Glossary

Bank:
Bank is an institution which receives deposits and advances loans and spread
between the deposits and advances is called the profit of the bank.

Bank Note:
A non-interest-bearing promissory note of a Federal Reserve Bank which is
payable to the bearer on demand and can be used as cash.

Bank reconciliation:
The process of adjusting an account balance reported by a bank to reflect
transactions that have occurred since the reporting date.

Banking:
Banking means the accepting fro the purpose of lending or investing of deposits
of money from the public repayable in demand or otherwise and withdraw able by
cheque, draft order or otherwise.

Barren money:
Money that is not currently earning interest.

Cash reserve:
Cash reserves simply means the cash that is held by bank at any particular
moment.

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Cheque:
A cheque (or check - USA) is a negotiable instrument[1] instructing a financial
institution to pay a specific amount of a specific currency from a specific demand
account held in the maker/depositor's name with that institution. Both the maker
and payee may be natural persons or legal entities.

Commercial Bank:
Commercial bank means any bank who takes the activities of banking to earn the
profit is called commercial bank.

Credit card:
Which is issued by the bank to customer to make the transactions on credit basis.

Credit Union:
A non-profit financial institution that is owned and operated entirely by its
members. Credit unions provide financial services for their members, including
savings and lending.

Debit card:
It works just like as credit card but on cash basis. It means the card which is
issued by the bank to the client up to the amount which client has in the form of
cash in the bank account.

Demand loan:
A loan which is repayable on demand (i.e. without prior notice), rather than on a
specific date.

E-Banking:

155
 Banking through electronically / electronic Channels. Online and mobile is
possible due to E-Banking.
Finance:
All those activities which have to do with the provisions and management of
funds for the satisfactory conduct of business.”

Financial market:
financial market is a mechanism that allows people to easily buy and sell (trade)
financial securities (such as stocks and bonds), commodities (such as precious
metals or agricultural goods), and other fungible items of value at low transaction
costs and at prices that reflect the efficient market hypothesis.

Hypothecation:
When moveable property/ goods are charged with the amount of debt but neither
the ownership nor the possession is passed to the lender. It is said to be
hypothecated. By virtue of letter of hypothecation bank can take possession of
hypothecated goods in case of default of the borrower.

Insurance
A promise of compensation for specific potential future losses in exchange for a periodic
payment. Insurance is designed to protect the financial well-being of an individual,
company or other entity in the case of unexpected loss.

Letter of credit:
L/C. A binding document that a buyer can request from his bank in order to
guarantee that the payment for goods will be transferred to the seller.

Merger:
The combining of two or more entities into one, through a purchase acquisition or a
pooling of interests. Differs from a consolidation in that no new entity is created from a
merger.

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Money (Currency):
Money is anything that is generally acceptable as a mean of exchange and at the
same time acts as a measure and stock of value”.

NIFT:
It stands for “National Institution for Facilitation Technologies”. It is the
technology which is used for clearance inside the country.

Offshore banking unit:

Branch of bank across the boundary.

Overdraft:
The amount by which withdrawals exceed deposits, or the extension of credit by a
lending institution to allow for such a situation.

Pledge:
A formal contract whereby the borrower agrees to deposit goods/ documents with
the creditor on the condition that those will be redelivered to the depositor if the
debt is repaid or can be sold by the creditor if the borrower defaults. After
recovery of dues from sale precedes the surplus if any is paid back to the
borrower Possession passes to bank, ownership remains with borrower

Promissory note:
A document signed by a borrower promising to repay a loan under agreed-upon
terms. Also called note.

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Refinancing:
Paying off an existing loan with the proceeds from a new loan, usually of the
same size, and using the same property as collateral.

Running Finance:
The finance type in which markup is charged on the amount which the borrower
use. And on remaining amount which borrower has in the bank account, markup
is not charged.

SWIFT:
It stands for “Society for Worldwide Inter bank Financial Transactions”. It is the
technology which is used to transfer the amount cross the boundary.

Term deposit:
Savings account or CD held in a financial institution, usually a bank, for a fixed
term or with the understanding that the customer can withdraw only by giving
advanced notice. It is also called time deposit.

Term Finance:
The finance type in which markup is charged on the whole amount. It is irrelevant
that whether borrower use the portion of the whole finance amount or whole
finance amount.

