Hasan Internship Report

INTERNSHIP REPORT
Internship Report on Askari Bank Ltd (Okara Branch)

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Submitted by: Hasan Iqbal Roll # 30 Session: 2010-2014
Department Of Management Sciences University Of Education Okara

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FROM THE GLORIOUS QURAN

It is not righteous that you turn your faces towards the East And the west but righteousness is this that one should believe in ALLAH and The last day and the Angels and the Book and the Prophet (PBUH) and giveaway wealth out of the love for him to needy and the way-farer and the Beggars and for the way-farer and the beggars and for (the emancipation of) the captives, and keep up prayer and pay the poor rate; and; the performers of their promise, and the patient in distress and affliction and in time of conflicts these are those who are true (to themselves) and these are they who guard (against evil)
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PREFACE
It is the requirement of the MBA course EU, Okara that all students of MBA have to spend 68 weeks in any organization to get practical exposure and to get familiarized with the ways to live in the organizational environment which is dramatically different from the educational environment. That 6-8 weeks period called Internship Period , if spent properly and sincerely, enables the students to be more confident, more knowledgeable, more responsible and, above all, more committed to its work in the practical field. I have also been assigned to do internship of six to eight weeks period in Askari Bank Limited Okara Branch. It has enabled me to understand the practical scenario and sharpen our decision making power and utilizing the resources in an effective manner, so that our resources generate maximum profit. In preparing this report, I have put all of my best efforts and tried my level best to give maximum knowledge.
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ACKNOWLEDGEMENT
Praise be to God, the Cherishes and Lord of the world-most Gracious and most Merciful. We are grateful to almighty Allah for enabling us to complete the work presented in this thesis. It is through his unending mercy that this task moved towards success. This is my first effort of my carrier. And after the God, We will like to admire the personality who is the best gift by the God for me, is my mother whose prayers are always with me and I feel that I am nothing without her prayers. I am very much thankful to Mr. Tahir Nadeem Head of Credit department, Askari Bank Limited Okara Branch, and to all respondents who spared their precious time in answering the questionnaire. I dont have words to express my heartfelt and endless gratitude to my beloved brother & sisters, my family members and my friends especially Tahir Nadeem, for showering on me all their love and affection. They supported me and helped me in every way possible throughout the duration of this project. My institution, University of education, has done a superb job in training me throughout the course of my degree for this project. Special thanks go out to Mr. Abdul Rauf Tayyub (Branch Manager) & Mr. Faraz Daula (Operation Manager) and all other operations and credit officials of Askari Bank Limited who provided me with their valuable input during my project. Salute to the marvelous management of Askari Bank, to have such a thought provoking activity in the form of this compulsory internship report. But all the start and the end to ALMIGHTY ALLAH, for making this human Endeavour a reality. WUIXTCUIV YN YTIWREVINU 4
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Thank you all!
DEDICATION
AMIGHTY ALLAH SUBHANA TALAH & HIS HOLY PROPHET MUHAMMAD (Peace be upon him) & ENDLESS LOVE OF MY PARENTS WHOSE PRAYERS HAVE ENABLED ME TO COMPLETE MY REPORT.
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Table of contents Sr. No

00. 00. 00. 00. 00. From the Glorious Quran Preface Acknowledgement Dedication Table of Content
Page No.
02 03 04 05 06 09 10 11 11 12 13 13 14 14 15 15 16 16 17
1. Executive Summary 2. Objective of studying the Organization 3. Overview of Organization 3.1. Brief History of the Organization 3.1.1. Credit Rating 3.1.2. Vision of the Organization 3.1.3. Mission of the Organization 3.1.4. Organization Objective 3.2. 3.3. 3.4. Nature of the Organization Organization Business Volume Number of Employees
4. Human Resource Management 4.1. Organizational Structure 4.1.1 Structure of the Branch WUIXTCUIV YN YTIWREVINU 6
INTERNSHIP REPORT 4.1.2 4.2 Functions & Responsibilities of various Departments 20 21 22 23 23 24 24 26 27 28 29 30 37 38 39 41 42 42 42 42 44 46 18
Structure of the Finance Department 4.2.1 4.2.2 4.2.3 Functions of Accounts Operations Role of Financial Manager Use of Electronic Data in the Decision making
4.3 4.4 4.5 4.6 4.7 4.8
Number of Employees working Branch Job Analysis and Design Job Description and Job Specification of Employees Recruitment & Selection procedure Training and Development procedure Performance Appraisal
5. Marketing 5.1 5.2. 5.3. Product Lines Marketing Mix Critical Analysis 5.3.1 5.3.2 6. Finance 6.1 6.2 6.3 6.4 Sources of Funds Generation of Funds Allocation of Funds Balance Sheet 6.4.1 Balance Sheet Vertical Analysis WUIXTCUIV YN YTIWREVINU 7 SWOT Analysis PEST Analysis
INTERNSHIP REPORT 6.4.2 6.5 Balance Sheet Horizontal Analysis 48 49 50 51 61 61 62 63 64 65 66 47
Profit & Loss Account 6.5.1 6.5.2 Profit & Loss Account Vertical Analysis Profit & Loss Account Horizontal Analysis
6.6 6.7
Ratio Analysis Organizational Analysis with other firms in industry
7. Future Prospects 8. Weaknesses Analysis 9. Conclusion 10. Recommendations 11. References & Sources used 12. Annexure Y
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1- EXECUTIVE SUMMARY
The Department of Business Administration of University of Education offers Masters Degree in Business Administration. They are giving the best education and are offering Unique Learning program. recognized institution. This report is about my internship that I have undergone at Askari Bank Limited Okara Branch from 30th April 2013 to 10th June 2013. During my internship I am able to learn practical aspect of business, and get good working experience. An important program is two months internship with any
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2- OBJECTIVES OF STUDYING THE ORGANIZATION

Studying the organizational structure of the organization and its marketing department. To do a comparative analysis of the organization with the other in the same business and capacity. Understanding the functions & procedure of the marketing department. Analyzing the marketing activities. Analyzing the marketing structure of the marketing department. Evaluating the working style of the marketing employees. Analyzing the weakness and strength of the marketing department. Considering the communication flow of the marketing department. To have a hand on experience in the marketing department. To get the exposure of working in an excellent environment in marketing department. To seek employee's increment continuous improvement and enhance performance goals. To get the knowledge of a unique and new product development process. Y Y Y Y
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3- OVERVIEW OF THE ORGANIZATION

Askari Bank Limited is in the stages of growth. It has to face intense competition from the well-established banks like MCB Bank, Standard Chartered Bank, Faysal Bank, ABL, HBL, UBL etc. General trend in the market is that the private banks are increasing their paid-up capital. Banks are expanding their branch network.
3.1- BREIF HISTORY OF THE ASKARI BANK LIMITED
Askari Bank was incorporated in Pakistan on October 9, 1991, as a public limited company. It commenced operations on April 1, 1992, and is principally engaged in the business of banking, as defined in the Banking Companies Ordinance, 1962. The Bank is listed on Karachi, Lahore and Islamabad Stock Exchanges. Askari Bank has since expanded into a network of 261 branches / sub- branches, including 34 dedicated Islamic banking branches, and a wholesale bank branch in Bahrain.
INTERNSHIP REPORT A shared network of 5,903 online ATMs covering all major cities in Pakistan supports the delivery channels for customer service. As at December 31, 2012, the Bank had equity of Rs. 19.7 billion and total assets of Rs. 353 billion, with 907,984 banking customers, serviced by our 5,597 employees. Askari Investment Management Limited and Askari Securities Limited are subsidiaries of Askari Bank engaged in managing mutual funds and share brokerage, respectively
3.1.1- CREDIT RATING

PACRA, a premier rating agency of the country, has rated the bank AA (double A), Entity Rating for long term and A1+ (A one plus) for the short term. These ratings denote a very low expectation of credit risk, strong capacity for timely payment of financial commitments in the long term and by highest capacity for timely repayment in the short term, respectively. The ratings of first and second and third unsecured listed and subordinated TFC issues of PKR 650 million, PKR 1,250 million and Rs.1,325 million have been maintained at AA(Double A minus).. WUIXTCUIV YN YTIWREVINU 12
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3.1.2- ASKARI BANK VISION

To be the bank of first choice in the region
3.1.3- ASKARI BANK MISSION

To be the leading 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 stakeholders, and contributing to society.
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3.1.4- ORGANIZATIONAL OBJECTIVE

