AN INTERNSHIP REPORT ON ASKARI BANK

Limited
By

Husnain Abbasi

An internship report submitted to the DEPARTMENT KASHMIR INSTITUTE

OF ECONOMICE.The University of Azad Jammu & Kashmir Muzaffarabad in
partial fulfillment of the requirements for the degree of

MASTER IN Commerce

DEPARTMENT KASHMIR INSTITUTE OF ECONOMICE

THE UNIVERSITY OF AZAD JAMMU & KASHMIR
MUZAFFARABAD

2019
AN INTERNSHIP REPORT ON ASKARI BANK
LIMITED

By

Husnain Abbasi
(39)

__________________________
Sardar Kamran khan
(Internship In-charge)

__________________________
(External Examiner)

__________________________
Syed Nisar Hamdani
(DEPARTMENT KASHMIR INSTITUTE OF ECONOMICE)

DEPARTMENT KASHMIR INSTITUTE OF ECONOMICE

THE UNIVERSITY OF AZAD JAMMU & KASHMIR
MUZAFFARABAD
2019

ii
Copyright© 2019 by Mrs.anjum yousaf
All rights reserved. No part of this thesis may be reproduced, distributed, or transmitted in any
form or by any means, including photocopying, recording, or other electronic or mechanical
methods, by any information storage and retrieval system without the prior written permission of
the author.

iii
 THE UNIVERSITY OF AZAD JAMMU &
KASHMIR MUZAFFARABAD

CERTIFICATE OF APPROVAL
This is to certify that internship report, entitled “An Internship Report on Askari Bank
Limited” is submitted by Mrs.Anjum yousaf No part of this report has been submitted
anywhere else for any other degree. This report is submitted to the Department
Kashmir Institute of Economics. The University of Azad Jammu & Kashmir Muzaffarabad
in partial fulfillment of the requirements for the degree of Master in economic.

The Examination Committee unanimously agrees to award Master in Commerce degree to Mr.
Arshad Hassan in the field of Management Sciences.

Examination Committee :

(a) External Examiner1: -------------------------------------------

(b) Internal Examiner 1: ------------------------------------------

(c) Internal Examiner 2: -------------------------------------------

Supervisor Name :
-------------------------------------------

Name of HOD : -------------------------------------------

iv
 THE UNIVERSITY OF AZAD JAMMU &
KASHMIR MUZAFFARABAD

AUTHOR’S DECLARATION

I, Mrs.Anjum yousaf (Roll No. 39), hereby state that my internship report titled, ‘An
Internship Report on Askari Bank Limited”’ is my own work and has not been submitted
previously by me for taking any degree from The University of Azad Jammu & Kashmir,
Muzaffarabad or anywhere else in the country/ world.

At any time, if my statement is found to be incorrect even after my graduation, the

University has the right to withdraw my Master Degree.

(Mrs.Anjum yousaf)

Dated: 28 October, 2019 Roll No: 39

v
 EXECUTIVE SUMMARY
As we all know very well that time and tide wait for none. So, because of this rapid change in
time and era we have to cope with it. During this era I got an opportunity of getting practical
knowledge about the Banking system in Pakistan. So to quench the thirst of practical exposure
and for getting the basic knowledge about Bank I joined Askari Bank Upper Adda branch
Muzaffarabad. During six week in Askari bank I gather all necessary information about Askari
Bank
Efforts have been made to compile this report in such a way that activates its salient features not
only for students but also for the layman. I have divided this report into different Chapters.
First Chapter is about introduction OF Askari bank. Second Chapter is about General Banking
Department gives us description about how to open an account, how to deposit and clearing.
Third Chapter discusses the procedure of customer dealing and satisfaction fourth Chapter is
about the branch where I worked and watch different function which I learned in Askari bank
Fifth Chapter is about the procedure of getting different type of loans and advances. Sixth
Chapter is gust of knowledge acquired by me. Chapter seven is about SWOT ANALYSIS of
Askari bank Chapter Eight tells about my knowledge because here I gave different type of
Recommendation to different problems.
At last I must say that this text is designed to stimulate the curiosity about management practices
Askari bank Ltd of Pakistan. And to raise reader’s consciousness about the banking system
working in Pakistan and outside the Pakistan.

