OBJECTIVITY OF REPORT

I, as student of BBA (Hons.) at Kinnaird College, Lahore was assigned to do Internship in any organization as per degree requirement. I got an opportunity to do internship at Askari Bank Limited for six weeks and at the end prepared this report. The essentials of this report include firstly, the Banks profile, Vision, Mission Statement etc, management system and department details as well as its products and services. Then, the most important part of this report is about the tasks performed by me at Askari Bank Limited as an intern. Finally, Recommendations and conclusion are given according to the perceived evaluation.

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DEFINITIONS OF BANK
ACCORDING TO BANKING COMPANIES ORDINANCE 1962 Banking means the accepting for the purpose of lending, or investment, of deposits of money from the public, repayable on demand or otherwise, and withdraw able by cheque, draft, order or otherwise. (1) Banks do business of money. Rather banks do business of lending and borrowing loans. (2) Banks are guardian distributor of cash money (3) Banker or a bank or a person or company carrying on the business receiving moneys and collecting drafts for customers subject to the obligation of honoring cheques drawn upon them from time to time by the customer to the extent of the amount available on their current accounts. The name bank is derived from Latin word banchomeaningdesk/bench, used During the renaissance by the Florentines bankers, who used to make transactions above a desk covered with a green table cloth. The first modern bank was founded in Italy in Genoa in 1406; its name was Banco di San Giorgio (Bank of St.George). The word bank can be traced down to the ancient Roman Empire, when money lenders would set up their stalls in the middle of an enclosed courtyard called macella on a long beach called bancu.

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INTRODUCTION ABOUT BANKING SECTOR

Word Bank is said to be derived from the words Bancusor Banque that means a bench. Other authorities hold the opinion that the word Bank is derived from the German word Back which means joint stock fund. Later on, when the Germans occupied major part of Italy, the word Back was Italianized into Bank(Aslam, 1999)It is therefore, not possible to decide as to which of the opinions is correct, for no record is available to ascertain the validity of any of the opinion. Banking is the business of providing financial services to consumers and businesses. The basic services a bank provides are o checking accounts, which can be used like money to make payments and purchase goods and services o savings accounts and time deposits that can be used to save money for future use; o loans that consumers and businesses can use to purchase goods and services; and o basic cash management services such as check cashing and foreign currency exchange.

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ANALYSIS OF BANKING SECTOR IN THE PRESENT DECADE

The Banking sector, which was fully dominated by Nationalized Commercial Banks (NCBs) until a few years ago, has been opened up to the private sector. Four of out five largest NCBs have been privatized. While the ownership and management of the banks by private sector is one pillar of the reforms, the other pillar is a strong regulatory environment. Private banks are prone to taking excessive risks in their lending as their own capital is much lower in relation to the depositors money. It is the responsibility of the central bank as a regulator to be extremely vigilant and take prompt timely action to prevent the bank managers and owners from assuming excessive risks. The Central Bank in Pakistan has strengthened its capacity by acquiring new skills, upgrading the quality of the existing human resources base, adopting technology and re-engineering business processes. The banking regulation and supervision are risk-based and are fully compliant with the international standard sand codes prescribed by Basle Committee. The financial soundness indicators show a healthy and sound banking system with high degree of financial stability. Along with strong regulation, supervision and enforcement, a number of measures have been taken to put best corporate governance practices in the

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system by prescribing fit and proper criteria for Chief Executives, members of the Boards of Directors and top management positions. Accounting and audit standards have been brought to the International Accounting Standards (IAS) and the International Audit Codes. External audit firms are rated according to their performance and track record and those falling short of the acceptable standards are blacklisted The banking sector has now diversified its product base and carried out a lot of innovation. They have expanded their outreach to agriculture, SMEs, mortgage financing and consumer financing. Not only that this diversified lending portfolio mitigates risks but it also raises the purchasing power of a large segment of population that was completely shut out from credit markets. Pakistans auto industry has expanded its car production by a multiple of five times in the last four years as auto financing enabled a vast number of middle class income earners to purchase the cars on monthly installments.

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ASKARI BANK LIMITED: AN OVERVIEW OF ORGANIZATION

20 years of banking
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 Banks shares are listed on Karachi, Lahore and Islamabad stock exchanges. Askari Bank has since expanded into a network of 245 branches / subbranches, including 31 dedicated Islamic banking branches, and a Wholesale Bank Branch in the Kingdom of Bahrain. A shared network of 5,319 online ATMs covering major cities of Pakistan, internet banking (i-net) and call centers operating on 24/7 basis supports the alternate delivery channels for customer service. As at December 31, 2011 the Bank had equity of Rs. 17.8 billion and total assets of Rs. 343.8 billion, with 919,096 banking customers, serviced by our 5,994 employees. Askari Investment Management Limited and Askari Securities Limited are subsidiaries of Askari Bank primarily engaged in managing mutual funds and share brokerage, respectively.

