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BBA 08


First of all thanks to Almighty Allah, who gave me the strength and courage to complete this task, I am thankful to my parents for their prayers, their financial and moral support. I am thankful to all my friends for their help and support. And at most I am grateful to the whole crew of Askari Bank, who has been a source of learning and cooperation for me. I have tried my level best to make this work thoughtful and precise, but it may have mistakes, I will be more than pleased to have feedback, and suggestions to help me improve my work for my future projects.

Executive summary Page 4 Introduction Page 5 1.1. History of Askari Commercial Bank Ltd. 1.2. Objectives of ACBL Page 6 Page 8 1.3. Organizational Structure Page 10 1.4. Products and Services Page 13 2. Learning and experience Page 20 2.1. Rationale for selection Page 20 2.2. SWOT of ACBL Page 32 2.3. Recommendations Page 36 2.4. Conclusion Page 38 References Page 40

This is an explanatory report about my internship that I completed at Askari Bank from 13th July, 2009 to 22nd August; 2009.Askari Bank is one of the rapidly expanding banks of Pakistan which has stretched over 200 branches all over the Pakistan. Along with my personal account in Askari Bank, perhaps its dynamic progress was one of the main reasons of my joining to this bank for my internship. This report holds information about different departments of Askari bank. The purpose of this report is to document the experience and learning which I gained during my internship. Although I was not considered as a regular employee of the bank to whom bank may award a major responsibility of banking but even then during my internship I was able to learn practical aspects of the bank, and got a birds eye view of the banking activities in the departments I was assigned to. I was placed in six departments from where I learned so many things. During this whole process I gained information about Askari Bank which previously I did not have any knowledge of i.e. the history of the bank, products and services it offers, the prevailing departments of the bank and their functions and how the banks day to day activities are conducted. To conclude I may say that Askari Bank has aggressive growth plans in Pakistan. It has developed a good reputation for good service and a quality bank. It offers a broad range of products to target different market segments.

According to Dr. Hart Banker or bank is a person or company carrying on business of receiving money and collecting drafts for the customers subject to the obligation of honoring cheques drawn upon them from time to time by customers to the extends of the amounts available on their currents accounts. In the words of G W Gilbert A banker is a dealer in capital or more properly a dealer in money. He is an intermediate party between the borrower and lender. He borrows one party and lends to the another

According to Banking companies ordinance 1984

Banking means the accepting, for the purpose of lending, or investment, of deposits of money from the public, repayable on demand or otherwise, and withdraw able by cheque, draft, order or otherwise. Banking companies mean companies which transact the business of banking in Pakistan.

Commercial Bank:
The commercial bank receives surplus money from the public and lend to others who needs

funds. Bank collects cheque, bills of exchange etc from customers. It transfers money from one place to another. It provides agency and general utility services. Purpose of commercial bank is to earn profit.


The banking sector has witnessed a dramatic change during the last ten years with the development of Askari Bank, which is not only redefining priorities and focus of the banks, but also threatening the domination of traditional players. The story begins with the incorporation of Askari Commercial Bank limited in Pakistan on October 09, 1991, Askari Bank Commenced (begin) to operations in April 1992, as a public limited company. The bank is listed on the Karachi, Lahore and Islamabad Stock Exchanges and the initial public offering was over subscribed by 16 times. While capturing the target market share amongst the view banks, Askari has provided good value to its shareholders. Its share price has remained approximately 12% higher than the average share price of quoted banks during the last four years. Askari Bank has expanded into a nation wide presence of 153 Branches, and an Offshore Banking Unit in Bahrain. A shared network of over 800 online ATMs covering all major cities in Pakistan supports the delivery channels for customer service. As on December 31, 2008, the Bank had equity of Rs. 11.016 billion and total assets of Rs. 207.168 billion, with over 475,000 banking customers, serviced by a total staff of 2,118. Askari Bank is the only bank with its operational head office in the twin cities of RawalpindiIslamabad, which have relatively limited opportunities as compared to Karachi and Lahore. This created its own challenges and opportunities, and forced as to evolve an outwardlooking strategy in terms of Askari market emphasis. As a result, Askari developed a geographically diversified assets base instead of a concentration and heavy reliance on