vi
 TABLE OF CONTENTS
CERTIFICATE OF APPROVAL ................................................................................................................ iv
AUTHOR’S DECLARATION ..................................................................................................................... v
EXECUTIVE SUMMARY ......................................................................................................................... vi
CHAPTER NO. 1 ......................................................................................................................................... 1
1.1 INTRODUCTION ............................................................................................................................. 1
1.2 BACK GROUND ............................................................................................................................. 1
2.1. OVERVIEW OF THE BANK ............................................................................................................... 1
The Vision .......................................................................................................................................... 2
The mission......................................................................................................................................... 2
Core Values ........................................................................................................................................ 2
CHAPTER #02 ............................................................................................................................................. 3
ORGANIZATION AND DEPARTMENT................................................................................................... 3
2.1 ORGANIZATIONAL STRUCTURE: ............................................................................................. 3
2.2 BRACHES NETWORK ................................................................................................................... 5
2.3 BUSINESS VOLUME .................................................................................................................... 6
2.4 COMPETITORS............................................................................................................................... 6
2.3 INTRODUCTION OF ALL THE DEPARTMENTS...................................................................... 6
2.3.1 RETAIL BANKING DIVISION. ................................................................................... 6
2.3.2 CREDIT MANAGEMENT DIVISION ......................................................................... 6
2.3.3 HUMAN RESOURCE DIVISION ................................................................................. 6
2.3.4 FINANCE DIVISION .................................................................................................... 7
2.3.5 INFORMATION TECHNOLOGY DIVISION. ............................................................ 7
2.3.6 OPERATION DIVISION. .............................................................................................. 7
2.3.7 CONSUMER BANKING DIVISION ............................................................................ 7
2.3.8 AUDIT AND INSPECTION DIVISION ....................................................................... 7
CHAPTER # 03 ............................................................................................................................................ 8
PRODUCTS & SERVICES.......................................................................................................................... 8
3.1.1 BRANCH BANKING .................................................................................................... 8
3.1.2 ASKARI MAHANA BACHAT ACCOUNT ................................................................. 8
3.1.3 VALUE PLUS CURRENT ACCOUNT ........................................................................ 8
3.1.4 CURRENT ACCOUNT ................................................................................................. 8
3.1.5 SAVINGS ACCOUNT ................................................................................................... 8
3.1.6 ASKARI ASAAN ACCOUNT ...................................................................................... 9
3.1.7 ASKARI LITTLE CHAMPS ACCOUNT ..................................................................... 9
vii
 3.1.8 RUPEE TRAVELER CHEQUES................................................................................... 9
3.1.9 ASK4CAR ASKARI ...................................................................................................... 9
3.1.10 PERSONAL FINANCE ............................................................................................. 9
3.1.11 MORTGAGE FINANCE ......................................................................................... 10
3.2 REMITTANCE............................................................................................................................... 10
CHAPTER # 04 .......................................................................................................................................... 11
MY LEARNING EXPERIENCE ............................................................................................................... 11
4.1 ACCOUNT OPENING: ................................................................................................... 11
4.2 ISSUANCE OF CHEQUE BOOK: .................................................................................. 11
4.3 VOUCHERS PREPARATION: ....................................................................................... 12
4.4 REMITTANCE DEPARTMENT: .................................................................................... 12
4.5 CLEARING DEPARTMENT: ......................................................................................... 12
4.6 WHAT I LEARNT: .......................................................................................................... 13
CHAPTER # 05 .......................................................................................................................................... 14
FINANCIAL STATEMENT ...................................................................................................................... 14
5.1. LAST FIVE YEAR BALANCE SHEET ..................................................................... 14
5.2 FIVE LAST YEAR’S INCOME STATEMENT .......................................................... 15
5.3 HORIZONTAL ANALYSIS OF FIVE YEAR BALANCE SHEET ............................ 16
5.4 HORIZONTAL ANALYSIS OF FIVE YEAR PROFIT & LOSS............................... 18
5.5. VERTICAL ANALYSIS OF FIVE YEAR BALANCE SHEET ................................. 21
5.6 VERTICAL ANALYSIS OF FIVE YEAR OF PROFIT AND LOSS ACCOUNTS .. 22
CHAPTER #06 ........................................................................................................................................... 23
SWOT ANALYSIS .................................................................................................................................... 23
6.1 STRENGTHS .................................................................................................................. 23
6.2 WEAKNESSES ............................................................................................................ 24
6.3 OPPORTUNITIES............................................................................................................ 24
6.4 THREATS ........................................................................................................................ 25
CHAPTER # 07 .......................................................................................................................................... 26
OBSERVATION AND RECOMMENDATION ....................................................................................... 26
IDENTIFICATION OF PLAUSIBLE PROBLEM(S) ..................................................................... 26
RECOMMENDATIONS .................................................................................................................. 26
CONCLUSION ......................................................................................................................................... 28
REFERENCES ......................................................................................................................................... 29

viii
 CHAPTER NO. 1
INTRODUCTION

1.1 INTRODUCTION
This is an essential academic requirement to complete an internship program of eight weeks in

reputed organizations. Report writing that is an integral part in fulfilment of requirements

follows the internship for degree of Msc.economice. A report encompasses the experience of the

internee, his learning and analysis in light of which recommendations are made. This Internship

report has been written on “Askari Bank”

