1 Introduction

I had done my internship in Askari bank limited (Gujrat Branch), which came into
existence in 1995, and have all departments currently working in Pakistan with the
branch network of more than 349 branches.

1.1.1 Scope
The scope of my internship is to study and understand the structure of Askari Bank
Limited Gujrat branch, its report with its clients and the services it is providing to them. It
is an excellent opportunity for job training and getting experience in my desired field
(Finance).

1.1.2 Aim
The general purpose of my internship is to get a core understanding about the functions
performed in the commercial banking and to gets a taste of real working environment.

The particular reason of this internship is that; it is (partial)requirement for completion of

my M.com degree.

1.1.3 Objectives
 Itprovidea good way for learning.
 Help in my future study and professional life.
 Develop skills and provide sense of responsibility.
 To get idea about actual business environment and how actually done work in
organization.

1.2 Overview of the Organization

1.2.1 Brief History

Askari Bank came into existence in Pakistan on October 9, 1991, as a public limited
company. It started its working on April 1, 1992, and is engaged in the business of
banking, as defined in the Banking Companies Ordinance, 1962. The Bank is listed on
Lahore, Karachi and Islamabad Stock Exchange.

Page 1 of 46
Now Askari Bank has a wide network of 349 branches /sub-branches, plus 78 dedicated
for Islamic banking, and a bank branch in Bahrain.

Since its commencement, the bank has focused on growth by improving the quality of
services, investment in people and technology, using its widespread branch network
which includes Islamic and Agricultural banking. Askari Investment Management
Limited (AIML) and Askari Securities Limited (ASL) are subsidiaries of Askari Bank
operating in managing mutual funds and shares brokerage, respectively.

Corporate Social Responsibility is an important part of the way ACB do business. In

order to accomplish their CSR tasks, they encourage public interest by supporting
community growth and development through sponsoring social service events, sports,
and environment supporting education and also contribute in socio-cultural activities.

The bank was declared as “Best Bank in Pakistan” in 2001 in Global Finance. Askari
Bank has a spacious range of network covering almost every region of Pakistan.

Askari is providing banking solutions, alongside it has a broad collection of Corporate,

Consumer, and Islamic Banking products.

AB is offering Internet banking Services. Askari Bank believes that balanced growth is
the key to remain in business in today’s global banking atmosphere.

Vision

“To be the bank of first choice in the region”

Values

The core values which are foundation of corporate activities of Askari Commercial Bank
are following;

 Commitment (about customer satisfaction and our quality services.)

 Integrity (honest and have strong moral principles and professional ethics).
 Fairness (conformity with regulations).
 Teamwork (combined work of staff to achieve the goal of bank).

Page 2 of 46
  Service (improvement of society and quality of life).

Mission

“To be the leading private sector bank in Pakistan with an international presence,
delivering quality service through innovative technology and effective human resource
management in a modern and progressive organizational culture of meritocracy,
maintaining high ethical and professional standards, while providing enhanced value to
all our stakeholders, and contributing to society.”

1.2.2 Nature of the Organization

As already defined, Askari bank limited isa commercial bank and is mainwork in the
industry of banking as defined in the banking company’s ordinance, 1962.

1.2.3 Business Volume& Rewards in last 5 Years

Business volume

Year Total Assets Total Equity Customer No.of Branches

31,Dec 2011 282.17 Billion 14.27 Billion 965,764 275

31,Dec 2012 306.191 Billion 16.971 Billion 972,096 288

31,Dec 2013 354.327 Billion 17.949 Billion 984,485 305

31,Dec 2014 447.124 Billion 18.004 Billion 999,764 325

31,Dec 2015 492.756 Billion 20.776 Billion 1,015,485 349

Rewards

Askari Bank has been given the "The Best Annual Report Award for the year 2010"by
Institute of Chartered Accountants in Pakistan &The Institute of Cost and Management
Accountants in Pakistan.Askari Bank has achieved the worthless“The Best Retail
Banking Award 2011” by Pakistan Guarantee Export Corporation Ltd. 2012. Askari bank
has also recognized by the South Asian Federation of Accountants in the SAARC region
as received “The Best Presented Annual Accounts 2011” from SAFA.

Page 3 of 46
In 2013 Askari Bank received valued award that is “The Best Consumer Banking Award
2014” by the Consumer Association of Pakistan. AB has also received the "Best
Corporate Report Award for the year 2014& 2015" by ICAP & ICMAP.

Pakistan Credit Rating Agency Limited (PACRA) has rated the Askari bank
A1+“(Obligations supported by the highest capacity for timely repayment)” for short
term and AA “(indicate very strong capacity for timely payment of financial
commitments)”for the long term.

1.2.4 Product/Service Lines

1.2.4.1 Branch Banking (Banking with a Personal Touch)

Askari Bank has anextensivenetwork of branches in Pakistan meeting the needs of every
type of customer in the country. Askari bank has branches in all over the country, with
the purpose of provide theircustomers variety of products & services meeting their entire
banking needs in the form of Commercial, Agricultural, Consumer, Islamic and
Corporate Banking.

Following products are offered by Branch Banking;

 Askari Bachat Account

 PaishgiMunafa Account
 Value Plus Current Account
 Value Plus Saving Deposits
 Askari Waqaar Account
 Askari Asaan Account

1.2.4.2 Consumer Banking Services (Colors of Life)

Consumer Banking Services (CBS) partition or division of products and services largely
consist of personal finance, Ask4Car finance, smart cash, mortgage finance, Askari
Credit Cards (Master Card), Corporate Credit Cards, Zarai Credit Cards and i-Net
Banking (Internet Banking Service).

Askari bank consumer finance is increasing its target market and improving its
investments through new and enhanced products and services. More concentration has
Page 4 of 46
been given to the opportunities which involve strategic to receivesustainable returns.
Askari bank is focusing on secured consumer lending to reduce risk on its all investment
(portfolio). The bank is also aim large its product offerings with enhancing and good
quality.

The consumer banking services division is badly influenceby inflation and change of
interest rates.The condition of the economy of Pakistan more decline to the
previouslyshrinking market of this segment. In which situation Askari bank has
redesigned its strategy and concentrates on loans problems and improving recovery
efforts and internal control. Also a very good and careful approach adopted for fresh
lending during the year. The results of new strategy are noticeable.

Current product offerings include:

 Credit card
 Ask 4 Car
 Personal finance
 Mortgage finance
 Askari debit cards
 I-net banking (internet banking service)
 Askari touch ‘N’ pay (electronic bill payment services)

1.2.4.3 Corporate Banking (Your Access to Excellence)

The Corporate Banking Division of Askari bank is working for meeting the requirements
and needs of its corporate and institutional customers/clients. In which segment public
sector enterprises are also served. Askari bank is using the long relationship based
business model with the key objective of enhancing customer service.

Corporate Banking Division operates through 3 focused Corporate Centers/Regions in

Karachi, Lahore and Islamabad, having a highly skilled relationship management team
comprising of capable, knowledgeable and industry experienced individuals.

Page 5 of 46
Askari Bank’s Corporate Banking Division is very dedicatedin providing best financial
solutions about daily financing needs of corporation.

In Corporate Banking Division, there is a sub division named The Investment Banking
Division (IBD), which provides financial consultancy& capital raising services to
institutional and corporate clients. It is offering a variety of products and services to
maximize returns on client’s investments.

The investment Banking Division offers many services to the corporations and
institutional clients and IBD is very fine in providingappropriate assistance to them. It
provides a specific solution according to the need or problem of an individual client, that
increase shareholders’ valueand the market competitiveness of the corporation.