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INTRODUCTION OF ASKARI BANK ARMY WELFARE TRUST

Being a subsidiary business unit, Askari Bank Limited is powered by Army Welfare Trust. Army Welfare Trust enjoys a unique and proud history. The Pakistan Armed Forces have established several organizations for running industrial and commercial enterprises. These organizations provide employment creating job opportunities for others. for ex-servicemen, besides

These organizations include Army Welfare Trust (AWT), Fauji Foundation and Shaheen Foundation. Army Welfare Trust has established a reputation as a leader in the corporate sector. Its story is that of perseverance, innovation, business acumen and going beyond the frontiers in agriculture, cement, pharmaceuticals, leasing, insurance, banking, energy, information technology and many other diverse fields.

VISION
To be the bank of first choice in the region.

MISSION
To be the leading private sector bank in Pakistan with an international presence, delivering quality service through innovative technology and effective human resource management in a modern and progressive organizational culture of meritocracy, maintaining high ethical and
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professional standards, while providing enhanced value to all our stakeholders, and contributing to society.

NAME, LOGO AND INTERPRETATION

The management and board of directors of the bank decided to change the name of the bank from Askari Commercial Bank Limited to simply Askari Bank Limited. This was for multiple reasons Firstly, the bank was generally referred to as "Askari Bank". Secondly, in the current scenario, the word "commercial" has become redundant since all banks are commercial banks. The change of name presented an excellent opportunity for a fresh new look for the bank, which would be a reflection of the bank's desire to continue to evolve with and adapt to the changing environment and dynamic consumer needs. A: Simplicity in Design The typefaces used for the logo are simple yet elegant. Without being overly stylish, they make a solid statement about the bank, its approach to business while maintaining the most critical aspect of any logo's design: readability. This is loosely defined as the ability of any text to be readable and recognizable at first glance. The new "Askari bank" logo is distinctive and can be recognized instantly on sight. The use of all lower case letters and the use of "Askari" and "bank" as one word gives the logo a unique identity, enabling it to stand out from the crowd

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B: The colors Change and evolution being the key driving elements of the new brand identity, the colors of the bank have been revisited completely. The new colors are blue and grey, with a touch of orange/yellow. Understanding this selection needs a basic study of color psychology. Blue is the color of peacefulness, loyalty, productivity and strength (or solidity). It is a color that induces positive emotions in the human body and its effects on productivity, even human strength, have been documented. Body builders work in blue rooms to be able to lift heavier weights. The second color used is a dark grey. This is the color of elegance, respect, wisdom and balance.

Darker shades of grey are said to be more representative of the properties of the color black, which are modernity, power, sophistication and wealth. However, by being grey and not black, it avoids the connotations of death, fear, etc. The last two colors, orange and yellow, are used in a combination which is representative of a rising sun. The colors themselves, aside from the positive connotations of a rising sun, carry the joint properties of sunlight, joy, happiness, hope, wealth, energy, enthusiasm. C: The stylized "AB" Evolution, not revolution, is a key in the development of a brand. The stylized AB, presented in 3D and in the new brand colors, is a solemn nod to
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the outgoing logo design, which has served the bank very well for the first 15 years of its existence. Retaining this icon maintains the recognition of the old logo, while also creating a positive link between the past, present and future of Askari bank.

WEBSITE
Detailed corporate information together with this annual report, product and service offerings along with contacts of branches / offices can be accessed at the Banks website: www.askaribank.com.p

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PRESENT STATUS OF ASKARI BANK

Askari bank is the only bank in the world run by an army; serving Adjutant General of Pakistan Army being head of the Board of Governors Askari Bank has expanded into a network of 226 branches, including 31 dedicated Islamic banking branches, and a wholesale bank branch in Bahrain. A shared network of 4,173 online ATMs covering all major cities in Pakistan supports the delivery channels for customer service. Since inception, the bank has concentrated on growth through improving service quality, investment in technology and people, utilizing its extensive branch network which includes Islamic and Agricultural banking. It has been successful in providing commercial banking facilities to its customers and has developed a good reputation among Pakistani Banks. In the coming years, Bank plans to open a number of new branches to ensure that its customers get benefit in the form of extended branch network and comprehensive product and services. Over the years the management has succeeded in establishing an ideological base for the employees to build the bank upon customer loyalty, provide service with dedication and development of a wide range of products for the customers to choose from.

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Where the bank stands today financially, is depicted by following chart

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BUSINESS INITIATIVES
Bank strives to enhance its product range through product innovations and enhancements. During the year a significant headway has been made towards completing the institutional arrangements for branchless banking initiative (mobile phone banking) which is planned for launch in the ensuing year. Banc assurance product was launched in 2010 in collaboration with a partner Eastern Federal Union (EFU) Life Insurance Company gained momentum during the year 2010-11. The bank aims to further enhance performance standards through

implementation of innovations in products by discovering new avenues of clients benefit. This customer focused strategy has enabled Askari Bank to evolve as a single source financial service provider of corporate and retail banking services and regarded highly by its customers. FLEX CUBE SOFTWARE: Askari bank is using FLEX CUBE software to do banking transactions. As we know that in banks numbers of transactions are made in a day. To have a proper record and to control the activity bank needs this software.