business in the major commercial centers of Karachi and Lahore, where most other banks have their operational Head offices. Historically, Askaris core marketing focus for its asset base has been the middle and upper middle business houses (including wholesalers and manufacturers) operating in the large urban centers of Pakistan, which are primarily oriented towards foreign trade. This segment constitutes significant revenues to the bank. The liability side remains focused on the middle and upper middle class retired and serving government and armed forces personal and midsize business houses. Their corporate banking division was established in April 1999 with the primary focus on servicing large corporate and multi-national companies (MNCs). Benefiting from the banks growing balance sheet size, this division B now gaining momentum and their long-term aim D to develop it into an independent. Strategic business unit (SBU) This would the bank to acquire, develop and specialized abilities, and enhance their focus on serving the emerging needs of the corporate clients. With this branch network of over 100 and further expected increase in future, the ATMs facility and internet Banking, Askari Banks reach is ever increasing. In recognition of this reach, they have set up a retail-banking group in July 2000, the mobile ATMs facility is first time started by Askari commercial bank in 2005 dedicated to serving the urban consumer market; Askari is committed to aggressively market this segment. The strategy is to provide their customers with a basket of innovative products to meet their varying needs. Askari Commercial Bank is the only Private Sector bank that has been approved by the World Bank as a Participating Financial Institution for the US$ 200 million Line of Credit sanctioned (authorized) to the Government of Pakistan for the Financial Sector Deepening and Intermediation Project. Askari's emphasis on further broadening its core foreign trade business translated into handling a higher volume of Export and Import business of Rs. 36 billion registering a growth of 42% over the pervious year. This enhanced foreign trade business was secured due

to excellent customer services and efficient international settlement arrangements with our correspondent banks. Askari Bank is operating throughout Pakistan. Most of the branches are connected through our State of the Art, On-line Communications Network, which gives the bank a competitive edge in providing instant services to its clientele. We also offer direct access to the latest Foreign Exchange Rates through our Online Communications.

To be the leading private sector bank in Pakistan, with an international presence, delivering quality services through innovative technology and effective resource management, in a modern and progressive organization culture of meritocracy, maintain high ethical and professional standards, with providing enhance value to all our stakeholders, and contributing to society.

To be the leading bank in Pakistan.

Core values:
The intrinsic values, which are corner stones of Askari corporate behavior, are:

Commitment Integrity Fairness Team-work Service

Objectives of ACBL:
As Askari Bank looks ahead to the future by moving through the decade its efforts are guided by a broad framework of corporate objectives, which are as follows:.

It will endure to provide its customers with as many creative financial services and products, as is required. As today customer demands a package of services suited to this particular business, Askari plans to develop different and new products to cater to the customer's demand. Askari bank has they strength to be a market leader.

Bank will keep standing and by and develop, its human capital base. It is planning to provide all the required training to its staff towards achieving a higher level of professionalism. Askari will continue striving to build a strong, motivated and dedicated work force where total commitment will be towards customer's satisfaction and wealthy growth of organization.

Askari bank will endure to provide a competitive return to its shareholders and will strive to maximize its share value. The enhancement in its capital and returns will be a continuous process. Askari bank is interested in being one of the most financially viable institutions. So it lays great emphasis on gradual building up to a healthy deposit mix. In the years ahead, the bank will enhance its focus on growth through operational efficiency, creating strategic alliances developing well-structured networking system innovating new products, enhancing marketing and sales efforts improving customer service, achieving greater employee motivation and providing the best value to its stakeholders - will make it a leader in the corporate world.

How to deliver:
These objectives and guiding mission will be achieved through Focused objective Winning as a team Excellence in delivery Relentless quality Upward rising sales


Executive Committee Internal Audit

President and Chief Executive

Corp. Banking & Fin. Inst. Group Internation al

Operating and credit group Credit

Region s Rawalp indi/Isl amaba d North

Retail Banking Group Asset Products Investme nt products

Credit Cards Planning and Corporate affairs Human Resource

Treasury Corporate and Merchant Banking

Electronic Technology Systems and Operations Data Reporting Legal Affairs




South I South II 10 West

Corporate Information

Lt. Gen. Javed Zia (HIM) Lt. Gen (R) Imtiaz Hussain Maj Gen (R) Saeed Ahmed Khan Mr. Zafar Alam Khan Sumbal Dr. Bashir Ahmad Khan Mr. Shahid Mahmud Mr. Muhammad Riyazul Haque Mr. Ali Noormahomed Rattansey Mr. Tariq lqbal Khan Mr. Muhammad Rafiquddin Mehkari Mr. M. A. Ghazali Marghoob

Chairman Chairman Executive Committee Director Director Director Director Director Director Director (NIT Nominee) President & Chief Executive Company Secretary

Audit Committee
Dr. Bashir Ahmad Khan Mr. Ali Noormahomed Rattansey Mr. Tariq Iqbal Khan Chairman Member Member


A.F.Ferguson & Co.

