INTRODUCTION

Established in 1992, backed by Pakistan Army Welfare Trust Askari, Owned By Lt. Gen. Imtiaz Hussain (HIM). Though Askari commercial bank was incorporated in Pakistan on October 9th 1991 as a private limited company. But commenced operations on April 1st 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 exchange and its shares are currently the highest quoted from among the new private sector banks in Pakistan.

BRANCHES

Askari bank has expanding into a nation wide with presence of 130 branches throughout Pakistan and offshore banking unit in Bahrain.

FUNCTIONS
Corporate & Investment Banking

Personal Banking Mortgage Finance Business Finance Travellers Cheques Profit / Markup Rates on Retail Products Internet banking

MONOGRAM OF ASKARI BANK

The monogram of ASKARI has been change in July 2007. The logo was in green and white colour and the word commercial has also been eliminated, although it is a commercial bank but now on monogram only ASKARI BANK LIMITED is written. The colours have been changed from green to white and blue.

ACHIEVEMENT
Over the year, Askari Bank has received several awards for the good quality of banking service to individual and corporate. These include:Latest 1st position in best corporation report award for the year 2008 by ICAP and ICMP Best Commercial Bank(2005) Best Retail Banking In Pakistan(2004-05) Best Corporate Report(2001-4) Corporate Excellence(2002-2003) Best Corporate/Institutional Internet Banking In Pakistan(2004) Best Consumer Internet Bank in Pakistan(2002-4) The Best Bank In Pakistan(2001-02) Best Presented Accounts(1997-2002) Commercial Bank Of The Year(1994-1996) Best Domestic Bank In Pakistan (1995)

FIRSTS IN PAKISTANI BANKING

Over the years Askari bank has proved its strength as a leading banking sector entity, by achieving the following firsts in Pakistani banking. First bank to offer online real time banking on a countrywide basis. The online banking has been started in 1994 in Pakistan. First bank with a nationwide ATM network. First bank to offer Internet banking. First bank to offer e-commerce solution

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.

VISION
To be the bank of first choice in the region

CORE VALUES OF THE BANK

The intrinsic values, which are the corner stones of our corporate behavior, are: CIFTS Commitment The employers commitment to provide good services and being dedicated to their work, it has been vital to its success. Integrity The quality of being honest and having strong moral principles, to be loyal with your bank. Fairness The employee work honestly and proper guidance to the customer without any cost. Team (Together Everyone Achieve More) teamwork to achieve the preset goals.

 Services good services to the customers, without services bank has nothing.

CODE OF ETHICS AND CONDUCT

Each ABCL employee must be fully aware of the provision of the code of ethics. Present day banking serves an important function in the public eye. Maintaining high standards of ethics and services enables ABCL to be perceived as impartial, ethical and independent. Employees must ensure that their actions and conduct protect and promote the reputation and image of the bank. Corporate Culture. It seeks to create an environment where all persons are treated equitably and with respect. where persons rights are respected and where efforts of staff are encouraged and their achievements given recognition Professionalism. Employees at the bank are expected to carry out their responsibilities in a professional manner all the time. Customer relation All employees must ensure that any advice given to the customer is honest and fairly expressed and restricted to only those services or products where the bank has the relevant expertise and authority. Maintaining Confidentiality All employees have a duty to safeguard confidential information which may come to their possession during their day to day work. Respect for customers private affairs merits the same care as does the protection of the banks own affairs or other interest. All employees must sign a declaration of confidentiality and secrecy and must comply with the procedure and regulation. Conflict of Interest. Circumstances should be avoided in which personal interest conflicts with the interest of the bank or its customers.

Personal Investment. Employees must ensure that no conflict of interest arises between their personal transactions and corporate transactions. Employees must never attempt to use their position in bank to obtain an advantage to buy and sell investment. Relationship with Competitor Except in the situation where the bank is participating in a transaction with other banks, no employee shall have any agreement, understanding with any competitor with respect to pricing of services, profit rates and or marketing policies which may adversely affect the banks business. Gift and Entertainment. Gifts, or business entertainment or other benefits from a customer or a supplier/vendor which appear or may appear to compromise commercial relationship must not be accepted by the employee.

