INTERNSHIP REPORT

Askari Bank Limited

An internship report submitted in partial satisfaction

Of the requirements for the degree of
B.Com (hons.)
In
Banking & Finance
by
Hira Hanif
5049

University of Central Punjab

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 ACKNOWLEDGMENT

All the praise for ALMIGHTYALLAH, the

creator of this universe who guides us to
overcome the difficulties in crucial situation
and all respects are for HIS HOLY PROPHET
MOHAMMED (P.B.U.H), who enables us to
recognize our creator and understand the
philosophy of life.

Beyond of all the material available, I am very

thankful to Ali Waseem (Operations
Manager Main Market Branch) who give me
appropriate knowledge about ‘‘ASKARI BANK’’.
And through his motivational behavior I was
able to complete our internship. And I am
thankful to the employees of Askari Bank
Limited, during the study period and
preparation of this report.

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Secondly I acknowledge the inspiring guidance,
encouraging attitude, valuable comments and
technical guidance, received from my
respective teachers of University of Central
Punjab.

PREFACE

In the name of Allah who Is most merciful and

beneficial.

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Allah give us many abilities with these I would
be able to do this report. This is the internship
report of Askari Bank Ltd.
In it the detail is given of the work I have been
done at Bank.

DEDICIATION
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 I dedicated this assignment to my Parents and
Teachers who have always been a source of
inspiration to me and to Mr. Ali Waseem
(Operations Manager of Askari Bank) who gave
me great knowledge about banking sector.

Table of Contents

Executive Summary 6
Introduction 7-8
Organization Profile 8-10

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History of Askari Bank Ltd 11
Aims and Objective in this Organization 11-12
Departments of Bank 12-13
Account Opening Department 13-15
Cash Department 16
Clearing Department 16-17
Remittances Department 17-18
Accounts Department 18
Credit Department 19
Objective and purpose of Internship 19-20
Identification of Main Problems 20
Conclusion/ Recommendation 20-21
References 22

Executive Summary

SBP has priscribed the Askari Bank Ltd. For me. I had completed my

internship in the Askari Bank Main Market Gulberg Branch. I worked at various

department of the bank. Such as In acount opening department, accounts department,

cash department and did some work at clearing and remitances department. The working

enviroment at Bank was veary good. The staff was very coopreative and friendly. I had

learn a lot form the bank and observe the marketing system of this bank i.e. How it works

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and to what extent it is successful. I spent most of my time during internship in account

opening department, where I interact with people and know how to deal with customer.

And also about the working and procedure of the account opening. I also stamped all the

documents of account opening form; I dispatched the account opening form in a file.

Through this internship I learn about the marketing system of this bank i.e. how it works

and to what extent it is successful. With this internship I enhance my intellectual skills. I

deal with customer and help those customers, who are confused, help them in such a way

by filling credit or debit slips. In cash department I sort out the cash and count the cash.

In accounts department I had filling different reports. I also check the daily activity such

as online, customer and GL. In clearing department I clear the cheques, I stamped the

cheques. Maintaining good relationship with the customer has polished my interpersonal

skills and resolving customer’s Problems give them a feeling that the company

employees care for them. I used to maintain the record of each cheques book and ATM

issued both on the registered. I also used to place the document on their proper file.

Introduction

ASKARI BANK is the leading private sector bank in Pakistan, delivering quality
service through innovative technology.

In the success story of ASKARI BANK, one of the most important factors, apart
from its dynamic management and prudent approach, is the QUALITY of its SERVICES,
which gives it a great edge over its competitors. ASKARI BANK has always strived to
facilitate its customers by introducing various high quality hi-tech services for the first
time in Pakistan.

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 We are proud of our pioneering role in providing the most modern and
technologically advanced services to our customers. Knowing our customers and their
needs is the key to our business success. Our products and services are as diverse as our
market segments. Technology has played a pivotal role in meeting customer
expectations, particularly with respect to the speed and quality of services.