What the actual purpose of the existing of the organization and effectiveness of the organization. To maintain competitive edge in quality banking To become one of the leading financial institution To increase its market share To have central place in competitive market Efficient fund and Efficient Risk Management
3.2- NATURE OF THE ORGANIZATION

Askari Bank Ltd is a commercial bank by its nature. Commercial Banks are set up with the primary objective of earning and maximizing profits. They received cash deposits from the people in different accounts and give loans to different business enterprises and thereby create credit money. 3.2.1-Profile of Askari Bank Limited Company Profile Industry Registered Office Askari Bank Limited Financial /Commercial Banks AWT Plaza, The Mall, P.O. Box No. 1084 Rawalpindi-46000, Pakistan. Website Stock Exchanges Branch Network www.askaribank.com.pk List on Karachi, Lahore & Islamabad 261 branches as on 31-12-2009 WUIXTCUIV YN YTIWREVINU 14
INTERNSHIP REPORT Presence in Countries Pakistan and Bahrain
Incorporation
Oct 9, 1991
Operational
April 1, 1992
Employees
5597 as on 31-12-2012
Profit after taxation
Rs. 1,255 as on 31-12-2012
Earnings per Share
Rs. 1.54M
3.3- ORGANIZATION BUSINESS VOLUME:

Years Total Assets Shareholder' Equity Number of Branches Number of Employees Number of Customers 2008 206,191 12,971 200 6496 816,629 2009 254,327 14,949 226 6,159 984,485 2010 314,744 16,004 235 6,442 885,764 2011 343,756 17,776 245 5,994 919,096 2012 353,056 19,688 261 5,597 907,984
3.4- TOTAL NUMBER OF EMPLOYEES IN ASKARI BANK

Askari Commercial Bank limited a promising and an equal opportunity employer with employees strength of over 5597 according to the annual report of 2012.
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4-HUMAN RESOURCE SECTION

4.1. ORGANIZATIONAL STRUCTURE
Corporate Banking
Group Head Corp. Banking & Financial institution
Merchant Banking
International
treasury
Credit
President & Chief Executive Board of directors Executive Committee
Electronic Technology Group Head operations & Credit System & Operations Regions / Areas Legal Affairs
Investment Products
Group Head Retail Banking
Assets Products
Credit Cards
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4.1.1. ORANIZATION STRUCTURE OF BRANCH

PRESIDENT Senior Executive Vice President Executive Vice President Senior Vice President
Vice President Assistant Vice President Branch Manager
Assistant Manager
Operations Manager
Officer Grade 1
Non Clerical Staff: Guards & Peaon
Clerical Staff : Cashier Typiest & Clerks
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4.1.2. FUNCTIONS AND RESPONSIBILITIES OF VARIOUS DEPARTMENTS

ACCOUNT OPENING DEPARTMENT The account opening department is the main department in the banks. In the account opening department, I have gone through different types of the accounts and the operations of different accounts. I have opened different types of accounts of so many people myself. There are different requirements of different accounts. Functions of Account Opening Department Following functions are to be performed by account opening department Providing account opening form according to the requirement of the customer that which type of account customer actually wants to open a corporate account, joint account, individual account etc. Provide the information to the customer that what type of requirements should be fulfilled in order to open the account. Check the form carefully that the customer correctly completed their account opening form. Stamping on the form. Maintaining account opening register. Pasting of form in the register. Issuance of cheque books.
Account Opening Procedure

A banker must have the following information about the customer; Customers Name Contact number CNIC number WUIXTCUIV YN YTIWREVINU 18
INTERNSHIP REPORT Expiry date of CNIC Nationality etc.
Cash Department
All the physical movements of cash in the bank are made through this department. Normally cash department performs following functions;
Receipts Payments Transfer of funds from one account to another account Handling of ATM Posting Verification of signatures
Clearing Department
All the bank which are the member of clearing house maintain accounts with State Bank of Pakistan by debit and credit to which the clearing settlements are made. If on a particular day, a bank delivers cheques and other negotiable instruments worth more than the total amount of Cheque received by it that banks accounts with State Bank of Pakistan will be credited with the differential amount. If on the other hand the total amount of cheques and other negotiable instruments draw on a certain bank by other bank is more than the total amount receivable by it from other banks, then this banks account will be debited on that day. The cheque delivered to the representatives of other banks for clearing are called outward clearing, whereas cheques received from the representatives of other banks for payment are called inward clearing.
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Remittance Department
The Remittance Department issues drafts, payment orders, traveler cheques etc. Remittance means transfer of funds from one place to another place. Drafts are issued for other cities while payment orders are issued for within a city purpose.
Lockers Department
Lockers provide services of safe keeping the previous object of public. Locker holders pay annual rent. One key of the locker is kept by the bank other is given to the client.
Credit Department
It provides loans to various clients and has a major contribution in the bank's profit and assets. Different types of loans are provided to the clients depending on their needs and demands. Loan against property (Saiban Scheme) and Loan against assets (advance salary) etc is provided. Such loan is given keeping in view the total income as well as salary being drawn per month by the applicants.
4.2. STRUCTURE OF FINANCE DEPARTMENT

The finance department at head office reconciles the data collected from the branches. The uses this data to prepare the overall position of the banks in terms of Prepare Balance sheet Income Statement Sources and Uses of Funds Cash Flow Statement The department is also responsible to review the policies of bank in terms of financial matters and give feedback to policy makers. Their participation in policy making is encouraged by WUIXTCUIV YN YTIWREVINU 20
INTERNSHIP REPORT the bank management. In order to give suggestion in policy making the department gathers feedback from the branch level. The department is also responsible to publish the financial position of bank in print and electronic media as per the SBP policy. The information provided by bank is very important for investor because they very much rely on this information in order to invest in the bank. The depositors also feel secure if the position of bank is positive. Income & Expense The department also needs to calculate the revenues and expenses, control expenditure and forecast profits every month. Budger Formulation of yearly budgets & targets in consultation with the branch manager is also done by the accounts department. Activity Checking Daily activity checking and monitoring is done by the accounts department of the whole bank. Payment The accounts department is responsible to pay vendors on behalf of the bank with authorization from the branch manager. It also has to amortize large payments and calculate depreciation of branch assets.
4.2.1. FUNCTIONS OF ACCOUNT DEPARTMENT

The main function of this department is to handle the cash, record the cash transaction, summarizes all the bank transaction daily and sends the report to head office. WUIXTCUIV YN YTIWREVINU 21
INTERNSHIP REPORT a) Branch Credit Committee. b) Area / Regional Office Credit Committee c) Head Office Credit Committee. d) Executive Committee e) Board of Directors.
4.2.2. Role of Financial Managers In Establishing Relationship

This is a senior role and the Relationship Manager will manage a portfolio of complex borrowing corporate clients as well as being the primary point of contact for the banks relationships with the Hedge Fund Sector. The role will report to the Head of Corporate Banking. The ideal candidate will maximize opportunities to strengthen and leverage existing relationships as well as continue to maintain and ensure high levels of customer satisfaction and retention all the while generating new recommendations. The successful candidate will be experienced in developing growth plans and expanding the divisions borrowing and nonborrowing relationships within the hedge fund sector. Strong working knowledge of commercial banking products, loan agreements, security and other credit requirements, particularly with respect to the mutual and hedge fund sectors is preferred. Essential qualifications include at least 10 years banking experience with at least 5 years in a direct commercial customer contact role: in depth experience in structuring financing transactions with the mutual and hedge fund sectors; experience in structuring financing transactions with the property sector will be considered an asset. Financial manger in establishing relationship always gives priority of his organization these benefits: WUIXTCUIV YN YTIWREVINU 22
INTERNSHIP REPORT Maximization of profit. Earnings per share maximization. Increase of sale Welfare Reduce in cost
4.2.3. USE OF ELECTRONIC DATA IN DECISION MAKING

AKBL also use electronic data and different software in its branches. The bank uses operating system IBM-OS/400 for various workings. Moreover, the bank uses programs like ORACLE and FOX PRO. The bank uses the software like OBI, Forex cube in daily routine working. The bank is struggling for further up-gradation of the on line banking services for its valued customers. The bank is also using special accounts software for maintaining accounts, ledger and financial statements etc. AKBL is engaged in performing the routine duties of banking business. Its finance system is to collect surplus money from people and make loans and advances.
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4.3. NUMBER OF EMPLOYEES WORKING IN BRANCH

