Final Report

Internship Report
Reasons to Choose Banking Sector
In the current era, Pakistan economy is in the boom. Foreign investment is moving towards the
Pakistan. Bank sector is one of the sectors, in which foreign investor has been invested at large
scale. Banking is the sector which is must at every industrial and developing area. In the last
seven years, many of banks have been incorporated.
Askari bank is one of the leading banks in Pakistan who had made the much progress in less
time. It was incorporated in 1991 and just in sixteen years, it has been entered in the first class
banking sector. Human resource department of the Askari bank limited is one the best
department among others. In eight week, it is impossible to learn each and every thing which
may be dealt in the branch. Before going to internship, I reviewed and analyzed many of banks
for internship but I thought the Askari bank limited suitable.
Since the college study, I am studying the banking management as a compulsory subject. And
my specialization is finance in M.Com. I have interest in banking sector. That’s why due to all
above mentioned reasons, I selected the banking sector and then I selected the Askari bank
limited in the banking sector for my internship.
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Introduction
Askari Bank is consistently focused on building long term shareholders’ value, as the primary
objective. The strength of its brand name, supported by strategic expansion and the depth of
bank’s customer relationships, gives it a strong foundation on which to build and continue
growing in the times ahead. The key elements of Askari Bank’s strategy have been to increase
its market share, mobilize its resources, develop retail, agriculture and Islamic banking,
introduce fresh initiatives for corporate and investment banking, capitalize on new business
opportunities and implement various technology initiatives.
Askari Bank’s primary focus remains on improved risk management which it considers to be
one of the essentials for sustainable success in its business. Based on the risk management
guidelines issued by the State Bank of Pakistan (SBP), a risk management strategy has been
developed for assessing, and mitigating / controlling risks.
Bank’s Retail Banking Group gathered further momentum during 2006 and further increased
its share in both business volumes and earnings of the Bank. The Group was also benefited by
a dedicated advertising campaign launched during 2005. While new products are being added,
the distribution channels are also being increased and currently six customer service centers
operate in major cities to serve retail banking customers. We believe that Askari Bank is well
poised to increase its share of the retail banking market which still offers opportunities for
growth.
Agriculture Credit Division of the Bank, strategically headquartered in Lahore, continued to
serve its customer base through various branches located in the small to medium sized cities of
Punjab and a few in Sindh. Since its launch in 2004, the division has strengthened its
operations and has devised various innovative agriculture credit products under the Askari
Kissan Agri Finance Program, which gained quick market acceptance and penetration. After
expanding its reach to most of the agricultural areas of Punjab, the Division is poised to expand
agriculture
Askari Bank co-founded the ATM switch, ‘One-Link’, the first ATM switch in Pakistan. This
switch is now also linked to M-net, the second switch in the country. As a result, the
Bank’s customers can now access their accounts through more than 1,100 online ATMs
throughout Pakistan.
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During the year, the Bank launched the first Mobile ATMs in the country. Using wireless
GPRS technology, these ‘ATMs on wheels’ can be placed at strategic locations at peak times
to serve the customer needs. The Bank’s ‘Data Warehouse’ has become operational and is
being fine tuned for providing the management with accurate, up-to-date information enabling
them to make timely and prudent decisions.
Askari Bank’s progress in the field of Retail Banking was also recognized internationally as
the Bank won The Asian Banker award for the 'Best Retail Bank in Pakistan' for 2004, after
wining the same award for 2003. Your Bank is the first bank in Pakistan to have won these
awards. The Bank won 'The Best Corporate / Institutional
Internet Bank in Pakistan' and 'The Best Consumer Internet Bank in Pakistan' awards for 2004,
from The Global Finance – an international magazine of high repute. The Bank has also won
the 'Bank of First Choice' award for 2005 from the Consumer Association of Pakistan.
Askari Bank recognizes its employees as the prime asset and key contributors to the
performance of the Bank and places great emphasis on the attraction, development, and
motivation of its employees. Operational success requires matching of operational strategies
with that of quality human resource. Retention of high quality human resource and maintaining
quality recruitment are the fundamentals to good organizational growth. During the year, the
compensation package was substantially improved in order to enhance employees’ motivation
and loyalty. Our human resource management objective remains to increase the contribution
from the employees to the Bank’s value addition while maintaining high ethical and
professional standards. For this purpose, various initiatives are being implemented, including
improved training and career development, and stimulating employee initiative, innovation,
commitment and work efficiency. We are also focusing on developing an organization culture
which will enhance employee synergies for achieving excellence in all we do.
Understudy report cover the products, field of activities of the organization. It further will
provide the information to you about the ratios analysis of the bank and SWOT analysis. This
report briefly covers the overall topics which may be the informative for any reader, especially
investors. At the end recommendations are also provided to make the better then the current.
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Bank!!!
There are many definitions of the word “Bank” even the standard encyclopedia and law books
find it difficult to state exactly what a Bank is. There have been many attempts by different
writers to explain the exact significance of the term “Bank”. Here some of the definitions are
quoted as follows.
According to the Banking Companies Ordinance 1962”

Section 5 (b) defines.
“Banker means a person transacting the business of accepting,
for the purpose of lending or investment, of deposits from the
public, and withdrawal by cheques, drafts, order of otherwise,
and include any post office saving banks”
According to Gilbert
“A bank is a dealer in capital or dealer in money. He is an
intermediary party between the borrowers and lenders.”
Importance of Banking
We can take bank just like a heart in the economic structure and capital provided by it is like
blood in it. Banks play very important role in the economic life of a nation. The growth of the
economy is dependent upon the soundness of its banking system. Although banks do not create
new wealth but borrow, exchange and consume. These make generation of wealth. In this way
they become most effective partners in the development of that country.
To encourage the habit of saving and to mobilize these savings is its basic purpose. Banks
deposit surplus from the public and then advances these surpluses in the form of loans to the
industrialists, agriculturists, businessmen and unemployed people under different schemes so
that they set up their own business. Thus banks help in capital formation.
If there are no banks, then there would be concentration of wealth in few hands and great
portion of wealth of a country would be idle. In the fewer developing countries rate of saving is
very low and due to this, rate of investment and rate of growth is also very low. We can take
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bank just like a heart in the economic structure and capital provided by it is like blood in it. As
long as the blood is in circulation, the organs will remain sound and healthy. If the blood is not
provided is not provided to any organ then the organ would become useless. So if the finance is
not provided to agriculture sector or to industrial sector, it will be destroyed.
Loan facility provided by bank works as an incentive to the producer to increase production.
Banks provide transfer of payment facility, which is cheaper, quicker and safe. Many
difficulties in the international payment have been overcome and volume of transactions has
been increased. These facilities are very much helpful for the development of trade and
commerce.
Types of Bank
It is difficult to classify the Banks according to the functions, they perform. However main
kinds of Banks are as:
• Central Bank
• Commercial Bank
• Agricultural Bank
• Industrial Bank
• Co-operative Bank
• Saving Bank
• Exchange Bank
• Mortgage Bank
• Investment Bank
• Merchant Bank
• Consortium Bank
• School Bank
• Labor bank
• Scheduled Bank
• Non-Scheduled Bank
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Size of global banking industry
Worldwide assets of the largest 1,000 banks grew 15.5% in 2005 to reach a record $60.5
trillion. This follows a 19.3% increase in the previous year. EU banks held the largest share,
50% at the end of 2005, up from 38% a decade earlier. The growth in Europe’s share was
mostly at the expense of Japanese banks whose share more than halved during this period from
33% to 13%. The share of US banks also rose, from 10% to 14%. Most of the remainder was
from other Asian and European countries.
The US had by far the most banks (7,540 at end-2005) and branches (75,000) in the world. The
large number of banks in the US is an indicator of its geography and regulatory structure,
resulting in a large number of small to medium sized institutions in its banking system. Japan
had 129 banks and 12,000 branches. In 2004, Germany, France, and Italy had more than
30,000 branches each—more than double the 15,000 branches in the UK.
Evolution of Banking in Indo-Pak Sub Continent
The Indian society was quite familiar with the banking, right for the beginning. There is also
sufficient evidence to show that during 5th century people were accustomed to use hounds as a
credit investment. Loans were given to the people against personal and other securities such as
ornaments, goods and other immovable properties.
Banking in Pakistan
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It was very difficult for Pakistan to build up its own Banking system immediately after
independence without sufficient resources. Following the announcement of the partition plan in
June 1947 there was a haste movement on the parts of banks to transfer their funds and
accounts across the borders. The banks having their registered offices in Pakistan were
transferred to India. In an effort to bring about the collapse of the new state by the persecuting
an international policy of withdrawal, the Indian bank offices closed quickly. Those banks,
which stayed, were considering the winding up of their business. By 30 th June 1948 the number
of schedule banks in Pakistan declined from mere scratch.
Today there are more than 7000 branches of commercial banks along with an established
network of supplementary financial institutions. All this development in the banking sect is the
result of untiring efforts of four decades.
Pakistan Economy
The strong growth momentum that the Pakistan economy ahs achieved in the last few years has
been underpinned by dynamism in industry, agriculture and services. This dynamism has
stimulated the emergence of a new investment cycle in the economy supported by strong credit
growth. The country’s banking sector has risen to the challenge of catering to the needs of a
more dynamic economy. Indeed, new growth opportunities I banking have attracted large
flows of direct foreign investment in the sector, a phenomenon reflected in the acquisition of
local banks by major international banks as well as in the entry of new foreign banks in the
country.
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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 the Karachi,
Lahore and Islamabad Stock Exchanges and its share have consistently remained amongst the
highest quoted in the banking sector in Pakistan.
Askari Bank has expanded into a nation-wide presence of 121 branches, including six
dedicated Islamic Banking Branches, and off-shore banking Unit in Bahrain. A shared network
of over 1.300 on line ATMs covering all major cities in Pakistan supports the advisory channel
for customer service. As at December 31, 2006, the bank had equity of Rs. 11.1 billion and
total assets of Rs. 166.0 billion, with over 665,000 banking customers, serviced by its 4,585
employees.
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Askari Bank Limited---In Vehari
Vehari is a city in the Vehari District, Punjab, Pakistan. It is located about 100 kilometers from
the regional metropolis of Multan and about 25 kilometers from the southernmost of the five
rivers Sutlej in Punjab, "the land of the five rivers" (The word Punjab comes from both the
Punjabi language and the Persian languages, with the Punjabi "punj" meaning "five" and the
Farsi "aab" meaning "water"). Vehari is to the north of the Sutlej River. A headworks of canals
is located on this river near Luddan on the Luddan-Vehari canal providing irrigation water to
both banks of the river, which includes the upper fringes of the Cholistan Desert.
The summer in Vehari is very hot, but the weather becomes much more pleasant between
October and February. Light rainfall leaves the land generally arid and dusty, but the country's
agricultural products include mangoes in the summer and guava and other citrus fruits in the
winter. Vehari is considered the capital of cotton growing in this part of Pakistan, with dozens
of cotton processing factories and cottonseed oil manufacturing plants, and sugarcane farming
and processing is also common.
Competition in banking sector at Vehari is increasing day by day. One reason may be the
special attention of the government towards the development of the region. Second one we can
say that SME sector is demanding the special attraction of banking sector. Askari bank is one
of them who have paid special attention in SME sector.
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Objectives
• To achieve sustained growth and profitability in all areas of
business.
• To build and sustain a high performance culture, with a
continuous improvement focus.
• To develop a customer service oriented culture with special
emphasis on customer care and convenience.
• To build an enabling environment, where employees are motivated to contribute to their
full potential.
• To effectively manage and mitigate all kinds of risks inherent in the banking business.
• To maximize use of technology t ensure cost effective operations, efficient
management information system,, enhanced delivery capability and high service
standards.
• To manage the bank’s portfolio of business to achieve strong and sustainable
shareholders returns and to continuously build shareholder value.
• To deliver timely solutions that best meet the customer’s financial needs.
• To explore new avenues for growth and profitability.
Strategic Planning
• To comprehensively plan for the future to ensure sustained growth and profitability.
• To facilitate alignments of the vision, mission, corporate objectives and with the
business goals and objectives.
• To provide strategic initiatives and solutions for projects, products, policies and
procedures.
• To provide strategic solutions to mitigate weak areas and to counter threats to profits.
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• To identify strategic initiatives and opportunities for profit.

• To create and leverage strategic assets and capabilities for competitive advantage.
Values of Askari Bank Limited

Integrity is the most valued standard in whatever we do. We understand that our commitment
to satisfy customers’ needs must be fulfilled within a professional and ethical framework. Bank
subscribe to a culture of high ethical standards, based on the development of right attitudes.
The intrinsic values, which are the corner stones of our corporate behavior, are:
• Commitment
• Integrity
• Fairness
• Team-work
• Service
Growth in Profit
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Branches Network
Basically Askari bank limited has following types of branches:

• Conventional
• Islamic
• Offshore Banking Unit
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Credit Rating
Awards and Achievements

Over the years, we have received several awards for the quality of our banking service to
individuals and corporate. These include:\
. Askari Bank continues its success in competition. Recently we have once again been given
the “Best Retail Bank in Pakistan” by The Asian Banker for the 2nd consecutive year. Askari
Bank has been given the 1st Consumer Choice Award 2004 for the Commercial Banking
Category by the Consumer Association of Pakistan. We have also received the Corporate
Excellence Award for the financial sector from the Management Association of Pakistan
(MAP) for the years 2002, 2003 and 2004.
We have been given “The Best Bank in Pakistan” award by Global Finance magazine twice
i.e. for the years 2001 and 2002. We have been given the “Best Consumer Internet
Bank” award by Global Finance magazine for the years 2002 and 2003. We won the Euro
money and Asiamoneyawards as early as 1994, 1996 and 1997. We have A1+, the highest
possible credit rating, for short-term obligations, and our long-term rating stands at AA. We
won the prestigious “Best Presented Annual Accounts” award from the Institute of Chartered
Accountants in Pakistan (ICAP), and The Institute of Cost and Management Accountants in
Pakistan (ICAMP), for the Services Sector, for the years 2000, 2001and 2002. We have also
received ranking prizes during the last six years from the South Asian Federation of
Accountants (SAFA) for “The Best Presented Annual Accounts” for the financial sector, in
the SAARC region. In 2007 Askari bank won “The Best Consumer Banking Award
2006” for the third consecutive year from the consumer Association of Pakistan. In 2008,
Askari Bank has been given “The Best Retail Banking Award 2008” by Pakistan Guarantee
Export Corporation Ltd.
"Askari Bank has won the first position in the "Best Corporate Report Award for the
year 2008" by ICAP & ICMAP."
Others:
Askari Bank has also proved its strength as a leading banking sector entity, by achieving the
following 'firsts' in Pakistani banking:
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• First Bank to offer on-line real-time banking on a country-wide basis.