This IBDgroup consists of highly competent, experience and knowledgeable individuals

supported by more than 35 relationship managers out of 3 regions(Islamabad, Karachi,
and Lahore) in the country.

So Corporate Banking Division (CBD) and Investment Banking collectively called

Corporate and Investment Banking (CIBG) work jointly and providefollowing product
offerings:

 Term finance facilities

 Working capital financings
 Structured trade finance facilities
 Guarantees
 Letters of credit
 Fund transfers / remittances
 Bill discounting
 Export financing
 Receivable discounting
 Corporate and strategic advisory services
 Loan syndications
 Project finance transactions

Page 6 of 46
  Equity financings
 Debt swaps
 Balance sheet restructuring services
 Debt and equity financing options through capital markets

1.2.4.4 Agriculture Banking (Turning Green into Gold)

The role of the agriculture industry in Pakistan economy is very vital and many people in
the Pakistan are directly or indirectly attached it.Suitable climatic condition and proper
atmosphere of Pakistan for agriculture country has good for the development of this
sector. Askari Bank’s Agriculture and Rural Business Division capture this opportunity
and started give finance to the farmers in convenient affordable and respectable
manner.Agriculture and Rural Business Division is one of the top ranked agriculture
division in the market; providing novel product.It is very popular with in customers as it
is continuouslyexceeding fromthe allocated goal for agriculture financing as in every
year.

Now Agriculture department offer different product and loan for the develop of Pakistan
and get high return on agricultural loan. The agricultural department of any bank play a
vital role in the GDP growth of country and also improve the farmer life.

Agriculture Credit Brand Includes:

 Askari Kissan Evergreen Finance

 Askari Kissan Tractor Finance
 Askari kissan transport finance
 Ask Sona Card
 Askari Kissan Farm Mechanization Finance
 Askari Kissan Aabpashi Finance
 Green House and Tunnel Finance
 Farm Storage Finance
 Model Dairy Finance
 Gold Fish Finance
 Askari Kissan Livestock development Finance
Page 7 of 46
1.2.4.5 Islamic Banking (A Heritage of Trust)
Islamic Banking of Askari bankis opened to customer a Halal banking mean banking
with Shariah standards.Currently 78 branches and 10 sub-branches are dedicated to
Islamic banking working in major cities of Pakistan, which are covering four provinces
and the Capital. Askari bank is considering of increasing its Islamic banking with
betterproduct offering but according to principles of Shariah. All finances obtained by the
Islamic banking are put in Halal Investments. Islamic bank of Askari bank has toget
approval of a product from Shariah advisor of bank before its offering.All the funds of
Islamic banking are managedseparately from the funds of conventional or commercial
banking.

For all these product the eligibility criteria are as follow;

 Salaried person
 Pakistani
 Bank statement
 Utility bills

Products of Islamic Banking are following;

 Ijarah
 Musharakah
 Murabah

1.2.5 PESTEL Analysis

A complete understanding of market is very necessary to provide good quality and new
product and services on the behalf of customer needs. Political and legal changes,
introduction of technology, change in social and economic trends may change the
customer needs. All this require great attention of management on external environment
to get new opportunities and help to improve the existing offers. The PESTEL analysis of
Askari bank is next;

The PESTEL includes

Page 8 of 46
  Political and legal environment
 Economic trends
 Social cultural environment
 Technological factors

1.2.5.1 Political and Legal Environment

Banks are the institutions that are strongly influenced by political and legal
considerations. We all know that Pakistan’s political environment is unstable political
environments and Askari Bank is operating in it. On anotherhand there is a very fragile
and unpopular administration of Pakistan and on the other hand country is in state of war
against terror. This Political instability can lead to changes in rules, regulations and
policies which can be favorable or unfavorable. As Askari bank is part of Askari Welfare
Trust that is run by Pakistan Army it has some benefitover other banks but political
instability affects the customers of Askari that ultimately affect the Askari business. In
Pakistan State Bank of Pakistan (SBP) is the central that control all the banks in country
and provide regulation that all banks must follow. So change in policies of SBP affect the
Askari as it affects the other banks in industry.

1.2.5.2 Economic Trends

Changes in economic variables like inflation, per capita income, interest rate influence
the bank. Economy of Pakistan is facing issues likeunemployment, poverty etc which
hamper the business expansion. SBPinfluence the business of bank as recent decrease in
interest rate will saving which will decrease the deposits of Askari bank. Banks want to
lend more money to receive more interest for bank. The borrowing power of customers
identified by following economic trends;

 Exchange Rates
 Per Capita Income
 Inflation Rate
 Interest Rate

Page 9 of 46
1.2.5.3 Social-Cultural Environment
There has been a noticeable increase in the use of credit cards in Pakistan but this is
currently limited to educated class only. Internet users are also increasing in the country
that increases net banking mean making transactions electronically,particularly payments
of electricity and other utility bills. Askari bank is helping economically weak division of
society and also providing need based funding to all segments of the society.

1.2.5.4 Technological Factors

The advancements in computer and communication give birth to anywhere banking
concept. The use of ATM and internet banking facilitates this anywhere banking. The
banks now have started to issuing debit card or smart card to be use for making
payments. Thistechnology change results in better banking services and enhancing
contestamong banks.

1.2.6 Contribution towards Economic Development

Banks play a very important and considerable role in improving and upholding the
economic growth of country. Banks are the institution that nowadays efficiently moving
funds from savers to lender to provide benefit to both parties and help in the development
of an economy of country as a whole. Today, almost every sector and industry of country
have taken loans from banks for the expansion of business, meeting temporary cash
problems etc. These expansions ultimately boost the economy of country.

Askari bank is playing a very constructive role in development of Pakistan’s economy as

it is giving loans to many businesses and individuals and also taking part in improving
economy of Pakistan by collecting foreign currencies, as it also very important for
Pakistani economy.

Askari bank is giving credit/loan to almost every appropriate customer irrespective of

industry. This means that it is contributing for the betterment of Pakistani economy are
widespread. Askari bank is giving loan to farmers (kissan) for dairy, AAB PAASHI,
livestock, purchase of tractor, seeds and fertilizers etc. which helps the farmers to
increase the production of agri products in country that will increase the GDP of country

Page 10 of 46
and also increase the exporting of agri products, which will increase the foreign reserve
improve the balance of payment of country.

Askari bank is also giving loan to miniature borrowers which are ignored by some other
lending institution. Askari bank is helping the small businessmen through these finances,
to grow and contribute more towards economic development.

Askari bank is also providing funds to businesses that they use for the acquisition of
modern technology that increase their production with less resources, which eventually
will benefit the economy. Askari bank is providing ATM cards, smart cards, credit cards,
mobile banking, internet banking etc that are easy to use and save the time and cost of
transaction. Askari bank is also helping the individual getting self-sufficiency mean
independence.

As it is already said, that banks are contributing towards economy by giving loans. It is
obvious that more deposit bank have; more loans it will make. The deposits in Askari
bank are increasing day by day, which means that Askari bank contributions towards
development of economy of Pakistan are also increasing.

So, banks and specially Askari bank are playing momentous role in the development of
an economy and it is not wrong to say that economic development is difficult, if not
impossible without banks or banking system.

1.2.7 Corporate Social Responsibility

“A society grows great when old men plant trees whose shade they know they shall never
sit in.”

Askari bank believes in giving back to society that he took form it. Askari bank takes
care of society and people of society. Bank is providing suitable working environment to
its employees, so they can work efficiently, causing no damage to them.

Page 11 of 46
Corporate SocialResponsibility (CSR) of Askari bank is an important and devoted part
banks’ business. The bank aggressively took part in the events that are for wellbeing of
the society.