Sr. No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Name of Employee Rauf Tayyab Fraz Yaseen Tahir Nadeem G.M Abdullah Gulfraz Hassan Muhammad Saeed Sajjad Ashiq Nasira Shakeel Sadia Ghayas Farah Kiran Muhammad Ahmad Sufyab Khalid Asim Mushtaq Zulfi qar Ali Fozia Majeed Adeel Ahmad Sajid Hussain Designation B.M/AVP M/G/MO AMG AMG OG-1 OG-2 OG-2 OG-2 OG-2 OG-2 OG-2 OG-2 OG-3 CASHIER ASSISTANT PEON PEON
4.4. Job Analysis and Design

Job Analysis Provide information about job currently being done and the knowledge, skills and abilities that individuals need to perform the job adequately.
Steps in Job Analysis 1-Understanding the purpose of job analysis Managers do the job analysis and assign responsibilities according to the calibre and skills of employee. 2- Understanding the role of the job in the organization. 3- Benchmark position WUIXTCUIV YN YTIWREVINU 24
INTERNSHIP REPORT 4-Determine how to collect job analysis information. Manager collect the information through the observations, technical conferences. 5- Seek clarification 6- Develop draft 7- Review draft with supervisor
4.5. Job Description and Job Specification of Employees

Job Description Service manager according to the skills capabilities personality communication skills confidence level has design job description. Job Specification Statement including the minimal acceptable qualification incumbent must possess to successfully perform the essential elements of the job, in which includes the knowledge, skills, education, experience, certificates and abilities need to the job effectively. Askari bank mainly focuses on the communication and confidence level of the candidate as skill can be updated. Recruitment is the process of searching for prospective employees and stimulating them to apply for job in the organization. Objective of Job Specification Askari bank believe that bringing together our collective expertise, insight and professionalism, we will grow individually and succeed collectively.
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4.6. Recruitment & Selection Procedure of Employees

Recruitment Criteria If you want to work with us, and have the right capabilities and experience our process will insure that all candidates are provided with the equal opportunities to ensure a position. You are: Entry level fresh induction At this level fresh graduates are hired normally in officer cadre of the bank ranging from OG III to OG I. Management trainee officer A special batch of qualified, energetic, high calibre and qualified young with good academic record is also hired a management trainee officers (MTO) on annual basis with an aim with nurture high talented lot of future executives / manager for the Bank. Hiring of Experienced professionals: At this level experienced and skilled professionals are hired normally for senior slots. Recruitment sources: Recruitment of employees, in general the sources of recruitment is classified into two types 1. Internal Job Posting 2. External Job Posting Internal Job Posting: Filling a job opening from within the firm has the advantage of stimulating preparation for possible transfer or promotion and increasing the general level of moral. External Job posting: Askari Bank also goes to external sources for position who specification cannot beam by present personnel. Askari bank uses following outside sources. WUIXTCUIV YN YTIWREVINU 26
INTERNSHIP REPORT Advertising Employment agencies Causal Application Leasing
Selection:
Our selection processes differ from positions-to-position and are design to effectively match an individual knowledge, skills, interest, and experience to those needed for a particular position. The selection process may consist of following steps, Screening; in this process whereby enquires about a job are screened. The 2nd step is to fill company specific form use to generate information the company wants. Organizations rely heavily intelligence, aptitude, and interest test to provide major input to selection process. Comprehensive interviews are a selection device in witch in depth information about a candidate can be obtained. Background investigation in with the information provided by candidate is verified
4.7. Training & Development Procedure of Employees

Employee Training Training refers to a planned effort by a company to facilitate employees learning of job related competencies. These competencies include knowledge, skills, or behaviors that are critical for successful job performance. The goal of training is for employee to master the knowledge, skills, and behaviors emphasized in training program and to apply them to their WUIXTCUIV YN YTIWREVINU 27
INTERNSHIP REPORT daytoday activities. Recently it has been acknowledged that to offer a competitive advantage, training has to involve more than just basic development. AKBL management believes in developing the potent ion of the banks employee to the fillets extent. Training and development centre of the bank are house in state of the art facilities at Karachi and Lahore. The canters are responsible for providing multi level high quality training programmes to all staff members in the following areas; Consumer banking operation Credit marketing and credit proposals Credit administration/documentation Marketing and selling skills Customer service skills Leadership and management skills Personal effectiveness and skill It is obligatory for each staff member of the Askari bank to attend at least two days of training in a calendar year. Wherever the training department is unable to provide focused training for certain groups of staff, reputable external training provides are invited to fill the gap. Training Need Assessment The objectives of training activities are to keep AKBL employees abreast of latest professional knowledge and skills in all areas of banking, as well as to reinforce a passion for the highest quality of customer service at all levels. Annual Training Plan Minimum Training for All Induction Training WUIXTCUIV YN YTIWREVINU 28
INTERNSHIP REPORT Batch Training External Training Employee Development We also focus on providing opportunities and facilitating our executives and officers for developing their managerial and leadership skills through managerial development program for present and future responsibilities.
4.8. PERFORMANCE APPRAISAL SYSTEM

Askari bank performance appraisal system is improved and upgraded from time to time in line with the Banks requirements, as well as with industry practices. HRD keeps all units of the Bank informed of the PA system and procedure currently in use. Units are also notified deadlines for goal setting, periodic monitoring and final appraisals. Importance of Performance Appraisal in Askari Bank It identifies employee current job i.e. What is he doing? It will help in identifying in week and strength points. It will help an employee to improve his or her performance. Organization compensation and rewards are all based on performance appraisal. It helps in documenting the HR policies. Method used in Askari Bank for performance appraisal A special document is used for performance appraisal in askari bank, which is known as GDD (graduate development document). Following are the main things, Which are included in document Assignments Job duties Achievement WUIXTCUIV YN YTIWREVINU 29
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5. MARKETING SECTION
FUNCTION OF MARKETING DEPARTMENT
There are following function of marketing Department Focus on the Customer Monitor the Competition Own the Brand Find & Direct Outside Vendors. Create New Ideas. Communicate Internally. Manage a Budget. Understand the ROI. Set the Strategy, Plan the Attack, and Execute.
5.1. PRODUCT LINES

PRODUCT AND SERVICES: A product AKBL includes all those services which customer normally required for effectively managing his business. AKBL offers the following financial services to its customers. 1. 2. 3. 4. 5. Deposits Advances Products International banking services Agency services to customers
Deposits One of the basic functions of commercial banking is to receive deposits. AKBL accepts deposits in both local & foreign currency. Local Currency Deposits Current Account PLS Saving Account WUIXTCUIV YN YTIWREVINU 30
INTERNSHIP REPORT Term Deposit Notice Deposit Askari Faida Account Askari Special Deposit Account Value Plus Saving Account Current Account A current account is a running & active account, which may be operated upon any number of transactions during a working day. The banker undertakes to repay these on demand & therefore theses accounts are called demand deposits. Transaction fee The bank charges no transaction fees if the minimum balance requirement is met. However, if the average balance falls below the min. balance then the fees is charged at the rate of Rs. 10 per transaction. Saving Accounts The saving account is usually opened by lower or middle class people so that they can meet their future contingencies, as the objective of such account is to promotion. The habit of thrift among people, the bank impose certain restrictions on withdrawals from the saving accounts.
Transaction fees
Transaction fees are charged of Rs. 25 per transaction if the min balance is not met.
Advances
INTERNSHIP REPORT Advances are major sources of earning of income for commercial banks. Banks attracts surplus balances from the customers at low interest rates & makes advances at higher interest rates to the individuals or business firms. AKBL offer these facilities in two forms: Funded facilities Non- Funded facilities
Askari Mahana Bachat Account

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 dont 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.
Askari Roshan Mustaqbil Deposit
INTERNSHIP REPORT Askari Bank has launched the Askari Roshan Mustaqbil Deposit, a saving plan specially designed for individual investors who wish to invest now 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 now in the form of monthly deposits for five years and get paid back the same amount for the next five years while receiving your principal amount in full at the end of the tenure.
Askari Deposit Multiplier Account