1.2 BACK GROUND

Being a student of Msc.economice, banking was the most suitable field to study. Hence the Bank

of Askari bank limited was chosen to get know how about the banking profession. Askari Bank

Limited Formerly known as Askari Commercial Bank Limited. Askari Bank LTD was

incorporated in Pakistan on October 9, 1999 as a Public Limited Company and listed on the

Karachi, Lahore, and Islamabad stocks exchanges. The registered office of the Bank is located at

AWT Plaza, The Mall Rawalpindi. The Bank has 200 branches (2007: 150 branches); 199 in

Pakistan and Azad Jammu and Kashmir, including 18 Islamic Banking Branches, 11 sub-

branches and a wholesale bank branch in the Kingdom of Bahrain

2.1. OVERVIEW OF THE BANK

Askari Bank Limited Formerly known as Askari Commercial Bank Limited. Askari Bank LTD

was incorporated in Pakistan on October 9, 1999 as a Public Limited Company and listed on the

Karachi, Lahore, and Islamabad stocks exchanges. The registered office of the Bank is located at

AWT Plaza, The Mall Rawalpindi. The Bank has 200 branches (2007: 150 branches); 199 in

1
Pakistan and Azad Jammu and Kashmir, including 18 Islamic Banking Branches, 11 sub-

branches and a wholesale bank branch in the Kingdom of Bahrain.

Banks, s principal activities are to provide lending, depository and related financial services.

Financial services include credit risk management, foreign trade, treasury, corporate and

merchant banking, retail banking, electronic banking, credit cards, marketing and customer

services. Bank is playing a leading role in the Banking sector with broad product lines &

customer need based services. Bank is operating with 200 branches in conventional banking as

well as Islamic banking moods of financing. Bank is leading the way to the most modern and

dynamic banking in the country.

The Vision
To be the bank of first choice in the region.

The mission
To be the leading private sector Bank in Pakistan with an international presence, delivering

quality services through innovative technology and effective human source management, in a

modern and progressive organizational culture of meritocracy, maintaining high ethical and

professional standards, while providing enhance value to all our stakeholders and contributing to

society.

Core Values

• Integrity

• Commitment

• Team Work

2
 CHAPTER #02

ORGANIZATION AND DEPARTMENT

2.1 ORGANIZATIONAL STRUCTURE:

Organization is defined as a system in which individuals and groups operating at different

levels perform the task assigned to them within the framework of delegated authority and

responsibility which are rationally coordinated to achieve the desired organizational goals.

Organization makes management easier, effective and result oriented. An organization

designed and structured on planned lines promotes collaboration and negotiation among

individuals in a group and thus improves the effectiveness and efficiency of communication

within the organization. This function creates clear cut lines of authority and responsibility in

the organization.

In fact organization establishes relationships among the people so that they collectively

contribute to the attainment of organizational goals effectively. Thus organization is a means to

an end. It is also an important part of management.

Similarly, organizational structure or hierarchy of a firm provides boundaries for authority of

persons which further clarifies responsibility and the scope of authority. Basically, it shows

who is responsible to whom and who has the authority to give orders to someone. Actually

these are the tools by which a manger is able to exercise discretion and create an environment

for individual performance.

3
2.2 ORGANOGRAM

4
2.2 BRACHES NETWORK

 Conventional Branches 421

 North Region: 144

 Central Region: 138

 South Region:

 Islamic Branches 94

 North Region: 35

 Central Region: 35

 South Region: 24

 ATM (onsite/offsite) 605

 North Region: 233

 Central Region: 217

 South Region: 153

5
2.3 BUSINESS VOLUME
Rupees in million
2017 2016 Growth %
Total assets 619,139 535,867 15.54
Deposits 472,811 433,172 9.15
Advances - net 235,164 199,931 17.62
Investments 295,846 268,021 10.38
Shareholders’ equity 32,577 26,853 21.32
Profit before taxation 8,477 8,432 0.54
Profit after taxation 5,221 5,043 3.51
Earnings per share – rupees 4.14 4.00 3.51

2.4 COMPETITORS
The competitors of the Bank of Punjab are the other commercial banks in Pakistan such as:
National Bank of Paksitan
Muslim Commercial Bank Limited
Soneri Bank Limited
United Bank Limited Allied Bank
Faisal Bank Limited
Habib Bank Limited

2.3 INTRODUCTION OF ALL THE DEPARTMENTS

The departments and divisions of Bank of Punjab are as follows:

2.3.1 RETAIL BANKING DIVISION.

Retail banking deal with customer and execute their transaction dairectly.it provide the service of

saving account mortgage loan personal loan debt cards amount checking credit cards ATMs.

