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ASKARI BANK LIMITED

SUBMITTED TO:

SIR ZAHID

PREPARED BY:

MUSTAFA TAHIR
ROLL NO: 06 (SELF SUPPORT)
CLASS :

M.COM (2008-2010)

DEPARTMENT OF COMMERCE,
UNIVERSITY OF SARGODHA
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BANK CERTIFICATE
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PREFACE
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The pre-requisite of internship program is to make the students of
M.Com aware of the practical expertise and to acquaint them with the
real management process.
With an intention of grooming the best executives of the future,
Department of Commerce has organized a comprehensive internship-
training program. All of us were placed in leading organizations of
business arena to gain first hand knowledge and insight into their
management and working. So, when I was given the chance of
selecting an organization, I opted for Askari Commercial Bank Limited.
Getting a chance of working in Askari Bank Limited. proved to be very
beneficial for me. I think that I gained comprehensive insight into the
working of a bank. But nothing could have been possible without the
co-operation and guidance of the officers of Askari Bank Ltd, which is
formally (Askari Commercial Bank Limited.)
After the completion of internship program, internship report has been
prepared just in accordance with the practical exposure.
I have strong belief that this report will guide and ease the readers to
understand the operations of banking system and more prominently
have good knowledge about Askari Bank Limited, one of the most trusty
and leading banks in Pakistan.
Dear readers, I hope that you will appreciate my report and sense that
reading my report is not like to waste the time in any respect.

ACKNOWLEDGEMENT

Countless thanks to Almighty Allah (The most merciful the most


beneficial). The only creator of universe who enabled me to complete
this report, in spite of various difficulties. All respects to the Holy
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Prophet (P.B.U.H) who enable us to recognize our greater and whose
spiritual teaching guide us in every matter of the life.
I would like to express my gratitude to the Department of Business
Administration for giving me the opportunity and arranging such an
extensive internship program.
I would also like to acknowledge my debts to those officers Askari Bank
Limited, of who have been extremely helpful for me.
First of all Mr.Ghulamm Habib, He has been a permanent source of
encouragement and guidance. His helpful nature did not restrict me to
the premises to the branch but extended to any place and any matter I
needed his support on.
I would also acknowledge my debt to Mr.Nabeel , for the knowledge he
provided me.
In short, I would always be thankful to all the managers and officers, for
their courteous and compassionate treatment given to me.

DEDICATIONS

All the efforts in compiling this report are dedicated To My


Beloved Parents, Brothers, Friends & My Honourable
Faculty Members of Department of Commerce, As they
helped me in this Achievement
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EXECUTIVE SUMMARY
The Department of Commerce was established in 2005 and offers
Masters and Bachelors degree in Commerce. An important programme
is six to eight weeks internship with any recognized institution.
I decided to take up Askari Commercial Bank Limited for my internship
because its competing bank nowadays and gives a good training to the
internees. So in order to learn more this was my choice.
This report is about my internship that I have undergone at Askari
Commercial Bank Limited Sargodha Branch from 15th June 2009 to
27th July 2009. During my internship I am able to learn practical aspect
of business, and get good working experience.
On the very first day of my internship I reported to Operation Manager
Mr.Farukh Mehmood. He gave me a small introduction of the bank and
introduced me to the staff of the bank. Every internee is rotated among
the bank’s departments and so was I. This rotation is done in order to
have general concept regarding bank’s functions, operations and
policies. In this rotation the stay in department is usually a week. I
have learned more about the Bills and Foreign Trade department and
have given below the caption of activities I was involved in during the
period of six weeks.
During my internship I found that Askari Commercial Bank is a best
bank in Sargodha because most of the Exports and Imports in
Sargodha are done through this bank.
Today every customers is the rational customer he knows the value of
money and wants a best return on his money.
Earlier Askari Commercial were able to attract customer due to their
ancillary services like ATM Cards, Credit Cards, Online Banking etc.
but now all the banks are offering these services through their own
network or through third party contracting, so our plus points are no
more our advantages. So the only thing through which ACBL can
increase their deposits are profit rates, because the customers only
want maximum profit on their investment.
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Table of Contents

1. Industry Introduction
2. An Overview of Organization
- History of Organization
- Nature of Organization
a. Vision Statement
b. Mission Statement
- Main Features
- Competitors
3. Organizational Structure
- Hierarchy Chart
- Number of Employees
- Main Offices
- Introduction of all Departments
- Comments on Organizational Structure
4. Work done by Internee
5. Financial Analysis of Organization
- Financial data of last 5 years
a. Horizontal Analysis
b. Vertical Analysis

- Significance of Ratio
- Components of Ratios (formulae used)
- Horizontal Analysis of Ratios
- Interpretation of Ratios
6. SWOT Analysis
7. Conclusion
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8. Recommendations
9. Limitations
10. Bibliography
11. Annexes
12. Glossary

1.INTRODUCTION OF INDUSTRY
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For developing administrative capabilities and giving practical
touch to the studies, a program of six weeks has been introduced as
part of our M.Com studies. For this Purpose we entirely depend on the
active cooperation of well-established and reputed organizations. The
students prepare internship report on the basis of this training and take
viva voce-examination.
I have divided my report in some parts. The major part of my internship
report is based on my working in the bank. The names and brief
introduction of these parts is as under:-

INTRODUCTION OF ASKARI BANK:-

When the Bank came into being? Its brief History, its Mission, its
Values, and what services it provide to its customers, is discussed in
this part.

ORGANIZATIONAL CHART OF THE BANK:-

The list of names of management personnel, management hierarchy


and Organ gram of Askari Bank

FIELD OF ACTIVITIES:-

In what fields, Askari Bank deal. The main fields of activities are Retail
Banking, Consumer Banking, Electronic Banking, Correspondent
Banking, and Treasury and Investment.

MY INTERNSHIP PROGRAM:-
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It is the main part of my internship report. It consist on the detail of the
work that I have done there as an internee. In Askari Bank I worked in
Account opening, Remittance, Clearing, Credit, Foreign Trade and
Accounts Department. The detail of my work in each department is
described in this part with all possible details.

FINANCIAL ANALYSIS:-

It consists on horizontal analysis, vertical analysis and financial ratios


of Askari Bank and pros and cons of this analysis.

FINDINGS AND RECOMMENDATIONS:-

This part contains the Findings and brief recommendations given by me


to the bank.

DEFINITIONS OF BANK

(1) “Banks do business of money. Rather banks do business


of lending and borrowing loans.”

(2) “Banks are guardian distributor of cash money”.

(3) “Banker or a bank or a person or company carrying on the


business receiving moneys and collecting drafts for
customers subject to the obligation of honoring cheques
drawn upon them from time to time by the customer to the
extent of the amount available on their current accounts”.

TYPES OF BANKS

Primarily all banks gather temporarily idle money for the purpose
of lending to other and investment gain in the form of return, profits and
dividends etc. however, due to the verity of resources of money and the
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diversity in lending and investment operations, banks have been place
in various categories, such as
 Commercial bank
 Savings bank
 Merchant banks
 Mortgage banks
 Consumer bank
 Investment bank
 Central bank

COMMERCIAL BANK:

The commercial banks received deposits from the general public,


which are repayable on demand upon written orders of the depositors.
As their most distinctive feature the commercial banks maintain the
checking accounts for the constitutions.

Te commercial banks are also distinguished for providing short-


term finance to trade, commerce and industry to enable these sectors
to expand their productive activities

MERCHANT BANKS:

Merchant banks are those, which have been mainly financing the
domestic and international trade. During the late 18 t h and early 19 t h
centuries the trade between countries was financed by bill of exchange
by well-reputed merchant’s houses for which they would charges a
commission for their services

SAVINGS BANKS:

The basic purpose of these banks is to inculcate the habit of saving


in the people the savings banks deposits are not repayable upon
only the written order of depositor but the depositor of his agent has
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to appear personally at the saving banks to make withdrawal and for
this purpose he must present a pass book a certificate of deposit or
some similar documents to prove his right to receive his payments.
Post office savings banks and savings accounts at national saving
organizations are well known national saving banks in Pakistan.

MORTGAGE BANKS:

These banks mainly deal in loans for acquisition or construction


of real estate against the securities of mortgage.

CONSUMER BANKS :

These banks providing finance for purchasing consumption goods


for the use of Brewers.

INVESTMENT BANKS:

These banks assists business houses and governmental bodies to


raise money through the sale of stocks and bond for usually long term
purposes these banks perform the usual functions of raising deposits of
idle money from the public and finance the business houses other
bodies.

CENTRAL BANKS:

Central banks occupy the unique position in banking structure of


a country because they have been interested with the responsibility of
controlling the money supply, interest rate, and financial market of a
country for the purpose of economic development.
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INTRODUCTION ABOUT BANKING SECTOR

Banking is the business of providing financial services to


consumers and businesses. The basic services a bank provides are
checking accounts, which can be used like money to make payments
and purchase goods and services; savings accounts and time deposits
that can be used to save money for future use; loans that consumers
and businesses can use to purchase goods and services; and basic
cash management services such as check cashing and foreign currency
exchange. Four types of banks specialize in offering these basic
banking services: commercial banks, savings and loan associations,
savings banks, and credit unions.

A broader definition of a bank is any financial institution that


receives, collects, transfers, pays, exchanges, lends, invests, or
safeguards money for its customers. This broader definition includes
many other financial institutions that are not usually thought of as
banks but which nevertheless provide one or more of these broadly
defined banking services. These institutions include finance companies,
investment companies, investment banks, insurance companies,
pension funds, security brokers and dealers, mortgage companies, and
real estate investment trusts.

2.AN OVERVIEW OF ORGANIZATION

Askari Bank was incorporated in Pakistan on October 9, 1991, as a


public limited company. It commenced operations on April 1, 1992, and
is principally engaged in the business of banking, as defined in the
Banking Companies Ordinance, 1962. The Bank is listed on the
Karachi, Lahore and Islamabad Stock Exchanges and its share have
consistently remained amongst the highest quoted in the banking sector
in Pakistan.
Askari Bank has expanded into a nation-wide presence of 121
branches, including 6 dedicated Islamic Banking Branches, and an off-
shore Banking Unit in Bahrain, A shared network on over 1300 on-line
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ATMs covering all major cities in Pakistan supports the delivery
channels for customer service. As at December 31, 2006, the Bank had
equity of Rs.11.1 billion and total assets of Rs. 1660. Billion, with over
665000 banking customers, Serviced by our 4585n employees.

A.VISION
TO BE THE BANK OF FIRST CHOICE IN THE REGION.

B.OUR 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.

You may already have seen our advertising


campaign and the new look of our branches, but I
take pleasure in sharing with you our new
identity:
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Our shorter, smarter name, crisper new colours and fresh new look are
an insight to our views on banking. We aim to provide innovative
financial solutions to our customers, with the security of knowing they
are dealing with one of the strongest financial institutions in the
country. Our new slogan

Re f le ct s o u r cu sto me r se rvice ph ilo sop h y – we ’re Aska ri B an k, ask u s!

OBJECTIVES

To achieve sustained growth and profitability in all areas of business.


To build and sustain a high performance culture, with a continuous
improvement focus.
To develop a customer-service oriented culture with special emphasis
on customer care and convenience.
To build an enabling environment, where employees are motivated to
contribute to their full potential.
To effectively manage and mitigate all kinds of risks inherent in the
banking business.
To maximize use of technology to ensure cost-effective operations,
efficient management information system, enhanced delivery capability
and high service standards.
To manage the Banks portfolio of businesses to achieve strong and
sustainable shareholder returns and to continuously build shareholder
value.
To deliver timely solutions that best meets the customers’ financial
needs.
To explore new avenues for growth and profitability.

STRATEGIC PLANNING
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To comprehensively plan for the future to ensure sustained growth and
profitability.
To facilitate alignment of the vision, mission, corporate objectives and
with the Business Goals and Objectives.
To provide strategic initiatives and solutions for projects, products,
policies and procedures.
To provide strategic solutions to mitigate weak areas and to counter
threats to profits.
To identify strategic initiatives and opportunities for profit.
To create and leverage strategic assets and capabilities for competitive
a dva nt a ge .

MAIN FEATURES
FIELD OF ACTIVITIES

1. Retail Banking
2. Consumer Banking
3. Electronic Banking
4. Correspondent Banking
5. Treasury And Investment

1- RETAIL BANKING

I. Account Opening Department


II. Remittance Department
III. Clearing Department
IV. Cash Department
V. Accounts Department
VI. Foreign Exchange Department

COMPETITORS
The main competitors of the bank are:

• Muslim Commercial Bank.


• Union Bank.
• Prime Commercial Bank.
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• HBL Bank
• NIB Bank
• NBP Bank
• Silk Bank
• Allied Bank

3.ORGANIZATIONAL STRUCTURE
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CODE OF ETHICS AND CONDUCT
Askari Bank seeks to maintain high standards of service and ethics
enabling to be perceived as impartial, ethical and independent. In
addition to the general guidelines, the following are the salient features
of the Banks code of ethics and conduct.

• Presence of a corporate culture that seeks to create an


environment where all persons are treated equitably and with
respect.
• Employees must carry out their responsibilities in a professional
manner at all times. They must act in a prudent manner and must
avoid situations that could reflect unfavorably on themselves, the
Bank or its customers.
• Employees must commit to the continued development of the
service culture in which the Bank consistently seeks to exceed
customers’ expectations. Fairness, Truthfulness and
Transparency govern our customer relationships in determining
the transactional terms, conditions, rights and obligations.
• Employees must safeguard confidential information which may
come to their possession during the discharge of their
responsibilities. Respect for customers confidential matters,
merits the same care as does the protection of the Bank’s own
affairs or other interests.
• Employees must ensure that know your customer principals are
adhered by obtaining sufficient information about the customers
to reasonably satisfy ourselves as to their reputation, standing
and the nature of their business activities.
• Employees must avoid circumstances in which their personal
interest conflicts, or may appear to conflict, with the interest of
the Bank or its customers. Employees must never use their
position in the Bank to obtain an advantage or gain.
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• Employees must not accept gifts, business entertainment or other
benefits from a customer or a supplier / vender, which appear pr
may appear to compromise commercial or business relationship.
• Employees must remain alert and vigilant with respect frauds,
thefts or illegal activities committed within the Bank premises.
ORGANIZATIONAL CHART

Chairman

Board of Directors

Chief Executive
Officer

Executive Committee

Executive Incharges

Area Manager North Area Manager South

HIERARCHY
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CORPORATE INFORMATION

Lt. Gen. Nadeem Taj Chairman


Chairman Executive
Lt. Gen (R) Imtiaz Hussain
Committee
Maj Gen (R) Saeed Ahmed Khan Director
Mr. Zafar Alam Khan Sumbal Director
Dr. Bashir Ahmad Khan Director
Mr. Shahid Mahmud Director
Mr. Muhammad Riyazul Haque Director
Mr. Ali Noormahomed Rattansey Director
Mr. Wazir Ali Khoja ( Nominee NIT ) Director
Mr. Muhammad Rafiquddin Mehkari President & Chief Executive

Mr. M. A. Ghazali Marghoob Company Secretary

AUDIT COMMITTEE

Dr. Bashir Ahmad Khan Chairman


Mr. Ali Noormahomed Rattansey Member

AUDITORS

KPMG Taseer Hadi & Co. Chartered Accountants

LEGAL ADVISORS
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Rizvi, Isa, Afridi & Angell

REGISTRAR & SHARE TRANSFER OFFICE

M/s THK Associates (Private) Limited,


Ground Floor, State Life Building # 3,
Dr. Ziauddin Ahmad Road, Karachi – 75530
P.O.Box No. 8533, Karachi.
Tel : (021) 5689021, 5686658, 5685681
Fax: (021) 5655595
UAN: 111-000-322

REGISTERED OFFICE /HEAD OFFICE

AWT Plaza, The Mall,


P.O.Box 1084, Rawalpindi.
Tel : (051) 9063000
Fax: (051) 9272455

EXECUTIVE PROFILES

• Mr. Shaharyar Ahmed- President & Chief Executive


• Mr. Agha Ali Imam- Senior Executive Vice President
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• M.R Mehkari - Senior Executive Vice President
• Mr. Muhammad Arif Mian, Senior Executive Vice President
• Suhail Ahmad Rizvi- Executive Vice President
• Mr. Nazimuddin A. Chaturbhai, Senior Executive Vice
President
• Mr. Ejaz Ahmed Khan, Senior Executive Vice President
• Malik Asad Ali Noon, Executive Vice President
• Mr. Tahir Aziz, Executive Vice President
• Mr. Israr Ahmed, Executive Vice President
• Mr. Moghis Rafiuddin Bokhari, Executive Vice President
• Mr. Nauman Bashir Khan, Senior Vice President

Mr. Muhammad Ahmed Khan-Senior Vice President

INTRODUCTION OF ALL DEPARTMETS


ACCOUNT OPENING DEPARTMENT

This department is responsible for the opening and closing of accounts.


