Dedication: (University of Central Punjab, PCBA-PICS)

DEDICATION
I would like to dedicate this project to my internship teacher, who

helped me understand the problems in a better way, my parents
because of whom I was able to complete my internship and who
encouraged me throughout. I would also like to dedicate this project to
the Branch manager of Askari Bank Zarrar Shaheed road branch Mr.
Abid Zafar, operations manager Mr. Imran Khan and all other staff
members who made it easier for me to understand the operations that
take place in the bank.
(University of Central Punjab, PCBA-PICS ) 1

Table of Contents
1. INDUSTRY PROFILE:...............................................................................................................5
1.1 BANK:...................................................................................................................................5
1.2 HISTORY OF BANKING IN PAKISTAN:..........................................................................5
1.3 BANKING ORGANIZATION IN PAKISTAN:...................................................................6
1.4 DIFFERENT TYPES OF BANKS IN PAKISTAN:.............................................................8
2. COMPANY PROFILE:.............................................................................................................11
2.1 ASKARI BANK:.................................................................................................................11
2.2 INTRODUCTION:..............................................................................................................11
2.3 SERVICES PROVIDED BY ASKARI BANK:..................................................................13
2.4 PRODUCTS OF ASKARI BANK:.....................................................................................13
2.5 DIFFERENT TYPES OF BANKING AT ASKARI BANK:..............................................14
2.6 AWARDS AND ACHIEVEMENTS:.................................................................................18
2.7 CORE VALUES:.................................................................................................................19
2.8 PROFIT / MARKUP RATES:.............................................................................................20
2.9 BRANCHES OF ASKARI BANK IN LAHORE:..............................................................21
3. COMPANY BUSINESS PROCESSES:...................................................................................24
3.1 BUSINESS PROCESS OF ACCOUNT OPENING DEPARTMENT:..............................24
3.2 BUSINESS PROCESS OF CASH DEPARTMENT:..........................................................28
3.3 BUSINESS PROCESS OF CLEARANCE AND REMITTANCE DEPARTMENT:........29
3.5 BUSINESS PROCESS OF ACCOUNTS DEPARTMENT:...............................................40
4. COMPANY DEPARTMENTAL FUNCTIONS:......................................................................44
4.1 ACCOUNT OPENING DEPARTMENT:...........................................................................44
4.2 CASH DEPARTMENT:......................................................................................................44
4.3 CHEQUE CLEARANCE AND REMITTANCE DEPARTMENT:...................................44
4.4 CREDITS DEPARTMENT:................................................................................................45
4.5 ACCOUNTS DEPARTMENT:...........................................................................................45
5. SWOT ANALYSIS OF THE COMPANY:..............................................................................46

5.1 STRENGTHS:.....................................................................................................................46
5.2 WEAKNESSES:..................................................................................................................47
5.3 OPPORTUNITIES:..............................................................................................................48
5.4 THREATS:...........................................................................................................................49
6. IDENTIFICATION OF PLAUSIBLE PROBLEM(S):.............................................................51
7. RECOMMENDATIONS FOR A SUITABLE COURSE OF ACTION:..................................52
8. CONCLUSION:........................................................................................................................53
9. BIBLIOGRAPHY:....................................................................................................................54

EXECUTIVE SUMMARY
I did my 6 weeks internship from 1st December 2010 – 15th January 2011 at Askari Bank Zarrar
Shaheed road branch. Askari Bank commenced its operation on April 1st, 1992 and now has
more than 50 branches nation-wide. Its Head office is in AWT Plaza Rawalpindi. Askari Bank is
involved in different types of banking such as Consumer banking, Agriculture banking, Islamic
banking which offers a variety of products and services. At Zarrar Shaheed road branch different
departments perform their functions daily in an effective manner. Departments include Account
Opening Department, Clearance and Remittance department, Cash Department, Credits
Department and Accounts Department. I spent time in Clearance and Remittance Department,
Accounts Department and Account Opening Department. I came to know about different types
of accounts. I learnt about the process of Account opening, Clearance and Remittance and
Accounts. I also learned how to interact with the customer and how the customers are dealt in
different situations and also about the different departmental functions. Every organization has
some strengths and weaknesses and same is the case with Askari Bank Limited. It competes with
its competitors on the basis of its strengths and it needs to work on eliminating the weaknesses
which can give the competitor a chance to take advantage of them or to outperform. By avoiding
threats and taking advantage of different opportunities that are available to Askari Bank it can
gain a competitive advantage over its rivals. There are certain problem areas on which Askari
Bank needs to work because by solving all those problems it can satisfy its customers. I really
had a very good experience of doing this internship and it gave me an understanding of how
different operations take place at bank.

1. INDUSTRY PROFILE:
1.1 BANK:
ORIGIN & HISTORY:
The word “Bank” is of a European origin and is derived from the Italian word “BANCO”, which
means a table or a counter. In the opinion of the eminent scholars of banking, the reason why this
word was given to the banking business was the then prevailing traditions of Lombardian money
changers. It was at the end of the middle ages when the trade and the business of exchange of
money was flourishing in the Northern cities of Italy and the money changers used the wooden
benches to carry out their business in the markets of buying and selling of various currencies.
A bank is a financial intermediary that accepts deposits and channels those deposits into lending

activities, either directly or through capital markets. A bank connects customers with capital
deficits to customers with capital surpluses.
1.2 HISTORY OF BANKING IN PAKISTAN:
Prior to partition in 1947, banking in Pakistan was dominated by branches of British banks. The
State Bank of Pakistan, the central bank, was formed after partition in 1948. It assumed the
supervisory and monetary policy powers of the State Bank of India. In the period of 60s to 70s
the emergence of a number of specialized development finance institutions (DFIs) such as
Industrial Development Bank of Pakistan (IDBP) and the Agricultural Development Bank
(ADB).These DFIs were either controlled directly by the state or through the SBP, and were
intended to concentrate on specific priority sector lending. In 1974 all domestic commercial
banks were nationalized by the Government.
The Pakistan Banking Council was established, which assumed the role of a banking holding
company but with limited supervisory powers. However, PBC was dissolved in 1997, leaving the
SBP as the sole regulatory authority for banks and financial institutions in Pakistan.
Nationalization of the banking sector led to pet projects. The branch network of NCBs also
proliferated in an effort to provide banking services to all regions/territories of the country, often
with disregard to the viability or feasibility of such expansion.
1.3 BANKING ORGANIZATION IN PAKISTAN:
Pakistan’s financial sector consists of Scheduled Commercial Banks which include nationalized,
foreign, and private banks; and Non-banking Financial Institutions (NBFIs) which include
Development Finance Institutions (DFIs), Investment Banks, leasing companies, modarabas, and
housing finance companies.
Scheduled Banks and NBFIs (excluding modaraba and leasing companies) are both regulated by
the State Bank of Pakistan’s Prudential Regulations, albeit through different wings, and are
subject to different SBP regulatory requirements such as capital and liquidity reserve
requirements.
Modaraba and leasing companies are being regulated by the Securities and Exchange
Commission of Pakistan (formerly Corporate Law Authority), which is a body corporate.
Compared to commercial banks which cater mostly to short term working capital requirements,
NBFIs cater to medium and long term financing needs and, thus, are barred from engaging in any
commercial banking activities including trade business and issuing cheques. However, the SBP
allowed commercial banks to undertake long term project lending.