We have fully automated transaction-processing systems for back-office

support. Our branch network is connected on-line real-time and our customers have
access to off-site as well as on-site ATMs, all over Pakistan. This includes not just
establishing and maintaining technology infrastructure for providing operational support
to all units of the Bank, but also encompasses introducing latest state-of-the-art
technology-driven products and service delivery systems, such as ATM networking,
Internet Banking, Mobile ATM, Credit Cards, Debit Card, Prepaid Card, utility bills
payment through ATMs & Internet which have brought about cost-effectiveness,
timesaving and safety.

Askari bank has also achieved another milestone with the launch of Askari Bank
Zari Credit Card. This is the first ever credit card offered to the farmers in Pakistan with
complete product features and service benefits. It aims to meet farmer’s production and
development needs and to supplement cash flows, whenever required.

It is also a matter of satisfaction that ASKARI BANK has been the first bank to
introduce PTCL and WAPDA utility bills payment electronically through ATM and
Internet on an Online-Real-Time Basis. For the first time in Pakistan, we have
introduced Mobile ATMs to provide banking facilities at the doorsteps of our customers.
Askari bank’s mobile ATMs first in the banking history of Pakistan, now four in number,
continue to serve customer needs.

Our Phone Banking and Internet Banking Facility allows our customers, to
access their accounts from anywhere in the world, and effect transactions.

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 Bank has established its Data Warehouse and Customer Care Centre, a
dedicated customer call center to provide one window service to our valued customers in
terms of their telephonic enquires.

Askari bank remains focused on using technology for improving customer service
standards and expanding the range of products being offered and other technology based
solutions

Organization Profile

The Vision
To be the Bank of first Choice in the Region

Mission

To be the leading private sector bank in Pakistan with an international presence,

delivering quality service through innovative technology and effective human resource
management in a modern and progressive organizational culture of meritocracy,
maintaining high ethical and professional standards, while providing enhanced value to
all our stake-holders, and contributing to society.

Core Values
The intrinsic values, which are the corner-stones of our corporate behavior are
Commitment, Integrity, Fairness, Teamwork and Service.

Corporate Philosophy
From knowing our customers requirements to understanding employee needs,
from utilizing modern technology to making responsible social contributions, from

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enhancing stake-holders value to practicing corporate ethics. We are continuously and
consistently striving to address newer challenges with a single motivation:

“the power to inspire and be inspired”

Askari Bank’s Products

Over the years, Askari Bank has proven its strength as a leading banking
sector entity with ever-increasing commitment to its clients, through a strategic
investment in electronic technology. Askari Bank achieved the following firsts in
Pakistani banking:

i) The first Pakistani bank to offer on-line real-time banking on a country-wide basis
ii) The first Pakistani bank with nation-wide network of ATMs
iii) The first bank in Pakistan, foreign or local, to introduce Internet banking in the
country
iv) The first bank in Pakistan, together with ABN-Amro, to develop an inter-bank switch
for the ATMs
v) The first bank in Pakistan to launch Mobile ATM

Askari Bank offers the following retail products to serve the needs of the consumer
market:

• Askari Bank’s Value Plus – Rupee Deposit Account

• Askari Bank’s Personal Finance – Loans Scheme
• ASKAR – Auto Loans
• Askari i-Net Banking – Internet Banking solutions
• Askari MasterCard – Credit Card facility
• Askari Travellers Cheques – Rupee Travellers Cheques
• ASKCARD –Debit Card
• Askari Bank’s Mortgage Finance – Home Loans
• Askari Bank’s Business Finance – Business Loans
• Smart Cash – Running Finance Facility for Consumers
• Askari Kissan – Agri Finance Programmer

“The Best Retail Banking Award 2008” by Pakistan Guarantee Export Corporation Ltd.

