2011

HISTORY AND BACKGROUND

19 YEARS OF BANKING HISTORY
Askari Bank was incorporated in Pakistan on October 9, 1991, as a public limited company. It commenced operations on April 1, 1992, and is principally engaged in the business of banking, as defined in the Banking Companies Ordinance, 1962. The Bank is listed on Karachi, Lahore and Islamabad Stock Exchanges. Askari Bank has since expanded into a network of 235 branches / sub-branches, including 31 dedicated Islamic banking branches, and a wholesale bank branch in Bahrain. A shared network of 4,401 online ATMs covering all major cities in Pakistan supports the delivery channels for customer service. As at December 31, 2010, the Bank had equity of Rs. 16.0 billion and total assets of Rs. 314.7 billion, with 885,764 banking customers, serviced by our 6,442 employees. Askari Investment Management Limited and Askari Securities Limited are subsidiaries of Askari Bank engaged in managing mutual funds and share brokerage, respectively.

The VISION to be the bank of first choice in the region demands continuous strive for creation of business opportunities with innovation while maintaining the core values to meet the commitment to all banks stakeholders. The range of the products aims to serve the diverse customer base that comprises of corporate, SMEs, individual savers, households and, farmers. At the same time, the people are constantly engaged in assessing customer needs and market dynamics to realign the products and the priorities to attain brand recognition and competitive edge. ABL is reshaping its portfolio of businesses by investing in higher growth areas, extending and developing the core competencies and moving out of weak and non core segments.

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PRODUCTS / SERVICES
Agriculture Banking
Kissan Evergreen Finance Kisaan Aabpashi Finance Kissan Livestock Finance Farm Mechanization Finance Kissan Tractor Finance

Branch Banking
Deposit multiplier account Investment certificates Askari mahana bachat account Roshan mustaqbil deposit Value plus deposit account Paishgi munafa account Rupee traveller cheques

Consumer Banking
Ask 4 car Visa debit card Mortgage finance Personal finance Master card

Islamic Banking
Ijarah-bis-sayyarah Home musharakah

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GENERAL PROFILE OF THE COMPANY

VISION STATEMENT

To be the bank of first choice in the region

MISSION STATEMENT

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 stakeholders, and contributing to society.

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AWARDS AND ACHIEVEMENTS

Askari Bank continues its success in competition. Over the years, ACBL has received several awards for the quality of its banking service to individuals and corporate.

Best Retail Bank in Pakistan by The Asian Banker.

"1st Consumer Choice Award" by the Consumer Association of Pakistan. 2004

"Corporate Excellence Award" by the Management Association of Pakistan (MAP). 2002, 2003 & 2004.

The Best Bank in Pakistan by Global Finance magazine. 2001 and 2002.

Best Consumer Internet Bank Global Finance magazine. 2002 and 2003.

"Euro money and Asia money Awards" 1994, 1996 and 1997.

Best Presented Annual Accounts by (ICAP) and (ICAMP). 2000, 2001and 2002.

The Best Presented Annual Accounts by South Asian Federation of Accountants (SAFA), in the SAARC region.

The Best Consumer Banking Award 2006 by the Consumer Association of Pakistan. 2007

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

"Best Corporate Report Award for the year 2008" by ICAP & ICMAP. 2008

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CREDIT RATING
Askari bank has following credit rating by Pakistan Credit Rating Agency (PACRA):

LONG TERM
SHORT TERM

AA

A1+

AA denotes 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.

A1+ shows obligations supported by the highest capacity for timely repayment. A plus (+) appended to a rating denotes relative status within major rating categories.

COMPETITORS

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Banking industry is growing much fast. So Askari bank is facing a lot of competition in the market. There are following competitors: ABN Amro Bank al Falah (Pvt) Ltd Union Bank Ltd Soneri Bank Ltd The bank of Punjab Bank Al-Habib Ltd My bank Ltd Silk Bank Ltd NIB Bank Ltd National bank of Pakistan Meezan bank limited Allied bank limited MCB bank limited United Bank limited Habib Bank Limited Khushhali Bank Limited

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ORGANIZATIONAL STRUCTURE
Board of Directors
Lt. Gen. Javed Iqbal HI (M) Lt. Gen. (R) Imtiaz Hussain Mr. Muhammad Rafiquddin Mehkari Mr. Zafar Alam Khan Sumbal Dr. Bashir Ahmad Khan Mr. Shahid Mahmud Mr. Muhammad Riyazul Haque Mr. Ali Noormahomed Rattansey Khawaja Jalaluddin Roomi Mr. Wazir Ali Khoja Chairman Chairman Executive Committee President & Chief Executive Director Director Director Director Director Director Director (NIT Nominee)

Company Secretary
Mr. M.A Ghazali Marghoo

Audit Committee
Dr. Bashir Ahmad Khan Mr. Ali Noormahomed Rattansey Mr. Wazir Ali Khoja Chairman Member Member

Auditors
KPMG Taseer Hadi & Co. Chartered Accountants

Legal Advisors
Rizvi, Isa, Afridi & Angell

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MANAGEMENT
MAIN OFFICES
Registered \ Head Office
AWT Plaza, the MALL P.O.Box. No: 1084 Rawalpindi: 46000 Pakistan. Tel: 92-51-9063000 Fax: 92-51-9272455 E-mail: www.askaribank.com.pk

Registrar \ Share Transfer Office

THK Associate (PVT) Limited Ground Floor. State Life Building 3 Dr.Ziauddin Ahmad Road, Karachi 75530 P.O. box 8533, Karachi.

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ORGANOGRAM

BOARD OF DIRECTORS

Executive Committee

Internal Audit

President and Chief Executive

Corp. Banking & Fin. Inst. Group

Operating and credit group

Regions

Retail Banking Group Asset Products

Credit Cards

International

Credit Electronic Technology Systems and Operations

Rawalpindi/ Islamabad North

Planning and Corporate affairs Human Resource

Treasury Corporate and Merchant Banking

Investment products

Lahore

Finance

Data Reporting

East

Legal Affairs

South I

South II

West

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HIERARCHY OF ALLAMA IQBAL TOWN BRANCH

BRANCH MANAGER

FOREIGN EXCHANGE\TRADE DEPT OPERATIONS MANAGER CLEARING

CREDIT DEPT

CASH DEPARTMENTNT

CUSTOMER SERVICE

INCHARGE GENERAL BANKING

ACCOUNT OPENING

REMITTANCES

NON-CLERICAL STAFF

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DESRIPTION OF VARIOUS DEPARTMENTS