Askari bank had sponsored many events in past for the betterment of the people and for
the environment as well. Askari bank will continue its efforts of supporting social cause.
The bank is also working with NGOs, which are working for the betterment of people,
society and environment of Pakistan.

Social responsibility is very important for the country in which Askari bank efforts for
social responsibility this is a good way to build a good image in customer mind. Support
all associations and NGOs for development of people.

Askari bank is engaged in CSR in many ways. It is sponsoring sports, educational and
environmental events. Askari bank sponsored the 1st National Talent Exhibition of
Persons with Disabilities and working with many charitable associations that are working
for the development of society e.g. Agha Khan Hospital and Medical College
Foundation, ShaukatKhanum Memorial Trust, World Wildlife Fund (WWF).

Page 12 of 46
1.3 Organization Structure

1.3.1 Organization Hierarchy Chart

Board of Directors

President & Chief Executives

President Support Office

GroupHead
Head Group Head Corporate Banking
Group
Operation andCredit
Credit and Financial Institution
Operation and

System & Credit Human Electronic Electronic

Operation Resource Technology Technology
Div. Div.
Div. Div. Div.

Corporate Retail Business International Credit Card

Planning Div. Banking Div. Transformation
Div. Div.
Div.

Page 13 of 46
Organizational structure of Askari bank, Gujrat branch

Branch Manager

Manager Operation Manager Credit

Advances Credit Card

Deposit Cash Clearing Bills & Accounts Lockers

Remittance

Board of Directors

 Mr. Syed M. Husaini (President & Chief Executive)

 Lt. Gen.khalid nawaz khan, (Chairman Board of Directors)
 Lt. Gen. Shaafqat Ahmed (Chairman Executive Committee)
 Mr. M. Haroon Aslam (Company Secretary)
 Mr. Shahid Mahmud
 Mr. ZaffarAhmed Khan
 Dr. Bashir Ahmed Khan
 Mr. Qaisr Javed
 Mr. Ali Noormahomed Rattansey
 Mr. Muhammad Riazul Haq
 Mr. Manzoor Ahmed
 Mr. Nadeem inayat

Chief Financial Officer

Mr. Saleem Anwar

Page 14 of 46
Audit Committee

 Dr. Bashir Ahmad Khan (Chairman)

 Mr. Ali Noormahomed Rattansey
 Mr. Wazir Ali Khoja
 Khawaja Jalaluddin Roomi

Auditors

Taseer Hadi & Co.Chartered Accountants, 6th Floor, State Life Building #5 Jinnah
Avenue, Islamabad.

Shariah Advisor

Dr. Muhammad TahirMansoori

Legal Advisors

Rizvi, Isa, Afridi& Angell

1.3.2 Number of Employees

On 22 Oct, 2015 Askari bank has almost 9000 (8994) employees, working
toprovideservices to valuable customers of Askari, in every region of Pakistan.

1.3.3 Head Office

AWT Plaza

P.O.Box 1084, The Mall, Rawalpindi.

Tel: (051) 9063000

Fax: (051) 9272455

Website: www.askaribank.com.pk

E-Mail: Webmaster@Askaribank.Com.Pk

Page 15 of 46
1.3.4 Departments in Askari Bank
Normally every bank has same departments. So, departments working in Askari bank are
next;

 Cash department
 Account Opening department
 Clearing department
 Credit department

1.3.4.1 Cash Department

As it is obvious department from the name of the department that it is the department in
which give and take of cash took place. The important thing in cash department is the
deposits, money that a customer put in his account. Deposit are the like the blood in the
veins of a bank as it is the money that a bank use to make profit. A bank can also earn
profit as it provide other services to customers but it is deposits that a bank want more
and more. A bank can be successful with higher deposits.It essential function of a bank to
encourage customers to save money in bank and bank then lend this money to borrowers
and take interest from them.

1.3.4.2 Account Opening Department

Account opening department is the department through which banks makes the common
man, their customers. A bank offer different types of bank account for the need of
different people. For opening and account potential customers have to visit the branch of
bank. Account opening officer gives information about different accounts. Then it is up
to the customer that which one he chooses. The account opening form is normally same
for all accounts but the documents that are required may be different. For example, the
original CNIC and photo copy, signature on SS card and filling the account opening form
is requirements that must be met by all potential customers for opening of an account. In
case of partnership account, duplicate of registration certificate and partnership deed is
also required with other general requirements. Account of club and public company are
also having some general and some particular requirements.The bank can close the
account of a customer due to unsatisfactory behavior of customer but in this case bank

Page 16 of 46
should give prior notice or warning to customer. The accounts offered by the Askari
bank are following;

 Minor account
 Current Account
 Saving Account
 Joint Account
 Partnership Accounts
 Limited Company’s Account
 Joint Stock Company Account
 Executor’s And Administrator’s Account
 Clubs, societies & associations accounts
 Other misc. accounts

1.3.4.3 Clearing Department

Clearing is basically a system performed by every branch of all banks. In this department
bank settle cheques and other negotiable instrument that involve other banks in specific
territory. For example, if Askari bank customer brings a cheque of HBL for deposition in
his Askari bank account, it will go to clearing department for clearing of cheque, through
clearing house, which is an association that has representation of all banks working in
Pakistan. In this,chequesdrawn on each other are balanced or settled. The SBP is
responsible for the efficient operation of the clearinghouse. There are 2 types of clearing.

 Inward Clearing: The cheques which are drawn on Askari bank, but presented
on other bank for payment.
 Outward Clearing: The cheques which are drawn on other bank than Askari
bank bur presented on Askari bank for cheque cash.

1.3.4.4 Remittance Department

Remittance department of a bank is all about sending of funds or money at distant place.
Normally, in remittance department funds are transfer from one country to another
country. In remittance,banks receive money in one currency and have to pay to recipient
in another currency. It shows that remittance department also has to choose the best

Page 17 of 46
foreign exchange rate to pay higher cash to customers.Every bank charges certain fees for
this transfer of money.

Remittance department includes the following;

 Banker cheques
 Pay Order
 Traveler’s cheques
 Demand Draft

Banker cheques

Banker's Cheque is pay order or demand draft issued by bank to the individual where the
funds withdrawn from a bank's funds, not from any other individual's account. Normal
cheques withdrawn from individual account to the payee.

Demand Draft (DD)

DD is basically a draft that is payable on its presentment. It facilitates the person to draw
funds from other branch of any other geographical area (city). Normally there are 4
parties involve in DD.

a. Issued branch: which originates or issues the demand draft is issuing or drawing
branch or simply drawer.
b. Payee: The individual or institution who will receive the sum from drawee branch
is called payee.
c. Drawee Branch: Against which draft is written/drawn. It is the branch that will
pay to payee.
d. Purchaser: The individual, who request to issuing branch for making of DD and
pays the fees to the issuing branch is called purchaser.

If Askari bank issued a DD on the request of customer A, against UBL paid to person Z.
The customer A is purchaser, AB is drawer, UBL is drawee and Z is the payee in this
demand draft.

Page 18 of 46
Pay Order

It is a safe mode of payment. Banker’s cheque is another name of Pay order. The single
dissimilarity between demand draft and banker cheque is that; difference between issuing
and drawee branch is not well specified. The making procedure of DD and Pay Order is
same.

Traveler’s Cheques (TC)

TC’s are basically the piece of paper issued by the bank that is used in place of
currency/money. Many institution and businesses acceptTraveler cheque for payments.
Askari bank issued TC without any fees. Money is given to bank by the customer through
cheque, cash payment, or debiting form customer account and then bank gives TC to
customer in return. It can be of Rs. 10,000, Rs. 25,000, Rs. 50,000 or Rs. 500,000. 3
copies of Travelers’ cheque are arranged. One for the head office, 2nd is given to
customer and third is retained by the issuing branch. It can be easily cancelled if lost or
stolen.