In consideration of Askari Bank , opening and/or continuing to maintain
any account, the Account Holder/Depositor or Investor would be bound
by the terms and conditions written on the account opening form.

The first part establishes the preference regarding the type of account
to be maintained. The various choices offered in this regard are:

 Current Account
 Saving/ PLS Account
 Royal Profit Account
 Term Deposit Account
 Basic Banking Account

CURRENT ACCOUNT

The current account is the most common account and the most
preferred amongst business concerns. There is no restriction on the
amount of withdrawal. Current account enables the client to do cash
transactions in a more efficient manner.
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Features:-
 Current Accounts can be opened in the ASKARI BANK with the
sum not less than Rs.5,000/-
 No Profit
 No deduction of Zakat
 Account close charges Rs.150
 Service charges for maintaining minimum balance Rs.100
 Online Charges Rs.100

Saving / PLS Account


In Pakistan (PLS) saving account was introduced in January 1982.
Individuals who wish to invest their money in order to get profit
maintain this account.

Features:-
 The minimum balance requirement for opening the account is
Rs.10,000.
 There can be profit or loss on the investment of the Customer’s
funds deposited with the bank and this amount shall be
acceptable to the Customer. The profit is paid half yearly.
 Deduction of Zakat
 With holding tax on profit @ 10%
 No Service Charges to close the account
 Service Charges for maintaining minimum balance Rs.50
 Online Charges Rs.150

Term Deposit Account


A term deposit is a deposit that is made of a certain period of time. At
the end of specific period the customer is allowed to with draw the
principal amount.

Features:-
 Fixed Profit
 The longer the period for which the amount is kept higher is rate
of interest.
 Term Deposit usually for the period of three months, six months,
One year, and five years.
 Deduction of Zakat and withholding Tax @ 10%.

Basic Banking Account


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Basic Banking Account is opened is ASKARI BANK . The minimum
amount deposit in this account is very small as compared to other
accounts.

Features:-

 Minimum Deposit amount is Rs. 1000


 1 s t two transactions is free of cost
 Bank can close the Account after six month if balance is zero.

REMITTANCES DEPARTMENT

Meaning Of Remittance:-

“Remittance is transfer of funds from one


place to another or from one person to
another.”

A Remittance is an important service provided by banks to customers


as well as non-customers. Since it is not a free service it is a source of
income for the bank.

Parties Involved In Remittance

Four parties involved in remittance:-

 Remitter
 Remittee
 Issuing Bank
 Paying Bank

Remitter:-

One who initiates, or requests for a remittance. The remitter comes to


the issuing or originating branch, asks for a remittance to be made, and
deposits the money to be remitted. The bank charges him a commission
for this service. He may or may not be the branch’s customer.

Remittee:-
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A remittee is also called the beneficiary, or the payee. The person in
whose name the remittance is made. A remittee is also the one who
receive the payment.

Issuing Bank:-

The bank that sends or effects the remittance, through demand drafts,
telegraphic transfers, or Mail Transfers.

Paying Bank:-

Paying Bank also know as the drawee branch. The branch on whom the
instrument is drawn. It has to make the payment (usually located in a
different city country).

Kinds Of Remittances

 Transfer within the branch


 Transfer from one branch to another
 Transfer from one bank to another bank in the same city
 Transfers from one bank to another bank in two cities.

Instruments Used In Remittances

 Demand Draft (DD)


 Pay Order (PO)
 Pay Slip
 Call Deposit Receipt (CDR)
 Telegraph Transfer
 Rupees Traveler Cheque (RTC)
 Cancellation of PO, DD & CDR
 Advance Tax against Remittances

CLERING DEPARTMENT
Meaning Of Clearing:-

The word clearing has been derived from the word “clear” and is
defined as:

“A system by which banks exchange cheques


and other negotiable instruments drawn on
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each other within a specific area and thereby
secure payment for their clients through the
Clearing House at specified time in an
efficient way.”

Explanation:-

By clearing means sometimes the account holder of Askari Bank


present a cheques, which is not drawn on Askari Bank but the person,
has an account in Askari Bank . In this case bank accepts this cheques
in clearing department and later on collets the amount from bank on
which cheques is drawn through clearing house. This function is called
clearing.

Clearing House:-
It is a place where representatives of all banks sit together and
interchange their claims against each other with the help of controlling
staff of NIFT.

It is one of the services provided by NIFT to other commercial banks.


NIFT acts as a clearinghouse. Different banks are the members of the
clearinghouse. A representative of each bank represents his bank in
the clearinghouse.

Each bank has collected cheques as behalf of their customer but these
cheques are not drawn on their own bank so in the clearinghouse, they
hand over these cheques to respective banks on which these cheques
are drawn. Similarly each bank receives cheques from other banks if
any.

Instruments To Be Presented In Clearing

 Cheques
 Demand Drafts
 Pay Orders
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TYPES OF CLEARING

There are four types of clearing:-

1. Inward Clearing
2. Outward Clearing
3. Intercity Clearing
4. Same Day Clearing

Inward Clearing:-

Those Cheques and other negotiable instruments which are drawn on


Askari Bank, sent by other banks, constitutes the inward clearing of
Askari Bank. After having all the stamps and dates of cheques
confirmed, the concerned drawer’s accounts are debited in Askari Bank
limited.

INWARD RETURN:-

Return may be of any reason:-

Presentation Flaw e.g. Clearing stamp not affixed or wrong discharge


given by collecting banker.
 Defect In The Cheques i.e. Post dated cheques, unauthorized
cutting.
 Insufficient Askari Bank ance

Accounting Entries OF Inward Clearing

Inward Clearing Single Branch:-

In Case OF Lodgment:-

Dr. Customer Account


Cr. SBP Account

In Case Of Return:-

Dr. SBP Account


Cr. Customer Account
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Inward Clearing Main Branch:-

In Case OF Lodgment:-

Dr. M.O Account


Cr. SBP Account

In Case Of Return:-

Dr. SBP Account


Cr. M.O Account

Inward Clearing Centre Branch:-

In Case OF Lodgment:-

Dr. Customer Account


Cr. M.O Account

In Case Of Return:-

Dr. M.O Account


Cr. Customer Account

Outward Clearing:-
When cheques and other negotiable instruments drawn upon other
banks like City Bank, MCB, ABN-AMRO or ABL of the same city
(Lahore) are presented in Askari Bank to deposit them in the respective
payee’s accounts, these instruments are lodged in outward clearing of
Askari Bank.

Outward Return:-

 Cheques return will be treated as inward cheques.


 In case the cheques is returned because of wrong presentation
e.g. clearing stamp not affixed or wrong discharge given on the
cheques etc. it should be relodged in the next day clearing after
rectification of the mistake.
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If the cheques is returned for any other reason then

 Enter the cheques in cheques return register, mentioning the


reason as appearing on the cheques return memo received from
the paying bank.
 Advice the customer about fate.
 Return the cheques to the customer after getting sign on the
register.
 Collect the cheques return charges as per S.O.C (Schedule of
charges).

Accounting Entries Of Outward Clearing

Outward Clearing Single Branch:-

In Case OF Lodgment:-

Dr. SBP Account


Cr. Customer Account

In Case Of Return:-

Dr. Customer Account


Cr. SBP Account

Outward Clearing Main Branch:-

In Case OF Lodgment:-

Dr. SBP Account


Cr. M.O Account

In Case Of Return:-

Dr. M.O Account


Cr. SBP Account

Outward Clearing Centre Branch:-

In Case OF Lodgment:-

Dr. M.O Account


Cr. Customer Account
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In Case Of Return:-

Dr. Customer Account


Cr. M.O Account

Inter City Clearing:-

The cheques that are presented in inter city clearing are of another city
and received by air. In this type of clearing the bank confirm at that
time that the cheques are clear or not and give to the rider.

Same Day Clearing:-

The cheques that are presented in same day clearing are the local
cheques and these cheques are clear in same day. Basically it is the
benefit that are provided to customer.

CASH DEPARTMENT
The cash department is the most important department of the bank. It
receives cash from customers and then deposits it into the accounts of
the customers and maintained their Askari Bank ances.
The officers in this department are called teller and there were four
tellers at the counter. This department involves in two activates:-

 Deposit cash in customer’s account


 Make payments from customer’s account

Deposit Cash In Customer’s Account:-

When the customer want to deposit amount in his account at opening of


account or after that then he has to fill a deposit slip that shows the
amount and the account in which the cash will be deposited. Then teller
will receive amount and credit the customer’s account that shows
increase in customer’s bank account.

Make Payments From Customer’s Account:-

When the customer draws a cheque on the bank to pay a certain


amount then teller will debit the customer’s account that shows
reduction in his account Askari Bank ance.
There are two main types of cheques that are
 Open Cheques
 Crossed Cheques
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Open Cheques:-

Open Cheques are those cheques, which are paid across the counter of
the bank. Open cheques may be

• Bearer Cheques
• Order Cheques.
Bearer Cheque:-

If the drawer orders the bank to pay a stated sum of money to the
bearer, it is called a bearer cheque. Any person who lawfully possesses
a bearer cheque is entitled to receive payment of that cheque.

Order Cheque:-

The amount of this cheque is payable to the person whose name is


written on the face of the cheque. The amount is paid at counter after
identification of that person.

Crossed Cheque:-

The amount of this cheque is not paid at counter. The amount of this
cheque is transferred to the person’s account whose name is specified
on the cheque. Two parallel transverse lines are drawn across the face
of the cheque.

Kinds Of Crossing:-

Legally there are two kinds of crossing

 General Crossing
 Special Crossing

General Crossing:-

In case of General Crossing the payment can only be deposited into the
payee’s account only.

Special Crossing:-

In case of Special Crossing the payment can only be made to bank


named therein the cheque.
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askari bank

CHEQUE ENCASHMENT PROCEDURE

Cheque Encashment are made in four steps, these are:-

 Receiving Of Cheques
 Verification Of Signature
 Computer Terminal Process
 Payment Of Cash

Receiving Of Cheques:-

The cash is paid against the cheque of the client. The following points
are kept in mind while receiving the cheque from the client.

 Cheque is drawn on ASKARI BANK


 Cheque is not post dated.
 Amount in words and figure are same.
 It should be a bearer cheque so the word bearer should not cross.

Verification Of Signature:-

After receiving the cheque the cheque the officer verify the signature of
the account holder and the signature on the cheque. If the signature is
not same it is returned back otherwise forward to computer terminal.

Computer Terminal Process:-

The cheque is received in computer terminal, where the computer


operator checks the Askari Bank ance of the account holder. The
operator also sees the stop payment instructions are received from
account holder or not. After considering these points computer operator
post the cheque in account holder ledger and returned back to the
officer.

Payment Of Cash:-

After posting the cheque the officer cancelled the cheque and returned
back to cashier. The cashier enters the cheque in cash paid registered
and pay against the second signature of receiver on the back of the
cheque.
If the payment is of Rs. 50000 the cashier can make it on its own. If the
amount is greater than Rs. 50000 to Rs. 100,000 the cashier and cash
35
askari bank
deposit Incharge will verify the check and will sing it. Then the payment
will be made. But, if the amount is greater than Rs. 100000 to Rs.
1000,000 the manager operation will also verify the check and sign it
so that the payment can be made. If the amount is greater than Rs.
1000,000 the Branch Manager will also verify the check and sign it.
Otherwise the payment will not be made.

CODE OF ETHICS AND


CONDUCT
Askari Bank seeks to maintain high standards of service and ethics
enabling to be perceived as impartial, ethical and independent. In
addition to the general guidelines, the following are the salient features
of the Banks code of ethics and conduct.

• Presence of a corporate culture that seeks to create an


environment where all persons are treated equitably and with
respect.
• Employees must carry out their responsibilities in a professional
manner at all times. They must act in a prudent manner and must
avoid situations that could reflect unfavorably on themselves, the
Bank or its customers.
36
askari bank
• Employees must commit to the continued development of the
service culture in which the Bank consistently seeks to exceed
customers’ expectations. Fairness, Truthfulness and
Transparency govern our customer relationships in determining
the transactional terms, conditions, rights and obligations.
• Employees must safeguard confidential information which may
come to their possession during the discharge of their
responsibilities. Respect for customers confidential matters,
merits the same care as does the protection of the Bank’s own
affairs or other interests.
• Employees must ensure that know your customer principals are
adhered by obtaining sufficient information about the customers
to reasonably satisfy ourselves as to their reputation, standing
and the nature of their business activities.
• Employees must avoid circumstances in which their personal
interest conflicts, or may appear to conflict, with the interest of
the Bank or its customers. Employees must never use their
position in the Bank to obtain an advantage or gain.
• Employees must not accept gifts, business entertainment or other
benefits from a customer or a supplier / vender, which appear pr
may appear to compromise commercial or business relationship.
• Employees must remain Chairmanalert and vigilant with respect frauds,
thefts or illegal activities committed within the Bank premises.
ORGANIZATIONAL
Board of Directors CHART

Chief Executive
Officer

Executive Committee

Executive Incharges

Area Manager North Area Manager South


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askari bank

HIERARCHY

CORPORATE INFORMATION

Lt. Gen. Nadeem Taj Chairman


Chairman Executive
Lt. Gen (R) Imtiaz Hussain
Committee
Maj Gen (R) Saeed Ahmed Khan Director
Mr. Zafar Alam Khan Sumbal Director
Dr. Bashir Ahmad Khan Director
Mr. Shahid Mahmud Director
Mr. Muhammad Riyazul Haque Director
Mr. Ali Noormahomed Rattansey Director
Mr. Wazir Ali Khoja ( Nominee NIT ) Director
Mr. Muhammad Rafiquddin Mehkari President & Chief Executive

Mr. M. A. Ghazali Marghoob Company Secretary

AUDIT COMMITTEE

Dr. Bashir Ahmad Khan Chairman


Mr. Ali Noormahomed Rattansey Member
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askari bank
AUDITORS

KPMG Taseer Hadi & Co. Chartered Accountants

LEGAL ADVISORS

Rizvi, Isa, Afridi & Angell

REGISTRAR & SHARE TRANSFER OFFICE

M/s THK Associates (Private) Limited,


Ground Floor, State Life Building # 3,
Dr. Ziauddin Ahmad Road, Karachi – 75530
P.O.Box No. 8533, Karachi.
Tel : (021) 5689021, 5686658, 5685681
Fax: (021) 5655595
UAN: 111-000-322

REGISTERED OFFICE /HEAD OFFICE

AWT Plaza, The Mall,


P.O.Box 1084, Rawalpindi.
Tel : (051) 9063000
Fax: (051) 9272455
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askari bank

EXECUTIVE PROFILES

• Mr. Shaharyar Ahmed- President & Chief Executive


• Mr. Agha Ali Imam- Senior Executive Vice President
• M.R Mehkari - Senior Executive Vice President
• Mr. Muhammad Arif Mian, Senior Executive Vice President
• Suhail Ahmad Rizvi- Executive Vice President
• Mr. Nazimuddin A. Chaturbhai, Senior Executive Vice
President
• Mr. Ejaz Ahmed Khan, Senior Executive Vice President
• Malik Asad Ali Noon, Executive Vice President
• Mr. Tahir Aziz, Executive Vice President
• Mr. Israr Ahmed, Executive Vice President
• Mr. Moghis Rafiuddin Bokhari, Executive Vice President
• Mr. Nauman Bashir Khan, Senior Vice President
• Mr. Muhammad Ahmed Khan-Senior Vice President

FIELD OF ACTIVITIES

6. Retail Banking
7. Consumer Banking
8. Electronic Banking
9. Correspondent Banking
10. Treasury And Investment

1- RETAIL BANKING

I. Account Opening Department


II. Remittance Department
III. Clearing Department
IV. Cash Department
V. Accounts Department
VI. Foreign Exchange Department

ACCOUNT OPENING DEPARTMENT

This department is responsible for the opening and closing of accounts.


In consideration of Askari Bank , opening and/or continuing to maintain
40
askari bank
any account, the Account Holder/Depositor or Investor would be bound
by the terms and conditions written on the account opening form.

The first part establishes the preference regarding the type of account
to be maintained. The various choices offered in this regard are:

 Current Account
 Saving/ PLS Account
 Royal Profit Account
 Term Deposit Account
 Basic Banking Account

CURRENT ACCOUNT

The current account is the most common account and the most
preferred amongst business concerns. There is no restriction on the
amount of withdrawal. Current account enables the client to do cash
transactions in a more efficient manner.