Entity Ratings

Askari Bank has the following Entity Ratings from the Pakistan Credit Rating
Agency Limited (PACRA):

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Short Term A1+

Long Term AA

Definitions by PACRA:

A1+:

Obligations supported by the highest capacity for timely repayment.

AA:

'AA' ratings denote a very low expectation of credit risk. They indicate very
strong capacity for timely payment of financial commitments. This capacity is not
significantly vulnerable to foreseeable events.

A plus (+) appended to a rating denotes relative status within major rating categories.

Ugh support for local arts, education and sports.

History of Askari Bank Ltd

Askari Bank Ltd (formerly Askari Commercial Bank) was incorporated in

Pakistan on October 9, 1991, as a Public Limited Company. It started its operations
during April 1, 1992. The bank principally deals with mainly banking, as defined in the
Banking Companies Ordinance, 1962. The Bank is listed on the Karachi, Lahore &

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Islamabad Stock Exchanges and its shares are currently the highest quoted from among
the new private sector banks in Pakistan.

Askari Bank has expanded into a nation wide presence of 136 branches, and an
offshore banking Unit in Bahrain. A shared network of over 1,100 online ATMs covering
all major cities in Pakistan supports the delivery channels for customer service. As on
December 31, 2005, the bank had equity of PKR 8.6 billion and total assets of PKR 145.1
billion, with over 600,000 banking customers, serviced by our 2,754 employees.

Aims and Objective in this Organization

Following are the main objectives of Askari Bank Limited are: -

1. To be the leading private sector bank in Pakistan with an international presence,

delivering quality service through innovative technology and effective human
resource management in a modern and progressive organizational culture of
meritocracy, maintaining high ethical and professional standards, while providing
enhanced value to all our stake-holders, and contributing to society.

2. To achieve sustained growth and profitability in all areas of business.

3. To build and sustain a high performance culture, with a continuous improvement
focus.
4. To develop a customer-service oriented culture with special emphasis on customer
care and convenience.
5. To build an enabling environment, where employees are motivated to contribute
to their full potential.
6. To effectively manage and mitigate all kinds of risks inherent in the banking
business.

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 7. To maximize use of technology to ensure cost-effective operations, efficient
management information system, enhanced delivery capability and high service
standards.
8. To manage the Bank's portfolio of businesses to achieve strong and sustainable
shareholder returns and to continuously build shareholder value.
9. To deliver timely solutions that best meets the customers’ financial needs.
10. To explore new avenues for growth and profitability.

Departments of Bank

My learning in different department of bank. One of my job was to

deal with the customers in almost every department. Different customers ask for different
things. Like in the Account opening department, they ask about the procedure, charges,
balance inquiry etc. In the clearing department they ask about the bonus back of cheques
and related things. Some customer also got confused where to start, I had also guided
them. The names of department are as follow:

• Account Opening Department

• Cash Department
• Clearing Department
• Remittances Department
• Accounts Department
• Credit Department

Account Opening Department

In Acccount opening department I had learn a lot.

Maintaining good relationship with the customer has polished my interpersonal skills and

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resolving customer’s Problems give them a feeling that the company employees care for
them. There are several types of accounts such as:

1. Idivdual/ Joint Account

2. Sole Propreitorship/ Partnership/ Joint Stock
3. BBA(Basic Banking Account)

1. Idivdual/ Joint Account

In it they may open the following accounts
• Current
• Saving
• ASDA
Document required for opening the account are
 Original ID
 Letter Head (in case of businessman)
 In case of illetreate person photograoh of the person.