GROWTH
"There is no sin punished more implacably by nature than the sin of resistance to change Askari bank live in a moment of history where everything is changing so fast that it begin to see the present only when it is already disappearing

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Banks customer needs are changing and their expectations are growing. Technology is fast proliferating the distribution channels and now banking services can be accessed from multiple contact points. Askari believe that balanced growth is the key to survival in today's global banking environment. From a humble beginning with just 7 branches in 1992, today Askari enjoy a network of more than 150 outlets in Pakistan, spread across the country. A network of self-service ATMs supports these outlets. Banks total assets now exceed Rs.50.9 billion and have over 17 products and services to match customers individual needs. Bank's equity base stands at Rs. 2.58 billion with 20%growth over the last 5 years. The human resource capital of the bank today exceeds 1,200employees. As part of bank growth strategy, Askari bank is now extending its banking services to the remote and rural areas.

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BRANCHES

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ORGANIZATIONAL MANAGEMENT CHART

Chairman

Board of Directors

Chief Executive Officer

Executive Committee

Executive Incharges

Area Manager North

Area Manager South

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MANAGEMENT STRUCTURE
Askari Bank is proud of its human resource, as almost all the employees have been handpicked by the management. However, in this section, I would discuss those people who are responsible for hiring such a bright staff and establishing a magnificent bank. These are the higher management of Askari bank limited.

THE CHAIRMAN: Lt Gen Javed Iqbal

PRESIDENT AND CHIEF EXECUTIVE OFFICER: Mr. M. R. Mehkari

BOARD OF DIRECTORS: Lt Gen (R) Tahir Mahmood Malik Riffat Mahmood Mr. Zafar Alam Khan Sumbal Dr. Bashir Ahmad Khan Mr. Ali Noormahomed Rattansey, FCA Mr. Shahid Mahmud Mr. Muhammad Riyazul Haque Mr. Wazir Ali Khoja Khawaja Jalaluddin Roomi Mr. M. R. Mehkari

AUDIT COMMITTEE: Dr. Bashir Ahmad Khan

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Mr. Ali Noormahomed Rattansey, FCA Mr. Wazir Ali Khoja Khawaja Jalaluddin Roomi

CHIEF FINANCIAL OFFICER: Mr. Saleem Anwar, FCA

COMPANY SECRETARY: Mr. M. A. Ghazali Marghoob, FCA

AUDITORS: KPMG Taseer Hadi & Co (Chartered Accountants)

LEGAL ADVISORS: Rizvi, Isa, Afridi & Angell

SHARIAH ADVISOR: Dr. Muhammad Tahir Mansoori

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: webmaster@askaribank.com.pk

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REGISTRAR AND SHARE TRANSFER OFFICE: THK Associates (Private) Limited Ground Floor, State Life Building No. 3, Dr. Ziauddin Ahmad Road, P.O. Box: 8533 Karachi-75530 Tel: (92 21) 111 000 322 Fax: (92 21) 35655595

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ORGANOGRM OF ASKARI BANK LIMITED

BOARD OF DIRECTORS

Executive Committee

Internal Audit

President and Chief Executive

Corp. Banking & Fin. Inst. Group

Operating and credit group

Regions Rawalpindi/ Islamabad North

Retail Banking Group

Credit Cards

International

Credit Electronic Technology Systems and Operations

Asset Products Investment products

Planning and Corporate affairs Human Resource

Treasury Corporate and Merchant Banking

Finance Lahore

Data Reporting

East

Legal Affairs

South I

South II

West Page 20 of 51

ASKARIs OPERATIONAL DEPARTMENTS

The general banking department is the one which deals with the general banking operations and activities that are mostly routine work on daily bases. It can be further sub divided into the following departments A. Account opening department. B. Clearing department C. Remittance department D. Accounts department. E. Cash Department. F. IT Department

A: ACCOUNT OPENING DEPARTMENT

This is the fundamental department that not only performs the fundamental and basic operations but also deal the new as well as the retained clients of the bank. Main Duties: It opens the accounts. Various information regarding account opening and account type are also given here. It deals in the lockers issuing and regarding information. It issues the Cheque Book and regarding issues. It deals in issuing and handling various matters regarding ATM, Debit cards and Credit cards. Very often, customers are given little services like assisting in filling form, filling various deposit slips etc.

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It also engages in record keeping of all the above mentioned activities.

Some of these activities are quickly updated at the bank intranet

B: CLEARANCE DEPARTMENT
CLEARING DEPARTMENT Meaning of 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 instruments drawn on each other within a specific area and thereby secure payment for their clients through the Clearing House At specified time in an efficient way. 1. Since clearing does not involve any cash etc. and all the transaction

take place through book entries, the number of transaction can be unlimited. 2. No cash is needed as such the risk of robbery, embezzlements and

pilferages are totally eliminated. 3. As major payments are made through clearing, the banks came

manage cash payments at the counters with a minimum amount of cash in vaults. 4. 5. A lot of time, cost and labor are saved. Since it provides an extra service to the customer of banks without

any service charges or costs, more and more people are inclined and attracted towards banking.

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CLEARING HOUSE: It is a place where representatives of all banks sit together and interchange their claims against each other with the help of controlling staff of State Bank of Pakistan And where there is no branch of State Bank of Pakistan the designated branch of National Bank of Pakistan act as controlling member instead of State Bank of Pakistan.