Features:-
 Current Accounts can be opened in the ASKARI BANK with the
sum not less than Rs.5,000/-
 No Profit
 No deduction of Zakat
 Account close charges Rs.150
 Service charges for maintaining minimum balance Rs.100
 Online Charges Rs.100

Saving / PLS Account


In Pakistan (PLS) saving account was introduced in January 1982.
Individuals who wish to invest their money in order to get profit
maintain this account.

Features:-
 The minimum balance requirement for opening the account is
Rs.10,000.
 There can be profit or loss on the investment of the Customer’s
funds deposited with the bank and this amount shall be
acceptable to the Customer. The profit is paid half yearly.
 Deduction of Zakat
 With holding tax on profit @ 10%
 No Service Charges to close the account
 Service Charges for maintaining minimum balance Rs.50
 Online Charges Rs.150
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askari bank

Term Deposit Account


A term deposit is a deposit that is made of a certain period of time. At
the end of specific period the customer is allowed to with draw the
principal amount.

Features:-
 Fixed Profit
 The longer the period for which the amount is kept higher is rate
of interest.
 Term Deposit usually for the period of three months, six months,
One year, and five years.
 Deduction of Zakat and withholding Tax @ 10%.

Basic Banking Account


Basic Banking Account is opened is ASKARI BANK . The minimum
amount deposit in this account is very small as compared to other
accounts.

Features:-

 Minimum Deposit amount is Rs. 1000


 1 s t two transactions is free of cost
 Bank can close the Account after six month if balance is zero.

REMITTANCES DEPARTMENT

Meaning Of Remittance:-

“Remittance is transfer of funds from one


place to another or from one person to
another.”

A Remittance is an important service provided by banks to customers


as well as non-customers. Since it is not a free service it is a source of
income for the bank.

Parties Involved In Remittance


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askari bank
Four parties involved in remittance:-

 Remitter
 Remittee
 Issuing Bank
 Paying Bank

Remitter:-

One who initiates, or requests for a remittance. The remitter comes to


the issuing or originating branch, asks for a remittance to be made, and
deposits the money to be remitted. The bank charges him a commission
for this service. He may or may not be the branch’s customer.

Remittee:-
A remittee is also called the beneficiary, or the payee. The person in
whose name the remittance is made. A remittee is also the one who
receive the payment.

Issuing Bank:-

The bank that sends or effects the remittance, through demand drafts,
telegraphic transfers, or Mail Transfers.

Paying Bank:-

Paying Bank also know as the drawee branch. The branch on whom the
instrument is drawn. It has to make the payment (usually located in a
different city country).

Kinds Of Remittances

 Transfer within the branch


 Transfer from one branch to another
 Transfer from one bank to another bank in the same city
 Transfers from one bank to another bank in two cities.

Instruments Used In Remittances

 Demand Draft (DD)


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askari bank
 Pay Order (PO)
 Pay Slip
 Call Deposit Receipt (CDR)
 Telegraph Transfer
 Rupees Traveler Cheque (RTC)
 Cancellation of PO, DD & CDR
 Advance Tax against Remittances

CLERING DEPARTMENT
Meaning Of Clearing:-

The word clearing has been derived from the word “clear” and is
defined as:

“A system by which banks exchange cheques


and other negotiable instruments drawn on
each other within a specific area and thereby
secure payment for their clients through the
Clearing House at specified time in an
efficient way.”

Explanation:-

By clearing means sometimes the account holder of Askari Bank


present a cheques, which is not drawn on Askari Bank but the person,
has an account in Askari Bank . In this case bank accepts this cheques
in clearing department and later on collets the amount from bank on
which cheques is drawn through clearing house. This function is called
clearing.

Clearing House:-

It is a place where representatives of all banks sit together and


interchange their claims against each other with the help of controlling
staff of NIFT.

It is one of the services provided by NIFT to other commercial banks.


NIFT acts as a clearinghouse. Different banks are the members of the
clearinghouse. A representative of each bank represents his bank in
the clearinghouse.

Each bank has collected cheques as behalf of their customer but these
cheques are not drawn on their own bank so in the clearinghouse, they
hand over these cheques to respective banks on which these cheques
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askari bank
are drawn. Similarly each bank receives cheques from other banks if
any.

Instruments To Be Presented In Clearing

 Cheques
 Demand Drafts
 Pay Orders

TYPES OF CLEARING

There are four types of clearing:-

5. Inward Clearing
6. Outward Clearing
7. Intercity Clearing
8. Same Day Clearing

Inward Clearing:-

Those Cheques and other negotiable instruments which are drawn on


Askari Bank, sent by other banks, constitutes the inward clearing of
Askari Bank. After having all the stamps and dates of cheques
confirmed, the concerned drawer’s accounts are debited in Askari Bank
limited.

INWARD RETURN:-

Return may be of any reason:-

Presentation Flaw e.g. Clearing stamp not affixed or wrong discharge


given by collecting banker.
 Defect In The Cheques i.e. Post dated cheques, unauthorized
cutting.
 Insufficient Askari Bank ance

Accounting Entries OF Inward Clearing

Inward Clearing Single Branch:-

In Case OF Lodgment:-

Dr. Customer Account


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askari bank
Cr. SBP Account

In Case Of Return:-

Dr. SBP Account


Cr. Customer Account

Inward Clearing Main Branch:-

In Case OF Lodgment:-

Dr. M.O Account


Cr. SBP Account

In Case Of Return:-

Dr. SBP Account


Cr. M.O Account

Inward Clearing Centre Branch:-

In Case OF Lodgment:-

Dr. Customer Account


Cr. M.O Account

In Case Of Return:-

Dr. M.O Account


Cr. Customer Account

Outward Clearing:-

When cheques and other negotiable instruments drawn upon other


banks like City Bank, MCB, ABN-AMRO or ABL of the same city
(Lahore) are presented in Askari Bank to deposit them in the respective
payee’s accounts, these instruments are lodged in outward clearing of
Askari Bank.
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askari bank

Outward Return:-

 Cheques return will be treated as inward cheques.


 In case the cheques is returned because of wrong presentation
e.g. clearing stamp not affixed or wrong discharge given on the
cheques etc. it should be relodged in the next day clearing after
rectification of the mistake.

If the cheques is returned for any other reason then

 Enter the cheques in cheques return register, mentioning the


reason as appearing on the cheques return memo received from
the paying bank.
 Advice the customer about fate.
 Return the cheques to the customer after getting sign on the
register.
 Collect the cheques return charges as per S.O.C (Schedule of
charges).

Accounting Entries Of Outward Clearing

Outward Clearing Single Branch:-

In Case OF Lodgment:-

Dr. SBP Account


Cr. Customer Account

In Case Of Return:-

Dr. Customer Account


Cr. SBP Account

Outward Clearing Main Branch:-

In Case OF Lodgment:-

Dr. SBP Account


Cr. M.O Account

In Case Of Return:-

Dr. M.O Account


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askari bank
Cr. SBP Account

Outward Clearing Centre Branch:-

In Case OF Lodgment:-

Dr. M.O Account


Cr. Customer Account

In Case Of Return:-

Dr. Customer Account


Cr. M.O Account
Inter City Clearing:-

The cheques that are presented in inter city clearing are of another city
and received by air. In this type of clearing the bank confirm at that
time that the cheques are clear or not and give to the rider.

Same Day Clearing:-

The cheques that are presented in same day clearing are the local
cheques and these cheques are clear in same day. Basically it is the
benefit that are provided to customer.

CASH DEPARTMENT
The cash department is the most important department of the bank. It
receives cash from customers and then deposits it into the accounts of
the customers and maintained their Askari Bank ances.
The officers in this department are called teller and there were four
tellers at the counter. This department involves in two activates:-

 Deposit cash in customer’s account


 Make payments from customer’s account

Deposit Cash In Customer’s Account:-

When the customer want to deposit amount in his account at opening of


account or after that then he has to fill a deposit slip that shows the
amount and the account in which the cash will be deposited. Then teller
will receive amount and credit the customer’s account that shows
increase in customer’s bank account.

Make Payments From Customer’s Account:-


48
askari bank
When the customer draws a cheque on the bank to pay a certain
amount then teller will debit the customer’s account that shows
reduction in his account Askari Bank ance.
There are two main types of cheques that are
 Open Cheques
 Crossed Cheques

Open Cheques:-

Open Cheques are those cheques, which are paid across the counter of
the bank. Open cheques may be

• Bearer Cheques
• Order Cheques.
Bearer Cheque:-

If the drawer orders the bank to pay a stated sum of money to the
bearer, it is called a bearer cheque. Any person who lawfully possesses
a bearer cheque is entitled to receive payment of that cheque.

Order Cheque:-

The amount of this cheque is payable to the person whose name is


written on the face of the cheque. The amount is paid at counter after
identification of that person.

Crossed Cheque:-

The amount of this cheque is not paid at counter. The amount of this
cheque is transferred to the person’s account whose name is specified
on the cheque. Two parallel transverse lines are drawn across the face
of the cheque.

Kinds Of Crossing:-

Legally there are two kinds of crossing

 General Crossing
 Special Crossing

General Crossing:-

In case of General Crossing the payment can only be deposited into the
payee’s account only.

Special Crossing:-
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askari bank
In case of Special Crossing the payment can only be made to bank
named therein the cheque.

CHEQUE ENCASHMENT PROCEDURE

Cheque Encashment are made in four steps, these are:-

 Receiving Of Cheques
 Verification Of Signature
 Computer Terminal Process
 Payment Of Cash

Receiving Of Cheques:-

The cash is paid against the cheque of the client. The following points
are kept in mind while receiving the cheque from the client.

 Cheque is drawn on ASKARI BANK


 Cheque is not post dated.
 Amount in words and figure are same.
 It should be a bearer cheque so the word bearer should not cross.

Verification Of Signature:-

After receiving the cheque the cheque the officer verify the signature of
the account holder and the signature on the cheque. If the signature is
not same it is returned back otherwise forward to computer terminal.

Computer Terminal Process:-

The cheque is received in computer terminal, where the computer


operator checks the Askari Bank ance of the account holder. The
operator also sees the stop payment instructions are received from
account holder or not. After considering these points computer operator
post the cheque in account holder ledger and returned back to the
officer.

Payment Of Cash:-

After posting the cheque the officer cancelled the cheque and returned
back to cashier. The cashier enters the cheque in cash paid registered
and pay against the second signature of receiver on the back of the
cheque.
If the payment is of Rs. 50000 the cashier can make it on its own. If the
amount is greater than Rs. 50000 to Rs. 100,000 the cashier and cash
50
askari bank
deposit Incharge will verify the check and will sing it. Then the payment
will be made. But, if the amount is greater than Rs. 100000 to Rs.
1000,000 the manager operation will also verify the check and sign it
so that the payment can be made. If the amount is greater than Rs.
1000,000 the Branch Manager will also verify the check and sign it.
Otherwise the payment will not be made.

ACCOUNTS DEPARTMENT

This department is responsible to keep the record of each and every


transaction and prepare reports about the amount of deposits and
advances and sent to Head office or State Bank of Pakistan on
monthly, quarterly and yearly basis.

Activities
The accounts department deals with various routine activities for the
bank. The main activities performed by it are:-

 Budgeting
 Vouchers batch
 Reporting
 Maintenance & depreciation of fixed assets
 Miscellaneous functions

Budgeting

The department of a bank, for a year makes budget of every branch.


Fiscal year of bank starts from january 01 and ends on december 31.
the accounts department starts preparing budget from october for the
next year.

voucher batch
The voucher batch mean the all kind of vouchers will be sorted as batch
wise for example current a/c voucher makes sprit batch saving a/c
batch sprit and in the same way third batch Mise a/c and general ledger
a/c voucher makes sprit batches maintained date wise for record of the
bank.

Reporting

The accounts department, in the form of reports, clubs the details of


various departments together. Each and every minute detail is provided
in weekly, monthly and annual reports. The reports are submitted to
head office, SBP and to the government.
51
askari bank
The accounts department prepares many reports, of which the most
common are:-
• Statement Of Affairs
• Income & Expenditure
• Business Report
• SBP Report
• Outstand Receipt Report
• Currency Wise Deposits Report

Maintaining of Fixed Assets & their Depreciation

Accounts department maintains the record of all the assets and charges
depreciation on them. The bank normally uses the straight-line method
to compute the depreciation.
It is calculated on monthly basis and charged yearly. Bank not only
depreciates the existing assets but also the assets but also the assets
transferred in and transferred out.

Miscellaneous Functions

The accounts department also performs some other miscellaneous


functions like

i. Closing Entries
ii. Daily activity checking
iii. Report Generation
iv. Minor Expense Recording

Closing Entries:-

Accounts department also passes the closing entries on monthly, 6


monthly and yearly bases to calculate the profit and analyze the overall
performance for a certain period.
Daily Activity Checking:-

All the operations performed in various departments of Askari Bank


Urdu Bazaar Branch Lahore are computerized. The functions are
performed through the customized software. In order to facilitate
double-checking of all the transactions done, every concerned official
also passes vouchers and cheques manually. At the day end all the
vouchers passed by various officers working in different departments
are given to Accounts Department. Furthermore the I.T. department
also prints a very bulky report of all the transactions / entries which
have been fed into the computer system of the branch that day. When
both of these things are at the desk of concerned officer, he performs
52
askari bank
the job of tallying the daily activity report with all the corresponding
vouchers and cheques, in order to track down any discrepancy.

Report Generation:-

The reports generated by the accounts department on a daily, weekly,


monthly, bi-yearly and yearly are written in a proper format. It is neither
necessary nor possible to get acquainted by all of these reports in a
short period of time. Some of the common reports are:-

Daily Advance and Deposit Position:-

 Daily Exchange Position


 Daily MIS information

Closing Reports:-

 Monthly Assets & Liabilities


 Monthly Budget Review Report
 Monthly Monitory Statement
 Monthly Performance Review Report
 Monthly fixed investment

From these statements, five reports carry extreme importance. The five
reports are:-

 Daily position of advances and deposits


 Statement of affairs
 Daily exchange position report
 Fixed assets statement
 Monthly review of performance.

Minor Expense Recording:-

The account department of ASKARI BANK Urdu Bazaar Branch has to


record even the minor expenses of the branch like tea for the staff,
stationery for the branch.

FOREIGN EXCHANGE DEPARTMENT

Foreign Exchange involves the import and export activities. This


department provides protection to the rights of importer and exporter.
The function of this department is to serve as a bridge between the
importer and exporter in order to settle a transaction.
53
askari bank
Foreign Exchange Department handles two activities:-

1. Import
2. Export

Import

Import Department of ASKARI BANK deals with the import of


merchandise. Import can be defined as:

“The bringing of commodities into Pakistan


from outside by sea, land or air.”

Requirement For The Importer:-

These requirement / document must be fulfilled from


importer before doing the import:-

 NTN
 Sale Registration Certificate
 Membership from Chamber Of Commerce

Methods Of Doing Import

 Letter of Credit
 Contract
 Advance Payment
 Open Account

Letter Of Credit

A Letter Of Credit is a financial instrument issued by a bank on behalf


of the registered customers It gives surety to the Exporter that his
amount is safe.

“The letter of credit is a written instrument


issued by the buyer’s bank authorizing the seller
to draw in accordance with certain terms and
conditions.”

Parties Involved In A Letter Of Credit:-

There are four basic parties involved

1. Importer
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askari bank
2. Issuing Bank
3. Exporter (Beneficiary)
4. Advising Bank

Contract

These are the contracts on which there is no liability of the bank. Bank
charge commission against this service.

Main Reason Of Bank Involvement:-

Bank involve in contract for that purpose:-


The record of this foreign exchange entered in State Bank Of Pakistan
(SBP) and this record shows that how many Foreign Exchange go
outside Pakistan that is helpful to count the total imports of Pakistan.

Advance Payment

In mean some part of payment is made before shipment and remaining


is made after shipment. Advance Payment is through TT (Telegraphic
Transfer). But State Bank Of Pakistan allows limit of Rs.10, 000 it
means that Advance Payment does not exceeds Rs.10, 000.
In case of Advance Payment the importer show the document to Askari
Bank after four months as a proof of import.

Open Account

Open Account is reciprocal of Advance Payment. In this case importer


first receive the shipment and then make the payment. And there is no
limit involved in open Account. Importer makes payment of any amount.
In open Account there is no as such restrictions from State Bank Of
Pakistan (SBP) importer simply show the document and make payment
after one year means no restriction of time is involved.
In all these four methods Letter of Credit is mostly used in Askari Bank
Urdu Bazaar Branch Lahore.