2.3.2 CREDIT MANAGEMENT DIVISION

In this division bank deal with the credit, banks give loan to individual and corporations.

2.3.3 HUMAN RESOURCE DIVISION

This division perform the duty of hiring employee, training the employee as well as retaning the

employee and if nessary firing the emlooyee.

6
2.3.4 FINANCE DIVISION
This division controls the overall activists relating to finance i.e. monitoring the investment

activities, financing activities, debit and credit of funds and reason therefore with proof.

2.3.5 INFORMATION TECHNOLOGY DIVISION.

This department control and record the data related with bank. The backup of all branches is sent

to IT department on daily basics.

2.3.6 OPERATION DIVISION.

This division controls the whole operation of all branches and control the cash activities,

cheques, account opening and other things about operations.

2.3.7 CONSUMER BANKING DIVISION

As far as working of the consumer banking division is to take care of customer and deal lot of

things related to (customer complaint, customer care etc.). The division is normally working at

head office.

2.3.8 AUDIT AND INSPECTION DIVISION

This department of bank includes the audit of all the branches. They do audit of the branches and

give some opinions to execute their transaction.

7
 CHAPTER # 03

PRODUCTS & SERVICES

3.1.1 BRANCH BANKING

Askari Bank aims to provide its customers with a wide array of financial solutions catering to

diverse banking needs. We offer Conventional, Corporate, Consumer, Islamic, and Agriculture

Banking services through a network of 500 branches / sub-branches in major cities, towns and

cantonments.

3.1.2 ASKARI MAHANA BACHAT ACCOUNT

Askari Mahana Bachat Account is a term deposit product for individual and corporate customers

with a medium term investment appetite. It offers individual customers the option of investing

for one and two years tenures, while corporate customers can invest for two years. It is designed

to cater to the saving needs of customers who want profit on a monthly basis with the option of

availing financing facility of upto 90% of the principal amount.

3.1.3 VALUE PLUS CURRENT ACCOUNT

Bank offers value plus deposits with greater financial freedom and security where customers can enjoy
flexibility of a normal checking account.

3.1.4 CURRENT ACCOUNT

Current Accounts cater to a variety of financial needs of our diverse customer base with added

benefits of free cheque books, issuance of bankers’ cheques and much more

3.1.5 SAVINGS ACCOUNT

Savings accounts offered by the Bank to both individual and institutional customers include

Askari Special Deposit and normal savings account based on profit and loss sharing. Askari

savings deposit offer attractive features and competitive returns.

8
3.1.6 ASKARI ASAAN ACCOUNT
Askari Bank offers Asaan Account to unbanked / under-banked individuals. The facility is

available in current and savings account categories. As per the name of this product, its hassle-

free account opening and operating procedure helps the lower income groups to fulfill their

banking requirements with ease and comfort.

3.1.7 ASKARI LITTLE CHAMPS ACCOUNT

Askari Little Champs Account is designed specifically for minors (individuals below the age of

18 years). It introduces the concept of saving to the children and helps them understand the value

of money at an early age. The account offers two variants i.e. current and savings accounts. Little

Champs Account comes with a money box as a welcome gift, along with a Visa Debit Card and

cheque book. It offers high returns, free education insurance plan and surprise gifts on birthday.

3.1.8 RUPEE TRAVELER CHEQUES

Askari Bank offers its customers the widely accepted Rupee Traveler Cheque, which eliminates

all financial risks while travelling. It is a safe and secure.

3.1.9 ASK4CAR ASKARI

Ask4Car is an auto financing product for new, used and imported vehicles. It offers competitive

mark-up, flexible repayment plan and quick processing without any hidden costs. The product is

offered to the customers for a maximum tenure of 7 years.

3.1.10 PERSONAL FINANCE

With unmatched financing features in terms of loan amount, payback period and easy monthly

installments, Askari Bank’s Personal Finance makes sure that our customers get the most out of

their loans. The product tenure ranges from 1 – 5 years and is designed primarily for salaried

individuals.

9
3.1.11 MORTGAGE FINANCE
Whether our customers plan to construct a house, buy a constructed house, or renovate a house,

Askari Mortgage Finance enables them to pursue their goals without any hassle. Askari

Mortgage Finance is a premium house financing product offered to customers for a period up to

20 years.