General Banking Department

Account opening Remittance Department Cash Department Clearing Department

Privilege Banking Department

Online banking Lockers

Foreign Exchange Department

Import Department Export Department Foreign Currency Department

Credit Department Accounts Department I.T. Department

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ACCOUNT OPENING DEPARTMENT

Functions
Providing account opening form according to the customer's requirements, Guide the customer about the requirements of the account opening and form filling Check the forms whether they are correctly completed or not Preparing checklist Stamping on the form Pasting of forms in register after release from general banking in charge Issuance of cheque books Issuance of accounts maintenance certificate Closure of account Verification of signature in case of cheque presented before releasing of account opening from SS card is not yet scanned

Accounts of General Customers

Minor account Illiterate person account Individual account Joint Account

Accounts of Special Customers

Sole Proprietorship Account Partnership Account Limited Companys Account Agents Account Joint Stock Company Account Agency Account Clubs, Societies /Association Accounts Trusts Local Bodies Etc. Executors & Administrators Account

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Types of Accounts
The customer can open his bank account in order to deposit or withdraw amount. The bank offers different types of accounts which are as follow: Current account Savings account Askari special deposit account (ASDA) Basic banking account (BBA) Value Plus Current Account Value Plus Saving Account Foreign Currency Account

Current Account (CD)

The current account is also called CD account and the Code used for this account is 0101.Current account can be opened by an individual, jointly, and also by the company. The initial deposit in order to open this account is Rs.500.The account holder does not bear any loss and no profit is given on this account. No zakat is deducted from this type of account and you can make as many transactions as you want in a month. There is no minimum balance requirement. There are three options which are given to customer like:

Any One: Any one of the account holder can make transaction Jointly: All the account holders need to be there for making transaction Either Or Survivor: If one person died than the other can make transaction.

Savings Account
The savings account is also called PLS account. The saving account can also be opened individually, jointly, and by company but mostly this account was opened by individual and jointly. This account can be opened with the minimum deposit of Rs.1000. Profit given on this account is semi-annually and the profit rate is 5%. Zakat deduction rate is 2.5%. One can

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make as many transactions as he wants in a month. There is no minimum balance requirement. The code which is used for this account is 0110. The things which are required in order to open this account are: Computerized national identity card (CNIC) Letter from the company where the person is currently working In case of thumb sign also require passport size photographs Source of income Number of dependents National tax number (NTN) And other general information, effect all these information is required in all the accounts

Basic Banking Account (BBA)

The basic banking account is also called BBA account and the code which is used for this account is 01021. This account can be opened individually or jointly. This account is mostly opened for the low income holders like Pensioner Lower income people House wife Students Salaried person

Maximum two deposits and two withdraw can be made by the account holder in a month. The bank does not deduct any extra charges even if the amount is less than Rs.5000, but if the transaction exceeds its limit than the bank charge Rs.30 per transaction but no charges for the ATM transactions. This account can be opened with the minimum deposit of Rs.1000. No profit given on this account.

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Askari Special Deposit Account (ASDA)
The Askari Special Deposit account is also called ASDA. This account can also be opened individually, jointly, and by the company. The code used for this account is 01165. Zakat is deducted from this account. The account is offered specially by the bank by its name and the features that it maintains are: There is no limit on the transactions The profit was given at the rate of 5% on monthly basis. It can be opened with minimum deposit of Rs.500 but profit was given on the amount exceeding Rs.50, 000.

Value Plus Current Account

The nature of this account is like current account but it exempts the online charges. Amount in the account is insured. The account holder can make as many transactions as he wants to.

Value Plus Saving Account

Profit is given semi-annually at 5% rate. Zakat is deducted on this account.

Foreign Currency Account

This account is in foreign currency. Askari bank offers three foreign currencies i-e; euro, pond and US dollar. 1. Current Account: No profit No zakat 2. Saving Account: Profit rate is 1.5% on semi-annual basis No zakat

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Account Opening Requirements For Companies
For Proprietary Company
copy of CNIC original letter head and rubber stamp of proprietor NTN no

For Partnership Company

copy of CNIC of all partners Resolution on original letter head of company & rubber stamp of partner on which operation of account clearly mention. Partnership deed dully attested by company registrar. Registration certificate if required Introduction

Public & Private Company

Copy of CNIC of all directors & authorized signatories attested by company Sectary Resolution of board of directors on original letter head of company with rubber stamp & embossed common seal of company in which operation of account clearly mentioned. Memorandum & Articles Of Association attested by SECP FORM 29 attested by SECP certificate of incorporation/ commencement of business attested by SECP List of directors on companys letter head Company embossed common seal on AOF

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Account Opening Procedure
The general procedure of account opening is same but the document required to open the account is different according to type of account. Information at the time of opening of account, the bank officer must assure that customer has the following characteristics: The customer must be the age of 18 according to law. The customer must be of sound mind. The customer must not be insolvent and bankrupt. The customer must not be disqualified under any law from entering into any contract. Also the bank officer must take proper information from the customer about his means, line and place of business.

Account Opening Form (AOF)

The bank officer must assure that the customer fills each and every column of account opening form correctly with all necessary details. The specific information about the business or occupation of the customer is recorded in the form.

National Identity Card

The bank officer check that number of national identity card is correctly recorded in the AOF and a copy of national identity card is kept in record by the bank.

Specimen Signature Card (SS Card)

The bank officer takes signature of customer on AOF and specimen signature card. Latter, this card is scanned in the computer and whenever customer makes any transaction in this account then his signature is verified by it.

Undertaking Forms
There is different type of undertaking which are taken by the bank at the time of opening the account, two of them are: Sign differ form Vernacular form

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Sign Differ Form
This form is filled by the client at the time of opening the account, if the initial which was made on the computerized identity card is different from the one which is made on the account opening form. This is actually the declaration which is given by the client that the client used different signature for operating account from the one that was made on CNIC.

Vernacular Form
This form is filled by the customer, if the client used the thumb impression in order to operate account and also in case if the initials was shaky, mean there is slightly difference every time in signature. This is also the sort of undertaking which iss taken by the bank in order to protect itself. It is clearly mentioned on this that in such cases if any fraud occurs than banker is not responsible for this.

Letter of Thanks
After the opening of account, the bank sends this letter to the account holder address. There are different purpose of this letter, some of them are To create goodwill To make sure that all the problems are solved efficiently and effectively The most basic purpose is to verify the account holder address, the bank sends this letter to the account holders address and if the address is not accurate then the letter is received back by the bank. The bank then again verifies address from account holder and sends again till the letter is received by account holder. Cheque book is not issued till the address is not verified.

Issuance of Cheque Book

The customer fills the Form A for issuance of cheque books along with the AOF. The requisition slip is duly signed then bank officer enters cheque book series on it. The officer enters the issuance of cheque book in register. To minimize the misappropriation bank stamps the account number on each leaf of cheque book. Bank Charges Rs.3 per leaf. ABL issue 25 t0 100 leaves cheque books. If cheque book is lost then customer fill the From B for resonance of cheque book. Bank Charge Rs.100 for resonance.