Export
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askari bank
Exports are major sources of earning foreign exchange and play an
important role in the economic development of the country. It helps to
utilize excess resources of the country.

“Exports mean selling goods to another country.”

Exports of all eligible commodities through authorized banking channels


are admissible under exchange control regulation.

Requirement For The Exporter:-

These requirement / document must be fulfilled from


exporter before doing the export:-

 NTN
 Sale Registration Certificate
 Membership from Chamber Of Commerce

As well as the market stability, reputation, financial position of the


exporter is first of all checked.

Documents To Be Attached For Export


 Commercial Invoice
 Bill of lading
 Packing list
(a) Total quantity
(b) Net weight/carton
(c) Gross weight/carton
(d) Total net weight/carton
(e) Total gross weight
 Bill of exchange (original or draft)
 E-form: Initial document on which total export proceeding is
based. In this form, all the conditions are given, which are
necessary for exports.
 Letter of credit: It is written agreement between importer and
exporter.
 Certificate of Origin (Form –A)
 Insurance (if any)

2. Consumer Banking

 Credit Cards
 Hilal Card (Debit Card)
 Auto Loan
 Home Loan
 Consumer Durables
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askari bank
 RTC’s
 Money Gram
 Agriculture Finance

Credit Cards
Askari Bank Credit Card master card is accepted at nearly 30 million
locations in more than 150 countries around the globe and at over
10,000 establishments in Pakistan.
Once the application form and required documents have been
processed and approved, it takes 2-3 weeks time period to reach you.
Its exceptional features are as follows:

 No Joining Fee
 No Annual / Renewal Fee
 Low Service Charges
 Askari Bank once Transfer Facility
 Global Askari Bank Acceptability
 Revolving Credit
 Step-By-Step (SBS) Monthly Installment Plan
 Free Supplementary Cards
 24-Hour Phone Banking Service
 All Billing in Pak Rupees
 Comprehensive Travel Protection
 Monthly Statement of Account
 Exciting Rewards
 Special Discounts and Promotions at various outlets

DOCUMENTS REQUIRED

For Salaried person:-

 Copy of NIC
 Current Salary Slip / Salary Letter / Proof of BPS (For Govt.
Employees) / Proof of rank (For Armed Forces Personnel).
 Computerized Personal bank statement (on ban letterhead in
original) for last six months

Additional Documents for Classic Blue Applicants:-

 Proof of minimum six-month experience


 Copy of Graduation Certificate or equivalent.
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askari bank

For Self Employed:-

 Copy of NIC
 Computerized personal bank statement (on bank letter head in
original) for last six month.
Additional requirements:-

 Partnership deed & personal account statements of the partners


(if any) for last six month.
 Bank letter / certificate confirming Proprietorship.
 Memorandum / Articles of Association /Form A.
 Financial Statements
 Recognized professional degree / membership certificate to
professional association.

MANAGEMENT OF THE BRANCH


Staff of the branch consists of 30 members:

DESIGNATION
NO OF EMPLOYEES
Branch Manager 01
Operation Manager 01
Credit Manager 01
Foreign Trade Manager 01
Officer Range I 02
Officer Range II 05
Officer Range III 05
Cashier 04
System Administrator 01
Telephone Operator 01
Gun Man 04
Peons 03
Driver 01

Learning From A/C Opening Department


This Branch is having about 7000 accounts but there was only one
officer, Mr. Muhammad Shahid to handle this tough work. He has to
deal different people.

My experience in this department was really very good. I learnt how to


handle different customers, how to fill Account Opening Form, what are
the required documents that should be with you in order to open an
account, what types of account Askari Bank is offering to the
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customers, what are the facilities that an account Holder can enjoy and
what are the profit rates Askari Bank is giving to its customers.
I have learnt the procedure that an Account Opening Officer has to
follow in order to open and maintain an Account.

Procedure of Opening an Account


The Account Opening Form:-

When a client comes to the bank, and makes a request for opening of
an A/C. The officer says that first fill up a prescribed application form.

Completion of The Form:-

The name, occupation, and complete address of the person opening the
account are written in the columns that are provided in the form.
Signatures are obtained from the customer where it is required. These
signatures should be usual signatures and he would operate the
account with them.

Introduction:-

The introduction of a current account holder is accepted for the opening


of either a current account or a saving account. The introducer should
be Account Holder. The signature of the account-holder introducing the
account is obtained at the place provided for in the account opening
form.

Specimen Signature Card, Cheques Book Requisition, Online


Form:-

The signatures of the client are obtained on a specimen Signature card


chequebook requisition and online form. These specimen signature
cards are obtained in duplicate with two signatures on each card from
the customer. Every time a Cheque is received for a payment from the
client, the signature on the Cheque are verified by comparing them with
the Specimen Signature Card.

Signature Difference Form:-

The signature of the client are obtained on a signature difference form


if his / her signature differ from the computerized National
Identity Card.

Vernacular Form:-
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askari bank
The signature of the customer is also obtain on the vernacular form if
he / she signs in a language other than English.

Account Number:-

When all the formalities are completed then the final approval of
account has to be taken from the Branch Manager. After obtaining
approval of the branch manager an account number is allotted to the
customer all the information is entered into the computer. Then that
account number is write on the Cheque Book, Specimen Signature
cards and account opening form.

Issuance Of A Cheque book:-

After opening an A/C with the bank, the A/C holder receive a letter of
thanks from askari bank then after receiving this letter client come to
bank and makes a request in the name of bank for the issuance of a
Cheque book. The A/C holder mentions title of A/C, A/C number, sign it
properly. Normally ASKARI BANK issues a Cheque book having 25
leaves for Saving Account and 50 leaves Cheque Book to Current
Account Holder. Every Cheque book also contains one leaf that is used
for another issue of a Cheque book.

Entry Of A Cheque book:-


Before issuance of a Cheque book, the employee performs certain
functions. They include:
• Stamping requisition slip that is in cheque book.
• Enters it in the Cheque book issue register.
• Check whether or not a senior officer has verified the signatures,
if not then first gets them verified.
After entry in the manual register, the employee issues the Cheque
book to the A/C holder with his/her signature on the register.

TYPES OF ACCOUNT
Accounts Of General Customers

 Minor Account
 Illiterate Person Account
 Joint Account

Accounts Of Special Customers


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askari bank

 Individual Account
 Proprietorship Account
 Partnership Account
 Limited Company’s Account
 Account of Club Societies and Association
 Agents Account
 Trust Account

MINOR ACCOUNT
Account Opening Procedure:-

The natural guardian who signs both Account Opening Form and
Specimen Signature Card can open account in the name of minor.

Title Of Account:-

The title of account should clearly indicate both the names of minor as
well as guardian in the following manner:-
e.g. Amir Rafique ( minor) Muhammad Rafique (Guardian)

Special Instructions:-

The guardian will continue to operate the account even if minor attains
the age of majority.

Documents:-

 Computerized National Identity Card of Guardian


 Form “B” of minor
 In case guardian is appointed by the court of law then attested
copy of guardianship certificate be obtained and placed on
record.

Illiterate Person Account

Before opening such account the illiterate person should be informed


that he / she cannot issue cheques in favour of any other person.

Account Opening Procedure:-

Title Of Account:-

Name of account holder should be written in block form.


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Special Instructions:-

Personal Withdrawal

Documents:-

 Copy of Computerized National Identity Card


 Two attested photographs to be obtained for pasting on AOF and
other on Specimen Signature Card.
 Thumb Impressions
Male -------- Left Hand Thumb Impression
Female ------- Right Hand Thumb Impression

Joint Account

These are the account of two or more persons who are neither partners
nor trustees.

Account Opening Procedure:-


Title Of Account:-

Title of account holder should mentioned the names of all the joint
account holders.

Special Instruction:-

At the time of opening the account clear and specific instructions


should be obtained regarding operation of the account and payment of
the Askari Bank ance at the death of one or more joint account holders
in the following manner:-
• The account shall be operate by any joint account holders singly.
• By either or survivor singly
• By any two or more joint account holders or by any two or more
survivors jointly.
• By all the joint account holders jointly
• By all the survivors jointly.
These instructions as far as possible should be obtained in handwriting
of the parties concerned, under the signature of all the joint account
holders.

Documents:-

 Computerized national Identity Card of all the joint account


holders.
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Mode Of Signature:-

 All joint account holders are required to sign as applicant and in


the column of special instructions.
 Specimen Signature of only those joint account holders are
required who are authorized to operate the account.

Individual Account

When a single man or woman opens an account in his or her own name
and has the right to operate, it is called individual A/C.

ACCOUNT OPENING PROCEDURE:-


Title Of Account:-

Title of Account should mentioned the name of the person who operate
the account.

Special Instructions:-

At the time of opening the account clear and specific instructions


should be obtained regarding the nominee of the account holder means
after the death of the account holder who will operate the account.

Documents:-

 Computerized national Identity Card.


 Proof of Income if he / she is a salaried person then the pay slip
or salary certificate of that person.

Proprietorship Account

When the owner of the firm operating singly, open an account in his
firm name.

ACCOUNT OPENING PROCEDURE:-

Title Of Account:-

Title of account must be in the name of the proprietorship concern.

Special Instructions:-
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askari bank
In case of proprietorship concern, the special instruction should cover
the style of the account and the name of the person who will operate
the account as sole proprietor. For example, if the account to opened is
in the name of “Islamabad Cloth Store”, the person who is the sole
proprietor should declare as such.

Documents:-
 Computerized National Identity Card (CNIC) of proprietor.
 Declaration for proprietorship concern.
 Proprietorship Stamp
 Letter of request to open the account on the letterhead of
proprietorship.
 Third party Mandate, in case any other person has been
authorized by the proprietor to operate the account.
 National Tax Number (NTN) but it is optional.

Partnership Account

“Partnership” is a relationship between persons who have agreed to


share profits of a business carried on by all or any of them acting for
all.

Account Opening Procedure:-

Title Of Account:-

Title of account must be in the name of the firm as declared by the


partners.

Operational Instructions:-

 Operations on the account must be allowed strictly in accordance


with the instructions given in partnership mandate and
Declaration (Part III) in terms of section 25 of Partnership Act
1932.
 According to Partnership deed, if given.

Documents:-
 Copy of Computerized National Identity Card of all the partners.
 Copy of registration Certificate (if a registered firm)
 Letter of request to open the account on the letterhead of
partnership.
 Partnership Stamp
 Partnership Deed
 Third Party Mandate, if third party is authorized to operate the
account.
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askari bank
 NTN (optional)

Limited Companies Account

Section 2 of the Companies Act, 1913, defines companies as:-


“An association of individuals for the purpose of
profit, possessing a common capital contributed by
the members constituting it, such capital being
commonly divided into shares, of which each
possess one or more and which are transferable by
the owners.”

Account Opening Procedure:-

Title Of Account:-

Title of account should be exactly in the same name and style as


mentioned on the memorandum and article of association.

Special Instructions:-

All the special instructions should be given to the bank in the form of
Resolution of Board of Director.

Documents:-

 Computerized National Identity Card (CNIC) all the


Director attested by company CEO.
 Resolution of Board of Director passed under
Company’s seal to open account.
 Memorandum and Article of Association
 Certificate of Incorporation Form 29 (B) (Lasted Copy).
Company secretary will certify all these copies.
 List of Directors and authorized signatories.
 Certificate of Commencement of Business (for Public limited
company’s only).

Trust Account

According to section 3 of Trust Act, 1882:

“A trust is an obligation annexed to the


ownership of property and arising out of a
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askari bank
confidence proposed in and accepted by him for
the benefit of another, or of another or owner.”

Account Opening Procedure:-


Branches are allowed to open the Trust Account subject to the prior
approval of Area Manager, after scrutiny of the legal documents by the
legal advisor.

Title Of Account:-
The account should be opened in the name of the trust. However, if the
account is opened in the name of the trustees, the account should not
be treated as a joint account, rather it should be treated as a trust
account.

Special Instructions:-

The Banker should examine the trust deed very carefully. Particular
attention should be paid to the borrowing powers, status of account in
case of death of any trustee or signatory, and provisions for the
appointment of new trustees.

Documents:-

 Attested photocopy of Computerized National Identity Cards


(CNIC) of all the trustees.
 Attested copy of Certificate of Registration.
 Certified copy of Instrument of Trust / Trust Deed

Mode of Signature:-

All the trustee are required to sign the account opening form, Specimen
Signature Card, and cheque book requisition slip in their official
capacity.

Clubs, Societies and Associations Account

These are non- trading / non- profit organization and are formed for the
promotion of culture, education, recreational activities and charitable
purpose etc.

ACCOUNT OPENING PROCEDURE:-


Title Of Account:-

Account must be opened in the name of organization in the following


manner:-
e.g. Islamabad Cricket Association

Operational Instructions:-
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askari bank

 All the parties must be in accordance with the clauses of the


resolution.
 In case of death of office bearer, account should be blocked until
new resolution is received.

Documents:-

 Copy of bye- laws / regulations.


 List of members of managing / executive Committee.
 Copy of certificate of Registration (if registered)
 Copies of CNICs of the members of Executive Committee.
 List of names of officials authorized to sign on behalf of the
organization along with the Specimen Signature under the
signature of the Secretary of the club / society.

Agent Account

Account Opening Procedure:-

Title Of Account:-

Account must be opened in the name of agent.

Special Instructions:-

 Manager should ensure compliance of contract between principle


and agent.
 Agent cannot delegate powers to third party.
 Transfer between principle and agent account should be in
accordance to agreement.
 In case of death / insolvency / insanity of principle agency
transactions are automatically terminated.

Documents:-

 Attested photocopy of Computerized National Identity Card


(CNIC) of the agent.
 Certified copy of Power of Attorney.

Learning in Remittance and Clearing Department

There were two officers in this department one was Miss. Hina Naeem
Khan and the other was Mr. Nadeem Zahid.
Miss Hina Naeem Khan was handling inward clearing and Outward
Clearing. While issuance of other negotiable instruments like Pay
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askari bank
Order, Demand Draft, Pay Slip etc, were handled by Mr. Nadeem
Zahid.
In these departments I saw the clearing process and negotiable
instrument that transfer the money.

Clearing Process

Stamps Put On the Cheques:-


When the cheques are presented in MCB Bank Branch to be deposited
in their respective payee’s accounts, different stamps are put on
cheques before their lodgment in outward clearing.

Crossing the cheques:-


Crossing means two parallel lines, drawn across the face of the
cheques with or without words written in between them. Crossing may
be general or special. In clearing, cheques are crossed specially.
Cheques are stamped with bank’s name between two parallel lines to
constitute special crossing. After the cheques have been crossed
specially, the holder cannot receive payment except through the banker
named on the cheques crossing saves the instrument to go it in illegal
hands. If, crossed cheques is lost or stolen, there is no risk involved.
So it is an effective means of minimizing the risk of loss.

Clearing Stamp:-
After the cheques have been crossed specially, clearing stamp is put
on the cheques and other instruments, with the next date, so these
cheques would have to be presented in their concerned drawee banks
on the subsequent day.

Endorsement Stamp:-
The word endorsement means anything written or printed on the back of
an instrument. So endorsement stamp has to put with words “Payee’s
account Credited in Askari Bank ,sargiodha”.

National Institutional Facilitation Authority:-


After putting these three stamps on cheques & other negotiable
instruments, they are sent to NIFT. NIFT after segregating the cheques
of different banks delivers them to their concerned banks.

Send Report To The Bank:-


After delivering the cheques to different banks NIFT send report to
ASKARI BANK
sargodha, then the bank’s staff tally the amount of that report for its
own record.

Delivered Cheques to Respective Banks:-


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askari bank
Next morning, these cheques are delivered to the respective banks
between 9:00 to 9:30AM. In the same manner, other banks present their
clearing drawn on Askari bank. Total number of cheques and their
amount delivered to other banks and received from them are written on
the Clearing House schedule branch for their payment. After proper
scrutiny of cheques, verification of signatures and confirmation of
balance in the account, the Officer Clearing Department Debit the
customer Account. If any cheque is not passed due to insufficient
balance or any other reason, Officer Cash Department returns the same
cheque by attaching a cheque return memo containing reason for
return.

Credit The Customer Account:-

If the cheques are clear then the ASKARI BANK credit the customer
Account. If the bank receives the outward return due to any reason then
this cheque is entered into the cheque returned register and bank
charges are deducted according to the schedule of charges.
Then send the outward and return inward as IBDA (Inter Branch Debit
Advise) to Main Branch LDA Plaza. And LDA Plaza sends outward
return and inward to ASKARI BANK Urdu Bazaar Branch, Lahore.

