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

ACKNOWLEDGEMENT
A milestone of this nature could never have been possible to achie
ve without the support of a galaxy of some truly loving persons. The events a
nd 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 i
nternship report. My great appreciation goes to the whole team of Askari Ban
k Ltd DHA II Lahore. They provided me with every kind of help in the completi
on of this report. Let me also thank my teachers of Comsats Institute of Info
rmation Technology (CIIT) for the knowledge they gave me and their guidan
ce 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 provi
ded me love, support, patience & good knowledge.

Executive Summary
This internship report consists of profile of the banking sector (ind
ustry), 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 pr
ecise it discusses the inner details of the bank situated in Lahore DHA II Bran
ch. Askari Bank origin and its setup in Pakistan are also discussed in the repo
rt.
Askari Bank came to Pakistan and gave banking sector a new hori
zon, today Askari Bank has set firm foot in the industry.
The report further guides through the department and working of th
e general banking. The activities taking place in the bank, the vario
us products of banking are discussed in the report. The report is a v
ery good description of what Askari Bank and its significance is.

Introduction
The name bank is derived from a Latin word bancho meaning desk/
bench, used during the renaissance by the Florentines bankers, wh

o used to make transactions above a desk covered with a green tab

le cloth.
The first modern bank was founded in Italy in Genoa in 1406; its na
me 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 en
closed courtyard called macella on a long beach called bancu
A banker or bank is a financial institution that acts as a payment ag
ent for customers, and borrows and lends money. Banks act as pay
ment agents by conducting checking or current accounts for custom
ers, paying cheques drawn by customers on the bank, and collectin
g cheques deposited to customers' current accounts.
Banks borrow money by accepting funds deposited on current acco
unt, accepting term deposits and by issuing debt securities such as
banknotes and bonds. Banks lend money by making advances to c
ustomers on current account, by making installment loans, and by i
nvesting in marketable debt securities and other forms of lending.
Banking Companies Ordinance of 1962 defines banking as bankin
g means accepting, for the purpose of lending or investment, of dep
osits of money from public; repayable on demand or otherwise, and
withdraw able by cheques, drafts, to order or otherwise.

Industrial profile
Banking is one of the most sensitive businesses all over the world a
nd 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 fro

m 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 posi
tive and vital role in the overall economic development of the countr
y.
Pakistan has a well-developed banking system, which consists of a
wide variety of institutions ranging from a central bank to commerci
al banks and to specialized agencies to cater for special requireme
nts of specific sectors. The country started without any worthwhile b
anking network in 1947 but witnessed phenomenal growth in the fir
st two decades.
A major achievement of the reforms process has been the transfor
mation of a primarily state owned and weak banking sector into a h
ealthier, market based system, owned by the private sector. This ha
s been facilitated by the restructuring of major banks, ongoing cons
olidation of the sector through mergers and acquisitions, strengthen
ing of the regulatory regime and improvements in transparency, cor
porate governance and credit culture.

Classification of Banks
The commercial banks are classified into various types on the basis
of their spheres of activities, ownership, domicile etc. The main type
s 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

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

Pak Oman Investment Company Limited

Saudi Pak Industrial & Agricultural Investment Company (Pvt.) Limited

Small and Medium Enterprise (PBA subgroup under for

mation):

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 i

n October 2006)

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 Decem

ber 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

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 ba
nking system created an industry structure where competition was
unknown to management of the banks, Forced by the structural ref
orms agenda and the desire to strengthen its financial system. Paki
stan moved towards liberalization and financial sector deregulation i
n 1990. It started with the privatization of state owned commercial b
anks and induction of new ones from private sector established a m
arket base banking system. The government seems to be consciou
s about improving the efficiency of banking sector in Pakistan. Few
considerable efforts have been made in this regard which include e

nhanced capital adequacy, strengthening asset quality, improving m

anagement and increasing earnings. Furthermore interest rates der
egulation, abolition of credit controls and further developments in ca
pital market have also led towards a more competitive banking envi
ronment.
The deregulated and increasingly competitive environment poses a
challenge in terms of efficiency as the most efficient banks would su
rvive while the less efficient will be driven out of the market. This ph
enomenon of deregulation started from when banks privatized to in
crease efficiency and effectiveness. The government of Pakistan pe
rmitted small private sectors banks to operate, which indulged in do
ubtful policies to promote business. The public sector banking whic
h constituted the backbone, thus continued to suffer because of thei
r 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 busine
ss, leaving the routine business to local banks. This reduced the pr
ofitability of the local banks. Banking industry has grown and still gr
owing as numbers of banks are increasing and other new entrants
are coming to Pakistan.

Pakistan Banks Association

Pakistan Banks Association (PBA) represents the Pakistan Bank
ing 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 Ban

ks operating in Pakistan. Currently there are 47 members, categoriz

ed into 6 groups (one of these groups is under formation). Its gover

ning body is an Executive Committee (EC) comprising of 14 memb
ers, represented by the Chief Executives of the respective member
institutions. Over the years the role of PBA has broadened consider
ably. It is now referred to by the State Bank of Pakistan in formulatio
n of regulations for the banking industry, and has been entrusted wi
th the function of regulating and monitoring certain services provide
d to the banking industry by outside service providers. These servic
e providers include Professional Values, who are evaluators allow
ed to appraise the values of assets collateralized to banks, and Sec
urity Agencies offering security services to the Banking Industry.

Trends of the Banking Industry

Pakistani Banking Industry these days has indulged itself in the foll
owing activities to fulfill the needs of the society.

Consumer Financing
1. House financing
2. Auto financing

Micro credit financing

Islamic Banking

Consumer financing:
Most of the commercial banks have ventured into consumer financi
ng. Consumer financing as the name indicates is simply financing f
or their consumers that may include financing for household produc

ts. Consumer financing also involves two major categories of produ

cts 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 pro
viding funds to the consumers especially for the purpose of buying or l
easing a house. In some banks it is also known as house loans.

Auto financing is another important concept undertaken by banking th

ese 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 fina
ncing 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 th
em 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 r
eturn of doing the favor to the customers, the bank charges a certai
n amount of interest on the amount it gives to the customer for purc
hasing of the house or the car and that is where they make profits.

Micro Credit financing:

Micro financing focuses on the people with personal commitment to
improve their lot, do honest labor and have a genuine need for smal
l loans.
Large loans imply few beneficiaries and similarly if big loans default
their losses can be equally hazardous. Converse is true for Micro C
redit Loans.
Due to the tough economic conditions and failure of giant industrial
enterprise all over the world, people have started shifting from big l

oans to small loans and similarly from Industrial financing to consu

mer financing.