C: Remittance Department
First we have a look at definition of remittance that is given below Remittance is transfer of funds from one place to another or from one person toanother.This is important service provided by banks both to its account holders as well as non-account holder. It is also income generating source for bank. The unique distinction of this department is that it works for the clearance of outside the city instruments presented by the clients or any banks branch from outside the city. Then it makes the relevant remittances.

D: ACCOUNT DEPARTMENT
The most important task of this department is the maintaining and keeping eye at records of past day activities that are taken place in the bank. An important thing that takes place here is the daily verification and matching of various transactions from their physical slips against the computer generated reports. These reports are continuously updated by the bank intranet and finally at the end of banking day, they are printed. their physical prove are match to the computer generated report and save it
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as a physical that these transaction are take place in the bank. It is for this reason that accounts department is sometimes termed as the backbone of bank. A Second very important function of account department is that it is responsible for budgeting and also record daily expense incurred by the bank and its employees. The account department is also engaged with correspondence with head office and other branches. Also it is responsible for making statements like expenses, taxes etc. The reports generated by this department may be daily, weekly, monthly, quarterly, semi annually as well as annually. It depends upon the nature of activity. However mostly simple activities required daily reporting.

E: CASH DEPARTMENT
This is the most important department. It deals with the physical movement of cash in a bank. Cash is either deposited by customers in the bank or is withdrawn by them. It also has to balance the debit side with credit side at the end of the day. When a person wants to deposit amount in his account, then he has to fill a deposit slip. The deposit slip is very simple in its format. The customer has to fill his name, account number and finally the amount to be deposited is to be mentioned both in numbers and words. In some cases, the customer is said to narrate his address, national identity card number and cell number at the back of slip. Often the customers are given assistance in slip filling either by internees or relevant employees. The deposit slips in Askari Bank vary to bit extent for current and saving accounts. In case the customer gives cheque to draw certain amount, then the customers account will be debited and money is paid to the customer.

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F: I.T DEPARTMENT
This department is also of much importance in daily banking activities. As we know that this is the era of information technology, so having up-to-date and state-of-the-art technological infrastructure is of keen importance for banking sector.To meet and face the challenging competition and to make competitive edge. Askari Bank has renovated its infrastructure with the latest technological equipments and tools. The main activities of IT department are Maintain and ensure the proper working of LAN. Keep maintenance and ensure proper working of all computers within the branch Verification of N.I.C online for the purpose of account opening. Computerize record keeping of Accounts. Generate report of daily transaction in the bank.

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FIELD OF ACTIVITIES
During my internship in askari, I noticed that the bank basically works under three groups named as 1) Corporate banking and financial institutions group 2) Retail banking group 3) Operations and credit group.

1-CORPORATE GROUP

BANKING

AND

FINANCIAL

INTITUTION

This Group is responsible for serving the needs of large corporate clients in public and private sector, managing correspondent banking relationships and undertaking money market transactions. The Group is organized in three divisions namely Corporate and Merchant Banking Division, International Division And Treasury.

CORPORATE AND MERCHANT BANKING DIVISION: This Division is engaged in provision of financing facilities to large corporate clients including multinationals. Principal activities include syndicated loans, guarantees, and working capital finance, underwriting and advisory services. The Division has played an important role in providing development finance for the modernization and expansion of the country's core industries. Credit risk is well diversified with exposures in sectors like fuel & energy,
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chemicals, textiles and fertilizers. Three units have been set-up at Karachi, Lahore and Rawalpindi for sales and operations, which are supported by centralized marketing from the Head Office. INTERNATIONAL DIVISION: Mainly responsible for managing correspondent banking relationships and planning overseas operations, the Division plays a vital role in extending foreign trade transactions support to the branches. The Bank became a member of SWIFT in the Year 2000 and is also a contributor to the equity of Pakistan Export Finance Guarantee Agency Ltd With a network of 167 correspondents spread over 95 countries worldwide. The Bank continued to reinforce its leadership position in trade finance, transacting business of over Rs. 70 billion, during this year. Through the concerted efforts of this Division, it is a participating Bank under the "Pakistan Trade Enhancement. Facility" of the International Finance Corporation, and our customers are entitled to avail of the "Political Risk Guarantees Scheme" extended by the Asian Development Bank.

TREASURY: It is responsible for managing Banks liquidity and foreign exchange transactions. The treasury of Askari bank is one of the most active in the market. Through reported transactions, purchase of Government paper and foreign exchange trading, the Division adds substantially to the Bank's sustained earnings.

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2-RETAIL BANKING GROUP

Retail banking group was formed in 2000, this group is responsible for serving the needs of the retail market. Focusing on individual consumers and small and medium size enterprises, for purpose of product differentiation, the group is managed in three business arms. Investments products unit, Asset products unit, And the credit cards division.