Structure of financial sector in Pakistan
NBFIs
 Modarabas
Scheduled Banks (47)  Leasing Companies
 Mutual Funds
 Commercial Banks  Specialized Financial
 Specialized Banks (DFIs)
 Investment Banks
 Housing Finance
Companies
Specialized Banks Commercial Banks
Foreign Banks Domestic Banks
(22) (25)
(Structure of Financial Sector in Pakistan)
Exhibit 1.1

1.4 DIFFERENT TYPES OF BANKS IN PAKISTAN:
Different types of banks include,
1. NATIONALIZED SCHEDULED BANKS:
 National Bank of Pakistan

 The Bank of Punjab
 The Bank Of Khyber
 The Sindh Bank
 Lahore 0321-7330707
2. SPECIALIZED BANKS:
 Industrial Development Bank

 Zarai Taraqiati Bank Limited[
 Punjab Provincial Cooperative Bank
 SME Bank
 Arslaan Bank Limited
3. DEVELOPMENT FINANCIAL INSTITUTIONS:
 Pak China Investment Company Limited, Islamabad

 Pak Kuwait Investment Company Limited, Karachi
 Pak Libya Holding Company Limited, Karachi
 Pak Iran Joint Investment Company Limited, Karachi
 Pak-Oman Investment Company Limited, Karachi
 Saudi Pak Industrial and Agricultural Investment Company Limited, Islamabad
 House Building Finance Corporation, Karachi
 Investment Corporation of Pakistan, Karachi
 Pak Brunei Investment Company Limited, Karachi

4. COMMERCIAL BANKS:
 Allied Bank Limited

 Bank Alfalah
 Habib Bank Limited
 Bank AL Habib
 Standard Chartered Bank Limited
 CitiBank Limited
 United Bank Limited
 Askari Bank Limited
 MCB Bank Limited
5. INVESTMENT BANKS:
 BMA Capital Management Limited

 Invest Capital Investment Bank Limited
 AMZ Securities
 Orix Leasing (Pakistan) Limited
 [Trust Investment Bank Limited]
 JS Investment Bank Limited
 Atlas Investment Bank Limited
6. DISCOUNT AND GUARANTEE HOUSES:
 First Credit & Discount Corp Limited

 National Discounting Services Limited
 Speedway Fordmetall (Pakistan) Limited
7. HOUSING FINANCE COMPANIES:
 Asian Housing Finance Limited

 Citibank Housing Finance Company Limited
 House Building Finance Corporation
 International Housing Finance Limited
8. MICROFINANCE BANKS:
 NRSP Micro Finance Bank Limited

 The First Micro Finance Bank Limited
 Khushali Bank Limited
 Karakuram Bank
 Network Micro Finance Bank
 Pak Oman Micro Finance Bank
 Rozgar Micro Finance Bank, Karachi
 Tameer Microfinance Bank Limited
 Kashf Microfinance Bank Limited
9. ISLAMIC BANKS:
 AlBaraka Islamic Bank (Merged into Al Baraka Bank (Pakistan) Limited[2])

 BankIslami Pakistan Limited
 Dubai Islamic Bank Pakistan limited
 Dawood Islamic Bank Limited
 Emirates Global Islamic Bank Limited (Merged into Al Baraka Bank (Pakistan)
Limited[3])
 Meezan Bank Limited-Premier Islamic Bank In Pakistan

2. COMPANY PROFILE:
2.1 ASKARI BANK:
I chose banking industry for my internship. The bank that I selected was Askari Bank Limited.
Askari Bank works as a Unit of Army Welfare Trust was established for the Welfare of Army
Officials. The office of Army Welfare Trust is situated at AWT Plaza, Rawalpindi. AWT offers
the “AWT Saving Scheme” to the army officials only. AWT has its units as under:
1. Askari Associates.
2. Askari Leasing.
3. Askari General.
4. Private Business.
5. Textile Mills.
6. Cement Industry.
7. Askari Commercial Bank.
2.2 INTRODUCTION:
HISTORY:
Askari Bank was incorporated in Pakistan on October 9, 1991, as a public limited company. It
commenced operation on April 1, 1992, and has since expanded into a nation-wide presence of
more than 50 branches, handled by the human capital of more than 1600 employees and has
lowest turnover in Pakistani Banking Sector. Askari Bank is principally engaged in the business
of banking, as defined in the Banking Companies Ordinance, 1962.
The Bank is listed on the Karachi, Lahore & Islamabad stock exchanges and the initial
Public offering was oversubscribed by 16 times.

Since inception, the bank has concentrated on growth through improving service quality,
investment in technology and people, utilizing its extensive branch network which includes
Islamic and Agricultural banking. As at December 31, 2002, the Bank had total assets of
PKR70.313 billion, with over 250,000 banking customers.
ABL has a Correspondent Bank Network in more than 95 countries with about 167
Banks. ABL is the only bank with its operational Head Office in the twin cities of
Rawalpindi-Islamabad, which have relatively limited opportunities as compared to
Karachi and Lahore; this created its own challenges and opportunities, and forced us to evolve
and outward-looking strategy in terms of our market emphasis. As a result, ABL 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.
PRESIDENT’S MESSAGE:
“I take this opportunity to welcome all our stakeholders to our new user friendly website. This
website has been designed keeping in view and recognizing your valuable feed back. Its prime
purpose is to provide all our stakeholders with easy and comfortable access.
We have reinforced our products with new deposit schemes bearing competitive rates of return
and packed with excellent service of first choice. Our modern electronic banking services have
been developed with hard work, feedback from stakeholders and research providing better
banking solutions. Askari bank continuous growth over the years is based on service to
communities and customers by friendly, professional and experienced bankers trained to
deliver exceptional banking services.
Askari bank has successfully managed to amalgamate state of the art IT infrastructure with
our banking products and services making us and reinforcing us as leaders in IT innovation.
We are committed to transforming our ideas and new technologies into our banking in times
to come.

I express my gratitude to all our stakeholders and further appreciate their continuous trust
and support to us.”
VISION:
“To be the bank of first choice in the region”
MISSION STATEMENT:
“To be the leading private sector bank in Pakistan with an international presence, delivering
quality service through innovative technology and effective human resource management in a
modern and progressive organizational culture of meritocracy, maintaining high ethical and
professional standards, while providing enhanced value to all our stake-holders, and
contributing to society.”
2.3 SERVICES PROVIDED BY ASKARI BANK:

 Askari mortgage finance
 Askari Business Finance
 Askari Personal Finance
 Askari traveler’s cheques
 Askari Master card
 Askari Bank’s cash Management service
 Askari Car leasing
 Touch n Pay utility bills payment
2.4 PRODUCTS OF ASKARI BANK:
Every bank has some special products which can be called as the bank’s core competency.
Askari bank has
 Askari Special Deposit Account (ASDA):

ASDA is a special product of Askari Bank in which customers are provided the profit
every month.
 Roshan Mustaqbil Deposit:
Up to 5years customers have to pay but not less than 5,000 and not greater than 50,000
and after 5 years bank will pay the profit.
2.5 DIFFERENT TYPES OF BANKING AT ASKARI BANK:
1. 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 agricultural growth and
development. Askari Bank’s Agriculture and Rural Business Division (ARBD) has gained
further strength with improved and efficient delivery and control mechanism for meeting
increased demand for credit by the farmers in easy, accessible and affordable manner. With an
innovative product range, being best rated in the market, the Bank continues to surpass its
allocated targets for agriculture financing.
While focusing on business development, this unit also achieved further refinement in back
office processing including credit initiation, operations, risk management, in line with the
business dynamics and regulatory framework. ARBD has extended to 89 branches across the
country and remains proactively engaged with its stakeholders for aggregation of services and
improving life standard of farmers through its distribution network.
PRODUCTS OF AGRICULTURE BANKING:
 Kissan Evergreen finance

 Kissan Tractor Finance
 Kissan Livestock Development Finance
 Kissan Farm Mechanization Finance
 Kissan Aabpashi Finance
2. BRANCH BANKING:

Askari Bank has a widespread presence across Pakistan catering to the needs of customers from
all walks of life. Askari Bank has branches in all major cities, cantonments and smaller cities, an
extensive network made up of Conventional, Islamic as well as Agricultural Branches. Askari
Bank aims to provide its customers with a wide array of products and services catering to all
their banking needs in the form of Commercial, Consumer, Agricultural, Islamic and Corporate
Banking.
It provides comprehensive product menu range of innovative saving schemes in the form of
Term Deposits and Saving accounts with competitive profit rates and financing options that
provide convenient and flexible banking solutions to its valued customers, coupled with superior
services by our friendly staff in order to give them an excellent banking experience.
Staff at Askari Bank welcomes customers to “Ask Us” for all their financial needs with a
promise to deliver.
PRODUCTS OF BRANCH BANKING:
 Deposit Multiplier Account

 Mahana Bachat Account
 Paishgi Mahana Account
 Value plus Deposits
 Investment Certificates
 Rupee Traveler Cheques
 Roshan Mustaqbil Deposit
3. CONSUMER BANKING:
Consumer Banking Services Division’s products and services mainly comprise auto finance,
personal finance, mortgage finance, smart cash, Askari Credit Cards (Master Card), Corporate
Credit Cards, Zarai Credit Cards and i-Net Banking (Internet Banking Service).
It consumer finance is focused on expanding target market and enhancing our portfolio through
new and improved initiatives and products. Special attention is being given to business
opportunities involving strategic alliances to earn sustainable returns, with greater emphasis on
secured form of consumer lending and an aim to increase product offerings while improving and

maintaining a quality of its risk asset portfolio.
In view of the recent phenomena of inflation and changes in interest rates, Askari’s Consumer
Banking has adopted a selective approach for fresh lending and is focused on containing the
growth of problem loans and improving recovery efforts and internal controls.
PRODUCTS OF CONSUMER BANKING:
 Ask 4 car
 Personal Finance
 Mortgage Finance
 ASKCARD (Askari Debit Card)
 Master Card
SERVICES OF CONSUMER BANKING:
 Electronic Bill Payment Services

 Cash Management Services
 Internet Banking Service
 Call center
 ATM
4. CORPORATE BANKING:
At Askari Bank, staff understands the unique business requirements of its corporate and
institutional clients, and accordingly the Corporate and Investment Banking Group (CIBG)
strives to meet their expectations through provision of customized and relationship based
banking approach. CIBG approach to provision of Askari Bank’s comprehensive and
integrated, multi-product services is based upon a client-centric and distribution-focused
business model, supported by a culture that prioritizes client relationships and economic
returns.
CIBG is specifically structured to provide dedicated banking services and products to its

corporate customers through two key divisions.
5. ISLAMIC BANKING:
Askari Bank Limited - 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.
The Bank has expanded its Islamic Banking network to 29 branches and 02 sub-branches in the
major cities of Pakistan, covering the Capital and the four provinces. Further expansion is
planned with improved capabilities for offering products conforming to Shariah principles.
All Islamic Banking Products are approved by the Shariah Advisor of the Bank. 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 the supervision of Shariah Advisor.
Shariah Advisor:
An eminent scholar and recipient of the President’s Medal for Pride of performance, Prof. Dr.
Mohammad Tahir Mansoori, has been appointed as the Shariah Advisor of the Bank. Dr.
Mansoori holds a PhD in Islamic Studies. He is the author of numerous publications which
include “Madkhal-al-Masrafi” an introduction on Islamic Banking in Arabic, and “Islamic Law
of Contracts and Business Transactions”, is published in English.
Askari Islamic Deposit Products:

Askari Islamic Banking constantly and consistently strives to develop new Islamic Banking
Deposit Products to cater to ever growing needs of its customers. Its Deposit Products menu card
includes the following:

 AHSAN: ‘Askari Halal Saving and Notice Account’, monthly profit payment.
 AHSAN Munafa: Monthly profit payment on daily product basis
 AHIA: ‘Askari Halal Investment Accounts’- certificates of investment with monthly,
quarterly, six monthly and at maturity profit payment options. Customers may opt to
invest funds in AKIDA, AITQAD and AHCAMM.
Askari Islamic Consumer Products:
 Askari Ijarah Bis Sayarah for new / used car financing &

 Askari Home Musharakah to buy, build and renovate home.
Islamic Corporate & Structured Finance:
Askari Bank is also offering tailor made Islamic Corporate & Structured Finance solutions to its
corporate clients to meet their financial needs. Its products are very competitive, professionally
serviced and in accordance with principles of Shariah.
PRODUCTS OF ISLAMIC BANKING:
 Ijarah Bi Sayyarah
 Home Musharakah
 Deposit Schemes
 Declared Weight Ages
2.6 AWARDS AND ACHIEVEMENTS:

“Best Retail Bank in Pakistan” by The Asian Banker.

"1st Consumer Choice Award" by the Consumer Association of Pakistan. 2004

"Corporate Excellence Award" by the Management Association of Pakistan (MAP). 2002,
2003 & 2004.

“The Best Bank in Pakistan” by Global Finance magazine. 2001 and 2002.

“Best Consumer Internet Bank” Global Finance magazine. 2002 and 2003.

"Euromoney and Asiamoney Awards" 1994, 1996 and 1997.

“Best Presented Annual Accounts” by (ICAP) and (ICAMP). 2000, 2001and 2002.

“The Best Presented Annual Accounts” by South Asian Federation of Accountants (SAFA),
in the SAARC region.

“The Best Consumer Banking Award 2006” by the Consumer Association of Pakistan. 2007

“The Best Retail Banking Award 2008” by Pakistan Guarantee Export Corporation Ltd. 2008

"Best Corporate Report Award for the year 2008" by ICAP & ICMAP. 2008
2.7 CORE VALUES:
The intrinsic values, which are corner stones of Askari Bank corporate behavior, are:
 Commitment
 Integrity
 Fairness
 Team-work and
 Service

2.8 PROFIT / MARKUP RATES:
Rates of Profit Paid To Value Plus A/C Holders & On ABIC
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%
Exhibit 2.1
Lending Product Rates
Particulars Markup Rates

Personal Finance
Upto 3 Years 18%
Upto 5 Years 22%
Smart Cash
1 Year (Renewable) 22%
Business Finance
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%
Exhibit 2.2
2.9 BRANCHES OF ASKARI BANK IN LAHORE:

Sr. Location City Placement
1 LAHORE MAIN BRANCH LAHORE BRANCH
LAHORE CANTT
2 LAHORE BRANCH
BRANCH

CIRCULAR RAD BRANCH
3 LAHORE BRANCH
LAHORE
4 PHOOL NAGAR LAHORE BRANCH
5 GULBERG BRANCH LAHORE BRANCH
6 LCCHS BRANCH LAHORE BRANCH
BANK SQUARE BRANCH
7 LAHORE BRANCH
LAHORE
8 TOWNSHIP BRANCH LAHORE BRANCH
9 DHA PHASE-II, LAHORE LAHORE BRANCH
10 SHAHDARA LAHORE LAHORE BRANCH
11 SHAH ALAM LHR LAHORE BRANCH
12 SHAD BAGH LAHORE LAHORE BRANCH
13 RAVI ROAD LAHORE BRANCH
14 ALLAMA IQBA TOWN LAHORE BRANCH
15 M.A JOHAR TOWN LAHORE BRANCH
16 OKARA CANTT LAHORE BRANCH
17 MODEL TOWN LAHORE BRANCH
CAVALARY GROUND
18 LAHORE BRANCH
LAHORE
PARK LANE TOWER LHR
19 LAHORE BRANCH
CANTT
20 GULBERG II LAHORE BRANCH
21 URDU BAZAR LAHORE BRANCH
22 ZARRAR SHAHEED LAHORE BRANCH
23 DHA PHASE V LAHORE BRANCH
24 IBB JOHAR TOWN LAHORE BRANCH
25 MOBILE ATM CANTT LAHORE MOBILE ATM
26 DHA 1 LAHORE BRANCH
27 TUFAIL ROAD, LAHORE LAHORE BRANCH
GULBERG BRANCH ATM-
28 LAHORE BRANCH
2
OFFSITE / THIRD
29 GULBERG LAHORE
PARTY
OFFSITE / THIRD
30 PACE GULBERG LAHORE
PARTY
OFFSITE / THIRD
31 ITTEFAQ HOSPITAL LAHORE
PARTY
OFFSITE / THIRD
32 FATIMA MEMORIAL LAHORE
PARTY