1.3.4.5 Credit Department

CD or Credit department of Askari bank is the department from which most of its
revenue comes. This shows; how important this department is for bank. The key source
of income of bank is interest (cost charged by the bank for fund lending) and interest is
earned after giving loan to customer. But this does not mean that bank give loan to all
borrowers who came to ask for loan. There is a criterion that bank has set and customers
have to meet this criterion to qualify for receiving finance form bank. Askari bank
ensures safety, condition of potential borrower, suitability before approving loan to
borrower.

Askari bank provides two types of credit to its customers which are;

i. Fund Based Finance

ii. Non-fund Based Finance

Page 19 of 46
Fun Based Finance

In this cash transferred is made from lender to borrower’s account. It includes;

 Running finance
 Cash finance
 Term finance
 Personnel finance

Non Funded Based Finance

In this no cash transferred is made. It includes LC and LG.

In Askari bank credit department also advances loan specially for kissan (farmers) as it
gives credit to farmers for buying seeds, fertilizers, tractors etc for providing them
assistance to earn and contribute more.

1.3.4.6 Foreign Exchange

Foreign exchange is not a separate department in Askari bank. It basically deals with
foreign currency. If a customer wants to open an account in foreign currency, account
opening department will deal with customer. Similarly, transfer, deposit and foreign
remittance are also done in other departments of bank.

1.3.5 Comments on Organizational Structure

Askari Bank (AB) has the developed organizational structure for achieving the goals and
fulfilling the requirements of organization. In this structure, all the departments are
achieving their objectives in timely manner. The growth and increase in its customers is
showing that the company organizational structure is doing and information flow is good
in organization.

Page 20 of 46
1.4 Internee Work

1.4.1 Concise Introduction of the Branch

I had my internship in Askari bank, Gujrat Branch.

Introduction of my internship branch is following;

City Gujrat
Branch Code 0037
Manager Mr. Syed Tanveer 053-3530178
Manager (Ops) Mr. Asif Malhi 053-7536285
Address : Hassan Plaza, G.T. Road, GUJRAT
Fax No: 053-3530179
PABX #: (053) 3530164-65

The duration of my internship was; from 22thOctber to 14thDecember 2015.

1.4.2 Detail of Supervisor:

My supervisor during my internship in Askari bank, Gujrat branch was Sir
EhtishamZafar Bhatti. His designation is clearing officer. He is very cooperative and
helpful man.

1.4.3 Weekly timetable

1st week (Agri Finance Department)

Agri Finance Officer Sir Amir Sehzad Guide during internship.

1st week form 22th Oct to 28th Oct (2015), (Monday to Sunday)

Date Tasks
22th October 1st day at internship, Reported to Manager
operation, Introduction of all bank employees.
Manager operations take me to the Branch
23th October Manager office where educated me about certain
rules.

Page 21 of 46
 I was sent to agri credit department, where
24th October department officer told me general things about the
agri loan.
Agri department officer told me requirement for
25thOctober the loan, and give me some documents for
understanding.
26thOctober Told me about the differentypes of products
offered by the Askari agri department.

27th, 28th October Holiday.

2nd week (Account Opening Department)

From 29th October to 5th November, (Monday to Sunday)

Accounting Opening Officer Asim SehzadGuide during internship.

Date Tasks
I sent to account opening department and the
29th October AOD officer give me account opening form
(AOF) to understand.
AOD officer told me about the AOF, mean where
30thOctober customer signs and which information is must
require. Observed the customer when they are
filling the AOF.
Gave me a brief detail about the accounts type,
01stNovember their code used by Askari bank and how Askari
bank account no. is actually made.
Filled first AOF for customer and then assisted
02ndNovember customers in AOF filling.
03rdNovember Told me about the entering data of customers in
computer.
04th, 05thNovember Holiday

Page 22 of 46
3rd week (Account Opening Department)

From 06thNovember to 12th Noember, (Monday to Sunday)

Date Tasks
06thNovember Entering customer data in computer and assisting clients
in AOF filling.
th
07 November Learned about verisys and balance checking of customer
account.
th
08 November Learned about stamping and making entry of cheque
books received by the branch in particular register.
th
09 November Learned ATM and cheque form filling (Form A).
10thNovember Learn about internal documentation.
th th
11 ,12 November Holiday

4th week (Clearing)

From 13th November to 19th November, (Monday to Sunday).

Remittance Officer Sir Usman guide during internship.

Date Tasks
Learned to fill credit slip and online fund transfer slips
13thNovember and arranging the credit and debit slips and check daily
report.
Learned about the different requirements for the account
14thNovember for proprietor, joint account, company account etc.
Learned situation in which customer account closed and
15thNovember about dormant accounts.
16thNovember Transferred to clearing department and where officer
told me about the basic purpose of this department. I
observed him while he was doing his work.
17thNovember Told me the things which must be considered before
receiving a cheque.

Page 23 of 46
 18th,19thNovember Holiday

5th week (Remittance Department)

From 20stNovember to 26th November, (Monday to Sunday).

Remittance Officer Ehtisham zafar Guide

Date Tasks
20thNovember Told me about the functioning of clearing house and
what is inward and outward clearing.
21thNovember Learned about what remittance is?
th
22 November Procedure of receiving foreign remittance.
23th November How to understand the detail of the payment (from code
provided by customer).
24thNovember Learn briefly about the BC and PO.
th th
25 ,26 November Holiday

6th week (Crdit Department)

From 27th November to 02thDecember, (Monday to Sunday).

Credit Officer Sufvan Ahmed Guide during internship.

Date Tasks
27th November Today in Cash department, just observing the cashier,
no payment made by me, assisting him in receiving
utility bills.
28th November Today I was with credit officer and learned about the
products.
29th November Told me about the procedure of taking loan and loan
amortization.
30th November Sent to parwaz Fan for account opening form filling.
01th Last day at internship, got my internship letter. Having a
02thDecember friendly conversation with all officers.

Page 24 of 46
1.4.4 Detail of departments along with operation I Worked in.

1.4.4.1 Account Opening

This is the department form which relationship between customer and banks begins.
Account opening is basically a binding between person and bank. Branch manager is very
concerned with the department, as BM has to meet goal of opening some certain number
of accounts per month or week. The more accounts (each account represents customer) a
branch have, the more deposit it will get, the more loan it can disburse, the more
investment it will made, the more interest earn and interest is the main income of bank.
Nowadays as political and law order condition of country is not very good. Some recent
fraud and illegal earning was kept in account due to erroneous account opening. So,
account opening officer now has the higher responsibility and he/she should know every
detail about all customer before opening an account. There are also some certain
guidelines about account opening, now it is a duty of that particular account opening
officer to take care of all these rules before opening of any account. Otherwise, he/she
will be held responsible of any error.

The work of account opening department or accounting opening officer in other words
starts, when a customer or person with intention of opening an account, walk into the
branch. Normally, when customer comes to branch, He has already made his mind about
which account he/she wants to open. It also included in the duties of account opening
officer to give proper introduction about accounts. But few things should be kept in mind
while giving introduction. The officer giving the information tries to give the information
about account directly to the customer. This help the officer to have the identity the
customer who open account and also help the customer it can ask some questions about

Page 25 of 46
accounts, He can get unambiguous information. The types of accounts offered by the
Askari are following;

 Individual Accounts
 Joint Stock (JS) Company’s Accounts
 Clubs, Association & Societies Accounts
 Administration & Executioner accounts
 Agency Accounts
 Partnership Accounts
 Other Accounts

The general guidelines for all accounts are same, but there are some documents and
guidelines that are only for a specific accounts.