• First Bank with a nation-wide ATM network
• First Bank to offer internet banking services
• First Bank to offer e-commerce solutions
• First Bank to introduce mobile ATM
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Hierarchy Bank (Grade Wise)
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Management – Head Office

Shaharyar Ahmad
President and CEO
M.R. Mehkari, SEVP
Group Head- Treasury & International Banking
Agha Ali Imam, SEVP
Group Head- Consumer Banking Services
Mohammad Afir Mian, SEVP
Group Head- Chief Risk Officer
S. Suhail Rizvi, EVP
Group Head- Operations
Abdul Hafeez Butt, SEVP
Country Head- Credit
Israr Ahmad, EVP
Country Head- Establishment
Rehan Mir, EVP
Country Head- Treasury
Tahir Aziz- EVP
Group Head- Corporate & Investment Banking
Abdul Jamil Mubbashar, EVP
Country Head- Risk Management
Khalid Mohammad Khan, EVP
Country Head- Compliance & Data
Saleem Anwar- EVP
CFO
Rana Shahid Habib, EVP
Country Head- Inspection & Audit
Hashim Khan Hoti, EVP
Country Head- Islamic Banking Services
Vadiyya Asif Khan, EVP
Country Head- Corporate Banking
Mian Muhammad Sharif
Credit Administration
Shahid Ahmed
Chief Economist & Country Head- Strategic Planning
Farooq Abid Tung, EVP
Country Head- Agricultural Credit
Hassan Aziz Rana, SVP
Country Head- Legal Affairs
Muhammad Ehsan Qadir, SVP
Country Head- Operations
Muhammad Ahmad Khan, SVP
Acting Country Head- International
Riaz Khan Bangash, SVP Acting Country Head- Human Resource
Nauman Bashir Khan, SVP Country Head- Electronic Technology.
Management –
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In the Country
Basically management of the Askari bank limited has been divided into the following
categories. Head of each category control his/her own region. Branches under this head report
to the own region head. Region reports to the high authority which is the head office. How ever
in any special case, branch may be contacted directly through by the head office.
Branch Hierarchy (Vehari Branch – 0093)
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Department Askari Bank Limited
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There are various departments in the Askari bank limited. But the branch where I have worked
as internee has not all departments due to geographical situation. As I have mentioned above
that Vehari city is an agricultural area, so investment, export and import department are not
here. Farmer sold there crops in local market. There is too much minimum industry. This is, do
business locally. So Vehari branch has following departments.
Let the departments explain briefly.
Operational / General Banking Departments

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This is the section which deals with the general public who make the transaction daily bases. It
is further divided into the following departments.
Account Opening Department: -
This is the department who deal the new clients of

the bank. Opening the account is the main duty of
this department.
Features: -
• It opens the account of all type of clients.
• It deals in the lockers.
• It issues the RTC, TDR, CDR and NDR.
• It issues the Cheque Book.
• Any other relevant assigned duty by high
authority.
• it issues the ATM Card and get the
application for Credit Cards.
Following are the persons who are responsible

for the work in this department.
• Mr. Muhammad Aslam; who is the branch
manager.
• Mr. Khubaib Shah; Operational Manager.
• Mr. M. Imarn; Incharge department.
• Mr. Liaqat
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Clearance Department
This department is for clearing locally.

Representations together twice in a day in
national bank clearing house for clearance.
These employees clear the instruments like
checks etc,. Which have been presented by the
clients in their banks for collection? Outward
and inward clearing is also the responsibility of
this department. It has the following features.
How national bank record to checks:
My brother was doing internship in national
bank at that time when I was doing internship in
askari bank one day I go to with him in national
bank and learned how they record to the checks
which is came from different bank the register
in which they record the format of that is
following
Check number Drawee’s bank UBL PUNJAB RSB

name
After from all this procedure “AVP”of national bank prepare “fan code” in fan code all the
check amount of one bank recorded and totaled and then stapled with checks.
Features
• It has the responsibility to clear all the instruments have been represented by the clients
in the bank for collection.
• It has the duty to clear OBC and IBC.
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• At the day end present the day summary to high authority, cash Incharge and remittance
in charge.
Following are the persons who are responsible for the work in this department.
• Mr. Muhammad Islam; Branch Manager.
• Mr. Khubaib Shah; Manager Operations.
• Mr. Mian Furrukh; Incharge Department.
Remittance Department
It is the department who works for the clearance

of out side the city instruments presented by the
clients or any bank’s branch from outside the
city. Simply it remits the money and does other
duties. Following are the features of this
department.
Features
• It remits the money.
• It clears the OBC and IBC instruments.
• prepare the Demand Draft, Pay order,
Telex Telegram
• Any other relevant duty assigned by the
high authority.
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• Mr. Muhammad Aslam; who is the branch manager.

• Mr. M. Atif; Incharge Department.
Account Department
this is the department who is responsible for all

account statements like as expenses, taxes etc. it
prepare the reports on daily, weekly, monthly,
quarterly, and annually basis. This department has
the importance. It makes the correspondence with
the head branches also. It has the following
features.
Features
• It makes the account statements on daily,
weekly, monthly, quarterly and annually
basis.
• It deals in the tax also.
• It makes the correspondence with head
office and head branches also.
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• In charge of this department also is the in charge of all labor type employees. Simply In
charge of this department is also responsible for maintaining of branch and refreshment
in the branch.

• Mr. M. Atif; Incharge Account Department.
Cash Department
This department simply is the backbone of any

branch. It deals with the cash. Cash which is
deposited by clients or withdraw by clients or
deposited or withdraw walk-in-customer. This
department is also collects the charges. It has
the responsibility to balance the debit side with
credit side at the end of the day. It has the
following features.
Features
It deals in cash whether deposited or withdraw
by clients or any other walk-in-customer.
It collects the service charges rendered by the
bank to the valuable clients or walk-in-
customers.
It must to balance the debit side with credit side
at the end of the day.
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Bank retain up to six million with the branch, excess amount cash Incharge send to the head
office.
• Mr. Muhammad Zeeshan; Incharge Cash Department.
• Mr. Hafiz M. Shehbaz; Incharge Teller.
• Mr. M. Asif; Teller.
Foreign Exchange Department
Department which deals with the foreign currency

transactions. It has the importance in cross the
boundary transactions. It has the following
features.
Features
• It deals in the foreign currency.
• It is directly under the supervision of the
branch manager and branch is responsible
directly to the treasury department or head
branch.
• Foreign amount currency is sent through
SWIFT. Askari Bank Limited has the contact with American Express, America for
cross the boundary transactions.
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• Mr. Mahmood; Incharge Credit Department.

• Mr. Muhammad Yasir; Assistant Incharge Department.
Credit Department / Section
We can say to it a section because it has further three departments who deal in the credit. Bank
has two major functions. One is depositing and second one is advances. Credit section deals in
the advances. It is further divided into three departments in the branch.
Agri-Credit Department
As I have mentioned earlier about the

Vehari city in which Askari branch is
situated where I have worked as internee.
Vehari region basically is a agricultural area.
Government and especially is concentrating
their attentions in the Agri-reforms in this
area. So, it should be clear now that this
department who much has the importance. It
deals in the advances of both type term and
running finances. It advances to the farmers
on low rate. It has the following features
Features
• It deals in the Agri-advances.
• It provides the loans to the farmers
on low rate.
• It deals in both, running and term
financing.
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• It is also under the supervision of branch manager directly.

• Mr. Rao Sajid; Incharge Agri-Credit Department.
• Mr. M. Imran; Assistant Incharge Agri-Credit Department.
General Credit Department
This department deals with the general public

who want to borrow from the bank. Credit
department of this branch of Askari bank
limited provides short term and medium term
advances. Simply it provides medium term
financing. One can say that this is because of
“99% SME lies in Vehari and its surroundings”. It
has the following features.
Features
• It provides the medium and short term
loans.
• It provides the advances to SME and for
housing also.
• It issues the Letter of Guarantee.
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• Mr. Mahmood; Incharge Credit Department.
• Mr. M. Yasir; Assistant Incharge Department.
CBSG Department
CBSG stands for consumer banking services

group. In the branch it is under the supervision of
branch manager otherwise it is directly under the
regional branch. This department deals with
consumer financing. It provides the loans to
fulfillment the personal needs of the borrower. It
has the following features.
Features
• It deals in the personal financing.
• It provides the loans to fulfillment the
personal needs of the borrower.
• It provides the loans against salary.
• Ms. Mahgul Magsi; Incharge Department.
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Management Information System Department
Today is the era of online and internet banking. Conventional banking although has the
importance but with the passage of time, importance of this type of banking is decreasing day
by day as compare to the modern banking. Askari bank’s bases are also situated on modern line
banking. It provides the online and internet banking facilities to the valuable clients. For this
purpose, bank has MIS Department in each branch to avoid any type of problem. It has the
following feature.
Features
• To maintain all computer and online
banking equipments on modern lines.
• To check and control the flow of
online banking.
• To initialize and end the day.
• It sends daily all online transaction
record to the head office MIS / Data
Base Department.
Following are the persons who are responsible

for the work in this department.
• Mr. Muhammad Aslam; who is the
branch manager.
• Mr. Abdul Waheed; in charge
Department.
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During 2006, Askari bank limited continued with its growth momentum and posted substantial
earnings despite highly competitive business environment. Although monetary tightening
helped in reducing inflationary pressures in the economy during fiscal 2006, aggregate demand
remained high as indicated by the strong GDP growth, high growth in private sector credit,
sluggish decline in core inflation and large external account deficit.
The year and year growth in private sector credit remained strong, although down from the
phenomenal growth witnessed last year. The slowdown in private sector credit was not broad
based and was mainly due to net retirement by sugar and cotton spinning sectors. During the
year, SBP announced debt swap option under long term finance export oriented projects (LTF-
EOP) to provide relief to the borrowers of textile sector who were monetary tightening. The
increase in consumer credit also has an expansionary effected corporate finance, as the demand
for automobile and consumer durables, particularly electronic remained high.
In a highly competitive environment, Askari bank limited continually reviewed its policy
pertaining to the sector exposures to derive optimum competitive advantage, maintain the risk
profile and achieve greater customer satisfaction.
On the operations side, during the year under review, Askari bank’s has taken various
initiatives to improve the way of doing business. The significant ones include re-organization
of management structure and technology initiatives. The primary objective of re-organization
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is to consolidate and align internal capacities to best serve each business segment. The
technology initiatives are aimed to improve the services quality standards and strengthen
control environment and to prepare the bank for the future challenges.
Corporate Banking
This business is managed by a central corporate banking division based at head office
Rawalpindi and supported by dedicated marketing and back office units in Karachi, Lahore and
Rawalpindi. The division maintains a diverse portfolio and primarily offers structured
financing solutions to cater for the business
needs of its clients. During 2006, corporate
banking further expanded its customer base
and new relationships were established in
telecommunications sector, fuel and energy,
and fertilizer sectors in order to enhance
focus on relationship management and
services quality, more dedicated and
experienced staff is being assigned to this
division.
The corporate banking will continue to play
a major role in loan syndications and
structured financing transactions with the
objective of providing a range of corporate
banking solutions to its valued clients.
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Corporate Banking Division (CBD)

CBD is your long-term business partner that is geared to help you in meeting your business
growth objectives. The business is managed by a team of professionals who understand your
requirements and can firmly stand by your side.
Dedicated relationship managers for each of our corporate clients ensure your satisfaction,
which is our top priority. Our relationship oriented outlook focuses upon providing a complete
array of tailored financing solutions, that are practical and cost effective, some of which
include:
• Working Capital Facilities

• Term Loans
• Structured Trade Finance Facilities
• Letters of Guarantee
• Letters of Credit
• Fund Transfers / Remittances
• Bill Discounting
• Export Financing
• Receivable Discounting
Investment Banking
The investment banking activity mainly covers, debt / capital markets, advisory services and
trading (both equities and bonds). This division also offers advisory and loan syndication
services. Equity market transactions are handled by capital market desk, based at Karachi,
which include equity portfolios
segregated into trading, investment and
futures, and continuous funding
system. Investment banking
participated in various debt and capital
raising instruments during the year.
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Investment Banking Division

IBD provides value-added, specialist services and products through a dedicated team of
professionals, with world-class skills, to provide customized solutions to help our clients meet
their strategic objectives. IBD is responsible for seamlessly originating, executing and
distributing all forms of investment banking transactions ranging from syndicated loans to
complex structured and project financing transactions. Some examples of products offered by
IBD include:
• Strategic Advisory
• Privatization Advisory
• M & A Advisory
• Balance Sheet Restructuring
• Syndications
• Project Finance
• Structured Finance
• Islamic Finance
• Private Placements of Debt and Equity
• Issuance and distribution of Term Finance Certificates, Sukuk Bonds, and Commercial
Paper
• Underwritings
• Capital Market Hybrid Products
Consumer Banking Services
During 2006, the consumer banking services

offered by the bank were reorganized by
combining consumer financing business and
credit business under one umbrella and were
renamed as consumer banking service group.
Consumer financing offers auto, mortgage,
personal and business finance as the core
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products. This business grew by 28% during 2006. the bank’s debit card with the brand name
of ASKCARD registered an increase of 25% in the number of cards issued. Also, RTC float
increased by 55% during 2006.The group is organized on a hub and spokes basis and its hubs
i.e. rawalpindi, Peshawar, Lahore, Karachi (2) and Quetta which are now supported by 73
spokes i.e., consumer banking units, operating form the branches in close proximity of the
relevant CBCs.
Rupees Travelers Cheque
The range of our products and value added services enhances with introduction of Rupee
Travelers Cheques (RTCs) launched in March 2002. In spite of our constraint on issuing higher
denomination of RTCs against restrictions imposed by the Central Bank of Pakistan we have
been striving to attain our shares with sizeable portfolio.
Askari Commercial Bank Limited has always remained at forefront in introducing innovative
and unique products in banking sector. Our financial instruments provide greater financial
freedom and security in an unmatched way to our valued customers.
Askari Bank offers you its "Rupee Traveler Cheques" eliminating all financial risks while
traveling. So avoid risk of carrying cash through Askari Bank's Rupee Traveler Cheques.
You’re Best Traveling Companion.
Why Askari Bank's Traveler Cheques?

• Free Issuance.
• Free Encashment.
• Plus commission for the Customer at the time of encashment if retained for a specific
period.
• Nationwide acceptability.
• Facility of encashment in cash to the purchaser.
• Facility of encashment through clearing.
• No purchasing limit.
• Valid until encashed.
• Easily Transferable.
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• Account relationship not mandatory.

• Fastest refund procedure in case of loss/theft.
• Safe & Secure due to foreign printing with multiple security features.
• Available in Rs. 10,000 Denomination at all branches of Askari Bank.
• No withholding tax on sale or encashment*.
Value plus Deposits
It is also known as VPCD “Value plus Current Deposit Account”. The first liability product
launched by this unit is showing a remarkable acceptability in the market. The growth of this
product is witnessed by its share, which has presently reached at Rs. 1,079 Million even after
lowering down the profit rates due to sufficient liquidity in the market.
Askari bank leads the way, yet again …… with the introduction of Askari bank’s value plus
rupee deposit account, which promise greater financial freedom and security, in an unmatched
way.
Now one cay open Value Plus account while enjoying the flexibility of a normal checking
account.
Types of Value plus Account:
• Value Plus Current Account
• Value Plus Saving Account
• Value plus Time Deposits.
Extra Features:
• Free insurance coverage.
• Free on-line fund transfer facility.
• Free internet banking facility.
• All other benefits of normal checking account.
• High monthly return on saving and time deposits.
• Partial liquidity offer on all time deposits.
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• Facility for issuance of debit / supplementary cards.