3.2 REMITTANCE
Demand Draft

Clients of the bank of askari bank are also facilitated by issuance of Demand Drafts. If the client

intends to transfer funds within the State, the same is done by issuing DD on askariBranches

where as in case the funds are remitted outside the state, the same is done through UBL as the

Askari bank is having agency arrangements with United Bank Limited

Utility Bills

All the branches of the Bank are authorized to collect Water & Electricity Bills.

Collection of Telephone Bills will be started very soon.

Lockers

Lockers’ facility is available in main branches in three different sizes Small, Medium and Large

on annually fee with one time Security Deposit respectively to the size of locker. Locker holders

need to have an account in the Bank.

10
 CHAPTER # 04

MY LEARNING EXPERIENCE
I have accomplished my internship program of eight weeks at Askari Bank Upper Adda branch

Muzaffarabad. During internship I learned things regarding my personal experience. Really it

was a useful experience to deal with different types of Customers.

The Branch Manager introduces me with all staff of the Branch. Under the supervision of

Operational Manager of branch I worked in following departments as an Internee.

4.1 ACCOUNT OPENING:

Account opening is a very sensitive procedure. It contains the basic information

regarding

An account opening from is given to the customer if he wants to open an account. It also

services as the purpose of giving complete record of account holder. After completing all

the requirements mentioned in account opening from an account number is given to the

customer. Then the customer becomes the holder of account and can deposit or with draw

money when and where required. Account opening register is maintenance so that every

customer has a unique account number. While in ledger, the entry is posted along with

the address and personal information of the account holder and the mode of transaction

he wants to make with the bank.

4.2 ISSUANCE OF CHEQUE BOOK:

Amount from the account could only be withdrawn through cheque. There is a slip called

CBR (Cheque book Regulation) given to the customer on his request for issuance of

cheque book, after the account has been opened. The basic information on CBR is title of

account holder, account number, leaves the cheque book contains, signature of applicant,
11
 signature of officer and the signature of operational manager. After verification of all the

information mentioned above cheque book is issued. A cheque book issuance register is

maintained on which complete record regarding the cheque number of the whole cheque

book is kept. Bank charges specific amount for this cheque book which is directly

deducted from the Customer’s account.

4.3 VOUCHERS PREPARATION:

Voucher is an authorized piece of paper containing record of specific transacting.

Different vouchers are prepared as needed.

There is different type of voucher such as.

Debit voucher e.g. cheque, expenses voucher, pay order, DD

4.4 REMITTANCE DEPARTMENT:

Remittance department was the core area of my internship, where I did a lot of work. The

most popular way of remittance is Demand Draft. During the eight weeks training, I have

worked on every aspect of DD from issuance to payment. DD is prepared and handed

over to customer and he sends it to or handed over the party at his own expense. I also

prepared pay order (PO). The procedure of PO is same as above for Demand Draft.

Another type of remittance instrument is the Rupee Travelers Cheque. Askari bank upper

adda Branch also deals in the issuance and encashment of RTC.

4.5 CLEARING DEPARTMENT:

This department receives the cheques and other negotiable instruments drawn on local

branches of other banks. State bank of Pakistan has a clearing house , in which cheques

and other negotiable instruments are brought by each local bank representative and the

12
 claim of each bank on other are offset and settlement is made by the payment. There are

two types of Clearing i.e., inward clearing& Outward Clearing.

4.6 WHAT I LEARNT:

During my internship period I learnt so many things, especially the exposure to

professional world was great. First of all I came to know that how banks work and where

our banking industry is moving. Askari bank gave me the opportunity to learn many

things as follows:

 I learn about accounting opening procedure.

 I learnt how to deal with customers.

 I learnt how remittance section works with all its features.

 I learnt about general banking including all products and services of askari bank.

I have the background of B.Com and Msc.economice. These two studies helped me a lot in my

work at askari bank For maintaining the accounts, I used the knowledge of Msc.economice

where we were taught debit and credit entries, conversion skills and how to communicate

effectively which helped me to deal with customers and my colleagues and officers. Managing

many things at time is the skill which I learnt during Msc.economice program.