INVESTMENT PRODUCTS UNIT: Responsible for developing and managing brands which serve the

investment needs of the consumer market, this unit focuses on deposit mobilization, provision of value added services based on modern technology and undertaking the centralized marketing and advertising for the Bank. This unit is also actively involved in the acquisition business and has signed-up over 300 merchants nation-wide which offers shopping discounts to the Bank's Privilege Card members. Askari Bank's Value Plus is a unique deposits account, which offers handsome monthly profits, accidental insurance cover, partial liquidity on all time deposits and free Privilege Card membership. The Unit is also administering the sales and distribution, including arrangement for strategic partnership alliances for Askari- i-Net Banking, the first internet banking in Pakistan, which allows routine banking transactions from anywhere in the World, round the clock, over the internet. ASSET PRODUCTS UNIT: This Unit is engaged in the development and management of retail credit schemes. The consumer market in Pakistan has not only grows exponentially
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over the last decade or so, but the needs of this segment have become extremely diverse. In order to sustain competition, it is but imperative to continue offering innovative consumer credit schemes. With the launch of Askari Bank's Personal Finance an Askar (auto-loans), this unit is emerging as a significant contributor to the Bank's loan growth. The unit also administers the first e-commerce banking solution in Pakistan, under the brand name ASK-IBL online. This is a b2b automated credit transaction module, offering merchandise credit to retailers on goods purchased form one of the largest distributors n the country. Strong collection and prudent risk management policies have restricted delinquencies to very low levels. CREDIT CARDS DIVISION: This Division manages Askari Master Card brand and is headquartered at Karachi. With a new fully automated transaction processing system, the brand was re-launched in 2001, supported by an aggressive advertising campaign and strong sales team network. The product now has portfolio of nearly 20,000 cards, in less than one year. The brand is accepted worldwide and over 3,000 locations in Pakistan.

3- OPERATIONS AND CREDIT GROUP

A support function group is mainly responsible for development of systems and procedures, process re-engineering, automation and credit management. The group is organized in three divisions, System and operations division Electronic technology divisions And the credit division
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SYSTEM AND OPERATIONS DIVISIONS: This group has been instrumental in development of procedures and manuals for various operating requirements of the bank. After careful mapping of the existing process flows, the division recommends automation and re-engineering requirements to improve transaction efficiencies. The division is active in providing equipment procurement support and development of new branches. The protection of fixed assets of the bank is also managed by the by this division, as directs function. During year 2001, the division has proposed several cost cutting initiatives based upon improvement of our existing procedures and documentation reduction. Seven new branches have been opened during this year i.e. 2011. The division successfully implements the model branch concept during 2001, which has been proved to be a milestone towards improving our customer service standards and achieving process uniformity with optimum resource utilization. ELECTRONIC TECHNOLOGY DIVISION: This division operates as the backbone for all operational functions in the bank. Responsible primarily for the development of banking software and provision of computer hardware to all business units, the division also engaged in the development of technology based value added customer service products. The division has helped the bank in playing the pioneering role in offering Internet banking service e-commerce solution and on-line banking. The division provides online real time branch connectivity and has fully-automated transaction processing support programmers in the place. The division is focusing on use of data-warehousing technology to enhance the relationship management program of the bank.

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CREDIT DIVISION: Providing extensive support to branches for credit administration, control and monitoring, the division has played a pivotal role in helping the bank achieve a remarkable loan It shows a growth of 31%, with well diversified risk exposures. Most of the loans are of short -term trade financing on a secure and self-liquidating basis. The division has a special assert management team, which is responsible for ensuring low ratio of bad debts, effective monitoring of delinquent advances and close follow-up of recoveries. Bank's head office credit committee, reviews the credit quality and pricing on regular basis not only to ensure healthy credit growth but also the management of bank's risk assets in almost prudent and profitable manner. Taking into account the expanding branch network and the increasing customer base, credit administration was strengthened by decentralizing the delegation of lending authorities at the regional and area management level. The decentralization has benefited the bank and its customer tremendously as the new arrangements now provide for faster credit delivery, focused credit development, and more effective monitoring and controls. Further steps are being taken to streamline credit appraisal procedures and training to credit officers at all levels.

HUMAN RESOURCE DIVISION

Strategically, perhaps the most important division at the head office is responsible for human resource management, including recruitment staff

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training and evaluation. The division also handles matters relating to administration. This division operates on future oriented strategy focusing on employees personal and professional growth. Staff development activities are geared to enhance their capabilities for applying the knowledge and facts towards development of develops and groom their practical situations. Under its human resource management policy, Askari bank management personal for positions of greater responsibilities analytical, interpersonal, conceptualized and specialized skills to enable them understand cause-and-effect relationships and to think logically. Staff is given on the-the -job as off-site training in diverse areas of banking and management. Hiring philosophy is based upon meritocracy and selecting the right person for the right job. They lay greater emphasis on employees honesty and integrity besides technical competence. Candidates are selected through well defined and systematic selection procedure.

FINANCE DIVISION
Responsible for bookkeeping and accounts, this division at head office, prepare all financial return and the MIS through its management-reporting wing. The division is actively involved in preparing market comparative analysis, consolidation of bank's budgets, its monitoring and constant review of various financial indicators. Finance division works as the backbone for the bank's operations. The division, which reports directly to the president and chief executive of the bank, has been instrumental in preparation of banks business plans and future strategies. The budgetary performance are constantly reviewed and
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through a sophisticated " monthly performance report which is a computer based program, the division provides feed back to the senior on strategic issue like reasons for budgetary variance and methods to arrest negative performance factors. Preparing the bank's annual accounts and coordinating external audit is also a direct function of the finance division. Through the dedicated efforts of staff at this division, the bank has been winning various awards foe the best presentation of the annual accounts and also the management has also been able to monitor and review the bank's performance in proactive manner.