Value of initial investment of Rs. 100,000/- will increase to Rs. 265,000/- at maturity! 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.
Value plus Deposits
INTERNSHIP REPORT 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 unmatched way. Now you can open a "Value Plus Account" while enjoying the flexibility of a normal checking account.
ASKARI CARD
Askari Bank enjoys a strategic competitive advantage over all domestic players by virtue of its leadership, large network and technological advancement. In line with our tradition of innovation, Askari Bank takes pride in announcing launch of Askari Bank's Debit Card.
TRAVELERS CHEQUES
Askari Bank Limited has always remained at forefront in introducing innovative and unique products in banking sector. Our financial instruments provide greater financial freedom and security in an unmatched way to our valued customers. .
SMART CASH
INTERNSHIP REPORT This personal line of credit would be set up with a specified credit limit upto Rs. 500,000/-
PERSONAL FINANCE
Personal Finance is a parameter driven product for catering to the needs of the general public belonging to different segments. One can avail unlimited opportunities through Askari Bank's Personal Finance. With unmatched finance features in terms of loan amount, payback period and most affordable monthly installments, Askari Bank's Personal Finance makes sure that one gets the most out of his/her loan. Once a good credit history is established, the door to opportunity opens much wider.
MORTGAGE FINANCE
Askari "Mortgage Finance" offers the convenience of owning a house of choice, while living in it at its rental value. The installment plan has carefully designed to suit both the budget & accommodation requirements. It has been designed for enhancing financing facility initially for employees of corporate companies for purchase/
INTERNSHIP REPORT construction/ renovation of house.
AGRICULTURE PRODUCTS:
Askari Kissan Ever Green Finance Askari Kissan Tractor Finance Askari Kissan Aabpashi Finance Askari Kissan Livestock Development Finance Askari Kissan Farm Mechanization Finance Askari Kissan Farm Transport Finance
5.2.
Marketing Mix
Bank Limited. During my internship the Bank. All it is done
Four Ps of marketing with regard to Askari
marketing department, I scrutinized 4Ps with respect to Askari
particularly with the combined efforts of marketing departments or any of its officials. These 4Ps are; Product means "Products and Services Provided of AKBL" Price means "Commission and Bank Charges Received as per SOC schedule of charges" Promotion means "Promotion of products and Services of AKBL" Place mean "Placement of Products or Services on different locations of the country and abroad i.e. Network of branches"
Price
Askari Bank provides various facilities to its valued customers at reasonable rates and charges.
Place
INTERNSHIP REPORT Place is an important variable of marketing mix. Success of every organization largely depends upon its distribution channels and networks. AKBL strategy is to maximize the synergies of branch network through an optimal allocation of resources. AKBL realizes the importance of location of its branches. Therefore before opening any branch it carries out a complete survey of regarding the location and the financial needs of the residents of that particular area. Askaris mission is to cater the business demands of its existing as well as potential customers. As a result Bank is well positioned and geographically poised to provide the required financial facilities to its clientele. The branches are spread all over Pakistan covering principal cities and major business areas. These branches are providing excellent services to the customers.
Promotion
Promotion is one of the most important contributors to the success of any organization whether it is a Banking company or a non-Banking company. Askari Bank realizes the importance of this variable of marketing mix. In todays competitive environment
Promotion has emerged as an important factor along with the quality of services and products. Askari uses various promotional techniques to attract customers. Askari Bank does not charge various service charges, which are charged by the other Banks for instance no amount is charged for the issuance of Bank statements and account maintenance certificate etc. These concessions are given to attract the customers So I can conclude that practical experience in Credit, foreign trade & operation department is in fact Marketing Learning and different skills are better achieved through experience, internship is one of them. It also shows how marketing simulation work: beginnings, current WUIXTCUIV YN YTIWREVINU 37
INTERNSHIP REPORT development, nature and results, practical applications and main differences that can be achieved only through practical. It gives strength to the importance of learning process of marketing as well as disciplines. The selection of clients who will buy products of Askari Bank is done through practical experience.
5.3. CRITICAL ANALYSIS

The company analysis of a firm comprises of many factors and revolves around all the internal activities, which refer to the operations carried out, strategies that are a part of the marketing mix and the environment in which the firm or company has to survive. All these factors are linked to one another in some form and make a chain of necessities for the achievement of a successful status in the market. Askari Bank is no different than any other firm and faces the same challenges on its face ahead.
5.3.1. SWOT ANALYSIS Strengths Askaris image and reputation in the market is its major strength. Askari has a strong ownership structure. Their motto is inspiring relationships which shows their positive relation and care for their customers and employees, providing them with a diversified portfolio of products. Easy access to the customers at their residential localities because of its suitable location is an added benefit for the customers. The head office is situated in the heart of the city of Rawalpindi.
INTERNSHIP REPORT Askari has always hired motivated and loyal bankers. Best and attractive compensation packages for employees have really improved their commitment, dedication and hard work towards the accomplishment of particular branch objectives. Training sessions further polish their skills so that they can deliver at their best. The bank has an extensive branch network which helps in business booking. The automation within the bank is a major strength which improves the turnaround time.
Weaknesses Although Askari Banks one of the leading banks of Pakistan but it still has some areas for improvement. The network of branches covering the whole area of Islamabad and Rawalpindi is not quite enough to compete with the local giants like NBP, UBL, and MCB. Askari also needs to improve its IT Information Security Section as fire walls need to be built to secure the system to avoid hoax mail. Service quality and marketing efforts at the branch level also needs improvement for mobilization of CASA deposit. Recently, there has been a change of ownership and management of the bank. The new management is making a lot of changes in the bank by firing the experienced staff across the bank. This has created dissatisfaction and frustration amongst the staff who are now looking for jobs elsewhere. This is hampering the operations of the bank. Opportunities
INTERNSHIP REPORT International presence should be taken as an opportunity to get more business and to be known all over the world. The network within Pakistan should be expanded since the industry is growing and flourishing. Recently the ownership of the bank has changed from Army Welfare Trust to Fauji Foundation Group. This group is a diversified financial conglomerate with tremendous growth opportunities. The bank needs to capture a significant portion of their business to improve profitability. The bank has recently started branchless banking. However, full potential has not been capitalized as there are unbanked sectors to which the bank needs to increase its outreach and financial inclusion.
Threats There are a significant number of large and middle tier banks which are providing tough competition to Askari bank in terms of capturing low cost deposit, growth in advances, alternate delivery channels etc These banks provide highly specialized and attractive services to their customers. Growing global technological advancement is another threat because the bank has to keep updated with the latest advancements to stay in competition.
Keeping the staff motivated in the environment of uncertainty and change management is a threat to the organization.
5.3.2. PEST ANALYSIS

Political Analysis Askari Bank is operating in one of the worlds most volatile political environment. On one side there is a very week and unpopular government and on the other there is war against WUIXTCUIV YN YTIWREVINU 40
INTERNSHIP REPORT terror going on. Since Askari bank was a part of Army Welfare Trust which is run by Pakistan Army so it has the advantage of not being interfered directly by the government but political forces impact Askaris business through consumers and businesses which are affected directly by political instability. Economic Analysis The outlook for the Pakistani banking sector remains relatively downbeat despite the potentially vast consumer market in the country. The purchasing power of the customers is seriously hampered because of the weak economic indicators such as high inflation, unemployment, etc. Pakistan has several characteristics that make for a favorable banking sector outlook for instance buoyant demographics, a domestic economy geared towards private consumption and an extremely under-banked population. However, we should not expect rapid sector development over the medium term as these positive factors are neutralized by an unstable security/economic outlook , effecting the repayment capacity of the borrowers , a below-potential growth path for the economy , and domestic/international recession that has put a lot of pressure on the economy.
Social Analysis There has been a marked increase in the use of credit cards in Pakistan but the usage is currently limited to educated middle class only. At the same time accelerated by the spread of internet in the country people are more inclined to use the net to do banking transactions specially bill payments and within the bank transactions. Since Askari bank has the reputation of being a conservative bank some consumers are quite loyal and will stay with the bank even under tough economic situation or in the presence of alternatives. Technological Analysis
INTERNSHIP REPORT Technology makes it possible to empower the system and establish a competitive advantage. Pioneering the new ideas, adding the skills and operational excellence are part of the guiding principle of the organization. Askari has recently been investing heavily in information technology. They use state of the art software Flex cube for branch banking which captures almost all the requisite details of the customer and various MIS reports for senior management analysis and decision making can be facilitated from the said software.
INTERNSHIP REPORT
6. FINANCE SECTION
6.1. Source Of Funds
The bank finance policy is acquiring funds from the following sources: Deposits of Accounts holders Fixed deposit of customer Sales of share General banking income Interest on advances and loans granted to the borrowers. Income and commission from the services provided by the bank. Bank opens various types of accounts for its customers services are provided for earning. Interest income and commission bank providing the services to its customer.
6.2. GENERATION OF FUNDS

Sales of shares Fixed deposit from customer
6.3. ALLOCATION OF FUNDS:

After the acquisition of the funds their acquisitions becomes necessary. The bank seeks the best way for making investment to get more profit with the maximum security. The bank has an investment portfolio in which it allocate its funds for crediting to borrows, investment in the stock market, investment in the real estate property etc. For the allocation of funds a bank has to follow some banking policies and the prudential regulations of SBP these are: A bank has to maintain liquidity with state bank of Pakistan, i.e. 25% of its total deposits.
INTERNSHIP REPORT A bank cannot invest all of its funds otherwise it will be difficult to meet urgent needs. A substantial part of funds received from interest on loans and advances. Before granting a loan the bank analyzes and observes the major thing is granting an advance is the security offered by the borrower and its actual market value. Lending to financial institutions Lending people on interest like loans, car finance. House finance.
INTERNSHIP REPORT 6.4. LAST FIVE YEARS ABALANCE SHEET OF ASKARI BANK BALANCE SHEET ASSETS Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Deferred tax assets Other assets TOTAL ASSETS LIABILITIES Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Liabilities against assets subject to finance lease Deferred tax liabilities Other liabilities TOTAL LIABILITIES NET ASSETS OWNER'S EQUITY Share capital Reserves Unappropriated profits Non-Controling intrest Surplus on Revaluation of Assets TOTAL OWNER'S EQUITY TOTAL LIABILITIES + OWNER'S EQUITY 2008 2009 2010 2011 2012
16,029,666 3,967,816 4,479,754 35,464,972 128,818,242 8,345,054 0 9,021,883 206,127,387 2,584,828 15,190,148 167,505,312 2,996,100
19,385,850 8,374,640 4,649,059 66,885,617 135,039,901 9,332,361 0 10,686,010 254,353,438 2,945,670 19,300,163 205,912,903 5,994,900
22,565,190 3,787,538 9,194,186 102,100,063 152,784,254 10,084,422 0 14,264,476 314,780,129 3,089,984 25,554,777 255,908,149 5,992,500
26,168,206 24,435,422 6,236,116 8,865,303 1,613,584 133,655,387 150,712,556 9,451,033 0 16,028,838 343,865,720 6,341,474 145,354,253 143,727,835 8,901,522 0 15,585,465 353,211,274
2,756,032 3,700,156 17,274,979 8,376,740 291,499,395 306,929,729 6,990,100 6,987,300
16,573 16,173 4,779,448 392,257,292 13,038,805 4,058,774 7,689,227 338,225 16,111 936,468 13,038,805
11,543 333,925 4,866,463 480,946,386 14,987,871 5,073,467 7,287,041 803,716 17,263 1,806,384 14,987,871
5,556 85,507 8,111,431 603,207,530 16,032,225 6,427,440 7,712,855 679,638 28,728 1,183,564 16,032,225
2,893 1,018 46,908 83,139 7,413,555 7,305,811 655,327,118 673,121,823 17,881,858 19,827,381 7,070,184 8,135,795 1,380,018 28,377 8,130,711 8,541,776 1,114,869 29,441
1,267,484 2,010,584 17,881,858 19,827,381
206,127,387
254,353,438
314,780,129
343,865,720 353,211,274
INTERNSHIP REPORT VERTICAL ANALYSIS: Technique for identifying relationship between items in the same financial statement by expressing all amounts as the percentage of the total amount taken as 100. In a balance sheet, for example, cash and other assets are shown as a percentage of the total assets and, in an income statement, each expense is shown as a percentage of the sales revenue. Financial statements using this technique are called common size financial statements
dividing each expense item in the income statement of a given year by net sales to identify expense items that rise more quickly or more slowly than a change in sales. For example, an analyst may study a firms balance sheet to compare the level of current assets with the level of current liabilities in order to measure liquidity. Analyst often studies a firms income statement to compare net income with total sales.
HORIZONTAL ANALYSIS: A procedure in fundamental analysis in which an analyst compares ratios or line items in a company's financial statements over a certain period of time. The analyst will use his or her discretion when choosing a particular timeline; however, the decision is often based on the investing time horizon under consideration. The process of dividing each expense item of a given year by the same expense item in the base year. It allows assessment of changes in the relative importance of expense item over time and the behavior of expense items as sales change.
INTERNSHIP REPORT 6.4.1. BALANCE SHEET VERTICAL ANALYSIS BALANCE SHEET ASSETS Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Deferred tax assets Other assets TOTAL ASSETS LIABILITIES Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Liabilities against assets subject to finance lease Deferred tax liabilities Other liabilities TOTAL LIABILITIES NET ASSETS OWNER'S EQUITY Share capital Reserves Unappropriated profits Non-Controling intrest Surplus on Revaluation of Assets TOTAL OWNER'S EQUITY TOTAL LIABILITIES + OWNER'S EQUITY 2008 7.78% 1.92% 2.17% 17.21% 62.49% 4.05% 0.00% 4.38% 100.00% 1.25% 7.37% 81.26% 1.45% 0.01% 0.01% 2.32% 93.67% 6.33% 1.97% 3.73% 0.16% 0.01% 0.45% 6.33% 100.00% 2009 7.62% 3.29% 1.83% 26.30% 53.09% 3.67% 0.00% 4.20% 100.00% 1.16% 7.59% 80.96% 2.36% 0.00% 0.13% 1.91% 94.11% 5.89% 1.99% 2.86% 0.32% 0.01% 0.71% 5.89% 100.00% 2010 7.17% 1.20% 2.92% 32.44% 48.54% 3.20% 0.00% 4.53% 100.00% 0.98% 8.12% 81.30% 1.90% 0.00% 0.03% 2.58% 94.91% 5.09% 2.04% 2.45% 0.22% 0.01% 0.38% 5.09% 100.00% 2011 7.61% 1.81% 0.47% 38.87% 43.83% 2.75% 0.00% 4.66% 100.00% 0.80% 5.02% 84.77% 2.03% 0.00% 0.01% 2.16% 94.80% 5.20% 2.06% 2.37% 0.40% 0.01% 0.37% 5.20% 100.00% 2012 6.92% 2.51% 1.80% 41.15% 40.69% 2.52% 0.00% 4.41% 100.00% 1.05% 2.37% 86.90% 1.98% 0.00% 0.02% 2.07% 94.39% 5.61% 2.30% 2.42% 0.32% 0.01% 0.57% 5.61% 100.00%
INTERNSHIP REPORT 6.4.2. BALANCE SHEET HORIZONTAL ANALYSIS BALANCE SHEET ASSETS Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Deferred tax assets Other assets TOTAL ASSETS LIABILITIES Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Liabilities against assets subject to finance lease Deferred tax liabilities Other liabilities TOTAL LIABILITIES NET ASSETS OWNER'S EQUITY Share capital Reserves Unappropriated profits Non-Controling intrest Surplus on Revaluation of Assets TOTAL OWNER'S EQUITY TOTAL LIABILITIES + OWNER'S EQUITY 2008 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 2009 120.94% 211.06% 103.78% 188.60% 104.83% 111.83% 2010 140.77% 95.46% 205.24% 287.89% 118.60% 120.84% 2011 163.25% 157.17% 36.02% 376.87% 117.00% 113.25% 0.00% 177.67% 166.82% 106.62% 113.72% 174.02% 233.31% 17.46% 290.04% 155.11% 168.83% 137.14% 174.20% 105.81% 408.02% 176.13% 135.35% 137.14% 166.82% 2012 152.44% 223.43% 141.56% 409.85% 111.57% 106.67% 0.00% 172.75% 171.36% 143.15% 55.15% 183.24% 233.21% 6.14% 514.06% 152.86% 172.66% 152.06% 200.32% 111.09% 329.62% 182.74% 214.70% 152.06% 171.36%
0.00% 0.00% 118.45% 158.11% 123.40% 152.71% 113.96% 127.06% 122.93% 200.09% 69.65% 119.54% 168.23% 152.78% 200.01% 33.52%
2064.71% 528.70% 101.82% 169.71% 123.97% 154.72% 114.95% 122.96% 125.00% 94.77% 237.63% 107.15% 192.89% 114.95% 123.40% 158.36% 100.31% 200.94% 178.31% 126.39% 122.96% 152.71%
INTERNSHIP REPORT 6.5. PROFIT & LOSS STATEMENT OF ASKARI BANK