OFFSITE / THIRD
33 SIDIQUE TRADE CENTER LAHORE
PARTY
OFFSITE / THIRD
34 HKB DEFENCE LAHORE
PARTY
OFFSITE / THIRD
35 PACE LINK ROAD LAHORE
PARTY
OFFSITE / THIRD
36 SHALIMAR HOSPITAL LAHORE
PARTY
37 DHA II LAHORE
Exhibit 2.3
2.10 ZARRAR SHAHEED ROAD BRANCH:

I did my internship in Askari Bank’s Zarrar shaheed road branch. The code of this branch is 152.
It was a 6 week internship and it started on 1st of December and ended on 15th of January.
Mr.Abid Zafar was the branch manager and Mr. Imran Khan was the operations manager.I got a
chance of learning a lot of things from this internship and also gained banking experience.

3. COMPANY BUSINESS PROCESSES:
Following departments perform their functions at Askari Bank.
 Account opening department

 Cash department
 Cheque clearance and remittance department
 Credits department
 Accounts department
3.1 BUSINESS PROCESS OF ACCOUNT OPENING DEPARTMENT:

Account opening department is usually involved in the opening of different types of accounts
such as BBA (Basic Banking Account), CD (Current Deposit Account), PLS (Profit and Loss
Account), ASDA (Askari Special Deposit Account), VP (Value Plus Account). When a customer
wants to open an account, he/she is required to fill in the following forms
 SSC (Signature Specimen Card)

 A form

 KYC (Know Your Customer) form
 Vernacular form
 Dormant Account form
 Undertaking
Customers are required to fill in all the necessary information and CNIC is must for all types of
accounts. Other requirements vary from account to account. A form is required for first time
cheque book issuance. Vernacular form is needed for shaky, doubtful signatures and thumb
impressions. Dormant account form is provided if the account is not operated from 180 days to 6
months + inoperative after 1 year.
 Requirement for sole proprietor:
Sole proprietor is required to provide NTN (National Tax Number) and letter head along with
his CNIC.
 Requirement for S.E.O. opening company account:
If an S.E.O (self employed owner) wants to open company account then he needs to provide the
company stamp along with NTN and letter head. Call report (visit) is required for the self
employed/SEO individual account or for company account in order to make sure that the
customer exists. Banks stamps “next of kin” in S.E.O company account.
 Requirement for salaried persons:
Salaried persons are required to provide employer certificate/ last s/s and copy of appointment
letter.
 Requirement for student account:
Students need to provide a student card along with the fee slip and registration card. There is no
minimum balance requirement for students in any type of account.

 Requirement for House wife account:
They just need to fill in the undertaking form.
 Requirement for joint account:
Special instructions are needed to be filled in. Both persons must provide their CNIC. ATM card
are not issued in joint operation. Bank does not take “next of kin” in joint account.
 Requirement for Value Plus account:
Value plus account is usually used for loan disbursement and it carries no charges for cheque
book issuance or ATM issuance but on the first time and later on it will be charged.
 Requirement for Partnership Account:
For opening Partnership account, partnership deed is required which must be attested along with
letter head, company stamp and NTN. Special instructions are provided that account can be
operated either singly or jointly (both partners are required to give signatures for the operation of
account).
 Requirement for picture account:
In case of difference in signatures or for any other reason, customer gives his/her picture to open
account and in special instruction column “self withdrawal” will be written which must be signed
by the customer and the cheque book must be stamped with “sign in presence”. ATM card is also
not issued for this type of account.
 Requirement for inter-branch online transfer:
If cheque is of different branch then online form along with CNIC is required.
Askari bank does not charge for account closure and cheque book is destroyed by the bank.
Online cash deposit charges are Rs.320.

All the customers are required to provide the necessary documents according to the nature of
account as is explained above. Rent deed is required if any property is on rent and customer
shows it as a source of income.
STAMPS:
After the customers have filled in the forms stamping takes place by the bank. Signature
specimen card is stamped with the stamp of “sign admitted”. All other signatures are stamped
with the stamp of “signatures verified”. Verisys are stamped with bank’s stamp. Photocopies are
stamped with “attested” stamp and terms and conditions are stamped with “copy received”
stamp.
ACCOUNT OPENING CHARGES:
ACCOUNTS MINIMUM REQUIREMENT INITIAL DEPOSIT

BBA (Basic Banking No Rs. 1,000
Account)
CD (Current Deposit No Rs. 5,000
Account)
PLS (Profit + Loss Account) Rs. 5,000 Rs. 5,000
ASDA (Askari Special Rs. 50,000 Rs. 50,000
Deposit Account)
Exhibit 3.1
CHEQUE BOOK ISSUANCE PROCESS:
 A requisition form is provided to the customer and I signed by him/her and then
signatures are verified.
 This is entered in the register and cheque book number is taken.
 Number is matched from the cheque book and is written down on the requisite.
 Cheque book is stamped and leaves (cheques) are counted.
 Then entry in the system takes place and requisition slip is marked for the charges.
Third party is issued the cheque book through authority letter. If any customer requires multiple
cheque books then he/she is required to give the request in which he/she will mention the reason
for the requirement. All requisition slips are attached in the voucher and only last is kept in the
cheque book.
TYPES OF CHEQUE BOOKS:
There are four types of cheque books, containing 10 leaves, 25 leaves, 50 leaves and 100 leaves.
LOOSE CHEQUE:
A single leaf is not issued to the customer.
TYPES OF CHARGES:
If minimum balance is not maintained then 50 rupees are charged. In BBA account if debit/credit
transactions exceed more than 2 times then 50 rupees are charged. If form A is lost by the
customer then bank provides another A form without any charges. If customer loses the
requisition slip then bank issues another cheque book on form B (security stationery) and
customer is charged Rs.550. cheque book issued on form B is delivered to an account holder
only. If some cheques are lost then “stop payment” is required and its charges are Rs. 320
LETTER OF THANKS:
After the account has been opened Askari bank issues a letter of thanks (LOT) to the customer. If
the letter is returned undelivered then the account will be blocked and a note will be added on it
that LOT is undelivered.
3.2 BUSINESS PROCESS OF CASH DEPARTMENT:

At the cash counter customer either deposits cash or withdraw cash. Payment of bills, school,
college and university fees are also deposited at the cash counter. At Zarrar Shaheed Road
branch it is dealt by Mr. Tayyab, Mr. Nadeem and Mr. Khalid. We were not allowed to sit in the
cash department as it is the most sensitive department among all the departments. In cash
department different facilities are given to the customer such as receive cheques, receive cash,

pay cash, online transaction. Online service is provided by the bank to transfer money from one
account to another. In cash department when bank receive the cheques from the customer, it has
to verify the signatures of the issuer. The date of issue of cheque, signature and amounts are
checked. Cheque can be encashed after six months of its issue. If that period is over then the
cheque is returned unpaid. There is a limit, different officers verify up to different amounts. If
there is any problem in the signatures, then bank call the issuer on the phone to confirm whether
he draws the cheque or not. On the back of the cheque there should be the sign of the issuer. If
any other person presented the cheque then he has to give a photocopy of CNIC of issuer.
3.3 BUSINESS PROCESS OF CLEARANCE AND REMITTANCE

DEPARTMENT:
At Zarrar Shaheed road branch clearance and remittance department is dealt by Miss Sidra
Waseem. Clearance of cheques basically involves two types of clearing
 Inward clearing
 Outward clearing
She also deals with the issuance of ATM cards, demand drafts and pay orders.
(a) INWARD CLEARING:
Clearing is basically the transfer of funds through cheques. In inward clearing the bank is the
“paying bank” and we debit the customer’s account.
PROCESS:
 Zarrar Shaheed road branch’s cheques are received from other banks through NIFT.
 After the cheques have been received UV (ultraviolet) is done in order to cheque the
authenticity of cheques.
 In inward clearing special crossing of the sender bank is checked otherwise it is returned.
 Current date’s stamp is checked.