Islamic Banking:
Islamic banking is a phenomenon which is continuously gaining pop
ularity in the country, a-lot of effort is being put in to make Islamic b
anking penetrate through the conventional banking. The SBP has in
itiated the process the process of converting conventional banks int
o Islamic banks while the government has initiated a parallel bankin
g strategy of promoting Islamic banking alongside the conventional
banking. Islamic banking is not much different from the conventiona
l banking in terms of the processes being carried out but it deals wit
h all in a more Islamic way for e.g. they dont charge interest in Isla
mic banking, they only take profits which is in fixed amounts of mon
ey not interest rate over the loan disbursed.

Profile of the company (ACBL)

Askari Bank Limited (the Bank) was incorporated in Pakistan on Oc
tober 9, 1991 as a public limited company and is listed on the Karac
hi, Lahore and Islamabad Stock Exchanges. The registered office o

f the Bank is situated at AWT Plaza, the Mall Rawalpindi. The Bank
obtained its business commencement certificate on February 26, 1
992 and started operations from April 1, 1992. Army Welfare Trust d
irectly and indirectly holds a significant portion of the Bank's share c
apital at the period end. The Bank
has 227 branches (December 31, 2009: 226 branches); 226 in Paki
stan and Azad Jammu and Kashmir, including 31 Islamic banking br
anches, 22 sub-branches and a Wholesale Bank Branch in the King
dom of Bahrain. The Bank is a scheduled commercial bank and is p
rincipally engaged in the business of banking as defined in the Ban
king Companies Ordinance, 1962.

Mission
To be the leading private sector bank in Pakistan with an internation
al presence, delivering quality service through innovative technolog
y and effective human resource management in a modern and prog
ressive organizational culture of meritocracy, maintaining high ethic
al and professional standards, while providing enhanced value to all
our stake-holders, and contributing to society.

Branches

Board of directors

Lt. Gen. Nadeem Taj

Lt. Gen (R) Imtiaz Hussain

Chairman
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 Executiv

e
Mr. M. A. Ghazali Marghoob

Company Secretary

Banks departmental functions

Finance department

Marketing department

Customer services department

IT department

Operations department

Finance Department
Finance is the major driving force behind an organization, whatever
the business is, it may miss out any other department which will ha
ve 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 doesnt kn
ows it expenses it wont know its surplus incomes as well. Good fin
ance 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 managin
g the internal dynamics of the organization to assist in accomplishm
ent of business objective, implementation of strategies and to enfor
ce a sound control environment of harmonizing profitability with gov
ernance goals.
It is one of the support departments of all the division of the bank. T
his 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 e

xternal entities.

Settlement of dues of the acquirer banks and other parties.

Scope of Activities of the department:

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 he
ad consumer finance and all the reports sent to the head office and
other authorities are under approval and authority of the group hea
d Consumer finance.
The finance department is of keen interest to the operations depart
ment. It further includes different departments, each having a very v
ital role to play.

Payables

Reconciliation

IP (Item processing)

Settlement

B.T.F
Balance transfer facility. Askari Bank offers a balance transfer facilit
y to all its members -an easy and convenient way to transfer and pa
y the existing balances of their accounts, issued by other banks in
Pakistan, through their Banks account.

Marketing Department
The marketing department handles the activities regarding the pro
motional activities that are held time to time and making agreement
s with different retailers for getting factory prices of their products in
order to make their products more attractive to the customers by cu
tting down prices on buying from their credit cards, like special disc
ount on purchase from credit card.

Customer Services
Customer service is a very self explanatory term. Customer service
s involve services like; after sale service and satisfying customer ne
eds in case they are facing any problems in the service.
They also handle the applications declined by verification departme
nt, by reviewing them and sending letters to re apply for clients if th
ey are legible.

Operations Department
Survival and success of any organization requires its operations to
be tightly monitored and performed well. Askari Bank believes in ha
ndling its operations in an efficient way. A department has been spe
cially designed to carry the operations held. The operations depart
ment has a hawks eye over all the departments working for the ban
k but certain departments are made a part of the operations depart
ment because of their well known importance. The departments un
der the Operations department are;

Embossing Department

Mailing Department

Recovery Department

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 accou
nt numbers, it is very easy to say but this department has its own si
gnificance.
Mailing Department;
Mailing department has a very vital role in the structure their basic t
asks 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 inclu
de; billing receipts, new applications, billing applications etc

Bills Mailing; The payment of and for the bank also follow the path whi
ch pass the mailing department
Besides the above mentioned tasks though they are pretty tedious t

hem self, the mailing department is also responsible for the inventor
y caretaking for the bank.
Collection Department;
These are the people who are always being CURSED by the cust
omers 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 giv
es 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 departm
ent 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 accou
nts through the system. This department also looks for any fraudule
nt 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 acti
vities 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.

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 wi
th Askari Bank, IT department has the most important role that is joi
ning the departments with each other, every department is linked wi
th the other department by means of networking of Computer and a
n 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 e
verything nowadays is done on computers and there are different s
oftwares for different business activities, the IT department keeps e
verything 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 betwe
en 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 p
rocess must not be considered just a formality. Knowing the custom
er should be the objective of the banker and customer due diligenc
e must be done prior to 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 reasonabl
e efforts must make to determine the true identity of the customer a
nd the sources & utilizations of funds. To have a uniform procedure
for customer due diligence, a Know Your Customer (KYC) Form (An
nexure III) has been introduced which is to be completed by the ac
count opening officer/ operations manager/ branch manager. Durin
g the course of meetings with the customer to complete the account
opening formalities, they should be asked about the type of the tran
sactions for which the bank account would be used and any inform
ation gathered must be recorded on the KYC Form. Any further info
rmation felt necessary and obtained during conversation with the cu
stomer should be recorded on the KYC Form and placed on record.

Informal session with the customer:

An informal session with the customer should be arra
nged 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, comme
nts column would contain all the required and necessary informatio
n.

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

For an organization:

Check all necessary documentation as mentioned in the manual has b

een obtained and all necessary formalities of account opening have be
en completed.

Obtain brief profile of the partners, directors etc. to ascertain their credi
bility.

Take adequate measures to obtain all relevant information i.e. indepen

dent verification of the partners, directors etc. and the organization.