CUSTOMER SERVICES
Due to growing competition banks have introduced customer service officers called graters. A grater knows about every department and product of the bank; so if a layman enters a bank he should be directed in the proper way. This is all for the convenience of customer. They communicate with customer through a variety of means by telephone; by email; fax or regular mail correspondence; or in person. Some customer service representative handles general questions and complaints, whereas others specialize in a particular area. Customer service representatives play a critical role in providing and interface between customer and company, and for this reason employers seek out people who come across in a friendly and professional manner. The ability to deal patiently with problems and complaints and to remain courteous when face with difficult or angry people is very important. Also a customer service representative needs to be able to work independently within specified time constraints. Workers should have a clear and pleasant speaking voice and be fluent in English.

ACCOUNT OPENING
TYPES OF ACCOUNTS
These are four types of accounts kept with the bank in local as well as foreign currency. PLS or Saving account Current account Term deposit Basic Bank Account

However Askari Bank offers some more products to their customer that is Askari special deposit account (ASDA) Financial Institutional Special Deposit Account (FISDA)

PLS or SAVING ACCOUNT

As the name implies this account is for the people who want to save their money and this money becomes the important source of fund for the commercial banks. These funds are invested by the bank and earn profit. This profit is shared between bank and depositors. Thats why it is called Profit and Loss Sharing (PLS) account. The main features of PLS saving account (Askari bank) are: All PLS saving account is opened with a minimum balance of Rs. 2500 for individual. Only one account with one name (for individual only), opening of more than one name is allowed in case of minor child. Profit is paid half yearly as the rates declared by the head office after the end of half year. If the balance in PLS saving account fall below 10,000 per month then the bank will deduct Rs.100 per month as service charges.

CURRENT ACCOUNT
A current account is an account, which does not have any limitations with respect to frequency or amount of transaction. A current account is a running account, which is continuously in operation by the customer Minimum balance of Rs 5000 on current deposit. No profit will be paid on current deposit. No zakat deduction.

TERM DEPOSIT
Fixed or term deposit are also the source of funds for the commercial banks. As the name implies fixed or term deposit are deposits kept with the bank for the certain period of time. Features are Deposits under term deposit shall be accepted for the period/term as advised by head office from time to time. Term deposit receipt should be delivered to the customer after obtaining his/her proper acknowledgement on the AOF. The account holder under his/her full signature if any shall authenticate special instruction. No profit shall be payable on encashment before maturity if the deposit has not initially completed one full month. 1.Askari Bachat Certificate ( ABC) Minimum 25,000 and maximum limit Rs 1. Million. 3 year and 5 years maturities with profit payable on monthly basis. Zakat is deducted every year on the principal amount only and is recovered from the profit paid.

Rate of deduction 3 years maturity 7% 5 years maturity 8%

BASIC BANK ACCOUNT/UNIQUE ACCOUNT

Basic bank account is basically has been introduce by the state bank in November 2005. BBA is basically for pensioners, low income, student and retired people For unique account minimum initial deposit will be Rs. 1000. No profit will be paid on BBA No fee will be charged for maintaining the account. Maximum two deposit transaction and two Cheques withdrawals are allowed free of charges through cash/clearing per month from the bank. In case of 3 rd cheque Rs.25 per cheque will be charged. Unlimited free of charges ATM withdrawals from the bank own ATM. In case of withdrawals through the ATM machine of other banks. The respective/other bank may recover such charges for such transaction. Statement of account will be issue once in a year.

ASAKRI SPECIAL DEPOSIT ACCOUNT (ASDA)

Individual, joint account holder and corporation may open the account. Both for businessmen and salaried person, having characteristics of current account expect profit payable. Minimum balance required for Askari bank is 50,000 or as amended by head office from time to time Rate of profit payable will be on daily product basis and computed every month No profit shall be paid if the average balance for a month falls below the lowest limit of 1st tier that is 50,000 8

Zakat and withholding tax shall be deducted as per regulation in the same way as deducted on PLS saving bank account automatically through uni bank.