PROCEDURE OF SETTLEMENT
Assume that ASKARI BANK got the cheques which are drawn on HBL,
bank alfalah , and MCB for amount Rs.50, 000/-, Rs.30,000/-,
Rs.15,000/- respectively, its total being Rs.95,000/-. It means that this
amount is to be credited to ASKARI BANK account with NIFT. On the
other hand the cheques drawn on ASKARI BANK are from HBL,
ASKARI BANK and MCB of Rs.15,000/- Rs.75,000/-, and Rs.30,000/-
respectively, its total being Rs.120,000/-. It means that this amount is
to be debited from ASKARI BANK account . The difference between
Rs.95,000/- credit and Rs.120,000/- debit is Rs.25,000/- debit, which
means the house is against ASKARI BANK for Rs.25,000/-.

Settlement sheet:-

In clearing department this sheet is prepared and contain detail amount


of cheques received, amount of cheques will be paid and balance of
these accounts.

Demand Draft

Demand Draft is a negotiable instrument, which is drawn by one branch


to another branch of the same bank. In case of agency arrangement
Demand Draft can also be issued by one branch of the bank payable to
other branch of the other bank e.g. DD issued by the ASKARI BANK
payable by UBL.
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askari bank

Explanation:-

If any person wants to make payment from one city to another city then
he can make payment through demand draft. Bank charges a
commission for performing this kind of service according to bank rate
schedule, which is revised after 6 months. Demand draft may be issued
or paid. There are two ways to issue Demand Draft:-

1. Issue of DD against cash payment


2. Issue of DD against Debit of the account

The current rate schedule of DD is as follows:-

Up to Rs. 10,000 0.25% or Rs.25


Which ever is higher

Rs.10, 001 to Rs. 100,000 0.20% or Rs.40


Which ever is higher

Rs. 100,001 to Rs. 10,00,000 0.10% or Rs.200


Which ever is higher

Rs. 10,00,001 to Rs. 20,00,000 0.75% or Rs.1000


Which ever is higher

Above Rs. 20,00,000 0.06% or Rs. 2000


Which ever is higher

Process of the Issuance of DD:-

When a customer requests ASKARI BANK Urdu Bazaar Branch, Lahore


to provide him a DD made on his account or against cash payment for a
particular city like Islamabad. Then, after having the total amount
including commission demand draft is issued in favor of the specified
person in that city and is drawn on ASKARI BANK , Islamabad Branch.
So, when payee in any bank presents this demand draft, it constitutes
the inward clearing of Askari Bank , Islamabad Branch.

ENTRIES
When ASKARI BANK receive the Demand Draft then it pass the
following entry:-
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askari bank
Dr. Head Office Account with Treasury
Cr. Demand Draft Payable Account

When ASKARI BANK issue the Demand Draft then it pass the
following entry:-

Dr. Customer Account


Cr. Transit Account

Then
Dr. Transit Account
Cr. Head Office Account with Treasury

At the end of day the Transit Account will be zero (nil).

Entry Of Commission that ASKARI BANK Received From


Customer:-

Dr. Customer Account


Cr. Commission on Remittances Account

Entry Of Excise Duty that ASKARI BANK Recovered From


Customer:-

Dr. Customer Account


Cr. Excise Duty Recovered Account

PAY ORDER
Pay order is a negotiable instrument made by the bank, on account of a
customer, to pay on order the specified amount to the directed person
(payee).

Use Of Pay Order:-

Pay orders are used to make payment or to transfer money, with in the
same city. Pay order is always drawn on the bank that has issued it.
The main advantage of pay order is that it cannot be dishonored by the
bank. Pay order can be endorsed if it is not crossed. The payee may
present pay Order for payment either over the counter for cash
payment or the payee may transfer credit to his account.
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The current rate schedule of Pay Order is as follows:-

Issuance of Pay Order Rs. 50/- for a/c holder


Rs. 500/- for non-a/c holder'

Cancellation Rs. 100/- for a/c holder


Rs. 100/- for non-a/c holder

Duplicate Issuance Rs.100/- for a/c holder


Rs. 100/- for non-a/c holder
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PAY SLIP

“It is a negotiable instrument like cheque


issued by the bank on its own account to
pay a specified amount to the directed
person.”

Use Of Pay Slip:-

Pay Slips are used to make payment by the bank itself against certain
expenses incurred; like furniture purchased by bank, electricity
charges.

Issuance Of Pay Slip

Bank issue a pay slip in favour of person, to whom payment is made.


 Affixes payee’s Account only stamp.
 Revenue stamp pasted on it.
 Entry in bank smart.

Example:-

If bank has purchased furniture (fixed Asset) costing Rs. 40,000 from a
company then a pay slip in the name of that company is made and,
instead of writing the issuing date on pay slip, date of encashment
(realization) is written when it is presented in bank.

Call Deposit Receipt (CDR)

Askari Bank also issues Call Deposit Receipts (CDR).

“It is an instrument like Cheque issued by the


bank on account of a customer & in favor of a
person, to pay the specified amount”.

CDR’s are issued to make payments, especially when a company goes


for some tenders or for purchase of government securities. The bank
enjoys the benefit of keeping funds deposited until the payment is not
made.
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Rupees Traveler Cheque

Askari Bank presents Rs.1,000, 5,000 and 10,000 denominations of


travellers cheques, making it very convenient to carry money while
travelling or keeping your emergency cash safe. The paying bank has
to verify the signatures and after verification payment is made.

Cancellation of PO, DD & CDR

After issuance of Pay Order, Demand Draft or Call Deposit Receipt by


Askari Bank, Urdu Bazaar Branch, Lahore, if any one of these has to be
cancelled by the customer, it is returned in the bank. Then, after
deducting the cancellation charges of Rs.100 for PO and Rs. 200 for
DD, the remaining (net) amount is paid to the customer.

Advance Tax against Remittances

Advance Tax is deducted on issuance of PO & DD from customers


except those who have tax exemption form and credited in Tax on PO &
DD account. Tax deducted has to be paid to State Bank of Pakistan
(SBP) with in one week of issuance of these instruments.

COLLECTION
All the cheques under collection are called cheques under Collection in
Askari Bank . There are two types of bills for collection:

 Outward Bills for Collection (OBC)


 Local Bills for collection (LBC)

Outward Bills For Collection

Meaning Of OBC:-

“When an instrument is drawn on a bank,


which is located outside the city, its
proceeds can be collected through a
mechanism called Outward Bills for
Collection (OBC).”
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Features:-

 Remunerative
 Transfer of funds between cities
 Collecting Bank work as an agent
 Collecting Bank is the holder in due course

Procedure

All the cheques are received on one counter along with the paying slips
duly filled in properly containing particulars of cheques and account
holder. Counter folio of paying slip is handed over to the customer by
putting stamp for “cheque received for collection for Askari Bank” on it
duly signed by officer. These cheques are scrutinized and cheques for
local clearing are separated from OBCs. Cheques for local clearing are
entered in Clearing Register, whereas cheques for collection are
entered in OBC register. OBC number is allotted to the cheque from
OBC register. Special crossing and bank endorsement stamps are
affixed on the cheque.

OBC REGISTER

Da te O BC Ti tle O f Acc ount Dr a w n Ma i le d I ns tr um e nt Am ount I ni ti al


No Ac c ount No On To No Rs

OBC schedule is attached with the cheque and dispatched to the main
branch of that city for collection. If they do not have any branch in that
city, then cheque will be sent to the Collecting Agent of Askari Bank for
that city, and if they do not have any collecting agent even, then
cheque can be sent directly to the drawing branch. Instructions are
given on the OBC schedule for the payment of that cheque. Contra-
liability vouchers are also posted in the system. When OBC is realized,
collection bank pays the amount through IBCA if it is the same bank or
through DD if it is another bank. If DD is received against OBC, it is
presented in the clearing for collection. If IBCA is received from the
branch for the payment of OBC, certain vouchers are posted in the
system.
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askari bank
OBC REALIZATION

Commission Postage Net Date Of Initial Remarks


Amount Payment

Entries

Lodgment Entries:-

Dr. Customer Liability


Cr. Banker Liability

Realization Entries:-

Dr. Banker Liability on OBC


Cr. Customer Liability on OBC
(Reversal of the Contra Liability)

Dr. M.O Account


Cr. Customer Account
(For the amount of the instrument)

Dr. Customer Account


Cr. Postage Charges
Cr. Commission on OBC

Local Bills For Collection


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askari bank
If any other bank sends a cheque of Askari Bank , it is Inward Bill for
Collection. Askari Bank remits money after checking the balance of the
customer account.

The process of collection starts when the cheques of Askari BankLtd.


Are received from other banks. Then these cheques are sent to the
Head Office Rawalpindi, which sends the cheques to SBP for clearing
and get the confirmation of cheque and credit advice. Main activity of
clearing is performed by Head Office, which contacts other banks
through SBP.

Entry

Dr. M .O Account
Cr. Customer Account

Learning from Accounts & Finance Department

There were two officers in this department; Mr. Atif and Mr. Nouman
They have divided their work between them. Mr. Atif handles Reporting
and Mr. Nouman handles daily activity checking.
I used to help Mr. Nouman in Daily Activity checking, sorting and
counting of vouchers and how to calculate the deprecations of all fixed
assets and how to prepare the daily advances and deposits statement,
Daily MIS information, Foreign Currency / Exchange position (Currency
UK Pounds, Currency Euro, Currency US Dollars). I learnt from Mr. Atif
the items of the Askari Bank ance Sheet of Bank and saw the format of
different reports. He helped me to understand his work. He told me
about the reports that he has to prepare & the purpose of those reports.
It was one of those Departments in which Customer interaction is not
involve rather paper interaction is important.
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askari bank
Learning in Home Finance

In Home Finance there was one officer – Mr. Kashif. I saw few
customers in this department. I learnt what the debt to equity ratio is in
Home Finance, how to calculate installment, what are the documents
required to get this product, what the eligible criterion is for Home
Finance Agreement, and what is the procedure and activities of this
department. What is that maximum limit. What are requirement to apply
for this Finance.

Steps to Arranging ASKARI BANK Home Finance:-

 ASKARI BANK provides you with all the information you need
about Askari BankHome Finance. This can be through a face-to-
face meeting with our Relationship Officer, or over the telephone,
or through the post.
 You give some basic information about your income and the
amount you need so that ASKARI BANK can give you an
agreement in principle.
 Once you have decided on the amount you want, you complete an
application form and pass it on to us, together with the required
documents.
 ASKARI BANK makes some inquiries about your financial
circumstances.
 It carryout a valuation of the property and verification of your
income.
 Once it has carried out all the initial processing, ASKARI BANK
send you our offer through a “Facility Advice Letter”.
 You sign the Facility Advice Letter and return it to ASKARI BANK
 Its Documentation Control Centre will get in touch with you to
complete
Finance & Security documentation including legal opinion on the
title documents of the property and also the insurances.
 You sign the Finance Agreement and Charge documents.
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askari bank
 ASKARI BANK legal advisor will accompany you to the Registrar’s
office on the appointed date with our cheque against the financing
for conveyance of the property and your home finance begins.

Learning from Trade Finance

This was a new department in Askari Bank so there was only one
officer whose name was Mr. Hafiz Farrukh who had experienced in
trade finance. I learnt the different methods of Trade Finance,
requirement of importer and exporter before doing import and export,
requirement of opening of L/C and procedure of opening L/C, I read L/C
that helped me understand that what things would be included in it. In
this department few Customers were seen because this was a new
department and it will take time to generate profits for the bank.

Requirement Of Opening Letter Of Credit

For opening L/C, the importer has to submit the following documents:-

 Performa Invoice
 Application For Import
 Annexure B
 Insurance of consignment
 Promissory Note
 L/C Margin
 L/C Commission

Clauses of Letter of Credit

A letter of credit contains various clauses prominent of them are:


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askari bank
 Type of L/C
 Amount
 Description Of Goods
 Trans-shipped / Part-shipped or not.
 Collection Charges
 Validity Period Of L/C

Import Process

 An L/C form is filled.


 The customer prepares insurance document from any insurance
company.
 Filled the SBP Application form that is called Appendix B.
 Performa Invoice is Prepared.
 Undertaking from the customer on letter Head.
 Prepare four copies of Form I (Form I explain the detail of import
that are helpful for the SBP.
 Approval From Area Office
 Prepare voucher and make entries in the system.
 Preparation of L/C
 These forms are then sent to the Swift Centre of ASKARI BANK .

Swift Centre Machine:-

• It is the fastest and the safest mode of financial


communication in the world.
• These are according to the rules and regulations of ‘UCP-
500’ just like prudential regulations of SBP.

 Now this is received by the exporter’s bank.


 When ASKARI BANK receives shipment documents and
documents are either rejected or accepted within 7 days.
 If accepted, the payment from the importer is made.
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 An IBCA is received of that amount and send to the exporter’s
bank.
 Now during these transactions, both the banks receive profit in
the form of commission.
• ASKARI BANK startly receives commission / charges from
the importer.
• Conversion of foreign currency into Pakistan rupees.

Payment Against Document (PAD)

In case the payment is not made, then an account of PAD is opened.


The bank the issuing bank on the customer’s behalf of a letter of
credit, pays the negotiating or advising bank, and debits the PAD
account, till its payment by customer. Until the realization of the
amount a full set of documents representing title to the goods
shipped by the foreign exporter, is held by the bank as security.

Dr. Payment Against Documents (PAD)


Cr. Bank Current Account
When the importer brings payment then,

Dr. Current Account


Cr. Payment Against Documents (PAD)

Export Procedure:-

 Receipt of Letter Of Credit:


 Issuance of E-Forms that is verified by an authorized signatory.
There are four copies of it.

Copies Of E-Form
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askari bank
 Original: is sent to the custom officer
 Duplicate: Bank receive the duplicate
 Triplicate: is sent to the State Bank Of Pakistan
 Quadruplicate: is kept by the exporter for his personal
record.
 Verification of E-Form
 Export Documents
 Scrutiny Of The Documents
 Dispatch
 Realization of Export Proceeds.

Learning in Corporate & SME Finance

This department was at second floor of the branch. This department is


giving a huge amount of return to the branch. There were two officers
Mr. Irfan Ahmad Khan and Mr. Atif. I learnt that which assets could be
leased through this department. What are the documents that are
required from different type of client like sole proprietorship,
Partnership, company and trust. How the risk can be evaluated.
Preparations of offer latter, Credit line proposal, approval process,
Borrower’s Basic Fact Sheet for SME’s, Financial Statement of
applicant.

Learning From the Car Finance Department

One officer in this department, whose name was Mr. Shakeel used to sit
the second floor of the branch.

Although the Urdu Bazaar Branch was small but still the demand for
financed cars through Askari Banklead this department to prosperity.
This department handles a large number of customers daily and,
without overstatement; this department is the third “busiest” department
after the Account Opening
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Department. It requires constant customer interaction and requires high
level of intelligence to screen the validity of the customers.

Where as sound marketing skills are required to actually force the walk-
in customer to select Alfalah Car Financing, still stronger skills are
needed to scan the incoming customer for validity. I learnt how to face
the customers conveniently, how roper files should be maintained, how
to apply for a car, what are requirement to apply for this Product, what
is that maximum limit, what is the procedure to this department.

Branches Network
North Region 30
Central Region 41
South Region 44
Islamic Banking Branches 06
Offshore Banking Unit 01

Total Branches 122

Credit Card Centers 06


Retail Banking Centers 06

Business & Operational Review

During 2006, Askari Bank continued with its growth momentum and
posted substantial earnings despite highly competitive business
environment. Although monetary tightening helped in reducing
inflationary pressures in the economy during fiscal 2006, aggregate
demand remained high as indicated by the strong GDP growth, high
growth in private sector credit, sluggish decline in core inflation and
large external account deficit.
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The year on year growth in private sector credit remained strong,


although down from the phenomenal growth witnessed last year. The
slowdown in private sector credit was not broad based and was mainly
due to net retirement by sugar and cotton spinning sectors.

Corporate Banking

This business in managed by a central corporate banking division


based at head office Rawalpindi and Supported by dedicated marketing
and back office units in Karachi, Lahore and Rawalpindi. The division
maintains a diverse portfolio and primarily offers Structured financing
Solutions to cater for the business needs of its clients. During 2006,
corporate banking further expanded its customer base and new
relationships were established in telecommunications sectors, fuel and
energy, and fertilizer sectors. In order to enhance focus on relationship
management and service quality, more dedicated and experienced staff
is being assigned to this division.
The corporate Banking will continue to play a major role in loan
syndications and structured financing transactions with the objectives
of providing a range of corporate banking solutions to its valued clients.