2. Sole Propreitorship/ Partnership/ Joint Stock

In it they may open the following accounts
• Current
• Saving
• ASDA
Document required for opening the account are

For Sole Propreitorship

 Copy of NIC (see original NIC)
 Letter Head of business
 NTN

For Partnership

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  Copy of NIC (see original NIC)
 Attested copy of “Partnership Deed” duly signed by all partners of
the firm.
 Attested copy of Registration Certificate with Registrar of Firms.
In case the partnership is unregistered, this fact should be clearly
mentioned on the Account Opening form.
 Authority letter, in original, in favor of the person authorized to
operate on the account of the firm.
 Copy of registration certificate( if registered)
 Company Letter Head
 Two references

For Joint Stock

Certified copies of:

 Resolution of Board of Directors for opening of account specifying
the person(s) authorized to operate the company account.
 Memorandum and Article of Association
 Certificate of Incorporation.
 Certificate of Commencement of Business.
 Copy of NIC (see original NIC)

3. BBA(Basic Banking Account)

This account is open by salary persons and also for
students. For opening the account folloing documents are required:
 Copy of NIC (see original NIC)

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  Salary Letter or bonafide letter for students
 Initial deposit Rs.1000

Futher Instructions For Opreating Account:

1. The customer will get the cheque book when he/she will receive the letter of
thanks from Bank.
2. For ATM facility the coustomer will fill the ATM request form.
3. The customer will also get the i-net facility. Through which they can access their
account through internet.
4. If the account holder is going abroad and he/she will want to give the right to
another person to handle his account. He/She will sign the “third party mandatry”.
5. If the customer want to change his mailing address. He/She will fill the “Address
changing form”. The Bank sent one letter on old address and one on new address
to confirm that he/she actually want to change address.
6. If the customer do not opreate his account from the last 6 mounths, his account is
dornmant (inactive). To activate the account the customer debit (withdraw) the
money from account.And also write the application to activate the account and
sign on it.

Cash Department
In cash department different facilities are given to the customer such as:
received cheques, receive cash, pay cash, online transaction. Online service is provided
by the bank to transfer money from one account to another.

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 Work in cash department and learned how to accomplish different tasks like
deposit, credit card slips and how to build the scroll of PTCL and SNGPL bills. I have
counted bundles of cash, sorted the cash and make their packets and bundles again. The
spoiled cash is sent to the head office. Head office sent this to State Bank, which after
checking it burn the spoiled notes.

In cash department when we receive the cheques from the customer, we have to
verify the signatures of the issuer. The date of issue of cheque, signature and amounts are
checked. Cheque can be encashed after six months of its issue. If that period is over then
the cheque is returned unpaid. There is a limit, different officers verify up to different
amounts. If there is any problem in the signatures, then bank call the issuer on the phone
to confirm whether he draws the cheque or not. On the back of the cheque there should be
the sign of the issuer. If any other person presented the cheque then he has to give a
photocopy of CNIC of issuer.

In cash department I also learnt how to identify original cheque, this could save
from frauds.

Clearing Department

Work in clearing department and learned how documents are cheeked in clearing
department. If the customer deposited the cheque of another bank to our branch then we
use the stamp of clearing and sent it to the clearing house (NIFT). They have the
representatives from all banks. They checked the stamping, signatures, date, amount; etc.
if it is correct then they clear it. Otherwise these are returned to the branch. State Bank of
Pakistan Dr. or Cr. the amount of these cheques.

There are three types of clearing:

Inward Clearing:

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 In inward clearing the bank is paying on the behalf of their customer. In it bank give
the payment to other bank.

Outward clearing:

In outward clearing the bank is receiving the amount on the behalf of their customers.
In it bank collect the payment from other banks.

OBC:

It is out of city where the branch of SBP does not exist.

Remittances Department

Remittance department provide a facility to a customer to transfer money

from one place to another. And can also refer to the accounting concept of a monetary
payment transferred by a customer to a business. Remittances are transfers of money by
foreign workers to their home countries. In remittances they tell me different functions.
They issue pay orders, demand drafts, call deposit receipt (CRD), fixed deposit receipt
(FRD), telegraphic (TT).

They can transfer money through

1. Pay Order (PO)
2. Demand Draft (DD)
3. Tele Transfer (TT)

Pay Order (PO)

This is used to transfer money within city. The charges where taken it depend
upon the amount.