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ATM Card
There are two types of ATM cards ATM Classic Withdrawal amount limit = Rs. 50,000 Transfer limit = Rs. 250,000 Charges = Rs. 500

ATM Gold Withdrawal limit = Rs. 100,000 Transfer limit = Rs. 500,000 Charges = Rs. 750

Accounts Not In Use Dormant Accounts

Accounts which are not in use for 6 months are considered as dormant accounts

Inactive Accounts
If there is no transaction in any account within 6 months then account will become inactive. Now the account will be active only by crediting some amount.

Closure of Account
In order to close the account, the account holder needs to fulfil the form by the name of closure of account. With this form the client also need to give back his cheque book that he holds due to his account. After collecting the cheque book and verifying all the things, the bank cancel the cheque numbers and close the customer account on his request. The bank will charge Rs.100 for closure and remaining balance in the applicants account will be paid to account holder.

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Askari Liability Products Peeshgi Munafa (Advanced Profit)
In this profit at the rate of 12% is given in advance on investing amount for 15 months. The minimum balance requirement is 100,000 or multiples of 100,000. Example: If you have invested one lac for 15 months then you will be given Rs. 12,000 at the start of the tenure. In addition to the profit in advance other benefits of this product include: Free visa card issuance 2 free pay orders in a month

Mahana Bachat
In this account holder can deposit their amount for the fixed period of time. Profit is given on monthly basis on the basis of amount deposited. In Mahana Bachat the bank give two options to the account holder: Deposit their amount for 1 year and the profit rate is 10.1% Deposit their amount for 3 years and the profit rate is 11.1%

The amount through which this account can be opened is: Minimum Maximum Rs.50,000 Rs.10,000,000

In this one term is used which is called Rollover, it means if the person tick the option of rollover while opening this account than after the completion of one year the same process will carry on instead of closing that account.

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Two computerized generated receipt is printed, the very next day after opening the AMBA, one is given to account holder and the second one is maintained by the bank. This receipt is demanded by the bank at the time of closing the AMBA.

Deposit Multiplier
This is a term deposit. If you avail this product you will be given a profit rate of 16.50% per annum. But the profit amount is given on the maturity date. The tenure for this product is 10 years. The amount through which this account can be opened is: Minimum Maximum Rs.50,000 Rs.10,000,000

Roshan Mustaqbil
With Askari Roshan Mustaqbil Deposit you can invest in the form of monthly deposits for a period of five years and get paid back the same monthly deposit amount every month for the next five years while receiving your principal amount in full at the end of the tenure. With this product you can double your investment in a time period of ten years.

Balance requirements are you can start with Rs. 5,000 or multiples of this and maximum up to Rs. 50,000. Profit is also given at the end of the tenure. Profit rate is 11.09% per annum.

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REMITTANCE DEPARTMENT
The remittance department deals with the transfer of money from one place to another. This department deals with the local currency transfer only. ABL provides these services to both customers & non-customers.

Functions
Pay Orders (PO) Intercity clearing Outward Bills for Collection (OBC) Local clearing Cancellation of pay order & demand draft

Instruments of the Remittances Departments Demand Draft (DD)

A demand draft is an instrument, which is drawn by one bank upon another bank for a specific sum of money payable on demand beyond the local limits. It is made by the bank and given to the purchaser against cash or cheque. If two banks are involved, then one bank sends a DD to another bank. The issuance of DD is handled by the main branch. Charges: For account holder = Rs. 119 Cash payment = Rs. 600

Pay Order (PO)

It is similar to the demand draft but the difference is that it is used for payments in the same city. Fill the application form. Issue pay order after recovering cheques.
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Make entry in PO issue register. All pay order shall be crossed" payees account only".

Charges: For account holder = Rs. 75 Cash payment = Rs. 750

Intercity Clearing
In intercity clearing, clearing between cities are done. Intercity clearing is done through NIFT (National Institutional Facilitation Technologies). For example; if we have a cheque of any banks branch that are not in Lahore then this cheque is given to the NIFT representative for clearing purposes.

Outward Bills For Collection

If in any city, where NIFT doesnt provide its services, then we stamp OBC and directly send it to that banks branch directly for clearing.

Local Clearing
This involves the cheques only from Lahore. When a local bank draws a cheque on Askari bank or Askari bank draw a cheque onto other local banks, these cheques are considered in local clearing.

Travelers Cheques
Askari travelers cheques are a valuable financial service of ABL. They are issued to settle all your business transaction and customer can travel without any pocket load. It is safest

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substitute for cash, easily refundable in case of theft and loss. Askari bank issues the traveler cheques denomination of Rs. 10,000. Askari traveler cheques are issued against cash cheque or debit to customer account. It is issued on purchase agreement form and 3 copies are prepared. One is sent to head office, the second one for record of bank and third one for the custom. No service charges are taken on it. Any branch of ABL can make payment of Askari traveler cheque. It can be drawn by another bank through collection. It can be enchased from the issuing branch but not on issuing date. If these cheques are enchased within seven days then customer will receive 0.2% commission.

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CASH DEPARTMENT
All physical movement of cash in the bank is made through the cash department. Normally cash department performs following functions: Receipt Payments Act according to any standing instructions Transfer of funds from one account to another Handling of ATM Verification of signatures Posting

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CLEARING DEPARTMENT
Bank collects payment of cheques on behalf of its customer within city.

Functions
Accepting transfer delivery and clearing cheques. Arranging receipt of cheques payment. Posting of clearing cheques in the system Prepare the return summary Charges for returns Amount collections on drawn checks for members and sub-members of local clearing house

Inward Clearing
Cheques drawn on Askari Bank Allama Iqbal Town branch, Lahore, sent by other banks, constitute the inward clearing of ABL.

Other points to remember in inward clearing: We are paying amount of cheque Customers Account will be debited In case of return charges will be Rs. 250

Outward Clearing
When Cheques are drawn upon other banks of the same city (as Lahore) are presented in Askari Bank to deposit them in the respective payees accounts, these instruments are lodged in outward clearing of Askari Bank. Other points to remember in outward clearing: We receive payment of cheque Customer account will be credited In case of return charges will be Rs. 50. Return memo will be attached with cheque.