FINANCIAL INSTITUTIONAL SPECIAL DEPOSIT ACCOUNT (FISDA)

All account of financial institution in Askari special deposit account are called FISDA. Profit will be payable on quarterly basis. All other term and condition as applicable ASDA.

ACCOUNT OPENING FORM

1. first on the green account opening form the customer has to click whether he/she wants to open current/ Askari special deposit/ saving a/c. click on any option and then whether the account will be operate individually, jointly/singly. 2. CNIC no of the customer but in case of foreigner the identity card or passport photocopy will be taken. 3. NTN (National tax Number) if the customer is a taxpayer then the tax no will be noted it is the optional part. 4. Address on which all the correspondence will be sent to the customer. 5. Profession or nature of business must also be mentioned, with written prove of source on income on letterhead. 6. Telephone no, the bank usually prefer the land line nos because the mobile no keeps on changing. 7. Special instruction regarding operation of the account if the account is run jointly then the special instruction must be given either or survival, jointly. 8. Contact no of next of kin in case of need for contact. 9. The signature, name, date and A/C no & branch of the introducer. Itroducer can be account holder of askari bank same branch or any other branch.

10. In the last signature of the applicant. 11. Thumb impression for opening purpose Male Female left hand thumb impression right hand thumb impression

KNOW YOUR CUSTOMER

In view of recent heightened global efforts to prevent the possible use of the banking sector for money laundering, terrorist financing, transfer of illegal/ill-gotten monies, and as conduit for white collar crime etc., the importance of Know Your Customer (KYC) / customer due diligence has increased. In line with the international best practices, as also to ensure transparency in banking transactions while starting relationship with a new customer and maintaining and continuing relationship with existing customers, the following minimum guidelines are required to be followed by banks.

SPECIMEN SIGNATURE CARD

The account holder will sign on specimen signature card. It will be scanned and after scanning it will one of the major sources of sign verification.

ATM FACILITY
If you as a account holder want ATM facility then ATM form is filled with charges of Rs.500 deducted once then Rs.200 per semiannually.

UNDERTAKING RESPECTING DIFFERENCE IN SIGNATURE

In case signature in CNIC differed from that signature on account opening form, undertaking with above mentioned heading is signed.

ACCOUNT NO
480101023670.seems like one no but actually it consist of four parts 1. 48 represent branch code.

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2. 3.

01 serial no. 010 represent type of account (010 current account, 021 BBA, 100 PLS, 165 ASDA).

4.

23670 actual account no.

A FORM
For the first time chequebook is issued against A FORM then against slip of last used chequebook.

B FORM
In case of slip loss B FORM is filled for new cheque bookers. Rs.500 are charged against slip loss, B FORM issuance and processing.

ISSUANCE OF CHEQUE BOOK

1) (in case of slip loss) 2) party receiving book. 3) 4) 5) CD 25,50,100 leaves (per leave Rs.5) PLS 25,10 leaves BBA 10 leaves Verify signature and check written authority in case of third Take slip, A FORM (in case of first time issuance), B FORM

DORMANT/IN-OPERATIVE ACCOUNT
The CD/ASDA/FAIDA has been dormant after 180 days and become in-operative after 1095 days.PLS/Value Plus/SB become dormant after 365 days band in operative after 1095 days. For re-activation, form is filled with a copy of CNIC with no charges.

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REMITTANCE
Remittance means transfer of funds from one place to another. Now a days remittance is considered as one of the important functions of commercial banks. The transfer of money is required, not only by the business community but also needed by general public. Commercial bank earns a reasonable amount of commission, through providing remittance facility to public. TERMS AND CONDITIONS The bank is allowed to charge commission and service charges. The bank is not allowed to appoint another body to be involved in the transaction without approval from principal. Payment instruction from remitting bank must be adhered to, failure to do so may render the bank liable to the original drawer for any loss incurred.