 If a debit note is received from the other bank then the posting is done in cheque pending
and after its realization transfer entry is made.
 Cheque pending is debited and suspense account is credited.
CHARGES:
If any check is returned due to any reason then the customer is charged Rs. 250 from his/her
account.
(b) OUTWARD CLEARING:
When other bank’s cheques are received they are lodged in clearing i.e. forwarded to other banks
for clearing.
PROCESS:
 When the cheques are received date, stamp and the amount of cheque is checked.
 Special crossing is done in order to own the cheque i.e. two parallel lines are drawn and
bank name is mentioned in between them. In General crossing just two parallel lines are
drawn.
 Posting of mentioned account is made in customer’s account but system doesn’t show the
amount in balance until the next day of receiving of scroll from that particular branch.
 Cheques are stamped with the next day’s date as the cheques will be presented to the
other bank the next day.
 The back of the cheque is stamped with “payee’s account credited” because Askari is
ensuring the other bank that it has credited the mentioned account.
 “Received payment” is used on the back of the cheque to make sure that Askari bank has
received the payment.
 Charges are credited and finally the document number is noted down.
CHARGES:
In outward clearing, Rs. 50 are credited as it is the bank’s commission.

OBC (OUTWARD BILLS/ CHEQUES) /IBC (INWARD BILLS/ CHEQUES)
COLLECTION:
(c) OUTWARD BILLS FOR COLLECTION:
Receiving any cheque from outstation by NIFT is called “intercity inward clearing”.
PROCESS:
 Outstation cheques are received and entered in the system. Account is debited.
 IBCA of intercity is made and posting takes place.
 Document number is noted in the last.
 The respective cheques are attached with the schedule.
 The office copy is filled and original schedule is mailed.
 On clearing, the respective banks send back the OBCs along with the IBCA (Inter
Branch Credit Advice).
 The OBC numbers are checked from the OBC register, after that entries are made.
 Commission charges are deducted from the account.
CHARGES:
Rs. 200 are deducted as charges for OBC.
(d) INWARD BILLS FOR COLLECTION:
The bills, which are received by the bank from other branches out of the city for local clearing
are called Inward Bills for Collection.
PROCESS:
 The OBC of other branches will be the IBC of this branch. So an OBC forwarding
schedule is received by mail.

 The cheques are entered in the IBC register. The IBC numbers are allotted to them.
 The cheques are lodged for clearing.
 After realization, an IBCA is prepared and mailed to the branch from where the cheque
was received.
 At the end of the day, two vouchers are prepared and posted.
(e) ON LINE TRANSACTION:
Askari Bank has provided the facility of on line transaction. In this case the accounts and their
details in the other branches of ABL can be displayed on computer which is connected through
server to the computer at the other end. Commission is charged on providing this service this is
beneficial as it takes very little time in the transference of funds. This facility is available all the
branches of Askari Bank except Bhai Pheru Branch. Following charges are deducted in online
transaction:
AMOUNT CHARGES
Up to - Rs. 25000/- Rs. 50/-
Rs. 25001 - Rs. 200000/- Rs.100/-
Rs. 200001 - Rs. 500000/- Rs. 250/-
Rs. 500001 - Rs. 2000000/- Rs. 500/-
Rs. 2000001 Above Rs.750/-
(Charges of online transactions)
Exhibit 3.2
(f) (PO) PAYORDER/ (DD) DEMAND DRAFT ISSUANCE:
PROCESS:
 Pay order/ demand draft form is filled in. If the customer is bank’s account holder then
bank can either give a direct debit facility to customer or use the cheque of same account.

 Pay order or demand draft can also be made by receiving cash.
 In case of demand draft the city and branch name of Askari bank is entered.
 When PO/DD system is used and details are entered, system gives the specific/unique
number for PO/DD which is then mentioned on the form.
 If a PO/DD is issued through a direct debit facility then the credit vouchers are attached
with the form and the form is considered as debit voucher and full amount is credited in
credit vouchers.
 If PO/DD is issued through cheque then bank considers the cheque as debit voucher and
the form as credit voucher. Separate voucher for PO charges is made.
 If PO/DD is issued on cash then direct entry is made and there is no need of debit or
credit voucher.
 At the day end all the reports of PO/DD are generated and the PO general ledger is
debited bills payable are credited, but the amount credited will be exclusive of PO/DD
charges.
CHARGES:
When PO/DD is made by receiving cash Rs. 300 is charged for cash. PO is charged Rs. 65 up to
10, 00,000 for cheque and direct debit but in case of students’ fee only Rs. 25 is charged (only if
PO.DD is in favor of university/college).
REMITTANCE:
The need of remittance is commonly felt is commercial life particularly and in everyday life
generally. The main function of the remittance department is to transmit money from one place
to another. By providing this service to the customer, bank earns a lot of income. Also customer
is able to meet its day to day financial requirements.
CHARGES:

In case of pay order or demand draft on cash bank charges Rs. 300 of cash handling . Rs. 65
besides Rs. 300 is also charged if the transaction is up to 1 million. In case of direct debit bank
only deducts Rs. 65 for pay order.
ATM:
At Zarrar Shaheed road branch issuance of ATM (automated teller machine) / visa debt cards is
also handled by Miss Sidra Waseem. There are three types of ATM cards available, Gold,
Classic and Platinum.
3.4 BUSINESS PROCESS OF CREDITS DEPARTMENT:
To give credit is to finance directly or indirectly the expenditure of others against future
payment.
Lending or financing is one of the basic functions of banks of all categories, through which they
gain major part of their profits. A bank accepts deposits of money and repays cash to its
depositors on demand. But this is not to say that; bank gives this service for nothing. Bank
borrows money at a lesser rate of interest and lends to the borrower at higher rate of interest. And
the difference between these two is the profit of the bank.
Credit department deals with all the activities related to giving credit to customers.
CREDIT MANAGEMENT CYCLE:
Credit Management is composed of six steps:
1. Proposal
2. Processing
3. Decision
4. Documentation
5. Disbursement

6. Review　
1. PROPOSAL:
The first step in the Credit Management is receiving a credit request, which is a lending proposal
for the bank each borrower has a purpose for borrowing. Some borrow to fulfill their working
capital needs, others wants to finance any project. The customer presents his idea to the banker
and wants the information on bank’s facilities. Then after collecting information if the customer
deems it beneficial he makes a loan request.　　
2. PROCESSING OF LOAN PROPOSAL:
Managing a safe, healthy and profitable credit portfolio depends on the quality of judgment
exercised by the officer and the depth of their risk associated with the nature of the borrowers
business. The banker is supposed to make a judicious judgment, which should be based on a
critical study of advance proposals. It is very much necessary that the banker should have a
complete confidence in the integrity and ability of the customer to use the money to his
advantage and repay it within a reasonable period. Information must be collected and confirmed
by investigation and negotiation during processing of the proposal.
In respect of fresh (ending proposal, the CLP is the end result of a series of internal and external
investigation exercises following the identification of a potential customer, beginning with the
first call on the customer.
EVALUATION:
To assess the risk and estimate the potential of a particular business, a series of investigative
exercise is undertaken. This evaluation stage include knowing the purpose of borrowing,
knowing business prospects of a customer, visiting the business place, analysis of financial
statement, visiting the collateral securities etc.
3. MAKING A LENDING DECISION:

Bank credit decision for any proposal has to be very rational one, because there are many
restrictions on monetary and credit expansion by the State Bank of Pakistan and it is no longer
within the power of banks to distribute it freely. Credit office must learn to make the best use of
the bank’s available deposits by deploying them in the most productive advances. To make a
prudent decision it is required that decision should be made only after comparing the benefits
available from several competing proposals and agree to finance the proposal which offers a risk-
reward combination closest to the standard set out in the Bank’s Credit Policy. Before
recommending facilities for any customer, banker must ask himself the question “Why should
we lend to this customer in particular? Why not the next one?”
Consideration for Lending Decision:
Usually, the two major considerations for recommending fresh credit facilities are the business
anticipated from the borrower in relation to the funded facilities and projected earnings from
facility utilization by the borrower. In case of renewal of existing facilities the consideration is
the business received in the past and earnings and that promised by the borrower for the
following year.
Besides these, there could be other supplementary considerations such as deposits of the
borrower, including title, amount, period and profit / interest rate being paid on such deposits is
important in order to ascertain the profitability of the overall relationship.
The entire information will help the decision maker in reaching a conclusion about the relative
importance of the customer for the bank. But for making a profitable and safe decision, the
information on which the decision is based should be gathered carefully and checked that the
figures are correct.
After receiving the proposal and processing it by analyzing it’s all risk-return characteristics, the
credit officer prepares CLP. CLP is the input of the decision stage, which is used for approval of
the proposal. Once the CLP is prepared, first Branch Credit Committee approves it and then it is
forwarded to Head Office, from where the final decision is made. The Credit Officer first uses
his judgment and recommends potential proposals. Then Branch Credit Committee further
screens out risky proposal. In this way a profitable portfolio is maintained.　
4. DOCUMENTATION:
Document shall include any matter written, expressed or described upon any substance by means
of letters, figures or marks or by more than one of those means which is intended to be used for
the purpose of recording that matter.
Obtaining the proper documents, legally valid and enforceable, is a prerequisite for the
disbursement of an advance by bank. The type of document to be obtained mainly depends on
the following aspects:
 Type of Borrower.
 Nature of Facility.
 Kind of Security.
 Mode of Charge.
Rights and liabilities of the parties involved in the credit transaction are mainly established from
the contents of the documents executed by the parties. The banks resorting to the court of law
would only be benefited if the documents are properly executed and they are valid and
enforceable at law. If there is any defect in execution of the documents, the bank may lose its
claim. So, it is very essential to have proper documentation before the loan is disbursed to the
borrower.
Nothing is better proof than the documents themselves for the banker in pleading for his claim.
Therefore, utmost care should be taken in execution of the documents.
The banker must take care of the following:
1. The documents must be properly stamped with full value.
2. The parties should sign according to their usual specimen signatures; initials of the parties
are not enough.

3. Each page of the document is required to be signed by the executing person.
4. There should be no cutting, alteration, overwriting or erosion in the documents. The

executing person under his full signature if any, must authenticate the cuttings.
5. Documents must be completed in all respects. Blank and undated documents sometimes
pose serious problems for the bank.
6. Documents when executed should be:
a. Properly diaries.
b. Placed in Safe.
7. Documents should not be punched or torn out.
8. Documents where required must be duly registered.
Maintaining and Balancing the Documents:
Among other activities, maintaining and balancing the documents is also an important activity of
the Credit Department. These documents carry a substantial value and create a great problem if
any dislocation occurs. Different documents are of different values. These documents are
counted, stamped and properly placed in the strong room of the branch. A separate ledger is
maintained for these blank documents for accounting purpose. After a short time period, the total
value of actual documents is matched with the balance in the ledger.
5. DISBURSEMENT:
Procedure of Loan Disbursement:
1. Proper documents, which are legally valid and enforceable at law, are obtained.
2. The concerned Credit Officer in the branches prepares proposal (CLP), it is also known as
Credit Sanction Advice (CSA). The purpose of making CLP is to record the required information
on it and having approval of the Branch Credit Committee and Head Office on it.
3. Credit line proposal include the following information:
 Date of opening.
 Date of maturity.
 Nature of the business.
 Type of facility.
 Purpose of facility.
 Securities.
 Source of repayment.
4. There is a Branch Credit Committee in each Branch. Committee holds a meeting and takes
decision whether to give loan or not. This decision is taken by keeping in view all the risks
associated with that borrower.
5. New account with a new account number is opened. These account numbers are previously
fed into the computer if the system is online.
6. The Drawing Power (DP) is issued to each borrower. Drawing Power depends on the amount
of loan and the period of financing.
7. There are two accounts maintained for each borrower, Credit Account and the borrowers
account. In the start, the credit account has a credit balance equal to the amount of loan.
8. After all other requirements are fulfilled; the loan is actually transferred to the borrower by
debiting the credit account and crediting the customer account.

9. Now the borrower can draw the amount from his account according to his allotted Drawing
Power (DP).
10. After a fix time period, on each installment date, borrower has to repay the principal and
mark-up. Loan repayment installments are deducted by debiting the customer account and
crediting the credit account.
6. ACCOUNT MONITORING LOAN STATUS REVIEW:
Account monitoring system is an evaluation technique intended to provable a basis for reviewing
over all condition of an existing borrower. It will help in identifying symptoms of possible
problems in the areas of financial or business management and indicate the need for corrective
action to prevent the account from becoming slow moving or eventually delinquent. This
exercise of monitoring alerts the amulets or account manager to the need for appropriate
corrective action starting with a detailed discussion with the borrower to understand the
borrower’s point of view on the areas highlighted by the analysis of the account.
Account Status Review:
In this section, different things about the current status of the account are checked. For instance,
what is limit of the account? What drawing power was allotted to the borrower? What is the
outstanding balance? Since when the account is inactive? What is the Net Asset Value?
Account Conduct Review:
This section includes monitoring the account conduct. These questions are answered for this
purpose. The borrower draws cheques of what maximum value? Is post dated cheques drawn by
the borrower frequently or not? Is there a default on interest or mark-up payment?
3.5 BUSINESS PROCESS OF ACCOUNTS DEPARTMENT:

At Zarrar Shaheed road branch, accounts department is handled by Miss Maliha Arooj and Mr.
Faizan. Mr. Faizan Fareed is the incharge of the accounts department.
Accounts department handles the following functions

a) Activity
b) Managing branch expenses
c) Book/record keeping
d) Deduction of taxes
(a) PROCESS OF PERFORMING ACTIVITY:
Vouchers including cheques, deposit slips, fees, online forms, bills etc of the previous day are
collected and separated according to different accounts such as ASDA, BBA, CD, PLS etc. After
separation of vouchers sorting takes place i.e. vouchers are arranged in sequence. Activity is then
performed which includes tallying and attaching the vouchers on sheets. After activity the sheets
are counter checked and entries are made in the voucher register. They are properly sealed and
the record is maintained for years. So in this case if any problem arises then customer is shown
the record.
At Askari bank, weekly, monthly, quarterly, half-yearly and yearly these reports are sent to the
regional offices. Reporting is done from bottom to top in the hierarchy.
Head office
AWT Plaza
Rawalpindi
Regional office Regional office Regional office
(South) (Central) (North)

Different area Different area Different area
Offices Offices Offices
Different Different Different