Obtain a report from the customers other/ previous bankers

Clearly understand the pattern of transactions to be conducted by the o

rganization.

Make possible efforts to gather information relating to the customers s

ource of wealth to ensure that business is transacted only with custom
ers 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 the
ir due diligence.

Account Opening Form:

A senior officer should be designated by the branch manager t
o handle the account opening function. Prior to opening of the acco
unt, the account opening form and all the related documents must b
e scrutinized and approved by the branch manager personally. It m
ust be ensured that all columns of the account opening form are cor
rectly & properly filled and the customer has read & understood Rul
es & Regulations for conduct of accounts that are printed on the rev
erse of the account opening form. No column of the form should be
left blank and columns not applicable to a particular customer shoul
d 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 n

ame on the National Identity Card/Passport.

The type of account i.e. Current, PLS or Term must be clearly mention
ed.

The status of the account holder i.e. Resident or Non-Resident must b

e specifically marked.

The currency in which the account is to be opened must be specified.

Full name of the customer along with the fathers/ husbands name, NI
C number/ Passport number, place of birth, NTN, occupation & occupa
tional details including occupational address (the occupation must be cl
early and specifically defined, vague terms such as business, trading, s
ervice etc. are insufficient, the extract nature of the occupation or the pl
ace of employment must be ascertained and recorded) personal comm
unication details & details of Next of Kin, as applicable must be recorde
d.

Instructions for deductions of Zakat must also be noted on the AOF.

Any other instructions such as holding of mail etc. must also be mentio
ned on the AOF.

Terms of operation of the account whether singly, jointly, by either or su

rvivor or jointly by any of the authorized signatories of the account mus
t also be noted.

Introduction of an account
To ascertain the credibility of the customer, the account must be in
troduced by another account holder.
Preference should be given to introduction by an existing account h
older of the branch. Emphasis is being made for introduction by an

existing account holder because the existing account holders integr

ity has already been assessed by the branch at the time of opening
of the account of the introducer. Such introduction must be accepte
d.
In case where an existing account holder of the bank is introducing
the account, the account opening form must be sent to the concern
ed branch where the introducer is maintaining his account for verific
ation of the introduction and the account of the customer should be
opened only upon receipt of the verified Account Opening Form. Alt
ernatively, the signatures of the introducer can also be verified thro
ugh On-line Banking System.
Where the introducer is not an account holder of our bank, the intro
duction should only be accepted and account opened after having t
he signature of the introducer verified from the bank where the acco
unt is being maintained. The signature of the verifying authority mu
st be authenticated from the Authorized Signatures Book of the ban
k.
Introduction from employees may also be accepted but should be di
scouraged. In cases where a staff member introduces the account,
it should only be accepted when the employee personally knows th
e customers background/ activities.
Where the customer is bringing in substantial deposits and a custo
mer 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 es
tablish a new account relationship and the account must only be op
ened if the branch is satisfied with the antecedents of the customer.
Regulation:

State Bank of Pakistan Regulation M-1 of Prudential Regulations fo

r Corporate/ Commercial Banking relates to Account Opening and t
hus it has been made an integral part of the this Manual as Annexur
e 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 p
ermit for residing in Pakistan or an employee of a consulate of a Fo
reign 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 out
side Pakistan are designated as Non-Resident. All Pakistani Nation
als and persons domiciled in Pakistan except persons holding office
in the service of Pakistan who go out of Pakistan for any purpose vi
z., employment, study, business, pleasure etc. are treated as NonResident for so long as they remain outside Pakistan and all such a
ccounts are regarded as accounts of countries in which the account
holder is residing. Non-Resident accounts can be categorized as fol
lows:

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 sh

ort visits.
Where an account of a resident is held jointly with a Non-Resident, i
t 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. A
ny individual, firm, charitable institution, corporation, association etc,
and residents as well as non-residents can open and operate a cur
rent account.

2) Profit and Loss Sharing Account

It is an account in which profit is paid on the balance
s. Depending on the nature of the account the profit is calculated an
d credited to the account monthly, quarterly or bi-annually. Tempora
ry Running Finance Facility is not extended to PLS Accounts.

Profit Calculation and Payment

Depending on the nature of the a

ccount i.e. whether the profit is to be calculated on minimum monthl

y balance, average monthly balance or on daily product basis, the s
ame must be defined in the system. The indicative rates of profit ar
e to be fed into the system which would then automatically accrue t
he 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 calcula

tes the amount to be deducted as withholding tax currently 10% for

residents and 30% for non-residents on profit paid and credits the r
espective tax payable head for onward payment to the tax authoriti
es. The withholding tax so deducted must be deposited in the Govt
treasury within seven days of deduction. Withholding tax on profit s
hall 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 acco
unt holders would be required to furnish a Zakat Exemption Certific
ate on the prescribed format to be exempted from this compulsory
deduction. The exemption certificate must be executed and submitt
ed to the branch, one month prior to the month of Ramadan. Signat
ures of the customers must be verified on the Zakat Exemption For
m. A check has to be applied in the system in case of Zakat Exempt
ion failing which the system would automatically debit the same fro
m the account on the 1st day of Ramadan each year. The NISAB a
nd procedure for deposit of Zakat is circulated each year before the
1st day of Ramadan by the systems and operations department, He
ad Office.

3) Profit and Loss Sharing Term Deposit Receipt

PLS TDR is a time deposit for a fixed tenure in the sh
ape of a deposit receipt payable on demand. The rate of return appl

icable on PLS TDR is based on the indicative rates of profit declare

d by the systems and operations department, Head Office. Full acc
ount opening formalities including KYC procedure should be followe
d for issuance of PLS TDR. The customer however should be enco
uraged to open an account. As the PLS TDR is in the shape of a de
posit receipt, no cheque book is issued. In case of deposit through
cash, voucher would be prepared by the concerned officer and han
ded 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 a

pplied on the whole completed period in case of late enca
shment

The encashment could be made either in cash over the c

ounter or credited to an account in case an account is mai
ntained with the branch issuing the PLS TDR

Withholding tax at 10% for residents and 30% for non-resi

dents 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-numb

ered printed blocks of PLS TDR. The same being security stationer
y 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, m

ust 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 re
cord 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
Signed by two authorized signatories as per signing instructio
n
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 TDRs.