MODES OF INLAND REMITTANCE DEMAND DRAFT

Demand is a written order to pay money drawn by one branch of a bank upon another branch of the same bank, for a sum of money payable to order (of a specified person) on demand. Purchases, Drawing branch, Drawee branch, Payee are involved in DD. Very safe, Secure and provide easy mobilization of funds ISSUANCE OF DEMAND DRAFT Remittance application form is filled up and signed by the purchaser. First signature on upper coloumn are obtain as applicant; while 2nd signature on lower column is obtained as an acknowledgment of having received the DD. Thumb impressionae not acceptable on the application form. Incase of an illiterate account holder, he is allowed to affix thumb impression under which his account number is mentioned. REQUIREMENT OF DD

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Filling remittance application form Incase of illiterate affix thumb impression along with A/C no Correct name of the drawee and payee branch Amount in words and figures should be same. In case of non-customer full address of the purchases must be given on application form.

DD can be issued again cash as well as against cheque; cheque should be crossed and posted in applicants (purchases) A/C.

ISSURANCE OF DEMAND DRAFT AGAINST CASH Before making the DD against cash for non-customer account holder, it must be insured that the purchaser has deposited the cash, the cashier has affixed the received cash stamp on the application form, and the voucher is entered in the receiving cashier Book. PAYMENT OF DD Upon receipt of IBCA at the Drawee Branch, following point must be taken into consideration. IBCA (inter branch credit advice) pertains to the drawee branch. Authorized officers duly sign advice. If amount of IBCA id Rs.25, 000/= or above it is tested and test should agree.

CANCELLATION OF DEMAND DRAFT The purchaser has to give an application in writing duly signed by him. The original DD must be surrendered together with this application.Signature of the purchaser is verified through DD application form. The original DD is checked on the following ground. It is not fake or counterfeit DD It is not negotiated (no endorsement) is/are appearing on the reverse of DD

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Duplicate of the same has not been issued.

The amount of DD is refunded; commission and other charges recovered at the time of issuance are not refunded. CHARGES ON DD
a) Issuance of drafts and TT up to Rs. 100,000 Rs. 100,001 to Rs. 1,000,000 Over Rs, 1,000,000 b) Cancellation of DD c) Issuance of duplicate DD Rs. 225/- 9(flat) Rs. 225/- Flat 9 in lieu of lost) 0.11%...Minimum Rs.55/0.08%.........Minimum Rs.225/0.06%.........Minimum Rs 1,100/-

TELEGRAPHIC TRANSFER (TT)

Telegraphic transfer (TT) is one of the fastest modes of transfer of funds; in ACBL fax is used for the transmission of message. REQUIREMENT FOR THE ISSUANCE OF TT Full name of a/c payee along with his account number, if mentioned at the drawee branch, or his complete address along with his contact number. Correct amount both in words and figures Purchaser has signed the application form at the prescribed place. In case the remitter being an account holder his account number is mentioned. If he is not an a/c holder then his full address is recorded in the application form. PROCDEURE FOR ISSUANCE OF TT TT can be issued against Cheques, cash and customers debit authority and the procedure is the same as that of DD. TT is faster than DD.

PAY ORDER
Pay order is a written order issued by a bank or its branch, drawn upon and payable by itself, to pay a specified sum of money to or to the order of a specified person. Pay order is an order instrument capable of being transfer by endorsement coupled with

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delivery.Pay order is issued against all the three modes(Cash, Cheques, against debit authority) PAYMENT OF PO IN CASH When an uncrossed pay order is presented for encashment, following points are checked Pay order is not stale one Payee has signed on the reverse of the pay order. His signature has duly signed.

CANCELLATION OF PO On receipt of application along with the pay order for cancellation, the signature of purchaser is verified form the original application form. Before the pay order is cancelled it is ascertained that no duplicate pay order has been issued. The portion of pay order having signature of issuing officers is torn out and remarks across the pay order as cancelled should incorporated by the authorized officers under their signature.

RUPEE TRAVELERS CHEQUES (RTC)

RTC is a negotiable instrument and is transferable. MCB float it first. RTC is drawn by the bank for round amount of money and is payable at all the branches of the issuing bank in the country. Other branches can pay it if the issuing bank makes such arrangement with them. FEATURES OF RTC Free issuance & free encashment Account relationship with ACBL is not mandatory Easily transferable with single signature only Encashable at all the branches of ACBL

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Valid until encashment Easily transferable incase of loss/theft.