• Askari bank’s unmatched service quality.
Partial Liquidity Offer for Time Deposits:

Offering to public a truly exciting opportunity to make your investment break new grounds for
public. All any one have to do is to invest a minimum deposit of Rs. 25,000 in a value plus
time deposit for a choice tenure i.e. three, six months or one year.
The investment will be held in blocks of Rs. 25,000 each. In case you wish to partially
withdraw some amount from your investment, you have the flexibility of encashed the blocks
that you want, without touching the remaining investment. The un-encashed blocks will
continue at the same maturity and return ……… and yet you do not lose the share of profit on
the encashed blocks.
Upon maturity you have the freedom of either booking your time deposit for tenure of your
choice, or let the bank roll it over automatically for a like period.
Personal Finance
Personal Finance is a parameter driven product for catering

to the needs of the general public belonging to different
segments. One can avail unlimited opportunities through
Askari Bank's Personal Finance. With unmatched finance
features in terms of loan amount, payback period and most
affordable monthly installments, Askari Bank's Personal Finance makes sure that one gets the
most out of his/her loan. Once a good credit history is established, the door to opportunity
opens much wider.
One of the quickest approval processes around

One can avail unlimited opportunities through Askari Bank’s Personal Finance. With
unmatched financing features in terms of loan amount, payback period and most affordable
monthly installments, Askari Bank’s Personal Finance makes sure that you get the most out of
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your loan. No matter what your need is, Askari Bank has more ways to serve you than ever
before.
Product Featuring:
Borrower: Resident Pakistani Nationals.
Facility: Term Finance
Financing Limits: Maximum upto Rs. 500,000/. (Clean)
Maximum upto Rs. 1 Million. (Secured)
Tenor: Maximum upto 5 Years
Repayment: Monthly Installments
Markup Rates: Competitive
Servicing: Available at all Askari Bank branches
Balance Transfer Facility: Available
Eligibility to Apply:
Age: Between 21 to 65 years.
Income: Minimum gross monthly income of Rs. 10,000/- only.
Financing Maximum upto Rs. 500,000/. (Clean)
Limits:
Employment: a) Salaried: Minimum length of confirmed
service with present employer is 6
months with a total length of 1 year
service.
b) Self Minimum 1 year in business.
Employed:
Charges/Fees: As per current schedule of charges.
When you are working towards your financial goals, how you borrow can be just as important
as how you invest. The right borrowing options can improve your savings, your cash flow and
your ability to take advantage of personal or business opportunities.
So, choose the right options and call us now to enquire about your entitlement amount and
exclusive service. At Askari bank we make every effort to serve our customers with care.
Not restricted to new financing, under Personal Finance scheme, we offer extended facilities,
which are:
Balance Transfer Facility:
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• It gives the customer the opportunity to pay off his/her outstanding dues on their credit
cards or other loans at a rate of interest much lower than what one pays on them. That
not only frees up their credit limit, but cost of servicing the debt is greatly reduced.
Dream Life (Financing for Consumer Durables):
Askari Bank Limited is the financial market player in delivering quality service to customers
with highly professional standards. We have joined hands with various Electronic Companies
for sale, of the domestic appliances against consumer financing. Under this scheme, Askari
Bank is financing products of these companies, which would benefit those people who can
only afford to buy home appliances on installments due to limited resources. In addition to this,
we have also signed agreements with other top manufacturers of automobiles for financing of
motorcycles to the general public at most competitive rates.
Bank has established relationship with almost all top manufacturers and dealers of:
Mortgage Finance
Askari "Mortgage Finance" offers the convenience of

owning a house of choice, while living in it at its rental
value. The installment plan has carefully designed to suit
both the budget & accommodation requirements. It has
been designed for enhancing financing facility initially for
employees of corporate companies for purchase/
construction/ renovation of house.
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Ever since the inception of life, shelter has been rated among the primary needs of mankind.
Owning a home for oneself still remains an exclusive dream for many. Askari Bank has made
the realization of your dream to have a house of your very own possible. Whether you plan to
build a house, tailor made to your requirements or buy a constructed house, Askari mortgage
finance enables you to pursue your goal without any problems.
Product Featuring:
Financing Limits: Maximum upto Rs. 30 Million.
Tenor: Maximum upto 20 years.
Repayment: Monthly Installments.
Prime Security: Mortgage of property.
Servicing: Available at all Askari Bank Branches
Balance Transfer Facility: Available
Balance Transfer Facility: Available.
Age: Between 21 to 65 years.
Income: a) Salaried: Minimum gross monthly income of
Rs.20,000/- only and a permanent
employee with atleast 2 years of
service including present employer.
b) SelfMinimum length of 1 years in
Employed: business.
Charges/Fees: As per current schedule of charges.
Business Finance
In pursuance of the National objectives to revive the

economy of the country, ACBL is providing loans to
small and medium size business enterprises under Askari
Bank's Business Finance Scheme. Our goal is to offer a
loan, which enables business community to receive the financing required by them based on
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their cash flows. Our valued customers can enjoy the convenience of getting financing on
attractive terms with the minimum processing turnaround time. You always wanted to put in
that extra money into your business, which makes it grow... and grow!. Now you can stop
worrying about your daily cash requirements, and start enjoying our unique Askari Business
Finance facility.
Available up to 60% of the assessed market value of your residential property, through
equitable/token mortgage.
Product Featuring:
Facility: Running Finance/Term Finance.
Financing Limits: Maximum upto Rs.1.0 Million
Maximum upto Rs.50.0 Million
Primary Security: Residential & Commercial / Built up Properly &
Land.
Mode of Financing: Running Finance: One year line of credit
(renewable).
Repayment: Running Finance: Monthly debt servicing on the
outstanding balance.
Markup Rates: Competitive.
Servicing: Available at all Askari Bank Branches.
Balance TransferAvailable
Facility:
Age: 21 to 65 Years.
Borrowers: Resident Pakistani Nationals.
Business Requirements:Maximum up to Rs. 500,000/. (Clean)
Employment: Minimum one year's business or professional
experience in the present business
Charge/Fees: As per current Schedule of charges
Enjoy the convenience of most attractive financing with minimum loan approval turnaround
time. Don't wait act now, to enhance your financial resources
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Smart Cash
This personal line of credit would be set up with a specified

credit limit up to Rs. 500,000/-
Product Featuring:
Borrower: Resident Pakistani Nationals

Facility: Personal Line of Credit.
Maximum upto Rs. 500,000/-(Clean)
Financing Limits:
Maximum upto Rs. 1 Million (Secured)
Tenor: One year (renewable).
Monthly debt servicing on the outstanding
Repayment:
balance.
Markup Rates: Competitive.
Servicing: Available at all Askari Bank Branches
Balance Transfer
Available.
Facility:
Age: Between 21 to 65 Years.
Income: Minimum gross monthly income of Rs. 25,000/- only.
Employment: a) Salaried: Minimum length of confirmed service with
present employer is six months with a total length of one
year service. b) Self Employed: Minimum 1 year in
business. (Against security).
Charges/Fees:As per current schedule of charges.
Auto Financing
Yet another of our products, “Askar” offers the most
convenient and affordable vehicle- financing scheme, which
provides our valuable customers an opportunity to own a
brand new vehicle of their choice. With minimum down
payment, lowest insurance rates and widest range of available
car makes and models, Ask car offers the best value to our
esteemed customers.
Askari Bank offers you the most convenient and affordable
vehicle financing scheme to help you own your favorite brand new car.
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Product Features:
Borrower: Resident Pakistani Nationals
Repayment: Monthly Installments 5 or 6
Salaried: Rs: 10,000/-,
Minimum Income:
Self Employed Businessman: Rs: 25,000/-
Charge / Fees: As Per current Schedule of Charges
Auto Insurance: Mandatory
I learned about askari car leasing from Mr.Shoib who is the Marketing officer he learned us.
Mr. Shoib first of all told us that mostly they give car to that persons to whom bank know
mean reference base. And their target to lease car in a month is 5 cars. And Mr.Shoib told us
different between “Leasing” and “Financing”.
Leasing Defined
A Process by which a firm can obtain the use of certain fixed assets for which it makes
the series of contractual, periodic, Tax deductible payments”
Actually leasing is a type of mutual agreement where one party enjoys the benefits of certain
fixed asset by making contractual payments as rentals against that asset to the other party. In
this way lease is a contract in which lessor gives the lessee the right to use an asset for
specified period of time in exchange for periodic rent and payments. . In the leasing
agreement, lessor agrees to provide equipment or finances to buy the equipment needed by the
lessee. The main characteristic of leasing is that it segregates the ownership and possession
from use. That is, the lessor keeps legal ownership of the equipment, whereas the lessee keeps
the usage and physical possession of the leased asset.
Financing Defined
Financing is basically when you ask a bank (or lender of some sort) for money that you
promise to repay. In other words, when you buy a car, if you don't have all the cash for it, the
dealer will look for a bank who will finance it for you. Upon approval, the bank will pay the
car dealer the money for the car and then they will send you a bill each month. The bank will
lend you this money if you agree to pay interest on top of the money lent to you.
So, in essence, financing is borrowing money with a promise to repay the money and some
additional fee on top of that...
Financing is knowed as a means of getting the resources to purchase an item, then paying back
the loan in a set time period for a set monthly or weekly fee. In most cases, people turn to
financing when buying a car, boat or house, but there are instances when financing may be
needed to purchase other necessities. There are many company providing financial services
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online and office. Apply them as per your need. Get Free Loan Quote to compare various
company to decide you making the beat option to get financing.
Documentation:
⇒ Two passport size Photos
⇒ Customer ID, Company ID
⇒ Salary Certificate
⇒ Business Proof (for business person)
⇒ Copy of driving license
Down Payment:
Pak Suzuki car 20%
All other Local assembled cars 25%
Tenure:
Tenure period ranging from 1 to 5 year
Selection of Car:
⇒ The selection of car made by the customer he settled the dealing with any dealer
who must exist in that city in which he want to take loan from askari bank branch.
⇒ If person who want to take car have no experience to of purchasing car then he
asked to bank that he deal with dealer and bank deal with dealer and set rate from
dealer and then inform to lessor
Insurance:
According to the terms and conditions for taking a vehicle on lease the insurance is mandatory
for the client; it is because the vehicle is in the name of the company so it is better for the
company to have it fully insured so that in any case, damages and losses can be recovered from
the insurance company. the rate of insurance is 4.3% which is charged by the bank to the
customer.
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Problems:
⇒ The main problem in cash down payment is that when bank branch settled 20%
cash down payment of any customer but head office can change it from 30% to
40%.
⇒ In case of increasing the rate of car dealer informs to the bank and it become the
responsibility of bank that it receive from the customer.
⇒ If rate decrease then bank would return to customer by cheque.
⇒ Third party expenses is 20000/= if any issue arises by the customer
⇒ Heavy Dependence on H.O for Information Required By Clients
Tracker:
The tracker is installed by the bank not dealer it is the necessary part.
Third Party:
The bank set different prices from the third party, if customer did not give payment of
car. then bank contact with third party and third party trace to that person who has been
taken car at lease when he caught then bank take back car from person and give reward
to third party.
Condition if guilty person want to back car:

He should contact to bank and then bank claim to that person that he pay to all the installment
of car and become the owner of car mean that bargaining to bank not leasing.
Askari Debit Card
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Askari Bank is committed to provide you innovative and competitive solutions to your banking
needs in a more efficient and personalized manner. Your Bank enjoys a strategic competitive
advantage over all domestic players by virtue of its leadership, large network and technological
advancement. In line with our tradition of innovation, Askari Bank takes pride in announcing
launch of "Askari Debit Card"- Askari Bank's Debit Card. Askari Debit Card is tailored to your
shopping needs and is another valuable financial solution reflecting our commitment to build
lasting relationship with you.
Askari Debit Card means freedom, comfort, convenience and security, so that you can have
retail transactions with complete peace of mind. Askari Debit Card is your new shopping
companion which enhances your quality of life by letting you do shopping, dine at restaurants,
pay your utility bills, transfer funds, withdraw and deposit cash through ATM anywhere,
anytime.
• Profit / Markup Rates on Retail Products
• Rates of Profit Paid to Value Plus A/C Holders & on ABIC
• Commission being paid to customers on retention of RTC for a period of One Month,
@ 0.1% of face value of RTC.
Particulars Profit Rates

Value Plus Saving Deposits
Rs. 10,000/- to Rs. 24,999/- 2.50%
Rs. 25,000/- & above 3%
Value Plus Time Deposits
Three months 5%
Six Months 5.50%
One Year 6%
Investment Certificates
First Month 4%
Second Month 4.50%
Third Month 5%
Lending Product Rates

Particulars Markup Rates
Personal Finance
Up to 3 Years 18%
Up to 5 Years 22%
Smart Cash
1 Year (Renewable) 22%
Business Finance
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1 Year 1 Year Kibor + 3% to be reviewed on yearly basis

Mortgage Finance
20 years maximum 1 Year Kibor + 3% to be reviewed on yearly basis.
Auto Financing 13% to 15%
Credit Cards
Despite strong competition, the credit cards business, under the Master Card brand, maintained
its growth in all areas of the business. Net card issuance increased by 59% during the year,
cards in force (CIF) crossed 230K and its loan portfolio increased by 36%, while NPLs
remained will within the industry norms.
Askari Master Card’s rewards program continues to offer attractive features to our valued
customers. Also, strategic alliances with leading services providers in the market benefit
Askari Master Card customer with exclusive travel and leisure facilities.
Treasury and International Operations
International Division
International Division strives to place at the disposal of our branch network, efficient
correspondent banking arrangements on global basis, thereby catering the needs of our client
Diaspora. In short, this is made possible through a variety of arrangements with various banks
which, amongst other benefits, ensures placement of suitable Credit lines at our disposal by our
counter-party banks to facilitate Foreign Trade and Treasury related activities.
Today International Division boasts of multi-
faceted correspondent banking relationships with
over 200 Banks in 77 countries around the world
thereby improving the capacity of our branches in
serving their clients.
Alongside, International Division is entrusted to

arrange evaluation/approval of exposure limits
favoring various local/overseas banks and Non-
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banking Financial Institutions with whom our Treasury and branches deal on day-to-day basis.
Within the context comes the Country exposure, which is managed and monitored at this
division, whereas our liaison with State Bank of Pakistan, in respect of Foreign Trade related
issues, helps us to provide timely directions and efficient advisory to our branch network.
Optimum monitoring of business reciprocity with banks compliments our efforts to manage the
business flows and ensure greater profitability and balanced distribution of business amongst
our correspondents.
In addition and as a part of the ongoing exercise of Know Your Customer (KYC) compliance
with regard to our correspondents, International Division carries out regular Due Diligence
exercises to ensure that our bank deals only with financial institutions that are able to meet the
prescribed standards and criteria.
The monetary tightening aimed at reducing inflationary pressures and fostering economic
growth was reflected in the money market conditions throughout the year. In order to manage
the money market liquidity, SBP used the combination of Overnight Money Market Operations
(OMOs) and increased cash reserve requirement. During the year, discount rate was also
increased by 50 bps. As a result the overnight rates remained under pressure during most of
2006.
Pak Rupee started the year at Rs. 59.81 to a US $ and depreciated to Rs. 60.89 towards the end
of 2006. The depreciation of Pak Rupee against US $ was continues and was mainly
attributable to deterioration in external account. During 2006, weight average yield of
benchmark six months TBs increased by 57 bps (bills per share) to close at 8.81% p.a., while
six months KIBOR increased by 161 bps from 8.80% to 10.41%.
The intense money market competition placed the Treasury in a demanding position, to offer
more innovation in undertaking arbitrage and derivative transactions to maintain, and increase,
its share in the overall earnings of the bank. The treasuries operations are effectively structured
to measure, manage and mitigate the risk elements associated with the treasury activities,
through the use of IT system and enhanced human resource skills, so that the treasury can
manage the risk better, and also provide advice and services to the branches and their
customers.
The bank increased its overall foreign trade business during 2006. the import business
increased to Rs. 119.3 billion, i.e. growth of 11% over last year, while the exports increased by
6% over last year, to Rs. 97.3 billion.
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Standard settlement instructions for commercial payments through our major correspondents
are appended below:
Offshore Banking Unit (OBU)
During the year, Askari bank’s offshore banking unit in Bahrain increased its share of
contribution in the overall earnings of the bank. The OBU remains on a constant look out for
opportunities on the international scene, which are both profitable and provide the bank with a
strategic edge. OBU enhances the Askari bank’s capability in terms of offering a wider range
of services to our customer, and also acts as a look-out for new business opportunities and
relationships in the international markets.
Credit Department
Askari bank’s funded credit portfolio increased by 16% to close at Rs. 102.73 billion as
compared to 23% last year as the bank remained watchful of the impact of growth of risk assets
on capital adequacy.
A review of the securities held against credit limits reveal that the credit portfolio of the bank is
well collateralized, with adequate exposure being covered by securities of liquie nature, such as
deposit, trade documents, equity or debt instruments, guarantees from government or financial
institutions, etc. during the year, bank’s non-performing advances increased to Rs. 3.6 billion,
from Rs. 2.3 billion last year due to further downgrade of certain large exposures.
Consequently NPLs as a percentage of gross advances increased from 2.7% to 3.6%. However,
despite this increase, the percentage is well within the industry average.
During 2006, askari bank made net provisions of Rs. 1,128 million. Also during the year, the
method of making general provisions, on credit portfolio other than consumer portfolio, was
standardized, as explained in audited finance statements. General provisions against consumer
finance portfolio continue to be made in accordance with the guidelines provide in SBP
Prudential Regulations of Consumer Finance. The cumulative provisions at the close of 2006
increased to Rs. 3.5 billion. These provisions provide 97% coverage to the total NPLs as
compared to 102% last year.
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Agriculture Credit Financing
The role of agriculture in Pakistan economy is of pivotal