Chartered Accountants

Legal Advisors
Rizvi, Isa, Afridi & Angell

Registered Office /Head Office

AWT Plaza, The Mall, P.O.Box 1084, Rawalpindi. Tel : Fax: Website : (051) 9063000 (051) 9272455

1.4. Products and Services

The product & services of Askari commercial bank limited are developed keeping in view the customers needs & wants, & the expectation that the customer attaches with its financial institutions.

A product ACBL includes all those services which customer normally required for effectively managing his business. ACBL offers the following financial services to its customers. 1) 2) 3) Deposits Advances Products

1.4.1. Deposits:
One of the basic functions of commercial banking is to receive deposits. ACBL accepts deposits in both local & foreign currency. Local currency deposits Current Account PLS Saving Account Term Deposit Notice Deposit Askari Faida Account Askari Special Deposit Account Value plus Saving Account Askari Advantage

Current Account A current account is a running & active account, which may be operated upon any number of transactions during a working day. The banker undertakes to repay these on demand & therefore theses accounts are called demand deposits.


Transaction fee The bank charges no transaction fees if the minimum balance requirement is met. However, if the average balance falls below the min. balance then the fees is charged at the rate of Rs. 10 per transaction.

Saving Accounts The saving account is usually opened by lower or middle class people so that they can meet their future contingencies, as the objective of such account is to promoting the habit of thrift among people, the bank impose certain restrictions on withdrawals from the saving accounts.

Transaction fees Transaction fees are charged of Rs. 20 per transaction if the min balance is not met.

1.4.2. Advances
Advances are major sources of earning of income for commercial banks. Banks attracts surplus balances from the customers at low interest rates & makes advances at higher interest rates to the individuals or business firms.

ACBL offer these facilities in two forms: Funded facilities Non- Funded facilities

Funded facilities

In funded facilities the bank actually advances money against further repayment. These facilities are known as cash credits. Non- Funded facilities Non- Funded facilities are those in which bank substitutes its own credit for its customers. ACBL offers to its customers are large number of non-funded facilities. These facilities include: 1. Guarantee
2. Letter of credit

1.4.3. Products
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.

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. The maximum financing amount is Rs. 10 million with a repayment tenure upto 20 years. Business finance In pursuance of the National objectives to review 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 their cash flows. Ore valued customers can enjoy the convenience of getting financing on attractive terms with the minimum processing turnaround time.

Askcar (Car Finance) Yet another of our products, Askcar 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, Askcar offers the best value to our esteemed customers.

Askcard ASKCARD means freedom, comfort, convenience and security, so that you can have retail transactions with complete peace of mind. ASKCARD 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.

Traveller cheques The range of our products and value added services enhances with introduction of Rupee Travellers 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. Total volume handled by the department during the year 2004 is Rs. 798 Million. Value Plus 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 master card No joining fee When you successfully apply for an Askari MasterCard, we will not charge you any Joining Fee. Its almost like you are getting it for FREE! o Global acceptability Your card provides you with service at thousands of locations in Pakistan, and at over 23 million establishments worldwide. As an added convenience, you will have the benefit of receiving your monthly billing in Pak Rupees, regardless of the currency of purchase.

24-Hours customer service With Askari MasterCard, you are always a phone call away from the assistance you need. To speak to one of our friendly Customer Service representatives, please call our UAN 111-000-787 for Karachi, Lahore or Rawalpindi/ Islamabad.