Products Lines

Here we discuss the products which are given by us to our customer


facilitations. There is many product as followed.

CONSUMER BANKING SERVICES

Is la m i c
Con s ume r Ba nk i ng Se r vi c es
Ba nk i ng Se r vi c es
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I sla mic Co rp o ra te
P e rso n a l Fina n ce Ba n kin g
Mo rt ga g e Fin an ce I sla mic In ve st me n t
B u sin e ss Fina n ce Ba n kin g

S ma rt Ca sh I sla mic Trad e Fina n ce

A ut o Fina n cing I sla mic Ge ne ra l


Ba n kin g
Ca sh Ca rd
I sla mic Con su me r
P ro f it / Ma rkup Ra te s Ba n kin g
De cla re d We igh t ag es
P ro f it Rat e s
K issa n Eve r G ree n
Fina n ce
Cor por a te &
Agr ic ul tur e
K issa n Tra ct o r Fin an ce I nv es tm e nt
Fi na nc e S ol uti ons
Ba nk i ng
K issa n Aa bp a sh i
Fina n ce
K issa n Live sto ck Co rpo ra te B an king
De ve lo p men t Fina n ceDivisio n
K issa n Fa rm Te rm Lo an s
Me ch an iza t ion Fin an ce
Fu n d Tra n sfe rs /
K issa n Tran spo rt Re mit ta n ce s
Fina n ce In ve st me n t B an kin g
Divisio n
P ro je ct Fina n ce
I sla mic Fina n ce

Personal Finance

Personal Finance is a parameter driven product


for catering to the needs of the general public
belonging to different segments. One can avail
unlimited opportunities through Askari Bank's
Personal Finance. With unmatched finance
features in terms of loan amount, payback period
and most affordable monthly installments, Askari Bank's Personal
Finance makes sure that one gets the most out of his/her loan.
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Once a good credit history is established, the door to opportunity opens


much wider.

One of the quickest approval processes around


One can avail unlimited opportunities through Askari Bank’s Personal
Finance. With unmatched financing features in terms of loan amount,
payback period and most affordable monthly installments, Askari Bank’s
Personal Finance makes sure that you get the most out of your loan.
No matter what your need is, Askari Bank has more ways to serve you
than ever before.

Product Featuring:

Borrower: Resident Pakistani Nationals.

Facility: Term Finance


Financing Limits: Maximum upto Rs. 500,000/. (Clean)
Maximum upto Rs. 1 Million. (Secured)
Tenor: Maximum upto 5 Years

Repayment: Monthly Installments

Markup Rates: Competitive


Servicing: Available at all Askari Bank branches
Askari Bank ance
Available
Transfer Facility:

Eligibility to Apply:

Age: Between 21 to 65 years.


Income: Minimum gross monthly income of Rs.
10,000/- only.
Financing Maximum upto Rs. 500,000/. (Clean)
Limits:
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Employment: a) Salaried: Minimum length of
confirmed service with
present employer is 6
months with a total length
of 1 year service.
b) SelfMinimum 1 year in
Employed: business.
Charges/Fees: As per current schedule of charges.

When you are working towards your financial goals, how you borrow
can be just as important as how you invest. The right borrowing options
can improve your savings, your cash flow and your ability to take
advantage of personal or business opportunities.

So, choose the right options and call us now to enquire about your
entitlement amount and exclusive service. At Askari bank we make
every effort to serve our customers with care.

Not restricted to new financing, under Personal Finance scheme, we


offer extended facilities, which are:

Back to Original:

Under this scheme borrower can avail extended amount of finance upto
the utilized allocated amount, if his/her repayments are regular.

Askari Bank ance Transfer Facility:

It gives the customer the opportunity to pay off his/her outstanding


dues on their credit cards or other loans at a rate of interest much
lower than what one pays on them. That not only frees up their credit
limit, but cost of servicing the debt is greatly reduced.
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Computer Loans:
This scheme was launched to promote the I.T. technology in the
country. In this regard, we have signed MOU’s with Multinational
companies and large local corporates including schools & colleges.

Dream Life (Financing for Consumer Durables):

We are the financial market player in delivering quality service to


customers with highly professional standards. We have joined hands
with various Electronic Companies for sale, of the domestic appliances
against consumer financing. Under this scheme, Askari Bank is
financing products of these companies, which would benefit those
people who can only afford to buy home appliances on installments due
to limited resources. In addition to this, we have also signed
agreements with other top manufacturers of automobiles for financing
of motorcycles to the general public at most competitive rates.

We have established relationship with almost all top manufacturers and


dealers of:
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Mortgage Finance

Askari "Mortgage Finance" offers the convenience of owning a house of


choice, while living in it at its rental value. The installment plan has
carefully designed to suit both the budget & accommodation
requirements. It has been designed for
enhancing financing facility initially for
employees of corporate companies for purchase/
construction/ renovation of house.

Ever since the inception of life, shelter has been rated among the
primary 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 you plan to
build a house, tailor made to your requirements or buy a constructed
house, Askari mortgage finance enables you to pursue your goal
without any problems

Product Featuring:

Borrower: Resident Pakistani Nationals.


Financing Limits: Maximum upto Rs. 30 Million.
Tenor: Maximum upto 20 years.
Repayment: Monthly Installments.
Prime Security: Mortgage of property.
Markup Rates: Competitive
Available at all Askari Bank
Servicing:
Branches
Askari Bank ance Transfer
Available
Facility:
Askari Bank ance Transfer
Available.
Facility:

Eligibility to Apply:
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askari bank
Age: Between 21 to 65 years.
Income: a) Salaried: Minimum gross monthly
income of Rs.20,000/- only
and a permanent employee
with atleast 2 years of
service including present
employer.
b) Self Employed: Minimum length of 1 years
in business.
Charges/Fee As per current schedule of charges.
s:

Business Finance

In pursuance of the National objectives to revive the economy of the


country, ACBL is providing loans to small and medium size business
enterprises under Askari Bank's Business Finance Scheme. Our goal is
to offer a loan, which enables business community to receive the
financing required by them based on their cash
flows. Our valued customers can enjoy the
convenience of getting financing on attractive
terms with the minimum processing turnaround
time.

You always wanted to put in that extra money into your business, which
makes it grow... and grow!. Now you can stop worrying about your daily
cash requirements, and start enjoying our unique Askari Business
Finance facility.

Available upto 60% of the assessed market value of your residential


property, through equitable/token mortgage.

Product Featuring:

Borrower: Resident Pakistani Nationals.


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Facility: Running Finance/Term Finance.
Financing Maximum upto Rs.1.0 Million
Limits: Maximum upto Rs.50.0 Million
Primary Residential & Commercial / Built up Properly &
Security: Land.
Mode ofRunning Finance: One year line of credit
Financing: (renewable).
Repayment: Running Finance: Monthly debt servicing on the
outstanding Askari Bank ance.
Markup Competitve.
Rates:
Servicing: Available at all Askari Bank Branches.
Askari BankAvailable
ance
Transfer
Facility:

Eligibility to Apply:

Age: 21 to 65 Years.
Borrowers: Resident Pakistani Nationals.
Business Requirements: Maximum upto Rs. 500,000/.
(Clean)
Employment: Minimum one year's business or
professional experience in the
present business
Charge/Fees: As per current Schedule of
charges

Enjoy the convenience of most attractive financing with minimum loan


approval turnaround time. Don't wait act now, to enhance your financial
resources

Smart Cash

This personal line of credit would be set up with a


specified credit limit upto Rs. 500,000/-
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askari bank

Product Featuring:

Borrower: Resident Pakistani Nationals


Facility: Personal Line of Credit.
Maximum upto Rs. 500,000/-(Clean)
Financing Limits:
Maximum upto Rs. 1 Million (Secured)
Tenor: One year (renewable).
Monthly debt servicing on the
Repayment:
outstanding Askari Bank ance.
Markup Rates: Competitive.
Servicing: Available at all Askari Bank Branches
Askari Bank ance
Transfer Available.
Facility:

Eligibility to Apply:

Age: Between 21 to 65 Years.


Income: Minimum gross monthly income of Rs. 25,000/-
only.
Employment: a) Salaried: Minimum length of confirmed
service with present employer is six months
with a total length of one year service. b) Self
Employed: Minimum 1 year in business.
(against security).
Charges/Fees: As per current schedule of charges.

Auto Financing

Yet another of our products, Askar offers the most convenient and
affordable vehicle- financing scheme, which provides our valuable
customers an opportunity to own a brand new vehicle of their choice.
With minimum down payment, lowest insurance
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rates and widest range of available car makes and models, Askcar
offers the best value to our esteemed customers.

Askari Bank offers you the most convenient and affordable vehicle
financing scheme to help you own your favorite brand new car.

Product Features:

Borrower: Resident Pakistani Nationals


Facility: TermFinancing
Financing Limits: Rs: 100,000/- to Rs: 3.0 Million
Repayment: Monthly Installments
Markup Rates: Competitive
Askari Bank loon
Available
Payment:
Salaried: Rs: 10,000/-,
Minimum Income: Self Employed Businessman: Rs:
25,000/-
As Per current Schedule of
Charge / Fees:
Charges
Auto Insurance: Mandatory
Financing Tenor Up to 7 years

ASKARI CARD

ASKCARD means freedom, comfort, convenience and security, so that


you can have retail transactions with complete peace of mind.
ASKCARD is your new shopping companion which enhances your
quality of life by letting you do shopping, dine at restaurants, pay your
utility bills, transfer funds, withdraw and deposit cash through ATM
anywhere, anytime.

Travelers Cheques

The range of our products and value added services enhances with
introduction of Rupee Travelers Cheques (RTCs) launched in March
2002. In spite of our constraint on issuing higher denomination of RTCs
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against restrictions imposed by the Central Bank of Pakistan we have
been striving to attain our shares with sizeable portfolio.

Askari Commercial Bank Limited has always remained at forefront in


introducing innovative and unique products in banking sector. Our
financial instruments provide greater financial freedom and security in
an unmatched way to our valued customers.

Askari Bank offers you its "Rupee Traveler Cheques" eliminating all
financial risks while traveling. So avoid risk of carrying cash through
Askari Bank's Rupee Traveler Cheques.

Your Best Traveling Companion.

Why Askari Bank's Traveler Cheques?

1. Free Issuance.
2. Free Encashment.
3. Plus commission for the Customer at the time of encashment if
retained for a specific period.
4. Nationwide acceptability.
5. Facility of encashment in cash to the purchaser.
6. Facility of encashment through clearing.
7. No purchasing limit.
8. Valid until encashed.
9. Easily Transferable.
10. Account relationship not mandatory.
11. Fastest refund procedure in case of loss/theft.
12. Safe & Secure due to foreign printing with multiple security
features.
13. Available in Rs. 10,000 Denomination at all branches of
Askari Bank.
14. No withholding tax on sale or encashment Subject to change as
per Govt. rules.
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Value Plus Deposits

The first liability product launched by this unit is showing a remarkable


acceptability in the market. The growth of this product is witnessed by
its share, which has presently reached at Rs. 1,079 Million even after
lowering down the profit rates due to sufficient liquidity in the market.

Profit / Markup Rates on Retail Products

Rates of Profit Paid to Value Plus A/C Holders & on ABIC

Particulars Profit Rates


Value Plus Saving Deposits
Rs. 10,000/- to Rs. 24,999/- 2.50%
Rs. 25,000/- & above 3%
Value Plus Time Deposits
Three months 5%
Six Months 5.50%
One Year 6%
Investment Certificates
First Month 4%
Second Month 4.50%
Third Month 5%

Commission being paid to customers on retention of RTC for a period of


One Month, @ 0.1% of face value of RTC.

Lending Product Rates

Particulars Markup Rates

Personal Finance
Upto 3 Years 18%
Upto 5 Years 22%
Smart Cash
1 Year (Renewable) 22%
Business Finance
1 Year 1 Year Kibor + 3% to be
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reviewed on yearly basis

Mortgage Finance
20 years maximum 1 Year Kibor + 3% to be
reviewed on yearly basis.
Auto Financing 13% to 15%

Islamic Banking Services,

Islamic Banking was launched under the brand 'Askari Islamic Banking',
by opening 6 dedicated Islamic Banking branches in major cities of the
country. Further expansion is planned with improved capabilities for
offering products conforming to the Shariah principles.

Askari Islamic Banking opens the doors for Halal banking solutions. Our
objective is to put in place an efficient banking system supportive to
economic justice and welfare of society in line with Shariah standards.

A comprehensive range of Islamic Banking products and services is


being offered, in order to meet customer's demand of Shariah
Compliant Banking, in the following areas:

• Islamic Corporate Banking


• Islamic Investment Banking
• Islamic Trade Finance
• Islamic General Banking
• Islamic Consumer Banking
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Islamic Banking products have been approved by the Bank's Shariah
Advisor. As per Shariah requirements, funds and products of Islamic
Banking are managed separately from the Conventional Banking side.
All funds obtained, invested and shared in Halal modes & investments,
under supervision of the Shariah Advisor.

Profit Rates for the Month of December - 2009

Local Currency

Account Category Profit Rate


Ahsan 10,000-99,999 3.04%
Ahsan 100,000-999,999 4.00%
Ahsan 1,000,000-9,999,999 5.09%
Ahsan 10,000,000-49,999,999 6.36%
Ahsan 50,000,000-99,999,999 9.20%
Ahsan Masrafi 100,000,000 & Above 8.35%
Ahsan Masrafi COI 1 Month 8.95%
AHCAAM 1 Month (100M & above) 10.20%
AIIC- 3 Months ( Profit at maturity) 8.40%
AIIC- 6 Months ( Profit at maturity) 8.50%
AIIC - 1 Year (Profit on monthly basis) 8.15%
AIIC - 1 Year maturity (Profit at Maturity) 9.50%
AIIC - 3 Years monthly (Profit on monthly basis) 8.40%
AIIC - 3 Years (Profit on quarterly basis) 8.65%
AIIC - 5 Years monthly (Profit on monthly basis) 8.91%

AIIC - 5 Years quarterly (Profit on quarterly basis) 9.16%

Foreign Currency
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USD Ahsan 3,000-999,999,999 1.59%

Note: Rates are declared on a monthly basis


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ASKARI BANK LIMITED

ISLAMIC BANKING SERVICES DIVISION

Declared Weight ages Date: 31.12.2009

The following will be the declared weight ages, for the Month of
January, 2010.

PKR Accounts:

Account Profit Distribution Period/ Tier Weight


Category group(s) age
Assigned
AHSAN Account 10,000 to 99,999 0.50
AHSAN Account 100,000 to 999,999 0.75
AHSAN Account 1,000,000 to 9,999,999 1.00
AHSAN Account 10,000,000 to 49,999,999 1.25
AHSAN Account 50,000,000 to 99,999,999 1.40
AHSAN Account 100,000,000 & Above 1.75
AHSAN MASRAFI 10,000,000 to 99,999,999 1.00
AHSAN MASRAFI 100,000,000 & Above 1.40
AHSAN MASRAFI 10,000,000 and above 1.00
COI – 01 Week
Maturity
AHSAN MASRAFI 10,000,000 and above 1.25
COI – 02 Weeks
Maturity
AHSAN MASRAFI 10,000,000 and above 1.40
COI – 01 Month
Maturity
AHSAN MASRAFI 10,000,000 and above 1.60
COI – 03
Months Monthly
AHSAN MASRAFI 10,000,000 and above 1.75
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COI – 06
Months Monthly
AHCAMM-01 50,000 to 9,999,999 1.30
Month
AHCAMM-01 10,000,000 to 49,999,999 1.50
Month
AHCAMM-01 50,000,000 to 99,999,999 1.60
Month
AHCAMM-01 100,000,000 & above 2.00
Month
AIIC- 3 Months 3 Months 1.50
AIIC- 6 Months 6 Months 1.55
AIIC- 1 Year Monthly 1.60
AIIC- 1 Year Quarterly 1.65
AIIC- 1 Year Maturity 1.70
AIIC- 3 Years Monthly 1.65
AIIC- 3 Years Quarterly 1.70
AIIC- 3 Years Maturity 2.10
AIIC- 4 Years Monthly 1.70
AIIC- 4 Years Quarterly 1.75
AIIC- 4 Years Maturity 2.15
AIIC- 5 Years Monthly 1.75
AIIC- 5 Years Quarterly 1.80
AIIC- 5 Years Maturity 2.20
AKIDA-3 Months Maturity 1.70
AKIDA- 6 Months Maturity 1.75
AKIDA- 1 Year Maturity 1.80
AKIDA- 2 Years Maturity 2.10
AITQAD- 3 Years Six monthly 1.85
AITQAD - 3Years Maturity 2.15
AITQAD -5Years Six Monthly 1.90
AITQAD - 5Years Maturity 2.25
AITQAD- 7 Years Six Monthly 2.00
AITQAD- 7Years Maturity 2.40
HO Mudarabah 0.50
Account
HO Draw Down 2.00
facility on
Mudarabah
Account
Equity/ Bank 1.00
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Profit sharing ratio in respect of special pools will be as per agreement
between the Bank and Depositor (Rab-ul-Maal).