nature. Due to diverse geographical and climatic conditions
the country has tremendous potential for growth and
development in agriculture. However, adequate and timely
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financial assistance to the farmers will improve production potential of agriculture sector in the
country. The modern concept of agricultural credit envisages establishment of an efficient
institutional credit system to serve as a package of credit, supplies and knowledge for the
overall strength of the farmers who at present suffer from low productivity and financial
insecurity. A successful credit evaluation system, therefore, should have the basic ingredients
to provide adequate amount at the right time and in the right form to help farmers in making a
productive use of loan funds.
Askari bank’s agriculture credit schemes which were launched in June 2004, under the
umbrella of Agriculture Credit Division continue to be an attractive product for meeting ON
farm and OFF farm financial requirements of the farmers. The credit schemes were introduced
under the title of “Askari Kissan Agri Finance Program (AKAFP)” with the objective of:
• Providing financial assistance to small farmers.
• Ensuring adequate and timely availability of credit.
• Facilitating effective water management system.
• Encouraging and promoting mechanized farming.
• Providing means for better access to markets.
• Promoting livestock development.
• Providing inputs finance for effective crop management.
AKAFP ---- Features

The Askari Kissan Agri Finance Program (AKAFP) has been designed to meet ON FARM /
OFF FARM credit requirements of farmers on the most convenient, flexible, easy terms and
conditions. The program features:
• A broad array of credit lines designed to meet farming requirements.
• Repay and borrow at your convenience on revolving credit basis at lowest mark-up
rates renewal able after three years.
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• Convenient repayment terms based on cash flow abilities.

• Availability of leased Tractors / Transport without Land / Collateral.
• No Hidden Cost.
• Availability of interest free package for inputs and tractors etc.
• No Pre-adjustment penalties.
• Earn prompt payment Bonuses and reduce financial costs.
• Insurance cover of leased assets, animals, crops and life assurance of borrowers.
The bank is extending short, medium and long-term loans to the farmers for Crops, Dairy
farming, Poultry, Fisheries, Forestry and Orchids. Loans are also provided for farm
mechanization, transportation, marketing of agriculture produce, storage, land improvement
and aabpashi.
Askari bank’s Agri business philosophy is in line with SBP strategy for increasing the outreach
and flow of agriculture credit coupled with product changes, delivery alternatives, and risk
management, loan pricing and strategic presence.
During the period under review, the growth and performance of the portfolio remained
encouraging. The number of designated branches for agriculture credit increased from 12 to 46
and customer base by 90% as compared to last year. New dairy farming schemes were
introduced for establishment of model dairy farms, milk collection centers, installation of milk
cooling tanks and purchase of cattle etc.
The bank proactively participated at various provincial and national forums for the
development and capacity building for the agriculture sector. Askari bank is working as partner
with National Reconstruction Bureau for implementation of e-passbook system with National
Reconstruction Bureau and providing platform for integration of the system for the benefit of
all stakeholders.
The division remains proactively engaged in evolving policies and procedures for
strengthening the credit framework for the benefit of all stakeholders, and is determined to
make its full contribution towards ensuring that Pakistan is a food and fiver surplus country.
Kissan Ever Green Finance
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Askari Bank has launched this program with the sole motive to provide dignity, prosperity and
freedom to the tiller of the land. The program is designed to help small, medium and large
farmers in meeting their short-term input requirements against one time sanction and
automatically renewable upto 3 years subject to its stipulated utilization/periodical adjustment.
The credit line is sanctioned in the light of available cash flows and input requirements i.e.
Seeds, Fertilizer & Pesticides etc.
Salient Features of the Program are given as:

• Farmer opens a profit earning "Askari Ever Green Account" with the branch. A special
cheque book is issued to the farmer.
• Revolving credit limit as "Ever Green Agri Finance" is available to the farmer against
security i.e. mortgaged charge on Agri land through Zari Pass Book.
• Hassle free, automatic renewal upon adjustment of entire principal amount with mark-
up once in a year.
• The account is farmer friendly which benefits the farmers both ways. If the account is
in credit, it earns profit; otherwise it provides instant finance, to the farmer for his
agriculture needs.
• The mark-up is charged for the actual days the finance is utilized.
• Profit on credit balances will be paid on half yearly basis as declared by the bank on
PLS savings accounts.
Kissan Tractor Finance
Traditional modes of cultivation via Bullocks, Camels,

horses etc can no longer keep pace with the demands of
present times due to manifold increase in the
population. Power in the form of modern technology is
therefore the need of the hour. To meet this emergent
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requirement, Askari Bank has launched an Askari Kissan Tractor Finance to bring power to the
fields.
Salient Features of the Program are:

• This program has been designed to benefit the owner as well as non-owner farmers.
• The farmer will have privilege of availing non-funded facility at a reduced cost under
this program on account of more equity participation.
• Although the facility is available for a period of five years. However, good farmer
bonus will be available to the borrower in case the loan is repaid as per terms of
sanction.
• Priority in delivery of tractor will be given by manufacturer as per arrangements with
the bank.
• The farmer’s life & tractor will be insured against contingencies, which will provide
comfort and piece of mind.
Kissan Aabpashi Finance
Agriculture farming is impossible without adequate water.

We can combat the prevalent water scarcity by harnessing
more natural resources. Increased use of mechanical means
thus provides a ready alternative. Keeping in view the
scarcity of water, which is the lifeblood of arable lands, Askari Bank has started a program for
farmers, to finance installation of Tube-Wells (electric, diesel and solar energy units) water
management equipments and water channel development etc., which will help farmers to make
optimum use of limited water resources.

• To facilitate the farmer, to overcome the scarcity of water.
• To develop mechanical water resources, sprinkler and drip system etc.
• To avoid traditional / inefficient modes of irrigation and waste of available water.
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• To manage natural / available resources through water management practices.
Kissan Live Stock Development Finance
In order to supplement the income of the farmer, Askari

Bank has launched a program enabling the farmer to
purchase Milk Animals, Goats, Sheep, Poultry and
Fisheries without incurring extra expenditure because of
availability at his farm. He will be able to get milk, meat
and eggs etc., which normally do not form part of his diet. This program has the added
advantage that besides fulfilling his own family’s consumption needs he will be able to market
the surplus and earn additional income. This will further improve their cash flows to repay
their other Loans / Revolving Credit on due date.

• The program will provide regular day to day income to the farmer to meet his own
consumption and surplus to be marketed.
• This will revive / accelerate and supplement the income generating capacity.
• It will enhance the repayment capacity of the farmer.
Kissan Farm Mechanization Finance
Beside Power at the farm i.e. Tractor, the benefits /

advantages of power are maximized with the use of
Mechanical Support i.e. modern and improved equipments
which essentially complement one another due to their cost
effectiveness and time efficiency. Askari Bank has
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launched an Askari Kissan Farm Mechanization Finance for the assistance of the small farmers
and provides finance for farm equipment, trailer, thresher, drills & motivators etc.
• Under this program the farmer will get benefit of use of modern agricultural tools,
implements and equipments which are cost and time effective.
• Improves per acre yield of Agri crops and quality of agriculture produce to get good
price in the market.
• Helps to match / compete with international standards for exportable agriculture
produce.
Kissan Farm Transport Finance
A grave handicap that afflicts our farmers is their

inability, due to lack of proper facilities, to take their
produce to the market through efficient means of
transportation. This adversely affects the freshness,
quality of the product and denies them the desirable
Price-Fetching opportunity. Conversely, they lack mobility to acquire much needed inputs
essential for their farming needs. One can safely conclude that if provided with appropriate and
speedy transport, the farmer can benefit by enhancing his selling ability and thus increase his
income / cash flow. it is pertinent to mention that a number of Banks, Leasing Companies and
Private Agencies have geared their marketing efforts to concentrate on and have mainly
captured the urban markets. There is no support provided to cater to the transport needs of
deserving rural farmer’s community. Askari Bank true to its commitment has taken the lead to
launch Askari Kissan Farm Transport Finance.
• To increase mobility and access of the farmer to the markets.
• To lower the burden / cost of transportation against hired transport.
• To create awareness of market movements in order to obtain maximum price of their
produce.
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• This will also supplement the income of the farmer which will ultimately enhance the
repayment capacity of the borrower.
• Additional income can be generated if used for hired services to the fellow farmers.
Islamic Banking Services
Islamic Banking was launched under the brand 'Askari Islamic

Banking', by opening 6 dedicated Islamic Banking branches in
major cities of the country. Further expansion is planned with
improved capabilities for offering products conforming to the
Shariah principles. Askari Islamic Banking opens the doors for Halal banking solutions. Our
objective is to put in place an efficient banking system supportive to economic justice and
welfare of society in line with Shariah standards.
A comprehensive range of Islamic Banking products and services is being offered, in order to
meet customer's demand of Shariah Compliant Banking, in the following areas:
• Islamic Corporate Banking
• Islamic Investment Banking
• Islamic Trade Finance
• Islamic General Banking
• Islamic Consumer Banking
Islamic Banking products have been approved by the Bank's Shariah Advisor. As per Shariah
requirements, funds and products of Islamic Banking are managed separately from the
Conventional Banking side. All funds obtained, invested and shared in Halal modes &
investments, under supervision of the Shariah Advisor.
As every body knows that:

"Knowledge without practice is sterile”
Internship is the practical experience which is gained during the study. It is the part of our
M.Com study. So at the end during summer vacation, it was required to do internship. I
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selected Askari Bank Limited, Vehari Branch, which is located in my residential city. I enjoyed
much during the practical experience.
It was almost impossible to work in all the departments within that limited time. But on my
request, the staff of the branch provided me the opportunity to work in the different
departments which was in the branch, for the sake of practical knowledge. I am especially
thankful to branch manager, manager operation, all the staff and employees who cooperated
wit me very much.
On my first day of Internship, Manager handed me over the charge of Assistant to Accountant.
All the work which I learned during eight week internship is explained here according to
department in which I have worked as internee.
Account Opening / Deposit Department
Customer is a person who has some sort of account, either deposit or current or some similar
relation. A person becomes a customer when the bank agrees to open an account.
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It is contractual agreement between bank and customer after which both concerned parties
indulge in a mutually beneficial business relationship.
"Deposits are the blood of a Bank"
Acceptance of deposits is the real source of income of a bank. Deposits department is the
backbone of corporate banking. Deposit is often used to describe the money, which customers
of all kinds leave with the banks.
Deposits account can be defined as an account, which is
opened to earn interest.
The term deposit is highly misleading. It is not something deposited for safe keeping, like
currency in a safe deposit box. Bank deposits are not like that. When one brings currency to a
bank for "Deposit" the bank does not put the currency in a vault. It may put a small fraction of
the currency in the vault as "Reserves" but it will lend most of deposits to some one else or buy
an investment.
Like all banks, deposit department has acknowledged its worth as the most important. Almost
all the operations generate from the deposit department and with due course of time reflect
back to the deposit department.
In order to attract funds, bank has introduced various types of deposits schemes that may suit
the needs and tastes of a large body of depositors.
In this department, I gain the practical knowledge about opening account. This department
deals with opening current and saving account for its customers and all matters regarding
thereof.
Types of Customers
The customers opening current and saving accounts can be categorized as following.
• Individual
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• Firm
• Company
• Trust
• Staff
• Others
Opening Accounts
In order to open an account, first of all the customers have to fill a form prescribed by the bank.
The person is required to bring some reference or introduction for opening the account. In
askari bank limited, Introducer should be the person who has any account with bank.
There are various types of accounts which may be opened by any one like as trust, individual
…etc. some accounts are specific for some specific categories like as Basic Banking Account
for low level of income peoples. Following are the types of which I filled the accounts.
Types of Accounts
Current Account
• Current A/c is basically used to meet the daily transactions.
• No interest is paid on current accounts
• In case of current a/c customers can draw money at any time when customer needs it.
There is no restriction that customer cannot draw money before such & such time so we
can say there is no time limit.
• Limited company, partnership firm, club, society or association joint and sole
proprietorship can open this account.
• Minimum balance acceptable by the bank to maintain the account is Rs.5000/-.
• There is no minimum balance requirement by the askari bank limited.
• PLS
• In case of saving accounts, account holder gets profit.
• In Bank askari bank limited saving a/c is used as current a/c, & there is no main
difference between current & saving account except profit. Limited company,
Partnership Company, joint & sole proprietorship can open this account.
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• Balance acceptable by the bank to open this account is Rs.2500.

