ACBL 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 ACBL 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.
ACBL have strength that most of the imports & exports which are done
are handled by ACBL.
Weaknesses
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A certain education level should be set for a particular task, it adds up to the
hard-work, the company has some undergraduates as well which can
effect the company
Its good to have a friendly working environment but there should be a code
of conduct.
Because of the increasing workload the employees a being over burdened
The inventory management is not up to the mark
Promotions and transfer from departments is a political issue.
Bank is not introducing new products and new saying schemes. Bank should
boost the product development and increase the range of facilities offered
for customers..
Opportunities
Better and convenient services to employees and business class.
Expansion of their branch network can be very helpful.
Engage qualified professionals for providing specialized banking products
and services to their customers, reorganization of existing systems as well
as Infrastructure with de-centralized work processes. The human resource
factor plays a critical role maintaining the efficiency and profitability level
of the bank in future.
Institutionalization of HRM (best person should be posted for best
assignment), depoliticizing the atmosphere.
Bank can extend its network in other countries.
It can enhance its profitability by making use of new technology.
The plastic money business still has a lot of potential to grow so it gives the
company an opportunity to introduce new products and services.
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They should keep on looking for opportunities in the market because it’s a
first come first served situation.
Threats
Very uncertain economic conditions.
Actions taken by competitors.
Political instability.
Employees turnover rate is too high
Politics involved in a working atmosphere has never done well for the
company it has always gone the other way round.
ACBL 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
ACBL, because human resource is the most valuable resource.
Pakistan India relations often create a war danger. This chance of war may
cause army officer and their families to increase the frequency of
withdrawals, which would decrease deposits.
LEARNING
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One of the most important aims of student’s life is to express
himself correctly and adequately, with this belief in mind, I decided to go
to Askari bank to complete my internship program.
Determined, confident and persistent in the pursuit of knowledge
and learning, I was on my to Askari bank DHA II branch in the morning
of 21st June 2010.
Duties
I performed different duties that were assigned to me throughout the
internship. Duties that I performed during my 6 weeks of internship are
related to different departments. I performed my duties in departments
like:
Accounts department
Account opening
Credits
Remittances
Foreign & international trade
I also perform my duty of operating photocopy machine and fax machine.
Accomplishments
I worked in different departments, but the knowledge I gained
from accounts department is very valuable. I really liked working in that
department. Working in this department was quiet tough as compared to
other departments but the knowledge I gained from that department was
very helpful to me.
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The internship program is very beneficial. It provides me good
opportunity to learn new things. Moreover it teaches me to know that
world of study and world of work are completely different. Unlike
studying, working life is not smooth. Often, I faced many problems during
working. I found that there are two valued things that help me to solve
problems are “braveness and patience”. Brave to face and be patient to
solve them.
New Knowledge Acquired
All the knowledge I acquired from my internship is new to me,
because I had never done internship before. Directly communicating with
customers and fulfilling their basic requirements was totally a new
experience for me. I learned how to communicate effectively and
efficiently with customers. Internship also improves my communication
skills with different persons in well manner.
During working at Askari, I had a chance to use every of English skill.
First is writing. I was assigned to write many kinds of letter such as
official letter of invitation, letter of sympathy and letter of informing. This
not only made me improve my writing skill, but I also learned how to
write proposals in the real situation.
Second is reading. All the documents are in English so it is necessary that
reading and understanding skills should be good.
Reading English documents everyday helped me have a better reading
skill. I can read faster and can find out main point easier.
Third is listening and speaking. Since I worked with foreign exchange &
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international trade manager for 1 week, she speaks with me in English
most of the times. Throughout the week in foreign exchange &
international trade department, I had to communicate with supervisor and
colleagues in English. Of course, my listening skill is improved and had
more confidence in speaking English.
Problems Encountered
Internship was a good experience for me, but there are some
problems which I faced in the begging of my internship.
During the internship program, I faced some problems in my work. The
first problem is writing official letters. I had to write many kinds of
official letter or proposals in English which I have never written before;
for example, the official letter of invitation, the official letter of informing
and the official letter of sympathy. These letters had been sent to different
companies for their credit requirements, therefore, it needed exquisiteness.