PROFIT & LOSS ACCOUNT 2008 2009 2010 2011 2012
Mark-up / return / interest earned Mark-up / return / interest expensed
18,395,742 10,647,277 7,748,465 3,824,778 0
22,590,230 13,542,210 9,048,020 2,324,377 431,058
27954956 17931715 10023241 2319280 382764
32,768,950 22,699,089 10069861 1,630,123 122,421
32,404,345 22,973,385 9,430,960 2,342,473 148,575
Net mark-up / interest income

Provision against non-performing loans and advances net Impairment loss on available for sale investments Provision / (reversal) for diminution in the value of investments net Provision against purchase under resale arrangement Bad debts written off directly
508 0 247,360
76,784 82,674 0
267873 65808 0
-15,775 34,702 0
201,265 0 1,043
Net mark-up / interest income after provisions Non mark-up / interest income
Fee, commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale of securities net Unrealised gain / Loss on revaluation of investments Other income
3,675,819
6,133,127
6987516
8298390
6737604
1,418,588
173,743
1,382,346
162,537
1329477
209,922
1,297,332
289,470
1,173,558
1,036,249
873,512 42,824 22,375 343,435
528,159 143,717 -405 409,191
13,011 213,735 -3,799 471,707
772,495 310,384 80 348,009
884,724 688,424 986 532,275
Total non-markup Income Non mark-up / interest expenses

Administrative expenses Other provisions / write offs Other charges
2,874,477 6,550,296
2,625,545 8,758,672
2,234,053 9,221,569
3,017,770 11,316,160
4,316,216 11,053,820
6,035,800 739 10,987
7,124,693 0 34,368
7,937,367 30,136 42,453
8,787,381 0 86,784
9,226,563 8,633 80,381
Total non-markup / interest expenses

Share of profit of associate
6,047,526 502,770
0
7,159,061 1,599,611
0
8,009,956 1,211,613
38,014
8,874,165 2,441,995
12,949
9,315,577 1,738,243
27,814
Profit before taxation

Taxation
502,770
87,715
1,599,611
530,747
1,249,627
330,166
2,454,944
749,737
1,766,057
476,912
Profit after taxation
415,055
1,068,864
919,461
1,705,207
1,289,145
INTERNSHIP REPORT 6.5.1. PROFIT & LOSS VERTICAL ANALYSIS PROFIT & LOSS ACCOUNT Mark-up / return / interest earned Mark-up / return / interest expensed Net mark-up / interest income Provision against non-performing loans and advances net Impairment loss on available for sale investments Provision / (reversal) for diminution in the value of investments net Provision against purchase under resale arrangement Bad debts written off directly Net mark-up / interest income after provisions Non mark-up / interest income Fee, commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale of securities net Unrealised gain / Loss on revaluation of investments Other income Total non-markup / interest income Non mark-up / interest expenses Administrative expenses Other provisions / write offs Other charges Total non-markup / interest expenses Share of profit of associate Extra ordinary / unusual items Profit before taxation Taxation Profit after taxation 2008 2009 2010 2011 2012
100.00% 100.00% 100.00% 100.00% 100.00% 57.88% 59.95% 64.15% 69.27% 70.90% 42.12% 40.05% 35.85% 30.73% 29.10% 20.79% 0.00% 0.00% 0.00% 1.34% 19.98% 7.71% 0.94% 4.75% 0.23% 0.12% 1.87% 15.63% 35.61% 32.81% 0.00% 0.06% 32.87% 2.73% 0.00% 0.00% 2.73% 0.48% 2.26% 10.29% 1.91% 0.34% 19.18% 0.00% 27.15% 6.12% 0.72% 2.34% 0.64% 0.00% 1.81% 11.62% 38.77% 31.54% 0.00% 0.15% 31.69% 7.08% 0.00% 0.00% 7.08% 2.35% 4.73% 8.30% 1.37% 0.96% 0.24% 0.00% 25.00% 4.76% 0.75% 0.05% 0.76% -0.01% 1.69% 7.99% 32.99% 28.39% 0.11% 0.15% 28.65% 4.33% 0.14% 0.00% 4.47% 1.18% 3.29% 4.97% 0.37% -0.05% 0.11% 0.00% 25.32% 3.96% 0.88% 2.36% 0.95% 0.00% 1.06% 9.21% 34.53% 26.82% 0.00% 0.26% 27.08% 7.45% 0.04% 0.00% 7.49% 2.29% 5.20% 7.23% 0.46% 0.62% 0.00% 0.00% 20.79% 3.62% 3.20% 2.73% 2.12% 0.00% 1.64% 13.32% 34.11% 28.47% 0.03% 0.25% 28.75% 5.36% 0.09% 0.00% 5.45% 1.47% 3.98%
INTERNSHIP REPORT 6.5.2. PROFIT & LOSS HORIZONTAL ANALYSIS PROFIT & LOSS ACCOUNT Mark-up / return / interest earned Mark-up / return / interest expensed Net mark-up / interest income Provision against non-performing loans and advances net Impairment loss on available for sale investments Provision / (reversal) for diminution in the value of investments net Provision against purchase under resale arrangement Bad debts written off directly Net mark-up / interest income after provisions Non mark-up / interest income Fee, commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale of securities net Unrealised gain / Loss on revaluation of investments Other income Total non-markup / interest income Administrative expenses Other provisions / write offs Other charges Total non-markup / interest expenses 2008 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 0.00% 0.00% 166.85% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 97.45% 93.55% 60.46% 335.60% -1.81% 119.15% 91.34% 133.71% 118.04% 0.00% 312.81% 93.72% 120.82% 1.49% 499.10% -16.98% 137.35% 77.72% 140.78% 131.50% 4077.94% 386.39% 132.45% 240.99% 0.00% 0.00% 248.55% 376.41% 221.53% 91.45% 166.61% 88.44% 724.79% 0.36% 101.33% 104.99% 172.76% 145.59% 0.00% 789.88% 146.74% 485.71% 0.00% 0.00% 488.28% 854.74% 410.84% 82.73% 596.43% 101.28% 1607.57% 4.41% 154.99% 150.16% 168.75% 152.86% 1168.20% 731.60% 154.04% 345.73% 0.00% 0.00% 351.27% 543.71% 310.60% 0.00% 0.00% 190.09% 0.00% 0.00% 225.76% 0.00% 0.42% 183.30% 0.00% 0.00% 15114.96% 52730.91% 3105.31% 39619.09% 0.00% 0.00% 2009 122.80% 127.19% 116.77% 60.77% 2010 151.96% 168.42% 129.36% 60.64% 2011 178.13% 213.19% 129.96% 42.62% 2012 176.15% 215.77% 121.71% 61.24%
118.38% 100.00% 318.16% 100.00% Share of profit of associate 0.00% 100.00% Extra ordinary / unusual items 0.00% 100.00% Profit before taxation 318.16% 100.00% Taxation 605.08% Profit after taxation 100.00% 257.52% WUIXTCUIV YN YTIWREVINU 51
INTERNSHIP REPORT
Interpretations
The industry figures shows that Askari bank with compare to the above mentioned bank is striving in terms of profits , advances, deposits and total assets. Lot of effort is required
but since its incorporation its growth is satisfactory and in the future AKBL will give the tough tine to the competitors.
INTERNSHIP REPORT
6.6. RATIO ANALYSIS