Account opening officer should try to get extra information (integrity, character,
profession, monthly income etc.) about client, discreetly, at the time of account opening.
The more information bank will gets, the less chances of opening an inaccurate account.
Now it is obligation of bank (order by SBP) to get sufficient information to lessen
unlawful activities. To fulfill this duty, now customer also fills a KYC (Know Your
Customer) form along with account opening form to get additional information.

The general characteristics must possessed by a probable customer are subsequent;

 Should be Major 18+

In Pakistan, a male is considered a major, when he reaches the age of 18, while female is
major at the age of 16. But, if guardian is appointed, then the age of major is 21. He can
make contract himself, when he is 21 years old. As it is already said above, that account
opening is basically a contract or legal binding between customer and bank. Any contract
made by the minor, is a void contract mean unenforceable by law. This sssdoes not mean
that a minor cannot have account in bank. Bank allows the minor to have an account to
encourage saving habit. Minor account is opened jointly with custodian or guardian.

 Sound Mind

Page 26 of 46
Sound mind person mean who is able to understand the terms, provision and conditions
of contract (account opening) and able enough to take a rational decision in these
circumstances. Account holder should be sound mind and able to take decision about her
self.

 Forbidden by Law

A person cannot open an account in bank, if he is disqualified or prohibited by law

(court) for any reason.

 Shouldn’t be Bankrupt

A person, whose debts are more than his assets, is not eligible for opening an account in
bank.

After carefully ensuring all the upper requirements, now it is the time of filling account
opening form. While filling account opening form, the account opening officer should
make sure that all the section of accounting opening form must be filled with care by
customers (accurate information in relative column) and all the required information is
provided to avoid problems, which may l arise due to insufficient information. Profession
of customer must be recorded. Specimen Signature Card (SSC) is also signed, original
Computerized National Identity Card (CNIC) for presentation and its copy is required for
submission. For illiterate person, which cannot sign in English, two photographs are
required, one is attach with form of account opening and other on SS card. Thumb
impressions are acquired and used it as a signature of customer. This makes it obvious
that every time customer wants to withdraw amount form his/her account, he must
personally visit the bank, put his impression of thumb on cheque, in front of passing
officer to complete transaction.

The specific requirements for a particular account are following;

Account of Minor

Page 27 of 46
It is already stated that minor cannot open an account alone as its prohibited by law.
Minor cannot enter into a contract except of necessary needs. There must be a
major/guardian. It is opened by major but operated by minor.

Joint Account

It is the account, that is shared/mutual between two persons and relationship between two
people is of relatives, couples etc. The answer of some question are clearly defined in
Joint Accounts e.g. who will operate the account, who will get the balance, if one of the
person died. There are 2 types of Joint account;

a. Joint Tenancy: in this one out all owners has full right on account and he can
make deposit and withdrawals with his signature.
b. Tenants-In-Common: to make withdrawals signature of all owners are required.

Partnership Account

Partnership account is the account opened by a firm that has more than one owner (2 to
20). It is the account in which all the owners of the business mean all the partners sign on
account opening form. In partnership account, the name of the person authorized to
operate the account is written correctly and neatly. It is the name recommended by all
owners and written on account opening form. Partnership accounts are current accounts
and no. of partners mean owner of account range from 2 to 20. In partnership account,
one thing must be remembered, that amount of a cheque that is payable to company
cannot be transferred to a partner’s personal account or personal accounts of some
partners without the written permission of every partner. For opening a partnership
account, registration certificate of business (optional), Xerox copy of C.N.I.C of all
owners, letterhead with firm’s stamp on it and Title Deed of business.

Accounts of Joint Stock Companies

Page 28 of 46
Joint Stock Companies (JSC) are those companies in which there are no. of owner
(shareholders) and each owner owns a certain portion of business according to his/her
proportion of shares. This means that if one person holds 20% shares of company, he is
the owner of 20% company, while some other individual holds 5% share of company can
have 5% ownership of company. This ownership can be transferred through transfer of
shares.JSC includes:

a. Public Limited Companies

b. Private Limited Companies

Public Limited Companies

In PLC, public mean general public or common people buy the shares of company and
becomes its owners. As buying share of company is also a contract. So if a person can
purchase the shares of company if he/she is capable to make a contract (sound mind,
major etc). Shares of these companies are traded at stock exchanges.

Private Limited Companies

In Private limited organizations or businesses are those in which shares/ownership is

possessed by person, within the members of family. In private limited business,
ownership resides in the hands of father, his sons, daughters, brothers, wife etc. Shares of
this company are not traded in stock exchange. The shareholders of Private Limited
organization, ranges from 2 to 50.

The documents that are specifically required for opening JSC account are coming after;

a. Resolution Copy: The corporate resolution of a company is a written assertion

made by BODs declaring, who is empowered to act as a representative of
organization. For opening Joint Stock (JS) Company’s account, the bank must
ensure that the application of account opening is come with the permission of
BODs. The request of account opening must bear organization seal, with
signature of chairman (heading the meeting in which this decision is made) and
authorized director of company.

Page 29 of 46
 b. Copy of Memorandum of Association: MA is a document that controls an
organization’s activities and it must be submitted at the time of registration of
company. It includes name of company, registered offices, total authorized shares,
objectives etc.
c. Incorporation Certificate: it shows the official name of business and date of
starting business. It is also called registration certificate.
d. Copy of CNIC of all directors.

Sole proprietor Account

In simple words, proprietor is a person that is sole/single owner of business and he/she is
not separable form business. Proprietor does not pay separate tax for the income of
business. The liabilities of business are the liabilities of owner mean proprietorship has
unlimited liability. Particular requirements for proprietor account are photocopy of NTN
certificate (attested) and letterhead of business.

Accounts of Associations, Trusts and Societies

All these organizations (Associations, Trusts and Societies) are fundamentally nonprofit
mean not in business for financial gain. Their regulations and policies are different than
profit organization. For NPOs, registration certificate, resolution copy, all manager’s
CNIC copy and an undertaking to tell the bank about changes in management (written).

Closing of Account

In following circumstance customer’s account is blocked or closed, which are

 Order of court: if court order the seizing the accounts of a particular individual,
then that person’s person account will be blocked.
 Notice by customer: In this, customer gives application for closing of account.

In account opening department, my job was to help the customer, while he/she was filling
the account opening form (A.O.F) e.g. if customer has problem in understanding some
point, my job was to assist him/her. When customer finished the A.O.F, I check A.O.F
for information that hasn’t been provided yet means lines might not seen by customer.

Page 30 of 46
The main thing I checked in A.O.F was signature as more than 10 signatures are required
on A.O.F and frequently customers does not sign on every required place.

After the completion of form filling, my job was to develop and print a veri-sys
(verification system) of the customer, which is online validation process that utilizes
NADRA database as it is a requirement for identification of customer. This verisys is
attached with customer A.O.F along with copy of C.N.I.C and other documents.
Stamping, complete documents was also included in my jobs.

1.4.4.2 Deposits, Transfers & Withdrawals (Cash Department)

This department is basically the work of cash department and remittance department as
cash department is one in which customer can deposits funds and makes withdrawals. In
this section customer account is credited when he/she deposit funds in his/her account.
Bank credit this amount in its accounting book as deposits are the liability of the bank.
Withdrawals mean customers take out money from their accounts through cheque, ATM
etc bank debit it in its books as bank’s liability has reduced. If cheque is of other branch,
then it is credited after it is passed mean cleared by the clearing department. The transfer
of funds is also take place as funds move from one account to other.