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PREVILDGE BANKING DEPARTMENT

Online Banking
Online banking means that if a person is sitting in one city like Lahore can easily transfer/deposit and withdraw his fund from any other branch of Askari Bank in any city or location. For this purpose the person needs to complete the online funds transfer slip, which includes the information of that person and the account to which the transaction is made. If the funds are transfer with in a city no extra charges are made but in case of out of city some charges are applied like: Case Cash deposit Cash withdraw Funds transfer Charges (Rs.) 320 120 185

Lockers
Askari bank offers locker facility to its customers. The application form was filled by the customer as well as specimen signature card (S.S) need to be filled. While fulfilling the form, there are three options regarding the operating of locker, these are Anyone can operate Jointly Either or survivor

In order to get a locker the bank gives two options On Rent Purchase

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Rent
If the person wants to get an account on rent the security fees which need to be deposited is Rs.2000 which is refundable. The annual charges for different lockers are mentioned below: Size Small Medium Large Charges (Rs.) 1500 2000 3500

Purchase
If the person want to purchase the locker than the charges for different lockers are mentioned below: Size Small Medium Large Charges (Rs.) 25,000 35,000 45,000

Insurance Amount
Size Small Medium Large Charges (Rs.) 500,000 1,500,000 2,500,000

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FOREIGN EXCHANGE/FOREIGN TRADE DEPARTMENT

Foreign Exchange Department works like the general bank departments with the difference that it deals in foreign currency.

Functions
Foreign remittances Foreign currency accounts

Foreign Currency Account

A depositor can open account in US dollar, pond sterlings, and Euro with nominated branches. For opening of account a form is provided to the person/party, introduction of the new account holder or by the officer of the bank. Procedure of opening foreign currency accounts is same as other accounts. No zakat is deducted on these accounts, no income tax deductions; no wealth tax deduction will be there.

Foreign Remittance
The procedure of foreign remittance is same as in local remittance. The only difference is that it deals in foreign currency. Askari bank currently offers three currencies i.e; pond sterling, US dollar and euro. Most of the times, following modes are used in foreign remittance. Foreign Demand Draft (FDD) Foreign Telegraph Transfer (FTT)

Foreign Demand Draft

When bank receive foreign demand draft then bank will debit to unsupervised account of the customer and credit to treasury bank because all the foreign currency accounts are maintained

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in treasury, the bank will send debit advice to treasury. In return, treasury will send the credit advice and branch officer will debit the treasury and credit to customer account.

Foreign Telegraph Transfer

When a customer wants to transfer funds to foreign country through telegraph transfer then he will deposit the amount.

Letter Of Credit (L/C)

Letter of credit is a commitment by the buyer bank to make the payment to the exporter bank that it assumes the responsibility of payment if the goods are according to terms & conditions.

Parties Involved
Importer/buyer/opener Exporter/seller/beneficiary Importer bank/ issuing banks Exporter bank/advising bank/negotiating bank Shipping agency

Types of L/C
Irrevocable L/C: It cannot be changed unless both the buyer and the seller agree. Revocable L/C: In this changes to the L/C can be made without the consent of the beneficiary. Sight L/C: It means that payment is made immediately to the beneficiary upon presentation of the correct documents in the required time frame.

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D/A LC: It will specify when payment will be made at a future date. The importer bank will make payment at defined days after the shipment. The shipment period may be 60, 90 or 120 days.

Documents Required For L/C:

To open an LC importer submits the following documents in his bank. Form-I Performa Invoice LC request form

Documents Required for Export:

E-Form Commercial Invoice Packing list Certificate of origin Bill of exchange Insurance certificate Goods declaration Bill of Lading or Airway Bill

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Procedure for Opening of L/C
Customer Request for Opening L/C

Request Letter + Insurance + Performa Invoice + Certificate of Import of Goods

Bank-Risk Analysis & Credit History of Importer

Approval by the Bank/Area/Region/H.O (Within Their Limits)

RCAD + CFTU

RCAD (Regional Credit Administration Department) It feeds the limit. CFTU (Centralized Foreign Trade Unit) It controls the transmission of L/C. Calculate margin, commission and mark up on L/C.

Performa Invoice
It is the document which is sent by the exporter to the importer about the description of the goods like quality, quantity and price of goods.

Indent Form
The agent (for e.g., USA parent company and its agent in PAKISTAN) authorizes on behalf of its parent company that the goods have been received.

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Country of Origin
It contains the information about who has manufactured the goods, country of manufacture. It tells about in which country goods are ready for sale.

I-Form / Import Form

Its the statistical form which will be submitted to SBP by the bank about the imported goods.

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CREDIT DEPARTMENT
Askari Commercial Bank provides two types of loan that are: Funded Facility Non Funded Facility

A.

Funded Facility

In this type of finance, bank actually deploys its funds and mark up is charged on it. ABL provide the following types of fund-based loan. Running finance Cash finance Term finance Staff finance Trade finance Finance against packing credit Post Shipment Finances

I.

Running Finance

It is used to meet the running requirement of the capital. Its the short term finance normally used for a period 1 year in which payment is made at the end of the period. In running finance, Bank transfers a particular amount of loan in customers account from where he withdraws the amount as needed. Mark-up is charged only on the amount withdrawn not on the whole amount of loan. R.F is used for the purpose of A/R, purchase of raw material, Salaries payable, utility bills payable, Administration expenses, Maintenance, Packaging etc.

II.

Cash Finance

Cash finance is like a running finance but it is extended against the pledged security like inventory or stock and 25% cash, margin is also charged. The pledged stock is also insured from any insurance company and the customer also pays all the insurance and any other security expenses. Mark up is charged over the full loan amount and for whole time period of maturity.

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III. Term Finance

The finance in which Mark-up is charged on the overall amount of loan whether utilized or not. Its a long term finance normally used for a period of 3-5yrs.Personal guarantee is required in it. Loan will be issued to the person having 25,000 or above salary. Installment basis pay back. Categories of Term Finance are: Financing Leasing

Financing
Title/ownership with the customer Bank will pay the amount to customer and customer will purchase the machinery

Leasing
Ownership/ title with the bank. Bank will purchase the car 20% markup charged on the principle amount. Bank-customer account no. required. Tax benefit to customer

IV.

Staff Finance

This facility is provided for the staff of ABL. The purpose is welfare of the employees. SBP specify the credit limit for the staff of bank. The mark up rate is less than commercial rate.

V.

Trade Finance

Trade finance is provided for short time period so it is most suitable for bank. These generate more income for the bank due to greater revolution of money. Trade finance is of money. Trade finances are of two types: Import related finance Export related finance

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Import Related Finance
There are three types of import related finance Payment against document Finance against imported merchandize

Payment Against Document (PAD)

When the bank receives bill of lading and other commercial document from the exporter then bank will pay to reimbursing bank of exporter. If the customer will not receive the document within 7 days then bank issue a letter to the importer and now letter of credit (LC) is converted into absolute liability. The bank gives the credit period to the importer to make the payment which is 90 or 120 days. And now bank will charge the mark up and import service charges from the importer. The reimbursing bank will send all the documents to ABL and not directly to the importer.