• The profit is given to the customers at minimum balance during the month.
• Minimum balance requirement is Rs. 10000.
• If balance is below 10000 or no transaction has been made by the client within six
months then some charges are deducted by the bank.
• 2½% zakat is deducted at 1st Ramazan
Basic Banking Account (BBA): -

• It is special type of account.
• It is opened for low salary / income persons.
• It is opened by Rs. 1000.
• Two times by Cheque or cash, amount can be withdrawal or deposited.
• No zakat is deducted.
• It is just like as C.B. Account nature.
• Evidence of profession is required.
• Infinite transactions can be made by ATM cards in this account but upto the specified
amount by the SBP.
Foreign Currency Current Accounts

In these accounts depositors can deposit a sum of money in any of the above-mentioned
currencies. The depositor can also withdraw any amount subject to he availability of the
amount. No profit is given on these accounts and no restriction as per the minimum balance
required.
According to my practice in bank, when a customer wants to open an account, the bank officer
gives him an application form. All information, which is necessary to be known by the bank,
are requirements of the application form. Form also requires the essential documents to be
attached by the customer.
Required Documents
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• Basically following information is required to open an account:

• Title of Account
• Full Name of Applicant
• Occupation
• Address
• Telephone No.
• Currency of account
• Nature of Business
• Introducer’s Name, Address & Signatures
• Special instruction regarding the account
• Initial Amount of the Deposit
• Signature of the applicant
• Reference’s Signature and name
Some important information regarding introducer e.g. the name and account number of the
introducer is written on the form. Then in order to find out whether he is a true introducer or
not, a letter is sent to him thanking him for this introduction so that anything wrong may come
into notice.
There are different requirements for different types of accounts and accountholders.
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Other Activities in This Department

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Open the account is not only the job of account opening department. Beside this, there are lot
of activities which performed this. That’s why it is said the backbone of the bank. In askari
bank limited, account opening is the main functions and the functions which I am going to
explain here are the secondary functions. In large branches, these activities are performed by
other department except “ISSUANCE OF CHEQUE BOOK”.
Issuance of Cheque Book
During my period of internship, I observed that when an account is opened then a cheque is
issued to the customer for drawing his money at per rules. Following procedure is adopting for
the issuance of cheque. A cheque book contains;
• ten,
• twenty five,
• fifty or
• Hundred leaves.
The cheque book also carries a requisition slip for the issuance of the new cheque book. This
slip is duly filled and singed by the customer. The signature of the customer is verified by the
bank and new cheque book is issued to the customer and serial numbers of the cheque are duly
entered in the book of the bank. Along with the signature, person should also write his full
name & address.
Bank deduct the charges five rupees per leave from the customer’s account. The officer keeps
and maintains the cheque book register Cheque book inventory and cheque books issued are
recorded in this register. The account number for which the cheque book is issued and the
number of leaves are also recorded. One cheque in each cheque book is pasted for issuance of
new cheque book. If client fails to present this cheque then Rs. 200 fine along with five rupees
per leave are deducted form the client’s account for issuance new cheque book
Rupees Traveler Cheque: -
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Famously know as RTC, is the alternative for paper currency. It is against various standard lot
size paper currencies like as one RTC is equal to Rs. 2500, 5000, 10000. Askari bank issues
one RTC of Rs. 10000. It has serial number. In case of lost, encashment of RTC can be
stopped. It is convenient to carry and save. Following are the feature and procedure which I
learnt to issue it.
• First fill the form then submit the cash to the cashier. It can be issued against cheque of
this branch account.
• Send the RTC to the manager operations for sign.
• Profit is given on each RTC after two months if According to rule if it is not used.
Call Deposit Receipts: -
Used for government customer. It means it is used by the clients having transactions with the
government. Normally government contractors used it.
• Cash or cheque is deposited.
• It is in nature of current account.
• It is issued free and it has no limit.
• No profit is made on CDR.
• It can be issued to every one whether existing customer or walk-in-customer. Not
necessary to open the account by walk-in-customer.
• It is refundable. One can say it is simply “PAGGRREE” (security).
• It is issued against two percent down payment of the contract amount.
• Initial deposit should be in cash for open such type of account
Term / Fixed Deposit
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When customer places money with a banker for a fixed period a deposit is termed as
fixed/term/time deposit.
Some important features that I have done in practice are that:

• No cheque-book is required.
• Time period varies from 3 months, 6 months to 1 year & up to 5 years. The profit rate
varies according to the time period for which it is deposited.
• It is in standard lots. Minimum is Rs. 2500.
The term deposit is renewed automatically on the date of maturity at the SBP's applicable
rolling rate of interest; the acknowledgement of receipt of money is taken on the letter of
authority after its proper identification. If a deposit receipt is lost or stolen a duplicate receipt is
issued after obtaining an indemnity. It is necessary to obtain a duplicate receipt if original is
lost because it is so worded that banker undertakes to repay the amount on the presentation of
duly discharged receipt.
Deposits on joint names are payable to conditions agreed at the time of their acceptance.
On expiry the depositor presents the deposit receipt (advice) dully stamped and gets the money
in cash or transfer to his account. It is legally, a depositor cannot demand the payment of his
fixed deposit before the expiry of the stipulated period but generally to oblige the customer,
banker allows them to withdraw their fixed deposit before maturity. In these cases customer are
asked to forgo interest. Deposit receipts issued is called fixed deposit receipts.
Lockers
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It is one of the facilities which is provided by the askari bank limited to its valuable clients.
The fee which is received from the customer received at the commencement of the year.
In askari bank limited, lockers are available in the following forms;
• Small Locker (Rs up to1300).

• Medium size locker (Rs.1800).
• Large size locker (Rs.3200)
• Extra large locker (Rs. 4000)
• Extra Extra large )Rs.6375)
The amount which is mentioned ahead of the locker it is the amount which is charged from
the customer at the commencement of the every year.
Conditioned
• Locker can be issued to that person which have account .
• Insurance is paid by bank.
• Two numbers are issued. One is the key and second is locker number.
• Locker issuance may be for cash or cheque. In case of cheque, customer should be of
account holder of this branch and cheque should of this branch.
• Key deposit Rs 1,175
• Late payment Rs 135
• Breaking charges Rs 2650
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Clearing Department
Second department toward I moved, was the clearance department. It is the department which
is responsible for the clearance of the inward and outward instruments, presented for collection
by the clients or third party.
Clearing is the system by which banks exchange cheques and other negotiable instrument,
drawn on each other, within the specified area, and secure payment for their clients through
clearing house specified time by book entries i.e., State Bank of Pakistan..
Nearly all the banks provide a wide variety of services to their depositors. One valuable service
provided is that of clearing. Clearing department also plays an important role in performing the
activities of the bank.
The basic function of clearing department is to provide services to customers in collection of

their cheques of other banks, whether they are in city or outside the city. The customer can get
the money in his account at Askari Bank Limited from the cheques drawn on another bank.
The bank accepts the cheque in the clearing department & later on collects these cheques from
the bank on which it is drawn through the clearing house
Every bank acts in two ways i.e.
Paying Bank
• (The bank, which pays the cheques of his customers, presented by other banks.)
Collection Bank
• (The bank, which collects the fate of cheque on the behalf of customers, presented by
other banks.)
Types of Clearing
Clearing department deals with the two type of the clearance.
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These are stated below:
o Outward clearing
o Inward clearing
O/C Procedure
Similarly cheque, which is drawn on other, bank and presented to askari bank limited, Vehari
branch, Vehari are known as outward clearance for askari bank limited, Vehari branch. So
outward clearing results in inflow of funds from paying bank into the clearing account
maintained with clearing house increasing the balance in the clearing account.
Rs. 500 or 16% of instrument amount, whichever is high, deducted from the OBC instrument
amount.
I have done following process in O/C

• Receive cheque on the counter and scrutinize it on the following lines
• Cheque is drawn on a bank that is a member of clearing-house
• It is deposited in an account that is being maintained in the branch
• It is in order as to the name of payee, date, amount in words and figure and correctly
endorsed where required.
• Check the pay-in slip and counter foils are correctly filled in.
• Put the banks special crossing stamp & clearing stamp of the next day.
• Detach cheque from pay-in slip
• Sort out cheque bank wise and branch wise.
• Input in system for each bank
• Prepare clearing schedule
• Attach the cheques with clearing schedule
• Handover the instruments to NIFT
Stamps
• Special Crossing
• Clearing stamp of next working day.
• A/C payee’s only
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• Payee endorsement confirmed
Outward Return
Cheque returned will be treated as inward cheque. In the case of cheque is returned because of
wrong presentation e.g., clearing stamp not affixed or wrong discharge given on the cheque
etc. it should be re-lodged in the next day clearing after rectification of the mistake.
If cheque is returned for any other reason then;

• Enter the cheque in cheque return register, mentioning the reason as appearing on the
cheque return memo received from the paying bank
• Advice the customer about fate
• Return the cheque to the customer after getting sign on register
• Collect the cheque return charges as per S.O.C
Inward clearing
Cheque drawn on askari bank limited and presented to other Banks or handed over to askari
bank limited agent in clearing house. That is inward clearance for askari bank limited. So
inward clearing results in outflow of funds to collecting bands reducing the balance in the
clearing account.
• Receive instrument payable by us in inward clearing.
• Time is the essence of clearing, if not returned unpaid then it is presumed to be paid
• Check the total number of instrument matches with the clearing schedule and get
signature on it.
• Scrutinize the cheque on following lines
• Signature verification
• Proper presentation
• The cheque is in order as to the name, date, amount in the words and figure
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• Cheque is not damaged or torn nor post dated or stale, alteration, correction and cutting
have been authenticated with full signature of the customer.
• Display customer account on the screen and observe
• Sufficient balance
• Stop payment instruction
• Cheque is from a series of cheques that has been issued to that particular customer.
Post Cheque
• Cancel the cheque
• If limit account refer to the credit department
• PO, DD to respective department for processing and payment (enter in the DD Payable
and Pay order payable register)
Inward return
Return may be of any reason. For example
• Clearing stamp not affixed
• Defect in cheques i.e., post dated cheque
• Insufficient balance
• Once the decision is made to return the cheque so deliver to NIFT.
Collection
Clearing department deals with money transfer form on place to another. It uses various
instruments for remittance purposes. These instruments are:
• OBC
• IBC
Outwards Bills for Collection (OBC): -
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Outward Bill for collection, the cheques drawn on the bank that is out of city. These cheques
are not collected through NIFT. The banks clear these by sending them to the relevant branch
through mail. This service includes all activities involved in collecting their claims on
customers of the other branches of same bank or of the other banks, located outside the
clearinghouse area.
Procedure
• Receive instrument, this instrument
• It is in the name of the account holding customer
• Must not be post dated or stale
• Must have same amount in words and figure
• Affix special crossing stamp on the face of instrument
• Affix OBC stamp on the instrument, and on pay-in slip
• Entry in OBC register
• Write OBC# on the instrument
• Prepare outward bill for collection schedule
Inwards Bills for Collection (IBC): -

The cheques drawn on the bank when comes from outstation, it is called inward bills for
collection. Cheques are entered in inward bills for collection register. The date, signature,
crossing etc. is checked and if all things are in order the amount is realized to the relevant
bank. This cheques should have the stamp by the branch i.e. our branch endorsement is
confirmed.
Procedure
• Receive instrument through mail and scrutinize the instrument
• Must be drawn on a customer’s account
• Must not be mutilated
• Must not bear unauthenticated corrections
• Must not be post dated or stale
• Must bear regular endorsements, if any
• Must have the same amount in words and figure
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• Entry in IBC register
Remittance Department
The need of remittance is commonly felt in commercial life particularly and in every day life
general. A major function of any banking system is the transfer of funds from one client or one
place to another. By providing this service to the customer the bank earns lot of income in the
form of service charges.
“When money is transferred from one place to another place or from one country to another
country to fulfill the requirements of the customers by the order of the customer, it is called
remittance.”
I worked in this department and learned that what type instruments is used by the askari bank
for transferring of money ? The instruments of remittances are
 Demand Draft
 Payment Order
 IBC
 OBC
 Telegraph Transfer
Demand Draft
DD (Demand Draft) is a cheque issued by the branch of the bank on behalf of the customer to
other branch of the same bank to pay the certain amount to the customer. The bank charge
nominal commission on issuance of demand draft. If lost the holder must in personal request
the bank in writing for the duplicate. The bank if satisfied can issue a duplicate demand draft
after getting the indemnity. The Account of person should be in another branch after 3 days he
can received money.
Parties
It involves four parties: -
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• Beneficiary (in favor of DD is issued).

• Beneficiary bank.
• Applicant of DD
• Applicant’s bank
Documentation
 A printed application form is provided for filling in completely and signing by
the applicant.
 The commission is charged by the bank is different it is depend upon the
amount which is sent the mostly which is charged by the bank is Rs. 200 and if
the amount is Rs. 900000 then bank charge Rs.900.
 Bank serial No.
 No.DD
Process for Outward Demand Draft through Cash

When DD is made at customers request on cash the process goes as under:
• First customer comes to bank and fills the DD application form.
• Designated officer verifies the signature and particulars of Application.
• Designated officer then fills in the charges/commission on application form.
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• Customer then deposits the money and gets the application stamped and signed by the
cashier.
• In Cash department, entry is made in General Ledger Account.
• Cashier sends the application back to designated officer who makes the DD by debiting
Transit.
• After Preparing DD two-attorney holder signs it.
• Three copies of DD are prepared
• Original goes to customer
• Office copy retains with designated officer for reconciliation.
• One copy sent as an advice to drawee bank.
Process for Outward Demand Draft through Account

• When an account holder of Bank through his cheque makes DD then first customer
comes to bank and fills the DD application form. A cheque is also required of the
minimum amount of the DD.
• Designated officer verifies the signature and particulars of Application and verifies its
validity with the cheque.
• Designated officer then fills in the charges/commission on application form.
• Designated officer after verification on particular of cheque such as balance, signature,
date, figure in words and digits etc. debits customer and credits the transit account.
• In next step officer debits the transit and makes DD.
• After Preparing DD two-attorney holder signs it.
• Three copies of DD are prepared
• Original goes to customer
• Office copy retains with designated officer fro reconciliation.
• One copy sent as an advice to drawee bank.
Process for Inward Demand Draft

When some other bank draws DD or branch on our branch process goes as under.
• First the Branch receives the Advice from the issuing branch by courier.
• Following particulars are verified.
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• Name
• Date
• Attorney Holders Signature
• Amount in words and figures
• Cutting etc.
• The designate officer after verification enters the particulars in DD register and makes
the entry in system by giving credit to DD payable.
• In next part the officer through clearing receives the original instrument or non-account
holder physically presents the instrument.
• Officer again verifies the particulars and if the DD is received through clearing then
designated officer enters it in DD register and giver credit to customer by debiting DD
payable.
• If the customer needs the amount in cash then it is verified that the instrument bears the
NIC no of the beneficiary on it
• The instrument is marked as PAID and amount is paid to customer.
Charges of Demand Draft:
• For Rs. 1___ 100,000 = .11% or minimum Rs. 55 only. (whichever is high)
• For Rs. 100,001___ 1,000,000 = .08% or minimum Rs. 225 only. (whichever is high)
• Over Rs. 1,000,000 = .06% or minimum Rs. 1100 only. (which ever is high)
Pay order
Pay order is also a cheque drawn on the bank but it is payable in the same city. The bank also
charges nominal charges for its issuance.
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Transfer of money through Pay Order

Pay order is also called as cashier order, manager's cheque, & banker's cheque, & cheque on
services .Pay order is an instrument through which payment can be made from one bank to
another bank within city.
• First of all it is not necessary that the person who wants to issue pay order, should be
the customer of the bank. So anybody either he is customer of the bank or not can issue
pay order.
• It has the same procedure to issue as DD has.
• It the easiest and safe way to transfer the money locally without carrying.
Parties
• It involves three parties: -
• Bank, who issue it.
• Drawer, who give application for pay order.
• Drawee (the person in which favor it is issued)
Documentation
The party who requires a pay order will get a printed application for the bank
He will fill it and deposits the amount and commission. The commission is different.
IBC (inward bill collection)

In IBC when a check came from the other branch to the vehari askari branch and askari branch
vehari give amount to person.
OBC (outward bill collection)
In OBC when Askari branch vehari give check to the other branch.
Telegraphic Transfer (TT)

Telegraphic transfer is a instant transfer o funds. Through this method applicant can
transfer money from one place to another place through telecommunication.
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Documentation
Fill a form with ID card