AUDIT DIVISION
The audit division reports directly to the board through the executive committee, which is also the audit committee. The audit division is completely independent of the management and is responsible for checking and reporting on the management compliance with the board policies and directives, as also the prudential regulations and other directives of the SBP. However their role is not intended to just that of fault finding; but also guiding and assisting branches in improving their operations. The division is responsible for evaluating every aspect of the bank's operations with the goal of improving the effectiveness of risk management and internal control. There is also a regional audit function attached to each area office; the nature of this business is of more quality assurance rather than strictly audit. The regional audit report to the area manager, and assist them in ensuring that there is proper compliance with all the relative directives, and also that customer service standards are maintained and improved, at the branches in the area.

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RISK MANAGEMENT
Askari Bank fully understands that risk management is critical given the various risks that the Bank is inherently exposed to in addition to internal control systems. An effective risk management framework is in place for appropriate assessment and monitoring of risks. Askari bank continues to strive for the management of change in their institutional culture to make it more professional and responsive to a dynamic environment

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SWOT ANALYSIS
An analysis indicating towards the organizations strengths, weaknesses, opportunities and threat is termed as SWOT Analysis. Such an analysis is very important for the management in retaining the strength, overcoming the weaknesses, capitalizing over the emerging market opportunities, and carving ways to successfully tackle with the threats and ultimately converting them in the strengths for the organization. During six weeks of my stay at Askari Commercial Bank, Allama Iqbal town Lahore, I have come across the following SWOT analysis of the bank.

STRENGTHS
LEADING PRIVATE SECTOR BANK: Askari commercial 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. AUTOMATIC OPERATIONS: The operations performed by the bank are highly automated that result in assurance for the customers that their transactions are completed reliably, efficiently and securely. FULL DAY BANKING: One can avail the benefit of the services provided at the bank till 5:00 P.m. which is highly useful for those customers who find it difficult to leave their officers in the morning.

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ATM NETWORK: The bank has the largest ATM Network across the country. The customers of ACBL withdraw access their funds any time at all the ATM Sites with ASKCASH Logo. CUSTOMIZED SOLUTIONS: The management of the bank believes in customer focused banking rather than the product oriented banking. The products and services designed by the bank are specifically tailored to the individual needs of its customers. CUSTOMER ORIENTED BANKING: The priority banking centres of the bank offer an unmatched where the customer receives highly privileged services in a highly elegant environment. It gives the chance of experiencing new standards in banking. Designed especially for those who appreciate only the finest things in life, Priority Banking offers the very highest levels of personalized banking to match customers unique status. ELECTRONIC BANKING: The revolution in the banking in the form of electronic banking operations have opened avenues of excellent, efficient and quick services saving the time and costs of the customers and fortunately ACBL is among those few banks who are already reaping the benefits of electronic transactions. ELECTRONIC FUNDS TRANSFER: ACBL management is quite prepared to adopt the latest advancements in technology resulting in revolution in the banking operations such as check

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clearing

process,

computer

based

teller

equipment,

automatic

teller

machines, and electronic funds transfers among the others. PHONE BANKING: Phone banking service is very attractive for those classes of customers who dont have time to personally come to the bank i.e. banking on the phone line thus saving the precious time of the customers. ETHICAL CONCERNS AND PUBLIC IMAGE: The organizations showing concern for the people, ethics, and environment enjoy good public reputation and are able to reap the benefits in the long run. ACBL management is quite sensitive to this issue.

WEAKNESSES
In my opinions these are the points that might be detrimental to the efficiency and profitability of the bank. NOT HIGHLY AUTOMATED: The bank has still some of the traditional ways of operations in this advanced technological environment. MANUAL BOOK-KEEPING: Although the bank has computerized accounting system but, still the bankers use to make their entries in the accounting register. LOW JOB SATISFACTION:

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Understanding and the effective management of the human resources is the most difficult challenge faced not only by the bank but by all the organizations. Even though the people have been sacrificed in the new organizational developments, it is becoming clear that the true lasting competitive advantage comes through human resources and how they are managed. ACBL seems to not focusing on this highly critical issue as the job satisfaction level of the employees working at ACBL, was quite low. LACK OF SPECIALISATION: This famous and useful concept given by Adam Smith in 1776 seems to be missing in the bank. The employees are constantly rotated from one job to another job of totally different characteristic in the view of giving them the know-how of the working in all the departments. But I think this is not a very good tactics used by the management. Otherwise the situation might be like this Jack of all and master of none. CENTRALIZATION: There is a high degree of centralization in the bank. Almost all the decisionmaking is in the hands of the upper management. But centralization is effective up to a certain level otherwise it becomes inefficient and at times costly too. I personally observed that delay occurred in the operations of the employees only due to the fact that they had not got any instructions from the head office. LACK OF TRAINING FACILITIES: Presently there is no specific training program arranged for the new recruiters. They have to learn based on their observations and also their mistakes. It takes a bit time for the fresh one to learn the banking and the
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result is huge amount of blunders, mistakes etc. resulting in monetary and non-monetary losses for the bank. There is pressure not only on the new learner but also on the person placed upon with this responsibility.