PROFIT SHARING RATIO FOR GENERAL POOL


Askari Bank Ltd-Islamic Banking 50%
Depositors 50%
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Agriculture Finance Solutions

The role of agriculture in Pakistan


economy is of pivotal nature. Due to
diverse geographical and climatic
conditions the country has tremendous
potential for growth and development in
agriculture. However, adequate and
timely financial assistance to the farmers
will improve production potential of agriculture sector in the country.
The modern concept of agricultural credit envisages establishment of
an efficient institutional credit system to serve as a package of credit,
supplies and knowledge for the overall strength of the farmers who at
present suffer from low productivity and financial insecurity. A
successful credit evaluation system, therefore, should have the basic
ingredients to provide adequate amount at the right time and in the
right form to help farmers in making a productive use of loan funds.

ASKARI KISSAN AGRICULTURE FINANCE PROGRAM

The Askari Kissan Agri Finance Program (AKAFP) has been designed
to meet ON FARM / OFF FARM credit requirements of farmers on the
most convenient, flexible, easy terms and conditions. The program
features:

• A broad array of credit lines designed to meet farming


requirements.
• Repay and borrow at your convenience on revolving credit basis
at lowest mark-up rates renewal able after three years.
• Convenient repayment terms based on cash flow abilities.
• Availability of leased Tractors / Transport without Land /
Collateral.
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• No Hidden Cost.
• Availability of interest free package for inputs and tractors etc.
• No Pre-adjustment penalties.
• Earn prompt payment Bonuses and reduce financial costs.
• Insurance cover of leased assets, animals, crops and life
assurance of borrowers.

AGRICULTURE FINANCE PROGRAM


• Kissan Ever Green Finance
• Kissan Tractor Finance
• Kissan Aabpashi Finance
• Kissan Livestock Development Finance
• Kissan Farm Mechanization Finance
• Kissan Transport Finance

Kissan Ever Green Finance

Askari Bank has launched this program with the sole motive to provide
dignity, prosperity and freedom to the tiller of the land. The program is
designed to help small, medium and large farmers in meeting their
short-term input requirements against one time sanction and
automatically renewable upto 3 years subject to
its stipulated utilization/periodical
adjustment. The credit line is sanctioned in
the light of available cash flows and input
requirements i.e. Seeds, Fertilizer &
Pesticides etc.

Salient Features of the Program are given as:

• Farmer open a profit earning "Askari Ever Green Account" with


the branch. A special cheque book is issued to the farmer.
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• Revolving credit limit as "Ever Green Agri Finance" is available to
the farmer against security i.e mortgaged charge on agri land
through Zari Pass Book.
• Hassle free, automatic renewal upon adjustment of entire
principal amount with mark-up once in a year. rmers both ways. If
the account is in credit, it earns profit, otherwise it provides is
eds.
• The mark-up is charged for the actual
days the finance is utilized.
• Profit on credit Askari Bank ances will be
paid on half yearly basis as declared by
the bank on PLS savings accounts.

Salient Features of the Program are:

ed water resources.

Salient Features of the Program are:

• To facilitate the farmer, to overcome the


scarcity of water.
• To develop mechanical water resources,
sprinkler and drip system etc.
• To avoid traditional / inefficient modes of irrigation and waste of
available water.
• To manage natural / available resources through water

KISSAN LIVE STOCK DEVELOPMENT FINANCE

In order to supplement the income of the farmer, Askari Bank has


launched a program enabling the farmer to purchase Milch Animals,
Goats, Sheep, Poultry and Fisheries without incurring extra expenditure
because of availablility at his farm. He will be able to get milk, meat
and eggs etc., which normally do not form part of his diet. This program
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has the added advantage that besides fulfilling his own family’s
consumption needs he will be able to market the surplus and earn
additional income. This will further improve their cash flows to repay
their other Loans / Revolving Credit on due date.

Salient Features of the Program are:

• The program will provide regular day to day income to the farmer
to meet his own consumption and surplus to be marketed.
• This will revive / accelerate and supplement the income
generating capacity.
• It will enhance the repayment capacity of the farmer.

KISSAN FARM MECHANIZATION FINANCE

Beside Power at the farm i.e. Tractor, the benefits / advantages of


power are maximized with the use of Mechanical Support i.e. modern
and improved equipments which essentially complement one another
due to their cost effectiveness and time efficiency. Askari Bank has
launched an Askari Kissan Farm
Mechanization Finance for the assistance of the
small farmers and provide finance for farm
equipment, trailer, thresher, drills &
rotavators etc.
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Salient Features of the Program are:

• Under this program the farmer will get benefit of use of modern
agricultural tools, implements and equipments which are cost and
time effective.
• Improves per acre yield of agri crops and quality of agriculture
produce to get good price in the market.
• Helps to match / compete with international standards for
exportable agriculture produce.

KISSAN FARM TRANSPORT FINANCE

A grave handicap that afflicts our farmers is their inability, due to lack
of proper facilities, to take their produce to the market through efficient
means of transportation. This adversely affects the freshness, quality of
the product and denies them the desirable Price-Fetching opportunity.
Conversely, they lack mobility to acquire much needed inputs essential
for their farming needs. One can safely conclude that if provided with
appropriate and speedy transport, the farmer can benefit by enhancing
his selling ability and thus increase his income / cash flow. it is
pertinent to mention that a number of Banks, Leasing Companies and
Private Agencies have geared their marketing efforts to concentrate on
and have mainly captured the urban markets. There is no support
provided to cater to the transport needs of deserving rural farmers
community. Askari Bank true to its commitment, has taken the lead to
launch Askari Kissan Farm Transport Finance

Salient Features of the Program are:

• To increase mobility and access of the


farmer to the markets.
• To lower the burden / cost of transportation
against hired transport.
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• To create awareness of market movements in order to obtain
maximum price of their produce.
• This will also supplement the income of the farmer which will
ultimately enhance the repayment capacity of the borrower.
• Additional income can be generated if used for hired services to
the fellow farmers.

Corporate & Investment Banking Group (CIBG)

As Askari Bank, we understand the unique business requirements of


our corporate and institutional clients, and accordingly, strive to meet
their expectations through the provision of a customized, relationship
based banking approach, through the Corporate and Investment
Banking Group (CIBG).
CIBG is a one-window operation that provides all requisite banking
services for our corporate clientele in an efficient, dependable,
consistent, and competitive manner – the objective being to become
your “bank of first call” for all your financial needs.
CIBG is specifically structured to provide dedicated banking services
and products to its corporate customers through two key divisions.

• Corporate Banking Division


• Investment Banking Division

Corporate Banking Division (CBD)

CBD is your long-term business partner that is geared to help you in


meeting your business growth objectives. The business is managed by
a team of professionals who understand your requirements and can
firmly stand by your side.

Dedicated relationship managers for each of our corporate clients


ensure your satisfaction, which is our top priority. Our relationship
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oriented outlook focuses upon providing a complete array of tailored
financing solutions, that are practical and cost effective, some of which
include.

• Working Capital Facilities


• Term Loans
• Structured Trade Finance Facilities
• Letters of Guarantee
• Letters of Credit
• Fund Transfers / Remittances
• Bill Discounting
• Export Financing
• Receivable Discounting

Investment Banking Division

IBD provides value-added, specialist services and products through a


dedicated team of professionals, with world-class skills, to provide
customized solutions to help our clients meet their strategic objectives.
IBD is responsible for seamlessly originating, executing and distributing
all forms of investment banking transactions ranging from syndicated
loans to complex structured and project financing transactions. Some
examples of products offered by IBD include:

• Strategic Advisory
• Privatization Advisory
• M & A Advisory
• Askari Bank ance Sheet Restructuring
• Syndications
• Project Finance
• Structured Finance
• Islamic Finance
• Private Placements of Debt and Equity
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askari bank
• Issuance and distribution of Term Finance Certificates, Sukuk
Bonds, and Commercial Paper
• Underwritings
• Capital Market Hybrid Products
• International Division

International Division strives to place at the disposal of our branch


network, efficient correspondent banking arrangements on gloAskari
Bank basis, thereby catering the needs of our client diaspora. In short,
this is made possible through a variety of arrangements with various
banks which, amongst other benefits, ensures placement of suitable
Credit lines at our disposal by our counter-party banks to facilitate
Foreign Trade and Treasury related activities.

Today International Division boasts of multi-faceted correspondent


banking relationships with over 200 Banks in 77 countries around the
world thereby improving the capacity of our branches in serving their
clients.

Alongside, International Division is entrusted to arrange


evaluation/approval of exposure limits favoring various local/overseas
banks and Non-banking Financial Institutions with whom our Treasury
and branches deal on day-to-day basis. Within the context comes the
Country exposure, which is managed and monitored at this division,
whereas our liaison with State Bank of Pakistan, in respect of Foreign
Trade related issues, helps us to provide timely directions and efficient
advisory to our branch network.

Optimum monitoring of business reciprocity with banks compliments our


efforts to manage the business flows and ensure greater profitability
and Askari Bank anced distribution of business amongst our
correspondents.

In addition and as a part of the ongoing exercise of Know Your


Customer (KYC) compliance with regard to our correspondents,
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International Division carries out regular Due Diligence exercises to
ensure that our bank deals only with financial institutions that are able
to meet the prescribed standards and criteria.

Standard settlement instructions for commercial payments through our


major correspondents are appended below:

Standard Settlement Instructions for commercial payments


Curr Bank Swift/BIC Account No
ACU American Express Bank Ltd , AEIB IN DX MAS 510280058
Chennai
ACU Bank of Ceylon , Colombo BCEY LK LX 125 111-250400- 021
ACU Bank Saderat Iran , Tehran BSIR IR TH 216-1-1-6400
ACU Standard Chartered Bank , Dhaka SCBL BD DX 15-2000938- 01
ACU Standard Chartered Bank , SCBL IN BB 22205306892
Mumbai
ACU State Bank of India , New Delhi SBIN IN BB 172 09046/031044
AED MashreqBank PSC , Dubai City BOML AE AD 0195510502
AUD Commonwealth Bank of CTBA AU 2S 10000 7701 AUD
Australia , Sydney 112601
CAD Royal Bank of Canada , Toronto ROYC CA T2 201-383-7
CHF Credit Suisse , Zürich CRES CH ZZ 919989-53
80A
DKK Danske Bank A/S , Copenhagen DABA DK KK 3996035360
EUR American Express Bank GmbH , AEIB DE FX 424-007396907
Frankfurt am Main
EUR Bayerische Hypo-und HYVE DE MM 69105173
Vereinsbank AG , Munich
EUR Citibank NA , London CITI GB 22 8562059
EUR Commerzbank AG , Frankfurt am COBA DE FF 400-88-07190-00
Main
EUR Dresdner Bank AG , Frankfurt am DRES DE FF 8 127 815 00
Main
GBP Habibsons Bank Limited , London HSBL GB 2L 21003198
GBP Lloyds TSB Bank plc , London LOYD GB 2L 01001583
GBP National Westminster Bank Plc , NWBK GB 2L 04461843
London
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askari bank
GBP Standard Chartered Bank , SCBL GB 2L 01-249443401
London
JPY American Express Bank Ltd , AEIB JP JX 313001707
Tokyo
JPY Askari Bank , Tokyo ASKARI BANK A 21057
JP JT
SAR The National Commercial Bank , NCBK SA JE 555 653 15000 101
Jeddah
SEK Svenska Handelsbanken AB HAND SE SS 99-40-956-709
(publ) , Stockholm
SGD ABN AMRO Bank NV , Singapore ABNA SG SG 10-0044-115
USD American Express Bank Ltd , New AEIB US 33 000718577
York
USD Citibank NA , New York CITI US 33 3607 9507
USD Habib American Bank , New York HANY US 33 2072-9550
USD Habib Bank Limited , New York HABB US 33 0021-507008- 091
USD MashreqBank PSC , New York MSHQ US 33 70119455- 1067
USD Askari Bank , New York ASKARI BANK A 005580-4563
US 33
USD Standard Chartered Bank , New SCBL US 33 3582-025923- 001
York

Askari Debit Card

Askari Bank is committed to provide you innovative and competitive


solutions to your banking needs in a more efficient and personalized
manner. Your Bank enjoys a strategic competitive advantage over all
domestic players by virtue of its leadership, large network and
technological advancement. In line with our tradition of innovation,
Askari Bank takes pride in announcing launch of "Askari Debit Card"-
Askari Bank's Debit Card. Askari Debit Card is tailored to your
shopping needs and is another valuable financial solution reflecting our
commitment to build lasting relationship with you.
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askari bank
Askari Debit Card means freedom, comfort, convenience and security,
so that you can have retail transactions with complete peace of mind.
Askari Debit Card is your new shopping companion which enhances
your quality of life by letting you do shopping, dine at restaurants, pay
your utility bills, transfer funds, withdraw and deposit cash through ATM
anywhere, anytime.

Entity Ratings

Askari Bank has the following Entity Ratings from the Pakistan Credit
Rating Agency Limited (PACRA):

Short Term A1+


Long Term AA+

Definitions By PACRA:

A1+:

Obligations supported by the highest capacity for timely repayment.

AA+:

Very high credit quality. 'AA' ratings denote a very low expectation of
credit risk. they indicate very strong capacity for timely payment of
financial commitments. This capacity is not significantly vulnerable to
foreseeable events.

A plus (+) appended to a


rating, denotes relative
status within major rating
categories.

Core Values:
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askari bank
We understand that our commitment to satisfy customers’ needs must
be fulfilled within a professional and ethical framework. We subscribe
to a culture of high ethical standards, based on the development of
right attitudes. We believe in our 'core values' as the essential and
enduring tenets of our organization - the very small set of guiding
principles that have a profound impact on how everyone in the
organization thinks and acts. They have an intrinsic value for us and
bear significant importance to all our employees. They are the few
extremely powerful guiding principles; the soul of the organization - the
values that guide all our actions.