Finance Against Imported Merchandize (FIM)

When the importer has no funds to import merchandize then he request the bank letter of credit along with the finance. In PDA the bank is only responsible to make payment but in FIM bank makes payment from its own funds these types of finances have specified rate of mark up and time period. All the value-added expenses like excise duty, port charges etc are charged by the customer as cash security margin.

Export Related Finance Finance Against Packing Credit

Finance against packing credit is extended for the preparation of goods when the exporter has confirmed letter of credit from the importer. To improve the economy of Pakistan and to improve the export, SBP introduce special export finance schemes to the exporter at cheaper mark-up rate and also offer export rebates. It is of two types:

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Pre Shipment Finance Part I
Pre shipment finance part I is extended for one year. Funds of SBP are involved in this finance. When this finance is extended then bank will debit the SBP account and credit to customer account. Rate of mark-up is 2% from which 1% is for SBP and the bank charges 1%.

Pre Shipment Finance Part 2

This facility is for existing exporter. In this way exporter can avail half of the limit of total export business transacted last year. If the credit history of exporter is satisfactory then this credit limit can be increased.

B.

Non-Funded Facility

In this finance, no cash is involved. It is only a commitment. It is an obligation of bank and if the customer declares default then bank is liable to make payment. The bank charges commission in these finances in respect of markup. This facility is provided against the cash margin and mortgage of property because bank has risk in this type of finances. Letter Of Guarantee (LG) Letter Of Credit (LC)

Letter Of Guarantee (LC)

Letter of guarantee is contingency liabilities of bank because the funds are not actually involved in it. So they are classified as off balance sheet items. Letter of guaranty is mostly given in case of contract. 25% cash margin is charged and also some collateral is taken.

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ACCOUNTS DEPARTMENT
Functions
Daily activity checking Physical checking of cheques and deposit slips Reconciliation of cheques with ledger Preparation of statement of affairs Weekly schedule program Budget

IT DEPARTMENT
Functions
Managing Day To Day Cash Transaction In Computer Maintaining Customers Accounts In Computer Receiving All Mails From Head Office Fax Keeping ATM In Working Condition Printing Daily Reports Receiving IBCA

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SWOT ANALYSIS
Strengths
ABL was organized by Army Welfare Trust (AWT) so it has strong army background. Askari Bank has opened all its branches at commercial areas so that the customers or clients face no problems in reaching to the bank. Askari bank has got a reliable and easy to use internal computer system. Every information regarding the transactions in customers deposits has been computerized. The annual financial statement are prepared by the bank in accordance with the international accounting standard and are also published quarterly and half yearly accounts to provide information to their stakeholders for taking well informed decisions. All the branches of Askari Bank are online and automated. Askari bank is the leading private sector bank in the banking network in Pakistan with many of them online branches in major cities of the country. Askari bank has the wide range of ATM Network across the country. The customers can withdraw their funds any time at all the ATM Sites. ABL management is quite prepared to adopt the latest advancements in technology resulting in revolution in the banking operations such as cheque clearing process, computer based teller equipment and electronic funds transfers among the others. Askari Bank provide the good Phone banking service that is very attractive for those customers who dont have time to personally come to the bank i.e. They can easily get the information. Thus, saving the precious time of the customers.

Weaknesses
In my opinions these are the points that might be detrimental to the efficiency and profitability of the bank. Banks marketing department is not strong enough. Advertising done by the bank is less than the requirement.

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Almost all the decision-making is in the hands of the upper management. Only few decisions are taken at the lower level. Centralization is effective only certain levels but it is also times costly. The bank has still some of the traditional ways of operations in this advanced technological environment. Askari Bank has use computerized accounting system but, still the bankers use to make their entries in the accounting register also. There is no specific training program arranged for the new recruiters. They have to learn based on their observations and also their mistakes.

Opportunities
Askari bank growing business requires an extensive branch network. There are great opportunities for ABL for the expansion of its business. Askari Bank can extend its network in other countries. It can enhance its profitability by making use of new technology. Foreign investors in the banking industry are welcomed in Pakistan as they bring not only the precious foreign exchange investment but also skills and techniques of modern banking system, innovative products and services. Askari Bank has an Islamic Banking system also. But it is not fully Islamic banking. It has only few branches of Askari. Askari Bank has Branches in Remote Areas. Foreign Trade is the focus of bank. It has become an ideal bank for the importers and exporters.

Threats
Askari Bank is facing a strong competition by its major competitors; Union Bank; Faysal Bank; Meezan Bank; My Bank and Bank Alfalah. Business of these banks is also growing with very high pace. So Askari Bank has been performing very well in the presence of unstable political and economic situation but this uncertainty has currently shown its effects on the banks profits and is also a continuous threat for the bank.

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As the banking procedures are complicated that is why general public takes interest into other options of investments like in shares of companies and in Term Finance Certificates. The charges of the services that the bank receives from the customers are higher than their competitors. So it loses many customers for this reason. Frauds are also a great threat. Current economic condition of the country is also a constant threat.

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RATIO ANALYSIS
Asset Management Ratio Total Asset Turn Over:
Total asset turnover = sales / total assets Sales 2009 2010 22,661,754 27,952,162 Total assets 254,327,446 314,744,552 Total asset turnover 8.91% 8.88%

INTERPRETATION: The asset turnover has decreased from the last year which means that the banks capacity to convert its asset into its sales has decreased. Askari bank has increased its assets but due to the current economic conditions of the country it was unable to convert those assets into its revenues. The extent of damage to private and public infrastructure and the delayed policy response to floods, energy shortages, direct and indirect impacts of supply disruptions, and weak consumer and business confidence, took its toll on the domestic economy during the current fiscal year.

Profitability Ratios Gross Profit Margin:

Gross profit margin = gross profit / sales GROSS PROFIT SALES GROSS MARGIN 2009 2010 9,032,658 10,015,546 22,661,754 27,952,162 39.85% 35.83% PROFIT

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INTERPRETATION: Gross profit margin serves as the source for paying additional expenses and future savings. Askari bank has shown an increase in its gross profit as well as its sales but the increase in cost of goods sold is high enough to overlap the impact of increase in sales.

Net Profit Margin:

Net profit margin = net profit / sales NET PROFIT SALES NET MARGIN 2009 2010 1,107,793 943,177 22,661,754 27,952,162 4.888% 3.374% PROFIT

INTERPRETATION: The decrease in net profit margin is quite evident from the fact that net profit of 2010 has decreased from Rs. 1,107,793,000 to Rs. 943,177,000. This decrease may have been the result of current economic conditions of the country, adoption of new technology as well as the expansion of its network from 226 to 235 branches.