Low service charges


Your Askari MasterCard provides you the experience of revolving your spending at comparatively low service charges. In addition, the same rate also applies to cash advance obtained on your Askari MasterCard

Zero loss Liability Please report loss or theft of your Askari MasterCard immediately at our Customer Services UAN 111-000-787 for Karachi, Lahore and Rawalpindi/Islamabad. Once you have registered the loss of your credit card, your liability against its fraudulent use will be limited and we will send a replacement card within 48 hours of reporting.

Cash advance facility Cash advance facility is available for Askari MasterCard holders. You can get up to 80% of your sanctioned credit limit as cash advance in Pakistan or anywhere else in the world. The facility is available at all ATMs displaying the Cirrus logo around the world and in Pakistan. You may also avail this facility at designated branches of Askari Commercial Bank, during banking hours.

Balance Transfer facility With Askari MasterCard, you can avail an incredible offer of a Balance Transfer at the exclusive rate of just 1.5%* per month.

Free travel insurance Just purchase your travel tickets on Askari MasterCard and you are automatically covered under our Travel Insurance Plan (in case of personal accident resulting in death or permanent disablement) for up to Rs.8,000,000/- on a Gold Card and Rs.4,000,000/- on a Silver Card.

1.4.4. Agriculture Banking


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 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. Products Askari Kissan Ever Green Finance Askari Kissan Tractor Finance Askari Kissan Aabpashi Finance Askari Kissan Livestock Development Finance Askari Kissan Farm Mechanization Finance Askari Kissan Farm Transport Finance Ask Card

2. Learning and Experience

One of the most important aims of the student life is to express him/herself correctly and adequately. Secondly I wanted to apply the knowledge that I had gained during the course of my studies while at Air University. This was the belief in my mind when I first decided to go to Askari commercial Bank to complete my internship program.

2.1. Rational for Selection


I served Askari Bank Satellite town Rawalpindi as an internee for some six weeks. As internship was a compulsory requirement for the completion of my BBA degree so I observed feasibility of joining any organization of well repute. Before starting my internship at Askari, I have bundle of ideas about different organizations to join. But the point was which one to choose. And I choose Askari Bank Ltd. Most of the organizations which I had idea about were banks. One reason of selecting banking industry was the complete implementation of BBA courses under one roof. I choose Askari Bank Ltd. because of some definite reasons:

My account is held by Askari Bank Ltd, so I have been having regularly visiting to the bank. Thats why I have a bit more attachment to this bank than else.

During my visits to Askari Bank at different places, I observed that all the branches have a harmony in the setup or physical outlook of the branch which insisted me to think about managements nationwide organization and planning.

Up till my internship at Askari Bank, which ever branch I visited, all were having an ATM machine because of which I came to the conclusion that the bank is utilizing modern technology at a rapid speed.

2.1.1 First week I started my internship from "General Banking" in the first week. The General banking is basically divided into the following sub departments, which are as follows: Account opening Bills and remittances Clearing Term deposit Cash department

The first day of exposure to the practical field was at the (sub department) Account opening. The relationship of customer starts with this department. Every one is not allowed to come and open an account in the bank, for this purpose there should be an introducer who himself is the account holder in the same branch. He has to introduce the new client by signing the opening account form and then his signatures are verified. Applicant's fills the account opening form and provides it to the bank with photocopy of I.D. card and signatures card. Then the banker inquires the about the option of opening a joint account or individual. If the customer wants to open joint account then either it is "either or survivor" (i.e. only one persons signature is sufficient) or jointly (i.e. both should sign the cheque). Account opening Although the procedure of opening an account in a bank is a quite complicated job but I am going to tell you only the basic necessities for opening the account, which are as follows: Introduction National I.D. card Personal data Details of dealing with other banks.

These are some of the basic requirements for opening the account. Issuance of chequebook Once the account is opened, ACBL issues the cheque book to the customer so that they could withdraw their money whenever they like. The producer of issuance of the chequebook is as follows: For the customer who already has an account with the bank, the lastly consumed chequebook requisition slip with the help of which a new chequebook is issued. And the

person who is going to open a new account for the first time gets the chequebook free without any requisition slip. For the new depositors the cheque book is not issued at the time of opening of account, rather it is issued after three days but, as the most of the customers are from the armed forces so the usually get the cheque earlier. ACBL issues the cheque books for both the local and foreign currency accounts. I remained there in the account-opening department for one week and daily I learnt a new thing I come to know about the details of the account opened by the banks. In the start I have stated the account opening procedure and issuance of cheque book in a very comprehensive way, now let me tell u the further related detail of account opening First of all a customer come and gets the information regarding the opening of account. After getting the proper information he gets an introducer and goes for opening an account of any kind whatever he wants

He fills the form regarding the opening of account which is in fact a request. S.S card is filled which contains the signature that will be used in future in order to identify that you are the same particular person who perfectly eligible for receiving the benefits.