FOREIGN CURRENCY ACCOUNTS

Foreign Currency Accounts can be opened in US Dollars, Pound st
erling, Japanese Yen and Euro for both resident and non-resident.
The account opening procedure would be discussed and the followi
ng 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 Inte
rnational 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 al

ong 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 Sc

hedule of Charges in force.

Safe Custody & Deposit Facility

Safe Custody Facility

Bankers accept valuables from customers as they have adequate secu

rity arrangements.

Banker-Customer Relationship is based on the contract of bailment.

Banker
Bailee

Customer
Bailor

Bailment:
It is the delivery of goods by one person for some purpose u
pon a contract that the goods shall when the purpose is accomplish
ed shall be returned or otherwise disposed of according to the direc
tions 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 instru
ctions

Receipt of securities:
Sealed Boxes:
Bank accept sealed boxes of convenient sizes
While accepting a box banker should see that the box is seal wit
h the customers 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 se

aled packets said to contain a will

With the instructions to deliver the packet after his death to a na
med person
Before delivering the packet banker should satisfy himself that t
he 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/sig

ned by him

Part Delivery: Customer has to submit a delivery order along with re

ceipt

The bank will strike out the delivered articles from the receipt

Safe Custody Facility

Banker Customer Relationship

Banker Lesso
r

Customer Le
ssee

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 sa
me

2nd key is known as master key it is applied by the banker while openi
ng 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, me

ntal incapacity or in solvency of the licensee or one of the several joint l
icensees until legal requirements have been properly fulfilled

Never allow excess if served with an attachment order or other restrain

ing orders without first consulting the legal department

Customers 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

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 i
n 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 fo

rm

Recovery of charges are to be balanced on monthly basis and record o

f 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 t

he locker issue register

As rent of locker is received in advance the custodian of locker must ch

eck the record and diaries them for necessary compliance

In case rent is not deposited within 7 days from the date it becomes du
e the licensee be requested to deposit the rent, subsequent reminders

be sent on monthly basis and if after 4 reminders the rent is not receive
d a notice be sent through Registered A/D giving therein 30 days to de
posit the rent and in case of failure the locker will be broken open

VOUCHERS
Dr: Cash / Partys Account
Cr: Income Account Rent-Locker
Cr: Sundry Deposits-Key Deposits

Forced Opening of Locker

In the extreme event of forced opening due to termination of lease agre

ement 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 po
st
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 locker
s

The packet containing the removed articles and inventory is sealed in t

he 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 h
ave also not been paid, then the licensee be given a 30 days notice, aft
er Head Office approval, stating that articles in whole or part will be sol
d to appropriate the proceeds towards the recovery of dues

Surplus amount, if any, shall be remitted to the ex-licensee

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 fro
m the

locker

8) A certificate as per specimen is obtained from the licensee, whi

ch 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)

Telegraphic transfer

(intercity)

Pay order

(intercity)

Rupee travellers cheques

Online transfer of funds

(inter/intra city)
(inter/intra city)

Know Your Customer

The officer in charge of remittances department should check the follo

wing 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 r

emittances

Several accounts are not being debited to build up the aggregate amou
nt of remittances where nature of business does not justify

The account is not being used only for the purpose of effecting/receivin
g 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 li

ne with the business size/profession of beneficiary

All electronic/telegraphic transfers should bear the name/address of re

mitter

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 fun
ds are expected back through some different source/country

Large remittances to/from countries generally associated with the prod

uction/distribution & making of narcotics, illegal weapons & other unlaw
ful 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 r

emittances

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

Illiterate Persons

Insane Persons
Can be issued to:

Individuals

Joint Names

Business Concerns
Can be issued against:

To the debit of customers 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 regist

er

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

Entry in system

Intimation to drawee branch

Payment through suspense account should be authorized by the Mana

ger 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

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 sa

me 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 D
D is credited in his account otherwise refund is made through Pay
Slip.

The original DD is defaced & stapled with the Debit Voucher of Suspen
se account

On receipt of IBCA from the drawee branch entry of suspense account

is reversed

Issuing Branch

Drawee Br

anch

Receipt of application

Cancellation of DD
Dr: suspense a/c DD cancelled
Cr: partys a/c. cash

o Scrutiny of
Intimation
System
o Vouchering

Dr: Bills paya

ble a/c DD payable

Intimation to drawee branch

Cr: Mo a/c of Issuing Bra

nch

On receipt of IBCA
Dr: MO a/c of drawee branch
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 b
e crossed generally.
Cheque Crossed Account Payee
Sec 123 A:
Where a cheque crossed generally bears across its an addition of t
he words account payee between two parallel transverse lines co
nstituting the general crossing, the cheque besides being crossed g
enerally is said to be crossed.
Special crossing
Sec 124:
Where a cheque bears across its face an addition of the name of th

e banker either with or without words not negotiable that addition sh

all be deemed a special crossing and the cheque shall be deemed t
o be crossed specially and be crossed to the banker.
Development of crossing
A bank clearing clerk named Irvin originated the idea which finally le
d to the establishment of the London Clearing House at Lombard St
reet 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 clearin

g 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 Banks pay-in-slip

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 instrume
nt

Proper discharge on the reverse of instrument

Depositor account number on the reverse for ease of any subse

quent 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 bra
nch along with instruments

Consolidation bank wise summary is also prepared in duplicate one co

py 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) dra

wn in favour of a limited company.

If instrument is order (whether crossed or not deposited in payees acc

ount)

If instrument is order & crossed generally & being deposited in endorse

es account

If instrument is bearer & crossed either generally or crossed not negoti

able, drawn in favour of a limited company

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 customers Account as pa

yee

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 defin

ed in sub Article 2(b), in accordance with instruments received, i
n 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 commerci

al documents

i. Financial document means bill of exchange, promissory notes, che

ques or other similar instruments used for obtaining the payment of
money
ii. Commercial documents means invoices, transport documents, doc
uments of title or other similar documents or any other document w
hat so ever, not being financial document

Clean collection means collection of financial documents not acc

ompanied by commercial documents

Documentary collection means collection of:

i. Financial documents accompanied by commercial documents

ii. Commercial documents not accompanied by financial documents

BUSINESS OPERATIONS

Organizational chart

Marketing strategy
Most companies use the term marketing mix to describe the combin
ation of elements that they use to achieve goals for selling and pro
moting their products and services. When the company decides whi
ch elements it will use, it calls that particular marketing mix its mark
eting strategy.
The major marketing management decisions can be classified in on
e 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 m
arketing. They are the variables that marketing managers can cont
rol 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)