ISSUANCE OF RTC: Branches are required to issue RTCs in sequential order and is signed by the attorney holder officer on the face of it permanent ink, in addition to the printed signature of the president of the bank.

BENEFIT FOR THE BANK BY THE ISSUANCE OF RTC If the customer kept RTC for 1 month the bank pay interest of 0.2%. no RTC can be encased on the issuance day. So as the RTC has been floated the bank can earn the profit from the cashCHEQUES A cheque may be defined as a written order of a depositor upon a bank to pay to or to the order of a designated party or to bearer, a specified sum of money on demand. Drawer: The person who draws the cheque is called drawer. Drawee: The bank on which the cheque is drawn in called drawee Payee: The person to whom payment is to be made is called payee. CHARACTERISTICS OF CHEQUES The main characteristics of Cheques are as follows: It is an order of the customer without condition. It is drawn upon a certain bank in writing. The banker has always to pay it on demand. It is payable to a certain person or to his nominee or to the bearer of the instrument.

TYPES OF CHEQUES
1. Open Cheques. Open Cheques are those Cheques, which are paid across the counter of the bank. Open Cheques may be bearer or order. 16

a) Bearer Cheques: If a drawer orders the bank to pay a stated sum of money to the bearer, it is called a bearer cheque. Any person who lawfully possesses a bearer cheque is entitled to receive payment of that cheque. b) Order Cheques: If a cheque is to the order of a person in whose favor the cheque is drawn. It is called order cheque. The order cheque is paid by the bank only when the bank is satisfied about the identity of the payee. 2 Crossed Cheques: If a cheque is crosses by drawing two parallel lines across the face of the cheque, with or without the & Co or A/c payee only, it is called a crosses cheque. The crosses cheque cannot be paid on the counter of the drawee bank. It will be deposited in the account of a person in whose order or favour it is drawn.

CROSSING
Two crosswise parallel lines on the Cheques and because of these lines the Cheques will not be paid at the counter. Account of the depositor or order will be credited.

TYPES OF CROSSING
1.General Crossing: When some specified wordings are written between these two transverse lines then this becomes general crossing. These wording could be: Payees A/c only, A/c only, & Co, Not negotiable,

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Payments of such Cheques will be deposited in the payees account only. 2. Special Crossing: A cheque is deemed to be crossed specially when it bears across its face the name of the banker either with or without the words Not Negotiable In case of special crossing the payment can be made to the bank named therein the cheque.

CLEARING
The word clearing has been derived from the word clear and is defined as a system by which banks exchange Cheques and other negotiable instrument drawn on each other within a specified area and thereby secure payment for their clients CHARGES 1) Inward clearing (Rs.250) 2) Outward clearing (Rs.50) 3) Intercity Return (Rs.275) 4) Same Day clearing (Rs.300) At first clearing was done through clearing house presented in the state bank in which representative of the banks were present. All the clearing has been done through NIFT (National Institutions Facilitating Technology)

1. OUTWARD CLEARING

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The Cheques delivered to the representatives of other banks for clearing are called outward clearing. Outward clearing is further divided into following two categories, 1) 2) Same Day Clearing Intercity Clearing

In case of same day clearing following are requirements 1) 2) Amount must be greater than equal to 500,000 Bank must be in specified limit as determined by NIFT. When customer deposits Cheques of other bank Cheques are drawn on other banks E.g. HBL

Deposit slip is separated from the Cheques

Outward bills for Collection

Cheques is send through NIFT for clearing

2.INWARD CLEARING
Cheques received from the representative of other banks for payment are called inward clearing.

When customer makes Payment through cheque

Cheques drawn on ACBL are used for instance

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HBL presents the Cheque through Clearing to ACBL

Payees deposit the cheque in his/her a/c with his/her bank e.g. HBL

REFERENCES
1. Training manual of Askari Commercial Bank Ltd

2. General Banking Manual of Askari Commercial Bank Ltd

3. Credit Manual Of Askari Bank

4. Most Of the Information was Provided by Senior Officers

5. www.askaribank.com.pk

6. www.wikipedia.com

7. www.google.com

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8. www.altavista.com

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