For crediting his account mean for deposits customer came into bank with cash or cheque
given to him by someone as a payment/instead of cash. For deposit a credit slip must be
filled. In credit slip, he writes the account number (in which he wants to deposit that
money), account title (name of account holder), date, amount in words and numbers and
at the end sign at credit slip. If customer brings cheque of same branch (person write the
cheque has account in that particular branch), then cheque no. must also be written on
credit slip. After completion, this slip is given to cashier who count the amount (when
cash is given), stamp and sign on credit slip. Credit slip has two parts both contain same
information, one for customer (depositor) and other for bank. Customer account is
credited right away. The different forms of deposits are subsequent;

Demand Deposit

As the name indicating, these are deposits that are payable on demand of customers.
Demand deposits include deposit receipt, sundry deposit, margin account and current

Page 31 of 46
account. In these accounts customers withdraw its any time he wanted, so profit on these
deposits is zero.

Current account

Current account is normally opened by or used by business owners and other people that
want to deposit and withdraw on daily bases. So, this account is opened to satisfy the
need of people who require these funds every day to make transactions. Now a day’s
customer can withdraw his money through cheque, ATM. They can also transfer funds
online.

The cost attached to current account is that it pays no interest to customer. Minimum Rs.
required to open current account are 500.

Call Deposits Account

It is an account in which customer earns interest but can withdraw its money at any time
without any fine or penalty.

Margin Account

It is simply is account that is opened as a security, when bank issue letter of gurantee or
letter of credit. In this account customer is required to deposit some amount (depends on
banks and customer), which is basically act as a protection for bank. For example, a bank
issued letter of gurantee, bank asked the customer to open margin account (also called
sundry deposit) and deposit some amount in it. In case of default of customer, bank can
use this money. This account is also opened, when locker is allocated to customer.
Margin account gives many benefits to bank e.g. it lower the hazard of bank, bank can
lend this money and earn interest, opening of new accounts, no interest etc. The customer
can withdraw money from this account as letter of gurantee expires.

Time Deposit

It is clear from the name that customer can only get his deposit after a certain time
(maturity date). In this deposit when customer deposit money in his/her account, a certain
time period is given to customer (depends upon customer), after which customer can get

Page 32 of 46
his money with interest earned on it. The longer the customer put his money in account,
the more interest he will earn. In other words, time deposits are fixed accounts. In time
deposit, if customer wants to make a withdrawal from his account, he must give a prior
notice to bank and bank will cut some of its interest as penalty.

Withdrawals

Normally withdrawals are done through cheques, mean customer write a cheque and cash
it form bank. Cashier pays the cash and debits the customer’s account. Before the
encashment of a cheque, make sure the following things;

 Date

A cheque is encashed within half a year (six months), starting from the date written on it.
For example, if date written on cheque is 1-1-2011, then it can be cashed till 30-6-2011.
If cheque is written for a particular future date, it will not be cleared by the bank before
that particular future date.

 Amount

Amount written on cheque must be written in digits (60,000) and words (sixty thousand
only). The amount in words and digits must be the same, if there is mismatch e.g. amount
is figures is 6,000 but amount in words is sixty thousand. In that case, cheque is returned
to customer without clearing (without encashment). In some situations, amount which is
written in words would be considered correct and account will debit to that amount.

 Payees Name

Payee is the person who receives the amount of cheque. The name of the person must
be written clearly.

 Signature

Signature is the most important part to be considered for cashier. For signature checking,
signatures on the cheque are matched with signature on SS card. If there is mismatch,
cheque will not be cleared. For this reason, customer must remember his/her signature on

Page 33 of 46
SS card, because these are signatures that will be used for operating account or making
transaction.

 Crossed Cheque

A cross cheque mean that cheque amount can only be transferred into account, payee’s
account. The payment of uncrossed cheque can be paid to payee in cash. If the payee
wants cash for crossed cheque, then he must encash the crossed cheque, the amount will
be credited to his account. From which, he can made withdrawals if he wants.

 Should Be Clearly Filled

A cheque must be filled properly, neatly without cutting. In case of cutting, signature of
account holder close to cutting words is required, otherwise cheque would be rejected.

If all these requirements are met, then cheque is encashed, if it is written by person who
has account in same branch. If it is written by Askari customer of other branch, it first
sent to clearing department. A payee sign on backside of cheque and a particular token
number is assigned to cheque (payee), when all processing is completed; payee is asked
to approach the counter for the payment of cash on that assigned token number.

In this section, my job was to fill the credit slips or deposit slip for customers and help
the cashier in receiving the utility bills.

1.4.4.3 Clearing Department

Its brief introduction is already given as it deals with cheques that involve the other banks
and other branches of Askari bank. It is basically a method in which cheques, which are
written against each other, are exchanged within particular area and cleared for
customers, so they receive payment. This clearing is done by clearing house. The clearing
house has the representative of banks. Cheques that require clearing are sent to clearing
house, where balances of all banks are settled by debiting and crediting amounts into the
account of bank. Nowadays, NIFT is providing the clearing service.

SBP maintains the account of every bank in Pakistan, as all banks have account with
SBP. Simply, when a person walk into the Askari bank, Kharian branch with cheque of

Page 34 of 46
MCB. The cheque must be cleared from clearing house, before crediting to customer
account. The cheque will be sent to clearing house, where balance net balance is debited
or credited into Askari bank account (with SBP). Suppose an account holder of Askari
Bank bring a cheque of Habib Bank of Rs. 7000 and ask to credit his account, the bank
will collect the cheque and send it to the clearinghouse where the settlement will be
made. That particular 7,000 will be transferred from MCB account to Askari bank
account and Askari bank will credit that amount into customer’s account.

Clearing House

It is basically an association of all banks in Pakistan, for mutual settlements, controlled

and managed by SBP. It is understandable from name that instruments e.g. cheques, first
cleared before crediting an account. It has representatives from all banks who exchange
instruments to be cleared. Bank record the amount of instruments sent and received in
their summary sheet. This helps to determine the net balance of a bank on a particular
day, balance is then settle through the accounts banks have with SBP.

Advantages of Clearing House:

 No cash involvement in eliminates the chances of theft, stealing etc.

 Reduced Costs.
 Time saving.
 Immediate Confirmation.
 Reduces chance of mistake.
 It is automated (computerized) system, so it is labor saving also.

Cheques require clearing are sent to clearing house, where all banks have their
representatives. Types of clearing are inward and outward clearing.

Inward Clearing

Page 35 of 46
In this, the cheques that are received from other banks are cleared. For example, if cheque
of Askari customer is presented in HBL for encashment. This cheque in clearing housed
will be given to Askari bank representative. After clearing of cheque, the amount will be
debited form that customer account by Askari bank and HBL will credit that amount into
payee’s account.

Outward Clearing

In this, Askari bank sent cheques of other branches drawn on Askari bank, for clearing.
The balance of these cheques is added into the Askari bank account, and payee’s account
who is the customer of Askari bank.

In this section, my job was to cheque certain thing (sign, amount etc) after receiving
cheque form customer.

1.4.4.4 Remittance Department

Remittance is simple words is sending money from one place to other. Remittance is of
two types;

1. Local remittance: When money is sent within Pakistan from one place to other.
For example, if money is sent from Rawalpindi branch of Askari to Gujrat branch
it is called local remittance. It normally involves same currency (PKR).
2. Foreign Remittance: When money or funds is sent from outside of Pakistan e.g.
from U.S.A to Pakistan, it is called foreign remittance. It involve two different
currency (US$, PKR). Foreign remittance is further divided into two types;
a. Foreign Inward (FI) Remittance: in upper example, Pakistan will record
the foreign remittance as foreign inward remittance as foreign remittance
is coming into the country.
b. Foreign Outward (FO) Remittance: in upper example, USA will record it
as foreign outward remittance as funds are moving out of country.