OPPORTUNITIES
Apart from the ones discussed in External Factors Evaluation Matrix, the bank is facing the following threats and opportunities currently: These are positive external environmental factors effecting the organization. It deals in bulk business. A large amount of foreign investment is attracted. Strong potential for growth Steady increase in Customer Deposit Overseas Operations Branches In Remote Areas Islamic Banking Sharp increase in imports and exports

THREATS
HIGH EMPLOYEES TURNOVER: As discussed above, the job satisfaction level of the employee is very low resulting in high turnover, which is bad for any organization as there are huge monetary and non-monetary costs involved in the fresh recruitments.
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HIGH CHARGES: The schedules of charges indicate that the fees charged by the bank on the various services it provides are extremely high. It may result in decrease in the number of its existing customers. Furthermore, this could be very alarming situation for the bank in case some of the competitors grasped the opportunity and lowered its rates. The result would be either the loss of market share or decrease in the charges resulting in lowering the banks income. LESS ATTRACTIVE RATE OF RETURN: Commercial banks face considerable competition in attracting deposits from individuals or small investors. In contrast, the Govt. of Pakistan national saving scheme offers attractive rates of return (approx. 16 to 18 percent annually) on 10-15 year fixed accounts, which banks find difficult to match. STIFF COMPETITION: Askari bank limited is currently facing strict competition from the foreign banks especially the American who banks enjoy a good market position. Collectively U.S. banks hold approximately 9 percent of all commercial banks' assets. At present, three American banks are operating in Pakistan: American Express Bank; Bank of America and Citibank. LESS EXPERIENCED STAFF: Owing to huge turnover of the employees, the no. of experienced and well trained staff is very low. Majority of the staff working in the bank branches is quite young and inexperienced. If the bank failed to bring down its high employees turnover, then it would be lacking the most important resources of any organization i.e. the experienced staff.
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INTRODUCTION OF THE ALLAMA IQBAL TOWN BRANCH

The Allama Iqbal Town branch of Askari ban is the branch in which I did my internship of six weeks. This branch is located at Main Boulevard, Gulshan Block near Moon market. Due to attention and interest of branch manager, Mr. Salman Aziz Rana, the exterior as well as interior of the branch has been delightfully decorated. This branch has only 20 employees, ranging from bank manager to security guards, tellers and cleaning boys along with the in charge of the kitchen. The main reason of the banks existence is the acceptance of peoples money to keep safe until they need it back and extending money on interest to those who need it for investment purposes. The growing number of peoples needs near the branch is the main reasons for its increasing profits. The branch is growing well for credits and operations but foreign trade load is low as compared to other branches. One another important thing of this branch is that it used to have highest number of internees.

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HEIRARCHY OF ASKARI BANKS ALLAMA IQBAL TOWN BRANCH

BRANCH MANAGER

MANAGER INTERNATIONL BANKING MANAGER OPERATIONS

MANAGER CREDITS

IMPORTS DEPARTMENT

LEASING DEPARTMEN

ACCOUNTS DEPARTMENT

EXPORTS DEPARTMENTS

HOME FINANCE DEPARTME NT CAR FINANCE DEPARTME DEPARTMENT NT CREDIT CARD DEPARTMENT

CASH DEPARTMENT

FOREIGN EXCHANGE DEPARTMENT

ACCOUNT OPENING DEPARTMENT

CLEARING DEPARTMENT INTERNAL AUDIT DEPARTMENT MARKETING DEPARTMEN T Page 42 of 51

WORK DONE BY ME AS AN INTERNEE DURING SIX WEEKS

There were following learning points for me in the bank.

FIRST WEEK
Duties:
In my first week in Askari Commercial Bank commercial bank, they assigned me work in Account Opening Department.Miss Sheeren trained me very nicely and I learned lot of things in this department. He told me different accounts names and their codes and how to open the account. New Computerized national identity card is must for opening of new account. For current account 10,000 and for saving 5,000 are required. What are the necessary requirements of different accounts to be opened? Other activities are : How to fill the deposit Slip if anyone wants to transfer cash in the account or online transfer How to fill the different accounts Form How to fill the voucher for issuing of the Cheque Book for the first time How to fill the requisition slip for the second time issuance How to issue the Cheque Book How to enter it in the register

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Accomplishments: I m fully trained in this job how to open the different accounts ,how to issue the cheque book and enter it in the register and how to transfer the amount through cash or cheque to an account .

SECOND WEEK
In the Second Week they assigned me work in Clearing Department .Miss Noreen trained me very nicely and I learned lot of things in this department.

Duties:
There are two types of clearing. 1. I/W (Inward clearing) 2. O/W (Outward clearing) In this week I entered the cheques lodged for inward clearing in clearing register as their cheque number account holder name cheque amount and bank name amount to be paid. Secondly in this week I prepared (O/W) clearing for next day. Same as entered cheque number account holder name amount and Bank name. In this week I also entered cheque return in cheque return register and put cheque return slip on cheque.