13
 CHAPTER # 05

FINANCIAL STATEMENT

5.1. LAST FIVE YEAR BALANCE SHEET

Rupees in million

Details 2017 2016 2015

Cash and balances with treasury banks 42,568 29,685 19,130
Balances with other banks 5,846 8,296 7,068
Lending’s to financial institutions 5,846 813 2,503
Advances 295,846 199,931 170,677
Investments 235,164 268,021
217,214
Operating fixed assets 11,020 9,230 8,299
Assets held for sale 262 - 54
Deferred tax assets - - 875
Other assets 21,597 19,891 20,337
619,139 535,867 447,083

Bills payable 8,580 6,095 6,855

Borrowings 89,262 57,323 13,742
Deposits and other accounts 472,811 433,172 387,587
Sub-ordinated loans 4,995 4,997 7,993
Deferred tax liabilities 96 - 10,388 96 -
Other liabilities 526 7,330 7,199
586,562 509,014
423,375
Net Assets 32,577 26,853 23,707

Represented by
Share capital 12,603 12,603 12,603
Reserves 8,671 6,446 4,824
Unappropriated profit / (loss) 4,084 2,763 1,862
25,358 21,812 19,289
Surplus on revaluation of assets - net 7,219 5,041 4,418
of
32,577 26,853 23,707

14
5.2 FIVE LAST YEAR’S INCOME STATEMENT

Details 2017 2016 2015

Mark-up / return / interest 35,512 36,592 34,604
Mark-up / return / interest expensed 20,497 21,690 22,711
Net mark-up / interest income 15,016 14,902 11,893
Provision / (reversal) against non-performing (729) 316 (83)
loans and advances - net
Impairment loss on available for sale investment 23 217 208
Provision for diminution in the value of 346 198
investments
Provision against reverse repo 48
Reversal of provision against purchase under
resale agreement
Impairment loss on immovable assets
Bad debts written off directly
(659) 879 322
rk-up / interest income after provisions 15,674 14,023 11,571
Non mark-up/interest income
Fee, commission and brokerage income 2,156 2,156 1,732
Dividend income 305 303 349
Income from dealing in foreign currencies 640 835 1,103
Gain on sale of investments - net 3,527 3,246 1,804
Unrealised gain on revaluation of investments
classified as held for trading - net -
Other income 479 573 744
Total non-markup / interest income 7,106 6,690 5,435
22,781 20,712 16,889
Non mark-up/interest expenses
Administrative expenses 14,079 12,014 11,052
Other provisions / write offs 3 50 47
Other charges 222 217 126
Total non-markup / interest expenses 14,304 12,281 11,225
Extra ordinary / unusual items - -
Profit / (loss) before taxation 8,477 8,432 5,781
Taxation – current (2,129) (2,330) (1,014)
Taxation – prior years’ (266) (416) -
Taxation – deferred ( (861) (642) (753)
(3,256) (3,388) (1,766)
Profit / (loss) after taxation 5,221 5,043 4,015

15
5.3 HORIZONTAL ANALYSIS OF FIVE YEAR BALANCE SHEET

Details 2017 2016 2015

VS VS VS
2016 2015 2014
Cash and balances with treasury banks 43% 55% 27%
Balances with other banks 30% 17% 22%
Lendings to financial institutions 74% 76% 37%
Advances 10% 23% 31%
Investments 18% 17% 4%
Operating fixed assets 19% 11% 3%
Assets held for sale 0% 0% 0%
Deferred tax assets - 0% - -71%
100%
Other assets 9% -3% 26%
16% 20% 13%

Bills payable 41% 11% 21%

Borrowings 56% 317% -44%
Deposits and other accounts 19% 12% 16%
Sub-ordinated loans 0% -37% 100%
Liabilities against assets subject to finance lease 0% 0%
Deferred tax liabilities 96 - 446% 0% 0%
Other liabilities 42% 2% 9%
15% 20% 13%
Net Assets 21% 13% 27%
Represented by
Share capital 0% 0% 0%
Reserves 35% 34% -14%
Unappropriated profit / (loss) 48% 48% 21%
16% 13% 16%

16
Comments

• Cash and balances of the askari bank decrease in 2016 as compared to 2015

• Balances with other banks shows increased trend as compared to base year 2015

• The lending to financial institution shows a zero trend.

• The investments of the askari bank is higher in 2016

• Advances made by askari bank show mix trend through the five years.

• Operating fixed assets of askari bank also shows a increase in 2016.

• Other assets show decrease in 2016 but increase in 2015.

• The Bill payable also shows an increasing trend.

• The deposits and other accounts of the askari bank show an increasing trend during the

years. The other liabilities also shows increasing trend.