The S.S card and the application form is verified and the verification stamp is imposed on it. After verification the application forms are pasted in the file with the serial, no which is actually the account no. Allocated to the respective customers. The chequebook is issued to the customer after three days. A letter of thanks is posted to the customer as well as the introducer. The introducer is thanked for the two perspectives. First he should be thanked that because of him the bank get another customer and the second reason behind sending the letter to him is that if the customer had fraudulently get the signature

of that person as an introducer then he should come to know that some one has used his name as well as signature for his personal benefit and without the consent of him (introducer). The procedure for opening the account comes to an end after sending the letter of thanks. Active and inactive Account The account becomes Inactive if there is no debit transaction. Account becomes active if there is credit transaction. 2.1.2 Second Week In the second week I was shifted to the TDR (Term Depots Receipts) department. It was again a good experience to work with the officer here. First of all he told me about the basics of the TDR. Deposit is lifeblood of a commercial bank. The main function of a commercial bank is to channelize the saving from the savers to the ultimate users of the funds. This process of collecting saving is called "deposit mobilization". Deposits are of two types one is the demand deposit and the other one is time deposit (these have been explained in detail in the "department" portion). As the name signifies the demand deposit is payable on demand so no interest or benefit is given on such deposits but the time deposit is a kind of deposit, which gives you a benefit in terms of cash. Most of the people who have surplus money with them especially the landlords deposit their money in such accounts. Term deposits are payable on demand with certain maturity. Different percentages of profit are given in the time deposit (the detail is given in the Marketing Mix) These are called fixed deposit because they are fixed and no transaction is allowed till maturity. In fix deposit you can open an A/c of the same title only than A/c number will

be changed. While in other accounts the A/c can't be opened under the same title even in other branch of the same Bank. Record keeping The record of the TDR is although feed in the computer but there is also a hard copy of the record. The verified TDR forms are pasted with serial number of receipt given to the customer (the receipt of the form regarding the deposit of the amount). Askari Bachat Certificates are attached or pasted in the file according to the date. The date may be of any month and any year i.e. if there is a card of the 8th then on this card you will find the only 8th date of any month and any year in which the card was issued.

2.1.3. Third Week In the third week of my internship I was shifted to the Clearing section and Bills for collection section as well. Three days I worked with the "Clearing" and then with the "Bills for collection" section. Clearing This is a "Inter-city clearing" i.e. the cheques of Lahore city from different banks like National Bank of Pakistan, Standard Chartered Bank, Muslim Commercial Bank are deposited here. The deposited cheque is received carefully by checking the title of cheque, date, amount, and signature on the cheque. All the cheques go to the State Bank of Pakistan. Everyday NIFT receives all cheques and arranges them. By establishment of NIFT a lot of time, cost and labor is saved. The cheques are stamped carefully. Two stamps are required on the cheques Clearing stamp

Payee's account will be credited

If any stamp is missed or unclear, SBP returned one the cheque with reason. When the cheques are deposited they enter all the cheques on the computer with account number and these figures go to SBP. There are four types of Balances in the computer Available balance Float amount Block amount Ledger balance

NIFT collects all the cheques at 2:00 pm. After that the computer department gives clearing sheet that is checked in clearing. Same day clearing All the cheques are cleared in coming day. But same day cheques are cleared other same day when it is deposited. The same day cheque amount is 50,000 below this amount the cheque, can't be cleared in the same day. Clearing house It is a place where representatives of all scheduled banks sit together and interchange their claim against cash other with the help of controlling staff of "state Bank of Pakistan" where there is no branch of State Bank of Pakistan, the designated branch of State of Pakistan. So, system by which banks exchange cheques and other negotiable instruments drawn on each other within specific area and there by secure payment for their clients through the clearing house at specific time In an efficient way. Bills for collection

Two types of cheques are deposited here Outstation cheques Askari other branch cheques (local)

Outstation cheques mean different cities cheques are deposited and Local means Askari's other Branches like cantt, circular road, defence, Gulberg etc. Are deposited. All cheques account numbers on the computer and these figures go to SBP. The cheques are cleared in 5-6 days. Because "NIFT" receives and delivered to SBP where these cheques are cleared in 3 days and deliver to the banks, which mention on the cheques. The cheques require three stamps Askari crossing stamp OBC number Payee's account will be credited.