Demand Draft (DD)

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 This is used to transfer money outside city. The charges where taken it depend
upon the amount.

Tele Transfer (TT)

This is used to transfer money outside country. The charges where taken it depend
upon the amount.

Accounts Department

I have worked in accounts department and learned how the daily activities are
being handled. I have rechecked entries, vouchers and matched them with the entries in
the report. I have identified errors in it like missing stamps, wrong entry of document
number; etc.

Here I have checked there different reports of daily working like online report,
reconciliation report, and customer report. Here I have checked G/L account in which
there are different types of accounts like refreshment, suspense, depreciation account; etc.

In customer account report we have to see the vouchers of their day to day
transactions.

In online report we have to see on line transactions like transfer of amounts by

customers and check and verified them through vouchers.

In this they make the budget for their monthly and daily expenses (refreshment,
stationary; etc.) Salaries of the staff are prepared in this department.

Credit Department

Work in credit department and learned how loans are being approved and how
proposals are send to valued customers. Here we have to see different things like worth of
customers, there financial strengths, market repute; etc.

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 There are different types of finances and for them there are different requirements
like requirements of working capital, mark up rate has been decided and clean up
requirements has also taken into consideration.

Clean up means for once in a year, the customers have to pay the whole loan.
Here the aim is to check that whether he/she is able to pay his loan or not.

TL or TF: It stands for term loan or term finance. It is for companies not for consumers.

Askari bank also provides finance facility for:

 Pre-shipment finance own resources

 Advances for current account
 Advances in current account for pledge
 Financing of export bills; etc.

Objectives and Purpose of Internship

I worked as an internee in Askari Bank to gain and experience the knowledge and
working of banking sector. These are the major objectives of my internship:

1. To learn how the bank’s departments function. I wanted to have myself in the
environment where I could get interact with the customer and be courtesy with
them as much as possible.
2. To learn about the techniques and processes used in Operations Department.
3. Dealing with the problems regarding their Accounts or any other related problem.
4. Guiding customers and making the banking function convenient for them.
5. To get the thorough knowledge of different credits offered by bank.
6. To be a part of a competitive environment and enhances my skills.

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 Identification of Main Problems

The main problem that I think Askari Bank Ltd. facing is the lack of motivated
staff. I worked under many people and most of them were not satisfied with what they
were being paid. Actually when we compare the salaries being paid by Askari Bank Ltd.
with those of other banks, they are far lesser. Another problem is that of favoritism.
People here believe that employees, who are favored, get promoted earlier than those
who are not.
They think that their hard work is not being properly awarded. This is a big
problem, which the Askari Bank Ltd. is currently facing because we all know that lack of
motivation causes sharp fall in the performance of the employees and thus the
organization.
One more problem is that they give credit limit to their employees like to
deposit 500,000 in the year. But when there employees meet the requirement and even
give them far beyond there requirement, they do not award them.

Conclusion/Recommendation
 The bank should use efficient Internet facility, which is available in the market
very easily. They should use DSL in Main Market Branch but sometimes the
speed of internet is very slow which create great problem especially for online
transactions.
 There must be separate parking for both employees and the customers, in order to
facilitate them both. It is better for the bank employees to arrive at bank 5 to10
minutes early then there bank timings, so they could have the proper parking
space for them.

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 Internees are given less importance. They do not have proper procedure for
training. Internees should be given more formal training.
 In Main Market Gulberg Branch, there is less staff. So, they should hire more
employees to meet there working requirements efficiently.
 Training programs offered by Askari Bank are less. They should increase them to
enhance the skills of their employees.
 Many customers complaint that the bank numbers are busy all the time. Actually
one is not working properly, so they should remove this fault to avoid customer
dissatisfaction.

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 References

 Web Site: www.askaribank.com.pk

 Mr. Ali Waseem (Operations Manager of Askari Bank Ltd.)

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