Operating Profit Margin:

Operating profit margin = operating profit / sales Operating profit Sales Operating margin 2009 2010 4,557,000 4,338,000 22,661,754 27,952,162 20% 15% profit

INTERPRETATION: The operating profit (i.e. profit before provisions and taxation) of the Bank stood at Rs.4.34 billion; slightly below last year (2009:Rs.4.55 billion). The administrative expenses have increased by 12%. This rise is attributable to the increase in

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number of branches from 226 to 235 and corresponding increase in staff, additional recurring expenses on new IT initiative, beside persistent inflationary upsurge.

Return On Asset:
Return on asset = net income / total asset Net income 2009 2010 1,107,793 943,177 Total asset 254,327,446 314,744,552 ROA 0.4355% 0.2996%

INTERPRETATION: Return on Assets (ROA) is an indicator of how profitable company's assets are in generating profit. Return on assets at the close of 2010 was 0.299% as against 0.435% last year, registering a decline of 14 bps due to14% decrease in profit for the year against 24% increase in total assets.

Return On Equity:
Return on equity = net income / equity Net income 2009 2010 1,107,793 943,177 equity 13,142,688 14,820,578 ROE 8.4289% 6.3609%

INTERPRETATION: The sharp decrease in ROE from 8.4% to 6.3% is due to the decrease in net income which is due to technology adoption, economic crisis, and expansion etc.

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Basic Earning Power:
Basic earning power = operating income / total asset Operating income 2009 2010 4,557,000 4,338,000 Total asset 254,327,446 314,744,552 Basic earning power 1.79% 1.38%

INTERPRETATION: This ratio is often used as a measure of the effectiveness of operations. Basic Earning Power measures the basic profitability of Assets because it excludes consideration of interest and tax. The increase of assets by 19.1% is not contributing in the profitability of the bank unless it is being converted into the income of the bank but this 5% decrease in operating income is compensated by the fact that opening of new branches means serving more customers, grabbing more market and adoption of new technology means that satisfying customers more efficiently and effectively.

Market Ratios Price To Earnings Ratio:

P/E = price per share / EPS Price per share 2009 2010 27.30 17.69 EPS 2.18 1.48 P/E 12.5 11.95

INTERPRETATION: The P/E ratio highlights the connection between the price and recent company performance. If both the market value and companys performance increases or decreases the ratio remains the same. But here the ratio has decreased which means that the decrease in market perception about the company has decreased more than the banks actual decrease in its performance which is a negative thing for the bank.

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Market / Book Value Ratio:
Market/book value = market price per share / book value /share Market price 2009 2010 27.30 17.69 Book value 25.904 23.058 Market / book value 1.053 0.767

INTERPRETATION: A decrease is shown in both the market and book value of the shares. A 54% decrease in market value as against 12% decrease in book value resulted in an overall decrease in this ratio. It measures how much a company worth at present, in comparison with the amount of capital invested by current and past shareholders into it.

Solvency Ratios Book Value / Share:

Book value/ share = total common equity / no. of shares outstanding Equity 2009 2010 13,142,688,000 14,820,578,000 No. of shares 507,346,700 642,744,335 Book value / share 25.904 23.058

INTERPRETATION: The increase in the no. of shares has resulted in a decrease in book value despite an increase in equity.

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EPS:
EPS = net income / shares outstanding Net income 2009 2010 1,107,793,000 943,177,000 Shares outstanding 507,346,700 642,744,335 EPS 2.18 1.47

INTERPRETATION: Earning per share (EPS) decreased from Rs. 2.18 of last year to Rs.1.48 per share for the year 2010. The decrease is mainly due to less than expected increase in net interest income, drop of 14% in non-mark-up income and 12% increase in operating expenses. Also, the increase in number of shares has resulted in EPS to show a declining trend.

Debt Ratio:
Debt ratio = total liabilities / total assets Total liabilities 2009 2010 239,378,374 298,740,410 Total assets 254,327,446 314,744,552 Debt ratio 0.94122 0.94915

INTERPRETATION: The ratio is less than 1 which shows that the bank has more assets than liabilities. The bank has shown a very still increase in the debt ratio. The liability increase is 19.8% and the asset increase is 19.19% which means that the bank has more debt increase than the asset increase.

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DEBT TO EQUITY RATIO:
Debt to equity = total liabilities / equity Total liabilities 2009 2010 239,378,374 298,740,410 equity 13,142,688 14,820,578 Debt to equity 18.213 20.157

INTERPRETATION: this ratio shows the banks financial leverage which has shown an increase from the past year and that is not a good thing. The bank has taken more debt as compared to the increase in its shareholders equity increase.

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OVERALL APPRAISAL/PROBLEMS:
The ABL is a leading bank of Pakistan. It has won the rewards like: The Best Retail Banking Award 2008 The Best Corporate Report Award 2008 From the opinion of international organization the overall strong standing of the bank is very clear. It won a certificate from Pakistan Credit Rating Agency (PACRA) A1+ in short run and AA long term. Total assets of the bank are increased to 314,745 million. Moreover, it has increased its network from 226 to 235. The bank is fully equipped with the modern technology and it is also providing all the latest banking services like online banking, Internet banking, ATM cards, traveler cheuqe, and credit cards etc. But there are also some problems which is in the way for a better and brighter future of the bank. The bank is not practicing sufficient marketing strategies. This is the reason majority of the people dont even know the products and the facilities the bank is offering to its customers. In addition to this the bank is also over staffed which greatly increase the administrative expenses resulting in a decrease in operating profit of the bank. ABL has won the confidence of all its customers by providing them the online services within few seconds. The future of bank is progressive and will be a leading bank of Pakistan even competing with foreign banks as even in the worst economic conditions of Pakistan the bank is enjoying profits as well as increase in equity and assets.

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DETAILED DESCRIPTION OF THE ACTIVITIES PERFORMED BY THE INTERNEE

Department Name: Accounts
I started with the accounts department. M/s Mahrukh was the in charge officer. She guided me about the functions performed in accounts. I learnt about how to differentiate among cheques. She assigned me the duty of sorting out of all types of cheques in descending order. I made separate heads of Current Deposit Receipts (CDR), Savings Account (PLS), Askari Special Deposit Account (ASDA), Basic Banking Account (BBA), Value Plus and Foreign Currency (FCY) according to their account codes and then arranged them in descending order. She gave me three ledgers i-e; customer ledger, general ledger and online. The receipts according to each transaction are attached to their respective ledgers. Account codes are as follows: Current A/c Saving A/c BBA A/c ASDA Value Plus FCY 01010 01100 01021 01165 01032 0213

Example ACCOUNT NUMBER: 0095-01-165-0001-3 0095 01 = = Branch Code Currency Code

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165 0001 = = Asda Account Account Number of the Asda Account Holder

There are three modes of posting in ledger balance Modes of Posting Cash Clearing Transfer Cash includes ATM entries and cheques in cash payments. Clearing includes cheques that branch received from NIFT. Transfer includes transfer of amount from one branch to another or inter-branch transfer.