Account should be
Cash Department
Cash department of askari bank limited is given the complete responsibility of handling all
receipts & disbursement of cash, as a result of transaction & near cash items such as traveler
cheque etc (when they are issued against cash).
It is the sensible department. No one can enter into the cash counter cabin without permission,
even account opening officer for verification of anything else. I also worked with the cash in
charge who sit behind the cash counter. It was allowed to move in the cash In charge officer
freely but not go the cash counter cabin. So whatever I learnt learnt from the cash in charge.
Following are the major functions of the cash dealing department of askari bank limited.
• Cash receipts (or receive deposits)
• Encashment of valid instruments
Cash department of askari bank limited is a separate close part covered with glasses. No one
other than cash department's employee is allowed to enter into that area. That’s why I did not
work in this department but I have gained knowledge about it from teller of askari bank
limited.
Cash Receipt
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The depositor uses cheque deposit slip (or cash deposit slip) for depositing the amount.
Information required
All the details are required regarding date, account number, and amount in words & figures,
title of account & signature of depositors.
Procedure
The cashier first verifies all the requirements of the cash deposit slip that whether these are
fulfilled or not & verifies the amount written in words & figures. The deposit slip is stamped,
cash is received & second copy is given to the depositor.
Encashment of a Cheque
Requirements to Encash a Cheque

Following requirements are essential to encash a cheque.
No Stop Payment Instruction

No stop payment instruction is presented for the account.
Instrument in Writing
It must be in writing. However, there is no bar on writing material but the cheque
written with lead pencil is not honored by the bank in practice because unauthorized
alternations can also easily be made are difficult to detect so a cheque should be pen
written..
Cheque must not be crossed

The cheque, which could be presented to the drawee bank for encashment over the
counter, should not be crossed whereas crossed cheques are deposited into account.
The sum of money must be certain

A cheque must contain an order to pay a certain sum of money only amount in figures
and words must be same.
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Drawer’s Signature
The document in order to be validly called a cheque must bear the drawer's (account
holder) signature or that of his authorized person. At the time of opening an account a
customer provides a banker with a specimen of his signatures, so the signature on the
cheque must tally with that.
Sufficient Balance
Sufficient balance should be present in the customer's (drawer's) account to encash
cheque.
Stop Payment Instructions

If a customer lost his cheques book he would make stop payment instruction to cash
department of askari bank limited stop payment instructions can be made in two ways.
• Verbal
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• Written
The customer informs the cash department on telephone or face-to-face meeting to stop
payment, but later a written instruction must be made on a prescribed form.
If customer make stop payment instruction to the bank and bank make payment to some one
else after lodgment of stop payment instruction in the computer, Bank would become liable for
this fault.
Agri-Credit Department
Vehari is an agricultural area. Majority of the population depend on the cultivation for living.
Government of Punjab is providing the incentives to the farmers for the betterment of the
agriculture sector. Askari bank limited is one of them who is paying the special attentions on
the agriculture sector. During my internship I observed that major of the Askari bank limited
agriculture products or services have been introduced by the top management itself. These
products are not the copied of other banks.
.
the in charge name of this department is Mr.Nazeer Mr.nazeer told us
that they issue two type of loan
1. Commercial loan
2. Agriculture loan
Commercial Loan:
In commercial loan bank issue loan to business people etc,
Agriculture Loan:
This type of loan issue to landlords and farmers.
Condition to issue loan:
The askari bank has their own criteria to issue loan to farmers and to
landlord they don’t issue to that person loan which have not “5”acres land.
So 5 acres must be possessed by the person who applies for loan. And
every acre income must be 30000, and the interest which is charge by the
bank is 18% per acre if the income of that is 30000
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And also check that either he is not defaulter already of any bank.
Process of issuing loan:
1. Firstly when person came to bank he should have two pass books one
is in green color and second is in yellow color. Yellow is submitted
into the tahseel office and green is submitted to bank. Green
passbook consist on following information
2. NIC number and its copy
3. Passport size picture tested with pattwari signatures
4. Name and father name
5. Land information
6. How much he pays in one year
the documents which attach with agriculture credit
 Interoffice memo
 Financial facility agriculture’s finance
 Check-off list for agriculture
 Credit Sanction advice
 Cash Flow Statement
Interoffice memo:
It is written by the branch manager to head quarter of askari bank that

the borrower submitted his all document and this document also show
the credibility of borrower from the branch manger
Financial facility agriculture’s finance:
In this document bank show that which purpose for borrower use to loan
Check-off list for agriculture:
This document show the
 Repayment capacity of borrower

 Assurance of proper utilization of loan
Credit Sanction advice:

Include
 Branch number
 NIC
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 Address
 Purpose of finance
 Account number
 Passbook No
 Land Holding
in this day Mr.Nazeer told us when borrower take loan then we check that
either he take loan from other bank the document which is send by the
“SBP” to askari name is “consumer protection”
Name:
Father Name Male Female date

of birth
Self-employed Name& address of Employer

Businessman/Professional: businesses
NIC
Account number
Address
Detail
Overdue (days)
Accoun Limit Positio Presen

30+ 60+ 90+
t n t
As of Balanc
e
A B C D E F G
Ever 30000 30/06/1 31974 0 0 0
green 0 0 9
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Ever green Account program is started by askari bank that want to

promote the framer and account has been opened and issue a passbook
to farmer
Limit:
It show that farmer draw amount from another bank
Position as of:
It show that Farmer draw amount that date
Present Balance:
Show that how much balance exist in its Account to which he pay to
other bank
Over due:
It show that either borrower give late installment of loan to other bank
then how much late he pay to bank? It is different like 90, 30 etc,
Following are the products are dealt in the Askari bank limited, Vehari branch
• Askari Kissan Ever Green Finance.

• Askari Kissan Tractor Finance.
Askari Kissan Ever Green Finance

• It is in nature of running finance.
• It is sanctioned up to maximum fifty percent of the land or field’s cost price.
• No such type of requirement that loan must be used to specify subject. Simply purpose
of loan borrowing isn’t mentioned.
• It is for multiple purposes used.
• Markup rate is applied to the amount which is withdrawn by the borrower from his
account, not on whole amount.
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Askari Kissan Tractor Finance
• It is in nature of term finance.

• Amount of the loan is paid directly to the tractor dealer rather than the borrower.
• Markup is paid on the whole amount of loan.
• It is issued for tractor purchasing specifically.
• Borrower can not withdraw the amount from his account.
Down payment
• For five acre or above, five percent down payment.
• For less than five acre, thirty percent is down payment.
Mark up
• Current markup on Agri-term finance is thirteen percent.
• It varies from time to time. So, markup rate on finance is varying with the variation and
borrower has to ay according to new markup percentage.
Insurance
• Of crops / fields, 2% of total loan as insurance is charged. Askari bank has the contract
with the united insurance.
• On life following provisions are made.
• Less 55 years----------0.3% of total loan amount.
• 55 to 65 years---------0.5% of total loan amount.
o Health certificate is required.
• Above 65 years-------one percent of total amount.
o Health and medical certified is required.
• Askari bank limited has the contract with the metropolitan insurance co.
Evaluation Survey:
• For less then .5 million, no evaluation of land is require4d.
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• For above .5 million, evaluation is required which is made by the evaluation

companies, approved by the PBA.
Procedure:
• Application is given to Agri-credit officer.

• ACO check documents and if found right and able to get the loan, further procedure is
run.
• All documents along with application are forward to ACO. Application also mentioned
type and limit of loan. Sometime limit is mentioned by ACO.
• These documents along with application are forward to regional manager, Lahore.
• RGM check it and if found correct then send to agriculture credit department (ACD).
• After completing procedure and requirements, ACD send it back to RGM.
• RGM send these documents to Agri-department, document forwarding branch.
• Agriculture credit department send it to RCAD, Multan.
• RCAD sanction the loan limit and send back to Agri-credit department, document
sending branch.
• Now procedure is complete and loan is sanctioned.
• After all, documents are sent to RGM, Lahore for safe custody.
• Later, these documents can be required back by Agri-credit department for removal of
any discrepancy or for any other purpose.
Required Documents:
• Fard-e-malkiat.
• Khusra gardawri
• Osat bay
• Four attested photo copies of NIC.
• Two attested pictures.
• Fard-e-malkiat and attest copies of NIC of two guarantors.
• Aks Shajra.
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• NEC (non-encumbrance certificate).
CBSG Department
CBSG stands for consumer banking services group. It

is the department which is directly under the
divisional office. In branch it is under the branch
manager. It is in nature of personal finance. Lending
is made to the salaried employees without any
security, just on the salaries. Lending is made up to
fifteen months salary. Following are the features of
the financing under this department.
Features:
• It in nature of running finance.
• It works directly under the divisional office. In
branch it is under the branch manager.
• It is provided to the salaried employees.
• Up to fifteen salaries, loan is sanctioned.
• Normal markup rate is charged.
Required Documents:
• Two attested copies of applicant’ NIC.
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• Two attested copies of each two guarantor’ NIC.

• Evidence or voucher of salary.
• Fulfillment of application form.
General Credit Department
Credit comes from the Latin word "creditus" which means, "to believe." Credit allows us to
buy things, which might not be able to afford all at once by letting us pay over a period of time.
But to obtain credit, creditor believes that bank is trustworthy and responsible.
This is the department who provides the loans for the fulfillment of the needs. It sanctioned the
business loans, house loans and SME loans also.
I worked in this department for one week. As I have told earlier that Vehari is an agricultural
area. Around about 85% to 90% lending is made in agriculture sector by the Askari bank
limited, Vehari branch. In one week which I spent in this department, there was just one or two
case in the process. However I tried lot of to learn about it.
Terminologies:
Guarantees
When an application for advance cannot offer any tangible security, the banker may
rely on personal guarantees to protect himself against loss on advances or overdraft to
the applicant.
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Mortgage
A mortgage is the transfer of an interest in specific immovable property for the purpose
of security the payment of money advanced or to be advanced by; way of loan, and
existing or future debt, or the performance of an engagement, which may rise to a
pecuniary liability. The transfer is called a mortgagor, the transferee a mortgage.
Pledge
A formal contract whereby the borrower agrees to deposit goods/ documents with the
creditor on the condition that those will be redelivered to the depositor if the debt is
repaid or can be sold by the creditor if the borrower defaults. After recovery of dues
from sale precedes the surplus if any is paid back to the borrower Possession passes to
bank, ownership remains with borrower
Hypothecation
When moveable property/ goods are charged with the amount of debt but neither the
ownership nor the possession is passed to the lender. It is said to be hypothecated. By
virtue of letter of hypothecation bank can take possession of hypothecated goods in
case of default of the borrower.
Running Finance
The finance type in which markup is charged on the amount which the borrower use.
And on remaining amount which borrower has in the bank account, markup is not
charged. Common users of this type of finance are;
• Agriculturists
• Seasonal businessmen----etc.
Term Finance
The finance type in which markup is charged on the whole amount. It is irrelevant that whether
borrower use the portion of the whole finance amount or whole finance amount.
Common Required Documents:
The following documentation is made for loan.
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• An application or request letter for loan by the customer

• CSA (credit sanction advice).
• Legal opinion of the legal advisor of the bank (for the title deeds)
• Consent letter from the regional office
• Vetting Certificate (includes consent No., Facility whether fund based or no-fund
based, addresses etc.)
• Valuation of property any consultant or any panel of consultants approved by State
Bank of Pakistan
• Original title deed or sale deed
• Affidavit
• Mortgage deed
• Mutation document made
• Verification of the property by the bank
from the competent authority
• Hypothecation of stock certificate
(Running is to be given against 75%
margin of stock)
• Letter of hypothecation (duly signed by
the party)
• Note/Promissory Note (Bank prepared
itself, duly signed by the party, revenue
stamps of Rs. 100 put on it)
• Agreement of finance mark up (Contract
with party for taking mark up on quarterly
basis)
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Financial Ratios Analysis
Financial ratio analysis is the calculation and comparison of ratios which are derived from the
information in a company's financial statements. The level and historical trends of these ratios
can be used to make inferences about a company's financial condition, its operations and
attractiveness as an investment.
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Ratio Analysis enables the business owner/manager to spot trends in a business and to compare
its performance and condition with the average performance of similar businesses in the same
industry. To do this compare your ratios with the average of businesses similar to yours and
compare your own ratios for several successive years, watching especially for any unfavorable
trends that may be starting.
Following are the

ratios which I
calculated and
explained here.
Specialized
Analysis
Earning Asset to Total Asset
= Earning Asset / Total Assets * 100
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Year Result Direction

Rs. in 000’
147,344,027 * 100
166,033,588
2006 = 89%
130,140,120 * 100
2005 = 145,099,907 90%
Earning Asset to Total Asset
Comments 90%
90%
90%
89%
89%
This ratio shows the activities of 89%
89%
the management towards the 89%
88%
utilization of resources or assets 2006 2005
for return. Although in year

2006, there is slightly decrease in
the earning asset but still it is sufficient. It shows the effectiveness of the management as this
ratio is showing the higher percentage.
Return on Earning Asset
= Net Profit After Tax / Earning Asset * 100

Rs. in 000’
2,249,974 * 100
147,344,027
2006 = 1.53%
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2,021,996
2005 = 130,140,120 1.56%
Comments R e tu rn o n E arn in g Asse t
1.56%
This ratio shows the return on the
1.55%
earning assets. Simply we can say 1.54%
1.53%
that this is the profitability type
1.52%
ratio. Here is a decreasing trend in 1.51%
2006 2005
the return on earning asset. It is not
good. Due to economy situation,
there may be some limits which interrupt but there should be higher return on earning assets as
compare to current situation.
Net Margin to Earning Asset
= Net Margin / Earning Asset * 100

Rs. in 000’
5,619,608 * 100
147,344,027
2006 = 3.8%
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4,502,324
2005 = 130,140,120 3.5%
Comments N et M a rg in to E a rn in g Asset
3.80%
This ratio shows the capacity to
3.70%
earn by the spread of markup 3.60%
income over the markup 3.50%
3.40%
expenses. There is increasing
3.30%
2006 2005
trend in the current year as
graphical presentation is
showing. But still there is need of
further improvement.
Deposit Time Capital Ratio
= Deposit / Equity

Rs. in 000’ Rs.
131,839,283
11,053,230
2006 = 11.93
118,794,690
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2005 = 8,813,483 13.48
D ep osit Tim e C ap ital R atio

Comments
13.5
This ratio shows the contribution of 13
12.5
deposits and capital towards the earning 12
or assets of the financial institution. As it 11.5
11
is seems that there is decreasing trend in 2006 2005
the deposit time capital ratio but this is

due to the contribution of higher capital.
One can say that company has small deposits to invest or utilize for earning. It will be
preferable if there is an increasing trend in the deposits.
Loan to Deposit Ratio
= Loans / Deposits

Rs.
107,572,322
131,839,283
2006 = 0.82
96,149,137
2005 = 118,794,690 0.81
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Comments
Lo an to D ep o sit R atio
Higher of this ratio enable the bank 0.82
to have more return with risky

0.815
investment through the financial

0.81
institution. There is a higher ratio of
0.805
deposits as compare to loans. So 2005 2006
bank can interact to the general pubic

by a handsome markup and can earn a
large amount as earning. There is a margin of safety.
General Analysis
Investors’ Analysis
Earning per Share
= Net Profit / No. of Shares
Year Result Direction Remarks

Rs.
Decrease in earning per share due to the
2,249,974,000 economy condition and tuff competition
200,433,239
2006 = 11.23 in the market. It needs improvement.
2,021,996,000
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2005 = 150,701,800 13.42
E a rn ig P e r S h a re
Graph
1 3 .5
13
1 2 .5
12
1 1 .5
11
1 0 .5
10
2005 2006
Price Earning Ratio
= Market Price per Share / Earning per Share