Branches Branches Branches
(Division of Askari Bank)
Exhibit 3.3
(b) PROCESS OF MANAGING BRANCH EXPENSES:
Accounts department is also responsible for maintaining the branch expenses which includes
telephone bills, electricity bills, water, and diesel for generator, maintenance of machinery
equipment and branch maintenance.
(c) PROCESS OF BOOK/RECORD KEEPING:
Accounts department is also responsible for maintaining the book or records. 8 types of reports
are managed on daily basis.
(d) PROCESS OF TAX DEDUCTION:

Tax is deducted on products and services. 3.5% tax is deducted on product such as stationery. 6&
tax is deducted on services of bills, Askari guards etc. Customers who are being provided with
the profit, 10% tax is also deducted on it. Al those transactions that exceed Rs. 25,000 0.3% tax
is deducted on them. Tax is also deducted if the any staff member’s annual salary + bonuses+
incentives exceed the amount of Rs. 3, 00,000. Deduction of taxes is submitted to State Bank
within 7 days.
LOCKERS:
At Zarrar Shaheed road branch lockers are also operated by Miss Maliha Arooj. Lockers are
available in three different sizes i.e. small , medium and large. Charges differ accordingly and
are paid annually. Customers can also buy the lockers. In this case they don’t have to pay the rent
annually. The facility of lockers is only given to the account holders.
CHARGES SMALL MEDIUM LARGE

Key deposit Rs. 2,000 Rs. 2,000 Rs. 2,000
Rent Rs. 1,500 Rs. 2,000 Rs. 3,500
Buy Rs. 25,000 Rs. 30,000 Rs. 45,000
Exhibit 3.4
PROCESS:
 Customer is required to fill in the locker issuance form that is provided by the bank to the
customer.
 An account is always opened first and the bank prefers to open either CD (Current
Deposit) or PLS (Profit and Loss) account.
 Deposit is required as according to the key deposit + locker rent charges. Charges are
shown in the exhibit. E.g. if the customer is having medium locker and having CD
account, the amount in CD account should be
5,000 + 2,000 (rent) + 2,000 (key deposit)

 After receiving the deposit, customer’s account is debited and locker’s account is credited
in which the key deposit (2,000) is added. As the key deposit is refundable at the time of
locker surrender.
 In case of joint operations bank opens the locker account with joint name. if the account
holder is having different signatures from his/her CNIC then bank gives the customer
form of difference in signatures.
4. COMPANY DEPARTMENTAL FUNCTIONS:

4.1 ACCOUNT OPENING DEPARTMENT:
Account opening department is the main department as it involves opening of different types of
accounts. At Zarrar Shaheed road branch this department is dealt by Mrs. Shahida Sarfaraz.
Different types of accounts are opened according to the requirements of customers
FUNCTIONS:
 Opening of Askari Special Deposit Account (ASDA)

 Opening of Basic Banking Account (BBA)
 Opening of Current Deposit Account (CD)

 Opening of Profit and Loss Account (PLS)
 Opening of Agricultural Account
 Opening of Mortgage Account.
4.2 CASH DEPARTMENT:

This department is the most sensitive department among all the other departments because cash
dealing takes place at this department.
FUNCTIONS:
 Receiving of cash
 Payment of cash to the customers.
 Payment of bills
 Submission of school, college fees also take place at the counter i.e. at the cash
department.
4.3 CHEQUE CLEARANCE AND REMITTANCE DEPARTMENT:

Cheque clearance and remittance department is also an important department.
FUNCTIONS:
 Inward clearing
 Outward clearing
 Inter-branch online transfers
 Making of pay orders and demand drafts (DDs).
 Issuance of ATM cards and credit cards.
4.4 CREDITS DEPARTMENT:

Credits department is responsible for performing the following functions.
FUNCTIONS:

 Proposal
 Processing
 Decision
 Documentation
 Disbursement
 Review
4.5 ACCOUNTS DEPARTMENT:

Accounts department performs the functions of recording all the transactions that take place in
the bank on daily basis along with other functions. At Zarrar Shaheed road branch this
department is headed by Mr. Faizan Fareed and Miss. Sidra Arooj.
FUNCTIONS:
 Voucher separation, sorting and the performance of the activity.

 Managing branch expenses
 Book/record keeping
 Deduction of taxes
5. SWOT ANALYSIS OF THE COMPANY:
5.1 STRENGTHS:
(a) Network:

Network is a major strength ABL has. ABL is a Pakistani Bank with the most extensive and
comprehensive global network that open up new opportunities in near future. Their up graded
technological infrastructure is also important which provides uniform service system across the
Bank’s network that will allow much higher levels of efficiency and customer service.
(b) Customer Relationship:

The Bank has a distinctive client focus with a view of attaining greater customer satisfaction.
Continual efforts are made by the Bank to revisit customer needs and for improving customer
services. Management continues to further rationalize Bank’s network with a view of improving
efficiency. The trust associated with AC\BL is also its strength to stand out. The bank continues
to re-engineer processes and centralize functions to make ABL services more cost efficient to
improve customer response. ABL commitment to provide customers with banking facilities of an
international standard and its policies towards modernization helps them gain more strength.
The survival of a service organization like ABL is dependent on superior customer service and
products. ABL strong culture of customer service and satisfaction reflects ABL distinctive
competence. They value their customer’s business and want to seek satisfaction. That’s why a
very strong population of 1.5 million users supports them. Query and complaint forms are also
available on their site for the customers.
(c) International Operations:

The international operations of ABL allow it to get benefit from synergies of countries within
specific geographical areas. International operations are segmented into regional businesses by
formation of six major regional centers viz UK, continental Europe, Africa, Middle East, Asia
Pacific and USA.
(d) ATM facility:

The bank has also started ATM facility in most of its branches. 24-hour banking is new trend in
Pakistan and ABL has also taken apart in this trend.
(e) Army welfare Trust:

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.
5.2 WEAKNESSES:
(a) Less number of branches:

ABL has lesser number of branches as compared to many other branches. Due to this problem,
army officers can not avail the benefits of their own bank.
(b) Promotion:
ABL is not promoting its ATM services which are a major weakness. They can change their
target market or at new target markets through promotion for example they can promote the uses
of ATM such as its use at vacations.
(c) Cash Withdrawal Limit:

One of the weaknesses of ABL ATM is that they have prescribed cash withdrawal limit for all
kinds of customers.
(d) Payment of Utility Bills:

There is no facility offered by ABL ATM for payment of utility bills.
(e) Credit management:

Bank is weak in its credit management. Bank should lend to very sound parties and increase its
payment rate.
(f) Transfer of Funds:
No facility on behalf of ABL ATM is offered regarding transfer of funds between
PLS savings account and current account of same customer through same ATM card.
(g) Lack of new products:

Bank is not introducing new products and new saving schemes. Bank should boost the product
development and increase the range of facilities offered for customers.