Earn Rs. 925/- per month on investment of every Rs. 100,000/- for one y
ear!"
Earn Rs. 1,000/- per month on investment of every Rs. 100,000/- for thre
e years!
Askari Mahana Bachat Account is a Term Deposit facility available t
o individual customer with the option of 1 and 3 Years tenure. It has
been designed keeping in view savings needs of individual investor
s who dont want to block their funds for longer terms, with a compe
titive rate of return paid monthly on the 1st of every month. A financi
ng 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
Profit payment

Monthly - 1st of every month

Profit rates

Competitive

Servicing

Available at all Askari bank branches

Financing limits

1+3 years

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 i
nvest for a regular return at a later stage while keeping their princip
al amount intact. With Askari Roshan Mustaqbil Deposit you can do
uble your investment in a time period of ten years. Invest in the for

m of monthly deposits for five years and get paid back the same am
ount for the next five years while receiving principal amount in full at
the end of the tenure.
Features:
P
r
o
d
u
c
t

Term Deposit

T
y
p
e
:

E
l
i
g
i
b
i
l
i
t
y
:

Individuals Only

in

t
R

s.

5,

/-

xi

m
5

:
u

s.

5
0,
0
0

0
/T
e
n
u
r

10 Years (5 + 5)

e
:

P
r
o
f
i
t
p
a
y

Monthly on co
mpletion of first 5
years

m
e
n
t
:

P
r
o
f

Competitive

i
t
R
a
t
e
s
:

S
e
r
v
i

Available at all A

skari Bank branc

hes

n
g
:

Upto 90% of the

principle amount

after completion

of first 5 years

n
c
i
n
g

L
i
m
i
t
s
:

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 acc
ount. This account is for individual investors whose purpose is long
term savings with high returns. With a tenure of 10 Years and a co
mpetitive rate of return on maturity this account is ideal for investors
who wish to start saving for their future today.
Features:
P
r
o
d
u
c
t
T
y

Term Deposit

p
e
:

E
l
i
g
i
b

Individuals Onl

l
i
t
y
:
B

Minimum Rs. 5

0,000/-

Maximum upto

Rs. 10,000,000

/-

c
e
r
e
q
u
i
r
e

m
e
n
t
s
:

T
e
n
u
r

10 Years

e
:

P
r
o
f
i
t
p
a
y
m
e
n
t
:

On maturity

P
r
o
f
i
t
R

Competitive

a
t
e
s
:

S
e
r
v
i

Available at all

Askari Bank br

anches

n
g
:

Upto 90% of th

e principle amo

unt

n
c
i
n
g
L
i
m
i
t
s
:

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 financia
l 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 irrespecti
ve 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
11. Our un-matched service quality

ASKCARD
Askari Bank is committed to provide innovative and competitive sol
utions to banking needs in a more efficient and personalized manne
r. 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 secur
ity, so that one can have retail transactions with complete peace of
mind. Askari Debit Card is new shopping companion which enhanc
es 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 deprivatio
n 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

Free from carrying cash or cheque books

Free Funds Transfer Facility

Free Utility Bills Payments through ATMs

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 instrum
ents provide greater financial freedom and security in an unmatche
d 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.
"Youre 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*
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:
Resid
Borro
wer:

ent Pa
kistani
Nation
als

Facilit

Perso

y:

nal Lin
e of C

redit.
Maxim
um up
to Rs.
500,0
00/-(C
Finan

lean)

cing L

Maxim

imits:

um up
to Rs.
1 Milli
on (Se
cured)
One y

Tenor:

ear (re
newab
le).
Month
ly debt

Repa
yment:

servici
ng on
the ou
tstandi
ng bal
ance.

Marku
p Rat
es:

Comp
etitive.

Servic

Availa

ing:

ble at

all Ask
ari Ba
nk Bra
nches
Balan
ce Tra
nsfer
Facilit

Av
ailable.

y:
Eligibility to Apply:
Age:

Bet
wee
n 21
to 6
5 Ye

Income:

ars.
Mini
mu
m gr
oss
mon
thly i
nco
me
Rs.
25,0
00/-

Employ

only.
a) S

ment:

alari
ed:
Mini

mu
m le
ngth
of c
onfir
med
servi
ce w
ith p
rese
nt e
mpl
oyer
is si
xm
onth
s wit
hat
otal l
engt
h of
one
year
servi
ce.
b) S
elf E
mpl
oye
d: M
inim

um
1 ye
ar in
busi
ness.
(Ag
ainst
secu
Charge

rity).
As p

s/Fees:

er c
urre
nt sc
hed
ule
of c
harg
es.

Personal Finance
One of the quickest approval processes around
One can avail unlimited opportunities through Askari Banks Person
al Finance. With unmatched financing features in terms of loan amo
unt, payback period and most affordable monthly installments, Aska
ri Banks Personal Finance makes sure that you get the most out of
your loan. No matter what your need is, Askari Bank has more way
s to serve you than ever before.
Product Featuring:
Borro

Resid

wer:

ent P

akista
ni Nat
ionals.

Facilit
y:

Term
Finan
ce
Maxi
mum

Finan

upto

cing L

Rs. 5

imits:

00,00
0/. (Cl
ean)
Maxi
mum
upto
Rs. 1
Millio
n. (Se
cure
d)
Maxi
mum

Tenor:

upto
5 Yea
rs
Mont

Repay

hly In

ment:

stallm

Marku

ents
Comp

p Rat

etitive

es:
Availa
ble at
Servic
ing:

all As
kari B
ank b
ranch
es

Balan
ce Tra
nsfer
Facilit

Availa
ble

y:

Eligibility to Apply:

Between 21 t

o 65 years.

e
:
I

Minimum gro

ss monthly in

come of Rs. 1

0,000/- only.

m
e
:
F

Maximum upt

o Rs. 500,000

/. (Clean)

a
n

c
i
n
g
L
i
m
i
t
s
:

ASKARI MORTGAGE FINANCE

Product specification:
Ever since the inception of life, shelter has been rated among the pr
imary 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 yo
u plan to build a house, tailor made to your requirements or buy a c
onstructed house, Askari mortgage finance enables you to pursue y
our goal without any problems. Mortgage is a premium home financ
ing 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, w
hich makes it grow... and grow. Now you can stop worrying about y
our daily cash requirements, and start enjoying our unique Askari B
usiness Finance facility.
Product Featuring:

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2) Price

Market value, or agreed exchange value, that will purchase a defini

te 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

Promotion is one of the four elements of marketing mix (product, pri

ce, promotion, distribution). It is the communication link between s
ellers and buyers for the purpose of influencing, informing, or persu
ading 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, ne
wspapers, Internet, Mobile Phones, and, historically, illustrated songs) i
n which the advertiser pays an advertising agency to place the ad

Below the line promotion: All other promotion. Much of this is intende
d to be subtle enough for the consumer to be unaware that promotion i
s taking place. E.g. sponsorship, product placement, endorsements, sa
les promotion, merchandising, direct mail, personal selling, public relati
ons, trade shows
Askari bank does its promotion through following ways:

Brochures

Banners

Billboards

Ad in the newspaper

Direct marketing

Public relations

4) Place
Last marketing tool is placement, which includes the various activiti
es a bank undertakes to make product and services easily accessib
le or available to customers. ACBL has opened almost all its branch
es at Commercial areas or near to commercial areas so that the cu
stomers 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 As

kari bank, it need to constantly remind itself that the margins are sh
rinking. The number of financial players in the market has gone up
several times since the early 90s. Not only the number of players h
as increased many folds but they are also much better equipped wit
h much stronger capital bases, reach and competent managements.

Analysis
I m conducting the competitive analysis between ACBL and Bank Al
falah with respect to the working of their HR department, Before co
nducting 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 li

sted on the Karachi, Lahore and Islamabad Stock Exchanges.

Human Resource department:

ACBL is an organization that provides opportunities for its staff to h
ave a challenging and rewarding long-term career. To this end the
Human Resource Group (HRG) encourages and motivates its empl
oyees to excel in the responsibility that they have in the organizatio
n .It believes that creativity and innovation comes from talent, knowl
edge and experience and it is ACBLs endeavor to provide and mai
ntain 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 overal
l structure of the organization, which includes rationalization, cutting
down the decision layers, improvement in staff training and hiring pr
ofessionals and MBAs at entry-level management.
The overall direction of HRG has been towards nurturing the streng
ths of the human capital to its maximum with a defining principal to
help create a progressive environment and sustain a thorough com
mitment 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:

Internal job announcement i
s divided into four sections. The whole procedure of recruitment pa
ssed through these sections, from announcement to recruitment. T
hese sections are:

Segment

HRD (human resource division)

Staff

Candidates Supervisor

Steps of recruitment process:

Following are the steps of whole recr
uitment 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 broadcas
ted through e-mail.
Step3:
Staff reads the internal job announcement, fills in applicatio
n and submits it to HR before the mentioned cut-off date.
Step4:
Recruitment reviews and shortlist the applications, the entri
es are forwarded to the segment for selection by HRD.

Step5:
HR conducted initial interviews of interested employees, fill
ed IAF and sent it to the relevant segment.

Step6:
Segment receives the application from recruitment and call
s the candidates for interview.
Step7:
Interview assessment form/ Comments of segment are fill
ed 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 inf
ormation to HR Operations for the issuance of internal transfer lette
r to the candidate. In reply to the e-mail HR Operations issues a tra
nsfer order to the candidate.
Step9:
HR files interview Assessment form into the employees pers
onal file. Master Database is updated.
Step10:
Candidates Supervisor receives the mail from HR with app
ropriate 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 divi
ded into two sections. The whole procedure of recruitment passed t
hrough these sections. These sections are:

Segment

HRD (human resource division)

Steps of recruitment process:

Following are the steps of whole recr
uitment process through talent pool:

Step1:
If an appropriate resource is not selected from within the b
ank, HR revisits the ERF (Employees Requisition Form) and searc
hes 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 th
e candidate for interview.

Step4:
The Segment completes the IAF with detailed comments (R
ecommended package, positive traits etc).
Clearly indicating if the candidate is RECOMMENDED or DECLINE
D sent to HR with all delegated approvals.

Step5:
Interview Assessment Form is received by HR.

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 I
AF 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.

CVS are uploaded into website (www.askaribank.com or HR online) b

y segments or interested candidates.

CVS received through walk-in, post & or e-mail will also be uploaded o
n the Talent Pool after through screening by HR.

HR will utilize the database to get resource information as and when re

quired.

3: Job advertisement:
Hiring through job advertisement is divid

ed into two sections. The whole procedure of recruitment passed th

rough these sections. These sections are:

HRD (human resource division)

Marketing

Steps of recruitment process:

Following are the steps of whole recr
uitment process through job advertisement:

Step 1:
If an appropriate resource is not selected from within the b
ank Internal Broadcast & HR Talent Pool, HR will then proceed with
the advertisement channel.

Step 2:
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 s

ample proof of the desired advertisement.

Step 4:
Marketing will receive the sample proof of the advertiseme
nt from the agency, proof read it and will forward it to HR for approv
al.

Step 5:
HR receives the sample proof from Marketing, coordinates
with the segment. If OK HR gets final approved sample proof to Ma
rketing.

Step 6:
Marketing receives the approved sample proof from HR an
d coordinate with the agency to place the advertisement in the local
newspaper.

Introduction:

(Bank Alfalah)

Bank Alfalah was established in July 1997. Its H.O i

s in Karachi and bank has 49 branches allover Pakistan.

Services:
Bank is offering different types of services for all its valu
ed customers. These services are: ATM, online banking, home loan,
car financing etc.

Human Resource department:

Bank has a HR dept who perf
orm different sort of functions. The dept advertises in newspaper for
the jobs then recruitment and selection process occurs. Training an
d 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 & can
didates apply for the jobs, after test, interview and other formalities t
he selected candidates are given 6 months training. Every year the
bank offers 30 vacancies for the post of MTOS.
The MTO program is a highly competitive & sought after induction s
cheme, in which short-listed applicants appear in a written test follo
wed by a panel interview. Successful candidates then receive comp
rehensive 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 location
s in Pakistan. Preferred educational background for entry into the M

TO scheme includes an MBA degree, MA economics or M.com fro

m reputable Pakistani or foreign institution with GPA of 3 plus or eq
uivalent. Strong personal character, as well as communication and i
nterpersonal skills are essential pre requisites to succeed as MTO.