Ratios provide the means of showing the relationship, which exists between, figures of the Balance Sheets and Income Statements. The analysis is undertaken to assess important characteristics of business like liquidity, solvency and profitability. Some of the ratios calculated for Askari Bank Limited are given below.
LIQUIDITY RATIOS
Comparison gives an indication of the short-term debt paying ability of an entity. Since a bank is also a business firm so to maintain adequate liquidity is also crucial to carry out business activity. Current Ratio It is used to measure the ability of an enterprise to meet its current liabilities out of current assets. Current Ratio = Current Assets/Current Liabilities Year current assets current liabilities current ratio Current Ratio 2008 2009 2010 2011 2012
63,998,354 69,675,314 88,985,011 84,078,845 75,503,441 0 0 0 0 0
3 2.5 2 1.5 1 0.5 0 2008 2009 2010 2011 2012
CURRENT RATIO
INTERNSHIP REPORT Advance to Deposit Ratio Advance to deposits ratio tells that how much of the funds received as deposits are distributed to the corporations and the general public in the form of loans and advances Advance to Deposit Ratio= Advances (gross)/Total Deposits Year Advances (gross) Total Deposits Advance to Deposit Ratio Advance to Deposit Ratio
3 2.5 2 1.5 1 0.5 0 2008 2009 2010 2011 2012
2008
2009
2010
2011
2012
139,830,973 147,633,745 168,435,880 167,381,246 162,855,583 170,501,412 211,907,803 261,900,649 298,489,495 313,917,029 82.01% 69.67% 64.31% 56.08% 51.88%
Advance to Deposit
Cash to Liabilities Ratio Cash to current liabilities ratio is another liquidity measure used to check that how much of the firms net cash have ability to pay off its current liabilities. Cash to Liabilities Ratio= Cash/ Current Liabilities Year Cash Current Liabilities Cash to Current Liabilities Ratio Cash to Liabilities Ratio
3 2.5 2 1.5 1
2008 19,997,482 63,998,354 0.31
2009 27,760,490 69,675,314 0.40
2010 26,352,728 88,985,011 0.30
2011 32,404,322 84,078,845 0.39
2012 33,300,725 75,503,441 0.44
Cash to Liabilities Ratio
DEBT RATIOS
0 2008 2009
0.5
2010
2011
2012
INTERNSHIP REPORT Solvency is a companys ability to meet its long-term obligations as they become due. An analysis of solvency concentrates on the long-term financial and operating structure of the business. Debt Ratio / Debt to Asset This ratios shows what percentage of total assets are the companys long term debt and will the company will be able to pay their long term debt? As this value will be, the company will be in strong position for long term financing. Debt Ratio= Total Liabilities/Total Assests Year Total Liabilities Total Assests Debt Ratio Debt Ratio 2008 193,088,582 193,090,590 2009 239,365,567 239,367,576 2010 2011 2012 333,383,893 333,385,905 0.999993964
298,747,904 325,983,862 298,749,914 325,985,873
0.999989599 0.999991605 0.999993271 0.99999383
3 2.5 2 1.5 1 0.5 0 2008 2009 2010 2011 2012
Cash to Liabilities Ratio
Debt to Equity Ratio Indicates how well creditors are protected in case of the company's insolvency. The debt to equity is a significant measure of solvency since a high degree of debt in a capital structure may make it difficult for the company to meet interest chargers and principal payments at maturity. Debt to Equity Ratio= Total Liabilities/ Owner's Equity WUIXTCUIV YN YTIWREVINU 55
INTERNSHIP REPORT Year Total Liabilities Owner's Equity Debt to Equity Ratio Debt to Equity Ratio
3 2.5 2 1.5 1 0.5 0 2008 2009 2010 2011 2012
2008
2009
2010
2011
2012
417,398,434 509,115,744 634,088,416 689,823,350 710,766,001 417,400,442 509,117,753 634,090,426 689,825,361 710,768,013 1.00 1.00 1.00 1.00 1.00
Debt Ratio
Time Interest Earned Ratio Time interest earned ratio is very important ratio from the creditor points of view. It tells that how much times the profits of the firm are enough to payout its interest expense. Time Interest Earned Ratio=Profits before Interest & Taxes/Interest (Financing cost)
Year
Profits before Interest & Taxes Interest (Financing cost) Time Interest Earned Ratio
2008
2009
2010
2011
2012
11,150,047 10,647,277
1.05
15,141,821 13,542,210
1.12
19,181,342 17931715
1.07
25,154,033 22,699,089
1.11
24,739,442 22,973,385
1.08
Time Interest Earned Ratio

3 2.5 2 1.5 1 0.5 0 2008 2009 2010 2011 2012
Time Interst Earned Ratio
PROFITABILITY RATIOS
This ratio shows that what percentage of net profit to the total income is. WUIXTCUIV YN YTIWREVINU 56
INTERNSHIP REPORT Profit Before Tax Margin Profit before Tax Margin= (Profit before Taxation/ Intrest Earned) x100 Year Profit before Taxation Intrest Earned Proft before tax margin 2008 2009 502,770 1,599,611 18,395,742 22,590,230 3% 7% 2010 2011 2012 1,249,627 2,454,944 1,766,057 27954956 32,768,950 32,404,345 4% 7% 5%
Profit before Tax Margin

3 2.5 2 1.5 1 0.5 0 2008 2009 2010 2011 2012
Profiax Margint Before T
Gross Spread Ratio Gross Spread Ratio = Net Mark-up Income / Gross Mark-up Income
Year
Net Mark-up Income Gross Mark-up Income Gross Spread Ratio
2008
2009
2010
2011
2012
924,8 3,24,,
29.10%
7,2,67 3,2766
30.72%
9239, ,723,9
34.37%
72743 ,,2587
34.28%
72743 782393
42.10%
Gross Spread Ratio

3 2.5 2 1.5 1 0.5 0 2008 2009 2010 2011 2012
Gross Spread Ratio
Return on Asset Return on investment (ROI) or return on assets, measures profitability per rupee of investment in assets. The ratio is calculated as under: WUIXTCUIV YN YTIWREVINU 57
INTERNSHIP REPORT Return on Asset= (Net Profit after tax/ Total Assets) x100 Year Net Profit after tax Total Assets Return on Assets Return on Asset
3 2.5 2 1.5 1 0.5 0 2008 2009 2010 2011 2012
2008 415,055 458,893 90.45%
2009 1,068,864 1,113,706 95.97%
2010 919,461 958,192 95.96%
2011 1,705,207 1,737,548 98.14%
2012 1,289,145 1,317,293 97.86%
Return on Asset
Return on Equity This ratio tells us the earning power on the shareholders equity. The higher ratio tells us the firms acceptance of strong investment opportunities and effective expense management. Return on Equity= Net Profit after tax/ Owner's Equity Year Net Profit after tax Owner's Equity Return on Equity Return on Equity 2008 415,055 417,063 99.52% 2009 1,068,864 1,070,873 99.81% 2010 919,461 921,471 99.78% 2011 1,705,207 1,707,218 99.88% 2012 1,289,145 1,291,157 99.84%
3 2.5 2 1.5 1 0.5 0 2008 2009 2010 2011 2012
Return on Equity
INTERNSHIP REPORT
ANALYSIS FOR INVESTOR/ MARKET RATIOS

Earnings Per Share The firms EPS are generally of interest to present shareholders. EPS represent the earning on behalf of each outstanding share of common stock Earnings Per Share= Net Profit after Tax/ Number of Share Outstanding Year Net Profit after tax Number of Share Outstanding Earning Per Share Earnings Per Share
3 2.5 2 1.5 1 0.5 0 2008 2009 2010 2011 2012
2008 415,055 405,877,308
2009 1,068,864 507,346,700
2010 919,461 642,744,335
2011 1,705,207 707,018,400
2012 1,289,145 813,071,084
0.001022612 0.002106772 0.001430524 0.002411828 0.001585526
Earning per Share
Price Earnings Ratio Measures the amount which investors are willing to for each rupee of firms earnings Price Earnings Ratio= Market Price Share/Earning per share
Year Market Price Share Earnings per share Price Earnings Ratio
2008 14.57 0.95
2009 27.3 2.18
2010 17.69 1.48
2011 10.03 2.30
2012 17.22 1.54
15.33684211 12.52293578 11.9527027 4.360869565 11.18181818
INTERNSHIP REPORT Price Earnings Ratio

3 2.5 2 1.5 1 0.5 0 2008 2009 2010 2011 2012
Price Earning Ratio
Y Y Y NET SPREAD OF ASKARI BANK FROM 2008-2012
Lending Year 2008 2009 2010 2011 2012
Rate (A)
10.90% 10.94% 10.59% 11.46% 10.97%
Borrowing Admin Cost Cost Rate (B) (C)

5.83% 6.01% 6.37% 7.35% 7.29% 3.60% 3.46% 3.10% 3.01% 3.01%
of Funds (B+C)
9.43% 9.47% 9.47% 10.36% 10.30%
Net Spread
1.47% 1.47% 0.85% 1.10% 0.67%
Net Spread of Askari bank

3 2.5 2 1.5 1 0.5 0 2008 2009 2010 2011 2012
Net Spread of AKBL 2008-2012
INTERNSHIP REPORT INFECTION RATIO Infection ratio signifies the illness of the banking company owing the non performing loans. Infection Ratio= Non-performing loans / Total Advances (gross) Year Non-performing loans Advances (gross) Infection Ratio 2008 11,689,417 2009 17,725,451 2010 21,598,648 2011 23,645,541 2012 26,518,448
139,830,973 147,633,745 168,435,880 167,381,246 162,855,583 8.36% 12.01% 12.82% 14.13% 16.28%
Infection Ratio
3 2.5 2 1.5 1 0.5 0 2008 2009 2010 2011 2012
Infection Ratio
6.7.
ORGANIZATION ANALYSIS WITH INDUSTRY