17
5.4 HORIZONTAL ANALYSIS OF FIVE YEAR PROFIT & LOSS

Details 2016 2015 2014

VS VS VS
2015 2014 2016
Mark-up / return / interest earned 23% 16% 24%
Mark-up / return / interest expensed -6% -4% -17%
Net mark-up / interest income 1% 25% 38%
Provision / (reversal) against non-performing 331% 480% 101%
loans and advances - net
Impairment loss on available for sale -90% 5% 37%
investment
Provision for diminution in the value of -86% 75% -79%
investments
Provision against reverse repo 0% 0% 0%
Reversal of provision against purchase under 0% 0% 0%
resale agreement
Impairment loss on immovable assets 0% 0% 0%
Bad debts written off directly 0% 0% 0%
- 173% -97%
175%
mark-up / interest income after provisions 12% 21% -562%
Non mark-up/interest income
Fee, commission and brokerage income 24% 21% 23%
Dividend income 1% -13% -31%
Income from dealing in foreign currencies -23% -24% 97%
Gain on sale of investments - net 9% 80% 120%
Unrealized gain on revaluation of
investments
classified as held for trading - net 0% 0% 0%
Other income -16% -23% 38%
Total non-markup / interest income 6% 23% 51%
10% 22% 1,45%
Non mark-up/interest expenses
Administrative expenses 17% 6% -59%
Other provisions / write offs -93% 6% -59%
Other charges 2% 72% 457%
Total non-markup / interest expenses 16% 9% 18%
Profit / (loss) before taxation 56% 46% -168%
Taxation – current -9% 130% 981%
Taxation – prior years’ 0% 0% 0%
18
Taxation – deferred ( 34% -15% -125%
Profit / (loss) after taxation 94% 92% 88%

19
Comments:

• The interest earned by askari bank shows an increasing trend during the last five

years.

• The interest expense also shows a decrease trend.

• The net mark/interest income after provision shows increasing trend.

• The dividend income also shows a fluctuating trend during all the years.

• The profit before taxation shows a mixed trend in five years.

• The profit after taxation also shows a mixed trend.

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5.5. VERTICAL ANALYSIS OF FIVE YEAR BALANCE SHEET

Details 2016 2015 2014

Cash and balances with 7% 6% 4%
treasury banks
Balances with other banks 1% 2% 2%
Lending’s to financial 1% 0% 1%
institutions
Advances 48% 50% 49%
Investments 38% 37% 38%
Operating fixed assets 2% 2% 2%
Assets held for sale
Deferred tax assets - 0% 0% 0%
Other assets 3% 4% 5%
100% 100% 100%

Bills payable 1% 1% 2%
Borrowings 14% 11% 3%
Deposits and other accounts 76% 85% 92%
Sub-ordinated loans 0% 1% 2%
Liabilities against assets 0% 0% 0%
subject to finance lease
Deferred tax liabilities 96 - 0% 0%
Other liabilities 2% 1% 2%
96% 100% 100%
Net Assets 5% 5% 5%
Represented by
Share capital 1% 2% 3%
Reserves 1% 2% 2%

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5.6 VERTICAL ANALYSIS OF FIVE YEAR OF PROFIT AND LOSS ACCOUNTS

Details 2016 2015 2014

Mark-up / return / interest 100% 100% 100%
Mark-up / return / interest expensed 58% 59% 66%
Net mark-up / interest income 42% 41% 34%
Provision / (reversal) against non- -2% 1% 0%
performing loans and advances - net
Impairment loss on available for 0% 1% 1%
sale investment
Provision for diminution in the 0% 1% 1%
value of investments
Provision against reverse repo 0% 0% 0%
Reversal of provision against -
purchase under resale agreement
Impairment loss on immovable -
assets
Bad debts written off directly - 0% 0%
-2% 2% 1%
rk-up / interest income after 44% 38% 33%
provisions
Non mark-up/interest income
Fee, commission and brokerage 6% 5% 4%
income
Dividend income 1% 1% 1%
Income from dealing in foreign 2% 2% 3%
currencies
Gain on sale of investments - net 10% 9% 5%
Unrealized gain on revaluation of 0% 0%
investments
classified as held for trading - net 0% 0% 0%
Other income 1% 2% 2%
Total non-markup / interest income 20% 18% 15%
64% 57% 49%
Non mark-up/interest expenses
Administrative expenses 40% 33% 32%
Other provisions / write offs 0% 0% 0%
Other charges 1% 1% 0%
Total non-markup / interest 40% 34% 32%
expenses
Profit / (loss) before taxation 24% 23% 17%
Taxation – current -6% -6% -3%
Taxation – prior years’ -1% 1% 0%

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 CHAPTER #06

SWOT ANALYSIS

A SWOT analysis of a bank formally evaluates the financial institution’s strengths,

weaknesses, opportunities and threats. This analysis identifies these four main elements

to help upper management better leverage its strengths to take advantage of future

business opportunities while better understanding its operational weaknesses to combat

threats to potential growth. A SWOT analysis can also address many other scenarios,

such as new business initiatives, marketing budgets or even advertising campaigns

SWOT is an abbreviation for;

 Strength

 Weaknesses

 Opportunities

 Threats

6.1 STRENGTHS
Askari Bank has set its firm foot in Pakistan and has gained its strengths

over the period of time an effort of enlisting its strengths can be done as

follow;

 It has a good reward policy of giving bonuses and incentives for its customers.