Account Opening Department

In the Account Opening Department, Mr. Muhammad Yaqoob was the incharge. Firstly, I have gone through different types of the accounts and the operation of different accounts. There are different requirements for different account. I was asked to observe following activities: Providing account opening form according to the customers requirements (single, joint, partnership etc) Guide the customer about the requirements of the account opening and form filling, Check the forms whether they are correctly completed or not, Preparing checklist and Stamping on the form, Maintaining account opening register, To get the Verification of signature in case of cheque presented before releasing of account opening from SS card is not yet scanned.

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Remittance Section
This section deals with the transfer of money from one branch to another.

Remittance Form Contains The Following Information Date Amount of PO/DD both in words and figures Name of beneficiary Name of city where this PO/DD will be issued and payable Signature and address of applicant

Cancellation of DD The customer gives the written application for cancellation along with original demand draft. The banks cancellation charges are Rs. 100. Check the DD in by drawee bank either unpaid or duplicate has been issued. The bank officer verifies the signature of applicant. Cancellation of DD is recorded in DD issue register. Only principle amount will be refunded If DD is through cash then cash debit voucher is prepared.

Procedure Of Issuance Of Po A printed application form is provided for filling in completely and signing by the applicant. After depositing an amount of pay order and commission of the bank, duly completed and signed by two authorized officers, then it is handed over the applicant and credit order is dispatched to drawee bank.

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Pay Order For this kind of remittance the payer must have the account in the pay order issuing bank otherwise extra charges will be implied. Pay order are more liquid as compared to cheques because cheques may be dishonored while PO cant be dishonored. It is issued within the city.

Clearing Section
In Askari bank M/s Naureen was in charge of that section. I learned following activities while working in this section. When cheque or other instrument is drawn on Askari Bank which is of the other bank, it comes in the clearing department. Points to remember while checking a cheque for clearing: Date Cheque number Account holder name Bank name Amount in words & Figure Clearing stamp Payees account credited stamp

Reasons For Rejecting A Cheque The following can be the reasons for returning a cheque: Payees endorsement required. Drawers signature differs. Cheque is post-dated/stale/ mutilate.(wear and tear) Amount in words and figure differs. Cross cheque must be presented through a bank. Payment stops by the drawer. Not drawn on us. Account close. Insufficient balance

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Lack cancellation of previous stamps Cutting and over writing Cutting and over writing not signed Company stamp missing

Clearing Stamps Clearing stamp It has two parts one is crossing part and other is clearing part Crossing part shows that cheque is the ownership of bank. Clearing part shows that everything is clear and bank has collected payment on behalf of customer. Payees A/c Credited This stamp will be stamped on individuals and companies accounts only but if cheque is in the favor of some bank like Askari bank then stamp will be of cash received.

Customer Dealing Section

In customer dealing section, my duty was to help customers fill the online slips.

Cheque Book Procedure

The cheque book was issued after the opening of account on the request of customer. The request for cheque book goes to Karachi office after that they issue that book by the name and account number of the account holder. This process almost takes 3 to 4 working days. Form A required Requisition slip required Form B required

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Form A This form is used when first time new check book is issued Requisition Slip This slip is required for issuing check book, for those who already used the cheque book now it is finished. Form B In the case when old cheque book or requisition slip is lost then form B is used to issue new cheque book. It is treated as security stationary.

Bank Statement If a person needs to get the bank statement of his account again for this purpose he needs to complete the request form. The application for statement should be submitted at least 1 day before, in some cases the bank also accommodate their client on urgent basis and print their statement at the same time. The bank statement contains all the details of the account holder which shows the amount and all the details when and where transaction is made. If the third party want to receive a bank statement on account of a person who actually hold the account than the third party need to come along with the authority letter issued by the account holder, in which the account holder mention the name of third party with his CNIC number, in order to receive the bank statement.

Lockers
First of all the application form is filled by the customer as well as specimen signature card (S.S). While fulfilling the form, there are three options regarding the operating of locker, these are Anyone can operate Jointly Either or survivor

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Any one In this option if there are more than one person who hold the locker, than any one of them can operate the locker, not all the members need to be there for operating the locker. Jointly In this option if there is more than one person who holds the locker, than all the members need to come to operate the locker, no individual person can operate the locker. Either or survivor In this option if there is more than one person who holds the locker, and any one of them died than the others have the authority to operate the locker.

Trade Foreign Ecxhange Department:

Miss Farzana Raza is the incharge of this department. I have done tagging of the documents. The document of a particular transaction like approval of an LC is arranged according to the steps in order.

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MANAGER WITH WHOM ASSOCIATED; THEIR MANAGEMENT STYLES; STRAINS AND STREESSES; CONFLICTS AND APPRECIATIONS
Mr. Muhammad Jawad Butt
He is the incharge of accounts department. His work is to make sign important documents. He makes the profit and loss statement of the bank. Strains and Stresses During my whole internship I never found Mr. Jawad in any kind of stress. His work is stressful but he has the art of doing things with ease. Most of the time he sit idle. On the whole Mr. Jawad had to do nothing, apart from signing important documents and meeting clients. Conflicts and Appreciations He knew how to please everyone. The way he gives warm welcome to everyone was quite impressive. Despite the fact that he does not work much in the bank yet he seems to be closest to the bank manager.

Mr. Muhammad Yaqoob

He is the in-charge of accounts opening department. He has to deal with the customers directly. His work is to introduce different type of accounts to the customer. Strains and Stresses As he has the direct customer dealing so he has to be at his best with every customer. He also has to judge the customers intentions. This brings a lot of responsibility on his shoulders not to open account for a person who could be harmful for bank in the long run.

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Conflicts and Appreciations I found him helpful and a humble person. He was very considerate for helping others. He was the only one in bank who guided me in a systematic manner which made it easier for me to understand.

M/S Farzana Raza

She is in-charge of the foreign currency and trade department. she is famous in bank for her humble attitude. Strains and Stresses All the time she had lots of work to do, and he never allowed herself to sit ideally and do nothing. She enters the bank straight to her seat and start working. Conflicts and Appreciations She had so much of her own work to do that she didnt even interacted with the internees and explained them her work. The internees themselves have to make a guess about her tasks.

