Askari Bank

Askari Commercial Bank Ltd.
INTRODUCTION
Askari Bank is consistently focused on building long term shareholders value, as the primary objective. he strength of our brand name, supported by strategic e!pansion and the depth of our customer relationships, gives us a strong foundation on "hich to build and continue gro"ing in the times ahead. he key elements of our strategy have been to increase our market share, mobili#e our resources, develop retail, agriculture and $slamic banking, introduce fresh initiatives for corporate and investment banking, capitali#e on ne" business opportunities and implement various technology initiatives. %ur primary focus remains on improved risk management "hich "e consider to be one of the essentials for sustainable success in our business. Based on the risk management guidelines issued by the &tate Bank of 'akistan (&B'), a risk management strategy has been developed for assessing, and mitigating * controlling risks. he process involves detailed study of the e!isting risk revie" and risk management functions "ithin the Bank and is being jointly carried out "ith consultants to add market e!pertise to the in+house e!perience. he process is planned to be completed "ithin 1st ,uarter of -../ and "ill thereafter be implemented "ith re,uired changes in the e!isting risk management frame"ork, as and "here "arranted. An independent 0isk 1anagement 2ivision has already been established to oversee the "hole e!ercise and implement the recommendations. 1ean"hile, potential risks are already been monitored using the traditional methods. %ur Corporate and $nvestment Banking team has been strengthened and is no" "ell positioned to service large corporate and multinational companies through syndicated finance, advisory services, and discretionary investor relations, in addition to trading in debt and e,uity markets. he Corporate and $nvestment Banking 3roup successfully concluded the launch of Banks first Asset 1anagement Company 4 Askari $nvestment 1anagement Limited (A$1L), a "holly o"ned subsidiary of the Bank. After the initial set+up phase, A$1L is no" geared for
$nstitute of Business Administration
full scale operations and has already launched its first open+ended mutual fund 4 Askari $ncome 5und. %ur 0etail Banking 3roup gathered further momentum during -..6 and further increased its share in both business volumes and earnings of the Bank. he 3roup recogni#es innovation and service as the real differentiators in the retail banking business and has devised various products and services for its customer base. he 3roup "as also benefited by a dedicated advertising campaign launched during -..6. 7hile ne" products are being added, the distribution channels are also being increased and currently si! customer service centers operate in major cities to serve retail banking customers. 7e believe that Askari Bank is "ell poised to increase its share of the retail banking market "hich still offers opportunities for gro"th. Askaris credit card, using the 1asterCard brand, had sold more than -..,... cards by the end of -..6. his unit is run as a &trategic Business 8nit (&B8) head,uartered in 9arachi and is aided by si! card centers in major cities. &ince its launch, Askari 1asterCard has been a source of great convenience to our valued customers, and a substantial contributor to our profits. he Banks %ff+shore Banking 8nit (%B8) based in the 9ingdom of Bahrain, completed t"o years of operations and continued to make positive contributions to the Banks overall earnings. %ur %B8 provides a platform to benefit from the business opportunities available in the international market. Agriculture Credit 2ivision of the Bank, strategically head,uartered in Lahore, continued to serve its customer base through various branches located in the small to medium si#ed cities of 'unjab and a fe" in &indh. &ince its launch in -..:, the division has strengthened its operations and has devised various innovative agriculture credit products under the Askari 9issan Agri 5inance 'rogram, "hich gained ,uick market acceptance and penetration. After e!panding its reach to most of the agricultural areas of 'unjab, the 2ivision is poised to e!pand agriculture financing in the other provinces of the country. Continuing "ith our commitment to offer ne" and improved services to our customers, Askari Bank "ill soon be launching $slamic Banking products and services through dedicated $slamic Banking branches. 7e believe that $slamic
Banking "ill further e!pand our outreach and capabilities by offering products to suit the preference of some of our valued customers for &hariah based financial transactions. 7e continue to strive for the best in offering technology based solutions to our valued customers and maintaining sound control environment. he Askari Customer Care Center + a dedicated customer call center "hich became operational on an e!perimental basis during -..:, "as formally inaugurated in -..6. $t aims at providing one "indo" service to our valued customers in terms of their telephonic en,uiries and transactions. Askari Bank co+founded the A 1 s"itch, <%ne+Link, the first A 1 s"itch in 'akistan. his s"itch is no" also linked to 1+net, the second s"itch in the country. As a result, the Banks customers can no" access their accounts through more than 1,1.. online A 1s throughout 'akistan. 2uring the year, the Bank launched the first 1obile A 1s in the country. 8sing "ireless 3'0& technology, these <A 1s on "heels can be placed at strategic locations at peak times to serve the customer needs. he Banks <2ata 7arehouse has become operational and is being fine tuned for providing the management "ith accurate, up+to+date information enabling them to make timely and prudent decisions. %ur progress in the field of 0etail Banking "as also recogni#ed internationally as the Bank "on he Asian Banker a"ard for the =Best 0etail Bank in 'akistan= for -..:, after "ining the same a"ard for -..;. >our Bank is the first bank in 'akistan to have "on these a"ards. he Bank "on = he Best Corporate * $nstitutional $nternet Bank in 'akistan= and = he Best Consumer $nternet Bank in 'akistan= a"ards for -..:, from he 3lobal 5inance 4 an international maga#ine of high repute. he Bank has also "on the =Bank of 5irst Choice= a"ard for -..6 from the Consumer Association of 'akistan. Askari Bank recogni#es its employees as the prime asset and key contributors to the performance of the Bank and places great emphasis on the attraction, development, and motivation of its employees. %perational success re,uires matching of operational strategies "ith that of ,uality human resource. 0etention of high ,uality
human resource and maintaining ,uality recruitment are the fundamentals to good organi#ational gro"th. 2uring the year, the compensation package "as substantially improved in order to enhance employees motivation and loyalty. %ur human resource management objective remains to increase the contribution from the employees to the Banks value addition "hile maintaining high ethical and professional standards. 5or this purpose, various initiatives are being implemented, including improved training and career development, and stimulating employee initiative, innovation, commitment and "ork efficiency. 7e are also focusing on developing an organi#ation culture "hich "ill enhance employee synergies for achieving e!cellence in all "e do. %ur entrepreneurial culture, strong brand and highly motivated staff "ill ensure that "e continue to seek out ne" gro"th opportunities in pursuit of our stated objectives of adding to the stakeholders value, and contributing to the economy and the society in "hich "e operate.
BRIEF HISTORY
Askari Bank "as incorporated in 'akistan on %ctober ?, 1??1, as a public limited company. $t commenced operations on April 1, 1??-, and is principally engaged in the business of banking, as defined in the Banking Companies %rdinance, 1?/-. he Bank is listed on the 9arachi, Lahore and $slamabad &tock @!changes and currently its share is the highest ,uoted from among the ne" private sector banks in 'akistan. Askari Bank has e!panded into a nation+"ide presence of ?A branches, and an %ff+ &hore Banking 8nit in Bahrain. A shared net"ork of over 1,1.. online A 1s covering all major cities in 'akistan supports the delivery channels for customer service. As at 2ecember ;1, -..6, the Bank had e,uity of '90 A./ billion and total assets of '90 1:6.1 billion, "ith over /..,... banking customers, serviced by our -,B6: employees.
VISION
o be the Bank of 5irst Choice in the 0egion
MISSION
o be the leading private sector an! in 'akistan "ith an international presence, delivering "#alit$ service through innovative tec%nolog$ and effective %#&an reso#rce &anage&ent in a &odern and progressive organi'ational c#lt#re of &eritocrac$, maintaining %ig% et%ical and pro(essional standards, "hile providing en%anced val#e to all our stakeholders, and contri #ting to societ$.
COR)OR*TE INFORM*TION
Board o( Directors
Lt. 3en. 7aseem Ahmed Ashraf Chairman Lt. 3en. (0) Carrar A#im Chairman Executive Committee 1r. 9alim+ur+0ahman President & Chief Executive Brig. (0) 1uhammad &hira# Baig Brig. (0) 1uhammad Bashir Ba# Brig. (0) Asmat 8llah 9han Dia#i Brig. (0) &haukat 1ahmood Chaudhari 1r. 9ashif 1ateen Ansari 1r. Cafar Alam 9han &umbal 1r. 1uhammad Af#al 1unif, 5CA 1r. 1uhammad Dajam Ali, 5CA 1r. ari, $,bal 9han, 5CA (NIT Nominee)
*#dit Co&&ittee
Brig. (0) Asmat 8llah 9han Dia#i Chairman Brig. (0) 1uhammad &hira# Baig 1r. 9ashif 1ateen Ansari
Co&pan$ Secretar$
1r. &aleem An"ar, 5CA
COR)OR*TE + SENIOR M*N*,EMENT

Head O((ice
9alim+ur+0ahman President & Chief Executive ari, 1ahmood, &@E' Group Head Operations & Credit &haharyar Ahmad, &@E' Group Head Corporate & Investment an!in" 1.0. 1ehkari, &@E' Group Head Treasur# and $inancia% Institutions Agha Ali $mam, &@E' Group Head &etai% an!in" Group Fafee# 0. Guraishy, @E' 'ivisiona% Head Is%amic an!in" &uhail 0i#vi, @E' 'ivisiona% Head Internationa% Abdul Fafee# Butt, @E' 'ivisiona% Head Credit Cahid 1ahmood, @E' 'ivisiona% Head Human &esource 1. 1unir Ahmed, @E' 'ivisiona% Head E%ectronic Techno%o"# 0ehan 1ir, @E' 'ivisiona% Head Treasur# ahir A#i#, @E' 'ivisiona% Head Investment an!in" A.H. 1ubbashar, @E' 'ivisiona% Head &is! (ana"ement 9halid 1. 9han, &E' 'ivisiona% Head Comp%iance & 'ata &eportin" &aleem An"ar, &E' 'ivisiona% Head $inance 5aroo, Abid ung, &E' 'ivisiona% Head )"ricu%ture Credit 0ana &hahid Fabib, &E' 'ivisiona% Head Interna% )udit Fassan A#i# 0ana, E' *e"a% )ffairs Adil Caidi, E' 'ivisiona% Head +#stems & Operations 0aja 7aheed Caman, E' 'ivisiona% Head Credit Cards 5aheem A. Gureshi, E' &etai% an!in" )ssets An"aar &heikh, E' Corporate an!in" *ahore Arshad Ali 9han, E' Corporate an!in" ,arachi 1ohammad Ali 9han, E' Corporate an!in" &a-a%pindi . Is%ama/ad 9hurram 2ar, AE' Offshore an!in" 0nit1 ahrain &hahid &iddi,ui, AE' Investment Products
Regions - *reas
@ja# Ahmed 9han, &@E' &e"iona% Genera% (ana"er *ahore & East Da#imuddin A. Chaturbhai, @E' &e"iona% Genera% (ana"er +outh I & II &aif+ul+$slam, @E' &e"iona% Genera% (ana"er &a-a%pindi . Is%ama/ad $srar Ahmed, @E' )rea (ana"er North ari, &iddi,ue 3hauri, E' )rea (ana"er 2est
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*S.*RI *T )RESENT
he banking sector has "itnessed a dramatic change during the last ten years "ith the development of Askari Bank, "hich is not only redefining priorities and focus of the banks, but also threatening the domination of traditional players. he e!ternal factors contributing to this performance include a gro"ing economy, overall positive market sentiment and political stability, "hile the internal factors continue to be efficient management of assets and liabilities, effective control over operating e!penses, introduction of market oriented products, and customi#ation of e!isting products and strategic e!pansion of branch net"ork. 2uring -..6, Askari Bank continued "ith its gro"th momentum and posted substantial profits in an environment of good economic gro"th but highly competitive business conditions. he economic gro"th "as propelled by the above+target contributions from the three major sectors, i.e., large scale manufacturing, agriculture and services. he lo" interest rates, particularly during the first half of fiscal -..6, gro"ing demand for consumer credit, increased credit access, revitali#ation of the construction industry and gro"th in large scale manufacturing, "ere the main factors behind the phenomenal e!pansion in net private sector credit, "hich increased by 0s. :-? billion during fiscal -..6, against the estimates of 0s.;6. billion. he increase in consumer credit also had an e!pansionary effect on corporate finance, as the demand for automobiles and consumer durables, particularly electronic items, pushed up production in these sectors. $n a highly competitive environment, Askari Bank continually revie"ed its policy pertaining to the sectoral e!posures to derive optimum competitive advantage, maintain the risk profile and achieve greater customer satisfaction. Accordingly, Askari Banks corporate * commercial business accounted for 6?I of the total credit disbursed during the year, follo"ed by &1@ at -6I, 0etail and Agriculture credit at 1.I, and commodity financing at /I.
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COR)OR*TE *ND INVESTMENT B*N.IN,

he Corporate and $nvestment Banking business is managed by t"o 2ivisions, under the Corporate and $nvestment Banking 3roup. he Corporate Banking undertook a number of debt re+pricing s"ap transactions, aimed at reducing the financial burden of its key client portfolios, "hile $nvestment Banking continue to manage advisory and loan arrangement activities and also active trading in bonds and e,uity markets. 2uring -..6, Corporate Banking further e!panded its customer base and ne" relationships "ere established in the telecommunications sector including L2$, 7LL, fuel and energy, and manufacturing sectors. Corporate Banking has dedicated marketing and support units functioning at 9arachi and Lahore, in addition to the base at 0a"alpindi. $n order to enhance focus on relationship management, and service ,uality, more dedicated staff is being assigned to the 2ivision. he $nvestment Banking activity mainly covers, debt * capital markets, advisory services and trading (both e,uities and bonds). he Capital 1arket 2esk, based at 9arachi, increased the volume of capital market related transactions as a result of the positive stock market sentiment, mostly during the second half of -..6. $nvestment Banking also participated in various debt and capital raising instruments during the year. he Corporate and $nvestment Banking group "ill continue to play a major role in loan syndications, structured financing and debt * capital raising transactions "ith the objective of providing entire range of corporate and investment banking solutions to its valued clients, under one umbrella.
CREDIT C*RDS
2espite strong competition, the credit card business, under the 1asterCard brand, maintained its gro"th in all areas of the business. Det card issuance increased by 6.I during the year and cards in force (C$5) crossed the 16.k mark. ransaction volume increased by ;BI, "hile the Credit Cards loan portfolio increased by 1;I. D'Ls on account of the loans portfolio remained "ell "ithin the industry norms. After the successful launch of 'akistans first ='latinum Card=, Askari 1asterCards re"ards program is offering attractive features to our valued customers. Also,
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various arrangements "ere made "ith leading service providers in the market to benefit Askari 1asterCard customers "ith e!clusive travel and leisure facilities.
TRE*SURY *ND INTERN*TION*/ O)ER*TIONS

1oney market conditions during -..6 "ere clearly reflective of the 0egulators balancing t"o conflicting objectives 4 fostering gro"th and controlling inflationary pressures. he relatively lo" interest rate environment during the first half of -..6, changed "ith the rising credit demand in the manufacturing, retail, services and agriculture sectors, and an increase in inflation. 2uring -..6, the 0upee * 8& 2ollar e!change rate "itnessed moderate volatility. 2uring the initial months, the rupee remained under pressure due to the deterioration in the e!ternal account. Fo"ever, during the later part of the year, the rupee recovered some lost ground, mainly due to a rally attributable to &B's commitment to smooth the oil payments. Accordingly, the 0upee started the year -..6 at 6?.:/ against 8& 2ollar and ended the year at 6?.A1. 1oney market remained fairly li,uid despite gradual rise in interest rates. he "eighted average yields of / months reasury Bills rose to A.-6I p.a. in 2ecember from ;.B;I p.a. in Hanuary -..6, thus reflecting a net increase of :61 bps in a single year. he intense competition, along "ith the deregulation and liberali#ation of the money and foreign e!change markets, placed the reasury in a demanding position, and it is no" under further pressure to offer more innovation in undertaking arbitrage and derivative transactions to maintain, and increase, its share in the overall earnings of the Bank. he reasury operations are effectively structured to measure, manage and mitigate the risk elements associated "ith the reasury activities, through the use of $ systems and enhanced human resource skills, so that the reasury can manage the risk better, and also provide advice and services to the branches and their customers. he Bank increased its share in the overall foreign trade of the country during -..6. he import business increased to 0s. ?A.; billion, i.e. ;1I over last year, "hile the e!ports also increased by ;1I over last year, to 0s. ?- billion.
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OFFSHORE B*N.IN, UNIT

Askari Banks %ffshore Banking 8nit (%B8), has no" completed t"o years of operations and has increased its share of contributions to the Banks overall earnings. he %B8 remains on a constant look out for opportunities on the international scene, "hich are both profitable and provide the Bank "ith a strategic edge. he %B8 enhances our capability in terms of offering a "ider range of services to our customers, and also acts as a look+out for ne" business opportunities and relationships in the international markets.
*DV*NCES *ND CREDIT

he gro"ing demand for credit, coupled "ith the marketing efforts of the 0egions * Areas, led to a substantial increase in the loans and advances portfolio during the year, despite a steep increase in the benchmark rates. Askari Banks funded credit portfolio increased by -;I to close at 0s. AA.:. billion. A revie" of the securities held against credit limits reveals that the credit portfolio of the Bank is "ell collaterali#ed, "ith about ;:I of the e!posure being covered by securities of li,uid nature, such as deposits, trade documents, e,uity or debt instruments, guarantees from government or financial institutions, etc. 2uring the year, Banks non+performing advances increased to 0s. -.; billion, from 0s. 1.1 billion last year due to addition of certain large e!posures. Conse,uently D'Ls ratio as a percentage of gross advances also increased from 1.6I to -.BI. Fo"ever, it "as still "ithin the industry average. 2uring -..6, Askari Bank made further provisions of 0s. /;? million "hich includes specific (0s. :/B million) and general provisions (0s. 1B- million) including general provisions maintained in terms of the 'rudential 0egulations for Consumer 5inance (0s. 1./ million), bringing the cumulative provisions to 0s. -.: billion. hese provisions along "ith the reserve maintained for contingencies, provides 116I coverage to the total D'Ls.
INFORM*TION TECHNO/O,Y
%ur strength in the area of information technology based services has al"ays been an edge in the competition and has been a source of considerable strength in the
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e!pansion and management of the customer base of the Bank. echnology support provides alternate service delivery channels and higher customer satisfaction levels. 2uring -..6, various technology initiatives "ere successfully implemented. he t"enty+four branches opened during the year "ere operational "ith on+line banking from day one of their respective operations. After the soft opening during -..:, Askari Customer Care Center + a dedicated customer call center, "as formally inaugurated during -..6. $ts primary objective is to provide a one "indo" service to our valued customers in terms of their telephonic en,uiries. As result of Askari Banks co+founded A 1 s"itch, =%ne+Link=, the largest A 1 s"itch in 'akistan, together "ith 1+net, the second s"itch, the Banks customers can no" access their accounts through more than 1,1.. online A 1s throughout 'akistan. 2uring -..6, Askari Bank achieved yet another =first= in the banking history of 'akistan "ith the successful launch of mobile A 1 solutions for our valued customers. 8sing "ireless 3'0& technology, these =A 1s on "heels= can be placed at strategic locations at peak times to serve the customer needs. 1aking crucial, timely, strategic decisions is a must to stay ahead in todays competitive banking environment. 7ork continues on the Banks =2ata 7arehouse= "hich is being e,uipped for providing the management "ith accurate, up+to+date information enabling them to make timely and prudent decisions. he Bank remains focused on using technology for improving customer service standards and e!panding the range of products being offered and other technology based solutions.
*,RICU/TURE CREDIT FIN*NCIN,

he Agriculture Credit 2ivision (AC2), a relatively ne" setup, dedicated to serve the needs of the largest sector of our economy, achieved substantial progress during -..6. AC2s primary focus remained on the development and introduction of agriculture financing products based on the farmers needs and sound credit management principles and practices. &ince its launch, AC2 has introduced a broad range of products, under the =Askari 9issan= agri finance program, to ade,uately meet short and long term financing re,uirements of the farmers for raising crops, dairy farming, poultry, fisheries, $nstitute of Business Administration
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forestry and orchids. Agri loans are also provided for farm mechani#ation, transportation, marketing of agriculture produce, storage, land improvements and irrigation. he initiation of all proposals is based on sound and "ell defined criteria for assessing ,uantitative and ,ualitative risk profiles of each applicant * transaction "ithin the admissible lending practices of agriculture credit allo"ed by &B'. All finances are asset based * collaterali#ed and * or secured by other acceptable securities. Appropriate margins on securities are applied "here specified by &B', or determined by the Bank, on the basis of disposal costs and potential prices movements of the underlying assets. Crops * asset and life insurance of borro"ers are mandatory for mitigating risks arising from uncertainties. he 2ivision remains proactively engaged in evolving policies and procedures for strengthening the credit frame"ork for the benefit of all stakeholders, and is determined to make its full contribution to"ards ensuring that 'akistan is a food and fiber surplus country.
IS/*MIC B*N.IN,
he Bank, after obtaining approval in principal from the &B', is in the process of building the infrastructure necessary for dedicated $slamic Banking Branches in major cites of the country. $slamic Banking is going to e!pand our outreach and capabilities for offering products conforming to the &hariah principles.
RE,U/*TORY
ENVIRONMENT
MINIMUM
C*)IT*/ RE0UIREMENT
2uring -..6, the &tate Bank of 'akistan introduced ne" initiatives on various policy and regulatory fronts "hich "ould impact the Banks business in the years to come. Amongst others, these initiatives include implementation of Basel $$, guidelines for stress testing, guidelines for infrastructure project financing, introduction of prudential regulations for agriculture financing and amendments in prudential regulations for provisioning re,uirements. he ne" provisioning re,uirements, inter alia, resulted in higher provisioning re,uirements against the D'Ls. he Bank fully met the enhanced re,uirements at the
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year+end resulting in an additional charge of 0s. 116 million on this count. Fo"ever, subse,uent to the close of -..6, &B' has allo"ed banks a temporary rela!ation for complying "ith the revised classification and provisioning criteria, in a phased manner, by 2ecember ;1, -../. Fo"ever, the Bank has not availed the benefit of this rela!ation and has thus protected the earnings of -../ from any additional charge on this account. 2uring the year, &B' enhanced minimum paid+up capital re,uirement for commercial banks from 0s. -.. billion to 0s. /.. billion by the year -..?, in a phased manner. he paid+up capital re,uirement for the year ended 2ecember ;1, -..6 "as 0s. -.. billion, "hich the Bank has complied "ith through earmarking reserves for issue of bonus shares. Also, the e!isting fi!ed Capital Ade,uacy 0atio is being replaced "ith variable CA0, to be determined based on the $nstitutional 0isk Assessment 5rame"ork. Askari Bank and its management take full cogni#ance of the steps being introduced by the &B' to promote good governance practices among banks, and to establish effective anti+money laundering processes in keeping "ith international re,uirements.
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*1*RDS *ND *CHIEVEMENTS

%ver the years, "e have received several a"ards for the ,uality of our banking service to individuals and corporate. hese includeJ Co&&ercial Ban! o( t%e Year a"ards for 1??: K 1??/ from the Asia money maga#ine Best Do&estic Ban! o( )a!istan a"ard for 1??6 from the @uro money maga#ine T%e Best Ban! in )a!istan a"ards for -..1 K -..- from the 3lobal 5inance maga#ine Best Cons#&er Internet Ban! in )a!istan a"ards for -..- to -..: from the 3lobal 5inance maga#ine Best Corporate - Instit#tional Internet Ban! in )a!istan a"ard for -..: from the 3lobal 5inance maga#ine Best Retail Ban! in )a!istan a"ards for -..; K -..: from the Asian Banker, &ingapore Corporate E2cellence a"ards for -..- to -..: from the 1anagement Association of 'akistan (1A') Ban! o( First C%oice a"ard for -..: from the Consumer Association of 'akistan Best Corporate Report3 (or t%e Financial Sector 1st pri#es for -... to -..: from the $nstitute of Chartered Accountants of 'akistan ($CA') and the $nstitute of Cost K 1anagement of Accountants of 'akistan ($C1A') Best )resented *cco#nts 0anking pri#es (-nd or ;rd) for 1??B to -..- K -..: from the &outh Asian 5ederation of Accountants (&A5A), for the "hole &outh Asian 0egion Askari Bank has also proved its strength as a leading banking sector entity, by achieving the follo"ing =firsts= in 'akistani bankingJ i) 5irst Bank to offer on+line real+time banking on a country+"ide basis ii) 5irst Bank "ith a nation+"ide A 1 net"ork iii) 5irst Bank to offer internet banking services iv) 5irst Bank to offer e+commerce solutions v) 5irst Bank to introduce mobile A 1
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CREDIT R*TIN,4
2uring the year, the 'akistan Credit 0ating Agency ('vt) Limited ('AC0A) maintained your Banks long term rating at =AAL= and short term rating at =A1L=, the highest possible for this category. According to 'AC0A, Mthese ratings reflect sustained ability of revenue gro"th from core operations "hile maintaining a lo" risk profile and also dynamic as "ell as efficient fund deployment strategy. 3oing for"ard, given the strong technological platform and enhanced geographical outreach, the Bank is "ell positioned to maintain its competitive edge despite an increasingly competitive operating environmentN.
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OB5ECTIVES
O o achieve sustained gro"th and profitability in all areas of business. O o build and sustain a high performance culture, "ith a continuous improvement focus. O o develop a customer+service oriented culture "ith special emphasis on customer care and convenience. O o build an enabling environment, "here employees are motivated to contribute to their full potential. O O o effectively manage and mitigate all kinds of risks inherent in the banking o ma!imi#e use of technology to ensure cost+effective operations, efficient business. management information system, enhanced delivery capability and high service standards. O o manage the Bank=s portfolio of businesses to achieve strong and sustainable shareholder returns and to continuously build shareholder value. O o deliver timely solutions that best meets the customers financial needs. O o e!plore ne" avenues for gro"th and profitability
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BUSINESS ETHICS + CONDUCT

Askari Bank seeks to maintain high standards of service and ethics enabling it to be perceived as impartial, ethical and independent. $n addition to the general guidelines, the follo"ing are the salient features of the Banks code of ethics and conduct. O 'resence of a corporate c#lt#re that seeks to create an environment "here all persons are treated e,uitably and "ith respect. O @mployees must carry out their responsibilities in a pro(essional manner at all times. hey must act in a prudent manner and must avoid situations that could reflect unfavorably on themselves, the Bank or its customers. O @mployees must commit to the continued development of the service culture in "hich the Bank consistently seeks to e!ceed customers e!pectations. 5airness, ruthfulness and ransparency govern our c#sto&er relations%ips in determining the transactional terms, conditions, rights and obligations. O @mployees must safeguard con(idential information "hich may come to their possession during the discharge of their responsibilities. 0espect for customers= confidential matters, merits the same care as does the protection of the Bank=s o"n affairs or other interests. O @mployees must ensure that !no6 $o#r c#sto&er principals are adhered by obtaining sufficient information about the customers to reasonably satisfy ourselves as to their reputation, standing and the nature of their business activities. O @mployees must avoid circumstances in "hich their personal interest con(licts, or may appear to conflict, "ith the interest of the Bank or its customers. @mployees must never use their position in the Bank to obtain an advantage or gain. O @mployees must not enter into an agreement, understanding or arrangement "ith any co&petitor "ith respect to pricing of services, profit rates and * or marketing policies, "hich may adversely affect the Bank=s business. O @mployees must not accept gi(ts3 #siness entertain&ent or ot%er ene(its from a customer or a supplier * vendor, "hich appear or may appear to compromise commercial or business relationship. O @mployees must remain alert and vigilant "ith respect to (ra#ds3 t%e(ts or illegal activities committed "ithin the Bank premises. $nstitute of Business Administration
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INS)IRIN, RE/*TIONSHI)S
INS)IRIN, 7883888 RE/*TIONSHI)S
9no"ing our customers and their needs is the key to our business success. %ur products and services are as diverse as our market segments. %ur client relationship managers are "ell e,uipped and "ell trained to provide the most efficient and personali#ed service to the customers. 7e have structured and syndicated financing arrangements, provided "orking capital and balancing+moderni#ation+replacement (B10) facilities, financed international trade, provided small business loans and cash management services, and developed innovative investment and loans products for the individual savers and households. Askari Bank is proud of its pioneering role in providing the most modern and technologically advanced services to its /..,... relationships.
INS)IRIN, EM)/OYEE RE/*TIONSHI)S

7e strongly believe that the interests of the Bank and the employees are inseparable. At Askari, "e try to create a <"e culture "here there is mutual trust and respect for each other. 7e encourage o"nership behavior so that everyone feels responsible for the performance and reputation of the Bank. 7e are committed to develop and enhance each employees skills and capabilities through e!tensive in+house and e!ternal training programs and job rotation. he strong employee bank relationship is evidenced by the fact that Askari has a lo" employee turnover. 1ost of the top management today, have reached their present positions by gro"ing "ithin the organi#ation.
INS)IRIN, TECHNO/O,IC*/ INNOV*TIONS

echnology has played a pivotal role in meeting customer e!pectations, particularly "ith respect to speed and ,uality of service. 7e have fully automated transaction+ processing systems for back+office support. %ur branch net"ork is connected on+line real+time and our customers have access to off+site as "ell as on+site A 1s, all over 'akistan. %ur 'hone Banking &ervice and $nternet Banking 5acility allo"s customers to enjoy routine banking services from any"here anytime in the "orld.
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7e also pioneered an e+commerce venture in 'akistan through a major retail distributor. %ur mobile A 1s are the first in 'akistan.
INS)IRIN, ETHIC*/ V*/UES

$ntegrity is the most valued standard in "hatever "e do. 7e understand that our commitment to satisfy customers needs must be fulfilled "ithin a professional and ethical frame"ork. 7e subscribe to a culture of high ethical standards, based on the development of right attitudes. he intrinsic values, "hich are the corner stones of our corporate behavior, areJ O Commitment O $ntegrity O 5airness O eam+"ork O &ervice
INS)IRIN, ,RO1TH
5or us the challenge is to build a foundation of strong, consistent financial performance and focus on gro"ing our balance sheet and revenues at lo" risk. 2uring the year, "e opened t"enty four fully automated branches, increasing our branch net"ork to ??, including an %ffshore Banking 8nit in Bahrain. Central to our gro"th strategy is a focus on speciali#ation and transformation. 7e are reshaping our portfolio of businesses by investing in higher gro"th areas, e!tending and developing our core competencies and moving out of "eak and non+core segments.
INS)IRIN, SH*REHO/DER CONFIDENCE

7e believe that the bottom line of any business is creating shareholder value. o gain their trust and confidence, "e believe in providing our shareholders timely, regular and reliable information on our activities, structure, financial situation and performance. At the same time, "e try to give them one of the best earnings per share in the banking industry of the country.
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OR,*NO,R*M
BO*RD OF DIRECTORS E2ec#tive Co&&ittee )resident and C%ie( E2ec#tive Internal *#dit
Corp. Banking K 5in. $nst. 3roup
%perating and credit group
0egions
0etail Banking 3roup
Credit Cards
$nternational
Credit
0a"alpindi *$slamabad Dorth
Asset 'roducts
'lanning and Corporate affairs Fuman 0esource
reasury
@lectronic echnology &ystems and %perations
$nvestment products
Corporate and 1erchant Banking
Lahore
5inance
2ata 0eporting
@ast
Legal Affairs
&outh $
&outh $$
7est $nstitute of Business Administration
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RECRUITMENT )O/ICY
$ had detailed discussions "ith many of the bank employees on the recruitment policy of the bank. 7hat $ can find out and $ observed that to get job in the bank is not just on merit. $ts not that contacts "ork only. But it seems pretty reasonable for the banks "hen they demand things other that ,ualifications. he major criteria to get a job in the banking sector includes Business contacts 2eposits Gualification.
5rom the banking point of vie", as "e all kno" that they need business, they need such contacts, "hich can enhance their business portfolio, or they need deposits. Both these can happen through contacts or marketing or through people "ho "ork for it. hats"hy Askari is also looking for the people "ho are eligible as "ell as can bring business also. $n Askari the recruitment is done through t"o major sourcesJ 2irect Appointment 1anagement rainee &eat
he combination made bet"een the t"o is A.I to -.I.
Direct *ppoint&ent
hese are made through intervie" or personal contacts. he up"ard movement is slo". he first promotion is granted after the completion of first t"o years. Appointment may be in any department of the bank.
Manage&ent Trainee
As Askari believes that talented people are needed and they should be a compulsory part of their team, every year Askari opens its doors for fresh post+graduates to join the prestigious ranks of 1anagement rainee officers "ith the Bank. he 1 % scheme is a highly competitive and sought after
Askari Commercial Bank Ltd. induction scheme, in "hich short+listed applicants appear in a "ritten test follo"ed by a panel intervie".
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&uccessful candidates then receive comprehensive training in essential areas of branch banking at the Banks state+of+the+art training facility at 0a"alpindi prior to their posting at various branch locations. hese people are said to be the think tank of the bank. he pay scale offered to 1 %s is high.
1 %s are directly appointed in %&3+$ and assistant manager. he career ladder moves fast in the up"ard direction provided efficient performance. he departments offered to 1 %s are normally 5C>, rade 5inance, and Credits departments. raining is a must for each and every person "ho enters in the bank as an employee.
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BR*NCH OR,*NO,R*M
E'*1anager
1anager Credit
$ncharge 5oreign @!change
AE' &pecial Assignment &B'K $nternal Audit
1anger %perations
&enior Credit %fficer Credit %fficer Agriculture Credit %fficer
$mports @!ports Cash 2epartment $ncharge
$ncharge 3eneral Banking
%&3+$$ $ncharge Admin 2river 1essenger 0eceipt Cashier Cash &orter %nline 'osting Cash %fficer 'ayment Cashier
Clearing Bills K 0emittances Accountants &ystem Administrator 'ABP %perator 1essenger
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EM)/OYEES IN V*RIOUS SECTIONS

here is only one branch of Askari in 3ujran"ala. he number of employees "orking in the bank is ;:. he name, designations and job assignments of all those employees are as under "ith "hom $ "orked.
,ENER*/ B*N.IN,
Na&e4 Abid Bukhari Designation4 $ncharge 3eneral Banking 0#ali(ications4 B.Com *ssign&ents4

&upervision %nline posting Attorney holder &ignature Eerification ;. years
E2perience4 Na&e4
&alman 9han
Designation4 %&3+$$$ 0#ali(ications4 B.Com *ssign&ents4
Local clearing ; years
E2perience4 Na&e4
%mer $drees
Designation4 &ystem Administrator 0#ali(ications4 B.Com *ssign&ents4

&upervision of $ infrastructure 1aintenance of systems $nstitute of Business Administration
Askari Commercial Bank Ltd. E2perience4 Na&e4 : years
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Dadia Fafee#
Designation4 'ABP %perator 0#ali(ications4 B.A *ssign&ents4

0eceiving mails 5a! and telephone operator 2ispatches 1 year
E2perience4 Na&e4
Dadia >aseen
Designation4 $ncharge Admin 0#ali(ications4 B.A. *ssign&ents4

'A to manager Administrator of various tasks - years
E2perience4
CA&F 2@'A0 1@D

Na&e4 Abdullah 7arriach
Designation4 $ncharge cash 2epartment 0#ali(ications4 1.Com *ssign&ents4

&upervision Attorney holder &ignature Eerification ; years
E2perience4 Na&e4
1.Dadeem
Designation4 Cash %fficer $ncharge 0#ali(ications4 B.A $nstitute of Business Administration
Askari Commercial Bank Ltd. *ssign&ents4

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2ealing in securities Cash handling 1- years
E2perience4 Na&e4
1iss 9omal Ashraf %&3+$$
Designation4 *ssign&ents4

0#ali(ications4 BC& Che,ues posting Eoucher posting - years
E2perience4 Na&e4
$hsan @lahi Cashier
0#ali(ications4 B.A. 0eceipt Cashier
E2perience4 -. years Na&e4 9halid Daseer
Designation4 Cashier 0#ali(ications4 B.A *ssign&ents4 'ayment Cashier E2perience4 Na&e4 : years
ajamal Ali
Designation4 Cashier 0#ali(ications4 B.A *ssign&ents4 0eceipt Cashier E2perience4 - years
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Na&e4
Ahsan Bashir Cash %fficer
Designation4
0#ali(ications4 B. Com *ssign&ents4 $ssue oken E2perience4 Na&e4 1year
>asir &aeed
Designation4 Cash sorter 0#ali(ications4 B.A *ssign&ents4 0eceptionist E2perience4 Na&e4 - years
Cahid Fussain
Designation4 Cash %fficer 0#ali(ications4 B.A *ssign&ents4 Cash counting E2perience4 - years
*CCOUNT O)ENIN, DE)*RTMENT

Na&e4 1iss &abahat Da"a# Account %pening %fficer 2ealing all the matters related to account opening. he processing of 20s E2perience4 1 year
0#ali(ications4 1.com
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*CCOUNTS DE)*RTMENTJ
Na&e4 8sman 5ida
Designation4 %&3+$$ 0#ali(ication4 1.Com *ssign&ents4 &upervision E2perience4 Na&e4 / years
1r. %baid
Designation4 Accounts %fficer 0#ali(ication4 B.A *ssign&ents4

0econciliation 0eports generation Budgeting 1aintenance of fi!ed assets
E2perience4 1. years
FOREI,N E9CH*N,E DE)*RTMENT

Na&e4 &yed 1ohtashim $mam $ncharge 5oreign @!change
Designation4
0#ali(ications4 B.&c *ssign&ents4 &upervision of all the matters related to 5C> E2perience4 Na&e4 -6 years
&hahid Ali Amin Assistant 1anager
0#ali(ications4 B.Com

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0etirement of usance L*C &upervision of imports 0etirement of &ight L*C L*C 'rocessing L*C %pening
E2perience4 Na&e4
1- years
1iss Dadia 0afi,ue @!ports %&3+$$

0#ali(ications4 1BA 5oreign Currency Accounts* 5oreign Bills 5or Collection Lodgment* 0eali#ation &tanding $nstructions Advance 'ayment @ncashment in 'ak 0upees $nternal ransfers Adjustment 5or %utstanding Bills 5or Collection3 $ssuance of @4form Degotiation - years A"ais &hams @!ports
E2perience Na&e4
0#ali(ications4 B.Com All transactions related to foreign currency
E2perience4 - years
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CREDITS DE)*RTMENT
Na&e4 Cain+ul+Abidin 1anager Credits
Designation4
0#ali(ications4 1BA *ssign&ents4 &upervision E2perience4 Na&e4 Designation4 0#ali(ications4 *ssign&ents4 E2perience4 Na&e4 16 years 1.Aslam Credit %fficer BA 'reparation of credit line proposals - years
1iss Asfa 9halil Credit %fficer 'reparation of credit line proposals / >ears
Designation4 *ssign&ents4 E2perience4 Na&e4
0#ali(ications4 BA
1r. Cahid 0ashid Credit %fficer
Designation4
0#ali(ications4 BA *ssign&ents4 'reparation of credit line proposals Fandling of securities E2perience4 Na&e4 Designation4 0#ali(ications4 *ssign&ents4 : years $mran Cafar Baj"a Agriculture Credit %fficer B.A 'reparation of Credit Line 'roposals for agri credit
Askari Commercial Bank Ltd. E2perience4 Na&e4 Designation4 - years 5aroo, latif Agriculture Credit %fficer
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0#ali(ications4 B.A *ssign&ents4 'reparation of Credit Line 'roposals for agri credit 1arketing for agri credit E2perience4 Na&e4 - years
8sman &afdar Agriculture Credit %fficer
Designation4
0#ali(ications4 B.Com *ssign&ents4 &upervision E2perience4 / years
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5OB *SSESSMENT METHODS

here is no objective method as such or there is no hard and fast rules follo"ing "hich the job efficiency of any "orker can be assessed. But of course there are some subjective methods, "hich help the management to assess the job efficiency. he factors, "hich are considered, are as underJ
5irst of all the management itself considers the repute of the officer, his attitude to"ards his job and his sense of responsibility. &econdly, each and every department is given a target at the month start or at the year start. hey are re,uired to achieve those targets collectively. @ach officers efforts are considered in the accomplishments of those targets. his also sho"s the commitment of the officer to"ards the job.
hen efficiency is also measured through the business, "hich has been brought by the employee. @very employee has some contacts but the management considers the fact that ho" far the employee is committed to use those contacts for his organi#ation. his also sho"s the loyalty of the employees for the bank.
Another counting factor is the business, "hich has been brought to the bank by any officer. At the year end all these factors are taken into consideration by the management and inferences are dra"n and upon the managements recommendation the officer is re"arded or given promotion or is advised to perform better.
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COMMENTS ON 5OB S*TISF*CTION

Fuman desires are unlimited. And so it seems very fictitious to be satisfied until or unless he is content. 7e hardly find a person "ho is satisfied "ith "hat he has and so is the case "ith the jobs and the re"ards offered in turn. he job satisfaction level in Askari is very high in some departments and it is really opposite in other departments. his may be due to the focus of the upper management on some specific departments. Apparently everybody seems to be satisfied but the shortcomings $ could feel in different departments are as underJ *CCOUNT O)ENIN, DE)*RTMENT he salaries and re"ards offered are less as compared to the "orkload. @mployee in accounts department is satisfied. @mployees in this section must be increased in number to cover "orkload.
C*SH DE)*RTMENT he "orkload on each person is very high. 8pper management does not appreciate this staff very much. @mployees should be compensated "ith e!tra a"ards for staying late hours. Do doubts the job assignments are clerical in nature still the re"ards are lo".
*CCOUNTS 8p"ards movement in career ladder is really slo". 'eople really "ant to shift to others departments.
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he ultimate promotion from this department may be the accounts manager, "hich is an insufficient incentive for the employees to "ork efficiently.
FOREI,N CURRENCY DE)*RTMENT &taff employed is lesser in number as compared to the large volume of transactions. he jobs assigned are managed "ell. @mployees in this department are not evenly re"arded. Level of satisfaction is much higher in this department.
CREDITS DE)*RTMENT Level of satisfaction is the very lo" in this department. 8p"ard movement in this department is lo". Career ladder does not reach to the e!ecutive scale.
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M*N*,ERI*/ )O/ICIES
1anagerial policies include all those policies "hich are adopted by the bank in performing all it internal activities as "ell as e!ternal operations. 2ifferent policies are re,uired in order to introduce innovation and ensure ma!imum operational efficiency at minimum cost.
)O/ICY FORMU/*TION )ROCESS

Any policy that is being suggested is to be approved by the beard of directors. Before this, the management of the bank takes up the affairs that are to be discussed in the board meeting and the agenda is prepared. Circular is sent to the persons "ho have to attend the meeting. And the policies and issues are discussed for possible approval or rejection in the meeting. A&9A0$ C%11@0C$AL BAD9 has its policy making function centrali#ed to the upper management. he upper management after making the policies communicates them to the respective departments and branches. not take part in policy formulation but can give suggestions. he policies of Askari Commercial Bank are as follo"sJ A. 5inancial policies B. 'rocurement policies C. 1arketing policies 2. 'romotional policies @. lending policies 5. 'ersonal policies he meetings for policy making are held as and "hen re,uired. Lo"er management loses
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FINANCIAL POLICIES
he financial policies of any bank are the most important policies through "hich the "hole banking activity is conducted. hese policies are primarily conducted onJ &ource of funds 8se of funds
)ROCUREMENT )O/ICIES
'rocurement policies are more concerned "ith manufacturing organi#ations. $n bank industry that is service industry procurement means the procurement of funds from various sources such as deposits. $t involves attracting and holding the funds of the depositors.
M*R.ETIN, )O/ICIES
1arketing policies are also one of the most important policies because they are related to the gro"th of the organi#ation. 1arketing for a bank "ould meanJ
1. Creation of ne" product and services. -. he bank marketing must be consumer oriented.
)ROMOTION*/ )O/ICIES
'ublic relation and advertising has assumed a great importance in the modern banking business. As far as promotional activities are concerned, the main objective of the bank is to inform the e!isting clients and other people about its ne" products or change in the e!isting services. ACBL establishes its purpose throughJ 1. 2irect contact "ith customers.
Askari Commercial Bank Ltd. -. 0elation "ith business organi#ations. ;. Community relations.
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/ENDIN, )O/ICIES
@very bank has its o"n lending policies e!cept for those, "hich are common for all the banks, i.e. the policies, "hich are imposed on all the commercial banks by the &B', are kno"n as prudential regulations. follo"sJ 1. he bank only invests in those sound and viable projects, "hich have good rate of return. -. Bank prefers to advance loan to their account holders. ;. Loan is given to reliable person only. :. Do political loan is sanctioned by bank. 6. Any account holder can apply for running finance or demand finance. he manger appraises the past record of account holder and his credit "orthiness. $f he finds any thing "rong he can refuse to sanction the amount. /. he bank "hile taking security prefers govt. &ecurities to shares. B. $t also advances "orking capital loans. he lending policies of ACBL are as
)ERSON*/ )O/ICIES
3ood personal policies motivate the employees to"ards hard"orking. 5ollo"ing are the main personal policies of ACBLJ 1. &election of employees on merit -. &election of capable employees. ;. Attractive salary package for motivation of employees. :. o train and develop the future management of the bank. 6. @very employee must have certain set of clearly defined duties /. @ffective communication at al levels of the organi#ation.
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M*N*,EMENT STY/ES
o avoid risks in a bank and for security measures banks adopt Autocratic style. he leadership style in most of the departments of bank is *UTOCR*TIC: he features are discussed as underJ he managers are very directive and allo" no participation from the lo"er side. he managers tend to give individual attention "hen praising and critici#ing but try to be friendly or impersonal rather openly hostile. 1anagers try to be objective in giving praise or critici#ing.
IM)*CT ON MOR*/E OF EM)/OYEES

Administrative style has a strong impact on the moral of employees. 1ost of the "ork in bank is monotonous and need special attention. &peciali#ed employees "ork in different departments. @mployees are rotated on different seats after one or t"o years. $t affects the employees performance. &ometimes they perform better on another seat. Eery strict behavior is adopted by managers to control the "ork and to run the "orking smoothly. $t has strong impact on morale of employees as they become reluctant to "ork. @mployees become fed up "ith the routine and find difficult to face the burden.
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M*R.ETIN, MI9
1arketing scope in banking sector should be considered under the service marketing frame"ork. 'erformed marketing strategy is the case "hich is determination of the place of financial institutions on customers mind. Bank marketing does not only include service selling of the bank but also is the function "hich gets personality and image for bank on its customers mind. %n the other hand, financial marketing is the function "hich relates uncongenially, differences and non similar applications bet"een financial institutions and judgment standards of their customers. he reasons for good marketing mi! for Askari bank is important asJ
CH*N,E IN DEMO,R*)HIC STRUCTURE

2ifferentiation of population in the number and composition affect ,uality and attribute of customer "hom benefits from banking services.
INTENSE COM)ETITION IN FIN*NCI*/ SERVICE SECTOR

he competition became intense due to the gro"ing international banking perceptiveness and recently being none limiting for ne" enterprises in the sector.
B*N.;S 1ISH FOR INCRE*SIN, )ROFIT

Banks have to increase their profits to create ne" markets, to protect and develop their market shares and to survive on the basis of intense competition and demographic chance levels. he marketing comprehension that is performed by Askari bank can be sho"n as in follo"ing five stagesJ 1. 'romotion oriented marketing comprehension -. 1arketing comprehension based on having close relations for customers ;. 0eformist marketing comprehension :. 1arketing comprehension that focused on speciali#ing in certain areas 6. 0esearch, planning and control oriented marketing comprehension
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)RODUCT - SERVICE MI9

0ecently, Askari is in a period that it earns money in servicing beyond selling money. he prestige is get as it offers its services to the masses. Like other services, banking services are also intangible. Banking services are about the money in different types and attributes like lending, depositing and transferring procedures. hese intangible services are shaped in contracts. he structure of banking services affects the success of institution in long term. Besides the basic attributes like speed, security and ease in banking services, the rights like consultancy for services to be compounded are also preferred. 5ollo"ing are the services offered by Askari other than general banking.
RET*I/ B*N.IN,
*S.C*RD
Askari Bank is committed to provide you innovative and competitive solutions to your banking needs in a more efficient and personali#ed manner. >our Bank enjoys a strategic competitive advantage over all domestic players by virtue of its leadership, large net"ork and technological advancement. $n line "ith our tradition of innovation, Askari Bank takes pride in announcing launch of QA&9CA02Q+ Askari Bank=s 2ebit Card. A&9CA02 is tailored to your shopping needs and is another valuable financial solution reflecting our commitment to build lasting relationship "ith you. A&9CA02 means freedom, comfort, convenience and security, so that you can have retail transactions "ith complete peace of mind. A&9CA02 is your ne" shopping companion "hich enhances your ,uality of life by letting you do shopping, dine at restaurants, pay your utility bills, transfer funds, "ithdra" and deposit cash through A 1 any"here, anytime.
*S.C*R
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Askari Bank offers you the most convenient and affordable vehicle financing scheme QAskarQ to help you o"n your favorite brand ne" car. Askar=s QDo eligibilityQ clause automatically ,ualifies you to o"n a ne" car of your choice. Salient Feat#res De" Eehicles of any brand valuing upto 0s. 1,...,... "ill be financed. he 5inancing period can be ;/, :A or /. months "ith our financing upto B6I of vehicle cost. $nsurance through us "ill be mandatory "here first year=s insurance "ill be taken up front. 2ocumentation Charges "ill be 0s. ;,... inclusive of 0s. 1,... non+ refundable processing charges.
*S.)O1ER
A&9'%7@0 is the name for Askari Bank=s 're+paid Card. Although, it is a Qstored valueQ card, but unlike an A 1 or debit card, A&9'%7@0 is not connected to any account. $t is an instant cash card that can be used at any ACBL A 1 or other A 1s carrying 1+Link symbol, i+Det Banking and at all designated 'oint of &ale terminals. 'lay on >our %"n erms he card offers remarkable convenience forJ @veryday purchases 'ayment of bills &afe alternative for carrying cash during travelling, special occasions, and emergency back up. @asy transfer of money from one A&9'%7@0 card to other A&9'%7@0 card. he ideal accessory for students. As a pre+paid card, A&9'%7@0 has its o"n built+in spending limitR set by ho" much money is loaded to it and ho" fre,uently it is topped up. 1oney can be conveniently loaded to any card either by depositing cash at any ACBL Branch or through the A 1. $+Det Banking from another A&9'%7@0 Card.
Askari Commercial Bank Ltd. .e$ Feat#res $ssued to ACBL * Don+ACBL customers.(D$C Card holders) 1inimum $ssuance LimitJ 0s. 6..*+ . 1..I customer acceptance. Card can be reloaded anytime. ransfer of money from one card to another card. 'ayment of 8tility Bills through A 1s and $nternet. $nstant access to moneyR -: hours a day, B days a "eek. @asy cash "ithdra"al through ACBL A 1s or A 1s carrying 1+Link or %ri! Leasing net"ork symbol. @asy cash "ithdra"al through ACBL A 1s or A 1s carrying 1+Link or %ri! Leasing net"ork symbol. 5ast, private, safe and secure option for cash transfers. 0eplacement of card in case of loss, theft, damaged or defective card.
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.e$ *dvantages 8ltimate "ay of carrying cash. @asy access to cash and commodities. Do "aiting in long ,ueues for paying utility bills. Do issuance fee. Do credit approval re,uired. Account relationship "ith ACBL not mandatory. Can be issued to anyone having Dational $dentity Card. Convenient and ine!pensive money transfers. &ecured online access to transaction records and purchases. Country"ide acceptance and availability. Askari Bank=s net"ork of A 1s %ther A 1s of our s"itch partners (1 Link)
*S.)O1ER at 1or!4
Askari Commercial Bank Ltd. %nline (through the i+Det Banking of ACBL) 'oint of &ale ('%&) terminals
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T%e *TM Factor4 Cash 7ithdra"al 8tility Bills 'ayment 5unds ransfer (to any other A&9CA02) Balance @n,uiry 1ini &tatement A 1 '$D Change
T%e Internet Factor4 8tility Bills 'ayment 5unds ransfer (to any other A&9CA02) Balance @n,uiry 5ull &tatement $nternet '$D Change he '%& erminal 5actor 5or product purchases 5or 8tility Bills payment
SM*RT C*SH
his personal line of credit "ould be set up "ith a specified credit limit upto 0s. 6..,...*+ >ou can "ithdra" cash from your credit line as and "hen you re,uire. he mark+up is charged only on the utili#ed amount and for the number of days the credit is used. he markup is lo"er than a credit card. 'ersonal loan and balance transfer facility. 5inance AmountJ 8p to 0s. 6..,...*+ revolving credit line
Askari Commercial Bank Ltd. 1inimum gross salary 0s. -6,...*+
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BUSINESS FIN*NCE
Do" you can stop "orrying about your daily cash re,uirements, and start enjoying our uni,ue running finance facility ranging from 0s. 6..,...* + to 0s. 1.,...,...*+. Available upto /.I of the assessed market value of your residential property, through e,uitable mortgage, you only pay mark+up on the daily outstanding loan balance. hree good reasons "hy you should avail this facilityJ @njoy the fle!ibility of either small business finance upto 0s. ;,...,...*+ 1edium business finance &1@s upto 0s. B6,...,...*+ 'rotect your business from immediate cash flo" constraints.
MORT,*,E FIN*NCE
@ver since the inception of life, shelter has been rated among the primary needs of mankind. %"ning a home for oneself still remains an e!clusive dream for many. Askari Bank has made the reali#ation of your dream to have a house of your very o"n possible. 7hether you plan to build a house, tailor made to your re,uirements or buy a constructed house, Askari mortgage finance enables you to pursue your goal "ithout any problems. Feat#ring4 5inance limit upto 0s. 1.,...,...*+ enureJ 8pto -. years 1arkup &ervicingJ 1onthly Life*'roperty $nsurance @arly settlement charges D$L Balance ransfer 5acility
)ERSON*/ FIN*NCE
%ne can avail unlimited opportunities through Askari Banks 'ersonal 5inance. 7ith unmatched financing features in terms of loan amount, payback period and most affordable monthly installments, Askari Banks 'ersonal 5inance makes sure that
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you get the most out of your loan. Do matter "hat your need is, Askari Bank has more "ays to serve you than ever before. Feat#ring4 Loan amount up to 6..,... 0epayment period from 1 to 6 years 5i!ed monthly repayment Competitive 0ates Do pre+payment penalties &hortest processing time &ervicing available at all ACBL branches And certainly unmatched service ,uality
7hen you are "orking to"ards your financial goals, ho" you borro" can be just as important as ho" you invest. he right borro"ing options can improve your savings, your cash flo" and your ability to take advantage of personal or business opportunities. &o, choose the right options and call us no" to en,uire about your entitlement amount and e!clusive service. At Askari bank "e make every effort to serve our customers facilities, "hich areJ Bac! to Original4 8nder this scheme borro"er can avail e!tended amount of finance upto the utili#ed allocated amount, if his*her repayments are regular. Balance Trans(er Facilit$4 $t gives the customer the opportunity to pay off his*her outstanding dues on their credit cards or other loans at a rate of interest much lo"er than "hat one pays on them. hat not only frees up their credit limit, but cost of servicing the debt is greatly reduced. Co&p#ter /oans4 "ith care. Dot restricted to ne" financing, under 'ersonal 5inance scheme, "e offer e!tended
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his scheme "as launched to promote the $. . technology in the country. $n this regard, "e have signed 1%8s "ith 1ultinational companies and large local corporate including schools K colleges. Drea& /i(e <Financing (or Cons#&er D#ra les=4 7e are the financial market player in delivering ,uality service to customers "ith highly professional standards. 7e have joined hands "ith various @lectronic Companies for sale, of the domestic appliances against consumer financing. 8nder this scheme, Askari Bank is financing products of these companies, "hich "ould benefit those people "ho can only afford to buy home appliances on installments due to limited resources. $n addition to this, "e have also signed agreements "ith other top manufacturers of automobiles for financing of motorcycles to the general public at most competitive rates.
TR*VE//ERS CHE0UES
3oing placesS 2on=t leave home "ithout the convenience of Askari ravellers Che,ues in your pocket. Available in the denomination of 0s.1.,...*+, it=s light, safe and ideal for all travel purposes. 7elcome to another valuable financial solution from your trusted bank. Free Iss#ance >ou don=t have to pay any service charges for purchasing Askari ravellers Che,ues. >ou can buy these either against cash or debit to your personal account. &imply visit any of our branches located all over 'akistan and enjoy the privileges of buying Askari Travelers C%e"#es @arn ..1.I encashment Commission his matchless feature lets you e!perience yet another innovative customer care solution. >ou "ill receive ..1.I commission "henever the traveller che,ue is encashed after ;. days of holding. En>o$ *dded Sa(et$ + Sec#rit$ 7ith our state+of+.the+art in+built security features you can be rest assured that this is the best "ay to make and accept payments. Figh security lithography, ultra violet printing, special thread, anti scanner pyramid design and uni,ue micro lines, all done
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and printed in 89 gives you the comfort of dealing in the most safest substitute for cash, easily refundable in case of loss and theft
V*/UE )/US
Askari Bank leads the "ay, yet again ...... "ith the introduction of Askari Bank=s Ealue 'lus, rupee deposit account, "hich promises greater financial freedom and security, in an unmatched "ay. $nvest as little as 0s.1.,...*+ in a value plus savings deposit and you are entitled to earn monthly returns, "hile still enjoying the fle!ibility of a normal checking account. *dvantages T 'artial li,uidity offer on all time deposits T 1onthly return T -:hours "orld+"ide protection plan T A&9CA02 (2ebit Card) K T %ur matchless service ,uality
*,RICU/TURE B*N.IN,
he role of agriculture in 'akistan economy is of pivotal nature. 2ue to diverse geographical and climatic conditions the country has tremendous potential for gro"th and development in agriculture. Fo"ever, ade,uate and timely financial assistance to the farmers "ill improve production potential of agriculture sector in the country. he modern concept of agricultural credit envisages establishment of an efficient institutional credit system to serve as a package of credit, supplies and kno"ledge for the overall strength of the farmers "ho at present suffer from lo" productivity and financial insecurity. A successful credit evaluation system, therefore, should have the basic ingredients to provide ade,uate amount at the right time and in the right form to help farmers in making a productive use of loan funds.
*S.*RI .ISS*N *,RICU/TURE FIN*NCE )RO,R*M

he Askari 9issan Agri 5inance 'rogram (A9A5') has been designed to meet %D 5A01 * %55 5A01 credit re,uirements of farmers on the most convenient, fle!ible, easy terms and conditions. he program featuresJ
Askari Commercial Bank Ltd. A broad array of credit lines designed to meet farming re,uirements.
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0epay and borro" at your convenience on revolving credit basis at lo"est mark+up rates rene"al able after three years. Convenient repayment terms based on cash flo" abilities. Availability of leased ractors * ransport "ithout Land * Collateral. Do Fidden Cost. Availability of interest free package for inputs and tractors etc. Do 're+adjustment penalties. @arn prompt payment Bonuses and reduce financial costs. $nsurance cover of leased assets, animals, crops and life assurance of borro"ers.
)RODUCTS Askari 9issan @ver 3reen Agriculture 5inance

Askari Bank has launched this program "ith the sole motive to provide dignity, prosperity and freedom to the tiller of the land. he program is designed to help small, medium and large farmers in meeting their short+term input re,uirements against one time sanction and automatically rene"able upto ; years subject to its stipulated utili#ation*periodical adjustment. he credit line is sanctioned in the light of available cash flo"s and input re,uirements i.e. &eeds, 5ertili#er K 'esticides etc. +a%ient $eatures of the Pro"ram are "iven as5 5armer open a profit earning QAskari @ver 3reen AccountQ "ith the branch. A special che,ue book is issued to the farmer. 0evolving credit limit as Q@ver 3reen Agri 5inanceQ is available to the farmer against security i.e mortgaged charge on agri land through Cari 'ass Book. Fassle free, automatic rene"al upon adjustment of entire principal amount "ith mark+up once in a year. he account is farmer friendly "hich benefits the farmers both "ays. $f the account is in credit, it earns profitR other"ise it provides instant finance, to the farmer for his agriculture needs.
Askari Commercial Bank Ltd. he mark+up is charged for the actual days the finance is utili#ed.
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'rofit on credit balances "ill be paid on half yearly basis as declared by the bank on 'L& savings accounts.
*S.*RI .ISS*N TR*CTOR FIN*NCE

raditional modes of cultivation via Bullocks, Camels, horses etc can no longer keep pace "ith the demands of present times due to manifold increase in the population. 'o"er in the form of modern technology is therefore the need of the hour. o meet this emergent re,uirement, Askari Bank has launched a Askari 9issan 5inance to bring po"er to the fields. +a%ient $eatures of the Pro"ram are5 his program has been designed to benefit the o"ner as "ell as non+o"ner farmers. he farmer "ill have privilege of availing non+funded facility at a reduced cost under this program on account of more e,uity participation. Although the facility is available for a period of five years. Fo"ever, good farmer bonus "ill be available to the borro"er in case the loan is repaid as per terms of sanction. 'riority in delivery of tractor "ill be given by manufacturer as per arrangements "ith the bank. he farmers life K tractor "ill be insured against contingencies, "hich "ill provide comfort and piece of mind. ractor
*S.*RI .ISS*N **B)*SHI FIN*NCE

Agriculture farming is impossible "ithout ade,uate "ater. 7e can combat the prevalent "ater scarcity by harnessing more natural resources. $ncreased use of mechanical means thus provides a ready alternative. 9eeping in vie" the scarcity of "ater, "hich is the lifeblood of arable lands, Askari Bank has started a program for farmers, to finance installation of ube+7ells (electric, diesel and solar energy units)
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"ater management e,uipments and "ater channel development etc., "hich "ill help farmers to make optimum use of limited "ater resources. +a%ient $eatures of the Pro"ram are5 o facilitate the farmer, to overcome the scarcity of "ater. o develop mechanical "ater resources, sprinkler and drip system etc. o avoid traditional * inefficient modes of irrigation and "aste of available "ater. o manage natural * available resources through "ater management practices.
*S.*RI .ISS*N /IVE STOC. DEVE/O)MENT FIN*NCE

$n order to supplement the income of the farmer, Askari Bank has launched a program enabling the farmer to purchase 1ilch Animals, 3oats, &heep, 'oultry and 5isheries "ithout incurring e!tra e!penditure because of availablility at his farm. Fe "ill be able to get milk, meat and eggs etc., "hich normally do not form part of his diet. his program has the added advantage that besides fulfilling his o"n familys consumption needs he "ill be able to market the surplus and earn additional income. his "ill further improve their cash flo"s to repay their other Loans * 0evolving Credit on due date. +a%ient $eatures of the Pro"ram are5 he program "ill provide regular day to day income to the farmer to meet his o"n consumption and surplus to be marketed. his "ill revive * accelerate and supplement the income generating capacity. $t "ill enhance the repayment capacity of the farmer.
*S.*RI .ISS*N F*RM MECH*NI?*TION FIN*NCE

Beside 'o"er at the farm i.e. ractor, the benefits * advantages of po"er are
ma!imi#ed "ith the use of 1echanical &upport i.e. modern and improved e,uipments "hich essentially complement one another due to their cost effectiveness and time efficiency. Askari Bank has launched an Askari 9issan 5arm
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1echani#ation 5inance for the assistance of the small farmers and provide finance for farm e,uipment, trailer, thresher, drills K rotavators etc. +a%ient $eatures of the Pro"ram are5 8nder this program the farmer "ill get benefit of use of modern agricultural tools, implements and e,uipments "hich are cost and time effective. $mproves per acre yield of agri crops and ,uality of agriculture produce to get good price in the market. Felps to match * compete "ith international standards for e!portable agriculture produce.
*S.*RI .ISS*N F*RM TR*NS)ORT FIN*NCE

A grave handicap that afflicts our farmers is their inability, due to lack of proper facilities, to take their produce to the market through efficient means of transportation. his adversely affects the freshness, ,uality of the product and denies them the desirable 'rice+5etching opportunity. Conversely, they lack mobility to ac,uire much needed inputs essential for their farming needs. %ne can safely conclude that if provided "ith appropriate and speedy transport, the farmer can benefit by enhancing his selling ability and thus increase his income * cash flo". it is pertinent to mention that a number of Banks, Leasing Companies and 'rivate Agencies have geared their marketing efforts to concentrate on and have mainly captured the urban markets. here is no support provided to cater to the transport needs of deserving rural farmers community. Askari Bank true to its commitment has taken the lead to launch Askari 9issan 5arm ransport 5inance. +a%ient $eatures of the Pro"ram are5 o increase mobility and access of the farmer to the markets. o lo"er the burden * cost of transportation against hired transport. o create a"areness of market movements in order to obtain ma!imum price of their produce. his "ill also supplement the income of the farmer "hich "ill ultimately enhance the repayment capacity of the borro"er. $nstitute of Business Administration
Askari Commercial Bank Ltd. Additional income can be generated if used for hired services to the fello" farmers.
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Corporate and Invest&ent Ban!ing Division

he Corporate and $nvestment Banking 2ivisions (CB2 K $B2) are strongly positioned across priority markets "ith a distinct strategy for developing corporate business. %ur strategic frame"ork generates sustainable returns based on strong market presence and financial solutions ranging from debt and e,uity market transactions to syndicate finance, and from transaction banking to corporate finance advisory services. -..: "as challenging year due to historic lo"s in interest rates, particularly for corporate business. he Corporate Banking 2ivision (CB2) undertook a number of dept re+pricing s"ap transactions, aimed at reducing the financial burden of its key client portfolios and also managed advisory and loan arrangement activities. he major ne" relationships cover telecommunications, oil and gas, and chemicals sectors. CB2 has dedicated marketing and support units functioning at 9arachi and Lahore. $n order to enhance focus on relationship management, and service ,uality, more dedicated staff is being assigned. he investment banking activity mainly covers, debt * capital markets, advisory services and trading (both e,uities and derivatives).After the initial start+up phase, the capital market desk, based at 9arachi, increased the volume of capital market related transactions. he corporate and investment banking "ill continue to play a major role in loan syndications, structured financing and debt * capital raising transactions "ith the objective of providing entire range of corporate and investment banking solutions to its valued clients under one umbrella.
*S.*RI M*STERC*RD
NO 5OININ, FEE 7hen you successfully apply for an Askari (asterCard1 "e "ill not charge you any Hoining 5ee. $ts almost like you are getting it for 50@@U
Askari Commercial Bank Ltd. ,/OB*/ *CCE)T*BI/ITY >our card provides you "ith service at thousands of locations in 'akistan, and at
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over -; million establishments "orld"ide. As an added convenience, you "ill have the benefit of receiving your monthly billing in 'ak 0upees, regardless of the currency of purchase. @ABHOUR CUSTOMER SERVICE 7ith Askari MasterCard, you are al"ays a phone call a"ay from the assistance you need. /O1 SERVICE CH*R,ES >our Askari (asterCard provides you the e!perience of revolving your spending at comparatively lo" service charges. $n addition, the same rate also applies to cash advance obtained on your Askari (asterCard3 SU))/EMENT*RY C*RDS FOR YOUR /OVED ONES &ave yourself the inconvenience of applying for a separate Askari (asterCard for your loved ones by re,uesting supplementary cards "hen you apply for your o"n card. >ou "ill receive a consolidated monthly account statement, "hich covers all the cards. his offer is available for your loved ones over 1A years of age. C*SH *DV*NCE F*CI/ITY Cash advance facility is available for Askari (asterCard holders. >ou can get upto A.I of your sanctioned credit limit as cash advance in 'akistan or any"here else in the "orld. he facility is available at all A 1s displaying the Cirrus logo around the "orld and in 'akistan. >ou may also avail this facility at designated branches of Askari Commercial Bank, during banking hours. B*/*NCE TR*NSFER F*CI/ITY 7ith Askari 1asterCard, you can avail an incredible offer of a Balance ransfer at the e!clusive rate of just 1.6IT per month. +A special privilege e!clusively for Askari 1asterCard members. FREE TR*VE/ INSUR*NCE Hust purchase your travel tickets on Askari (asterCard and you are automatically covered under our ravel $nsurance 'lan (in case of personal accident resulting in
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death or permanent disablement) for upto 0s.A,...,...*+ on a 3old Card and 0s.:,...,...*+ on a &ilver Card.
*N*/YSIS OF S*/ES-M*R.ETIN, )ROCEDURES

he aim of marketing for an organi#ation is to meet certain needs, and in profit+ oriented organi#ations to meet those needs profitably. Companies must therefore first define "hich needs, and "hose needs 2emographicR 3eographicR 'sychographicR And product usage.
hey can satisfy. 5or marketing purpose Askari also uses segmentation process on the basis of
T*R,ET M*R.ET
Askari Bank is the only bank "ith its operational head office in the t"in cities of 0a"alpindi+$slamabad, "hich have relatively limited opportunities as compared to 9arachi and Lahore. his created its o"n challenges and opportunities, and forced as $nstitute of Business Administration
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to evolve an out"ard+looking strategy in terms of our market emphasis. As a result, "e developed a geographically diversified assets base instead of a concentration and heavy reliance on business in the major commercial centers of 9arachi and Lahore, "ere most other banks have their operational Fead offices. Fistorically, Askaris core marketing focus for its asset base has been the middle and upper middle business houses (including "holesalers and manufacturers) operating in the large urban centres of 'akistan, "hich are primarily oriented to"ards foreign trade. his segment constitutes significant revenues to the bank. he liability side remains focused on the middle and upper middle class retired and serving government and armed forces personal and mid+si#e business houses. heir corporate banking division "as established in April 1??? "ith the primary focus on servicing large corporates and multi+national companies (1DCs). Benefiting from the banks gro"ing balance sheet si#e, this division B no" gaining momentum and their long+term aim to develop it into an independent.
)RICIN, )O/ICIES-)ROCEDURES-STR*TE,IES
he price "hich is an important component of marketing mi! is named differently inn the base of transaction e!change that it takes place. Askari has to estimate the prices of its services offered. By performing this, it keeps its relations "ith e!tant customers and take ne" ones. he prices in banking have names like interest, commission and e!penses. 'rice is the sole element of marketing variables that create earnings, "hile others cause e!penditure. 7hile marketing mi! elements other than price affect sales volume, price affect both profit and sales volume directly. Askari is very careful in determining its prices and price policies. Because mistakes in pricing cause customers shift to"ard the rivals offering like"ise services. raditionally, Askari is using three methods called Mcost+plusN, Mtransaction volume baseN and Mchallenging leaderN in pricing of their services. hese three strategies are used for different services. $nstitute of Business Administration
Askari Commercial Bank Ltd. 5ollo"ing is given some price lists for different services.
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TR*DE FIN*NCE *: IM)ORTS
B: E9)ORTS
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C: )ostal-Telegra&-Telep%one-S1IFT-Tele2-(a2 + Co#rier C%arges:
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CONSUMER B*N.IN, <Do&estic= REMITT*NCES <Inter ranc%=
BI//S
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C: RET*I/ B*N.IN,
D: *S.*RI M*STER C*RD
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DISTRIBUTION
he comple!ity of banking services is resulted from different kinds of them. services. 1ost banks services are comple! in attribute and "hen this feature joins the intangibility characteristics, offerings take also mental intangibility in addition to physical intangibility. %n the other hand, value of service and benefits taken from it mostly depend on kno"ledge, capability and participation of customers besides he most important feature of banking is the persuasion of customers benefiting from
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features of offerings. his is resulted from the fact that production and consumption have non separable characteristics in those services. hose features of banking services make personal interaction bet"een customer and bank obligatory and the direct distribution is the sole alternative. 2ue to this reason, like preceding applications in recent years, branch offices use traditional method in distribution of banking services. he distribution strategy adopted by Askari is 2irect 2istribution &trategy. 7e believe that "hen "e are in direct contact "ith customers "e are better able to understand "hat they "ant and ho" "e can improve services.
DISTRISUTION NET1OR.
Dation+"ide 2istribution of Branches * 0egions * Areas and %perating 8nits
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*TM NET1OR.
&.Do. 1 Branch * Location Abbottabad ype of Location Branch City ABB% ABA2
Askari Commercial Bank Ltd. ; : 6 / B A ? 1. 11 11; 1: 16 1/ 1B 1A 1? -. -1 --; -: -6 -/ -B -A -? ;. ;1 ;;; ;: ;6 ;/ ;B ;A ;? :. :1 ::; :: Baha"alpur 2 $ 9han 5aisalabad 'eople Colony 3ujran"ala 3ujrat Fyderabad Aabpara Blue Area 5+1. 5+1. * D2C 5+1. $+? &hifa 5+B 1arka# 1obile A 1 5+B Hhelum 9arachi 1ain Clifton &hahra+e+5aisal 2FA Bahadurabad Fydri Badar 9arachi 9arachi &.$. .@ 9orangi Hinnah 0oad Lia,uat Dational Fospital A"ami 1arka# 2olman 1all 1obile A 1 Clifton Lahore 1ain Lahore Cantt 3ulberg LCCF& o"nship &idi,ue rade Center 1illi &hoes 'ace Link 0oad 1obile A 1 Cantt 1ardan 1ingora 1irpur Branch Branch Branch Branch Branch Branch Branch Branch Branch Branch %ffsite Branch Branch %ffsite * Branch 1obile A Branch Branch Branch Branch Branch Branch Branch Branch Branch Branch Branch %ffsite * %ffsite * %ffsite * 1obile A Branch Branch Branch Branch Branch %ffsite * %ffsite * %ffsite * 1obile A Branch Branch Branch
// BAFA7AL'80 2 $ 9FAD 5A$&ALABA2 5A$&ALABA2 38H0AD7ALA 38H0A F>2@0ABA2 $&LA1ABA2 $&LA1ABA2 $&LA1ABA2 $&LA1ABA2 $&LA1ABA2 $&LA1ABA2 $&LA1ABA2 $&LA1ABA2 $&LA1ABA2 HF@L81 9A0ACF$ 9A0ACF$ 9A0ACF$ 9A0ACF$ 9A0ACF$ 9A0ACF$ 9A0ACF$ 9A0ACF$ 9A0ACF$ 9A0ACF$ 9A0ACF$ 9A0ACF$ 9A0ACF$ 9A0ACF$ LAF%0@ LAF%0@ LAF%0@ LAF%0@ LAF%0@ LAF%0@ LAF%0@ LAF%0@ LAF%0@ 1A02AD 1$D3%0A 1$0'80 AH9
hird party 1
hird party hird party hird party 1
hird party hird party hird party 1
Askari Commercial Bank Ltd. :6 :/ :B :A :? 6. 61 66; 6: 66 6/ 6B 6A 6? /. /1 /1ultan %kara %kara Cantt Booth 'esha"ar Cantt Guetta 1ain Guetta Cantt 0ahim >ar 9han A7 'la#a A7 'la#a 'esha"ar 0oad Adyala 0oad &atellite o"n Fyder 0oad Chaklala &cheme $$$ &adi,abad &ahi"al &ialkot &argodha Branch Branch %ffsite Branch Branch Branch Branch Branch Branch Branch Branch Branch Branch Branch Branch Branch Branch Branch 18L AD %9A0A %9A0A Cantt '@&FA7A0 G8@ A G8@ A 0AF$1 >A0 9FAD 0A7AL'$D2$ 0A7AL'$D2$ 0A7AL'$D2$ 0A7AL'$D2$ 0A7AL'$D2$ 0A7AL'$D2$ 0A7AL'$D2$ &A2$GABA2 &AF$7AL &$AL9% &A03%2FA
/B
/A
CORRES)ONDIN, NET1OR.
*#stralia Australia K De" Cealand Banking 3roup Limited ABD A10% Bank DE Ban,ue Dationale de 'aris &A Citibank DA Common"ealth Bank of Australia Fong 9ong Bank of Australia $D3 Bank DE 7estpac Banking Corporation *#stria ABD A10% Bank DE American @!press Bank Ltd Bank Austria A3 Citibank $nternational $nstitute of Business Administration Bra'il ABD A10% Bank DE Citibank DA $D3 Bank DE &tandard Chartered Bank Den&ar! Ba%rain ABD A10% Bank DE Citibank DA Fabib Bank Ltd. &tandard Chartered Bank Bank Austria Creditanstalt C#ech 0epublic as FypoEereinsbank (CC) A& $D3 Bank DE 0aifeisenbank A& C'ec% Rep# lic ABD A10% Bank DE Ceskoslovenska %bchoni Banka A& Citibank A& Commer#bank A3 Ba%a&as Citibank DA &tandard Chartered Bank C$pr#s Cyprus 'opular Bank Ltd. F&BC $nvestment Bank Cyprus
Askari Commercial Bank Ltd. 'lc Creditanstalt A3 $D3 Bank DE &97B &choelerbank A3 0aiffeisen Centralbank Osterreic% <R?B= %berosterreichische Landesbank A3 *rgentina ABD A10% Bank DE Citibank DA Fong 9ong and &hanghai Banking Corporation Ltd. ( he) $D3 Bank DE &tandard Chartered Bank B#lgaria Commercial Bank Biochim Fypovereinsbank Bulgaria 31BF $D3 Bank DE Eg$pt American @!press
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Br#nei Dar#s Sala& Citibank DA Fong 9ong and &hanghai Banking Corporation Ltd. ( he) &tandard Chartered Bank
ABD A10% Bank DE Citibank DA 2en 2anske Bank A*& &parekassen Dordjylland A*&. (&BD) 8nibank A*&
Bank Ltd. Bank of Ale!andria Citibank DA Dational Bank of 'akistan 1ashre, Bank 'sc
Canada ABD A10% Bank Canada Canadian $mperial Bank of Commerce $D3 Bank DE Dational Bank of Canada 0oyal Ban of Canada oronto 2ominion Bank ( he)
Ec#ador ABD A10% Bank DE Citibank DA $D3 Bank DE
*lgeria Ban,ue de l=Agriculture et du 2evelopment 0ural Citibank DA *r&enia
Cayman $slands ABD A10% Bank $nstitute of Business Administration
Finland Leonia Bank 'lc &kandinviska
Askari Commercial Bank Ltd. DE FBC Bank Armenia Hsc . *r# a ABD A10% Bank DE Citibank DA *'er ai>an Fong 9ong and &hanghai Banking Corporation Ltd. ( he) C%ina Banglades% Al Baraka Bank Bangladesh Ltd. American @!press Bank Ltd. Fabib Bank Ltd. &tandard Chartered Bank 8nited Commercial Bank Ltd. @!port $mport Bank Bar ados Citibank DA of China 5ortis Bank DE*&A Fong 9ong K &hanghai Banking $D3 Bank DE Dational Bank of 'akistan &ociete 3enerale ABD A10% Bank DE ADC Banking 3roup Ltd Bank of China China Construction Bank China 1erchants Bank Commer#bank A3 C%ile American @!press Bank Ltd. Citibank DA C%annel Islands ABD A10% Bank DE Citibank DA . Fi>i @nskilda Banken &vanska Fandelsbanken
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ADC Banking 3roup Ltd. France ABC $nternational Bank 'lc ABD A10% Bank DE ADC Bank 3roup Ltd. Ban,ue Dationale 2e 'aris Caisse Central 2es Ban,ues 'opular Citibank DA Commer#bank A3 Credit Lyonnais &A Fabib Bank Ltd. FypoEereinsbank
Askari Commercial Bank Ltd. Corporation Ltd. Belgi#& ABD A10% Bank DE Ban,ue Brussels Lambert &A 5ortis Bank Ltd. ( he) $D3 Bank DE &tandard Chartered Bank &tandard Chartered Bank 8nion de Ban,ues
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Arabes et 5rancaises (8BA5)
)ROMOTION
%ne of the most important element of marketing mi! of services is promotion "hich is consist of personal selling, advertising, public relations, and selling promotional tools.
)ERSON*/ SE//IN,
2ue to the characteristics of banking services, personal selling is the "ay that Askari prefers in e!panding selling and use of them. 'ersonal selling occurs in t"o "ays. 5irst occurs in a "ay that customer and banker perform interaction face to face at branch office. $n this case, "hole personnel, bank employees, chief and office manager, takes part in selling. &econd occurs in a "ay that customer representatives go to customers place. Customer representatives are specialist in banks services to be offered and they shape the relationship bet"een bank and customer.
*DVERTISIN,
Askari Commercial Bank Ltd. Askari has too many goals "hich it "ants to achieve. campaigns and use media. 1. Conceive customers to e!amine all kinds of services that Askari offers -. $ncrease use of services ;. Create "ell fit image about Askari and services :. Change customers attitudes 6. $ntroduce services of Askari /. &upport personal selling B. @mphasi#e "ell service
Bhose goals are for
accomplishing the objectives as follo"s in a "ay that Askari develops advertising
Advertising media and channels that Askari prefers are ne"spaper, maga#ine, radio, direct posting and outdoor ads and E commercials. $n the selection of media, target market is determined and the media that reach this target easily and cheaply must be preferred.
Askari cares about follo"ing criteria for selection of media. 1. 7hich media the target market prefer -. Characteristics of service ;. Content of message $nstitute of Business Administration
Askari Commercial Bank Ltd. :. Cost 6. &ituation of rivals Ads should be mostly educative, image making and provide the information as follo"sJ 1. Activities of Askari, results, programs, ne" services -. &ituation of market, government decisions, future developments ;. he opportunities offered for industry branches "hose development meets national benefits.
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)UB/IC RE/*TIONS
'ublic relations in banking should provideR 1. @stablishing most effective communication system -. Creating sympathy about relationship bet"een bank and customer ;. 3iving broadest information about activities of bank.
CONTRIBUTION IN SOCI*/ EVENTS

As a committed corporate citi#en, Askari Bank contributes to different areas of the social sector in various "ays "hich help improve the ,uality of life in our country. %n %ctober A, -..6, the nation faced its "orst natural disaster. Askari Bank responded s"iftly through a donation of 0s.;. million to the 'resident of 'akistan=s
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0elief 5und for earth,uake victims and also established relief centers at all its branches throughout the country to collect donations in cash and kind. he staff also contributed one to three days salary for direct relief to the earth,uake effectees. Askari Bank thus stood by the nation in its hour of need. 7e also co+ sponsored different charity events organi#ed "ithin the country for tsunami victims. 7e believe in encouraging sports at every level. 2uring -..6, Askari Bank participated in the =5irst All 'akistan &B' 3overnors Cricket ournament= and emerged as the "inners of the regional tournament and runners+up in the all 'akistan tournament. 7e "ere the sole sponsors of the =:/th Dational &"imming Championship= and =/th 7ater 'olo Championship= held in $slamabad. 7e also sponsored, or co+sponsored, several golf and other tournaments around the country. %ther major contributions to the society include the financing for development of parks, roundabouts, gymnasiums, industrial e!hibitions, fundraisers and tourism festivals. 7e co+sponsored a ,uadriplegic for the =De" >ork City 1arathon -..6= "here he represented 'akistan in the &pecial 'ersons category. Fealth issues have been a particular concern to us. Contributing to"ards the campaign against pollen allergy in the Capital city over the past couple of years, Askari Bank again participated in the campaign during the year. 7e have been a regular supporter of 'akistan 5oundation 5ighting Blindness and Al &hifa @ye rust, to assist in their fight against blindness and eye diseases. Askari Bank, in its ,uest for the e,ual rights and empo"erment of "omen, continued to support D3%s like Behbud Association of 'akistan, "hich are "orking on issues related to the "elfare of "omen
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DE*/IN, 1ITH C/IENTS

9no"ing our customers and their needs is the key to our business success. %ur products and services are as diverse as our market segments. %ur client relationship managers are "ell e,uipped and "ell trained to provide the most efficient and personali#ed service to the customers. 7e have structured and syndicated financing arrangements, provided "orking capital and balancing+moderni#ation+replacement (B10) facilities, financed international trade, provided small business loans and cash management services, and developed innovative investment and loans products for the individual savers and households. Askari Bank is proud of its pioneering role in providing the most modern and technologically advanced services to its /..,... relationships. 5ollo"ing are some e!tra facilitiesJ
*S.*RI TE/E C*RE CENTER

%ver the years, Askari Bank has proven its strength as a leading banking sector entity "ith ever+increasing commitment to its clients, through strategic investment in electronic technology. $nstitute of Business Administration
B/
$n an inaugural ceremony in $slamabad, Askari Bank introduced its state of+the+art Call Center called Askari ele Care Center, another dedicated initiative taken by the bank. Lt. 3en. (0) 1asood 'ar"ai#, 1anaging 2irector Army 7elfare rust performed the inauguration. Also present at the ceremony "ere 1r. 9alim+ur+ 0ahman, former 'resident K Chief @!ecutive Askari Bank along "ith distinguished guests, and senior officials of the bank. Askari ele Care Center offers dedicated banking services, "hich provides on+line customer support availability, -: hours a day, B days a "eek offering a variety of services likeJ 'roduct 5eatures and $nformation Balance $n,uiries Account &tatements 8tility Bills 'ayments (@lectricity, ' CL, &ui 3as) 5unds ransfer 5acilities of Blocking or canceling 2ebit Card or 're+paid Card Complaint registration and resolution 7eb Chat @lectronic 1ail handling
his is just another step to"ards ma!imi#ing the customer convenience through value added services and easy accessibility to the banks products by leveraging on technology. Another "onderful service in "hich Askari ele Care Centre has an edge over other competitors is providing "eb chat and instant electronic mail responses. Customers can interact "ith the Customer Care %fficers through "eb chat at """.askaribank.com.pk or through emails if calling in is not an option. 2edicated Call Centre staff immediately responds to customer ,ueries, regardless of the medium used. Askari ele Care Centre is a major for"ard in our ongoing ,uest for achieving e!cellence in customer services.
)*.IST*N FIRST MOBI/E *TM

BB
%ver the years, Askari Bank has proven its strength as a leading banking sector entity "ith ever+increasing commitment to its clients, through strategic investment in electronic technology. $n an inaugural ceremony at a local hotel in 0a"alpindi, Askari Bank introduced 'akistan=s first 1obile A 1, another pioneering initiative taken by the bank. Adjutant 3eneral of 'akistan Army and Chairman, Askari Bank, Lt. 3en. 7aseem Ahmed Ashraf, F$ (1) performed the inauguration. Also present at the ceremony "ere Lt. 3en. 1asood 'ar"ai#, 1anaging 2irector Army 7elfare rust, 1r. 9alim+ ur+0ahman, former 'resident K Chief @!ecutive Askari Bank along "ith general officers, other distinguished guests, and senior officials of the bank. Askari Bank=s 1obile A 1 literally brings the A 1 to the customer=s doorstep. his is just another step to"ards ma!imi#ing the customer convenience through the value added services and easy accessibility to the bank=s products by leveraging on technology. he fully net"orked 1obile A 1s "ill visit various areas in the major cities in 'akistan, halting at regular and pre+determined stops for regular periods of time, before running back to the base branches in the evening. Do" the customers "ould have access to services of Askari Bank at various places in the major cities of 0a"alpindi*$slamabad, Lahore K 9arachi "here the A 1s are being launched. Askari Bank=s 1obile A 1 has the most advanced features, "hich provides its high security, convenience, and mobility. he A 1 is connected to the Bank using a &iemens 1C;6i 3'0& 1odem. As part of the security features, the mobile A 1 "ill have 3uards in addition to t"o security cameras installed in it. he mobile unit is designed to "ork "ith multiple po"er sources making it possible to operate under different conditions, both in 8rban and 0ural areas. he A 1 "ill provide the follo"ing servicesJ Cash 2ispensing Cash and Che,ue (@nvelope) 2epositing Balance @n,uiry 5unds ransfer Bills 'ayment $nstitute of Business Administration
Askari Commercial Bank Ltd. 1ini &tatement
BA
Askari Bank is fully committed to providing its customers the latest and the best of e+banking services.
*CCOUNTIN, )ROCEDURES
he accounting procedure for a bank is based on vouchers. A voucher is a record for each and every transaction. Any payment made or any amount deposited is recorded through vouchers. 5rom all the departments all the vouchers are transferred to accounts department "hich is responsible to maintain books of accounts. Any transaction "ithout a proof is treated as fugue. here are five accounting heads Assets Liabilities 0evenue @!pense @,uity
But "e are studying a branch of bank, in "hich there is no e,uity. @ach branch is independent and at the closing banks inform about their position to head office.
Askari Commercial Bank Ltd. Do" "e "ill discuss different accounts maintained under four heads.
B?
/I*BI/ITIES
Deposits
Agri finance production 8ni,ue deposit account Ealue plus Call deposit 5oreign currency account Current deposit 5$&2A account A&2A account 'L& term deposit Askari bachat certificateV Askari faida account 'L& notice deposit
Bills )a$a le
'ay order, 'ay slip, 2emand draft and elegraphic transfer payable Cash management, clearing Local bills for collection 5oreign bills for collection
)rovisions
'rovision for profit on deposits 'rovision for depreciation and amorti#ation 'rovision for leased assets 'rovision for other e!pense
Ot%er lia ilities

&undry creditors
Askari Commercial Bank Ltd. Banker liability acceptance Bank liabilities for Letter of credit and letter of guarantee
A.
*SSETS
5or a bank all the assets re its advances and inome on hand, cash in hand and all the accounts of bank "ith other banks. 5ollo"ing are the assets of Askari Commercial Bank.
0#ic! assets
Cash in hand Cash in A 1 $ncome from 'rofit and loss account in hand $ncome from 5oreign currency in hand Balance "ith &tate Bank of 'akistan Balance "ith Dational bank of 'akistan 2ue from treasury 1ain office account (all the transactions "ith other branches is through main office)
*dvances
Ask smartcash finance Askari business 5inance Agri finance development Don+farm agri finance erm financing &taff financing Cash financing 5inance against import merchandise
Bills Receiva le
Askari Commercial Bank Ltd. Acceptance purchased 'ayment against documents 5inance against foreign bills Local bills purchased
A1
Fi2ed *ssets
5urniture Leased assets
Stoc!s
&tock of stationary &tamps on hand &tock of pri#e bonds
Ot%er *ssets
S#spense acco#nt 5ollo"ing are the e!ample of amounts debited or credited from suspense account. &uspense account might be a debit account or a credit account. 2emand draft paid "ithout advice Any e!pense paid "ithout passing the voucher i+e stamp duty is not paid Any amount "rongly recorded 'enalties imposed by &tate bank Cash in transit 1ark up recoverable Clearing local bills lodged Clearing foreign bills lodged Customer liability against letter of credit and letter of guarantee
REVENUE 0evenue is the income from all the sources. $t is credited. 5ollo"ing are the income of Askari.
Askari Commercial Bank Ltd. $ncome from treasury and money market 1ark up on head office account and account "ith &tate bank 1ark up on advances @!change earnings (import and e!port bills) Commission (remittance inland and foreign) Commission on letter of credit and letter of guarantee Commission on 'ay order, demand draft issued 0ecovery of postal charges 0ecovery of courier charges 0ecovery of tele! charges 0ecovery of misc. earnings &ervice charges of inter branch transaction &ervice charges for che,ue book issuance &ervice charges for debit card issuance 'rocessing charges
A-
E9)ENSES
All the e!penses especially entertainment e!pense are controlled by accounts department. 5ollo"ing are the e!penses recorded in books of account. 'rofit paid 1ark up on main office paid Basic salary paid to employees &pecial pay Leave encashment @!pense of leave fair assistance Bonus Fouse rent 2earness allo"ance 8tility allo"ance 7ashing e!pense $nstitute of Business Administration
Askari Commercial Bank Ltd. &pecial technical allo"ance %ther staff cost &taff training 0ent and rates @lectricity and fuel elephone, fa! and tele! charges 2epreciation and amorti#ation 0efreshment &tationary
A;
*CCOUNTIN, )O/ICIES
he summary of the accounting policies of Askari is as follo"sJ
C*SH *ND C*SH E0UIV*/ENTS4
A:
5or the purpose of cash flo" statement, cash and ash e,uivalents comprise balances "ith less than ?. days maturity including Cash and balances "ith treasury banks Balances "ith other banks REVENUE RECO,NITION4 1ark up* return on advances and investments are recogni#ed on accrual basis. 5ee, commission and brokerage e!cept income from guarantee are accounted for on receipt basis. /ENDIN, TO FIN*NCI*/ INSTITUTIONSJ hese are stated at cost less provision for bad and doubtful debts. he provisions are made in accordance "ith re,uirements of the prudential regulations issued by &B'. INVESTMENTS4 he investments of the bank are classified into the follo"ing three categoriesJ Sec#rities Held For Trading4 hese are investments ac,uired principally for the purpose of generating profits from short+term fluctuations in price or dealers margin: Sec#rities Held To Mat#rit$4 hese are investments "ith fi!ed or determinable payments and fi!ed maturity and the bank has the positive intent and ability to hold them till maturity. *vaila le For Sale4 hese investments don=t fall under the trading or held to maturity categories. $n accordance "ith the re,uirements of &B' ,uoted securities are valued at &ar!et valued at market values and surplus*deficit arising thereon is kept in a separate account sho"n in the balance sheet belo" e,uity. 8n,uoted securities are stated at cost less provision for impairment. 3ain or losses on disposals during the year are taken to profit and loss account. ST*FF RETIREMENT BENEFITS4 $nstitute of Business Administration
Askari Commercial Bank Ltd. De(ined Bene(it )lan4
A6
he bank operates an approved funded gratuity scheme for officers and e!ecutives. Contributions to the funds are based on the actuarial valuation. De(ined Contri #tion )lan4 he bank operates a recogni#ed provident fund for all its permanent employees to "hom e,ual monthly contributions are made by both the bank and the employees at the rate of A.;;I of basic salary.
FOREI,N CURRENCIES4 Assets and liabilities in foreign currencies are translated into 'ak 0upee at the rates of e!change appro!imating those prevailing at the balance sheet date. 5oreign currency transactions are converted at the rate prevailing on the transaction date. 5or"ard contracts other than contracts "ith &B' relating to foreign currency deposits are valued at for"ard rates applicable to the respective maturities of the relevant foreign e!change contract. 5or"ard purchase contracts "ith &B' relating to foreign currency deposits are valued at the spot rate prevailing on the balance sheet date. he fee payable on such contracts is amorti#ed over the terms of the contracts. @!change gains and losses are included in income currently. O)ER*TIN, FI9ED *SSETS *ND DE)RECI*TIONJ Capital "ork in progress is stated at cost. )ropert$ and E"#ip&ent4 %ffice premises are sho"n at cost*revalued amount less accumulated depreciation. 2epreciation is charged to income applying the straight+line method. 1aintenance and normal repairs are charged to income as and "hen incurred. 1ajor rene"als and improvements are capitali#ed. 3ains or losses on disposals of fi!ed assets are taken to profit and loss account. $nstitute of Business Administration
Askari Commercial Bank Ltd. Intangi le *ssets4
A/
hey are stated at cost less accumulated amorti#ation. he assets are amorti#ed using the straight+line method over their useful life. Ta2ation4 a!ation charged in the accounts is based on the ta!able income at the current rates of ta!ation. he bank accounts for deferred ta!ation on timing differences using the liability method.
R*TIO *N*/YSIS
Do" our concern has been "ith introducing the various financial ratios, e!plaining their uses in analysis and o"nership the trio for our sample co. $t is important to compare the financial ratios and financial figures for a give co. over a time in this "ay the analyst is able to detect any improvement or determination in a firms financial conditions and performance.
AB
o illustrate this "e select the financial information for a company for different years and make the comparison bet"een different years the ho" much improvement is made by the co or "hat is the performance of co during this period in relating to the previous year.
M*R.ET R*TIOS Dividend per S%are
Dividend )er S%are
2ividend
AA
C
Years @88D @88A @88E Dividend --/,.6;... -61,1B.... --A,;;/...
Dumber of shares Dividend )er S%are 1.6 -... -... 2ividend per share is the indication of the ho" much "ould
Dividend Per Share
N#& er o( s%ares 16.,B.1,/A: 1-6,6A:,B;B 11:,1/B,?:;
Dividend Per Share 2.5 2 DPS 1.5 1 0.5 0 2005 2004 Years 2003
investor received $t is per as
be
form company. announced
share in annul general meeting by the share holders. $t is not true indicator of the profit because shareholders
may receive about and -..6.
more or less than the actual profit. $t is same in the year -..:
Earning )er S%are
Earning )er S%are
Det 'rofit After a! B 'reference 2ividend Dumber of shares
Askari Commercial Bank Ltd. Years @88D @88A @88E Net )ro(it -,.-1,??/... 1,?-;,.:.... 1,1.;,./6... N#& er o( s%ares 16.,B.1,/A: 1-6,6A:,B;B 11:,1/B,?:;
A? Earning )er S%are 1;.:1 16.;1 ?.// $t sho"s that ho" much company is earning "ith respect to number of ordinary shares. $t sho"s that
Earning Per Share
Earning Per Share 18 16 14 12 10 8 6 4 2 0 2005 2004 Years 2003
EPS
ho" much investor is earning. year he earning is ?.// per share of Askari of -..; rupees per share and in year -..: it is
16.;1 this increase due to increase in profit but also there is increase in number of shares, but "ith relatively lesser members. $n year -..6 it is 1;.:1 rupees although it sho"ing decrease in ratio but in actual there is a increase in profit and also number of shares. But increase in number of share greater.
Dividend Yield Ratio

2ividend 'er &hare 1arket Ealue 'er &hare
1..
Years @88D
Dividend )er S%are 1.6
Mar!et Val#e )er S%are 1-/.A
Dividend Yield Ratio 1.1AI
Askari Commercial Bank Ltd. @88A @88E -... -... ?: 61.6 -.1-I ;.AAI
?.
Dividend Yield Ratio 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2005 2004 Years 2003
&hareholders are the real o"ner of the company and they are interested in real sense
Dividend yield
in them yield the
the as ratio
earning dividend. dividend to be
distribute and paid to herefore
calculated to evaluate relationship
bet"een dividend per share paid and market value of the share. $n year -..; dividend in year ratio of Askari is ;.AAI. $n year -..: it is decrease to -.1-I. $ts only due to decrease in dividend and also market value of the save is increase. $n year -..6 it is 1.1AI. $t is reduced because company is paying lo" dividend. Although there is increase in market values of the share but the dividend decrease is effective mostly.
)rice Earning Ratio
)rice Earning Ratio
1arket 'rice 'er &hare @arning 'er &hare Earning )er S%are 1;.:1 16.;1 )rice Earning Ratio ?.:/ /.;-
Years @88D @88A
Mar!et Val#e )er S%are 1-/.A ?:
Askari Commercial Bank Ltd. @88E 61.6 1;.AA ;.B1
?1
Price Earning Ratio 10 Price Earning Ratio 8 6 4 2 0 2005 2004 Years 2003 Price Earning Ratio
$t is ratio "hich sho"s a relationship bet"een caring per share and market ratio per share. $t is just opposite to earning yield ratio it is increasing by year by year to but fluctuation the of fluctuation is also due market value of share.
Boo! val#e per s%are
Boo! Val#e )er S%are
&hareholders @,uity Dumber of %rdinary &hares
Years @88D @88A @88E
S%are%olders; E"#it$ A6AB...... /.1/...... 6.:B......
N#& er o( s%ares 16.,B.1,/A: 1-6,6A:,B;B 11:,1/B,?:;
Boo! Val#e )er S%are 6/.?A :B.? ::.-1
?-
Boo !al"e Per Share 60 40 20 0 2005 2004 2003 Years Boo !al"e Per Share
$t is a relationship bet"een business ordinary business. Askari net"ork and no share of of of
Book Value Per Share
he values of having
increasing trend year by year. 7e can see that is also due increase a no of share every year.
Dividend )a$ o#t Ratio
Dividend )a$o#t Ratio
2ividend 'er &hare @arning 'er &hare
1..
Dividend Pa#o"t Ratio 30.00% Dividend Payout 20.00% 10.00% 0.00% 2005 2004 2003 years Dividend Pa#o"t Ratio
Dividend )er S%are 1.6 -... -...
Earning )e 1;.:1 16.;1 ?.//
$t is the ratio "hich sho"s that ho" much investor are
?;
recovering trend every year. But is not all due to any reason but it is only due to the policies of dissectors.
?:
/I0UIDITY R*TIOS C#rrent Ratio

C#rrent Ratio
Current Assets Current Liabilities
C#rrent *ssets C#rrent /ia ilities 1.A.:B?AB A16;1-6. A/BA/A16 B.AA611; /;;B;;/666A::A-
C#rrent Ratio 1.;; imes 1.-- imes 1.1: imes
$"rrent Ratio 1.35 1.3 Current Ratio 1.25 1.2 1.15 1.1 1.05 1 2005 2004 Years 2003 $"rrent Ratio
$t is the representative of short term li,uidity of a firm. he standard for this ratio 1J1 and in the ($A&). he standard is -J1. 7hen "e see the current ratio of Askari then "e on see that in year -..; it is part ahead from standard and in
year -..: and in year -..6 it is also near the standard or it is statistics of %rgani#ation.
?6
Earning *ssets to Total *ssets

@arning Assets otal Assets
Earning *ssets to Total *ssets
Earning *ssets to Total Years @88D @88A @88E Total *ssets 1:6,.??,?.B 1.B,1/B,6:. A6,;A/,?.Earning *ssets 1-1A6B;;1 A?:.-;AB B-/6-A.6 *ssets ..A;?A imes ..A;:imes ..A6 imes
Earning %&&et& to 'otal %&&et& 0.86 0.85 0.84 0.83 0.82 2005 2004 Years 2003
@arning assets of a bank are cash, lending to other banks and investment. hese are the assets other than advances.
Earning %&&et& to 'otal %&&et&
he earning assets are of very small ratio in the total assets and this ratio is not changing.
/oan To Deposits
?/
/oan To Deposits
Loans 2eposits
/oans A6?BB... /?A;A... ::BBA...
Deposits 11AB?6... A;;1?... /1/6B...
/oans to deposits Ratio ..B..A;A ..B-/ imes imes imes
(oan& to de)o&it& Ratio 0.85 0.8 0.*5 0.* 0.65 2005 2004 Years 2003
$t is the most important ratio for a bank as all the bank profits are major based on loans
(oan& to de)o&it& Ratio
and deposits. 7e can see that for every one rupee deposit loan is given "ith the ratio B. or A.. $t is good but it needs to be improved as increasing loans is
al"ays good source of earning for a bank.
Financing (#nds to Borro6ed (#nds
Askari Commercial Bank Ltd. 5inancing funds Borro"ed funds
?B
Financing to Borro6ed (#nds
Borro6ed Years @88D @88A @88E Financing (#nds ?/1:?1;B B-1/;-;1 6.6:A;B6 (#nds 1-?;6B.-A ?B1..;6. BB66?//-
Financing (#nds to orro6ed (#nds ..B: imes ..B:; imes ../6 imes
+inancing ,"nd& to -orro.ed ,"nd& 0.*6 0.*4 0.*2 0.* 0.68 0.66 0.64 0.62 0.6 2005 2004 Years 2003 +inancing ,"nd& to -orro.ed ,"nd&
his ratio is increasing year by year and it is good sign. $t sho"s that banks funds against are borro"ing sign. funds
increasing and it is good
D#e (ro& an! to D#e to Ban!
D#e (ro& an! to d#e to an!
2ue from bank T 1.. 2ue to bank
?A
D#e (ro& an! to d#e Years @88D @88A @88E D#e (ro& an! 1.1B--:-;-:A;? 6BB.A:D#e to an! 1.6/-;;A 1;BA1666 16?.;.66 to an! ?/I 1/I ;/I
D"e ,ro/ -an to d"e to -an 120% 100% 80% 60% 40% 20% 0% 2005 2004 Years 2003 D"e ,ro/ -an to d"e to -an
his ratio increased in the year -..6 and sho"s that due from bank is increasing. lending to $t means financial
institutions is increasing.
Coverage Ratio
Interest Coverage Ratio
@arning Before $nterest and a!es $nterest
Years
Interest
Earning Be(ore Interest and Ta2es
Coverage Ratio
Askari Commercial Bank Ltd. @88D @88A @88E ;:/1... ;16A... --1.... :-BA... 111B... 1;A.... 1.-: ..;6 ../-
?? imes imes imes
$overage Ratio 1.4 1.2 Coverage ratio 1 0.8 0.6 0.4 0.2 0 2005 2004 Years 2003 $overage Ratio
Coverage ratio sho" that pay ho" in much ho" sense from to of its company interest
earning for e!ternal borro"ing. Coverage ratio of MAskariN is increasing year by year and it sho"s
the increasing trend. $t is also sho"ing that company is also trying to improve its earning before interest and ta!es.
)ROFIT*BI/ITY R*TIOS
Operating E2pense Ratio
Operating E2pense Ratio
Don markup e!pense 3ross $ncome
1..
Askari Commercial Bank Ltd. Years @88D @88A @88E Non &ar!#p e2pense -6?;A1B 1A:6;1B 1:;B6;1 ,ross Inco&e 6:6-A?A :/AA.6B ;;;?;;1
1.. Operating E2pense Ratio :B.6BI ;?.;/ I :;..: I
0)erating E1)en&e Ratio 50.00% 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2005 2004 Years 2003
%perating ratio of
0)erating E1)en&e Ratio
@!pense ho" up
sho"s non mark
much is the portion e!pense over gross in come. $t should be lo" but "e can see that Askari has high operating e!pense ratio.Although it is lo" in year -..: but
it sho"s again a rising trend in -..6.
Net )ro(it Margin

Det 'rofit After Net )ro(it Margin
a! $nterest earned
1..
Years
Net )ro(it
Interest Earned
Net )ro(it Margin
Askari Commercial Bank Ltd. a(ter ta2 -,.-1,??/ 1,?-;,.:. 1,1.;,./6
1.1
@88D @88A @88E
A,BA.,/?A :,:AB,-./ :,.B;,B16
-;..;I :-.A/ I -B..A I
2et Pro,it 3argin 60.00% 40.00% 20.00% 0.00% 2005 2004 Years 2003 2et Pro,it 3argin
his is the ratio of net profit to net sales it is also e!pressed as percentage the net profit margin of Askari sho"ing decreasing trend year by year. $n year -..; it is -B..AI in year -..6 it is -;..;I it decrease due to the large e!penses due to e!pansion
and in year -..: its increased to :-.A/I. $t is also decreasing in the year -..6 to -;..;I.
*d&in E2penses to Total Deposits

*d&in e2penses to total deposits
Net Profit Margin
@!pense on deposits otal deposits
E2pense on Years @88D @88A deposits -6?1?A6 1A:61B? Total deposits 11AB?:/?. A;;1AB?6
*d&in E2pense to Total Deposits ......--
Askari Commercial Bank Ltd. @88E 1:;/;.: ??-61.1 ..1:
1.-
%d/in E1)en&e to 'otal De)o&it& 0.16 0.14 0.12 0.1 0.08 0.06 0.04 0.02 0 2005 2004 Years 2003 %d/in E1)en&e to 'otal De)o&it&
Askari
has
the
lo"est
admin e!pense ratio. $t "as high in the year -..; because at that time deposits "ere lo" and admin e!pense "as high. $t sho"s that Askari has controlled e!penses. its admin of 2eposits
Askari also increased in the year -..: and -..6.
Total *ssets T#rnover Ratio

Total *ssets T#rnover Ratio
$nterest earned otal Assets
Interest Years @88D @88A earned A,BA.,/?A :,:AB,-./ Total *ssets 1:6,.??,?.B 1.B,1/B,6:.
Total assets t#rnover ratio .../ ...:
Askari Commercial Bank Ltd. @88E :,.B;,B16 A6,;A/,?....6
1.;
'otal a&&et& t"rnover ratio 0.0* 0.06 0.05 0.04 0.03 0.02 0.01 0 2005 2004 Years 2003 'otal a&&et& t"rnover ratio
his ratio sho"s ho" many times in a year you earn on total assets. his ratio is
increasing year to year and /I in -..6. $t is sho"ing trend interest in decreasing -..: as are earning
decreasing in -..:.
Ret#rn on E"#it$
Ret#rn On E"#it$
Det 'rofit &hareholder=s @,uity
1..

35.00% Return on Equity 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%
Net )ro(it -,.-1,??/ 1,?-;,.:. 1,1.;,./6
Ret"rn 0n E4"it#
S%are%olderGs E"#it$ A6AB... /.1/... 6.:B...
Ret#rn On E"#it$ -;.66I ;1.?/I -1.A/I $n real sense ordinary shareholders are the real o"ners of the
Ret"rn 0n E4"it#
company (preference shareholders have a
2005
$nstitute of Business Administration 2004 2003

years
1.:
preference over ordinary shareholders in the payment of dividend as "ell as capital. 'reference shareholders get a fi!ed rate of dividend irrespective of the ,uantum of 'rofit Company). he rate of dividend very "ith the availability of profit in case of ordinary share only. hus ordinary shareholders are more interested in the profitability of the company. 0eturn of e,uity of Askari is sho"ing a changing situation on all given years. $n year -..; the return on e,uity of Askari is -1.A/I, in year -..: it is ;1.?/I. his increase sho"s the ability of the company is improved. Because net profit of the company is 1 half of the previous year. And on year -..6 it again reduce to -;.66I although net profit increase but the shareholders e,uity is also increase so this increase sho"s that company is not utili#ing its funds properly relating to its previous year.
Ret#rn on Invest&ent
Ret#rn On Invest&ent
Det 'rofit otal Assets
F
Ret#rn On Invest&ent 1.;?I 1.B?I 1.-?I
1..
Net )ro(it -,.-1,??/ 1,?-;,.:. 1,1.;,./6
Total *ssets 1:6,.??,?.B 1.B,1/B,6:. A6,;A/,?.-
1.6
Ret"rn 0n 5nve&t/ent 2.00% Return on nvest!ent 1.50% 1.00% 0.50% 0.00% 2005 2004 Years 2003 Ret"rn 0n 5nve&t/ent
$t indicates the 'rofitability on the assets of the firm after all e!penses and ta!es. $t is increasing in the year -..: and sho"ing a decreasing figure in the year -..6. $t means assets are not utili#ed properly.
Non Interest Inco&e to Total *ssets

Non interest inco&e to total assets
Don interest income otal Assets Non interest
Non Years Interest Inco&e @88D @88A 166-6// 1/;;6-A
Total *ssets
inco&e to total assets
1:6,.??,?.B 1.B,1/B,6:.
...1. ...16
Askari Commercial Bank Ltd. @88E ?6;B6; A6,;A/,?....11
1./
2on intere&t inco/e to total a&&et& 0.016 0.014 0.012 0.01 0.008 0.006 0.004 0.002 0 2005 2004 Years 2003 2on intere&t inco/e to total a&&et&
his ratio sho"s ho" much you are earning on the total assets through non mark up income. and -..: his but ratio sho"s is a increasing in the year -..; decreasing trend in the year -..6. $t means non markup income is decreasing.
Non Mar!#p e2pense to Total *ssets

Don 1arkup
Non Mar!#p e2pense to total *ssets
e!pense otal Assets
Non &ar!#p Years @88D @88A @88E e2pense -6?;A1B 1A:6;1B 1:;B6;1
Non &ar!#p e2pense to total assets ...1B ...1B...1/A
1.B
2on /ar ") e1)en&e to total a&&et& 0.01*3 0.01*2 0.01*1 0.01* 0.0166 0.0168 0.016* 0.0166 2005 2004 Years 2003 2on /ar ") e1)en&e to total a&&et&
his ratio is good "hen it is lo". his ratio is increasing for the years -..: and -..6. $t sho"s non mark up e!pense in increasing and it should be controlled.
Ris! *ssets T#rnover

Det interest Ris! *sset T#rnover
income 0isk Assets (Advances)
Years
0.0* 0.06 0.05 0.04 0.03 0.02 0.01 0 2005
Ri&Net %&&et& '"rnover &ar!B#p -
*dvances A6?BB... /?A;A... ::BBA...
@88D @88A @88E
interest inco&e :,6.-,;-: ;,;B.,... -,/?:,1./
Ris! *ssets T#rnover ...6...:A .../.
Ri& %&&et& '"rnover
2004 Years

2003
1.A his ratio is good "hen it is
more. $t sho"s ho" much you are earning on your risk assets. But this ratio for Askari is decreasing in the year -..6 "hen compared to -..;.
Net Margin To Earning *ssets

Det mark+up * interest income @arning Assets
Net &ar!B#p - interest Years @88D @88A @88E inco&e :,6.-,;-: ;,;B.,... -,/?:,1./ Earning *ssets 1-1A6B;;1 A?:.-;AB B-/6-A.6
Net Margin To Earning *ssets ...;/? imes ...;BB imes ...:imes
2et 3argin 'o Earning %&&et& 0.045 0.04 0.035 0.03 2005 2004 Years 2003 2et 3argin 'o Earning %&&et&
Det margin of Askari bank on earning assets is decreasing year by year and it also has very small portion
1.?
Ret#rn On Earning *ssets

Det 'rofit After a! @arning Assets
Ret#rn On Earning *ssets
Ret#rn On Earning Years @88D @88A @88E Net )ro(it *(ter Ta2 -,.-1,??/ 1,?-;,.:. 1,1.;,./6 Earning *ssets 1-1A6B;;1 A?:.-;AB B-/6-A.6 *ssets ...1// imes ...-16 imes ...16imes
Ret"rn 0n Earning %&&et& 0.03 0.02 0.01 0 2005 2004 Years 2003 Ret"rn 0n Earning %&&et&
$t sho"s ho" much is contributed to net profit from earning assets. As "e can see that earning assets are not contributing much but this proportion is ,uite sufficient relative to their portion assets. in the total
11.

Det mark+up * interest income @arning Assets
Net &ar!B#p - interest Years @88D @88A @88E inco&e :,6.-,;-: ;,;B.,... -,/?:,1./ Earning *ssets 1-1A6B;;1 A?:.-;AB B-/6-A.6
Net Margin To Earning *ssets ...;/? imes ...;BB imes ...:imes
2et 3argin 'o Earning %&&et& 0.045 0.04 0.035 0.03 2005 2004 Years 2003 2et 3argin 'o Earning %&&et&
Det margin of Askari bank on earning assets is decreasing year by year and it also has very small portion
111
Inco&e Ta2 to pre ta2 pro(it
Inco&e ta2 to pre ta2 pro(it
$ncome a! 're ta! profit Inco&e ta2 to pre ta2 pro(it ..-? ..;.:1
Inco&e Ta2 A;B.A6 ?1?B.. B?/B;6
)re ta2 pro(it -A6?.A1 -A:-B:. 1?.1A..
5nco/e ta1 to )re ta1 )ro,it 0.45 0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 2005 2004 Years 2003
he above ratio sho"s that ta! burden is constantly decreasing as CB0 has reduced the ta! rates company. for banking
5nco/e ta1 to )re ta1 )ro,it
11-
/oan /oss Coverage Ratio

Det 'rofit Before a! L /oan /oss Coverage Ratio
'rovision Against Loans Bad 2ebts
Net )ro(it Be(ore Ta2 H Years @88D @88A @88E )rovision *gainst /oans ;:?B/-A ;1-.1;A --1.;-A Bad De ts /.1,??;16,:B1 ;.A,6-A
/oan /oss Coverage Ratio 6.B?/B imes ?.A?.: imes B.1/: imes
(oan (o&& $overage Ratio 15 10 5 0 2005 2004 Years 2003 (oan (o&& $overage Ratio
his ratio sho"s ho" much cut ion is available against loss to loan i+e bad debts. his ratio is good in the year -..: and not satisfactory in the year -..6.
11;
C*)IT*/ *DE0U*CY R*TIOS

De t E"#it$ Ratio
otal 2ebts &hareholder=s @,uity
De t E"#it$ Ratio
S%are%olderGs E"#it$ A6AB... /.1/... 6.:B...
Total De ts 1;/,61-,:BB 1.1,161,::A A.,;:.,./.
De t E"#it$ Ratio 16.A? imes 1/.A imes 16.? imes
De-t E4"it# Ratio 1* 16.5 16 15.5 15 2005 2004 Years 2003
2ebt e,uity ratio sho"s a relationship of shareholder e,uity and total debts of a
De"t Equity Ratio
De-t E4"it# Ratio
company. e!ternal of
$t e,uity is of
is a
relationship of internal and company. 2ebt e,uity ratio Askari sho"ing increasing trend. $t means that company is trying to
relaying on its o"n resources.
11:
De t to Total *ssets Ratio

otal 2ebts otal Assets
De t to total *ssets ratio
Total assets 1:6,.??,?.B 1.B,1/B,6:. A6,;A/,?.-
Total De ts 1;/,61-,:BB 1.1,161,::A A.,;:.,./.
De t to total *ssets ratio ..?: ..?: ..?: imes imes imes
De-t to total %&&et& ratio 1 0.6 0.8 0.* 0.6 0.5 0.4 0.3 0.2 0.1 0 2005 2004 Years 2003
his ratio sho"s ho" much assets are financed through debts. his ratio for bank is same over years and ?:I assets are
De-t to total %&&et& ratio
financed through debt.
116
Capital F#nds to Total *ssets

Capital 5unds otal Assets
Capital (#nds to total assets
Capital (#nds to total Years @88D @88A @88E Capital (#nds A6AB... /.1/... 6.:B... Total *ssets 1:6,.??,?.B 1.B,1/B,6:. A6,;A/,?.assets ...6? imes ...6/ imes ...6? imes
$a)ital ,"nd& to total a&&et& 0.0565 0.056 0.0585 0.058 0.05*5 0.05* 0.0565 0.056 0.0555 0.055 0.0545 2005 2004 Years 2003
he
greater
the
ratio
sho"s the good financial position. increasing

$a)ital ,"nd& to total a&&et&
his ratio is but here the is
increasing rate in not much to year. high. minor change from year
Capital F#nds to Total Deposits
Askari Commercial Bank Ltd. Capital 5unds otal deposits
11/
Capital (#nds to total deposits
Capital (#nds to total Years @88D @88A @88E Capital (#nds A6AB... /.1/... 6.:B... Total deposits 11AB?:/?. A;;1AB?6 ??-61.1 deposits ...Bimes ...Bimes ..61 imes
$a)ital ,"nd& to total de)o&it& 0.6 0.5 0.4 0.3 0.2 0.1 0 2005 2004 Years 2003 $a)ital ,"nd& to total de)o&it&
he
greater
the
ratio
sho"s the good financial position. his ratio is decreasing in the year -..: and -..6 because in these years deposits of bank increased but capital did nit increase.
E"#it$ To Total *ssets
Askari Commercial Bank Ltd. &hareholders @,uity otal Assets
11B
E"#it$ To Total *ssets
S%are%olders; E"#it$ A6AB... /.1/... 6.:B...
E"#it$ To Total *ssets ...6? ...6/ ...6? imes imes imes
E4"it# 'o 'otal %&&et& 0.06 0.058 0.056 0.054 2005 2004 Years 2003 E4"it# 'o 'otal %&&et&
his ratio sho"s ho" much assets are financed through e,uity and there is very small portion financed by e,uity and it is not changing enough over the years.
)ORTFO/IO M*N*,EMENT R*TIO

*dvances To Total *ssets
*dvances To Total *ssets Advances
11A
otal Assets
*dvances A6?BB... /?A;A... ::BBA...
*dvances To Total *ssets ..6? ../6 ..6his ratio sho"s percentage of advances over total assets. his ratio for bank is increasing and it means imes imes imes
%dvance& 'o 'otal %&&et& 0.* 0.6 0.5 0.4 0.3 0.2 0.1 0 2005 2004 Years 2003 %dvance& 'o 'otal %&&et&
in 1 rupee assets 6? paisa are advances. his ratio is good "hen above 6.I.
Invest&ent To Total *ssets

$nvestment otal Assets
Invest&ent To Total *ssets
11?
Invest&ent To Total Years @88D @88A @88E Invest&ent -6B.A1?: 1B-;?16/ --1.::-6 Total *ssets 1:6,.??,?.B 1.B,1/B,6:. A6,;A/,?.*ssets ..1B imes ..1/ imes ...imes
5nve&t/ent 'o 'otal %&&et& 0.18 0.16 0.14 0.12 0.1 0.08 0.06 0.04 0.02 0 2005 2004 Years 2003
his ratio sho"s percentage of investment over total assets. his ratio for bank is increasing and it means
5nve&t/ent 'o 'otal %&&et&
in 1 rupee assets 1B paisa are advances. his ratio is not good in the year -..;.
/ending to (inancial instit#tions To Total *ssets

Lending to financial
/ending to (inancial instit#tions To Total *ssets
institutions otal Assets
1-.
/ending to (inancial /ending to (inancial Years @88D @88A @88E instit#tions 1.1B--:-;-:A;? 6BB.A:Total *ssets 1:6,.??,?.B 1.B,1/B,6:. A6,;A/,?.instit#tions To Total *ssets ...B imes ...-1 imes .../A imes
(ending to ,inancial in&tit"tion& 'o 'otal %&&et& 0.08 0.0* 0.06 0.05 0.04 0.03 0.02 0.01 0 2005 2004 Years 2003 (ending to ,inancial in&tit"tion& 'o 'otal %&&et&
his ratio sho"s percentage of lending to financial institutions over total assets. his ratio for bank is increasing and it means in 1 rupee assets B paisa are advances. his ratio is not good in the year -..:.
B COMMON SI?E *N*/YSIS

$n addition to the financial ratio analysis overtime, it is often useful to e!press balance sheet and income statement items as percentage. he percentage can be related to be totals or total net sales or to sum base years or to total assets, called common si#e analysis, inde! analysis respectively, the evaluation of level and trend in financial statements percentage over time afford the analyst into the underline improvement or deterioration in financial condition and performance.
Askari Commercial Bank Ltd. Do" "e are analysis the common si#e analysis of Askari Bank.
1-1
INCOME ST*TEMENT
1ark up*0eturn*$nterest earned 1arkup*0eturn*$nterest e!pensed Det 1ark up*$nterest income 'rovision against non+performing Loans and advances (0eversal)* 'rovision for impairment in the value of investments
COMMON SI?E @88E @88A 1.. 1.. -:.A?B6 ;;.A//11:A: //.1;;AA61/ B.6B;/-B61B.6B;/-B61. ? B6.1.-: 1 /.1A1?B / ..A:A;; .....16 / B..;.:6 6 /A..B1? / 16.BA/6 1-.AA1?B/-A ..?-::1:-.-.B/?1/BB.1 . /.A;/A./-.A -;.:1-;/:;? . ? ..6A/61 :..;;61 1-..;A6 ;.?6A?A ? ;/.:.:1 1.:.:B/
@88D 1.. :A./A??: 61.;1../ B.-B.BA; +..:1/-; . /.A6:661 ::.:6661
Bad debts "ritten off directly Det 1ark up*$nterest income after provisions Non Mar!#p-Interest inco&e 5ee, Commission and brokrage income 2ividend income $ncome from dealing in foreign currencies 3ain on sale of investments %ther income otal non+markup*$nterest $ncome
. 6A.6/.-6B/6
?.6:A6: ..6A-;;B :..6/.6A 1.1;/B;-.;6:?;: 1B./BA/ /-.1;:11
Askari Commercial Bank Ltd. 1 Non &ar!B#p-interest e2penses :1.1-.A Administrative e!penses %ther Charges otal non+markup*interest e!penses ;6.-6BA:-.: ...;.11??-B ;6.-AB?/1?B . )ro(it e(ore ta2ation a!ation + current + defferred )ro(it a(ter ta2ation :/./A://..B -1.::6B6/61 +1.A;AB1:BA6 -B..BB/? ....;.B 6 :1.1-;? / /;.;6-1 /;.;6-1 1?.6-:1 6 ..?B1A? B /;.;6-1 -?./6.6 ...-.A/ -?./B1;/ ;-.:/-B/ ;-.:/-B/ ?.:;/B?; -.-.6AA6 ;-.:/-B/
1--
COMMON SI?E )ROFIT *ND /OSS *CCOUNT

Common si#e income statement is a key point to sho" all e!penditures cost goods sold incomes. $nterest ta!ation and profit and good profit in a percentage to sale here markup earned is the base and "e are greening that ho" much cost co., has to bear for "aving ho" much markup and ho" much co. has to bear for making ho" much markup and ho" much co. earning profits.
Mar! Up Interest e2penses

1ark up interest e!penses are sho"ing decreasing position in the year -..6. But there is appoint to be noted that although interest e!penses are decreasing, provisions against mark ups are also increasing. "hen your e!penses are decreasing. here is no need to increase the provisions
1-;
Non Mar! #p Interest Inco&e

Don mark up interest income has very small but important contribution to"ards profits. he main item is commission and brokerage "hich in increasing in the year -..:, but sho"ing decreasing trend in the year -..6. Although it is small portion but very important and need to be emphasi#ed.
Non Mar! #p Interest E2pense

$n the non mark up interest e!pense major portion of e!pense is administrative e!pense and it is first increasing as all the activities in those years are also increasing but decreasing in the year -..6. $t is good sign but look at the profits "hich are also sho"ing decreasing trend and it is proportionate to the profits.
)ro(it e(ore Ta2ation

'rofit before ta!ation is the pure profit of company before ta!es it is the profit "hich company earns from its operation. 'rofit before ta! having a changing tendency firstly it is increasing in t"o years and then decreased. his situation may e!ist in any company but this situation should be small if "e see the profit before ta! of Askari "e can see that it is changing but "ith large limits. $t means that the company is facing problems regarding mark up earned.
)ro(it a(ter Ta2ation

'rofit after ta!ation is also sho"ing decreasing trend in year -..6 and it is not good sign. here might be any problem "ith mark up earned.
1-:
B*/*NCE SHEET
COMMON SI?E -..; -..: *ssets Cash and balances "ith treasury banks Balances "ith other banks Lendings to financial institutions $nvestments Advances %ther assets B.A-.?.;.1.;B16 /.B6A:/; -6.AAB;B 6-.::.B/ 1./B..-? A.1B/B? 1 :.6-;// : -.1/?;6 1/..A/1 B /6.-/.: B 1.;/-.A A -.:-1:/ : 1.. 1.1:6.Bills payable Borro"ings from financial institutions 2eposits and other accounts &ub+ordinated loans Liabilities against assets subject to finance lease %ther liabilities 2eferred ta! liabilities otal Liabilities &hare capital 1 1? B. . 1 1 ?: 1 ; 1-.A6?A BB.B:/; ..?;;11 A ...1;-1 1.1?B1B ; ..:?1/B ?:.;A/B 1.1B1A6 ..?./B:.B/ B.-B?;66:6A A1.AB.?/-1? -../B;;:1?? ....1..661: 1.6/6;??;:? ..;?.?1:B??:..A1B1--/ 1..;A/.B1:: A.1.?6;;1.? ;.A-6.6-B/B..1.6.A?B; 1B.B1B6A1;1 6?.-6;6A;A1 1.AA;-A-;?-.-..:6B/:B 1.. -..6
%perating fi!ed assets -.;1AB/otal Assets 1.. /I*BI/ITIES H O6nersG E"#it$
Askari Commercial Bank Ltd. 6 :..-A66 0eserves ; 6 &urplus on revaluation of assets E"#it$ H /ia ilities 1 1.. ; 6.-..:. A ..:1;;1 ? 1.. :..:..-/.-6..BA/;;1/6 ..A;?/6:6B 1..
1-6
Co&&on Si'e *nal$sis o( Balance S%eet

Common si#e analysis of balance sheet sho"s a perfect and absolute situation of assets and liabilities of balance sheet or "e can say it sho" or it analy#e all assets and liabilities of a firm "ith respect to total assets or total viabilities "hich "e have considered it as base "hich is 1... Do" "e are going to analysis the balance sheet items one by one in common si#e analysis.
*ssets
Current Assets are the most li,uid form of the assets or "e can say "hich could turn able into cash "ithin the period of 1 year. 7hen "e analy#e the current assets of Askari, then "e can see that these are increase year by year but "ith small portion. &o "e can also say that these are e,ual about all in three years. 7e are going to analy#e the current assts in common si#e analysis then "e can see that these are going to decrease year by year. 5orm this "e can conclude that the current assets are decreasing "ith according to the total assets "hich are not healthy sign. &o there is need to improve the policies regarding the current assets so as to this could be better "ith regarding to total assets. 5i!ed assets of a company are the permanent property or assets of a company. 7hich may remain up till the "hole life of a companyS he increase or decrease in the value of fi!ed assets changes the productivity of a company. $nvestments are sho"ing decreasing trend "hich is not good sign and it might possible that the investments are no longer re,uired.
1-/
he three important assets are first three assets and these three assets are sho"ing increasing portion in total assets and it is good sign. Advances sho" the highest proportion in the total assets and it is al"ays good for a bank. he non current assets of MAskariN are sho"ing great increasing trend "hich sho"s that company is trying to increase its productivity and try to e!tend its business. But in common si#e analysis the situation is also about some. $t mean that company fi!ed assets are increasing for e!tension of productivity and business area. But this increase is very small and it is not very important in banking sector.
C#rrent /ia ilities

Current liabilities are the most li,uid form of liabilities or "e can say that these are the liabilities "hich "e have to pay "ithin the period of 1 year. he current liabilities sho" great increase in year -..1 and relatively little in year -..-. But in common si#e analysis the current liabilities are increasing about 1. point "hich is great increase "hich mean company is not recovering its debts properly. But in year -..these is decrease of about : points "hich sho" a little better situation and it sho"s that company is going to change its policies regarding creditors. Don current liabilities or "e can say that these are the e!ternal financing of the company. $t sho"s that ho" much company is using the e!ternal resources for the business. Don current liabilities of M"orld callN are increasing every year. But in common si#e analysis the situation is different, once it is reduce and then again increase it to very little e!tent. $t sho"s that although e!ternal borro"ing of the company is increasing but relating to other, liabilities these are same. his sho"s moderate situation.
S%are capital
&hare capitals and reserves are o"ners e,uity of a company or "e can say these are the o"ned capital elements of the company. here is great dependability of the company on these items because if o"n e!ternal barro"ing "e have to pay interest regularly. But on internal borro"ing these is no need to pay interest or profit and in the year of profit or loss "e can have a option to pay no dividend. &hare capital and reserves of MAskariN sho"ing increase in trend. $t means that company trying to rely on its o"n resources and in common si#e analysis it is $nstitute of Business Administration
1-B
reducing firstly and then increasing. 7hich means that although company increase internal resources but e!ternal borro"ing of the company is also increaseS &o there is need to have a check on these. But as "e all kno" that for a bank business is based on advances and deposits and capital is not very important and as "e can see that its proportion in total liabilities and e,uity is very small.
TREND *N*/YSIS
rend analysis of balance sheet sho"s the situation of companies assets and liabilities in different years "ith relative to previous year for this purpose "e same taken the change base method for one calculation of trend analysis of Askari.
B*/*NCE SHEET
-..; *ssets Cash and balances "ith treasury banks Balances "ith other banks Lending to financial institutions $nvestments Advances %ther assets %perating fi!ed assets 2eferred ta! assets /I*BI/ITIES H O6nersG E"#it$ Bills payable Borro"ings from financial institutions 2eposits and other accounts &ub+ordinated loans Liabilities against assets subject to finance lease 1.. 1.. 1.. 1.. 1.. 1-/..-;; A/./6?A 1;6.1;;/ 1;6.1-1-A:: //.:1B.;B:A 1?-./B1:/A; 1.. 1.. 1.. 1.. 1.. 1.. 1.. 1.. 1;1.-1?: 1A-.?-A1 :..-A6?/ BB.?A?/16/.1? 1.-.;/6: 1;1../B1 1-6.6.A1B/.-.;/:1/ -.?.:-/:-A: 1B/.-/?/;-A 11/.;.;;A-B 1?-...A?A-; 1?1./;1/A6 1/1.-/--6;B 1/?.?;--BBINDE9ED I -..: -..6
;B.?.A?B
;.?./-?1A;:
Askari Commercial Bank Ltd. %ther liabilities 2eferred ta! liabilities otal Liabilities &hare capital 0eserves 8nappropriated profit &urplus on revaluation of assets E"#it$ H /ia ilities 1.. 1.. ;A.///.6 1-6.6.A1./.;6-BB16 1/?.?;--BB1.. 1.. 1.. 1.. 1.. 1.. 1;;.-A: /6.;./A6 1-6.?.:1 11. 16/.::/B 1:-.A6:: -;6.?//;-A: B..;.A/;--/ 1/?.?1A;1/ 1;-.....;6 -1-.:-:A:AB 1AA.AA?1;1
1-A
S%are Capital
&hare capital of Askari sho"s the increasing trend every year. &hare capital of so ltd. &ho"s about same situation every year, in year -..: it is 1-66A:A in the year to -..6 it is raised to 16.B.1A. $f "e analy#e the trend analysis of poses balance sheet "e can see that in the year -..: the share capital increase 1.I and in -..6 it increases about ;-I and it sho"s investment in Askari shares is increasing.
Reserves
0eserves are mainly the part of share holders e,uity if the reserves reserves are increasing impact it is the raise in shareholders fund. $f "e analy#e the balance sheet of so the are continuously increasing every year. on analysis the reserves analysis "e can see that in the year -..: reserves increased by 6/I and in year -..6 reserves are increased 11-I here "e can observe that reserves are continuously increasing it is a good sign for co. it sho"s that cobs profit in increasing comparatively every year b*c reserves acre generating year profits of the company.
/ia ilities
Liabilities sho"ing a different situation in different years, sometimes it increase and sometimes it decrease. he major liability of a bank is deposits "hich are increasing "ith respect to year -..; this increase in the year -..: and -..6 is ;6I and ?-I. %ther liabilities of bank are also increasing "ith ;;I and 1;6I. %ther liabilities are not sho"ing any major increase or decrease.
*ssets
1-?
he assets of Askari are sho"ing different trends and major asset advances is sho"ing increasing trend "ith respect to year -..;. his increase is respectively 6/I and ?-I. Cash is also increasing "ith ;1I and B/I. $nvestment is the asset that sho"s first decrease by -;I and then increase by 1/I. Balance "ith other banks is increasing by A-I and 1.?I. %verall condition is good.
INCOME ST*TEMENT
1ark up*0eturn*$nterest earned 1arkup*0eturn*$nterest e!pensed Det 1ark up*$nterest income 'rovision against non+performing Loans and advances (0eversal)* 'rovision for impairment in the value of investments Bad debts "ritten off directly Det 1ark up*$nterest income after provisions Non Mar!#p-Interest inco&e 5ee, Commission and brokrage income 2ividend income $ncome from dealing in foreign currencies 3ain on sale of investments %ther income otal non+markup*$nterest $ncome Non &ar!B#p-interest e2penses Administrative e!penses %ther provision*"rite offs %ther Charges otal non+markup*interest e!penses @!tra ordinary*unusual items )ro(it e(ore ta2ation a!ation + current + deferred
@88E 1.. 1.. 1.. 1.. 1..
INDE9ED I @88A 11..16.A..?B?? 1-6..AB? A?.?1.16 1-.;;B?:
@88D -16.6A/;.?.?6-; 1/B.-/-? -./.?/6B +11.A:A-
1..
1-A..:16
1/;.//.:
1.. 1.. 1.. 1.. 1.. 1.. 1.. 1.. 1.. 1.. 1..
1;:.?A/A /?.AA/AA 1/..::-6 /;.BA:/A 1B1.-B;B 1-A.:/B11.-:/?: 1-A.;/B1 1:?.:B/; 1...-A.: +6A.---6
16?.B??6 1;6.A.?1 ;16.BB;B B:.-6A6/ 1/-.BAA6 1A1.-??A 1:?.;.B; 1A1.-B-6 1:?.?1./ ?:.A/:6A +-6A./;/

)ro(it a(ter ta2ation 1.. -6B.B1
1;.
-6A.:/
Trend *nal$sis o( Inco&e State&ent

1ark up is the main revenue of Askari and it is sho"ing increasing trend. But look at the mark up e!pense "hich is sho"ing increasing trend "ith greater proportion than the mark up revenue. $n the year -..6 increase in mark up income is 116I and in mark up e!pense it is -.?I. All other e!penses are also sho"ing increasing trend. 'rofit before ta!ation is same for both years. 'rofit after ta!ation is also increasing "ith same ratio. $t is not good sign as base is -..; and there should be more increase in the year -..6.
TR*ININ, )RO,R*MME
JE2perience s%o6s t%at s#ccess is d#e less to a ilit$ t%an to 'eal: T%e 6inner is %e 6%o gives %i&sel( to %is 6or!3 od$ and so#l:K $ selected Askari Commercial bank Ltd. 3ujran"ala for my internship. Askari Bank "as incorporated in 'akistan on %ctober ?, 1??1, as a public limited company. $t commenced operations on April 1, 1??-, and is principally engaged in the business of banking, as defined in the Banking Companies %rdinance, 1?/-. he Bank is listed on the 9arachi, Lahore and $slamabad &tock @!changes and currently its share is the highest ,uoted from among the ne" private sector banks in 'akistan.
1;1
2uring my internship $ "as rotated on different departments. Although $ "as not given full authority to do tasks as it is not e!pected from interns, yet $ gained a lot and by the favor of certain individuals at bank.
FIRST 1EE.
$ "as very e!cited before joining internship. Before this $ "as master of my books but no" it "as the chance to prove myself master of practical life. Although time "as short but $ "as determined to learn something "orthy. 1y first "eek "as on reception. $ think it "as good to be at reception at first as you can judge "ell "hat is a bank all aboutS 7hat kind of customers come into the bankS 7hat is the most "anted task in the bankS 7hat are different departments and the persons "ho deal different tasksS
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$ cannot forget my first day at bank. $ "as confused as it "as my first visit to bank ever. %n reception my duty "as to fill pay+in slips and to receive che,ues to transfer in the accounts. %n reception four types of che,ues are presented to be deposited. 5irst che,ues of Askari Bank 3ujran"ala (same) branch and received by person that make transfer entries on cash department. &econd types of che,ues are of banks branches of 3ujran"ala other than Askari Bank. hird type of che,ues is online che,ues that are of Askari Bank branches other than 3ujran"ala city. hese che,ues are dealt by separate department. 5ourth type of che,ues is of banks other than Askari bank and of branches other than 3ujran"ala city. hese che,ues are he deposited through %BC (%ut"ard Bills for Collection). All the above mentioned che,ues are received on reception and then transferred to particular persons. routine "ork as there is al"ays rush to deposit che,ues. 7hile receiving the che,ues follo"ing points must be considered. he title should be the same on both deposit slip and the che,ue. he che,ue should be a cross che,ue. he che,ue should neither be a stale dated che,ue nor a post dated che,ue. $ really enjoyed "ork on reception as it "as first time $ got chance to observe different types of customers. $ "as in a position to judge "hat their problems are and $ did not face any problem during my internship. $ "as ans"ered each and every ,uestion $ asked. $ felt myself a dumb on my first day at bank but after a fe" days things settled around me and $ felt myself part of the organi#ation. 2uring my "ork on reception $ felt that my trainer "as reluctant to rely on my e!pertise but after some time $ controlled B.I of the "ork on reception. $ joined the bank "hen the bank "as heading to"ards closing. $t "as very kno"ledgeable to be at bank on closing as $ think there "ere variety of "ork and customers near closing. main objective to do this is to make a flo" in the activity and not to disturb the
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%n reception $ "as also a silent observer. $ observed many things happening "rong around me but $ "as not supposed to say anything and $ "as not in the position to say something about $ feel.
SECOND 1EE.
&econd "eek "as about to learn professional attitude. $t "as on account opening department. Account opening is important as an account is a contract bet"een bank and customer. $t "as very interesting "eek. $ developed good intimacy "ith my instructor. %n the first day $ issued che,ue books. $t "as very hard to stamp each and every leaf. But at the end of "eek it "as my favorite task.
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$n account opening $ learnt "hat different kinds of accounts are. All the accounts are categori#ed on the basis of interest rates and their nature. Both foreign currency and 'ak 0upees accounts are opened. erm deposits, call deposits and notice deposits are also offered. he main re,uirement for individual account is D$C and proof for profession and introducer "hich is the account holder of Askari Bank. he bank "as heading to"ards closing and each and every employee "as overburdened. $t is very crucial time for every bank. $ also observed "rong things happening around me. &ome customers come to close their accounts. purpose "as to evade ta!. %ne day a person came to open term deposit. Fe re,uired opening "ith factitious name. hat "as the "ay to hide huge amounts from the eyes of ta! department. $t "as not only one case, many people came to do such factitious tasks. $ started communicating "ith other employees. Do" $ started enjoying my internship. $ "as provided full information about all things $ asked for. %n account opening $ learnt ho" to deal "ith different customers. 2uring this "eek $ got good teacher and $ asked different ,ueries for my tasks and to complete my report. $ got information about organi#ation hierarchy. $ "as lucky to get such support from different people. Any other threat people at bank faced over ne" charges "hich "ould apply from 1 st Huly. $t "as a great threat to the bank. @very customer and employee "as conscious of those charges. &econd "eek "as full of enjoyment and learning. $ must say it "as turning point of my life. he main
TY)ES OF *CCOUNTS
Askari offers different accounts for different customers. 1ost popular accounts are Current Account &aving Account 5$&2A A&2A &alary Account $nstitute of Business Administration
Askari Commercial Bank Ltd. Agriculture Account 5oreign Currency Account
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S)ECI*/ DE)OSITS
Askari pffers special deposits like erm 2eposits Call 2eposits Dotice 2eposits
o issue such deposits is also the responsibility of accounts department.
SC*NNIN, OF SSC*RD
All the forms of accounts "hish are opened by account opening department are sent to cash department for &&card receipt. he $ncharge cash department after scrutini#ing all the forms receives the specimen signature cards. After"ards those &&card are scanned to be available on the system for verification. he account department performs this duty very efficiently as the cards are scanned on daily basis irrespective of "hatever their number is.
THIRD 1EE.
hird "eek "as of responsibility. $ "as on 0emittance and Billing department. $ must say it "as the hard time for my internship. $ took time to understand ho" bills are collected. 7hat are the different types of transfer or payment instrumentsS 5irst of all $ learnt "hat demand draft is and ho" it is made. 2emand draft is an instrument and it is dra"n on the same bank branches or to institutions "here the
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customer does not have any account and payment is to be transferred. $t is the most common form of payment. he other instruments used are telegraphic transfer and mail transfer. 1ail transfer is the fastest "ay. 'reviously telegraphic transfer "as very popular but no" it is not commonly used. $ also learnt "hat pay order is. 'ay order is used to make payments "hich are local as "ithin city. $t is the only difference bet"een demand draft and pay order. &uppose a persons salary bank receives and the person does not have any account "ith the bank, his salary is paid through pay order. 5ollo"ing is the detail of above mentioned instruments.
)*Y ORDERS
A pay order is a payment issued by a bank on the re,uest of the purchaser. $t is a Ban!ers; C%e"#e. 'ay order can only be issued by a bank that is the member of clearing house. hrough pay order payment can only be made "ithin the city and in case "here both the parties dont "ant to deal "ith cash. A pay order is a promise by the bank to pay a certified amount. $t is sort of a guarantee that the payment "ill be made and there "ill be no fraud. Basically it is a financial instrument in the hands of customer in "ritten form. A pay order is al"ays payable by the same bank and same branch, "hich issued that pay order. $t becomes a liability of the bank. A person "ho "ants to get a pay order may be any "alk in customer of the bank. $ts not necessary to become an account holder of the bank for that purpose.
ISSU*NCE )ROCEDURE4 A bank can issue a pay order against Cash deposit Che,ue dra"n on it
$f the customer brings the cash he is bound to fill a pay order application form.
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%n the set format he is re,uired to give his name, address, account number, branch of the bank and city. Dame is a must re,uirement. Also on the application form the amount for "hich the pay order is to be prepared is to be mentioned in "ords and in figures as "ell. After that the application is signed by the applicant and cash is submitted. )*YMENT )ROCEDURE4 %nce the instrument is handed over to the payee, the purchasers duty finishes out and the payees duty starts. Fe can get the payment through any one of the follo"ing three modes of paymentJ ransfer Clearing Cash he cashier "ill affi! a stamp of C*SH RECEIVED along "ith date on the application.
)a$&ent in cas% is normally discouraged and made only in case "here no account no and bank is mentioned in the pay order. &igns are verified first of all. Account 'ayee &tamp "ill be cancelled and then the payment "ill be made. As and "hen payments are made the remaining columns are filled in the register along "ith the initials of the officer and date. )a$&ent is &ade t%ro#g% trans(er "hen the payee ahs an account and then the amount is first transferred to his account and then he can "ithdra" and utili#e the money as and "hen he "ants. )a$&ent t%ro#g% clearing is made "hen the pay order is deposited in some other bank or ranch then it "ill be presented for payment through clearing and the same procedure of clearing "ill be follo"ed.
DEM*ND DR*FTS
A draft is a payment, "hich is to be made "ithin the same country, but it is intercity. 'ayee is presumably in some other city. A draft is also get prepared by the purchaser in the favor of payee but a draft is al"ays dra"n on some other branch of either the same bank or some other bank. Both the branches involved are said to be the

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$ssuing Branch 2ra"ee Branch
&ay sitting in Askari "e have branches in 9arachi and other cities then the draft "ill be dra"n on the branch of Askari in that city or "e should have some agency arrangement "ith some other bank in that city a Askari has no branch in Haran"ala so for that purpose it has made an agency arrangement "ith H*BIB B*N. /IMITED. $n such an agency arrangement both banks "ill be sharing the profit or commission hence earned. )RE)*R*TION OF DEM*ND DR*FT4 A draft usually contains three copiesJ Original instr#&ent he original instrument is handed over to the customer. DD advice his advice is sent to the branch on "hich the 22 is dra"n. his copy is a must. %ther"ise payment of 22 "ill not be possible. his 22 advice is posted to the concerned branch in the same evening. At times it does happens that the customer "ants an immediate payment and the advice still dont reach the target then the customer may also get the service on the verbal guarantee of the issuing branch and the advice is sent after"ards. DD reconciliation cop$ his reconciliation is a revised version of 22 advice and is prepared for record purpose, "hich after"ards is sent to the accounts department.
)*YMENT OF DEM*ND DR*FT
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7hen any 22 is dra"n on us then it is entered in the 22 payable register. 7hich contains the columns of date, 22 advice received, date of 22 issuance, 'ayees name, amount, initials, date of payment and remarksS hese remarks may be to cash, to transfer and to clearing as discussed above. he total of all the outstanding vouchers should tally "ith the total of the system other "ise there may be some error. hese errors may be of t"o types. @rrors of %mission (missed some number) @rrors of Commission (some amount is entered "rongly)
OBC +IBC
he ne!t responsibility on this seat "as %BC, $BC. he che,ues "hich are of different branches of the other banks other than 3ujran"ala are sent for collection and it is called out"ard bills for collection. %ur day started "ith the customers re,uesting to make demand draft. hen mail received is checked and the mail is distributed according to activity. $BC is separated. $BC are the bills dra"n on our bank for collection. he che,ues received are entered and stamped in the system and advices are sent to the re,uesting bank branch. ill the time amounts are actually settled all the amounts are debited in a suspense account and on actual settlement that suspense is account is credited and customer account is debited. 7hen "e sent %BC same is the case. All the %BC are sent through main office as it is the "ay similar to the &tate Bank clearing. %n the day %BC is sent 1% account is debited and suspense account is credited the actual amount is settled. %hU $t "as confusing and $ took one full "eek to understand all this but $ did not have any perfect kno"ledge about that. he problem $ faced during this "eek "as rotation on different seats. $ "as rotated on reception then account opening for no reason. $ "as unable to understand these changes. hat "as the "eek $ "as irritated "ith the environment around me. But $ believe JI t%in! ever$one s%o#ld e2perience de(eat at least once d#ring t%eir career: Yo# learn a lot (ro& it:K
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he major problem $ faced "as that the concerned employee "as on leave and "as trained by t"o personsR half "eek "ith one and second "ith other. >ou are passenger of t"o boats and it is very difficult to learn "ith t"o different people "hen one person is also learning on that seat. $ reali#ed another thing during the "eek that as intern you cannot learn more or perfectly as you are not made responsible for anything and perfection comes "ith responsibility. Although $ "as only on internship but the in,uisitive $ had vanished "ithin three "eeks due to non+serious attitude to"ards interns.
FOURTH 1EE.
1y fourth "eek "as on clearing. $ "as supposed to be on clearing for only three days and $ think it "as enough clearing. $ learnt "hat are the che,ues transferred through clearing. he che,ues "hich are of banks other than A&9A0$
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C%11@0C$AL BAD9 L$1$ @2 but of 3ujran"ala are cleared through D$5 . All the che,ues received from customers are handed over to a person of D$5 . he summary of the learning is as under.
/OC*/ C/E*RIN,
Local clearing is processed by one person in the cash department. As the branch of Askari in 3ujran"ala is the only branch this fact significantly comes into notice here. he "orkload is too high here as nearly -.. to -6. che,ues come into clearing daily. Do doubt that the incorporation of D$5 has made it a lot simpler and a lot easier to lodge the che,ues into clearing and get the payment thereof but still the number of che,ues is as high as a monster for one person. he clearing process can be divided into t"o basic partsJ $n"ard clearing %ut"ard clearing Another important role throughout this procedure is played by D$5 . A brief introduction of D$5 is as under.
NIFT
D$5 stands for National Institutional facilitation Technologies. Clearing Fouse of &B' has shifted a tiresome part of its "ork to a private institution named D$5 . D$5 collects che,ues, demand drafts, 'ay orders, ravelers Che,ues, etc. from all the branches of different banks "ithin city through its carriers and send them to the branches on "hich these are dra"n for clearing. After the branches approve the instruments dra"n on them, D$5 prepares a sheet for each branch sho"ing the number for instruments and amount in its favor and dra"n on it and sends it to each branch. A similar sheet for each bank is also sent to clearing house of &B' "here accounts of banks are settled in the same manner. he in"ard and out"ard clearing are being discussed in detail here under.
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IN1*RD C/E*RIN,
$n"ard clearing is basically the clearing of those che,ues, "hich are dra"n on Askari and are handed over to other banks as deposits. 0esultantly those banks present those che,ues into clearing through D$5 for payment to Askari. D$5 provides the bank a list sho"ing the total number of che,ues as "ell as the amount dra"n on our bank. he same person also hands over the physical possession to the bank also. 7hen the officer collects the che,ues the follo"ing points are taken into consideration. L: CHE0UES *RE SCRUITINI?ED Care is taken specially that there should be no cutting, no over"riting, and re,uired stamps are there. he amount in "ords and figures should match "ith each other. here should be deposit in the account accordingly. he presented che,ue should neither be a post dated or a stale dated che,ue. NOTE: a stale dated che,ue means a che,ue of si! months before or a period more than that. A post+dated che,ue is any che,ue, "hich is dra"n on a future date. @: ST*M)S *RE CHEC.ED4 hree stamps must necessarily be on the che,ue and the counter foil. Clearing &tamp Crossing &tamp @ndorsement stamp at the back. he three stamps must be of the same city, same branch and same bank. %nly if the che,ue is form outside the city the other branch should be involved. $nstitute of Business Administration
Askari Commercial Bank Ltd. ;. DEBITIN, THE RES)ECTIVE *COUNTSJ %nly then the che,ues, "hich are found all, correct and up to the mark are considered and the respective accounts are debited. hose che,ues remain in the possession of the bank for record and audit purposes.
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OUT1*RD C/E*RIN,
%ut"ard clearing means the amount of those che,ues, "hich become receivable for Askari on behalf of the che,ues deposited to Askari by its clients, "hich are dra"n on other banks. As a result Askari present those che,ues to the respective banks for payment on behalf of its customers. his basically is an additional agency function or a service that the bank provides to its customers. he process of out"ard clearing is as underJ C#sto&ers deposit c%e"#es he process of out"ard clearing starts from those customers "ho instead of depositing cash in their accounts deposit che,ues, "hich have been dra"n on various banks and branches. Do" this becomes the duty of the bank here to act as an agent and collect those amounts from those banks on behalf of the customer. hese che,ues are deposited in the accounts along "ith a deposit slip. 7hile receiving the che,ues follo"ing points must be considered. he title should be the same on both deposit slip and the che,ue. he che,ue should be a cross che,ue. he che,ue should neither be a stale dated che,ue nor a post dated che,ue. Ban! sta&ps t%ose c%e"#es and t%e deposit slips: After receiving che,ues the counter foil is returned to the depositor stamped. for us in case of in"ard clearing. he che,ue and the deposit slip are stamped "ith all those stamps, "hich "ere necessary
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* record is &aintained o( all t%e c%e"#es: As "e receive the che,ues ne!t comes the step to make a record of all the che,ues received. 5or that purpose a manual record maintenance becomes impossible, as the number of che,ues is too large. A computer record is maintained for those che,ues.
C%e"#es are %anded over to t%e agent o( NIFT he che,ues are no" counted and given a scroll number according to the computer entry and are handed over to the agent of D$5 for collection purpose. State&ent o( NIFT De!t day the same person of D$5 comes and tells us about the response of the banks on "hich the che,ues "ere dra"n. $t also provides us a list of total che,ues presented and reali#ed. )arties are credited: According to the statement "e credit the accounts of those parties for "hich the payment has been received and debit the customer liability account.
*TM ISSU*NCE
At this seat A 1 issuance "as also my responsibility. 5or A 1 issuance charges are 0s. -.. on issuance and after si! months 0s. 1... 5or this purpose an application is submitted and this application is for"arded to regional office and after 1. days A 1 card is received. he A 1 pin code is "ith operation manager. %n receipts of A 1, "hen customer comes after verifying signatures, he is given the pin and A 1 card.
C*SH DE)*RTMENT
2uring this "eek $ also spent three days "ith cash department. $n cash department there is security. All the che,ues for payment and local che,ues for transfer, deposits $nstitute of Business Administration
Askari Commercial Bank Ltd. are handled in cash department.
1:6 ransfer che,ues are the che,ues "hich are of
ACBL 3ujran"ala and have to be transferred in the accounts of same bank. $n cash department $ "as told "hat supervision is "hich is very essential in cash as there are many chances of mistake in transaction of cash and every transaction is important. he che,ues amounting up to 0s. -6... are supervised by %&3+- officer. Amount up to 0s. 6..... but greater than 0s. -6... is supervised by %&3+1 officer, "ho is in charge of cash department. Amount more than 0s. 6..... is supervised by operation manager. All the vouchers at the end of day are received by accounting department. $ also learnt the functioning of %nline ransfer. All the che,ues and amount to be transferred to the other branches of ACBL are through online transaction. All the ACBL branches are linked online. 'reviously online transfer "as free but no" government has imposed online ta! i.e. 0s. -B6 fi!ed per transaction irrespective of the amount and this is not bearable by customers "ho have to transfer lesser amount. $n this "eek $ "as rotated on different seats. $ must say that all the employees "ere very supportive and helped me in all "ays.
FIFTH 1EE.
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1y fifth "eek "as on credit department. o my good luck one of the employees "as on leave for - "eeks. $ got opportunity to sit on that seat. Although in credit department there "as lot more to learn but to my hard luck the in charge of credit department "as not cooperative. $ "as assigned the jobs in "hich lot of time "ith little mental effort "as involved. $ "as given credit books to balance. 5irst of all $ "as given principle amount book to balance. %hU $t "as hectic to enter :.. amounts "ith huge numbers. All the "ork "as manual and the entries made had to be calculated manually and finally balancing "as tough job. $ spent three days to balance both principle amount and mark up books. $ did it amicably. $ "as keen to kno" "hat the procedure to sanction credit is. $ also "anted to kno" "hat different types of advances are as it is the asset of any bank. he in charge "as not in a mood to tell me anything about credits. &o $ studied the products of Askari Bank in advances and raised ,ueries about those products. $ "as ans"ered "hatever $ asked. Because $ believe J* pro le& is a c%ance (or $o# to do $o#r est:K After that $ "as told that credit is divided into five categories. 5irst of all application is made by customers. &econd step is the financial deposits provided by customer. hird, state bank is approached to get credit "orthiness of the customer. 5ourth, securities are valued and true market value is judged. 5inally, credit sanction advice is issued by the bank. %n the same day $ "as assigned to file the party "ise papers of credit according to the above mentioned categories. hen $ "as given files to compile and arrange "ith respect to customer name. $t "as ,uite boring. After that $ "as given task to make proposal for letter of 3uarantee. L3 is the guarantee by bank that one customer "ill pay to a party and the party to "hom payment has to make ask customer for guarantee. Customer then gives securities to bank and the bank issues L3 to party. here are t"o types of securitiesR 'rimary and &econdary. 'rimary securities are li,uid and usually in cash margin. &econdary securities are in form of land and property. $ took half day to understand "hat the proposal "as and then started "orking on it. %n that minor task $ took t"o days to complete. But at the end $ learnt a lot and that "as the re"ard for my hectic "eek.
Askari Commercial Bank Ltd. $ got kno"ledge about follo"ing things. he jobs assigned to the credit department in general areJ
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3o to market Funt clients 'repare proposals Fead %ffice recommendations 2isbursement of loan Account monitoring Guarterly visits 0estructuring of loan if asked 'rocessing of securities
%ut of the above+mentioned duties the processing of securities is assigned to credit administration department "hich itself is a very time consuming job.
)RE)*R*TION OF )RO)OS*/S
'reparation of proposals is perhaps one of the most complicated jobs of the credit department. he process and the elements included in a credit proposal are as underJ
T$pe o( )roposal
5or the purpose of preparing any proposal the credit department has to prepare the follo"ing documentsJ Credit Line 'roposal Basic fact &heet 0isk $nde! Level Composite Credit Appraisal 'rudential 0egulation Compliance Checklist 5inancial Fistory
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CREDIT /INE )RO)OS*/

A credit proposal may be for ne" clients, 0ene"al of already e!isting proposals, 0evision, and &ingle transaction credit line. hen it contains some necessary information about the business parties likeJ
Dames of o"ners and their shareholding Dature of business @!isting and proposed limit for funded and non+funded facility 3roup @!posure for both funded and non+funded facility 'urpose of each facility and 0epayment &ecurity both e!isting and proposed
CUSTOMER )ROFI/E
/E,*/ ST*TUS $t specifies legal status, "hich may be $ndividual or 'roprietor or 'artnership or Limited Liability Company. &o as to provide the complete information about the business it also provides the follo"ing information about the businessJ
Dames of the o"ners along "ith the D$CW. 2ate if $ncorporation 2ate of Account opening and Account Dumber Location of the business Fistory of 0elationships "ith Bank
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Fistory of Borro"ing 0elationship $nformation of "hether account opening formalities are complete or not
B*SIC F*CT SHEET

5ollo"ing ,uestions are consideredJ
7ere all 5 0*5$1 repaid "ithin stipulated period. 7ere acceptance paid on due dates 7ere 'A2s retired "ithin stipulated period 7ere all usance collection bills retired "ithin the stipulated period 7ere @%Ls adjusted "ithin committed period 7ere all the instruments of 5s paid as per schedule Audit e!ceptions related to credit matters only 7ere checks returned due to lack of funds
COM)OSITE CREDIT *))R*IS*/

he credit appraisal includesJ
Account &tatistics 5or he 'revious >ear Branch Comments And 0ecommendations Credit 2ivisions Comments K 0ecommendations
Askari Commercial Bank Ltd. FIN*NCI*/ SUMM*RY $t includesJ B*/*NCE SHEET INCOME ST*TEMENT C*SH F/O1 ST*TEMENT
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SECURITY *N*/YSIS SHEET $t contains analysis of the security offered for availing the facility.
DISBURSEMENT OF O!N:
%nce the bank is satisfied "ith the market standing of the borro"er ne!t comes the step of ho" much loan should be disbursed. facilities likeJ Long erm 5acilities &hort erm 5acilities hese facilities are eitherJ o "hich e!tent the party should be allo"ed to benefit form the bank. 5or that purpose Askari provides different types of
58D2@2 5AC$L$ $@& 8D58D2@2 5AC$L$ $@&
he banking trend no"adays is to finance the short+term projects as they generate more revenue and are less risky. 8nless the party is too much reliable. &o various types of funded and unfunded facilities are given belo"J
/ETTER OF ,U*R*NTEE </,=

$t is non+fund based facility. )*RTIES INVOV/ED4 hree parties are involvedJ )rincipal4 to "hom bank is giving guarantee on beneficiarys behalf. Bene(iciar$4 in "hose favor guarantee is given. ,#arantor4 it is the bank that is giving the guarantee. $nstitute of Business Administration
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$n this facility bank guarantees the payment of loan amount if the beneficiary fails to perform his or her duty at the settled time.
SI9TH 1EE.
&i!th "eek "as on 5oreign rade. he main focus "as on $mports. $mports and
e!ports are reciprocal to each other. $t "as the department "hich $ must say is up to date department. $t is very sensitive task to handle $mport and @!port department.
IM)ORT DE)*RTMENT
/ETTER OF CREDIT
he letter of credit is today the foremost "ay of financing international trade. $n simple "ords, a letter of Credit (L*C) can be defined asJ MA banks "ritten undertaking given to the e!porter for payment of a certain sum of money on behalf of the importer provided the e!porter tenders to the bank or its overseas agents, the specified documents "ithin a specified period in accordance "ith the terms of the undertakingN.
*DV*NT*,ES OF /-C FOR E9)ORTER + IM)ORTER 5ollo"ing are some of the main advantages of a letter of creditJ &ince a letter of credit is opened only for the importers "ith established credit standing, the e!porter is sure of receiving the price of his commodity. $nstitute of Business Administration
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An e!porter may obtain necessary finance immediately on shipment under a letter of credit (through negotiation or %2 buying). A letter of credit may help the importer to meet its financial difficulties. Fe may obtain some finances against the L*C (Like 5$1, 5A 0 etc). &imilarly, an L*C enables the e!porter to obtain finances from his bank, for the operations of production even before shipment ('re+&hipment finance). *DV*NT*,ES OF /-C FOR B*N.S 7hy banks "ant to indulge in third party transactionsS he ans"er is as follo"sJ $ts a non+fund based profit generating business. Banks charge commission and tele! on the transaction.
IN/*ND /ETTER OF CREDIT $t is a letter of credit, "hich is opened for the purpose of business "ithin the country. FORERI,N /ETTER OF CREDIT $t is a letter of credit, "hich is opened for the purpose of import from other countries. REVOC*B/E /ETTER OF CREDIT A revocable Letter of Credit can be amended or cancelled by the issuing bank at any time "ithout prior notification to the seller. his form of credit gives the buyer ma!imum facility but it places the seller in difficult position "hen the goods are in transit and the credit is revoked before the documents are presented and payment has not been made on presentation. &ince it offers little security to the seller, it is hardly used in foreign trade. IRREVOC*B/E /ETTER OF CREDIT
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An irrevocable letter of Credit constitutes a definite undertaking of the issuing bank to accept and pay the bills dra"n upon it so long as the terms and conditions stipulated in the letter are fulfilled. his form of credit can be amended or cancelled only "ith agreement of all parties to it. &ince it gives the seller greater assurance of payment, it is al"ays preferred to revocable letter of credit. SI,HT /ETTER OF CREDIT $t is a letter of credit in "hich payment is to be made by the importer or the bank issuing the letter of credit (incase the importer does not pay) at the sight of the documents as mentioned in the proforma invoice. US*NCE /ETTER OF CREDIT $n this type of letter of credit a tenor is involved in the payment. 8sually the payment is to be made "ithin ;. days, /. days or ?. days. )arties involved in /etter o( Credit 5ollo"ing Banks are involved in letter of creditJ @!porter $mporter $ssuing Bank (%pening Bank) 0eimbursing Bank Advising Bank Degotiating Bank B@D5$C$A0>& BAD9 C%00@&'%D2@D BAD9 $ntermediary Bank
E9)ORTER @!porter is a person "ho is selling a commodity to a person in another country.
Askari Commercial Bank Ltd. IM)ORTER
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$mporter is a person "ho is purchasing any commodity from a person of another country. $mporter and @!porter are the persons "ho kno" each other very "ell and have mutual understanding regarding the terms and conditions of there trade agreement. ISSUIN, B*N. <O)ENIN, B*N.= $ssuing bank is the bank, "hich opens the L*C on behalf of the importer. his banks undertaking under an irrevocable L*C is absolute. herefore, once the L*C has been communicated to the beneficiary through the bank, it has no option, but to pay, provided the other terms and conditions have been fulfilled. REIMBURSIN, B*N. According to $CC rules, 0eimbursement against foreign currency has to be made through the country originating that currency. herefore, for dollar transactions, reimbursement has to be made through the bank situated in 8&A. 7hen issuing bank dont have any branch in 8&A (for dollar payments), like Askari, the reimbursement is made through a bank in 8&A, "here the issuing bank has Dostro Account, that bank is kno"n as 0eimbursing Bank or 2ra"ee Bank. $t is correspondent of issuing bank and makes payment by debiting the Dostro account. *DVISIN, B*N. he bank that advises the L*C means "ho physically delivers the L*C to the e!porter on behalf of the issuing bank. $t is a correspondent bank of the issuing bank situated in the beneficiarys country or it can also be a branch of issuing bank. NE,OTI*TIN, B*N. he negotiating bank receives the documents and delivers to e!porter. 7hen the e!porter completes all the documents, after making shipment, the negotiating bank sends them to the issuing bank.
Askari Commercial Bank Ltd. INTERMEDI*RY B*N.
166
$ntermediary bank is that "here the negotiating bank has its Dostro Account and "ho obtains reimbursement against L*C from reimbursing bank and gives credit to the negotiating bank. 5or dollar payments, intermediary bank "ould have to be situated in 8&A. &imilarly, for transactions in 3B', both the 0eimbursement and $ntermediary banks "ould be in 89. he number of banks involved in L*C 'rocessing may vary from 1 to /. %nly a single bank can also perform all the functions through its different branches.
$n $mport department the main thing is to open Letter of Credit (LC). Letter of Credit is the guarantee to e!porter that importer "ill make payment. his job is very hectic as you have to be conscious about different countries cultures and rules. %n this seat, $ "as guided "ell. he instructor took pain to let me kno" "hat the procedure to open LC is. he important thing on this job is judgment. Credibility of both importer and e!porter is important. 5or importer, he is asked to provide security and e!porters credibility is judged through a central location in &ingapore that provides credibility report of e!porter. 5irst of all an application for LC is filed by importer, then after fulfilling re,uirements LC is opened. %ne of the basic re,uirements is insurance. Although all the costs of carriage K freight are born by e!porter but insurance cost is "ith importer. $n foreign trade there is risk of fraud and loss. Any damage or loss is carried through insurance but fraud can only be avoided through judgment. hen LC is sent through s"ift message. %n receiving documents from e!porters bank, payment to e!porter is made.
E9)ORT DE)*RTMENT
$n e!port section $ learnt ho" foreign remittances are dealt. $t "as very kno"ledgeable and enjoyable to "ork in foreign trade. $ "as told in detail about the follo"ing terms. FOREI,N DEM*ND DR*FT 2rafts are used for safe transfer of money. As many of the functions of 5CA are related to other countries people normally prefer to transfer money, using draft if $nstitute of Business Administration
16/
they are not in a hurry. $f the drafts are to be prepared in any currency other than 'ak 0upee than they are prepared by 5CA department. he processing and the purpose are just the same as in locally prepared drafts. he only difference is that every document, "hich is to serve the foreign remittance purpose, must contain a protectograp%3 "hich serves as a symbol of authenticity. And attorney holder should also sign it. 7hether the draft is to be prepared or it is to be paid by the branch it never goes ahead "ithout checking the protectograph. FOREI,N TE/E,R*)HIC TR*NSFERS he 5 s are a source of inflo"s and outflo"s of cash in terms of foreign currency. he purpose behind is same but the procedure is a bit different. s are basically of t"o types %ut"ard elegraphic ransfer $n"ard elegraphic ransfer 5or the purpose of an o#t6ard TT preparation a che,ue is received. 5or that che,ue a application form is filled. After that a credit advice is prepared in the name of his out"ard is sent to the corresponding banks branch of 'akistan, "hich in . 7e get intimation the corresponding bank and sent to the treasury. turn "ill send it to the branch outside 'akistan. An in6ard TT is just the reverse of the procedure of out"ard from the branch and prepare a debit advice "hen is presented for payment.
$ learnt a lot and did not face any problem regarding "ork. All the staff of foreign trade "as cooperative, "ith every passing day $ reali#ed that a short but valuable time of my life "as about to end.
*CCOUNTS DE)*RTMENT
$ spent a full day in accounts department and learnt "hat different accounting heads maintained are. $ reali#ed that all the entries are through vouchers and every entry must have proof in shape of vouchers. 'eople in accounting department "ere not cooperative but $ tried hard to get ma!imum kno"ledge through the reference of foreign trade in charge. $nstitute of Business Administration
16B
1ORD OF TH*N.S
he days $ spent in bank "ere very precious as it "as ,uite interesting to "ork differently and "ithout any burden of studies. $ also tried not to get tension of my studies during internship as it might be a hindrance in the "ay of learning. $ must say that overall environment of Askari Bank "as very good and cooperative. 7hatever information $ re,uired "as provided. 'ractical life is full of responsibility and authority. $ "as treated as a child and any deficiency occurred "as on my part. After internship it "as terrifying to back to university. An important but short phase of my life ended. "I ha#e al$a%s gro$n fro& &% 'ro(le&s and challenges) fro& the thing that don*t $or+ out) that*s $hen I,#e reall% learned.-
16A
STR*TE,IC )/*NNIN,
o provide comprehensively plan for the future to ensure sustained gro"th and profitability. o facilitate alignment of the Eision, 1ission, Corporate %bjectives and Corporate 'hilosophy, "ith the Business 3oals and %bjectives. o provide strategic initiatives and solutions for projects, products, policies and procedures. o provide strategic solutions to mitigate "eak areas and to counter threats to profits. o identify strategic initiatives and opportunities for profit. o create and leverage strategic assets and capabilities for competitive advantage. 1obili#e the 0esources.
16?
COM)REHENSIVE STR*TE,IC M*N*,EMENT MODE/
Feed ac!
@!ternal Audit
Eision K 1ission &tatements
@stablish long+term %bjectives
Generate, Evaluate, And select Strategies
$mplement &trategies
1easure and evaluate performance
Askari Commercial Bank Ltd. $nternal Audit
1/.
INTERN*/ F*CTORS
&trengths and 7eaknesses
E9TERN*/ F*CTORS
%pportunities and hreats
STR*TE,Y FORMU/*TION FR*ME1OR. * Co&pre%ensive Strateg$ For&#lation Fra&e6or!