Voucher:
A document which acknowledges a liability or provides authorization to pay a
debt.
Deposit:
Money transferred into a customer's account at a financial institution.

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 Index
A Outward Clearing, P.81
AKAFP, P.64 P
Askari bank limited, P.14 Paying Bank, P.80
Askari Debit Card, P.57 Pay order, P.88
Auto Financing, P.57 Personal Finance, P.51
Awards & Achievements, P.24 Pledge, P.96
B Post Cheque, P.83
Bank, P.4 Profitability Ratios, P.112
BBA, P.73 R
Branch Hierarchy, P.32 Recommendations, P.151
Business Finance, P.54 RTC, P.49
C Running Finance, P.97

Cash Flow, P.120 S

CDR, P.77 Smart Cash, P.56
Cheque Book, P.76 Solvency Ratios, P.116
Collection Bank, P.80 Strength, P.139
Conclusion, P.153 SWOT Analysis, P.137
Consumer Banking Services, P.48 T
Corporate Banking, P.46 TDR, P.78
Credit Card, P.59 Term Finance, P.97
Credit Rating, P.24 Threats, P.145
Current Account, P.72 Trend Analysis, P.124
D V
Demand Draft, P.85 Vertical Analysis, P.132
Department, P.34 vision, P.16
Dream Life, P.53 VPCD, P.50
E W
External Analysis, P.138 Weaknesses, P.141
F
Financial Ratios Analysis, P.99
Foreign Currency Current Account, P.73
G
Growth in Profit, P.19
Guarantees, P.96
H
Hierarchy of Bank, P.27
Horizontal Analysis, P.125
Hypothecation, P.96
I
Internal Analysis, P.138

159
International Division, P.59
investment Banking, P.47
Investor's Analysis, P.105
Inward Clearing, P.82
L
LOCKERS, P.79

M
mission, P.17
Mortgage Finance, P.53
Mortgage, P.96
N
New Corporate Identity, P.21
O
OBC, P.83
OBU, P.61
Opportunities, P.143
Organization's Dilemma, P.150
Outward Return, P.82

160
 Bibliography

Books:
• Alam, Mobin, Hassan. “Money Banking & Finance” Lahore: Syed Mobin
Mahmud & Co, P.145, 159

• Mian, Ahmad, Riaz. “Money Bnking & Finance” Lahore: Azeem Academy, P.317,
363

• Gitman, J. Lawrence. “Principles of Managerial Finance” New Delhi: Pearson

Education Printer, Edition: 10th, P.118

Internet Source:

• Web National Bank of Pakistan. “www.Askaribank.com.pk” Dated: November

06, 2007. Time: 1:00pm.

• Web National Bank of Pakistan. “www.askaribank.com/financialstatement.php”

Dated: November 06, 2007. Time: 1:05pm.

• Web National Bank of Pakistan. “http://nbp.com.pk/An_Report.htm” Dated:

November 22, 2007. Time: 11:45am.

• Web National Bank of Pakistan. “http://en.wikipedia.org/wiki/SWOT_analysis”

Dated: November 23, 2007. Time: 4:00pm.

• Web National Bank of Pakistan. “http://en.wikipedia.org/wiki/Bank” Dated:

November 09, 2007. Time: 3:30pm

• Web Encyclopedia. “www.wikipedia.org” Dated: November 19, 2007. Time:

11:00am.

Others:

161
• Askari Bank Limited. “Annual Report 2006” year ended: December 31, 2006.

• Askari Bank Limited. “Annual Report 2005” year ended: December 31, 2005

162
 List of Illustrations

Page# 8 Growth of Pakistan Economy

Page# 19 Growth in Profit

Page# 20 Growth in Deposits and Advances

Page# 27 Hierarchy of the Bank

Page# 29 Hierarchy of the Bank (Grade wise)

Page# 31 Hierarchy of the Bank (Region wise)

Page# 32 Hierarchy of the Bank, Vehari Branch (0093)

Page# 46 Corporate Banking Graph

Page# 48 Consumer Banking Services Graph

Page# 60 Progress of Treasury Division

Page# 62 Graph of Non Performing Loans

Page# 16 Horizontal Analysis, Profit & Loss Account

Page# 129 Horizontal Analysis, Balance Sheet

Page# 133 Vertical Analysis, Profit & Loss Account

Page# 135 Vertical Analysis, Balance Sheet

163