Bank Al-Flah 2012 4,556,121 248,345,992 457,118,723 22,181,548 536,466,694 Faysal Bank 2012 1,422,882 Allied Bank 2012 11,882,367 Bank Al-Habib 2012 5,510,520
Peer Askari Competitors Bank 2012 Year Net Profits Total Advances Total Deposits Classified Loans Total Assets 1,289,145 162,855,583 306,929,729 26,518,448 353,211,274
190,851,275 288,920,715 153,453,820 240,712,826 514,702,444 340,386,558 27,549,729 20,667,561 3,705,730
313,064,332 632,301,706 453,353,942
INTERNSHIP REPORT
7. FUTURE PROSPECTS OF ASKARI BANK LIMITED Excessive paper work: It is notified that due to the lengthy procedure of paper work the
bank employee are over burdened. They are unable to give proper attention to the clients and face difficulties in getting their job done. One reason for lengthy procedure and excessive paper work in the bank is the lack of computerized technology. More accounts fewer deposits: Efficient banking is one, which does not emphasize on number of accounts but on greater amount of deposits. ASKARI BANK LIMITED is more interested in increasing its number of account irrespective to its deposit. Delegation of authority: Manager has very limited authority; he has to take the approval from his management authority i-e. In case of advance he has to take the approval of general and regional manager. The other problem is created, when the manager is not present in his office, the customer having to wait for hours. This discourages both customer and officers because they have to suffer a lot. Lack of specialized training: ASKARI BANK LIMITED does not provide adequate facility of specialized training to their staff. Training is generalized rather than specialized. As the worker finishes his training, he is inducted into a specific field without having great deal of knowledge about the field.
8. WEAKNESS ANALYSIS REASONS OF FAILURE

AKBL delivers quality products to its customers according to their need and requirements but following products are the failure of AKBL. SME Products Askari Malkiat Finance AMF Lease Finance Agri Products WUIXTCUIV YN YTIWREVINU 62
INTERNSHIP REPORT Askari Non-Farm Credit Development Finance Production Finance/Working Capital Finance Deposit Products Mahana Amdan Account The main reason for the failure of these products is that, these products could not satisfy customers and they are poorly marketed and are developed on assumptions. These products could not achieve desirable market share and could not proved customized solution blend with state of the art banking facilities for the business community. These products could not attract NTB relations (new to bank relations) as were expected.
9. Conclusion
In my view Askari Bank should introduce new products & services which will have to be introduced in the bank by analyzing the customer needs and market demands which will build the image and prestige of the Bank among the customers. Bank has lot of potential to become a leader in the banking sector. The experience in working as an intern was very informative and I learned a lot about the functions and responsibility of oversight performed by the Risk Management Division of Askari Bank especially in credit risk area. I was given ample time and opportunity to learn and my supervisors were very satisfied with my performance. I was also helped with the fact that my supervisors were very supportive and helped me all along in understanding any complexity I encountered. So, overall it was a great experience
INTERNSHIP REPORT for me to work in Askari Bank and it helped me in nurturing my professional upbringing, which is still in its infancy stage as I am a full time student of business at the university. This internship report compiles the experience gained by me during the course of my internship period with Askari Bank. I sincerely appreciate them for giving me this opportunity.
10. Recommendations
This is a fact that in this universe nothing is perfect. In every field of life there are some pluses and minuses. But the best institutions are those, which learn from the changing environment and competition. So it is necessary for them to remain updated with the changing environment. I recommend the following improvements to askari bank , which if followed can improve the efficiency and performance of the bank. Marketing department is very active but the feedback or the follow up of the customers should be improved. The ATM service should be provided 24 hours. Because customers feel upset when most of the times the machine is out of order. Complaints handling mechanism must be refined and clear policies and procedures be set out in order to smooth the process and provide quick relief to the customer complaining about any product. This will favorably increase the repute of the organization.
Y WUIXTCUIV YN YTIWREVINU 64
INTERNSHIP REPORT
11. REFERENCES & SOURCES USED

In the preparation of this internship report a lot of effort is put and number of sources is used for the collection of data and calculations. All used sources are mentioned below; www.askaribank.com.pk www.google.com www.Secribe.com Annual Report 2008, 2009, 2010. 2011. 2012 published by AKBL, Head Office Rawalpindi Financial Review of Banking Sector by State Bank of Pakistan Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y WUIXTCUIV YN YTIWREVINU 65
INTERNSHIP REPORT Y7,
Y Account opening form Deposit slips Bundle cover vouchers
Y Y Y Y Y Y Y Y Y Y Y Y WUIXTCUIV YN YTIWREVINU 66
INTERNSHIP REPORT Y Y Y Y Y Y
Y Y Y Y Y Y

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INTERNSHIP REPORT

Internship Report on Askari Bank Ltd (Okara Branch)

Submitted by: Hasan Iqbal Roll # 30 Session: 2010-2014

Department Of Management Sciences University Of Education Okara

FROM THE GLORIOUS QURAN

Thank you all!

Table of contents Sr. No

INTERNSHIP REPORT 4.1.2 4.2 Functions & Responsibilities of various Departments 20 21 22 23 23 24 24 26 27 28 29 30 37 38 39 41 42 42 42 42 44 46 18

4.3 4.4 4.5 4.6 4.7 4.8

INTERNSHIP REPORT 6.4.2 6.5 Balance Sheet Horizontal Analysis 48 49 50 51 61 61 62 63 64 65 66 47

Ratio Analysis Organizational Analysis with other firms in industry

2- OBJECTIVES OF STUDYING THE ORGANIZATION

3- OVERVIEW OF THE ORGANIZATION

3.1- BREIF HISTORY OF THE ASKARI BANK LIMITED

3.1.1- CREDIT RATING

3.1.2- ASKARI BANK VISION

3.1.3- ASKARI BANK MISSION

3.1.4- ORGANIZATIONAL OBJECTIVE

3.2- NATURE OF THE ORGANIZATION

INTERNSHIP REPORT Presence in Countries Pakistan and Bahrain

Profit after taxation

Rs. 1,255 as on 31-12-2012

Earnings per Share

3.3- ORGANIZATION BUSINESS VOLUME:

3.4- TOTAL NUMBER OF EMPLOYEES IN ASKARI BANK

4-HUMAN RESOURCE SECTION

Group Head Corp. Banking & Financial institution

President & Chief Executive Board of directors Executive Committee

Group Head Retail Banking

4.1.1. ORANIZATION STRUCTURE OF BRANCH

Vice President Assistant Vice President Branch Manager

Non Clerical Staff: Guards & Peaon

Clerical Staff : Cashier Typiest & Clerks

4.1.2. FUNCTIONS AND RESPONSIBILITIES OF VARIOUS DEPARTMENTS

Account Opening Procedure

INTERNSHIP REPORT Expiry date of CNIC Nationality etc.

4.2. STRUCTURE OF FINANCE DEPARTMENT

4.2.1. FUNCTIONS OF ACCOUNT DEPARTMENT

4.2.2. Role of Financial Managers In Establishing Relationship

4.2.3. USE OF ELECTRONIC DATA IN DECISION MAKING

4.3. NUMBER OF EMPLOYEES WORKING IN BRANCH

4.4. Job Analysis and Design

4.5. Job Description and Job Specification of Employees

4.6. Recruitment & Selection Procedure of Employees

INTERNSHIP REPORT Advertising Employment agencies Causal Application Leasing

4.7. Training & Development Procedure of Employees

4.8. PERFORMANCE APPRAISAL SYSTEM

5.1. PRODUCT LINES

Askari Mahana Bachat Account

Askari Roshan Mustaqbil Deposit

Askari Deposit Multiplier Account

Value plus Deposits

INTERNSHIP REPORT construction/ renovation of house.

Four Ps of marketing with regard to Askari

marketing department, I scrutinized 4Ps with respect to Askari

5.3. CRITICAL ANALYSIS

5.3.2. PEST ANALYSIS

6.2. GENERATION OF FUNDS

6.3. ALLOCATION OF FUNDS:

2,756,032 3,700,156 17,274,979 8,376,740 291,499,395 306,929,729 6,990,100 6,987,300

1,267,484 2,010,584 17,881,858 19,827,381

INTERNSHIP REPORT 6.5. PROFIT & LOSS STATEMENT OF ASKARI BANK

Mark-up / return / interest earned Mark-up / return / interest expensed

18,395,742 10,647,277 7,748,465 3,824,778 0