I tried my best to cope with this problem by trying to study the previous
letter and consulted with my mentor, Mr. Bilal Zahid and Mr. Osman
Yusuf, Credit manager. However, this kind of problem taught me to learn
new vocabularies and idioms used in business world. For me it is very
beneficial.
Besides writing official letter, I had some difficulties in translating
documents. I was assigned to translate the documents both from English
into Urdu and Urdu into English. This was my first time to translate
official documents. For translating English into Urdu, my heavy-hearted
thing was that there are several technical terms that I have never seen
before. Moreover any dictionaries couldn’t help me. The best way to solve
this problem was “don’t hold on form” but had to interpret and translate
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them from the context. For translating Urdu into English, I was assigned
from Credit officer to translate advertisement and credit manuals. I
haven’t been accustomed to using credit language, so it was quite difficult
for me. I coped with this by learning advertising language and idiom used
in Internet, magazine and newspaper in order to be guideline in using
credit language appropriately and accurately.
How Experience Impacts your Career
Upon the start of my internship at Askari bank I did not have a
lot of experience in public relations. In some capacity I knew that I would
be working towards improving the image of customers and my
supervisors, which in this office ranges from high tech startups, to publicly
traded companies, to profit and non-profit organizations. However, I was
unsure of what exactly an intern in the services industry would be
responsible for on a daily basis.
After six weeks of my internship i can honestly say that I have learned a
great deal about the industry itself and I now have a more concrete
understanding of what the job description is for one who works in public
relations.
Among the many things that I have learned almost in the last two months,
the most important for me are the general knowledge that I now have
about the field, as well as the tools that I have gained that will enable me
to perform better when working in the industry.
The internship program at Askari bank has provided me with a strong
foundation for what might likely be the start of a career in public relations.
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I now have confidence in myself that I can work successfully in a services
firm and be a strong asset to a hardworking team. However, just as a house
is not complete after the foundation is laid, there is still much more for me
to learn and experience.
I look forward to continuing this path of learning and exploration and will
not forget what I learned during my six weeks of internship.
Identification of plausible problem(s)
There are problems being faced here at Askari Bank some of which can
easily be highlighted;
Bank is facing a high tax rate, which affects its profitability and
attractiveness for new entrants.
Middle class and low income group have limited access to bank credit.
Weak internal controls, non-merit based recruitments
High administrative costs affect the performance of bank.
Continuous maintenance is compulsory
Favoritisms while promoting employees.
Education level of the employees
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Recommendations
Besides taking care of the above mentioned problems there are some
recommendations which can be advised to the bank, which can be helpful
for the Bank:
1. Employees should be given a course of training from time to time or they
can also use the on the Job training method. Training can be done in the
following areas
Better training of employees in the communication skills area
Undergrads have to be trained accordingly
Continuous training about the latest updates
2. New advertising campaigns should be launched especially in the
electronic advertisement areas
3. There is a need for expansion of the working area especially in the finance
department as the work load is increasing and new recruitments are
compulsory
4. Politics should be discouraged in such an environment
5. The employees should be given more incentives and rewards for their
good performances
6. There should always be innovation in any business to flourish and there is
a lot more to explore in the banking sector and its always first come first
served.
Comsats Institute of Information Technology
4
Conclusion
Banking is one of the most sensitive businesses all over the world as banks
play very vital role in the economy of a country and Pakistan is no
exemption.
Askari Bank has been growing both in size and profits for past few years
and is one of the most reputed groups. It has gained a good repute in the
banking sector of Pakistan.
Employees are the most important assets for any organization as the
success of any organization lye in their hands, therefore there is a need the
group to focus on the needs of their employees. The bank has to overcome
its weaknesses and should avail the opportunities available in the industry,
because competition is very intense particularly in the banking sector these
days the organization which offers far better services to its customers than
its rivals will succeed ultimately.
I have made an honest attempt to generate an original piece of writing that
could serve as a vivid proof of the fact that students at Comsats Institute of
Information Technology (CIIT) are certainly no mugs at what they do. I
truly hope that this report also certifies the fact that all of my worthy
teachers performed their duties of academic guidance and moral
mentoring with utmost efficiency and effectiveness.
Comsats Institute of Information Technology
4
Bibliography
www.askaribank.com.pk
www.wikipedia.com
www.google.com
www.answers.com
www.sbp.org.pk
Askari bank general banking mannual
Comsats Institute of Information Technology
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