 Askari Bank has a flawless Customer services.

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  The MIS they use in the company is always updated well ahead of time giving

the bank an upper edge

 Honesty, Equality and fairness prevail throughout the organization and that is

the utmost requirement.

 The card division has strong network facilities nationwide

 The bank has also started ATM facility in most of its branches. 24-hour

banking is new trend in Pakistan and ACBL has also taken apart in this trend.

 One distinctive feature of the bank is that it is the only bank working for the

welfare of army officers, which was established by Army Welfare Trust.

 The productivity of the bank is very good. Bank is providing a high quality

service to its customers.

6.2 WEAKNESSES

 It’s good to have a friendly working environment but there should be a code

of conduct.

 Because of the increasing workload the employees a being overburdened.

 The inventory management is not up to the mark

 Promotions and transfer from departments is a political issue.

 Bank is not introducing new products and new saying schemes.

6.3 OPPORTUNITIES
 Better and convenient services to employees and business class.

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  Expansion of their branch network can be very helpful.

 Engage qualified professionals for providing specialized banking products

and services to their customers.

 Bank can extend its network in other countries.

 It can enhance its profitability by making use of new technology.

6.4 THREATS
 Very uncertain economic conditions.

 Actions taken by competitors.

 Political instability.

 Employees turnover rate is too high

 ACBL has many competitors, which are continuously increasing its

products and marketing aggressively. It may cause its customers to shift to

competitors.

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 CHAPTER # 07

OBSERVATION AND RECOMMENDATION

IDENTIFICATION OF PLAUSIBLE PROBLEM(S)

There are problems being faced here at Askari Bank some of which can

easily be highlighted;

 Bank is facing a high tax rate, which affects its profitability and attractiveness

for new entrants.

 Middle class and low income group have limited access to bank credit.

 Weak internal controls, non-merit based recruitments

 High administrative costs affect the performance of bank.

 Continuous maintenance is compulsory.

 Favoritisms while promoting employees.

 Education level of the employees

RECOMMENDATIONS
Besides taking care of the above mentioned problems there are some

recommendations which can be advised to the bank, which can be helpful

for the Bank:

1. Employees should be given a course of training from time to time or

they can also use the on the Job training method. Training can be done

in the following areas

2. New advertising campaigns should be launched especially in the

electronic advertisement areas

3. There is a need for expansion of the working area especially in the

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 finance department as the work load is increasing and new

recruitments are compulsory

4. Politics should be discouraged in such an environment.

5. The employees should be given more incentives and rewards for their

good performances.

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 CONCLUSION
In the Asker Bank I have spent eight week for internship programmed and try to understand the

working of different departments. I come up with some areas to improve like customer

facilitation, recruitment, rotation of staff between the branches. To capture more market share

bank has to be introducing new facilitation plan for the customer satisfaction. There are some

flaws in the recruitment policy and need to be hire staff with banking related qualification which

will give the better outcome. Over all bank performance is good as we look its age because it

has to cover long distance to become first choice for customer in the banking sector. During

policy formation must keep in mind that how customer will involve with the policy and what

kind of benefits and problems have to be faced by the customer through this policy. New

products & Services will have to be introduce in the bank by analyzing the customer needs and

market demands which will build the image and prestigious among the customers. Bank has lot

of potential to become a leader in the banking sector.

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 REFERENCES
For the preparation of this report I have used sources are given bellow:
Doug, C and Jenni, G. (2003) Clients forever, (1st Ed). Chicago: McGraw Hill.
Eddyston, C. (1991). Managing Banks Effectively, (1st Ed). Canada: john Wiley and Sons.
Website
http://akbl.com.pk/wp-content/uploads/2018/03/Askari-Bank-Annual-Report-2017-Final.pdf
https://islamicmarkets.com/publications/askari-bank-limited-annual-report-31-december-2016
http://akbl.com.pk/investor-relations/financials/annual-reports/
https://www.slideshare.net/MuhammadAli260/askari-bank-limited-55000307
https://en.wikipedia.org/wiki/Askari_Bank
http://akbl.com.pk/

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