Accomplishments: I am fully trained now in this particular job. How to fill cheque return slip? How to enter in I/W, O/W clearing register.

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 THIRD WEEK
Duties:
In third week I perform following tasks relating to the banking system. 1. IBC (Inter bills clearing) 2. OBC In this week I worked for IBC (Inter bills clearing). IBC mean cheques lodged for clearing from other city. I entered these cheques in IBC register if it is ACBL cheque then Miss Noreen cleared or return this cheque and if it is cheque of other bank then it is again entered in O/W clearing registered and lodged next day for clearing. Secondly in this week I prepared OBC, filling of OBC slip as cheque number their amount OBC number and branch name. Accomplishments: In this week I repeatedly performed this job and now I am fully trained in this job.

FOURTH WEEK
In Fourth week they assign me work for Remittances Demand draft and Pay order preparation.

Duties:
Demand draft is for payment outside of city and pay order for local payment. It is a secure source of payment.
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There are no charges for Pay order while other banks charge for this service so it is an advantage going to ACBL bank to attract customers. Accomplishments: In this week I repeatedly perform the jobs and I am fully trained in such type of operations i.e. to make the DD, Pay order and mark the Charges if Customer is not account holder of the Bank then 255 Rs commission of the Bank.

FIFTH WEEK
Duties: In this week I worked in Accounts and Cash Department. In fifth week they assign me work in cash department. In cash department I learned about Receipts and Payments and about how to receipt cash and how to enter it in computer. In Accounts Department how to sort the Vouchers and preparation of Salaries Accomplishments: I am fully trained in this job i.e. to check that all the vouchers are scrutinized and matched with the activity

SIXTH WEEK

Duties:
In Sixth Week I worked in Foreign Exchange and in Credit Department.

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They told me brief introduction about import and Export. Necessary Requirement about the Letter of Credit .What Documents are required for Import and Export Secondly in this week I learned about Advances from credit manager Mr. Hussnain. What are requirements for loan? It is a procedure that takes many days Accomplishments: I in this week I m fully Trained in these jobs.

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IDENTIFICATION OF PROBLEMS AT ASKARI BANK

There are problems being faced here at Askari Bank some of which can easily be highlighted; Bank is facing a high tax rate, which affects its profitability and attractiveness for new entrants. Middle class and low income group have limited access to bank credit. Weak internal controls, non-merit based recruitments. High administrative costs affect the performance of bank. Continuous maintenance is compulsory. Favoritisms while promoting employees. Education level of the employees.

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RECOMMENDATIONS
It was an interested experience to do internship in Askari Bank . The staff was highly cooperated and due to their help I learned big deal about modern banking. I suggest that such an internship program highly integrative for the students of business education so that the students should been aware with the knowledge of practice world .Here I am putting some suggestions, which will enable the bank to compete with other banks more effectively & efficiently. It is observed that the employees were overburdened so they have to stay at branch till late at night. In this way their efficiency is affected and hiring more employees can reduce their work. The employees should be signed jobs for specific period and than they should shifted to other department so that they gain knowledge of other jobs. The Askari Bank should properly advertise and Communicate to public about the services provided by it, so that more customers will be attracted. The banks management should give more incentives and pay scale o f officers should be revised & improved. System and operations should be more defined and organized. IT draw backs should be improved Administration drawbacks should be improved by the strict control of general issues. Some employees waive the bank charges (Statement charges, cheque book charges etc) that decrease the income of the bank. Expenditures must be control, which are very high Askari Bank offers higher charges in many of its services as compared to its competitors.I think they should be bit flexible in this regard.
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CONCLUSION
Askari Bank is a good Organization in the way that anybody can join it for his/ her long-term career. Overall working environment is comfortable. Management of branch cares a lot of its employees and considers them as the Asset of bank. Behavior of senior executive of bank is very polite and they are caring about the individuals career and their growth. However management is very demanding about the targets but good reward at the achievement of assigned targets is awarded. Employees at Askari Bank are quite efficient. Therefore, they work more than their working hours and it is all according to their will. It also shows their loyalty, commitment to organization. Employees are given the benefits like bonus, gratuity funds, loans, increments, and medical. All the customers are entertained individually. Same kind of behavior and attention is given to all the customers. Getting ideas for improvement from customer side is a new idea and that is working very well in Askari Bank. All the customers are asked to fill a suggestion form and the standards of the bank are improved through them. Prioritizing its product portfolio in line with its corporate and consumer needs and wants the bank is committed to develop products that give more value to its customers. In bank, all the work is done on computers. All the entries are made in computer. This increases efficiency of the bank. During my internship training I gathered information regarding how successful bank operational aspects decorticated with the practical. I found my internship training a very rewarding experience. The training was beneficial because it helpful me to aware a real life working environment. So far my learning is concerned; all the employees at branch were quite cooperative. They helped me to understand the activities of a bank to possible extent. Their good attitude gave me more confidence to learn more and to ask if I have any query in my mind. Besides their ever going activities
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they never get irritant by my questioning. I had made an honest efferent to present the working & operation of Bank in simplest way. I feel pleasure that I have really gained a lot during 6 weeks & enjoyed working with experienced cooperative & intelligent staff.

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