2.1.4. Fourth Week In the fourth week of internship I was transferred to the "Remittances department". I met there with a quite sophisticated personality, she tells me about the issuance, procedure and the entries of the demand drafts and pay orders. Demand Draft It is an instrument payable on demand for which value has been received, issued by the branch of the bank drawn. Demand draft is payable at some other branches of the same bank. But Askari Bank contract with MCB so ACBL's demand draft is payable at MCB also. Demand draft is very useful because there is no chance o fraud. The person deposit cash and get demand draft. It is used for outstation payment. Issuance of demand draft

On the application form following particulars are given: Name of beneficiary Amount Mode of payment The place where DD is drawn Signature Name and address of the beneficiary

Request shall be made on standard application form. The customer writes his name, address, I.D number, and phone number on the backside of the application form. Commission is charged as per schedule of charges. The issuance of DD is computerized and the amount is automatically protect graphed drawing printing for the avoidance of forgery. The withholding tax and excise duty is deducted as per schedule. when the customer depots cash in the cash department, he got voucher from the cash department and gave it to the person who makes the DD. Payment of DD When a person brings DD (which have been drawn on you), you will check it from your DD payable record and ask the customer to sign twice at the back of the DD so that it could be confirmed that he is the eligible person for receiving the benefit, along with this you obtain the ID of that person verify it and then make the payment. After making the payment, entry is made in the register that this DD has been paid. DD payable register Every day you receive an IBCA from different banks and it contains a list of DDs, which have been drawn on you. Banker records it in DD payable register. These DD are those, which other branches have drawn on your bank. Payment of DD from Suspense A/c

The payment of DD is made from the suspense account in the following cases:

The amount of DD is paid from suspense a/c if advice is not received yet. If a DD is to be cancelled on the wish of the customer, in such a case the payment will be made from suspense A/c.

Cancellation of DD Following procedure is followed for the cancellation of the DD:

Obtain the application in writing for the cancellation of DD along with the original DD. Verify the signature of the applicant, which should tally, with the signature on the application form (for opening the DD). Mark caution on DD issued register or on computerized entry. Make the payment from suspense account. Inform the Drawee bank regarding the cancellation and ask for IBCA. Inter Branch Credit Advice is the advice regarding the payment (refund) of the amount which Drawer bank have sent to them (which was deposited by the customer against the demand draft).

When a demand draft is made, an IBCA is sent to the Drawee bank regarding the payment.

Types of DD DDs are of the following types:

Crossed DD: In the case of crossed DD the amount is deposited to the A/c of the beneficiary. Open DD: Incase of open DD the amount is handed over to the beneficiary at the cash counter.

Telegraphic Transfer

The transfer of funds from one branch to another branch of the same bank is called telegraphic transfer. The bank apply test on telegraphic transfer. The applicant receives Commission and charges, if the Applicants account is in ACBL, he pays no charge above Rs. 100,000/If he has no account in the ACBL then he has to pay charges according to the amount e.g. for Rs. 100,000/- the charges are Rs. 250/If the account of beneficiary is in another bank, his bank will present The TT to ACBL through for payment. Pay Order Pay order issued from one branch can only be payable from the same branch. Pay order is used for same city payment. E.g. If ACBL (Main Branch) issued pay order it is only payable for Main Branch of ACBL.

Procedure Applicant fill the application After paying charges he gets voucher and pay order is issued All pay orders shall be crossed "payee's A/c only".

Cancellation The applicant give application for cancellation Charges are recovered from the applicant.