The instruments handled by the Remittance department are coming after;

Pay Order: it is instrument made by the remittance department, which is an order to

bank to pay a certain amount of money to third party (payee). It can be used within city

Page 36 of 46
and normally paid only by the issuing branch. It is guaranteed by the bank. The procedure
of PO is start with the application of PO, after which bank check the balance of
customer’s account to make sure that customer has enough funds. After this,
documentation is done, entry is made is “PO issue register”. Normally pay orders have
condition “Payee Account only” means funds can only be transferred in payee account.

Demand Draft (DD): DD is draft issued by Askari bank drawn against other banks or
other branches of Askari bank, payable on sight. There are foreign DD and Local DD.
Local DD is DD that is drawn on bank within the country from which it is issued. Foreign
DD are those draft that are drawn against the bank of country, other than the issuing
country (from which it is issued). DD is made by visiting the branch of Askari bank and
fill and submit the application for DD. In application, applicant provides the personal and
payee (receiver) details. DD is valid for six months after the date of issuing.

DD can be stopped on the request of applicant, if misplaced, or damaged. Refund of DD

can also be possible.

Traveler’sCheque: These are the cheques that are issued by chosen branches of Askari
bank and it is used as replacement or instead of cash as it is very convenient and easy to
carry. Travelers’ cheques are mostly requested by the businessman for their comfort.

Banker cheque: Banker's Cheque is pay order or demand draft issued by bank to the
individual where the funds withdrawn from a bank's funds, not from any other
individual's account.

1.4.4.5 Credit Department

Banks major income comes through interest earned on the loan disbursed. But this does
not mean that bank lend the money to every borrower, come for credit. Bank makes sure
that only those people get the loans, which are good borrower (high probability of
returning loans). Credit department mainly generate returns for bank so this department

Page 37 of 46
must take careful and wise decisions. As more loan given to the customers, affect the
economy of country. So, SBP monitor the credit through its different department.

SBP monitors and survey the economy with the help of government and advice banks to
give out more loans to certain sectors for the expansion and growth of that sector. As
recently, SBP give advice to banks to give loans to agriculture sector for the progress of
farmers with simple requirements. Some general regulation that a bank must follow
before the advancement of loan e.g. bank cannot give loans to its shareholders, a
permission is required form SBP, for lending funds to shareholders of other banks etc.

Procedure of Taking Credit

Taking loan form Askari bank starts with making a proposal of credit line. CLP of a
particular customer includes the following documents.
 Application form: The loan advancement process starts with an application form
in which customer or applicant requests for loan. This form contains the personal
information of applicant, purpose of loan and loan amount. With application form
memorandum of permanent information is attached which shows the permanent
address of applicant, his business etc. A charge document signed by the borrower
contains endorsement of borrower that he will pay the installments of loan in
time.
 Credit Information: Customer credit history is also taken by the bank form CIB
to know the customer debts that he/she currently has. Credit information is very
essential for the loan of larger amounts.
After completion of file which contains all the required documents, makes the CLP of
borrower. CLP is a prerequisite for every type of loan advancement.
Provision of Security: This requirement is only for documentary loans (secured by an
asset) and not for clean loans (where no assets are taken as security or collateral).
The assets taken as collateral are coming after;

 Account means Deposit in Askari bank.

 Deposits/ accounts with banks other than Askari bank.

 Customer/Borrower Receivables

Page 38 of 46
  Inventory (Finished Goods etc.).

 Fixed asset (land, building etc.)

 Securities especially treasury as they have high liquidity and lowest risk.

In providing the security, borrower can pledge (possession of moveable asset is given to
bank, but the real owner is the borrower), mortgage (possession reside in the hands of
borrower but bank is hypothetical owner) or hypothecate (bank has the control of the
security) it asset as guarantee.

Askari bank tries to make sure subsequent things before advancing a loan;

a. Safety: Bank must be on safer side before lending a loan. Make sure credit that
has been advance is secured by some asset, that bank can sell to recover loan in
defaulting of borrower.

b. Suitability: The loan must be given to borrower who is suitable (have enough
income, cash flow is suitable) etc.

c. Diversified: Loan must be given in different sectors for to diversify the assets.

d. Spread: The main purpose of loan must be to earn maximum profit or to increase
the earning of bank.

e. Market Condition: The condition of market must be favourable for repayment of

loan. If there is gradual increase in interest rate, then there will be increase
monthly payment for borrowers, which increase the chances of default.

The types of lending offered by the Askari bank; as described in

Fun Based (FB) Finance

In this loan, cash is transferred into borrower’s account. It include the

 Running Finance: It is overdraft facility in which customer is allowed to

withdraw the amount that actually does not have in his /her account. So, it is
treated as loan and interest is charged on that overdrawn amount. It is the loan
facility provide to trusted customers.

Page 39 of 46
  Term Finance:These are credits that are given for 5 years, maximum. Repayment
schedule, interest rate is arranged, when loan start on. The term finance is
unsecured (for army personnel) and secured (for other customers). In TF loans,
bank charge interest on full amount as complete amount is used by the borrower.
It is advanced for longer period. It is normally backed by an asset, and the value
of asset determines the amount customer will get.
 Cash finance: In this type, loan amount is transferred in borrower account but
interest is only charged on that amount which is taken out mean used by the
borrower.
 Staff finance: Indicated by name, this is loan offered for the employees of bank.
There is a credit limit of staff finance. The markup rate charged on staff finance is
less than market rate. Loan is advanced for the period of 2 years at the rate of 5%.
 Mortgage finance: This is the credit pass to customer for the purchase of real
estate, but the loan is secured by lien (give the bank right to sell the property in
case of default of borrower) on the asset. The ownership of property is transferred
to borrower, when he fully repays his loan.

Non-Fund Based

Non fund finance means no fund or cash involved in this type of credit. It is basically a
assurance of bank, that bank will make the payment of borrower, if he defaults on his
loan. In NFF, the bank charges commission from customer/borrower and ask some
property for security, as there is element of risk involved.

Askari bank normally offer two types of NFF (Non Fund Finance), which are

 (LG)Letter of Guarantee: In LG bank gives gurantee of customer that in case of

customer default bank will be responsible for payment of credit. LG is used in
importing/exporting. A security is taken from customer and amount of gurantee is
determined by the value of security, provided by the customer. The amount of
gurantee is given is also changed according to trustworthiness of applicant. LG
helps the businesses to reduce risk when dealing whit parties that are unfamiliar.
So bank gets commission and applicants lessen its risk with LG.

Page 40 of 46
  (LC) Letter of Credit: It is basically use to make sure the payment in cross
border transaction. This letter assures that the supplier/exporter will be paid by
purchaser/importer on time. This is basically the obligation of importer’s bank.

Following are 2 types of Letter of Credit;

 Sight LC: In this LC payment is paid to exporter, when the document (specified
in the LC) is presented to bank. The main point of LC is to reduce risk.
 Usance LC: In this payment is not immediately followed by presentation of
required document. In this, exporter presents the document and then receives
money after certain time period (specified in LC). It is also called deferred
payment LC.

In Askari bank agri department is also a loan department, which specially provide loan to
farmers for their agri needs, for Aabpashi, livestock and farm development, provide seeds
etc to farmers.

In this department, basically I just observed and saw the document made by the agri loan
officer.

1.4.5 Tasks assigned to me during my internship

During my internship, there was no special task that was assigned to me. Once, I was sent
to a Fan industry (Parwaz Fan Gujrat), because there was some account opening forms
that need to be filled form the manager of that industry.