M/s Naureen
She deals with the remittances and clearing department. Strains and Stresses She has a very repetitive job which makes it easy for her. But the task assigned to her does not allow her to sit idle. The whole clearing process makes her busy the whole day. Conflicts and Appreciations She is a hardworking employee but she is so full of herself that working under her means you have to agree to her on everything else she is annoyed.

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APPLICATION OF THE KNOWLEDGE/ SKILLS LEARNED DURING BBIT STUDIES

This internship has completely changed my perception about IBIT. Earlier i wasnt confident about my institute but now I feel blessed to have the privilege of studying in IBIT. Now I realise the worth of IBIT that everybody is not lucky enough to be a part of it, only a few selected ones have the honour. During my internship I noticed that I was quite familiar with most of the terms used by the employees, I knew almost all the processes beforehand and I didnt have to put in a-lot of effort to understand the working of the bank whereas other internees were trying hard to get these things absorbed.

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NEW THINGS LEARNED

The Importance of Punctuality
Working anywhere punctuality is a must. But working in a bank if you are not punctual it means you are annoying your customers. I have seen customers outside the bank waiting for the clock to hit 8:30 a.m.

Sense of Responsibility
Your work place is where you are responsible for what you do. Professionalism has no room for carelessness.

Photocopy and Fax Business environment

I learnt how to work and move around in the business environment.

Friendly relations
I learnt how to keep good friendly relations with your colleagues. How we should cooperate with peers yet keeping an edge for ourselves.

Competitive environment
It was a good experience to learn how we should compete in a healthy competitive environment.

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OVERALL SUMMARY
The comprehensive study of Askari bank helps to suggest the organizational wide plans that determine the long run success of the organization, finding new ways to add value, flexibility, and developing unique skills and ideas to manage people. After analysing one can explain that how a bank can provide diversified products & services to the customers in order to provide them maximum utility. The purpose of Askari bank is to provide professional integrity, customer satisfaction and teamwork. This report is a comprehensive study to know the potential of Askari bank. Askari Bank is one of the leading banks in Pakistan, which is growing rapidly. Banking sector is developing very fast, so there are opportunities in banking sector. Askari bank was incorporated in Pakistan on October 9, 1991, as a public limited company. It commenced its operations on April 1, 1992, and is principally engaged in the business of banking, as defined in the Banking Companies Ordinance, 1962. The bank is listed on the Karachi, Lahore and Islamabad stock exchanges and its share are currently the highest quoted from among the new private sector banks in Pakistan. Askari Bank has since expanded into a network of 235 branches / sub-branches, including 31 dedicated Islamic banking branches, and a wholesale bank branch in Bahrain. A shared network of 4,401 online ATMs covering all major cities in Pakistan supports the delivery channels for customer service. As at December 31, 2010, the Bank had equity of Rs. 16.0 billion and total assets of Rs. 314.7 billion, with 885,764 banking customers, serviced by our 6,442 employees. Askari Investment Management Limited and Askari Securities Limited are subsidiaries of Askari Bank engaged in managing mutual funds and share brokerage, respectively. Askari Bank is committed to develop and enhance each employees skills and capabilities through extensive in-house and external training programs. Productivity of service firm is providing the best service to their customer at low cost. ABL tend to attain the maximum share of the market. It was a great experience to work at Askari bank; the things happening were totally different from what we read in the books. In the period of 6 weeks internship at Askari Bank Allama Iqbal Town Branch, Lahore (0095), I had a chance to have the exposure of how a bank

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undergoes its functions. I tried my best to gain a practical exposure and an experience to plan, develop, present and report and to seek a challenging career oriented position in the field of general banking by using the potential of hard work and professional skills. During my internship I was sent to different departments including Accounts, Credits, customer dealing Account opening, Clearing, Remittances and Foreign exchange/Trade. Account opening department gave me a chance to know about the account opening process and requirements. In customer dealing, I learnt how to satisfy the customers. Remittance department explains different kinds of services provided by the Askari bank. I tried to explain the opening, clearing and encashment process. Accounts department shows all the working of the bank during the whole period. This department prepares the balance sheet, income statement, salary slip of the employees and disburses the salary to the employees. The foreign exchange department provides the detail about the trade of the country the foreign exchange covers imports, exports and foreign currencies. I learnt about LC opening. The foreign currency department shows the currency come in and goes out of the country. Credit department covers all the schemes which the bank offers to benefit the people of the country. At the very end I performed the financial ratio & SWOT analysis of Askari bank to show the actual position of the bank and to find out the strength, weakness and advantages of the bank. By analysing the overall performance I can say that the bank has the potential to get on the top. Although the year 2010 was not a profitable year for the bank but still its past performance shows it will recover this loss. Moreover, this decrease in profitability can be associated with the current economic condition. Its links are expected to be getting better in profit earning sector and profitability of the bank will be improved in the future year. For the year 2006, Askari bank has won the Best Consumer Banking Award 2006 from the consumer Association of Pakistan, the Best Retail Banking Award 2008 from Pakistan Guarantee Export Corporation Ltd. and The Best Corporate Report Award for the year 2008 from the Institute of Chartered Accountants in Pakistan (ICAP), and the Institute of Cost and Management Accountants in Pakistan (ICAMP). That is why people have more trust in Askari bank and they willingly deposite their money. All in all, it was a very good learning; which will be helpful in my career.

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SPECIFIC RECOMMENDATIONS
Organization
Customer care service for the illiterates One way to retain the personal sector customers is to offer a wide range of services such as tax advice, free life insurance equivalent to amount deposited, shares portfolio management, fund management facility, etc., complimentary to the core services. Banks must have a slightly different mix of services and mean of providing these such that customers can choose the mix that suits them best. Marketing departments efforts to market and introduce its product should be improved. There should be proper training for the new employees. Over staffing is quite evident. Job rotation is not exercised due to which the employees are unaware of the problems of their colleagues. Employees are not satisfied with their jobs. The bank should take steps to minimize it through different incentives for the employees. The bank may choose to make its existing products distinctive or to introduce new products. Improvement in the online banking system being currently used especially in the case of the ATM machines to avoid wasting time of customers and frequent breakdown of the machines.

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IBIT - To improve its curricula and methods of teaching to BBIT students
Different seminars should be organized. IT related workshops should be arranged. Department should arrange industrial trips for practical knowledge. Different subject related societies should be created. Different type of competitions should be organized in order to make our students face the outside world. Summer camps of specialization courses i.e., finance, marketing and IT should be offered. As we are the IT students, we should be provided with a computer lab where every student is given a separate computer in a working condition.

INSTITUTE - For the next internship in this organization

Proper orientation should be given. Time to time guidance and evaluation. Short objective oriented tasks should be given.
http://adeelkz.blogspot.com/2009/04/download-internship-report-of-askari.html

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