Chapter 1

Introduction:
1.1: History:
Askari Bank Limited (the Bank) was incorporated in Pakistan on October 9, 1991 as a public
limited company and is listed on the Karachi, Lahore and Islamabad Stock Exchanges. The
registered office of the Bank is situated at AWT Plaza, the Mall Rawalpindi. The Bank obtained
its business commencement certificate on February 26, 1992 and started operations from April 1,
1992. Army Welfare Trust directly and indirectly holds a significant portion of the Bank's share
capital at the period end. The Bank
has 227 branches (December 31, 2009: 226 branches); 226 in Pakistan and Azad Jammu and
Kashmir, including 31 Islamic banking branches, 22 sub-branches and a Wholesale Bank Branch
in the Kingdom of Bahrain. The Bank is a scheduled commercial bank and is principally engaged
in the business of banking as defined in the Banking Companies Ordinance, 1962.

1.2: Islamic Banking:

Islamic banking is a phenomenon which is continuously gaining popularity in the country, a-lot of
effort is being put in to make Islamic banking penetrate through the conventional banking. The
SBP has initiated the process the process of converting conventional banks into Islamic banks
while the government has initiated a parallel banking strategy of promoting Islamic banking
alongside the conventional banking. Islamic banking is not much different from the conventional
banking in terms of the processes being carried out but it deals with all in a more Islamic way.
They don’t charge interest in Islamic banking, they only take profits which is in fixed amounts of
money not interest rate over the loan disbursed. Islamic banking, the more general term is expected
not only to avoid interest-based transactions, prohibited in the Islamic Shariah.

1.3: Askari Bank Islamic Banking Services:

Islamic Banking was launched under the brand ‘Askari Islamic Banking’ by opening 6 dedicated
Islamic Banking branches in major cities of the country. Further expansion is planned with
improved capabilities for offering products conforming to the Shariah principles. Now it has
fourteen branches in the big cities of Pakistan. Askari Islamic Banking opens the doors for Halal
banking solutions. And the banking system employs are based on the concept of participation in
the enterprise, utilizing the funds at risk on a profit and loss sharing basis.

1.4: Shariah Advisor

An eminent scholar and recipient of the president’ medal for president of performance for the
year 2004, Professor Dr. Muhammad Tahir Mansoori, has been appointed as the Shariah advisor
of this bank. He is presently chairman of Islamic law department at the Islamic research institute
of the international university, Islamabad.
He has taught and written on Fiqh and usool-e-Fiqh matters for over two decades. He has also
responded to a large number of queries issued religious rulings Fatwa’s on various matters
pertaining to Islamic law, especially in the field of commercial law.

1.5: Vision:
Establish Islamic banking as banking of first to facilitate implementation of an equitable economic
system, providing a strong foundation for establishing a fair and just society for mankind.

1.6: Mission:
To be An Islamic banking offering a one-stop for innovative value-added products and services to
our customers within the bounds of Shariah, while optimizing the stakeholders’ value through
an organizational cultural based on learning, fairness, respect for individual enterprises and
performances.

1.7: Objective of ABL-IBB

“Is to put in place an efficient banking system supportive to economic justice and welfare of
society in line with Shariah standards”
A comprehensive range of Islamic Banking products and services is being offered, in order to meet
customer’s demand of Shariah Compliant Banking, in the following areas:
 Islamic Corporate Banking
 Islamic Investment Banking
 Islamic Trade Finance
 Islamic General Banking
 Islamic Consumer Banking

Islamic Banking products have been approved by the Bank's Shariah Advisor. As per Shariah
requirements, funds and products of Islamic Banking are managed separately from the
Conventional Banking side. All funds obtained, invested and shared in Halal modes and
investments, under supervision of the Shariah Advisor.

1.8: Core Values:

 Our customer as our first priority.
 Corporate social responsibility to enrich the lives of community operates.
 Recognition and reward for the talented and high performing employees.
 Excellence in everything we do.
 Integrity in all our dealings.
 Respect for our customers and each other.
 Constantly invest, succeed and improve.
Chapter 2
Situation Analysis:
My internship duration is six weeks in the Askasi Islamic Bank. In this branch I observed that this
branch is doing a great business and the management and the staff of the entire department have
separate place within the organization to doing their assign duties and the environment of the
organization attract the customer as well which is good for the organization.