1.4.6 Summary of learning

1.4.6.1 Skills and qualifications I gained from the internship.

“The distinction between "assistant" and intern" is a simple one: assistants are paid,
interns are not. But of course interns are paid, in experience.”

Yes I have got many professional skills during my stay in Askari bank. I acquired the
skill that how to work in a real time situation. Interpersonal skills are also developed in
me as I have communicated with different type of customers and with employees in bank.
I learned to control my temper (Self Control) in different situation and kept a friendly

Page 41 of 46
behaviour with the customer, to keep them satisfied with organization (Askari bank). I
also learned how to operate the software used by Askari bank. This enhanced my
computer skill as well. I developed flexibility in my personality because doing internship
in bank was a whole new environment for me (as it was my first working experience). I
learned some technical skills as well. I got real working experience in field. Before,
internship everything was just on books as how organization e.g. banks work but this
internship was something like “coming into real life form dreams or fantasy”. This
internship has boosted my self-confidence and makes me punctual. It makes me adaptive
to new social environment. It develops a sense of personality in me. It gives me a preview
of how the office work is done. Overall, this experience of internship improved many
aspects of my personality and broaden my understanding.

1.4.6.2 Responsibilities that I have undertaken

In my internship, responsibilities assigned to me were following;

 Filling A.O.F and ATM Card: Every time when expected customer comes for
opening an account in bank, it was my duty to fill up the form, from customer.
Customers unable to fill the form themselves, it was my duty to fill the form for
customers.

 Filling Cheque Book Issuance Form: This was my duty to fill the form B (Cheque
Book Issuance Form) form customer.

 It was also duty to fill the credit slips and online funds transfer slips for customer.

 My duty was to arrange all the credit and debit voucher in ascending order
(account number) and mark the transaction on daily report.

 My job was to bring Ashtam Paper for bank, when required.

 I performed all the duties in remittance department, but always consult with
remittance officer before the completion of final document.

 I also worked in clearing department.

 Make entry in ATM received Register.

Page 42 of 46
  Make entry in Chequebook received register.

1.4.6.3 Influence of internship on my future career

This Internship at bank (Askari) will play a huge role in my career as my specialization is
in finance and by doing internship in bank I got the useful, handy and realistic experience
in financial sector that will have a deep impression in my upcoming job plans. The
internship helps me to observe the actual implementation of things I studied in my books.
Now I got better understanding of operation as I personally perform them. This will have
a great impact on my upcoming professional life. This internship has added more, to my
knowledge about the banks and their functions. I learned the software used by the Askari
bank; this will assist me in using the software of other banks, which will aid me in my
future job in banking sector. This working experience mentally prepared me, for the
upcoming toughness and hardship of job. This internship helps me to know the
expectation of employer form employee, which will help me in my paid jobs.

This internship is like a starting point or it is a beginning toward my professional work. It

gave me a practical view of future working condition. It prepares me for the working
environment. It was just like a preparation for final exam but before its commencement.
This internship helped me to understand that how jobs are done in organization. This
internship makes me confident (as it increases my self-believe), that will increase my
performance in future jobs. Now I feel more relaxed with people especially with new
people and new social settings. This internship will help me getting a job in banking
sector in immediate future. It helped me to work with people, who are very experienced
and knowledgeable. I learned many banking principles and general things as well, which
will be very handy for me without any doubt. To sum up, this internship brings many
positives for my future and it provided a good beginning to enter into the corporate
environment, and INSHALLAH this good beginning will lead to a happy ending.

1.4.6.4 Correlation between internship activities and classroom knowledge

As far as working of bank is concerned everything was just the same as I studied.
Accounting practices, e.g. when bank deposit the money it increases the liabilities of
bank so bank credit it and it also increase the asset of bank in the form of cash, so bank
debit it. M&B course, interest rate changes, increase or decrease in reserve ratio, lending

Page 43 of 46
principles used by the bank before advancing the loan are totally same. Loan amortization
that I learned in my FM subject was in complete correlation with my bookish knowledge.
The financial ratios used by the organization to evaluate their performance were in
complete correlation with my AFS subject, as I saw the financial report of Askari bank.
Accounting statement and bank statement were totally alike as studied by me. State bank
of Pakistan (SBP) is the controlling all bank in Pakistan and bank must follow the rules
provide the state bank were same like we studied in role of central bank. The thing that I
observed in Askari bank (which was not in correlation with my studies) was that; I did
not seen job rotation as employees are performing only one kind of job, sitting in one
department throughout their job.

2 Conclusions of the Report

2.1 Summary of Key Learning:

At the end, overall it was a good experience. It helps me to learn technical and
interpersonal skills, develop a sense of responsibility, increase my confidence and helped
me understanding the working environment. I must say that this internship give me the
chance to understand working of bank. This will help me in my studies and my future
job.

2.2 General Observation about Sector of Internship

My internship is in banking sector and this sector of economy is growing with a decent
pace. Banks are actively participating in the development and growth of the Pakistani
economy. Banks hold the large amount of money of public. It provides valuable services
to public and also give loans to borrowers include government. Banks mobilise the
resource of a country and increase the productivity of asset. SBP latest statistics shows
that the banking sector deposits are growing at the rate of 1.44% Month on Month basis
(MoM) and reaches to 6.02 trillion in May 2015 as Rs 5.93 trillion April 2015.
Particularly for Askari bank, it earning per share, total customers and total deposits are
increasing, which is positive sign for the bank

2.3 SWOT Analysis

Strengths

Page 44 of 46
  It has a army background as started by army welfare trust.
 Stability in strategies and decent growth.
 It has AA rating in long term and short term loan.
 It developed a network of widespread branches, in lesser amount of time.
 Involve in international business.
 Usage of technology and computerization for achieving competitive advantage.
 Variety of products for different account holder.
 It has high commitment to be the leading private sector bank in Pakistan.
 It has dedicated Islamic banking branches.
 The employees of Askari bank are multi-talented and skilled as offsite training is
given to them.
 Askari bank is working for Staff welfare.
 Promote Public Interest as it is a socially responsible organization.

Weaknesses

 No separate complaint department for customer.

 Not enough branches as other competitors MCB, UBL, HBL, NBP etc. has.
 Less employees as compared to customers (in 2008 bank had 7,560 employees for
816,629 customers, while in 2009 bank had 7,270 employees for 984,485
customers.
 Due to fewer branches than competitor, there is realistic problem as the Askari
bank branches are not closer to customer’s dwelling.
 A large no. of facilities can only be avail by army personnel, and not for civilians.
 Not a well-established structure in foreign countries.
Opportunities

 Due to fewer branches bank has opportunity to open its new branches in
distant areas to increase customers.
 Bank should start its business internationally especially in surrounding
countries.
 Focus on small borrowers.
 Offer new different deposit schemes.

Page 45 of 46
Threats

 Changes the interest rate and political uncertainty in Pakistan due some.
 Increasing competition in banking sector.
 New products offered by other banks.
 Rapid change in technology, so bank must have to adapt them, otherwise it
will lag behind.
 Chances of losing market share due to less marketing efforts

3 Recommendations and Suggestions

 Open its branches in all over the Pakistan and in other countries.
 Build a separate complaint department in every branch.
 Enlarge marketing practises to increase the awareness among potential customer
about Askari bank.
 There must proper evaluation of ever employee and appraisals must be given to
that employee for their motivation.
 Facility only offered to army men it should be given to civilian also.
 More loans should advanced to undersized borrowers.
 Bank should hire more staff as currently there are fewer employees to better serve
customers.
 New and updated information of every department should be provided to
personnel’s (employee's).

Page 46 of 46