Training & development:

Its management believes in developi
ng the potential of the banks employees to the fullest extent. T&D c
enter of the bank is housed in custom built, state of the art facility o
n the 4th floor of the H.O building at Karachi. The center is responsi
ble 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

Time management

Personal effectiveness
It is obligatory for each staff member of the bank to attend at least o
ne training program. Wherever the training department is unable to

provide focused training for certain groups of staff, reputable extern

al training providers are invited to fill the gap.
The candidates are given 6 month training in which theoretical lectu
res are given along with different case studies, situations & present
ations techniques. Groups are made to enhance coordination and t
eam building candidates with different skills and abilities are apprec
iated for their creativity. During the job formal & informal meetings a
re conducted where all employees are free to speak and they can g
ive different ideas and plans. Employees are encouraged for contin
uous learning and bank even send its employees for special trainin
g courses to abroad.
Main training pressure paid of Bank Alfalah is also same to that of A
CBL, 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 subordin
ates to his boss in which they evaluate his employees from different
dimensions and if audit report of any branch show negative impact t
han all types of increments are stopped of all employees of that bra
nch.

Analysis
Analyzing the training and development practice of ACBL and comp

aring it with T & D of Bank Alfalah it is concluded that currently ACB

L is effectively meeting its targets, but to encounter with future dem
ands, ACBL needs to overcome some short comings in order to mai
ntain and gain competitive edge.

Business process analysis

In FY09, for the first nine months banks were reluctant to lend to c
orporate and individuals owing to skyrocketing bad loans amid lac
k of demand from industries who were avoiding high financial cha
rges. But, with some sign of economic recovery, lately, with inflatio
n tapering off amid marginal growth in large-scale manufacturing
sector, the demand for corporate credit gradually rose. However, a
ttractive rates offered by government bonds still remain lucrative
enough - wooing banks to put depositors money in low risk paper
s 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 i
n FY09, which is 187% increase from the previous year of FY08. Th
e bank has been able to accomplish this through various ways. Its
year-on-year mark-up interest income increased by 23%, mountin
g to Rs 22bn in FY09. Following this, we observed that there was a
huge increase in particulars of provision for impairment in value o
f 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 t

he charges for the year that were charged on the investments mad
e by the bank. Second was the increase in the gain on sale of inves
tments, 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

6,6

82
Such high increase in sale of investments, have yielded in high pro
fits for the bank for FY09.
The scenario of the NPLs does not seem very favorable for the ban
k. 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 c
onsiderable credit risk from its loan defaulters. In FY06, bank s adv
ances witnessed marginal increases in consumer finances, especia
lly 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 a
way from loans towards investments. This has also been the trend
industry wide to meet the MCR requirements as directed by the St
ate Bank of Pakistan. Though these investments offer lower return
s 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 fi
nancial institutions as it only increased by 3%, similarly the advanc
es too are seen as controlled lending as these also increased by a
mere 5%. The reasons tend to be the same as it were in the previo
us year. Low advances because of high NPLs raising from consume
r banking and also from certain sectors of the economy especially
the textile sector. However, on the flip side, we see a dramatic incr
ease of 88% of investments, which amounted to Rs 135bn. The inv
estments category is further broken down to see where investmen
ts are done.
The liquidity of the bank has maintained a consistent upward tren
d, with its yield on earning assets always above the cost of funding
them. It s imperative to note that cost and yield on funding earnin
g assets run parallel which means that banks are not compromisin
g on their spreads in the years of performance regardless of dyna
mic economic conditions. This liquidity consistency in the years un
til FY06 may be attributed to the excess liquidity that prevailed in t
he industry due to high reserve growth of the banking sector.
The State Bank of Pakistan intervened in this situation by contracti
ng the monetary policy. Also, post-emergency declaration when th
e rupee fell, the SBP intervened twice to ease the liquidity conditio
ns in the market. The SBP has prudently managed the liquidity whi
le the bank also has certain arrangements to maintain its liquidity.
It has most of its investments in treasury bills. The liquidity positio

n may be predicted to remain similar to the above in the coming y

ears. However, at the same time Askari needs to safeguard its liqui
dity against the increasing NPLs.
Askari Bank was able to maintain its liquidity condition with keepin
g 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 th
e bank did not increase its advances to consumers due to high NP
Ls to advances in the previous year.
The bank s spread was sustained at 4% as it only decreased margi
nally by 1%. This was because the industry average remains to be
at 5-6% for FY09. This again helps us to understand the positivity o
f the bank in such recessionary condition that they are not compro
mising on their spread and maintaining at 4%.
The solvency of the company has been successfully maintained ov
er 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 decr
ease in the banking spread of the banking sector. This healthy tren
d in solvency may be predicted to continue in the future. The great
er than earning assets deposits are the result of excess reserve m
oney growth while the increase in the non-performing advances h
as undermined the advances performance. With the gradual shift t
o investments, we may expect the adverse impact of the NPLs to r
educe, 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 th
is the earning assets to deposits remained 100%. This shows the a
sset based is well utilized by the bank and with the new trend to s
hift towards low risk investment of government securities. As obse
rved more of the deposits are concerned with long-term deposits.
Asset quality has been improving since 2008. We saw a decrease i
n provisioning to NPLs in FY09, as it decreased by 7% from FY08.
With the new regulation by the SBP of keeping Forced Sale Value t
o 40%, the upcoming provisioning would be lower than the previo
us ones. The asset quality was also maintained as low advances w
ere given to consumer as well as other corporate sectors; therefor
e the NPLs to advances also stood still at 9% in FY09, whereas the
NPLs were still the same for the period but not increasing as can b
e seen through previous years.
The market value of the bank has shown an upward trend through
out. The bank has been a consistent distributor of the dividends. T
he increased profitability of the banking sector (an increase of aro
und 100%) has made this sector one of the most lucrative ones to i
nvest. 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 F
Y06, the high share-price of the bank is accountable for this trend.
Market value to book vale are not reliable measures of performan
ce 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 showi
ng a late year push towards the recovery of the economy. As the i
nvestors gained confidence in the company, the results were show
n as the EPS surged from Rs 0.95 to Rs 2.18 in FY09. However the d
ividend payout remains very low, as low as 0.07%.
The bank has maintained its reputation as one of the consistent pa
yers of dividends. This year the bank did not give any cash dividen
ds rather it gave stock dividend, this would help bank in two ways,
first, by maintaining liquidity and second by making up for the MC
R requirements.
The bank was able to maintain a healthy 11.5% contrast to mini
mum requirement of 10%.
The required minimum capital requirement can be achieved by th
e 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 is
suance of bonus shares. The bank intends to meet this requireme
nt 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 i
ncrease 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 governm
ent securities as the government borrowing.
With uncertainty still hovering in the economy and the inflation till F
eb 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 expec
ted 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 m
onetary policy which is said to be designed in a way to boost the ec
onomy.
Askari Bank in particular remains strong in terms of their balance sh
eet as their asset base is strong and their liabilities are more of long
term. Along with this the current year performance is considered ext
raordinary. 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 i
ndicating 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 stre
ngths over the period of time an effort of enlisting its strengths can
be done as follow;

The past decade has been the biggest strength because that was the ti
me when there was not much of the competition and it gave time for th
e 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 cus
tomers.