Rs.
There is a decreasing trend in this ratio.
104.95 It is not sufficient. There is need of
11.23
2006 = 9.35 improvement.
126.80
13.42
2005 = 9.45
P rice E arn in g R atio
9.45
9.4
9.35
9.3
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Dividend Yield Ratio
= Dividend per Share / Market Price per Share

Rs.
It shows the portion of current
1 earning per common share. It is not
104.95
2006 = .0095 sufficient as it is showing the
decreasing trend.
1.50
126.80
2005 = .012
Dividend Yield Ratio
Graph
0.012
0.01
0.008
0.006
0.004
0.002
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Dividend Payout Ratio
= Dividend per Share / Earning per Share

Rs.
It shows the ratio of dividend
1 distributed among the shareholders.
11.23
2006 = 0.089 It is low ac compare to last year. It
may be due to high percentage of
retained earning.
1.50
13.42
2005 = 0.11
D iv id e n d P a y o u t R a tio
Graph
0 .1 2
0. 1
0 .0 8
0 .0 6
0 .0 4
0 .0 2
0
20 05 2 00 6
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Percentage of Retained Earning
= 100 – Dividend Payout Ratio
There is an increasing trend in the

ratio. Growing companies retained
2006 = 100 – 8.9% 91.11% high percentage of retained earning.
Here increase may be due to
expansion.
2005 = 100-11% 89%
P ercentag e o f R etain d E arn in g

Graph
91.50%
91.00%
90.50%
90.00%
89.50%
89.00%
88.50%
88.00%
87.50%
2006 2005
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Book Value per Share
= Total Equity / No. of Shares

Rs.
It shows the value of per share. There
11,053,230,000 is a decreasing trend in the book
200,433,300
2006 = 55.15 value per share.
8,813,483,000
150,701,800
2005 = 58.48
B o o k V a lu e P e r S h a re
Graph
59
58
57
56
55
54
53
2005 2 00 6
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Overall Comments
This type of analysis is also called market analysis. It gives the bird’s eye view of over all
performance of the organization like as price earning ratio dividend pay out ratio and earning
per share etc. is the gauge of the investors. This years company’s over all performance needs
further attention and improvement. Earning per share remains lower then the last year. This
may be due to high expenses ratio as compare to last years. Monetary policy also effect on the
EPS.
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Profitability Ratios
Return on Equity
= Net Profit After Tax / Equity * 100

in 000’
This ratio shows the return on the
2,249,974 * 100 total equity. There is a decreasing
11,053,230
2006 = 20.36% trend in the return on equity.
2,021,996 * 100
8,813,483
2005 = 22.94%
R e tu rn o n E q u ity
Graph
23.00%
22.00%
21.00%
20.00%
19.00%
2006 2005
Return on Total Assets

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= Net Profit After Tax / Total Assets * 100

in 000’
This ratio shows the return on total
2,249,974 assets (which has been utilized for
166,033,588
2006 = 1.4% earning). There is increasing trend.
2,021,996 * 100
145,099,907
2005 = 1.39%
Graph R etu rn o n Assets
1.40%
1.40%
1.39%
1.39%
2006 2005
Return on Investment
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= Net Profit After Tax / Investment * 100

in 000’
This ratio shows the return on what
2,249,974 * 100 you have been investment. There is a
151,154,358
2006 = 1.49% decreasing trend.
2,021,996 * 100
133,332,982
2005 = 1.52%
R eturn on Investment
Graph
1.52%
1.51%
1.50%
1.49%
1.48%
1.47%
2006 2005
Overall Comments
Profitability is the ability of the institution to generate earnings. Analysis of profit is of vital
concern to stockholders since they derive revenue in the form of dividend and others.
Increasing in the profit may increase the market price of share. Management use profit as a
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performance measure. Here the over all profitability of the bank remains lower then the
previous year. It may be due to economy condition of the country and the monetary policy.
From several years, competition environment has been increased in the country. Bank’s
management needs further improvement towards the profitability.
Solvency Ratios
Debt Ratio
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= Debt / Total Assets

in 000’ Rs.
There is a slightly decreasing in the
154,980,358 debt ratio. It shows the better
166,033,588
2006 = 0.93 condition. Public can trust on the
institution.
136,286,424
145,099,907
2005 = 0.94
Graph D ebt R atio
0.94
0.935
0.93
0.925
2005 2006
Equity Ratio
= Equity / Total Assets

in 000’ Rs.
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This ratio shows the equity ratio in

11,053,230 the total asset of an institution. There
166,033,588
2006 = 0.067 is an increasing trend in the equity
ratio. This may be due to the issuance
of or bonus of shares.
8,813,483
145,099,907
2005 = 0.061
E q u ity R a tio
Graph
0.068
0.066
0.064
0.062
0.06
0.058
2005 2006
Debt to Equity Ratio
= Debt / Equity

in 000’ Rs.
Ratio or equity is increasing as
154,980,358 compare to company’s debt as it is
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2006 = 11,053,230 14.02 clear by this ratio.
136,286,424
8,813,483
2005 = 15.46
D e b t to E q u ity R a tio
Graph
15 .5
15
14 .5
14
13 .5
13
2 00 5 2 00 6
Overall comments
This ratio shows the ability of the firm to meet the debt losses and shows the ratio of debt and
equity in the assets towards the earning. Solvency ratios show the better picture. One can say
solvency ratio is remaining same this year as the last year but with slight difference.
Company’s debt to equity ratio has been decreased. It means bank has been increased equity
ratio which is clear from the equity ratio. Debt ratio has been increased.
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Cash Flow Ratios
Operating Cash per Share
= Operating Cash / No. of Shares

in 000’ Rs.
There is a decreasing trend the per
8,356,023,000 share operating cash. This ratio shows
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2006 = 200,433,300 41.69 the funds flow per share. It may be

due to the bonus shares this year.
12,269,472,000
150,701,800
2005 = 81.42
Graph O p e ra tin g C a s h P e r S h a re
1 00
80
60
40
20
0
2005 20 0 6
Operating Cash to Cash Dividend
= Operating Cash / Cash Dividend

in 000’ Rs.
This ratio shows the decreasing trend
8,356,026 in the operating cash to cash
223,246
2006 = 37.43 dividend.
12,269,472
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2005 = 250,285 49.02
O p e ra tin g C a s h to C a s h D iv id e n d
Graph
50
40
30
20
10
0
2005 2006
Operating Cash to Total Debt
= Operating Cash / Total Debt

in 000’ Rs.
This ratio shows the bank’s ability to
8,356,026 cover the total debt with the yearly
154,980,358
2006 = .054 cash flow. There is a decreasing
trend in the ratio.
12,269,472
136,286,424
2005 = .090
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Operating C ash to Total D ebt

Graph
0.1
0.08
0.06
0.04
0.02
0
2005 2006
Overall Comments
These types of ratios indicate the flow of cash in an organization towards the arning. This ratio
shows the organization’s ability to meet any liability in terms of cash. Or one can say that how
much the organization has ability to need the others like as cash dividend, total debt….etc. this
years’ cash flow ratios shows the decreasing trend overall as you can see that operating cash
per share cash flow has been decreased. Firms’ operating cash to cash dividend and total debt
ability has also been decreased. This coming year, bank need more operating cash flows
towards earning and to meet the deficiency so that investors and general public can interest in
the bank’s policies
“In nutshell, banks ability to earn has been effected. Profitability ratio and cash flow has also
been affected. Solvency ratios show the better trend as the bank has been increased the equity
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ratio as compare to debt this ratio. This may also be one of the causes of company’s low profit
as compare to last year. But other indicators indicate that bank is in growing progress. So in
expansion it needs further capital. This low earning is temporarily basis.”
Trend Analysis
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Horizontal Analysis
Profit & Loss Account
Description 2003 2004 2005 2006 Speed Dire- Trend

ction
Mark up Earned 100% 110.15 215.55 309.22 69.74 Favorable

% % % %
Mark up Expenses 100% 80.98 310.11 505.75 135.25 Unfavorable

% % % %
Net Mark up Income 100% 125.09 169.96 208.59 36.20 Favorable

% % % %
Total Non-Interest 100% 171.27 162.78 224.30 41.43 Favorable

% % % %
Income
Total Non Interest 100% 128.37 180.44 228.41 42.80 Unfavorable

% % % %
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Expenses
Profit before Tax 100% 149.48 150.34 175.98 25.33 Favorable

% % % %
Profit after Tax 100% 174.37 183.31 203.97 34.66 Favorable

% % % %
Mark up Earned
2006
2005
2004
2003
0% 50% 100% 150% 200% 250% 300% 350%
Mark up Expenses
2006
2005
2004
2003
0% 100% 200% 300% 400% 500% 600%
Net Mark up Income
2006
2005
2004
2003
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0% 50% 100% 150% 200% 250%
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Total Non - Interest Income
2006
2005
2004
2003
0% 50% 100% 150% 200% 250%
Total Non - Interest Expenses
2006
2005
2004
2003
0% 50% 100% 150% 200% 250%
Profit before Tax
2006
2005
2004
2003
0% 50% 100% 150% 200%
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Profit after Tax
2006
2005
2004
2003
0% 50% 100% 150% 200% 250%
Balance Sheet
ction
Equity & Liabilities 100% 125.50 169.93 194.45 31.48 Favorable

% % % %
Total Equity 100% 119.21 174.63 219.01 39.67 Favorable

% % % %
Total Liability 100% 125.90 169.64 192.91 30.97 Unfavorable

% % % %
Deposits 100% 135.13 192.67 213.87 37.94 Favorable

% % % %
Borrowings 100% 86.66 66.42% 94.10 -1.97% Favorable

% %
Total Assets 100% 125.51 169.93 194.45 31.48 Favorable

% % % %
Lending to Financial 100% 40.29 176.27 145.48 15.16 Favorable

% % % %
Institutions
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Advances 100% 156.19 192.01 221.49 40.50 Favorable

% % % %
Investment 100% 78% 116.30 129.50 9.83% Favorable

% %
Equity and Liabilities
2006
2005
2004
2003
0% 50% 100% 150% 200% 250%
Total Liabilities
2006
2005
2004
2003
0% 50% 100% 150% 200% 250%
Total Equity
2006
2005
2004
2003
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0% 50% 100% 150% 200% 250% 125
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Deposits
2006
2005
2004
2003
0% 50% 100% 150% 200% 250%
Borrowing
2006
2005
2004
2003
0% 20% 40% 60% 80% 100% 120%

Total Assets
2006
2005
2004
2003
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Lending to Financial Institutions
2006
2005
2004
2003
0% 50% 100% 150% 200%
Advances
2006
2005
2004
2003
0% 50% 100% 150% 200% 250%
Investment
2006
2005
2004
2003
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Vertical Analysis
Profit & Loss Account

ction
Mark up Earned 100% 100% 100% 100%
Mark up Expenses 33.87 24.90 48.72% 55.39 7.17% Unfavorable

% % %
Net Mark up Income 66.13 75.10 51.28% 44.61 -7.15% Unfavorable

% % %
Total Non-Interest 23.41 36.40 17.68% 16.98 -2.12% Favorable

% % %
Income
Total Non Interest 35.29 41.12 29.54% 26.07 -3.07% Favorable

% % %
Expenses
Profit before Tax 46.68 83.35 32.56% 26.57 -6.70% Unfavorable

% % %
Profit after Tax 27.08 42.86 23.03% 17.86 -3.07% Unfavorable

% % %
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2003 Mark up Expenses
Net Mark up Income

27.08% 33.87%
Total Non-Interest
Income
46.68%
Total Non Interest
66.13% Expenses
Profit before Tax
35.29%
23.41% Profit after Tax
Net Mark up Income

42.86% 24.90%
Total Non-Interest
Income
75.10%
Total Non Interest
83.35% Expenses
Profit before Tax
36.40%
Net Mark up Income

23.03%
48.72%
Total Non-Interest
32.56% Income
Total Non Interest
Expenses
Profit before Tax

29.54%
51.28%
Net Mark up Income

17.86%
55.39% Total Non-Interest

26.57%
Income
Total Non Interest
Expenses
26.07%
Profit before Tax
16.98% 44.61%
Profit after Tax
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Balance Sheet

ction
Equity & Liabilities 100% 100% 100% 100%
Total Equity 5.91% 5.61% 6.07% 6.66% .25% Favorable
Total Liability 94.09 94.39 93.93% 93.94 -.25% Favorable

% % %
Deposits 72.74 77.75 81.87% 79.41 2.22% Favorable

% % %
Borrowings 18.62 12.86 7.2% 9.01% -3.20% Favorable

% %
Total Assets 100% 100% 100% 100%
Lending to Financial Unfavorable

6.76% 2.17% 7.01% 5.05% -0.57%
Institutions
Advances 52.44 65.26 59.25% 59.73 2.43% Favorable

% % %
Investment 25.89 16.09 17.72% 17.24 -2.88% Unfavorable

% % %
(Liabilities & Equities) 2003

Total Equity
18.62% 5.91%
Total
Liability
Deposits
94.09%
72.74%
Borrowings
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Total Equity
12.86% 5.61%
Total
Liability
Deposits
77.75% 94.39%
Borrowings

Total Equity
7.20% 6.07%
Total
Liability
Deposits
81.87%
93.93%
Borrowings

Total Equity
9.01% 6.66%
Total
Liability
Deposits
79.41%
93.94%
Borrowings
(Total Assets) 2004

(Total Assets) 2005
2.17% Lending to
16.09% Fin.
7.01% Lending to
17.72% Institutions
Fin.
Institutions
Advances
Advances
Investment
Investment
65.26%
59.25%
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(Total Assets) 2006

(Total Assets) 2003
5.05% Lending to
17.24% Fin.
Institutions 6.76% Lending to
Fin.
Advances 25.89% Institutions
Advances
Investment
59.73% Investment
52.44%
SWOT Analysis, is a strategic planning tool

used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or
in a business venture. It involves specifying the objective of the business venture or project and
identifying the internal and external factors that are favorable and unfavorable to achieving that
objective.
The internal and external situation analysis can produce a large amount of information, much
of which may no be highly relevant. The SWOT analysis can serve as an interpretative filter to
reduce the information to a manageable quantity of key issues. The SWOT analysis classifies
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the internal aspects of the company as strengths or weaknesses and the external situational
factors as opportunities or threats. Strengths can serve as a foundation for building a
competitive advantage, and weaknesses may hinder it. By understanding these four aspects of
its situation, a firm can better leverage its strengths, correct its weaknesses, capitalize on
golden opportunities, and deter potentially devastating threats.
Internal analysis
The internal analysis is a comprehensive evaluation of the internal environment’s potential

strengths and weaknesses. Factor should be evaluated across the organization.
External analysis
An opportunity is the chance to introduce a new product or service that can generate superior
return opportunities can arise when changes occur in the external environment. Many of these
changes can be perceived as threats to the market position of existing products and may
necessitate a change in product specification or the development of new products in order for
the firm to remain competitive. Change in the external environment may be related to:
• Customers
• Competitors
• Market trends
• Social changes
• New technology
• Economic environment
• Political regulatory environment …. Etc
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After working as internee for eight weeks in the Askari bank limited, Vehari branch, and
analyzing the over ratios and other things, I have come across the following SWOT analysis of
Askari bank limited
Strengths
Full day banking:

One can avail the benefit of the services provided at the bank till 5:00 pm. This is
highly useful for those customers who find it difficult to leave their officers in the
morning. It is also highly useful who deposits their amounts on daily basis at evening.
ATM Network:
Bank has the largest ATM network cross the country. The customers of Askari bank
can withdraw the cash at anytime and at any place. Askari bank limited has one link
1300 ATMs across the country. Not only this, even one can deposit the cash with the
help of ATM cards.
Customized Solutions:
The management of the bank believes in customer focused banking rather than the
products oriented banking. The products and services designed by the bank are
specially tailored to the individual needs of its customers.
Customer oriented banking:

The priority banking centers 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 specially for those who appreciate
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only the fines things in life, priority banking offers the very high levels of personalized
banking to match customer’s 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 Askari bank is among those few banks who are already
reaping the benefits of electronic transactions.
Phone banking:
Phone banking services is very attractive for those classes of customers who do not
have time to personally come to the bank i.e. banking on the phone line thus saving the
precious time of the customers. Not only this, even one can transfer electronically
without coming to branch.
Ethical concern and public image:

The organization showing concern for the people, ethics and environment enjoy good
public reputation and are able to reap the benefits in the long run. Askari bank
management is quite sensitive to this issue.
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Weaknesses
In my opinion, these are the weaknesses that might be detrimental to the efficiency and
profitability of the bank.
Dual recoding:
Although all the banking at Askari bank is computerized and online but still the bankers
use the make their entries in the accounting register. This is not the tome consuming but
expensively also.
Low job satisfaction:

Understanding and the effective management of the human resource 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 resource and
how they are managed. Askari bank limited seems to not focusing on this highly critical
issue as the hob satisfaction level of the employees working at Askari bank limited, was
quite loss.
Lack of specialization:
The most 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 this is not a very good tactics by the
management. Otherwise the situation might be like this “jack of all and master
in none”.
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Centralization:
There is a high degree of centralization in the bank. Almost all the decision-
making 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 staff 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. The result is the 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.
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Opportunities
There are opportunities also exist for the Askari bank limited to capture the market not only
from investor’s perspective point of view but also form general public’s point of view.
Following are the main opportunities which Askari bank has in the market.
Deals in Bulk Business:

Askari bank has been incorporated in 1991. but now it is operating not only in general
banking but also in some other large sectors such as; investment banking, agriculture
banking, Islamic banking. It is the project of Army Welfare Trust. This trust is
operating other big projects like as AIMS, Askari Leasing, Askari Cements, etc. so as it
has a big hand to support at bank, has a greater opportunity to touch the sky.
Attraction to foreign investment:

Askari bank is the second in Asia who has strong check and balance in its branches.
Bank has strong powerful internal audit system. That’s why bad debts of the bank are in
very small amount. Due to this reason, Askari bank getting the trust of foreign investors
and this lead to the foreign investment.
Strong potential for growth:

Askari bank has strong potential for growth. Organization is retained the earning in
large percentage when it is going to expand it business or going to start new business.
As the Askari bank has high retained earning and trust of people also, it has the
opportunity to grow.
Overseas branches:
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Today world has become a global village. Regions are going to boundary less. Askari
bank has just one OBU. It has the opportunity to do the business across the boundary.
Branches in remote areas:

Rural areas have almost 60% percent employment which is higher than the urban ratio
of employment. Askari bank has the branches in main cities only. It has the opportunity
to go in the remote areas.
Islamic banking:
Islamic banking in Pakistan has been started since the decade of 1980. according to a
newspaper, Islamic banking will get ten percent market share of the total banking in
Pakistan at the start of next decade. All banks have started the Islamic banking. But yet
there is no up to the mark progress. Askari bank has the opportunity in this sector.
Sharp increase in imports and exports:

Since the new 21st century, economic indicators of Pakistan are showing towards trend.
Trust of investors has been developed on Pakistan. Industry of Pakistan is increasing.
These all require the business across the boundary. Askari bank limited has the
opportunity to take the market share in the imports and exports as it has strong
worldwide network with the other banks.
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Threats
Opportunities come with the threats. These threats may be from the competitor or general
public or from anyone. Opportunities for Askari bank have also brought the threats. Askari
bank is facing the following major threats from the market today.
Higher employee turnover:

Loyalty or employee satisfaction is this “if employee has the better opportunity, then
also prefer to do work in the Askari bank limited”. but Askari bank is facing high
employee turn over. This leads towards the high expensive for the bank. These
employees also have the secrets of bank which my employee told to other bank
managements. This thing is also harmful for the bank.
High charges:
The schedule of charges indicates that the fees charged by the bank on the various
services it provides are high then the normal. It may result in decrease in the number of
its existing customers. Further more, 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 lost of market share or decrease In the charges resulting in
lowering the bank’s income.
Less attractive rate of return:
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Commercial banks face considerable competition in attracting deposits from individuals

or small investors. In contrast, the govt. of Pakistan national saving scheme offers
attractive rate or return on long term fixed accounts, which banks find difficult.
Mergers of banks:
Today banks are merging by mutually exclusively like as merger of prime bank with
ABN. Arrival of new top banks of the world and merger of the banks is increasing the
threats for the growing banks like as Askari Bank Limited.
Lack of innovative products:

Although Askari bank is leading to other banks in the Agriculture Banking, but still it
has the minimum brand of products except agriculture sector. Day by day new brands
by other banks is increasing the threats for newly growing banks.
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Concluding Remarks for Analysis
Askari bank limited has been incorporated in 1991. It has reached to sixteenth year in the
current year. Having more than 11.1 billion equity and have supported hand of Army Welfare
Trust. It has been grown rapidly. Today it stands in the “A” class banks category due to the
successful strategies. It has been started many of mega projects like as Islamic banking,
banking investment and OBU. I have worked as internee for eight weeks in this bank, Vehari
branch. I have learnt lot of things which could be possible during eight week and which were
operated in that branch. I have made analysis like as SWOT, Financial Ratios. Following are
the points which cover the overall aspects of what I have been analyzed.
Assets of Askari Bank Limited has been increased. And expenses of the bank have also been
increased. Analysis shows that expenses increasing ratio is higher then the increasing trend of
Assets and net margin of the bank. Earning per share has been decreased by Rs. 2.19 which is
approximately less16% then the earning of the last year. One major thing is the dividend yield
ratio and dividend payout ratio. Dividend yield ratio has also been decreased. If an
organization is going to expand its business or that organization is in the growing process or at
initial stages, company retained more retained earning and pays less per share. This year askari
bank is going t expand. It is establishing its branches not only cross country but also in the
remote areas. This thing requires more capital. So, we can say due to this reason askari bank’s
retained earning is high. Overall investor’s analysis is sufficient. High expense ratio has
decreased the overall profit of the bank. It should be controlled to achieve the targets.
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Return on equity, assets and on investment is mix. We can say that it is approximately equal to
the last year. Return on assets has been increased. It shows the efficient utilization of the assets
towards the earning. Return on investment still remained the same as last year return on
investment.
In year 2006, bank has been increased the equity ratio in the total capital. It decreased the debt
ratio. In the equity, debt ratio is 14.02 which were 15.46 in year 2005. it shows the trust of
investors in the bank and bank management want to decrease the debt ratio of the bank which
might be favorable for the bank. Effective internal audit is also one of the main causes of the
trust of investors on the bank.
Earning asset to total asset ratio is 89% which shows the efficient use of the resources towards
the earning of the profit. It shows that management is using the earning resources efficiently.
Return on earning assets is not much efficient but is sufficient as the bank is in growing
process. Net margin has been increased from the last year. Net margin for the bank year 2006
is 3.8% which was 3.5% in the bank year 2005. Net margin is the net earning of the bank on
the advances. Advances include both advances to the public and to the financial institutions.
Net margin can be increased more than current if bank reduce the markup rate slightly. It is due
to because bank’s markup rate of the bank on advances is high more than many of other banks.
If bank reduce the markup rate then it can give the more advances to the public because due to
low markup rate public will borrow from the askari bank limited.
Deposit time capital ratio is 11.93 percent which is less then the last year. This ratio is
favorable for the bank in both cases, in decreasing trend and in increasing trend also. But
generally it is favorable when it shows the high result. Here this ratio is showing the decreasing
trend. It is not favorable because deposit of the bank has been reduced by 11.5%. Although it is
sufficient but should be more than the current. Loan to deposit ratio is sufficient. But it can be
more if bank makes the efforts. I am saying it is because banks main earning is the difference
between markup on advances and deposits.
Bank is not introducing the new products. And it is not marketing the existing products
efficiently than other banks are doing. Bank should introduce the new products. It is coxcomb
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that askari bank limited is leading the agriculture banking. Head of the Agriculture division has
introduced the lot schemes and products for the farmers of the country. We can say that in this
sector bank is taking the steps equal to government.
Today era is the era of efficient HR. now almost every organization has the HR Department as
every one knows the importance. Satisfied employees will create the satisfied customers and
satisfied customers will satisfy the employees. So during my internship, I observed that
employee was not satisfied from their job. One reason was the long working hours with the
salary for officially hours. It is very coxcomb that askari bank limited has taken the initiative of
increasing the salaries of employees. It has been increased the salaries of employees more than
the market demand. It proves that HR Department of the bank is strong and efficient also.
It has another edge that it has the back hand support of Army Welfare Trust which has many of
other projects like as; askari leasing, askari cement etc.
Overall bank’s progressive remained well. Banking is growing rapidly. Just in sixteen years of
banking, it has been spread in various sectors like as investment, OBU, Islamic Banking. it has
the lack of Islamic bank branches. It should increase the Islamic branches cross the country
because today people prefers the Islamic banking. It has been contributed towards the
economic growth. Due to which it has to face challenges from the competitors.
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Organization’s Dilemma
Askari bank has the supporting hand of Army Welfare Trust (AWT) as it is the project of
AWT. Bank has made progress with rapidly growth but still it has some deficiencies. Askari
bank’s ATMs network is limited and existing network is not working properly. As the
Pakistani economy is growing up, competition in each sector especially is obviously will come.
Askari bank according to me has not adopted the right policies in the current year as its overall
progress is below then the last year. HR Department is not working properly. Employees are
not satisfied. According to the current news, bank has taken the steps towards the solution of
this dilemma as it has increased its employee’s salaries more then the market demand. It should
increase the number of branches and should make the efforts towards the increasing of per unit
profit. Debt to equity ratio is favorable but it should insert more investment whether through
equity or debts. Major dilemmas of the bank are the HR solution and the strategies which
should face the competitors. If bank solves these two quandaries, it will get again the best
quality award and “bank of Pakistan”.
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Recommendations for Improvement
Askari Bank Limited is a well-known financial institution in the banking sector, it is said,
nothing is perfect in the world, and there is always space for deficiencies. Deficiencies are
point out for the correction. Following are recommendations for the management of Askari
bank limited to overcome the deficiencies.
Enhance the network:

Although the bank has a network of nationwide branches but it should spread its branch
network in the remote areas specially. Bank should spread its network across the
boundary.
New product introduction:

Bank should introduce the new products and to market its products, it should accentuate
to give advertisements on both print and electronic media.
HR Department Role:
The quality of human resource lies at the center of every organization’s success and no
doubt Askari bank Limited is fully aware of the importance of a satisfied and well-
trained work force that gives completive advantage but the problem which I have
observed is that employees of Vehari Branch don’t have enough training about their
products. The state of the art training and development center at Askari Bank Limited
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should arrange workshops and seminars for employees at every level to empower them
professionally.
Satisfy the Employees:

To reduce the high turn over of employee, salary package should be increased and extra
benefits should be given to the employees as the bank timing has been increased. It is
very coxcomb that Askari bank has increased its employees’ salaries more than
demands of the market.
Markup Rate:
Today is the era of competition. Due to the new mergers and arrival of world class
banks in Pakistan competitive environment is increasing. To compete the competitors,
Askari bank should reduce its service charges and increase the rate of return to
depositors and reduce the markup rate on advances.
Decision Making:
Askari bank should give the authority to lower level management or employees like as
branch manager to make the decision at sight. It will reduce the cost and time and
customer satisfaction level will increase.
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Conclusion
Askari bank has celebrated its 16th birthday in the summer. In

these sixteen years, it has been grown rapidly. Over all
progress of the bank remains good and appraisable. Investors
even foreign have trust on the bank. It has strong internal audit
department as it is the second bank in Asia who has strong
check and balance / audit department. It is to be approved by
the zero percent charges written off. It has been contributed
towards the growth of economy especially in the agriculture
sector. It has been won the 1st prize of Pakistan banker from
the “Asian banker” magazine. Presentation of financial
statements stood first since 1997 to 2005. Bank has been
increased its employees salaries according to market trend.
These all shows the overall effectiveness of the management
not only for earning of profit but in the welfare of employees
and of customer’s satisfaction also. Investors can trust in the
bank. Bank should increase the number of OBU branches and
Islamic branches. it should give the authority to middle level
management to make the decision at the spot to make the
efficient services. It has only six Islamic branches till the start
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of year 2007. Overall behavior of the bank and its employees

is very good.
“According to the current trend and past data, it will grow

rapidly and will stand soon at the Pakistan bank.”
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Internship Report

Reasons to Choose Banking Sector

According to the Banking Companies Ordinance 1962”

Size of global banking industry

Evolution of Banking in Indo-Pak Sub Continent

Askari Bank Limited---In Vehari

• To identify strategic initiatives and opportunities for profit.

Values of Askari Bank Limited

Basically Askari bank limited has following types of branches:

Awards and Achievements

• First Bank to offer on-line real-time banking on a country-wide basis.

Hierarchy Bank (Grade Wise)

Management – Head Office

Branch Hierarchy (Vehari Branch – 0093)

Department Askari Bank Limited

Operational / General Banking Departments

Account Opening Department: -

This is the department who deal the new clients of

Following are the persons who are responsible

This department is for clearing locally.

Check number Drawee’s bank UBL PUNJAB RSB

It is the department who works for the clearance

• Mr. Muhammad Aslam; who is the branch manager.

this is the department who is responsible for all

• Mr. Muhammad Aslam; who is the branch manager.

This department simply is the backbone of any

Foreign Exchange Department

Department which deals with the foreign currency

• Mr. Muhammad Aslam; who is the branch manager.

• Mr. Mahmood; Incharge Credit Department.

Credit Department / Section

As I have mentioned earlier about the

• It is also under the supervision of branch manager directly.

• Mr. Muhammad Aslam; who is the branch manager.

General Credit Department

This department deals with the general public

• Mr. Muhammad Aslam; who is the branch manager.

CBSG stands for consumer banking services

Management Information System Department

Following are the persons who are responsible

Corporate Banking Division (CBD)

• Working Capital Facilities

Investment Banking Division

Consumer Banking Services

During 2006, the consumer banking services

Rupees Travelers Cheque

Why Askari Bank's Traveler Cheques?

• Account relationship not mandatory.

Value plus Deposits

• Facility for issuance of debit / supplementary cards.

Partial Liquidity Offer for Time Deposits:

Personal Finance is a parameter driven product for catering

One of the quickest approval processes around

Dream Life (Financing for Consumer Durables):

Askari "Mortgage Finance" offers the convenience of

In pursuance of the National objectives to revive the

This personal line of credit would be set up with a specified

Borrower: Resident Pakistani Nationals

⇒ If rate decrease then bank would return to customer by cheque.

⇒ Third party expenses is 20000/= if any issue arises by the customer

⇒ Heavy Dependence on H.O for Information Required By Clients

Condition if guilty person want to back car:

Askari Debit Card