2.1.5. Fifth Week In the second last week of my internship I worked in the "Accounts section". Account Section

I worked in accounts department but as it is a confidential department so they did not give me enough information regarding their working. First day I sorted out the cheques of ACBL with the help of the serial number and the nature of the account and arrange them in sequence. After that i checked the activity which contains the title of the cheque, amount, date etc. Accounts department maintains the record of expenses of all the departments, it also maintain the record of all the employees regarding their basic salary, increment, benefits etc. It is the backbone of ACBL On the next day I worked in the mail dispatch section, the person appointed here asked me to arrange the letters and to write the mailing address on the envelopes and then to put the letters into the envelops. It was an interesting job but, the single thing which I learned from here was that, I learnt by heart the addresses of many branches of the ACBL, which helped me to know the extensive branch network of the Bank. On the following day I repeated the same job and did nothing else. 2.1.6. Sixth Week In the last week I was shifted to the "foreign exchange" department. For the first three days I worked there but in the last three days I was shifted again to the account-opening department due to the absence of one of the Account opening officer. Therefore I was sent back to the account-opening department.


2.2. Swot Analysis of Askari commercial Bank

Leading Private sector Bank Askari commercial bank is the leading private sector bank in the banking network in Pakistan with many of them online branches in major cities of the country Full day Banking One can avail the benefit of the services provided at the bank till 5:00 P.m. which is highly useful for those customers who find it difficult to leave their officers in the morning. Atm Network The bank has the largest ATM Network cross the country. The customers of ACBL withdraw access their funds any time at all the ATM Sites with ASKCASH Logo. Customized solutions The management of the bank believes in customer focused banking rather than the product oriented banking. The products and services designed by the bank are specifically tailored to the individual needs of its customers. Electronic Banking The revolution in the banking in the form of electronic banking operations have opened avenues of excellent, efficient and quick services saving the time and costs of the customers and fortunately ACBL is among those few banks who are already reaping the benefits of electronic transactions.

Electronic Funds Transfer ACBL management is quite prepared to adopt the latest advancements in technology resulting in revolution in the banking operations such as check clearing process, computer based teller equipment, automatic teller machines, and electronic funds transfers among the others. Phone Banking Phone banking service is very attractive for those classes of customers who dont have time to personally come to the bank i.e. banking on the phone line thus saving the precious time of the customers.

In my opinions these are the points that might be detrimental to the efficiency and profitability of the bank. Not Highly Automated The bank has still some of the traditional ways of operations in this advanced technological environment. Manual Book Keeping Although the bank has computerized accounting system but, still the bankers use to make their entries in the accounting register. Low Job Satisfaction Understanding and the effective management of the human resources is the most difficult challenge faced not only by the bank but by all the organizations. Even though the people have been sacrificed in the new organizational developments, it is becoming clear that the true lasting competitive advantage comes through human resources and how they are managed. ACBL seems to not focusing on this highly critical issue as the job satisfaction level of the employees working at ACBL, was quite low.

Lack of Specialization This famous and useful concept given by Adam Smith in 1776 seems to be missing in the bank. The employees are constantly rotated from one job to another job of totally different characteristic in the view of giving them the know-how of the working in all the departments. But I think this is not a very good tactics used by the management. Otherwise the situation might be like this Jack of all and master of none. Centralization There is a high degree of centralization in the bank. Almost all the decisionmaking is in the hands of the upper management. But centralization is effective up to a certain level otherwise it becomes inefficient and at times costly too. I personally observed that delay occurred in the operations of the employees only due to the fact that they had not got any instructions from the head office. Lack of Training Facilities Presently there is no specific training program arranged for the new recruiters. They have to learn based on their observations and also their mistakes. It takes a bit time for the fresh one to learn the banking the result is huge amount of blunders, mistakes etc. resulting in monetary and non-monetary losses for the bank. There is pressure not only on the new learner but also on the person placed upon with this responsibility.

Apart from the ones discussed in External Factors Evaluation Matrix, the bank is facing the following threats and opportunities currently: These are positive external environmental factors effecting the organization. It deals in bulk business. A large amount of foreign investment is attracted. Strong potential for growth

Steady increase in Customer Deposits Overseas Operations Branches In Remote Areas Islamic Banking Sharp increase in imports and exports

High Employee turnover As discussed above, the job satisfaction level of the employee is very low resulting in high turnover, which is bad for any organization as there are huge monetary and non-monetary costs involved in the fresh recruitments. High charges The schedules of charges indicate that the fees charged by the bank on the various services it provides are extremely high. It may result in decrease in the number of its exiting 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. Less attractive rate of return Commercial banks face considerable competition in attracting deposits from individuals or small investors. In contrast, the Govt. of Pakistan national saving scheme offers attractive rates of return (approx. 16 to 18 percent annually) on 1015 year fixed accounts, which banks find difficult to match.