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 fu
nds 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 Tr
ust.

The productivity of the bank is very good. Bank is providing a high qual
ity service to its customers.

ACBL have strength that most of the imports & exports which are done
are handled by ACBL.

Weaknesses

A certain education level should be set for a particular task, it adds up t

o 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 burde

ned

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 facilit
ies 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 produ

cts and services to their customers, reorganization of existing systems
as well as Infrastructure with de-centralized work processes. The hum
an resource factor plays a critical role maintaining the efficiency and pr
ofitability level of the bank in future.

Institutionalization of HRM (best person should be posted for best assi

gnment), 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 give
s the company an opportunity to introduce new products and services.

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 pr

oducts and marketing aggressively. It may cause its customers to shif
t to competitors.

Some other banks have competent taskforce, which is also a threat f

or ACBL, because human resource is the most valuable resource.

Pakistan India relations often create a war danger. This chance of wa

r may cause army officer and their families to increase the frequency
of withdrawals, which would decrease deposits.

LEARNING
One of the most important aims of students life is to express
himself correctly and adequately, with this belief in mind, I decided t

o go to Askari bank to complete my internship program.

Determined, confident and persistent in the pursuit of knowle
dge 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 through

out the internship. Duties that I performed during my 6 weeks of int

ernship are related to different departments. I performed my duties i
n departments like:

Accounts department

Account opening

Credits

Remittances

Foreign & international trade

I also perform my duty of operating photocopy machine and fax ma
chine.

Accomplishments
I worked in different departments, but the knowledge I gaine

d from accounts department is very valuable. I really liked working i

n that department. Working in this department was quiet tough as c

ompared to other departments but the knowledge I gained from that

department was very helpful to me.
The internship program is very beneficial. It provides me good oppo
rtunity to learn new things. Moreover it teaches me to know that wor
ld of study and world of work are completely different. Unlike studyi
ng, working life is not smooth. Often, I faced many problems during
working. I found that there are two valued things that help me to sol
ve problems are braveness and patience. Brave to face and be pa
tient to solve them.

New Knowledge Acquired

All the knowledge I acquired from my internship is new to m

e, because I had never done internship before. Directly communicat

ing 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 commu
nication skills with different persons in well manner.
During working at Askari, I had a chance to use every of English ski
ll.
First is writing. I was assigned to write many kinds of letter such a
s official letter of invitation, letter of sympathy and letter of informing.
This not only made me improve my writing skill, but I also learned h
ow

to

write

proposals

in

the

real

situation.

Second is reading. All the documents are in English so it is necess

ary that reading and understanding skills should be good.
Reading English documents everyday helped me have a better rea
ding skill. I can read faster and can find out main point easier.

Third is listening and speaking. Since I worked with foreign exch

ange & international trade manager for 1 week, she speaks with me
in English most of the times. Throughout the week in foreign excha
nge & international trade department, I had to communicate with su
pervisor and colleagues in English. Of course, my listening skill is i
mproved and had more confidence in speaking English.

Problems Encountered
Internship was a good experience for me, but there are s

ome 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 b
efore; 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, i
t 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 ki
nd of problem taught me to learn new vocabularies and idioms use
d

in

business

world.

For

me

it

is

very

beneficial.

Besides writing official letter, I had some difficulties in translating do

cuments. I was assigned to translate the documents both from Engl
ish into Urdu and Urdu into English. This was my first time to transla
te official documents. For translating English into Urdu, my heavy-h
earted thing was that there are several technical terms that I have n
ever seen before. Moreover any dictionaries couldnt help me. The

best way to solve this problem was dont hold on form but had to i
nterpret and translate them from the context. For translating Urdu in
to English, I was assigned from Credit officer to translate advertise
ment and credit manuals. I havent been accustomed to using credit
language, so it was quite difficult for me. I coped with this by learnin
g advertising language and idiom used in Internet, magazine and n
ewspaper in order to be guideline in using credit language appropri
ately and accurately.

How Experience Impacts your Career

Upon the start of my internship at Askari bank I did n

ot have a lot of experience in public relations. In some capacity I kn

ew that I would be working towards improving the image of custom
ers and my supervisors, which in this office ranges from high tech st
artups, to publicly traded companies, to profit and non-profit organiz
ations. However, I was unsure of what exactly an intern in the servi
ces industry would be responsible for on a daily basis.
After six weeks of my internship i can honestly say that I have learn
ed a great deal about the industry itself and I now have a more con
crete understanding of what the job description is for one who work
s in public relations.
Among the many things that I have learned almost in the last two m
onths, the most important for me are the general knowledge that I n
ow 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 stron
g foundation for what might likely be the start of a career in public r

elations. I now have confidence in myself that I can work successful

ly in a services firm and be a strong asset to a hardworking team. H
owever, 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 an
d 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 attractiv
eness 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

Recommendations
Besides taking care of the above mentioned problems there are so
me 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 tim
e 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 th
e electronic advertisement areas
3. There is a need for expansion of the working area especially in t
he finance department as the work load is increasing and new r
ecruitments are compulsory
4. Politics should be discouraged in such an environment
5. The employees should be given more incentives and rewards fo
r their good performances
6. There should always be innovation in any business to flourish a
nd there is a lot more to explore in the banking sector and its al
ways first come first served.

Conclusion

Banking is one of the most sensitive businesses all over the world as b
anks 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 year
s 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 s
uccess 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 o
vercome its weaknesses and should avail the opportunities available in
the industry, because competition is very intense particularly in the ban
king 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 In
stitute of Information Technology (CIIT) are certainly no mugs at what t
hey do. I truly hope that this report also certifies the fact that all of my
worthy teachers performed their duties of academic guidance and mor
al mentoring with utmost efficiency and effectiveness.

Bibliography

www.askaribank.com.pk

www.wikipedia.com

www.google.com

www.answers.com

www.sbp.org.pk

Askari bank general banking mannual