5.3 OPPORTUNITIES:
(a)Use of ATM as a Credit Card:

It can be an opportunity for ABL to introduce ATM also as a credit card which will invite a
different segment and which will improve profitability. They can also cut costs in this way.
(b) Technological Improvements:

Various technological improvements may lead to success for ABL. If ABL opens up its deposit
box facility for customers it can heavily increase its Profitability. If implemented this opportunity
can be a competitive advantage as well.
ABL can also implement the conversion facility for example if the ATM receives the request for
payment of amount in dollars then it should pay the customer in Dollars.
They can make ATM more attractive and enjoyable place to come rather than a bossy, bore
environment. To provide customers with an enjoyable event whenever they visit the ATM they
can change their machine styles, have variations in colors and add audio instructions following
the transactions.
As Internet and World Wide Web usage continues to increase ACBL should extend its
exploitation of this market by acquiring and merging with companies with specialized
technological expertise. Although this expansion is costly they should exploit this strategic niche
and take advantage of this opportunity in external environment.
In order to increase their market share ACBL should expand its ATM network. By opening ATM
sites where it can target new markets is essentially good for competition as well it is profitable.
They can look out for any sick units that are not as profitable as the ones intended to be opened.
(c) Improving customer focus:

ABL’s commitment to making substantial investment in technology (planned expenditure of
USD 20-25 million over next three years) to provide customers with banking facilities of an
international standard is an opportunity for making technological improvements in this business.
6. Illiterate People:

Illiterate people are also an opportunity for ABL in regarding this service. ABL can serve these
people by giving instructions in Audio and in Urdu. They can also have instructions written in
Urdu on card or even they can have a display in Urdu. They can increase their target market,
market share and profitability.
.
5.4 THREATS:
(a)Economic Environment:
Economic environment is a major threat to ATM’s success .For example in 2000when the
government embarked on an economic revival plan with a complete task of resource
mobilization, GDP growth and poverty alleviation in a different economic environment with
continued international sanctions. During the year domestic demand though improving still
remained weak and fiscal constraints did not allow the government to increase development
expenditure and boost demand.
(b) Political/Legal environment:

Law and order situation has a direct impact on how frequently or how many people use ATM.
Also legal obligations also hinder/pose threat to ATM availability. For example there is a rule
that he two ATMs should be at least 3 km away from each other. If there are strict regulations on
this policy then it is a threat to ATM availability.
(c) Expense Base:
The expense base will be a major threat to the ATM because it will impact the need to
spend in order to modernize ABL’s customer interface. Expenditure has to be incurred
on Branch rationalization and computerization. This expenditure is essential, given poor
infra structure at Branch level resulting from years of underinvestment. Because 90

million is sufficient money to invest to open an ATM there should be a strong expense
base to support the expansion of ATM.
(d) Competitors’ taskforce:
Some other banks have competent taskforce, which is also a threat for ACBL.Because human
resource is the most valuable resource.
(e) Services of International banks:
Services of International Banks is a threat. Punjab government is funding only national banks so
maintaining deposit is also a big issue which is now becoming mandatory for every employee to
contribute in it by getting new deposits.
6. IDENTIFICATION OF PLAUSIBLE PROBLEM(S):
 Askari Bank has limited the cash withdrawal limit using an ATM card for all types of
customers.

 Askari Bank ATM has not provided the facility of payment of bills.
 No facility on behalf of ABL ATM is offered regarding transfer of funds between PLS
savings account and current account of same customer through same ATM card.
 Bank is not offering new products. Askari is not paying much attention to its marketing
efforts.
 There are not proper training programs.
 At Zarrar Shaheed road branch, staff is short due to far distant area because of which
customers have to wait in long queues at cash counter and at other departments they have to
wait for their turn which frustrates them.
 Customer base is dependent on army officials only; civilians are neither strong nor attracted
by Askari’s products as so many charges are waived off for army people.
 Much work from different departments is given to the internees due to lack of staff members
at Zarrar Shaheed Road branch.
7. RECOMMENDATIONS FOR A SUITABLE COURSE OF

ACTION:
 The withdrawal amount using an ATM card should not be limited to a certain amount.
 Askari Bank should provide the facility of payment of bills through ATM cards.
 Askari Bank should pay much attention to the marketing efforts. Marketing plays an
important role in the success of any company.
 Proper training should be provided to all staff members. As trainees are also required to take
proper tests during and after the training so senior staff should not be trained with the new
staff as they are much more experienced than new staff members.
 At Zarrar Shaheed road branch they should increase the number of staff especially at cash
counter because just two employees cannot manage properly and if any of them is on leave
then it becomes almost impossible for the other one to deal with the customers. At least one
more person should be employed in accounts department. They should not depend upon the
internees all the time.
 Civilians should be attracted toward Askari Bank by offering them some reduction in
charges so that customer base is not limited to army officials only.
8. CONCLUSION:

I had a very good experience of doing internship at Askari Bank’s Zarrar Shaheed Road Branch.
I got a chance of learning many things in the departments where I spent my time. Staff is very
cooperative and provides an opportunity for the internees to learn as much as they can. Branch
manager and manager operations are very polite and kind. They know exactly how do deal with
a frustrated customer. A few times I myself saw the way they handled the customers who were
agitated. They do not at all lose temper rather deal with such types of customers in a cool and
calm manner. Askari Bank Limited is no doubt a very good bank and is providing valuable
services to its customers right from the day first. But there always is a room for improvement. It
has established a very good procedure of dealing with the customers’ complaints and queries but
Bank should also pay close attention to the customers’ complaints and queries and should satisfy
them in every possible manner.
9. BIBLIOGRAPHY:
WEB REFERENCES:
http://www.askaribank.com.pk
http://www.amcy5.com/Reports/internship/amcy25.htm
http://www.investopedia.com/features/industryhandbook/porter.asp
http://www.scribd.com/doc/5131283/banking-in-Pakistan
http://en.wikipedia.org/wiki/Bank

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DEDICATION

I would like to dedicate this project to my internship teacher, who

(University of Central Punjab, PCBA-PICS ) 1

(University of Central Punjab, PCBA-PICS ) 2

(University of Central Punjab, PCBA-PICS ) 3

(University of Central Punjab, PCBA-PICS ) 4

A bank is a financial intermediary that accepts deposits and channels those deposits into lending

1.2 HISTORY OF BANKING IN PAKISTAN:

(University of Central Punjab, PCBA-PICS ) 6

Specialized Banks Commercial Banks

Foreign Banks Domestic Banks

(Structure of Financial Sector in Pakistan)

(University of Central Punjab, PCBA-PICS ) 7

1. NATIONALIZED SCHEDULED BANKS:

 National Bank of Pakistan

 Industrial Development Bank

3. DEVELOPMENT FINANCIAL INSTITUTIONS:

 Pak China Investment Company Limited, Islamabad

(University of Central Punjab, PCBA-PICS ) 8

 Allied Bank Limited

 BMA Capital Management Limited

 First Credit & Discount Corp Limited

7. HOUSING FINANCE COMPANIES:

 Asian Housing Finance Limited

(University of Central Punjab, PCBA-PICS ) 9

 NRSP Micro Finance Bank Limited

 AlBaraka Islamic Bank (Merged into Al Baraka Bank (Pakistan) Limited[2])

(University of Central Punjab, PCBA-PICS ) 10

7. Askari Commercial Bank.

(University of Central Punjab, PCBA-PICS ) 11

(University of Central Punjab, PCBA-PICS ) 12

2.3 SERVICES PROVIDED BY ASKARI BANK:

2.4 PRODUCTS OF ASKARI BANK:

 Askari Special Deposit Account (ASDA):

2.5 DIFFERENT TYPES OF BANKING AT ASKARI BANK:

PRODUCTS OF AGRICULTURE BANKING:

 Kissan Evergreen finance

(University of Central Punjab, PCBA-PICS ) 14

PRODUCTS OF BRANCH BANKING:

 Deposit Multiplier Account

(University of Central Punjab, PCBA-PICS ) 15

PRODUCTS OF CONSUMER BANKING:

SERVICES OF CONSUMER BANKING:

 Electronic Bill Payment Services

(University of Central Punjab, PCBA-PICS ) 16

Askari Islamic Deposit Products:

(University of Central Punjab, PCBA-PICS ) 17

Askari Islamic Consumer Products:

 Askari Ijarah Bis Sayarah for new / used car financing &

Islamic Corporate & Structured Finance:

PRODUCTS OF ISLAMIC BANKING:

2.6 AWARDS AND ACHIEVEMENTS:

2.7 CORE VALUES:

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Rates of Profit Paid To Value Plus A/C Holders & On ABIC

Particulars Profit Rates

Lending Product Rates

Particulars Markup Rates

2.9 BRANCHES OF ASKARI BANK IN LAHORE: