Professional Documents
Culture Documents
ACKNOWLEDGEMENT
A milestone of this nature could never have been possible to achie
ve without the support of a galaxy of some truly loving persons. The events a
nd the process leading to the accomplishment of my objective have given me
a realization in depth of immense blessing of Allah.
Many people have contributed in the successful completion of this i
nternship report. My great appreciation goes to the whole team of Askari Ban
k Ltd DHA II Lahore. They provided me with every kind of help in the completi
on of this report. Let me also thank my teachers of Comsats Institute of Info
rmation Technology (CIIT) for the knowledge they gave me and their guidan
ce in every field. I would also like to thank Professor Samar Kamal Fazli for
his guidance. Last but not the least I would like to thank my parents who provi
ded me love, support, patience & good knowledge.
Executive Summary
This internship report consists of profile of the banking sector (ind
ustry), its origin, the functioning, how the banks are classified on the based on
function, ownership etc and the trends being followed in the industry. Besides
the above mentioned this report is focused on Askari Bank and to be more pr
ecise it discusses the inner details of the bank situated in Lahore DHA II Bran
ch. Askari Bank origin and its setup in Pakistan are also discussed in the repo
rt.
Askari Bank came to Pakistan and gave banking sector a new hori
zon, today Askari Bank has set firm foot in the industry.
The report further guides through the department and working of th
e general banking. The activities taking place in the bank, the vario
us products of banking are discussed in the report. The report is a v
ery good description of what Askari Bank and its significance is.
Introduction
The name bank is derived from a Latin word bancho meaning desk/
bench, used during the renaissance by the Florentines bankers, wh
Industrial profile
Banking is one of the most sensitive businesses all over the world a
nd play important role in the economy of a country and Pakistan is
no exemption and in a contemporary world of money and economy.
The banking system of any economy is an undeniable determinant
of its growth as it provides an efficient channel that routes funds fro
Classification of Banks
The commercial banks are classified into various types on the basis
of their spheres of activities, ownership, domicile etc. The main type
s of banks are:
Central Bank
Commercial Banks
Exchange Banks
Saving Banks
Agricultural Banks
Industrial Banks
Classification on the basis of ownership
Cooperative banks
Classification on the basis of domicile
Domestic Banks
Foreign Banks
Banks in Pakistan
Government Owned Banks:
JS Bank Limited
Mybank Limited
SILK Bank
Barclays
Non-Member Banks & Development Financial Institutions:
and
development
with
its
members.
Consumer Financing
1. House financing
2. Auto financing
Islamic Banking
Consumer financing:
Most of the commercial banks have ventured into consumer financi
ng. Consumer financing as the name indicates is simply financing f
or their consumers that may include financing for household produc
Islamic Banking:
Islamic banking is a phenomenon which is continuously gaining pop
ularity in the country, a-lot of effort is being put in to make Islamic b
anking penetrate through the conventional banking. The SBP has in
itiated the process the process of converting conventional banks int
o Islamic banks while the government has initiated a parallel bankin
g strategy of promoting Islamic banking alongside the conventional
banking. Islamic banking is not much different from the conventiona
l banking in terms of the processes being carried out but it deals wit
h all in a more Islamic way for e.g. they dont charge interest in Isla
mic banking, they only take profits which is in fixed amounts of mon
ey not interest rate over the loan disbursed.
f the Bank is situated at AWT Plaza, the Mall Rawalpindi. The Bank
obtained its business commencement certificate on February 26, 1
992 and started operations from April 1, 1992. Army Welfare Trust d
irectly and indirectly holds a significant portion of the Bank's share c
apital at the period end. The Bank
has 227 branches (December 31, 2009: 226 branches); 226 in Paki
stan and Azad Jammu and Kashmir, including 31 Islamic banking br
anches, 22 sub-branches and a Wholesale Bank Branch in the King
dom of Bahrain. The Bank is a scheduled commercial bank and is p
rincipally engaged in the business of banking as defined in the Ban
king Companies Ordinance, 1962.
Mission
To be the leading private sector bank in Pakistan with an internation
al presence, delivering quality service through innovative technolog
y and effective human resource management in a modern and prog
ressive organizational culture of meritocracy, maintaining high ethic
al and professional standards, while providing enhanced value to all
our stake-holders, and contributing to society.
Branches
Board of directors
Chairman
Chairman Executive Committee
Director
Director
Director
Director
e
Mr. M. A. Ghazali Marghoob
Company Secretary
Finance department
Marketing department
IT department
Operations department
Finance Department
Finance is the major driving force behind an organization, whatever
the business is, it may miss out any other department which will ha
ve an effect but if it misses out finance the business can simply not
run. The basic thought before doing any business is to earn profits,
and it is not possible with the finance personal. If the firm doesnt kn
ows it expenses it wont know its surplus incomes as well. Good fin
ance is the key to a successful business.
The role of the support functions in the business management is as
of any front line business function as they primarily deal in managin
g the internal dynamics of the organization to assist in accomplishm
ent of business objective, implementation of strategies and to enfor
ce a sound control environment of harmonizing profitability with gov
ernance goals.
It is one of the support departments of all the division of the bank. T
his department is responsible for the following functions.
Calculating and comparing the variances in the actual results with the
budgeted amounts
Reporting line:
The finance department of the bank directly reports to the Group he
ad consumer finance and all the reports sent to the head office and
other authorities are under approval and authority of the group hea
d Consumer finance.
The finance department is of keen interest to the operations depart
ment. It further includes different departments, each having a very v
ital role to play.
Payables
Reconciliation
IP (Item processing)
Settlement
B.T.F
Balance transfer facility. Askari Bank offers a balance transfer facilit
y to all its members -an easy and convenient way to transfer and pa
y the existing balances of their accounts, issued by other banks in
Pakistan, through their Banks account.
Marketing Department
The marketing department handles the activities regarding the pro
motional activities that are held time to time and making agreement
s with different retailers for getting factory prices of their products in
order to make their products more attractive to the customers by cu
tting down prices on buying from their credit cards, like special disc
ount on purchase from credit card.
Customer Services
Customer service is a very self explanatory term. Customer service
s involve services like; after sale service and satisfying customer ne
eds in case they are facing any problems in the service.
They also handle the applications declined by verification departme
nt, by reviewing them and sending letters to re apply for clients if th
ey are legible.
Operations Department
Survival and success of any organization requires its operations to
be tightly monitored and performed well. Askari Bank believes in ha
ndling its operations in an efficient way. A department has been spe
cially designed to carry the operations held. The operations depart
ment has a hawks eye over all the departments working for the ban
k but certain departments are made a part of the operations depart
ment because of their well known importance. The departments un
der the Operations department are;
Embossing Department
Mailing Department
Recovery Department
Collection Department
Authorization
Designing Department
IT department.
Embossing Department;
They receive data of clients; their work function is to print the accou
nt numbers, it is very easy to say but this department has its own si
gnificance.
Mailing Department;
Mailing department has a very vital role in the structure their basic t
asks are listed below
Receive Mails; mail receiving is one of the jobs of this department this
is pretty tedious task, receiving mails for the entire bank, the mail inclu
de; billing receipts, new applications, billing applications etc
Bills Mailing; The payment of and for the bank also follow the path whi
ch pass the mailing department
Besides the above mentioned tasks though they are pretty tedious t
hem self, the mailing department is also responsible for the inventor
y caretaking for the bank.
Collection Department;
These are the people who are always being CURSED by the cust
omers because to pay an amount from your very own pocket is not
an easy thing. Plastic money is just like honey when we use it. It giv
es us a yummy taste because we are not using our own money, but
when we receive our bills we feel like having chilly taste with lots of
black pepper of this yummy honey. So people in collection departm
ent try to give customers black pepper in a very pleasant way. They
make calls, calls & calls (bundle of calls) to late payment holders up
till 3 months of bill issuance. They make people afraid to collect due
payment.
Authorization;
This department monitors all transactions being made on the accou
nts through the system. This department also looks for any fraudule
nt activities.
HR & Greeting Department;
Human resource department has a check on the entire system and
make sure that the employees are performing their best. Some acti
vities performed by HR department are:
Contract Renewals.
Performance Appraisals
Increment in salaries
Bonuses Decisions
Leaves
Greeting employees are there to greet walk in customers and guide
them.
IT Department
IT is one of the most important sectors these days, no organization
is complete without the aid from IT department similar is the case wi
th Askari Bank, IT department has the most important role that is joi
ning the departments with each other, every department is linked wi
th the other department by means of networking of Computer and a
n intercom with about 300 telephone set is laid in the center. The IT
department has a lot more to contribute in the center for instance e
verything nowadays is done on computers and there are different s
oftwares for different business activities, the IT department keeps e
verything ready for every department. This department though does
not have a visible role but can without a doubt be referred to as the
back bone of the company.
GENERAL BANKING
Name of employer
Approximate salary
Area of residence
Overall background
Source of funds
For self-employed:
Field of operation
Nature of transactions
Source of funds
Area of residence
Overall background
For an organization:
Obtain brief profile of the partners, directors etc. to ascertain their credi
bility.
The type of account i.e. Current, PLS or Term must be clearly mention
ed.
Full name of the customer along with the fathers/ husbands name, NI
C number/ Passport number, place of birth, NTN, occupation & occupa
tional details including occupational address (the occupation must be cl
early and specifically defined, vague terms such as business, trading, s
ervice etc. are insufficient, the extract nature of the occupation or the pl
ace of employment must be ascertained and recorded) personal comm
unication details & details of Next of Kin, as applicable must be recorde
d.
Any other instructions such as holding of mail etc. must also be mentio
ned on the AOF.
Introduction of an account
To ascertain the credibility of the customer, the account must be in
troduced by another account holder.
Preference should be given to introduction by an existing account h
older of the branch. Emphasis is being made for introduction by an
Status of customer
RESIDENT:
A resident would mean any person residing in Pakistan
and holding a Pakistani Nationality or an expatriate having a valid p
ermit for residing in Pakistan or an employee of a consulate of a Fo
reign Country or firms which are incorporated abroad but operate in
Pakistan or a Judicial Entity licensed to operate in Pakistan.
NON-RESIDENT:
Individual firms and companies resident in countries out
side Pakistan are designated as Non-Resident. All Pakistani Nation
als and persons domiciled in Pakistan except persons holding office
in the service of Pakistan who go out of Pakistan for any purpose vi
z., employment, study, business, pleasure etc. are treated as NonResident for so long as they remain outside Pakistan and all such a
ccounts are regarded as accounts of countries in which the account
holder is residing. Non-Resident accounts can be categorized as fol
lows:
TYPES OF ACCOUNTS
1) Current Account
It is an account in which profit is paid on the balances. A
ny individual, firm, charitable institution, corporation, association etc,
and residents as well as non-residents can open and operate a cur
rent account.
Deduction of Zakat
Zakat would be deducted @ 2.5% on the credit
balance over and above the declared NISAB for the year. PLS acco
unt holders would be required to furnish a Zakat Exemption Certific
ate on the prescribed format to be exempted from this compulsory
deduction. The exemption certificate must be executed and submitt
ed to the branch, one month prior to the month of Ramadan. Signat
ures of the customers must be verified on the Zakat Exemption For
m. A check has to be applied in the system in case of Zakat Exempt
ion failing which the system would automatically debit the same fro
m the account on the 1st day of Ramadan each year. The NISAB a
nd procedure for deposit of Zakat is circulated each year before the
1st day of Ramadan by the systems and operations department, He
ad Office.
Silent features:
It is not negotiable
It is not transferable
ered printed blocks of PLS TDR. The same being security stationer
y must be kept under lock and key in dual custody and the running
i. Current
ii. Saving
iii. Fixed Deposit
Additional requirements and exceptions are outlined hereunder:
No Zakat is deducted
Interest on Saving account and Fixed Deposit are circulated by the Inte
rnational Division
Customer
Bailor
Bailment:
It is the delivery of goods by one person for some purpose u
pon a contract that the goods shall when the purpose is accomplish
ed shall be returned or otherwise disposed of according to the direc
tions of the persons delivering them.
Obligations of the banker:
Bailee has to return the goods subject to the demand from the bailor
Banker has to deliver the goods to the customer according to his instru
ctions
Receipt of securities:
Sealed Boxes:
Bank accept sealed boxes of convenient sizes
While accepting a box banker should see that the box is seal wit
h the customers seal
Words CONTENTS UNKNOWN should be prominently written
on such boxes
Sealed packets containing wills:
Banker also accepts from customers for safe custody wills or se
Delivery of securities
The bank will strike out the delivered articles from the receipt
Customer Le
ssee
The number of the key and the locker to which it relates are not the sa
me
2nd key is known as master key it is applied by the banker while openi
ng the locker along with the key of the customer
Operations of locker
So contract is the basic document that set out the relationship between
banker and a customer
Guidelines to minimize improper access
Licensing of lockers
Admission of signatures
Allot locker from the locker chart and mark locker number so allotted i
n pencil on the chart
In case rent is not deposited within 7 days from the date it becomes du
e the licensee be requested to deposit the rent, subsequent reminders
be sent on monthly basis and if after 4 reminders the rent is not receive
d a notice be sent through Registered A/D giving therein 30 days to de
posit the rent and in case of failure the locker will be broken open
VOUCHERS
Dr: Cash / Partys Account
Cr: Income Account Rent-Locker
Cr: Sundry Deposits-Key Deposits
In the presence of
i. Notary Public
ii. Custodian of Locker
iii. Branch Manager
iv. Resident Authority
Remove contents
The packet is retained under lien against unpaid rent of the locker and
other expenses incurred on the forced opening.
If the contents remained unclaimed for 6 months, rent and other dues h
ave also not been paid, then the licensee be given a 30 days notice, aft
er Head Office approval, stating that articles in whole or part will be sol
d to appropriate the proceeds towards the recovery of dues
Licensee
Manager operations
7) After breaking open the licensee should remove his articles fro
m the
locker
In his presence
REMITTANCES
Transfer of funds from one place to another.
Products:
Demand draft
(intercity)
Mail transfer
(inter/intra city)
Telegraphic transfer
(intercity)
Pay order
(intercity)
(inter/intra city)
(inter/intra city)
Several accounts are not being debited to build up the aggregate amou
nt of remittances where nature of business does not justify
The account is not being used only for the purpose of effecting/receivin
g remittances/transfer of funds to other accounts without any business
personal banking related transactions
Due notice must be taken of unusual instructions such that remitted fun
ds are expected back through some different source/country
DEMAND DRAFT
Written Order
To pay Money
Uses:
One of the most reliable modes of transfer of funds
Used for intercity remittances of funds
Eligibility Criteria:
Should not be a:
Minor
Illiterate Persons
Insane Persons
Can be issued to:
Individuals
Joint Names
Business Concerns
Can be issued against:
Issuance of DD
Recovery of charges
Deposit of cash/cheque
Delivery of DD
Payment of DD
On receipt of IBCA
Scrutiny of IBCA
Vouchering
Entry in system
Issuance of Duplicate DD
Written Request
Verification of Signature
Intimation to purchaser
Letter of indemnity
Noting in DD system
Verification of signature
Genuineness of DD is established
DD system
Refund of Amount
If purchaser is not account holder than the amount of D
D is credited in his account otherwise refund is made through Pay
Slip.
The original DD is defaced & stapled with the Debit Voucher of Suspen
se account
Issuing Branch
Drawee Br
anch
Receipt of application
Cancellation of DD
Dr: suspense a/c DD cancelled
Cr: partys a/c. cash
o Scrutiny of
Intimation
System
o Vouchering
nch
On receipt of IBCA
Dr: MO a/c of drawee branch
Cr: suspense a/c DD cancelled
Crossing
Section 123 of N.I.Act 1881:
Where a cheque bears across its face an addition of the words and
company or any other abbreviation between two parallel transverse
lines simply, either with or without words not negotiable the addition
shall be deemed to be a crossing and cheque shall be deemed to b
e crossed generally.
Cheque Crossed Account Payee
Sec 123 A:
Where a cheque crossed generally bears across its an addition of t
he words account payee between two parallel transverse lines co
nstituting the general crossing, the cheque besides being crossed g
enerally is said to be crossed.
Special crossing
Sec 124:
Where a cheque bears across its face an addition of the name of th
Role of SBP
NBP performs this function on behalf of SBP where office of SBP does
not exist.
Clearing Membership
Receipts of Instrument
Instrument number
Signature of depositor
Affix bank crossing & clearing stamp on the face of the instrume
nt
Collection
Article 2 of URC 522
BUSINESS OPERATIONS
Organizational chart
Marketing strategy
Most companies use the term marketing mix to describe the combin
ation of elements that they use to achieve goals for selling and pro
moting their products and services. When the company decides whi
ch elements it will use, it calls that particular marketing mix its mark
eting strategy.
The major marketing management decisions can be classified in on
e of the following four categories:
Product
Price
Promotion
/service
These variables are known as the marketing mix or the 4 P's of m
arketing. They are the variables that marketing managers can cont
rol in order to best satisfy customers in the target market.
1) Product
The end result of the manufacturing process, to be offered to
the marketplace to satisfy a need or want.
Earn Rs. 925/- per month on investment of every Rs. 100,000/- for one y
ear!"
Earn Rs. 1,000/- per month on investment of every Rs. 100,000/- for thre
e years!
Askari Mahana Bachat Account is a Term Deposit facility available t
o individual customer with the option of 1 and 3 Years tenure. It has
been designed keeping in view savings needs of individual investor
s who dont want to block their funds for longer terms, with a compe
titive rate of return paid monthly on the 1st of every month. A financi
ng facility up to 90% will be available for customers if required.
Features:
Product type
Term deposit
Eligibility
Individual only
Balance requirement
Tenure
Profit payment
Profit rates
Competitive
Servicing
Financing limits
1+3 years
m of monthly deposits for five years and get paid back the same am
ount for the next five years while receiving principal amount in full at
the end of the tenure.
Features:
P
r
o
d
u
c
t
Term Deposit
T
y
p
e
:
E
l
i
g
i
b
i
l
i
t
y
:
Individuals Only
in
t
R
s.
5,
/-
xi
m
5
:
u
s.
5
0,
0
0
0
/T
e
n
u
r
10 Years (5 + 5)
e
:
P
r
o
f
i
t
p
a
y
Monthly on co
mpletion of first 5
years
m
e
n
t
:
P
r
o
f
Competitive
i
t
R
a
t
e
s
:
S
e
r
v
i
Available at all A
hes
n
g
:
principle amount
after completion
of first 5 years
n
c
i
n
g
L
i
m
i
t
s
:
Term Deposit
p
e
:
E
l
i
g
i
b
Individuals Onl
l
i
t
y
:
B
Minimum Rs. 5
0,000/-
Maximum upto
Rs. 10,000,000
/-
c
e
r
e
q
u
i
r
e
m
e
n
t
s
:
T
e
n
u
r
10 Years
e
:
P
r
o
f
i
t
p
a
y
m
e
n
t
:
On maturity
P
r
o
f
i
t
R
Competitive
a
t
e
s
:
S
e
r
v
i
Available at all
Askari Bank br
anches
n
g
:
Upto 90% of th
e principle amo
unt
n
c
i
n
g
L
i
m
i
t
s
:
ASKCARD
Askari Bank is committed to provide innovative and competitive sol
utions to banking needs in a more efficient and personalized manne
r. Bank enjoys a strategic competitive advantage over all domestic
players by virtue of its leadership, large network and technological
advancement. In line with tradition of innovation, Askari Bank takes
pride in announcing launch of Askari Bank's Debit Card.
Askari Debit Card means freedom, comfort, convenience and secur
ity, so that one can have retail transactions with complete peace of
mind. Askari Debit Card is new shopping companion which enhanc
es quality of life by letting you do shopping, dine at restaurants, pay
utility bills, transfer funds, withdraw and deposit cash through ATM
anywhere, anytime.
"Convenience at its best"
Why ASKCARD?
Free of Cost (24) hours Global Accidental Life Insurance upto Rs. 500,
000/- for every cardholder irrespective of balance in the account
Free ATM Cash Withdrawal Insurance upto daily cash withdrawal limit
of the cardholder against snatching, armed hold-up or forced deprivatio
n of money
(Each year)
(Each year)
No hidden charges
Supplementary Cards
Smart Cash
Product Featuring:
Resid
Borro
wer:
ent Pa
kistani
Nation
als
Facilit
Perso
y:
nal Lin
e of C
redit.
Maxim
um up
to Rs.
500,0
00/-(C
Finan
lean)
cing L
Maxim
imits:
um up
to Rs.
1 Milli
on (Se
cured)
One y
Tenor:
ear (re
newab
le).
Month
ly debt
Repa
yment:
servici
ng on
the ou
tstandi
ng bal
ance.
Marku
p Rat
es:
Comp
etitive.
Servic
Availa
ing:
ble at
all Ask
ari Ba
nk Bra
nches
Balan
ce Tra
nsfer
Facilit
Av
ailable.
y:
Eligibility to Apply:
Age:
Bet
wee
n 21
to 6
5 Ye
Income:
ars.
Mini
mu
m gr
oss
mon
thly i
nco
me
Rs.
25,0
00/-
Employ
only.
a) S
ment:
alari
ed:
Mini
mu
m le
ngth
of c
onfir
med
servi
ce w
ith p
rese
nt e
mpl
oyer
is si
xm
onth
s wit
hat
otal l
engt
h of
one
year
servi
ce.
b) S
elf E
mpl
oye
d: M
inim
um
1 ye
ar in
busi
ness.
(Ag
ainst
secu
Charge
rity).
As p
s/Fees:
er c
urre
nt sc
hed
ule
of c
harg
es.
Personal Finance
One of the quickest approval processes around
One can avail unlimited opportunities through Askari Banks Person
al Finance. With unmatched financing features in terms of loan amo
unt, payback period and most affordable monthly installments, Aska
ri Banks Personal Finance makes sure that you get the most out of
your loan. No matter what your need is, Askari Bank has more way
s to serve you than ever before.
Product Featuring:
Borro
Resid
wer:
ent P
akista
ni Nat
ionals.
Facilit
y:
Term
Finan
ce
Maxi
mum
Finan
upto
cing L
Rs. 5
imits:
00,00
0/. (Cl
ean)
Maxi
mum
upto
Rs. 1
Millio
n. (Se
cure
d)
Maxi
mum
Tenor:
upto
5 Yea
rs
Mont
Repay
hly In
ment:
stallm
Marku
ents
Comp
p Rat
etitive
es:
Availa
ble at
Servic
ing:
all As
kari B
ank b
ranch
es
Balan
ce Tra
nsfer
Facilit
Availa
ble
y:
Eligibility to Apply:
Between 21 t
o 65 years.
e
:
I
Minimum gro
ss monthly in
come of Rs. 1
0,000/- only.
m
e
:
F
Maximum upt
o Rs. 500,000
/. (Clean)
a
n
c
i
n
g
L
i
m
i
t
s
:
Product specification:
Ever since the inception of life, shelter has been rated among the pr
imary needs of mankind, owning a home for oneself still remains an
exclusive dream for many. Askari Bank has made the realization of
your dream to have a house of your very own possible. Whether yo
u plan to build a house, tailor made to your requirements or buy a c
onstructed house, Askari mortgage finance enables you to pursue y
our goal without any problems. Mortgage is a premium home financ
ing product for customers aged between 23 65 years belonging to
the upper, upper middle and middle income groups, residing in the
urban areas of Pakistan.
Business Finance
You always wanted to put in that extra money into your business, w
hich makes it grow... and grow. Now you can stop worrying about y
our daily cash requirements, and start enjoying our unique Askari B
usiness Finance facility.
Product Featuring:
Resident
or
Pakistani
ro
Nationals.
w
er:
Fa
Running F
cil
inance/Ter
ity:
m Finance.
Fi
Maximum
na
upto Rs.1.
nc
0 Million
in
Maximum
upto Rs.5
Li
0.0 Million
mi
ts:
Pr
Residentia
im
l & Comm
ar
ercial / Bui
lt up Prop
Se
cu
d.
rit
y:
M
Running F
od
inance: O
ne year lin
of
e of credit
Fi
(renewabl
na
e).
nc
in
g:
R
Running F
ep
inance: M
ay
onthly deb
t servicing
en
on the out
t:
standing b
alance.
Competitiv
ar
e.
ku
p
R
at
es:
Se
Available
rvi
at all Aska
ci
ri Bank Br
ng:
B
anches.
Available
al
an
ce
Tr
an
sf
er
Fa
cil
ity:
Eligibility to Apply:
Age:
21 to
65 Y
Borrow
ears.
Resi
ers:
dent
Paki
stani
Nati
onal
Busine
s.
Maxi
ss Req
mum
uireme
upto
nts:
Rs.
500,
000/.
(Cle
an)
Emplo
Mini
yment:
mum
one
yea
r's b
usin
ess
or pr
ofes
sion
al ex
perie
nce i
n the
pres
ent b
usin
Charge
ess
As p
/Fees:
er cu
rrent
Sche
dule
of ch
arge
s
2) Price
Letter of credit
Guarantees
Bill discounting
Remittances
Lockers
Bank drafts
Appraisal fee
Bank commission
3) Promotion
Above the line promotion: Promotion in the media (e.g. TV, radio, ne
wspapers, Internet, Mobile Phones, and, historically, illustrated songs) i
n which the advertiser pays an advertising agency to place the ad
Below the line promotion: All other promotion. Much of this is intende
d to be subtle enough for the consumer to be unaware that promotion i
s taking place. E.g. sponsorship, product placement, endorsements, sa
les promotion, merchandising, direct mail, personal selling, public relati
ons, trade shows
Askari bank does its promotion through following ways:
Brochures
Banners
Billboards
Ad in the newspaper
Direct marketing
Public relations
4) Place
Last marketing tool is placement, which includes the various activiti
es a bank undertakes to make product and services easily accessib
le or available to customers. ACBL has opened almost all its branch
es at Commercial areas or near to commercial areas so that the cu
stomers or clients face no problem in reaching to the bank.
Competitive strategy
Analysis
I m conducting the competitive analysis between ACBL and Bank Al
falah with respect to the working of their HR department, Before co
nducting an analysis it is feasible to briefly overview the competitor
s findings.
Introduction:
Job advertisement
Segment
Staff
Candidates Supervisor
Step5:
HR conducted initial interviews of interested employees, fill
ed IAF and sent it to the relevant segment.
Step6:
Segment receives the application from recruitment and call
s the candidates for interview.
Step7:
Interview assessment form/ Comments of segment are fill
ed for the candidate with details if he/she is selected or rejected.
IF SELECTED:
If candidate is selected then:
Step8:
Recruitment sends an e-mail request containing relevant inf
ormation to HR Operations for the issuance of internal transfer lette
r to the candidate. In reply to the e-mail HR Operations issues a tra
nsfer order to the candidate.
Step9:
HR files interview Assessment form into the employees pers
onal file. Master Database is updated.
Step10:
Candidates Supervisor receives the mail from HR with app
ropriate release date for the candidate.
IF REJECTED:
After step 7 if candidate is rejected then:
Step8:
Staff and his Supervisor are informed.
Segment
Step1:
If an appropriate resource is not selected from within the b
ank, HR revisits the ERF (Employees Requisition Form) and searc
hes for resumes and searches for resumes from the HR Talent Pool
(On-Line)
Step2:
Resumes are selected / screened by HR recruitment as per
the given criteria. These are scrutinized, short listed and forwarded
to the segment.
Step3:
Segment receives the short listed resumes and contacts th
e candidate for interview.
Step4:
The Segment completes the IAF with detailed comments (R
ecommended package, positive traits etc).
Clearly indicating if the candidate is RECOMMENDED or DECLINE
D sent to HR with all delegated approvals.
Step5:
Interview Assessment Form is received by HR.
IF DECLINED:
If resume is rejected then:
Step6:
Process is closed.
IF RECOMMENDED:
If resume is recommended then:
Step6:
Candidate is called for a final interview. HR completes the I
AF and discusses the salary package with the candidate.
Step7:
HR prepares the letter of Appointment and calls candidates
for collection.
Note:
CVS received through walk-in, post & or e-mail will also be uploaded o
n the Talent Pool after through screening by HR.
3: Job advertisement:
Hiring through job advertisement is divid
Marketing
Step 1:
If an appropriate resource is not selected from within the b
ank Internal Broadcast & HR Talent Pool, HR will then proceed with
the advertisement channel.
Step 2:
Recruitment will draft a write up for the vacant position and
send it to Marketing along with a target date for publishing.
Step 3:
Marketing will coordinate with the agency and develop a s
Step 4:
Marketing will receive the sample proof of the advertiseme
nt from the agency, proof read it and will forward it to HR for approv
al.
Step 5:
HR receives the sample proof from Marketing, coordinates
with the segment. If OK HR gets final approved sample proof to Ma
rketing.
Step 6:
Marketing receives the approved sample proof from HR an
d coordinate with the agency to place the advertisement in the local
newspaper.
Introduction:
(Bank Alfalah)
Services:
Bank is offering different types of services for all its valu
ed customers. These services are: ATM, online banking, home loan,
car financing etc.
Credit administration/documentation
Time management
Personal effectiveness
It is obligatory for each staff member of the bank to attend at least o
ne training program. Wherever the training department is unable to
Reward system:
Each manager submit the report of his subordin
ates to his boss in which they evaluate his employees from different
dimensions and if audit report of any branch show negative impact t
han all types of increments are stopped of all employees of that bra
nch.
Analysis
Analyzing the training and development practice of ACBL and comp
Financial performance:
Askari Bank was able to post an after-tax net income of Rs 1.18bn i
n FY09, which is 187% increase from the previous year of FY08. Th
e bank has been able to accomplish this through various ways. Its
year-on-year mark-up interest income increased by 23%, mountin
g to Rs 22bn in FY09. Following this, we observed that there was a
huge increase in particulars of provision for impairment in value o
f investments by 1500%, as the amounted augmented to Rs 76,784
2009
2008
62,177
266
Shares - Listed
47,015
6,6
82
Such high increase in sale of investments, have yielded in high pro
fits for the bank for FY09.
The scenario of the NPLs does not seem very favorable for the ban
k. The NPLs have consistently seen an increase, indicating that the
bank is either not very efficient at collecting the outstanding loans
or has a very liberal loan distribution policy. Their pace of growth
has outdone the rate of increase in advances. The bank may face c
onsiderable credit risk from its loan defaulters. In FY06, bank s adv
ances witnessed marginal increases in consumer finances, especia
lly Ijara financing, corporate financing while they observed a slight
decline in the shares of SME and agriculture.
The assets of the bank witnessed some shift in their composition a
way from loans towards investments. This has also been the trend
industry wide to meet the MCR requirements as directed by the St
ate Bank of Pakistan. Though these investments offer lower return
s than the loans, they are more preferable in this situation for the
In FY09, the market value rose after the nine months ending showi
ng a late year push towards the recovery of the economy. As the i
nvestors gained confidence in the company, the results were show
n as the EPS surged from Rs 0.95 to Rs 2.18 in FY09. However the d
ividend payout remains very low, as low as 0.07%.
The bank has maintained its reputation as one of the consistent pa
yers of dividends. This year the bank did not give any cash dividen
ds rather it gave stock dividend, this would help bank in two ways,
first, by maintaining liquidity and second by making up for the MC
R requirements.
The bank was able to maintain a healthy 11.5% contrast to mini
mum requirement of 10%.
The required minimum capital requirement can be achieved by th
e bank, either by fresh capital injection or retention of profits. The
stock dividend declared will be counted towards the required paid
up capital of the bank pending completion of the formalities for is
suance of bonus shares. The bank intends to meet this requireme
nt by way of bonus issue subsequent to balance sheet date, in this
year.
Future outlook
The banking industry can be seen positively as some private credit i
ncrease is observed in the year-end of 2009 and started picking up.
With key policy rate at 12.5% the SBP maintains to keep a balance
and wants to increase the circulation of the money in the economy
and not keeping it tied up.
On the other hand, much of the investments still lie on the governm
ent securities as the government borrowing.
With uncertainty still hovering in the economy and the inflation till F
eb 2010 still remains high at 13.8%, the key policy rate is designed
neither to be tight nor to be sluggish. Therefore much can be expec
ted in the upcoming year, as the pace for economy recovery along
with increase private credit can uplift the economic cycle.
Concerns of SLR and CRR are not in consideration for most banks
as healthy safety is kept to ensure no bankruptcy is involved.
The only matter of concern would remain the outcome of the new m
onetary policy which is said to be designed in a way to boost the ec
onomy.
Askari Bank in particular remains strong in terms of their balance sh
eet as their asset base is strong and their liabilities are more of long
term. Along with this the current year performance is considered ext
raordinary. Therefore positive expectation can be anticipated for the
bank.
S.W.O.T. Analysis
SWOT analysis gives a very good analysis of what the firm is, what
it wants and what can it do to get better than it is at the same time i
ndicating the factors that could lead to a havoc.
SWOT is an abbreviation for;
Strength
Weaknesses
Opportunities
Threats
Strengths
Askari Bank has set its firm foot in Pakistan and has gained its stre
ngths over the period of time an effort of enlisting its strengths can
be done as follow;
The past decade has been the biggest strength because that was the ti
me when there was not much of the competition and it gave time for th
e company to adjust and now it has grown better than the rest
It has a good reward policy of giving bonuses and incentives for its cus
tomers.
The MIS they use in the company is always updated well ahead of time
giving the bank an upper edge
The bank has also started ATM facility in most of its branches. 24-hour
banking is new trend in Pakistan and ACBL has also taken apart in this
trend.
One distinctive feature of the bank is that it is the only bank working for
the welfare of army officers, which was established by Army Welfare Tr
ust.
The productivity of the bank is very good. Bank is providing a high qual
ity service to its customers.
ACBL have strength that most of the imports & exports which are done
are handled by ACBL.
Weaknesses
code of conduct.
Bank is not introducing new products and new saying schemes. Bank
should boost the product development and increase the range of facilit
ies offered for customers..
Opportunities
The plastic money business still has a lot of potential to grow so it give
s the company an opportunity to introduce new products and services.
Threats
Political instability.
Politics involved in a working atmosphere has never done well for the
company it has always gone the other way round.
LEARNING
One of the most important aims of students life is to express
himself correctly and adequately, with this belief in mind, I decided t
Duties
I performed different duties that were assigned to me through
Accounts department
Account opening
Credits
Remittances
Accomplishments
I worked in different departments, but the knowledge I gaine
to
write
proposals
in
the
real
situation.
Problems Encountered
Internship was a good experience for me, but there are s
in
business
world.
For
me
it
is
very
beneficial.
best way to solve this problem was dont hold on form but had to i
nterpret and translate them from the context. For translating Urdu in
to English, I was assigned from Credit officer to translate advertise
ment and credit manuals. I havent been accustomed to using credit
language, so it was quite difficult for me. I coped with this by learnin
g advertising language and idiom used in Internet, magazine and n
ewspaper in order to be guideline in using credit language appropri
ately and accurately.
Bank is facing a high tax rate, which affects its profitability and attractiv
eness for new entrants.
Middle class and low income group have limited access to bank credit.
Recommendations
Besides taking care of the above mentioned problems there are so
me recommendations which can be advised to the bank, which can
be helpful for the Bank:
1. Employees should be given a course of training from time to tim
e or they can also use the on the Job training method. Training
can be done in the following areas
Conclusion
Banking is one of the most sensitive businesses all over the world as b
anks play very vital role in the economy of a country and Pakistan is no
exemption.
Askari Bank has been growing both in size and profits for past few year
s and is one of the most reputed groups. It has gained a good repute in
the banking sector of Pakistan.
Employees are the most important assets for any organization as the s
uccess of any organization lye in their hands, therefore there is a need
the group to focus on the needs of their employees. The bank has to o
vercome its weaknesses and should avail the opportunities available in
the industry, because competition is very intense particularly in the ban
king sector these days the organization which offers far better services
to its customers than its rivals will succeed ultimately.
Bibliography
www.askaribank.com.pk
www.wikipedia.com
www.google.com
www.answers.com
www.sbp.org.pk