The intrinsic values, which are the corner stones of our corporate
behavior, are:

• Commitment
• Integrity
• Fairness
• Team-work
• Service

ASKARI BANK BALANCE SHEET


AS AT 31ST DECEMBER
(Rupees in 000)
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askari bank
A sset s 2 00 9 2 00 8
Ca sh a nd A ska ri Ba nk a nce with 1 4, 87 9 ,2 31 1 1, 76 6 ,9 28
t re a su ry B an ks
A ska ri Ba n k a n ce s wit h Ot he r 7 ,3 36 , 83 8 5 ,5 78 , 65 4
B an ks

Le ndi ng to fi na nc e i ns ti tuti ons 8 ,3 92 , 95 0 1 0, 19 7 ,2 42

I n ve st men t s 2 8, 57 1 ,9 69 2 5, 61 8 ,6 20
A d va n ce s 9 9, 17 9 ,4 39 8 5, 99 8 ,6 49
O pe ra t ing f ixed A sse t s 3 ,8 28 , 81 8 3 ,1 98 , 66 6
De fe rre d t ax a sse t s - -

O th e r A sse t s 3 ,8 24 , 10 5 51 2
1 66 ,0 1 3, 35 0 1 45 ,0 9 5, 55 8

Li a bil i ti es
B ills P a ya b le 1 ,8 39 , 07 7 1 ,3 15 , 68 0
1 4, 96 4 ,0 87 1 0, 56 2 ,3 38
Bor r ow i ngs
De po sit s a nd ot he r a cco un t s 1 31 ,8 3 7, 23 0 1 18 ,7 9 4, 15 1
S ub -o rd ina t e lo an s 2 ,9 98 , 50 0 2 ,9 99 , 70 0
L iab ilit ie s a ga in st a sset s sub je ct to 4 ,4 40 3 ,9 71
f ina n ce le a se
De fe rre d t ax lia b ilit ie s 72 6, 49 7 56 4, 38 8

O th e r L ia b ilit ie s 2 ,6 08 , 36 0 2 ,0 47 , 10 0

1 54 ,9 7 8, 19 1 1 36 ,2 8 7, 32 8

Ne t Ass e ts 1 1, 03 5 ,1 59 8 ,8 08 , 23 0
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askari bank

PROFIT AND LOSS ACCOUNT


(Rupees in 000)
2009 20 0 8
M ar k u p / r e t u r n / i n t e r es t e ar n e d 12,602,910 8,782,369
M ar k u p / r e t ur n / i n t e r es t e xp e ns e d 6 , 9 7 6 , 7 04 4,276,130
Ne t m a r k u p / i n t e r e s t i n c o me 5 , 6 2 6 , 2 06 4,506,239

P r ov i s i on a ga i n s t no n - pe r f o r m i n g l o a ns 1 , 1 2 8 , 1 37 63 8 , 5 4 7
an d ad v a nc es - n e t

P r ov i s i on f o r d i m i n u t i o n i n t h e v a l u e o f 37 6 ( 3 6 , 5 5 5)
i nv e s t m e n t s
B a d d e b t s w ri t t e n o f f d i r ec t l y - -
1 , 1 2 8 , 5 13 60 1 , 9 9 2
Ne t m a r k u p / i n t e r e s t i n c o me af t e r
4 , 4 9 7 , 6 93 3,904,247
provisions

NO N M A RK - U P / I N T E R E S T I N C O M E
F ee , c o m m i ss i o n a n d b ro k er a g e i n c o m e 1 , 0 2 7 , 4 91 83 8 , 5 8 8
Di v i d e nd i nc o m e 109,326 51,143
Income from dealing in foreign 584,344 35 6 , 2 1 8
c u rr e n c i es
O t h er i nc o m e 321,700 20 6 , 8 1 9
T ot a l n o n ma r k- u p / i n t e r e s t i n c o me 2 , 1 5 4 , 6 51 1,552,600
6 , 6 5 2 , 3 44 5,456,847
NO N M A RK - U P / I N T E R E S T E X P E N S E S
A d m i n i s t r a t i ve ex p e ns es 3 , 3 1 9 , 0 69 2,604,016
O t h er pr o v is i o n s / w r i t e o f f - -
O t h er ch a r ge s 6,141 1,832
T ot a l n o n - ma r k u p / i n t e r e st ex p e n s e s 3 , 3 2 5 , 2 10 2,605,848
3 , 3 2 7 , 1 34 2,850,999
E x t r ao r d i n ar y / u n u su a l i t e m s - - -- - -- - -- - -- - --
P R O F I T B E F O R E TA X A T I O N 3 , 3 2 7 , 1 34 2,850,999
T ax a t i o n
F or t h e y ea r – C ur r e n t 983,944 62 8 , 7 7 4
F or pr i o r y ea r – C ur r e n t - (1 8 8 , 2 4 7 )
-D e f e rr e d 106,034 19 3 , 7 2 9
1 , 0 8 9 , 9 78 83 4 , 2 5 6
PROFIT AFTER TAXATION 2 , 2 3 7 , 1 56 2,016,743
Inappropriate profit brought forward 1 , 6 1 2 , 3 44 1,533,179
Profit available for appropriation 3 , 8 4 9 , 5 00 3,549,922
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askari bank

2005 2006 2007 2008 2009


RATIOS
Rerurn on average shareholders 20.3 23.9 34.8 27.7 22.6
funds
Return on average assets 1.1 1.4 2.0 1.6 1.4
Profit before tax ratio 25.6 46.7 63.3 32.5 26.6
Gross spread ratio 37.9 66.1 75.1 51.3 44.6
Income / expense ratio 1.3 1.6 1.9 1.4 1.3
Advances to depositsb76 58.1 72.6 83.9 72.4 75.2
Operating fixed assets to average 49.3 43.0 46.9 43.7 38.4
share holders funds
Capital adequate ratio 12.0 9.9 8.5 11.0 10.9
Rate of cash dividend 20.0 20.0 20.0 15.0 10.0
Rate of bonus issue 5.0 10.0 20.0 33.0 50.0
Price earning ratio 4.5 5.3 6.1 9.6 9.3
Dividend yield ratio 7.4 3.9 2.1 1.2 1.0
Dividend payout ratio 31.6 20.7 13.1 11.2 8.9
ASKARI BANK LIMITED.
PERFORMANCE OF FIVE YEAR.

TOTAL LOAN *100


-------------------
TOTAL DEPOSIT

LOAN TO DEPOSIT RATIO (RS. 000) (RS.000)


2009 2008
Total loans 13,378 9,778
Total deposits 131,839 118,795
Ratios 10.14723% 8.23099%
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Analysis shows an increase in loan and also increase in the
deposit but the rate of increase of deposit is greater than that of
loans.

TOTOAL EXTERNAL DEBT


------------------------------------------

TOTAL INTERNAL DEBTS

DEBT EQUITY RATIO (RS.000) (RS.000)


2008 2009
TOTAL EXTERNAL DEBT 11,053 8,813
TOTAL INTERNAL DEBT 1,507 2,004
RATIOS 7.334 4.3977

This ratio depicts the relationship between equity and debt


financing. This current year ratio shows decrease in ratio from
above times. Because lesser is equity financing lesser will be the
soundness of the bank. The reason behind this decrease is a
decrease in external borrowings and increase in internal debt aslso
but rate of increase in internal borrowing is greater. It is necessary
to keep the bank fund up to 40 % as reserve.

PROFIT AFTER TAX X 100


-------------------------------------------
TOTAL NO. OF EQUITY SHARES
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EARNING PER SHARE (RS.000) (RS.000)


2009 2008
PROFIT AFTER TAX 2,249,974 2,021,996
TOTAL NO OF OUTSTANDING 200,4333 2665455
EQUITY SHARE
RATIOS 11.23% 9.42%

This ratio is telling that is in the current year 2009 profit has
increased and that is why earning per share has also increased.
Its mean that the profit will be directly influence on the earaning
per share
This ratio indicates that what is the earning on each share of the
company, which is issued by the company. If there will be more
earning, then shareholders will take interest in the company and
willing to invest in it. Earning per share is high in both years. It
means that shareholders are interested in the company and they
would like to invest more and more in the company.

FPROFIT AFTER TAX


_____________________ * 100

TOTAL ASSETS

Return on assets (RS. 000) (RS. 000)


2009 2008
Profit after tax 2,249,974 2,021,996
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Total assets 166,033 145,099
1.4% 1.6%

This ratio shows that the return is greater in 2008 as compared to


return in assets in the year 2009. Although interest and discount
on loans which is the major source of revenue for bank has
increased in 2009 as compared to last year but cost on deposit and
borrowing which is the major expenditure of bank has increased
more in the current year than the last year.

Return on shareholder fund

PROFIT AFTER TAX


------------------------------------- * 100
SHAREHOLDER FUND
RETURN ON (RS. 000) (RS. 000)
SHAREHOLDER FUND
2009 2008
PROFIT AFTER TAX 2,249,974 2,021,996
SHAREHOLDER FUND 11053230 11698891

RATIOS 20.35 17.28

This ratio is a further explanation of the above ratio. In 2009 profit


after tax has increased and on the other hand its denominator
shareholder fund has decreased due to reserve fund and other
reserves. Therefore both the factors are responsible for this ratio.

Loan to Assets Ratio

TOTAL LOANS
----------------------- * 100
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Total assets

Loan to assets (RS. 000) (RS. 000)


ratios
2009 2008
Total loans 3000 2999
Total assets 166,033 145,099
Ratios 1.80% 2.06%

Total assets of bank increased in 2009 as compared to 2008 and


have % increase in assets , which has resulted in an increase in
loan but to shorter extent. Therefore the net result is decrease in
the loan to assets ratio in 2009.

Equity Ratio:

SHAREHOLDER FUND
------------------------------------ * 100
TOTAL ASSETS

Equity ratio (RS.000) (RS.000)


2009 2008
Shareholder fund 11,053 8813
Total assets 166,033 145,100
Ratios 6.65711% 6.07374%

This ratio explain that participation in the assets by the


shareholder funds is limited by outsiders fund when we take year
under review. (2009) we see ratio has increased in 2009 as
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compared to the year 2008. Reason behind this is that increase in
assets is financed by outsiders fund rather than the fund provided
by the shareholders.

INTEREST INCOME *100


----------------------------------------
TOTAL LOAN

RATE OF RETURN (RS.000) (RS.000)


ON LOAN
2009 2008
Interest income 12,597 8,781
Total loan 2999 3000
Ratios 4.20% 2.927%

Here we are watching very interesting situation as there is


decrease in interest income in 2008 and ratio has also deceased ,
reason is that interest has decreased but amount of loan has
increased resulting in decrease in return on loan.

EQUITY CAPITAL TO ASSETS

Equity capital
------------------------ * 100
TOTAL ASSETS
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EQUITY CAPITAL TO (RS. 000) (RS. 000)


ASSETS
2009 2008
EQUITY CAPITAL 2004 1507
TOTAL ASSETS 166033 145,100
RATIOS 1.20% 1.038%

In the current year banks assets have been increased from Rs.
145100 (billion ) to Rs.166033 (billion). so, this is the reason that
ratio equity to assets has increased in 2009. Denominator total
assets have increased substantially during the year 2009 and
increase in equity capital resulted in increase in this ratio.

A special batch of qualified, energetic, high caliber and qualified young


with good academic records is also hired as Management Trainee
Officers (MTOs) on annual basis with an aim to nurture high-talented lot
of future

 STRENGTHS
 ASKARI BANK one of the largest financial institutions of Pakistan
with eight million of customer base ASKARI BANK holds 24.6%
share of time and demand deposits in the country. Local currency
deposits comprise 67% of bank's total deposits while foreign
currency deposits account for the rest.

 ASKARI BANK has an extensive domestic branch network of 1200


(according to the latest data) branches located all over Pakistan.
The Bank also has a presence in 19 international locations including
the USA, United Kingdom, Europe and the Far East.

 ASKARI BANK 's total assets stood at Pak Rs.370 billion on


December 2004. This included total earning assets of about Pak
Rs.268 billion with gross loan portfolio of Pak Rs.140 billion. The
bank also has an investment portfolio of Pak Rs.91 billion, which
comprises treasury securities, corporate bonds, shares and other
securities.
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 ASKARI BANK cash provision as percentage of non performing
loans equal to 60% this coverage factor for the non performing loans
is the highest amongst the nationalized commercial bank.

 ASKARI BANK is working as right arm government of Pakistan as it


is responsible for all claims of government for recovery as well as
payment. All depositor of ASKARI BANK are in relief that their
money security is guaranteed by government of Pakistan.

 It acts as an agent of the Central Bank wherever the State Bank


does not have its own Branch.

 WEAKNESSES

 ASKARI BANK staff especially at lower considers their work as


burden. They usually waste time in other task a part in performing
their duty. Using government property for there own need. They are
reluctant to accept change brought by latest restructuring efforts.
 The general out look and interior layout of branches are not as
required according to modern banking

 ASKARI BANK bearing up large burden in running those branches,


which are not producing any income but keep on adding expenditure.

 ASKARI BANK is relying on its traditional sources of income it has


not taken benefit from innovation in banking like introducing retail
banking or consumer banking and using any type of scheme to
generate more deposits and producing more advances. Further,
more don’t even continue its credit card due mismanagement and
lack of control.

 ASKARI BANK is far behind in offering modern banking facility like


automated teller machines then other commercial bank in Pakistan
as only eighteen branches in all over country have this facility.

 ASKARI BANK has only forty-four on line branches. While from


remaining branches data gathering is time consuming, and not fool
proof. Quantum of settlement within different branches is pending
because of this updating daily record is becoming very difficult.

 Customers have to fallow long lengthy procedure for opening of


account as well applying for debt. Which discourage most of the
people to invest in ASKARI BANK .

 In ASKARI BANK , most of the time merit not has importance in


hiring of employees. Such practices are black spot on the face of
bank and resulted big losses and fraudulent acts by ASKARI BANK
own employees.
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askari bank

 OPPORTUNITIES
 Reorganizing efforts going on in the ASKARI BANK has open
many opportunities for ASKARI BANK to grow. ASKARI BANK
current management has boarder vision. They have taken steps to
improve customer services, streamline internal procedure and
creating a delectating climate for technology initiative.

 To achieve above mention objective they have created operation


group
 Starting of the retail banking initial working.

 Setting of target for of making at least 300 branches country wide on


line.

 Closing of all those branches, which are burden on ASKARI BANK .

 Management to offer specialized services to major corporate


including advisory and debt syndication introduces the concept of
relationship manager.

 Comprehensive training programs has been develop to up grade the


core banking skills of the existing staff as well as integrate high
quality hiring.

 To improve the motivation of staff a merit-based culture is being


promoted. Through overhauling the manpower recruitment
preservation and performance appraisal system.

These actions taken by current management provide a great


opportunity for ASKARI BANK for making it future prosper and can
make ASKARI BANK not less than any modern commercialize bank
in Pakistan.

 THREATS

Following are the major threats which Askari Bank is facing:

 Major threats ASKARI BANK facing is from its competitor especially


from denationalized commercial bank. In which MCB is on the top of
the list, The Bank provides 24 hour banking convenience with the
largest ATM network in Pakistan covering 15 cities with over 100
ATM locations.

 Retail banking and consumer banking resulting in the products such


as credit cards, housing finance and automobile finance lending to
small individual consumers, and purchases of automobiles, housing,
and consumer goods are generally made on a cash basis. These are
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causing another threat, if not counter will result in significance loss
of customers
 Recently banks and other financial institutions have introduced
innovative schemes to attract deposits, like gift cheque scheme by
MCB. These schemes offer prizes on short and long term fixed
deposits, through lucky draws.

 Now banks are using technology which covers the distance no matter
how far away any one, through a satellite based, on-line real-time
banking system and by offering telephone banking, electronic funds
transfer, E-Banking and other modern facilities.

RECOMMENDATIONS
It was an interested experience to do internship in Askari Bank . The
staff was highly cooperated and due to their help I learned big deal
about modern banking.

I suggest that such an internship program highly integrative for the


students of commerce education so that the students should be
enquired with the knowledge of practice world .I do summarize that it
would be a great help to me in selection of job or future field of work.
Here I am putting some suggestions, which will enable the bank to
compete with other banks more effectively & efficiently.

 It is observed that the employees were overburdened so they


have to stay at branch till late at night. In this way their
efficiency is affected and hiring more employees can reduce their
work.

 The employees should be signed jobs for specific period and than
they should shifted to other department so that they gain
knowledge of other jobs.

 The Askari Bank should properly advertise and Communicate to


public about the services provided by it, so that more customers
will be attracted.

 The bank’s management should give more incentives and pay


scale of officers should be revised & improved.

 System and operations should be more defined and organized.

 IT draw backs should be improved.


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askari bank
 Administration drawbacks should be improved by the strict control
of general issues.

 Some employees waive the bank charges (Statement charges,


cheque book charges etc) that decrease the income of the bank.

 Lockers, ATM, all these facilities should be provided to attract


more customers.

 Expenditures must be control, which are very high.

SUMMARY

Askari Bank is a good Organization in the way that anybody can join it
for his/ her long-term career. Overall working environment is
comfortable. Management of branch cares a lot of its employees and
considers them as the Asset of bank. Behavior of senior executive of
bank is very polite and they are caring about the individual’s career and
their growth.
However management is very demanding about the targets but good
reward at the achievement of assigned targets is awarded.
Employees at Askari Bank are quite efficient. Therefore, they work
more than their working hours and it is all according to their will. It also
shows their loyalty, commitment to organization.
Employees are given the benefits like bonus, gratuity funds, loans,
increments, and medical.
All the customers are entertained individually. Same kind of behavior
and attention is given to all the customers. Getting ideas for
improvement from customer side is a new idea and that is working very
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askari bank
well in Askari Bank . All the customers are asked to fill a suggestion
form and the standards of the bank are improved through them.
Prioritizing its product portfolio in line with its corporate and consumer
needs and wants the bank is committed to develop products that give
more value to its customers in both the sectors.
In bank, all the work is done on computers. All the entries are made in
computer. Askari Bank ance are fed into the computer. This increases
efficiency of the bank.
During my internship training I gathered information regarding how a
successful bank operational aspects decorticated with the practical.
I found my internship training a very rewarding experience. The training
was beneficial because it helpful me to aware a real life working
environment.
So far my learning is concerned; all the employees at branch were quite
cooperative. They helped me to understand the activities of a bank to
possible extent. Their good attitude gave me more confidence to learn
more and to ask if I have any query in my mind. Besides their ever
going activities they never get irritant by my questioning. I had made an
honest efferent to present the working & operation of Bank in simplest
way.
I feel pleasure that I have really gained a lot during 6 weeks & enjoyed
working with experienced cooperative & intelligent staff.

REFERENCES

 MALIK RIZWAN HAIDER


Branch Manager

 FARUKH MEHMOOD
Operations’ Manager

 GHULAM HABIB
CD Incharge