All the departments should work as a team not as individuals, so, that the whole branch would get benefit out of it. So, there is a lack of teamwork.

As they lack international presence, so its better for them to take advantage from international banks and try to adopt their policies and strategies to be in their line. I believe more incentives should be given to the human resource to keep them committed to their bank. Such incentives can be in the form of bonuses for those who performed really well for a time span of 2 or 3 consecutive months.Job rotation of such capable employees is another good idea in which officers should be given different tasks (job rotation) or multiple tasks (job enlargement) to ensure the officials that they are an important asset for the multinational organization. Such measure would also make them know where exactly do they stand and what exactly are they doing for the Bank.

If leadership to some extent becomes decentralized, employees would have a free hand to make certain decisions according to their own work experience. Employees if given a free hand can at times come up to certain procedures which are less time consuming and more beneficial for the whole organization. Such procedures / methods can later on be implemented for the whole bank to be followed which would in turn increase the efficiency level of Askari Bank. Similarly, it would initiate other employees to come onto certain measures which should be implemented amongst the whole organization.

The reference based criteria should not be followed for recruitment of employee. Incompetent workers cause damage to banks repute and smooth flow of branch. Although technology, bank currently owns is in working condition, but it often crashes so its better that Askari Bank adopts new and modern mechanisms for maintaining its technology as some times systems get hanged. The software and hardware, which is called as System, of the bank should be upgraded. Better computer specialists should be hired to program a new system as I found out that majority of the problems are occurring because of up gradation and changes in the current system.

Adopt more aggressive marketing strategy and should be proactive in social causes. Right now the bank plays little or no role in social causes whereas its competitors are actively participating.

There should be some training system for internees and also some reward system for internees so that to motivate them for high performance and low absentees.

This internship experience has been very much informative for me as it helped me in numerous ways like in learning new things and ideas about official environment and now I have the knowledge and experience of working in office environment. I have realized my abilities and expertise of working in that kind of environment. Internship is a

supervised pre-professional career related experience paid or unpaid, part or full time, with measurable learning objectives and formal evaluation. Askari Bank Ltd will remain an aggressive and innovative financial institution and continue to adhere to the tradition of understanding its customers needs and looking for new ways to serve them. Further integration and productivity gains will result in stronger performance in terms of revenue as well as service quality in the coming years. The strong leadership of Board and management and the relentless effort of the staff at Askari Bank Ltd will be able to offer more superior products and services to customers and to contribute more to economic and social development of Pakistan while developing a bigger future for it. Askari Bank views specialization and service excellence as the cornerstone of its strategy. The people of bank innovation, creativity, reliability, customized services and their execution are the key ingredients for their future growth. Based on this approach, their Treasury Division and the Structured Finance Unit have been geared to provide specialized services to the corporate customers. Revenues from these activities have started yielding dividends and they expect significant growth in these areas in the coming years. While building on their in-depth familiarity with their customers needs and anticipated developments in the banking industry, the Retail and Corporate areas of their operations will continue to provide a strong and stable base to the business of the Bank. They are aware that they have stepped into the 21st century and they must meet its challenges by acquiring the highest levels of Technology. They will thus be accelerating their enable them distribute their products and services through most efficient and hightech means. They say that they will invest in the modern tools and substantial allocation of resources will be made to achieve this objective during the current year. Their focus would be to constantly seek out growth opportunities through increased quality assets and by offering a wider range of products and services to their esteemed customers. There are significant growth opportunities for ASKARI BANK and they are confident in their


ability to grasp them. They are committed to enhancing the shareholders value and look forward with greater optimism to a prosperous future for ASKARI BANK.

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5. Brochure- ACBL Awards & Achievements 6. Economic Bulletin, Vol. 34, No.5 September October 2008, published Bi-monthly by Economic Research Wing, Askari Bank Ltd 7. Economic Bulletin, March-June 2008, published bi-monthly by Economic Research Wing, Askari Bank ltd. 8. ACBL News lines, s Newsletter January 2008