$t consists of three stages. evaluate and select strategies. he tools presented in this frame"ork are applicable to all si#es and types of organi#ation and can help strategists identify,
Strateg$BFor&#lation *nal$tical Fra&e6or! Stage 1: The Input Stage Stage 2: The Matching Stage Stage 3: The Decision Stage Matrices For&ed in Inp#t3 Matc%ing3 and Decision Stages
&tage 1J
he $nput &tage
1/1
$nternal 5actor @valuation 1atri! ($5@)
Competitive 'rofile 1atri!
@!ternal 5actor @valuation 1atri! (@5@)
Stage 2: The Matching Stage
hreats %pportunities 7eaknesses &trengths ( %7&)
&trategic 'osition K Action @valuation (&'AC@)
Boston Consulting 3roup 1atri! (BC3)
$nternal+ @!ternal 1atri! ($@)
3rand &trategy 1atri!
&tage ;J he 2ecision &tage

Guantitative &trategic 'lanning 1atri! (G&'1)
1/-
IN)UT ST*,E
S#$%E &' NP(# S#$%E
$t is presenting fundamental input for &tages - and ;. stage are @!ternal 5actor @valuation 1atri! (@5@) $nternal 5actor @valuation 1atri! ($5@) Competitive 'rofile 1atri! he matrices constructed in this
E9TERN*/ F*CTOR EV*/U*TION M*TRI9 <EFE=

1EI,HT R*TIN, 1EI,HTED SCORE
.EY E9TERN*/ F*CTORS

)**ortunities Det"ork @!pansion 2emand for Credit $slamic banking Capitali#e on $ 3lobal 1arket &uitable investment climate 3ro"th in banking industry #hreats a!es $nvestment in property $ncrease in reserve re,uirement Figh employee turnover Aggressive promotion by competitors TOT*/ ....1 ..16 ...6 ...A ...6 ...6 : 1 ; ; ; ..A ....16 ..16 ..1/ ..16 ..16
..1 ...B ...6 ...6 ...6 1
; : ; 1
....-1 ....16 ...6 -.6B
Interpretation4
Askari Commercial Bank Ltd. he resultant score of -..A sho"s an average @!ternal position of the bank.
1/;
INTERN*/ F*CTOR EV*/U*TION <IFE=

his strategy formulation tool summari#es and evaluates the major strengths and "eaknesses in the functional areas of a business, and it also provides a basis for identifying and evaluating relationships among those areas. 1EI,HT R*TIN, 1EI,HTE D SCORE ..6..-: ..-1 ..:A ..; ..16 ..; ..1A ...A ..1: ...6 ...6 -.B
4 7 3a8or
.EY INTERN*/ F*CTORS

nternal Strengths Leader in 1aster Card Brand $mage Guality &ervice 1obile A 1 $nternet Banking raining 5acilities Don 'erforming Loans Branch Det"ork nternal +eaknesses A 1 Det"ork Lo" rates on 2eposits Less Advertisement Lo" &alary K 2elay $n $ncrements ..1; ...A ...B ..1..1. ...6 ..1. .../ ...A ...B ...? ...6 1.. : ; ; : ; ; ; ; 1 1 1
TOT*/
0.07 2ot 5/)ortant 1 7 3a8or 9ea ne&& Strength 1.07 5/)ortant 27 3inor 9ea ne&&
3 7 3inor Strength
he company major strengths are that it initiates the 1obile A 1 and 1aster card that give an advantage to the customers to scratch "hen it "as rotating in their areas as indicated by rate :. he total "eighted score is above average that is -.B "hich is sho"ing gro"th in the Bank by using its potency is good.
1/:
COM)ETITIVE )ROFI/E M*TRI9 <C)M=

Critical &uccess
Factors Advertising 1arket &hare 5inancial 'osition 'roduct Guality 3lobal @!pansion Customer Loyalty @+Commerce Banking 1anagement Total 7eight ..16 ...6 ..1 ..1 ..-. ..1. ..16 ..1. L:88
Askari o!" #ank

0ating : ; ; ; : ; &core ..16 ..1 ../ ..; ../ ..; ../ ..; @:MD
AlFalah Bank 0ating ; ; ; : ; : ; ; &core ..:6 ..16 ..:6 ..: ../ ..: ..:6 ..; E:@
Prime Bank 0ating ; ; 1 &core ..; ..16 ..; ..; ......; ..L:MD
he result of C'1 1atri! sho"s that overall position of Askari Commercial Bank is good as total &core is -.?6 "hich are greater than -.6. But as compared to Al+5alah Bank, it sho"s relative "eak position.
M*TCHIN, ST*,E
Stage ,' #he Matching Stage
his strategy is characteri#ed by the organi#ational match bet"een $nternal resources and skills and opportunities K risks created by e!ternal factors. 5our types of matrices are developed in the matching stage. 1. -. he %7& 1atri! he &'AC@ 1atri! hese are
;. BC3 1atri! :. 3rand &trategy 1atri!
1/6
THRE*TSBO))ORTUNITIESB1E*.NESSESB STREN,THS <TO1S=

Strengt%sBS 1. Brand $mage -+1obile A 1 K other Guality services ;+ Don 4 performing Loans :+ raining 5acilities 6+ Branch Det"ork /+ Leader in 1aster cards B+ e+ Banking SO Strategies 1+ Avail the opportunity of credit by using the master cards (&/, %:) -+ @!tension in branches net"ork by using brand image (&1, %-) ST Strategies 1+ By using brand image "e decrease employee turnover (&-, %:) 1ea!nessesB1 1+ 5aulty A 1 net"ork -+ Lo" rates on deposits ;+ Do advertisement :+ Lo" salary package 6+ Less no of branches in remote areas
Opport#nitiesBO 1+ $slamic Banking -+ @!tension of Branches Det"ork ;+ Capitali#ation on $ :+ $ncrease in Credit demand DB 3lobal 1arketing T%reatsBT 1+ $nvestment in property -+ a!es imposed ;+ $ncrease in reserve re,uirement :+ @mployee turnover 6+ Aggressive promotion by competitors
1O Strategies 1+ Do of Branches increases through $slamic banking (76, %1) -+ 5aulty A 1 net"ork improves by capitali#ation on $ (71, %;) 1T Strategies 1+ 'roperty investment can be overcome by increasing the rate of return on deposits (7-, 1) -+ @mployee turnover can be overcome by increase in salary package (7:, :)
1//
S)*CE M*TRI9
he &trategic 'osition and Action @valuation (space) matri! is an important matching tool. $ts four ,uadrant frame"ork indicates that "hether aggressive, conservative, defensive, or competitive strategies are most appropriated for a specific organi#ation. he areas of the space matri! represent t"o internal dimensions financial strength (5&) and competitive advantage (CA) and t"o e!ternal dimensions environmental stability(@&) and industry strength ($&) .Assign a numerical values ranging from L1("orst) to L/ (best) to each of the variables that make up the 5& and $& dimensions. Assign a numerical value ranging from +1(best) to +/("orst) to each of the variables that make up the @& and CA dimensions.
Space &atri2 o( *CB/

Financial strengt%s
&hare capital ratio increased by -.I he banks return of Assets is 1.;? I 0evenue increased by /?I 'rice earning ratio is continuously ?./
Rating
: : 6 6 LN
Ind#str$ Strengt%
Figh potential to gro" in banking industry Computeri#ed Banking system $slamic Banking 3ro"th Credit @!pansion : : 6 : LO $nstitute of Business Administration
1/B
Environ&ental Sta ilit$

'olitical $nstability 0apid echnology $nflation 0ate Competitive 'ressure +: +: ++; BLE
Co&petitive *dvantage
Figh service Guality 3enerous 'roduct 'ortfolio Customer Loyalty Branch Det"ork +; +; ++BL8
Concl#sion
@& Average X +1;*: X +;.-6 CA Average X +1.*: X +-.6 9 P *2isJ (:.-6) L (+-.6) X L1.B6 Y P *2isJ (:.6) L (+;.-6) X L1.-6 SP$CE M$#R L/ L6 L: L; LL1 C* +/ +6 +: +; +- +1 +1 ++; L1 L- L; L: L6 IS L/ (L 1.B6, L1.-6) FS $ggressive $& Average X 1B*: X :.-6 5& Average X 1A*: X :.6
1/A
+: +6 +/ ES
THE BOSTON CONSU/TIN, ,ROU) <BC,= M*TRI9

BC, M*TRI9
Divisions
$on&"/er loan& 3ortgage +inance 3a&ter$ard
Revenues Percent Revenue

*44256000 4655*0000 2006*6000 1410802000 52.* 33. 14.2
Profits
4383*52000 18*5620000 521026000 6*80668000
Percent Profits
64.6 2*.6 *.6
Percent Market Share

10% 20% 45%
%ro.th Rate
6% 18% 23%
Relative Market Share Hig% L Medi#& 8:D III /o6 8
Hig% HE8
II
I Medi#& 8
1/?
%ro.th /o6 BE8 E9)/*N*TION he matri! sho"s that the Askari Bank consists of three divisions. 2ivision 1 has greatest revenue volume soR circle representing that division is largest one in the matri!. he circle representing the division ; is the smallest because its revenue he pie slices "ith in the circles represent volume is least among all the divisions.
the percent of corporate profit contributed by each division. 2ivision 1, - K ;J are positioned in ,uestion marks, so the recommended strategies are product development and concentric diversification.
nternal E/ternal 0 E1 Matri/

he internal e!ternal matri! positions an organi#ations various divisions in a nine cell display. $5@ total "eighted scores are taken on the !+a!is and total @5@ "eighted scores are taken on the y+a!is. %n the !+a!is of $@ matri! an $5@ total "eighted score is taken. he $@ matri! is divided into three major regions that have different strategy implications. 5irst, the divisions that fall into cells $, $$, or $E can be described as gro" and build. &econd, divisions that fall into cells $$$, E, or E$$ can be managed "ith hold and maintain strategies. hird, a common prescription for divisions that fall into cells E$, E$$$, or $P is harvest or divest.
EFE Matri2
1eig%ts
Consu!er 2oans Master Cards Mortgage 3inance
Askari Commercial Bank Ltd. )**ortunities Det"ork @!pansion 2emand for Credit $slamic banking Capitali#e on $ 3lobal 1arket &uitable investment climate 3ro"th in banking industry #hreats a!es $nvestment in property $ncrease in reserve re,uirement Figh employee turnover Aggressive promotion by competitors
1B. 0ate 7.&core 0ate 7.&core 0ate 7.&core : ..A : ..A : ..A ; ..; : ..: ; ..; ..; 1 ..16 1 ..16 ..1 : ....1. ..1/ : ..;1 ...A ; ..16 ; ..16 ; ..16 ; ..16 ; ..16 1 ...6 : 1 ; ; -.A; ..: ...B ..16 ..1. ..16 -.A? ; 1 ; 1 ; ..; ...B ..16 ...6 ..16 ; : ; 1 ..; ..-A ..16 ...6 ..1. -.61
....1 ..16 ...6 ...A ...6 ...6 ..1 ...B ...6 ...6 ...6 1
IFE M*TRI9
Consu!er 2oans Master Cards Mortgage 3inance
1eig%ts nternal Strengths Leader in 1aster Card Brand $mage Guality &ervice 1obile A 1 ..1; ...A ...B ..1..1. ...6 ..1. .../ ...A ...B ...? ...6 1..
0ate ; ..;? : ; ; : ; ; : 1 1 1
7.&cor e ..;? ..;? ..;..-1 ..;/ ..: ..16 ..;; .....A ..1: ...? ...6 -.B-
0ate : : ; ; : ; ; ; 1 1 1
7.&cor e ..6..;..-1 ..;/ ..: ..16 ..;; ..16 ...A ..1: ...? ...6 ;.1;
0ate ; : ; ; ; ; ; ; 1 1 1 7.&core ..;? ..;..-1 ..;/ ..; ..16 ..;; ..16 ...A ..1: ...? ...6 -.6B
$nternet Banking raining 5acilities Don 'erforming Loans Branch Det"ork nternal +eaknesses A 1 Det"ork Lo" rates on 2eposits Less Advertisement Lo" &alary K 2elay $n $ncrements
TOT*/
1B1
Divisions
$on&"/er loan& 3ortgage +inance 3a&ter$ard #)#$2
Sales
*44256000 4655*0000 2006*6000 1410802000
Percent Sales
52.* 33. 14.2 100
Profits
4383*52000 18*5620000 521026000 6*80668000
Percent Profits
64.6 2*.6 *.6 100
E3 Scores
2.*2 2.5* 3.13
E3E Scores
2.83 2.51 2.86
3E #otal +eighted Score :.. ;.. -.. 1..
1B-
L LLL
LL
E3E #otal +eighted Score
;..
-..
1B;
0#adrant II 1. 1arket development -. 1arket penetration ;. 'roduct development :. Fori#ontal integration 6. 2iversification /. Li,uidation 1E*. COM)ETITIVE )OSITION 0#adrant III 1. 0etrenchment -. Concentric diversification ;. Conglomerate diversification :. 2ivestiture 6. Li,uidation
0#adrant I 1. 1arket development -. 1arket penetration ;. 'roduct development :. 5or"ard integration 6. Back"ard integration /. Fori#ontal integration B. Concentric diversification STRON, COM)ETITIVE )OSITION 0#adrant IV 1. Concentric diversification -. Fori#ontal diversification ;. Conglomerate diversification :. Hoint Eenture
,R*ND STR*TE,Y M*TRI9

R*)ID M*R.ET ,RO1TH
1B:
E/*lanation Askari commercial Bank is located in ,uadrant $ of 3rand &trategy 1atri! because the bank sho"s strong competitive position and rapid market gro"th. 5or bank, an intensive strategy market penetration and product development is an appropriate strategy.
DECISION ST*,E
0U*NTIT*TIVE STR*TE,IC )/*NNIN, M*TRI9 <0S)M=
.e$ Factors Opportunities Det"ork @!pansion 2emand for Credit $slamic banking Capitali#e on $ 3lobal 1arket &uitable investment climate 3ro"th in banking industry #hreats a!es $nvestment in property $ncrease in reserve re,uirement Figh employee turnover Aggressive promotion by competitors Mar!et )enetration 1eig%t *S T*S ....1 ..16 ...6 ...A ...6 ...6 ..1 ...B ...6 ...6 ...6 + 1 1 ; 1 1 : ..:. + ..;. ...6 ..1/ ...6 ..16 ..1. ...B ..-. ..1. ..1. )rod#ct Develop&ent *S T*S 1 1 ; + 1 1 1 + ; ; : 1 ....1 ..:6 + ...A ...6 ...6 + ..-1 ..16 ..16 ...6
1B6
Strengths Leader in 1aster Card Brand $mage Guality &ervice 1obile A 1 $nternet Banking raining 5acilities Don 'erforming Loans Branch Det"ork +eaknesses A 1 Det"ork Lo" rates on 2eposits Less Advertisement Lo" &alary K 2elay $n $ncrements Su! #otal $ttraction Score
..1; ...A ...B ..1..1. ...6 ..1. .../ ...A ...B ...? ...6 1..
: 1 1 : 1 1
..-/ ..;...B ..-: ..-. ...6 ..-. ..-: ...A ..1: ..1A ...6 ;.B1
: ; : : 1 ; ; ; ; 1 1 +
..6..-: ..-A ..:A ..1. ..16 ..;. ..1A ..-: ...B ...? + :.1:
Reco!!endations Regarding Strategy $da*tation

otal attractive score for product development strategy is :.1: "here as total attractive score for market penetration strategy is ;.B1. o the e!tent that Askari Bank is concerned product development strategy is more attractive than market penetration strategy.
1B/
CONC/USION + RECOMMEND*TION
RECOMMEND*TION FOR BR*NCH
Askari Commercial Bank 3ujran"ala is the only branch of Askari in 3ujran"ala. his branch is performing "ell but need attention on certain issues. $ recommend follo"ing tasks to get attention of branch manager. As $ have described that there is only one branch of Askari in 3ujran"ala, there is great deal of "ork. o handle the "ork burden on cash counters there must be automated token machine. his machine is employed in many braches of Askari in Lahore and 0a"alpindi. his "ill certainly result in the smooth "orking of operations. his problem can also be solved by increasing the number of cash counters. A 1 of branch does not "ork properly and need immediate attention of the authorities. An up to date A 1 machine should be installed. $n credit department there is lack of coordination and proper leadership. 'roper attention should be given on this department and monopoly of certain persons should be controlled.
Askari Commercial Bank Ltd. Branch is in problem of high employee turnover. basis of deposits they attract.
1BB he employees must be
given due respect and re"ard for their respective tasks done not only on the @mployees must be rotated on different seats after one or t"o years for better internal control. he employees recruitment should be proper and on merit. $t is essential for the high morale of employees. @very employee should be given matched benefits @mployees must be motivated through incentives to their performances. he management should consider the distribution of the "ork once again. Do doubt the initial distribution is close to the fair one but there are some areas, "hich are overlooked. he management should focus on such areas and the jobs should be evenly distributed.
RECOMMEND*TIONS FOR B*N.

he banking industry is becoming e!tremely competitive. 7ith every passing day, banks are coming up "ith ne" products and services. 2ue to deregulation and privati#ation the financial markets are no" open to ne" challenges. Banks have started opting for aggressive strategies in an effort to differentiate themselves from others. he banks product* service portfolio should be e,uipped "ith features that have been designed to suit customers needs and provide them fle!ibility. Askari bank is a relatively ne" bank, but in order to e!pand its operations and become a household name, it needs to do more. 5ollo"ing are some recommendations for Askari Commercial Bank in particular. Bank offers lo" rates on deposits as compared "ith its competitors. Askari should offer attractive rates on deposits to attract more customers. $t "ill help increasing its deposits. $n order to increase the share of deposit in relation to the total deposits, the bank has to increase its operations and e!pand. hough a lot of people kno" Askari bank, still it is not a household name because of its lack of a directed marketing campaign. $t should focus more to"ards this sector, as an effective
Askari Commercial Bank Ltd. marketing policy proves really helpful for the business. "ell as marketing in the ne"spapers should be increased.
1BA elemarketing as
Askaris pay scale is not attractive. he bank should focus on this perspective and try to increase salaries of employees. All the bonuses and increments should not be delayed. here must be proper training of employees. Although bank offers training facilities to its employees but these facilities are not enough. 1ore and more 1 %s must be hired. @!clusive training to e!isting employees should be provided. 2ifferent investment schemes should be introduced to attract more customers. 'roper A 1 net"ork must be installed on different locations and no of locations should be increased. Askari should open its branches in rural areas as there is scope of banking in agriculture sector. Askari should introduce educational loans in the market. here is high employee turnover in the banking sector in general so there is need of proper recruitment policies.
1B?
SOURCES
.ersonal o(ser#ations /e(site !nnual Re'ort of !s+ari Ban+ Infor&ation fro& (an+ officers The ne$s'a'ers Brochures Discussions $ith custo&ers

Askari Bank

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Askari Commercial Bank Ltd.

$nstitute of Business Administration

Askari Commercial Bank Ltd.

$nstitute of Business Administration

Askari Commercial Bank Ltd.

$nstitute of Business Administration

Askari Commercial Bank Ltd.

$nstitute of Business Administration

Askari Commercial Bank Ltd.

$nstitute of Business Administration

Askari Commercial Bank Ltd.

$nstitute of Business Administration

Askari Commercial Bank Ltd.

$nstitute of Business Administration

Askari Commercial Bank Ltd.

COR)OR*TE + SENIOR M*N*,EMENT

$nstitute of Business Administration

Askari Commercial Bank Ltd.

$nstitute of Business Administration

Askari Commercial Bank Ltd.

$nstitute of Business Administration

Askari Commercial Bank Ltd.

COR)OR*TE *ND INVESTMENT B*N.IN,

$nstitute of Business Administration

Askari Commercial Bank Ltd.

TRE*SURY *ND INTERN*TION*/ O)ER*TIONS

$nstitute of Business Administration

Askari Commercial Bank Ltd.

OFFSHORE B*N.IN, UNIT

*DV*NCES *ND CREDIT

$nstitute of Business Administration

Askari Commercial Bank Ltd.

*,RICU/TURE CREDIT FIN*NCIN,

Askari Commercial Bank Ltd.

$nstitute of Business Administration

Askari Commercial Bank Ltd.

$nstitute of Business Administration

Askari Commercial Bank Ltd.

*1*RDS *ND *CHIEVEMENTS

$nstitute of Business Administration

Askari Commercial Bank Ltd.

$nstitute of Business Administration

Askari Commercial Bank Ltd.

$nstitute of Business Administration

Askari Commercial Bank Ltd.

BUSINESS ETHICS + CONDUCT

Askari Commercial Bank Ltd.

INS)IRIN, EM)/OYEE RE/*TIONSHI)S

INS)IRIN, TECHNO/O,IC*/ INNOV*TIONS

$nstitute of Business Administration

Askari Commercial Bank Ltd.

INS)IRIN, ETHIC*/ V*/UES

INS)IRIN, SH*REHO/DER CONFIDENCE

$nstitute of Business Administration

Askari Commercial Bank Ltd.

Corp. Banking K 5in. $nst. 3roup

%perating and credit group

0etail Banking 3roup

0a"alpindi *$slamabad Dorth

'lanning and Corporate affairs Fuman 0esource

@lectronic echnology &ystems and %perations

Corporate and 1erchant Banking

7est $nstitute of Business Administration

COR)ORTE + SENIOR MN*,EMENT

COR)ORTE ND INVESTMENT B*N.IN,

TRESURY ND INTERNTION/ O)ER*TIONS

DVNCES *ND CREDIT

,RICU/TURE CREDIT FINNCIN,

1RDS ND CHIEVEMENTS

INS)IRIN, TECHNO/O,IC/ INNOVTIONS

INS)IRIN, ETHIC/ V/UES

CCOUNT O)ENIN, DE)RTMENT

FOREI,N E9CHN,E DE)RTMENT

COMMENTS ON 5OB STISFCTION